Gearing for a stronger and more diverse economy
JOHOR is on the path to transforming itself into the region’s new economic powerhouse within the next decade.
The next 10 years, dubbed the golden decade for Johor, will propel the southernmost state in the peninsula in terms of development, progress and economic growth.
The development taking place in southern Johor, where Iskandar Malaysia is currently being developed into an international metropolis, is the best example of how Johor can achieve its mission and vision.
Kudos to the Federal and Johor governments for their initiatives which led to tremendous development in Iskandar Malaysia over the past decade.
Launched on Nov 4, 2006, Iskandar Malaysia is the country’s first economic growth corridor. Spanning 2,217sq km, it is three times bigger than Singapore and twice the size of Hong Kong.
Since its inception, it had received RM253bil in investments as of Dec 31, 2017, and targets to achieve about RM383bil when the economic corridor reaches maturity in 2025.
While development in Iskandar Malaysia is confined to south Johor, the state government wants to bring development to other areas as well.
Under its development plan, the state authorities need to translate the new key economic sectors in the next 10 years into reality and enhance the existing traditional economic activities along the way.
Johor is fortunate due to its close proximity with Singapore, an international trade and financial centre.
Economically, Johor and Singapore rely closely on each other as thousands of Malaysians cross over to the citystate daily to work.
At the same time, Singaporeans love to shop and dine in Johor Baru due to the strong Singapore dollar. Many of them also own properties here, especially in Iskandar Malaysia.
Interest in Johor from domestic and foreign investors has remained strong despite the uncertainties in global economic growth.
The state government has taken the right step by diversifying its economic portfolio and making valueadded investments in view of the challenges posed by the global economic situation.
Oil and gas, bioeconomy, green technology, halalbased products, hospitality and services and logistics have been identified as the new economic sectors to spearhead Johor’s growth.
According to Johor Tourism, Trade and Consumerism Committee chairman Datuk Tee Siew Kiong, gone are the days when Johor could depend solely on a particular economic sector or activity.
“Diversifying the economy will help us achieve our mission and vision to position and develop Johor as the new regional economic power house,’’ he said.
The state has already established itself as the manufacturing hub in the southern region and now needs to take things to the next level.
Statistics from the Malaysian Investment Development Authority show that Johor attracted a total of RM111bil in investments in the manufacturing sector – the highest in the country – from 2013 to 2017, created about 72,000 job opportunities in the process.
Johor has also received a shot in the arm from the Federal Government with multibillion ringgit mega projects to be implemented in the state within the next five to 10 years.
They are the GemasJohor Baru electrified doubletracking railway system, the High Speed Rail, the Johor BaruSingapore Rapid Transit System Link and the Iskandar Malaysia Bus Rapid Transit system.
Improvements in connectivity and accessibility will attract more visitors, entrepreneurs and investors to Johor.
Barely two months into 2018, Johor received more good news with the reduction in levy and toll charges at the Johor Causeway and the Second Link Crossing in Tanjung Kupang, Gelang Patah.
The move by both the Malaysian and Singaporean governments will create an economic spillover to Johor’s economy, namely in the tourism, retail, hospitality and manufacturing sectors.
On Jan 1, Malaysia abolished toll charges at the Johor Causeway for vehicles using the Eastern Dispersal Link. Singapore did the same with toll charges for vehicles exiting the Woodlands Checkpoint.
Malaysia has also reduced the levy for commercial vehicles using the Second Link to RM50. This is to reduce congestion at the Johor Causeway.
From Feb 13, Malaysia reduced toll charges for vehicles using the Second Link and starting April 1, Singapore will follow suit by reducing charges at the Tuas Checkpoint during peak hours and nonpeak hours.