Malaysians optimistic about Shenzhen-Style JB-SG Special Economic Zone

SINGAPORE: The Johor-Singapore Special Economic Zone, which Senior Minister Lee Hsien Loong characterized as a “substantial and promising project” when it was first reported on last December, was featured in a lengthy Bloomberg piece on Thursday (Aug 22).

And when Singapore, Malaysia Want to Build Their Own Shenzhen-Style Mega-Hub was shared on Reddit Malaysia, commenters were overwhelmingly positive about it.

“The JS-SEZ will tap into the complementary strengths of both countries to foster economic connectivity by improving cross-border flows of goods, investments, and people,” said then-PM Lee and Malaysian Prime Minister Anwar Ibrahim in a statement issued after the 10th Singapore-Malaysia Leaders’ Retreat, which was held in Singapore on Oct 30, 2023.

The Bloomberg piece pointed out how the SEZ can be advantageous to the economies of both countries, but acknowledged that history and politics could slow down the process.

While a Memorandum of Understanding was already signed in January by Singapore and Malaysia, the finer details are still being worked out. Nevertheless, a number of companies have already opted in, including tech darling Nvidia Corp.

The hope is that SEZ will replicate Shenzhen’s success, bringing in 100,000 jobs to Johor and adding $26 billion to Malaysia’s economy. For Singapore, it would open the door to needed resources, Bloomberg added.

However, the piece pointed out the history of projects between the countries that have faced delays, as well as the political instability in Malaysia, and added that the SEZ is likely to take priority when Mr Ibrahim and Prime Minister Lawrence Wong meet before 2024 ends.

Commenters on the Reddit thread, however, voiced strong approval for the special economic zone.

“This is an excellent development, moving forward,” one wrote, adding that whatever benefits a country and its people should be seen positively and that Malaysia’s former governments wasted too much time and opportunities, rather than advancing the country.

Another predicted that the SEZ would be an “economic powerhouse.”

A Reddit user opined that the upcoming RTS link would be a game changer for both countries, noting the building boom that has already taken off near the station in Johor Bahru.

Users on Hardware Zone, however, were not nearly as optimistic. One joked that there will be a very long wait for the SEZ to come to pass, while another expressed doubt that it will happen at all.

Another pointed out the economic disparity between Singapore and Malaysia, to which a commenter agreed.

“I firmly believe history will condemn this project in the harshest manner,” they wrote. /TISG