Across the Causeway, Singapore’s manufacturing GDP contracted by 4.3% y-o-y, contributing 18.6% to the nation’s economy, the steepest decline of any sector. While the industry has since rebounded to a growth rate of 4% for 2024, confidence could be further strengthened with the establishment of the JS-SEZ, with the Singapore and Malaysia governments setting a target of attracting 100 projects in 10 years across various sectors.
Five of the nine flagship areas within the Johor Singapore Economic Zone (JS-SEZ), which spans 3,571 sq km of southern Johor, will be dedicated to the manufacturing sector, the largest allocation for any industry. Analysts, including Thilan Wickramasinghe from Maybank Securities, have highlighted the partnership’s “significant potential to drive value creation” for both countries, painting a promising outlook for one of Johor’s key industries.
According to a Jan 7 report by the Malaysian Industrial Development Finance Berhad (MIDF), manufacturing was the second-largest contributor to the state’s GDP as recently as 2023, at 29.8%. Of this, electrical, electronic and optical products made up the lion’s share of the sector, at 10%. Johor was also the third-largest contributor to national GDP, with the state’s 2.8% growth in manufacturing GDP beating out Malaysia’s increase of 0.7% in 2023.
