The Johor-Singapore Special Economic Zone (JS-SEZ) is drawing significant attention from Japanese investors, including major financial institutions, as interest in the strategically located zone continues to broaden.
According to Iskandar Regional Development Authority (IRDA) chief executive Datuk Noorazam Osman, the Invest Malaysia Facilitation Centre Johor has begun receiving enquiries from Japanese firms in key growth sectors such as the digital economy, technology, and the electrical and electronics industry.
“Some companies have already requested meetings with the Johor Menteri Besar, Datuk Onn Hafiz, which is a clear indicator of serious investor interest,” said Noorazam, speaking on the sidelines of the Nikkei Forum Medini Johor yesterday.
He also noted that leading Japanese banks, including Mizuho Bank and Sumitomo Mitsui Banking Corporation, are actively exploring opportunities to support their clients’ expansion into the JS-SEZ.
While Singaporean, Chinese and South Korean firms continue to form the core base of international interest, Noorazam added that interest from European markets is also on the rise. He believes the two-day forum, themed Driving Asia’s Innovation Hub, offers a strategic platform for foreign investors to assess JS-SEZ’s potential as a regional investment gateway into the ASEAN market.
“With global uncertainties on the rise, investors are increasingly seeking stable and scalable entry points into new markets. JS-SEZ offers precisely that, as a hub linked closely with ASEAN,” he said.
Noorazam also participated in a panel session titled Johor Focus: Building the Future with JS-SEZ, alongside Iskandar Investment Berhad president and chief executive officer, Datuk Idzham Mohd Hashim.
The forum delved into key regional investment themes, including the energy transition, the evolving role of financial institutions in boosting foreign direct investment across ASEAN, and long-term sustainability.
During a panel discussion, Affin Hwang Investment Bank’s head of research, Loong Chee Wei, outlined several concerns raised by prospective investors. These include the importance of robust government policies and the need to address talent shortages.
“The government appears to be responding proactively, such as by mandating that investors provide job opportunities to locals,” he said. “There is also growing demand for modern, integrated industrial parks that offer essential infrastructure, such as workers’ dormitories. These facilities will be critical in attracting new industries.”
Meanwhile, Malaysian Investment Development Authority (MIDA) deputy chief executive officer Sivasuriyamoorthy Sundra Raja indicated that environmental, social and governance (ESG) compliance is likely to become a requirement for both foreign and domestic investors.
“Currently, ESG compliance is not mandatory for local companies. However, that may change. We are reviewing our incentive framework in the third quarter, and ESG will be included in the evaluation scorecard for tax incentives,” he said.
He added that these measures could be applied to strategic industries such as steel manufacturing and that ESG compliance may soon be a prerequisite for obtaining manufacturing licences.
The Nikkei Forum, expected to be officiated today by Prime Minister Datuk Seri Anwar Ibrahim, is set to host approximately 800 participants both on-site and online.
-The Star
