Written by Dave Platter, Global PR Director
January’s signing of the agreement to create the Johor-Singapore Special Economic Zone (JS-SEZ) will transform real estate markets in both countries and could add RM20 billion to Malaysia’s economy.
Comments from IQI Co-Founder and Group CEO Kashif Ansari that were covered by Yahoo!, MSN, the Malay Mail, and a dozen media outlets in total said the SEZ would drive new foreign direct investment, manufacturing activity, tourism, and real estate activity in Malaysia’s Johor state.
“That growth will have spillover effects for the rest of Malaysia,” he said.
“In a positive scenario, the more rapid economic growth could add 50 to 90 basis points to the national GDP over the next decade. That would equate to a GDP increase of RM10.8 billion (US$2.4 billion) to RM19.8 billion (US$4.4 billion) per year within a decade.
Real Estate Demand to Grow
Mr. Ansari also said the SEC would attract more businesses and individuals to Johor, increasing demand in the residential, office, industrial, and logistics real estate markets. That demand would also boost the prices of developable land.
“You can expect to see a further reduction in the residential overhang in Johor,” he said. “Homeowners could benefit from value growth. And commercial and industrial real estate markets could benefit from increased demand.
Key Facts About the Special Economic Zone
- JS-SEZ is located in Johor, Malaysia, adjacent to Singapore.
- Approximately 20,000 skilled jobs are expected to be created within the first five years of the SEZ’s operation.
- The SEZ aims to attract high-value investments in sectors like manufacturing, aerospace, tourism, energy, and healthcare.
- Officials aim to attract 50 new projects to the economic zone in the first half-decade.
- Tax incentives and streamlined business approvals should attract multinational companies.
- A proposed high-speed rail connection would enhance connectivity between Johor and Singapore.
- The zone’s design is inspired by the success of Shenzhen in China.
