Six Catalysts Driving the Success of JSSE
Maybank Singapore hosted approximately 160 SME guests and business leaders at the Maybank Johor-Singapore Access conference on July 8, 2024. The event aimed to prepare attendees for doing business and to provide a platform for sharing perspectives on the expected opportunities and economic benefits within the Johor-Singapore Special Economic Zone (JSSEZ).
Alvin Lee, Country CEO of Maybank Singapore, said: “The economies of Singapore and Malaysia are closely connected through trade, investment, tourism, and labour. With the establishment of the Johor-Singapore Special Economic Zone (JSSEZ), we can expect increased cross-border trade and partnerships between the two countries. This will further enhance the economic ecosystems of both countries, foster positive synergies across various sectors, and strengthen economic connectivity and cooperation.”
He added, “Maybank sees itself as powering the continued growth of the Malaysia-Singapore corridor by facilitating cross-border business services, solutions, and digital networks to support our clients’ business needs. Maybank will have a significant role to play as the Malaysia- Singapore corridor grows and as the JSSEZ becomes a closer reality.”
Other speakers and panellists at the event include:
- Dr Chua Hak Bin, Regional Co-Head, Macro Research, Maybank Investment Banking Group
- Mr Samuel Tan, Executive Director, KVG International
- Mr Vinothan Tulisinathanzan, Director, Malaysian Investment Development Authority (MIDA)
- Mr Ang Yuit, President, Association of Small & Medium Enterprises (ASME)
- Mr Kong Chee Min, CEO, Centurion Corporation
- Dr Melvin Heng, Group CEO, Thomson Medical Group
The JSSEZ has strong support from both Malaysia and Singapore, as they are eager for greater economic integration, allowing freer movement of people, goods, and capital, which will create new opportunities aligning with long-term policy goals. Maybank has identified six key catalysts that will benefit the upcoming JSSEZ:
#1 Support from the Malaysian King and both Governments
The MOU for JSSEZ was signed on 11 Jan 2024 by Singapore’s Ministry of Trade and Industry (MTI) and Malaysia’s Ministry of Economy. The area will possibly cover 3,505 sq km, about 3 to 4 times Singapore. Outside of Chinese investors, Singapore is the second largest foreign direct investor (FDI) in Iskandar.
#2 Greater Land Connectivity
The causeway is already the busiest border crossing in the world. The Rapid Transit System (RTS) is scheduled to be completed by the end of 2026. It will integrate Immigration, Customs, and quarantine at each RTS station, making travel between the two countries seamless.
#3 Supply Chain Shifts Amidst US-China Rivalry
While China’s share of US imports has fallen significantly, US imports from ASEAN have grown. FDI into Malaysia has also grown rapidly, with many companies moving their manufacturing facilities from China to Malaysia.
#4 Lower Operating Costs & Competitive Ringgit
Malaysia offers lower operating costs for Singapore companies and enjoys a favourable exchange rate. Salaries and rentals are lower in Iskandar and suitable for factories.
#5 Easing Talent & Labour Shortage
With the RTS, Johor workers would have a shorter daily commute to Singapore.
#6 The Green Transition
Singapore aims to import 30% of its renewal energy mix by 2035. Malaysia has also lifted its renewal energy ban and will export 300 MW to Singapore.
Maybank’s specialist teams are dedicated to offering business advisory services as a one-stop solution for businesses operating across the Malaysia-Singapore borders. Maybank helps businesses navigate the complexities of conducting business across borders and offers competitive financial and payment solutions to meet their cross-border business needs.
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About Maybank Singapore
Maybank is the fourth largest financial institution group in ASEAN by assets. It has been ranked the Best Bank in Asia Pacific and Singapore by The Banker in 2023; and the number one domestic bank in Malaysia for trade finance, according to the Euromoney Trade Finance survey in 2024.
Maybank Singapore is one of the Group’s largest overseas operations and a Qualifying Full Bank in Singapore. As at 31 December 2023, Maybank’s total assets in Singapore were approximately S$80.26 billion. With strategically located banking branches and over 2,000 employees in Singapore, Maybank is well-positioned to provide highly personalised services and locally oriented solutions that will deliver more value to customers.