Johor is poised to become Malaysia’s next major economic hub, potentially rivaling the Klang Valley within the next decade.
With the launch of the Johor-Singapore Special Economic Zone (JS-SEZ), the state is set to reshape the nation’s economic landscape.
Economy Minister, Rafizi Ramli revealed that the JS-SEZ could contribute a remarkable US$28 billion annually to Malaysia’s GDP, positioning Johor as a key player in the country’s future growth.
In 2023, Johor’s GDP stood at RM148 billion, compared to Kuala Lumpur’s RM249 billion, but the state is quickly closing the gap.
Rafizi emphasized that Johor’s strategic location and forward-thinking development plans make it a prime candidate to become Malaysia’s next economic engine.
With the signing of the JS-SEZ memorandum in January, over 100 projects are expected to launch in the next decade, driving innovation across sectors such as aerospace, electronics, and medical devices.
Spanning 357,128 hectares, the JS-SEZ covers vital areas like Iskandar Puteri and Forest City, with a focus on emerging industries while also strengthening traditional sectors like the digital economy, manufacturing, and healthcare.
However, Kashif Ansari, Co-Founder and Group CEO of Juwai IQI, stressed that Johor is set to complement, not compete with, the Klang Valley, creating a dynamic and balanced economic future for Malaysia.
“Johor’s success will benefit the Klang Valley, just as growth in the Klang Valley also benefits Johor.”
Kashif Ansari, Co-Founder and Group CEO of Juwai IQI
Kashif further pointed out that Johor Bahru contributed approximately 9.5 per cent of the national GDP in 2023, compared to Kuala Lumpur’s 16 per cent and Selangor’s 25 per cent. Together, these regions will elevate Malaysia’s living standards to new heights.
“The government forecasts the SEZ will add US$26 billion per year to the national economy by 2030. With that kind of growth, in 2030 Johor would be a close match for the economy of Kuala Lumpur as it is today.”
Kashif also added that coming to an agreement with Singapore for a mutually beneficial special economic zone is a significant accomplishment.
Juwai IQI was featured in New Straits Times.
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