A special economic zone between Singapore and the Malaysian state of Johor (JS-SEZ) should include Indonesia’s Riau Islands to ramp up the region’s allure to global investors, an apex business chamber and leading accounting firm have said, ahead of the city state’s budget address next month.
As part of its 18 top recommendations, the Singapore Business Federation (SBF), which has more than 32,000 members, and PwC Singapore on Monday said expanding the zone to include the Indonesian islands of Batam, Bintan and Karimum (BBK) would deepen Asean integration and boost competitiveness and growth.
SBF and PwC recommended conducting a study on ways to improve transport links between Singapore and the island grouping, including advancing digital connectivity through seamless data exchange and cross-border research and development grants, streamlining customs and trade regulations, and establishing a centralised governance framework to ensure regional coordination.
“Many of the challenges that businesses tell us are hindering them from taking advantage of the JS-SEZ, such as physical connectivity, digital infrastructure and navigating the regulatory environment, those also extend to the BBK region, so can we consider applying that playbook and growing the Sijori growth triangle,” said Musa Fazal, chief policy and operating officer of SBF during a press conference on Monday.
Singapore’s Prime Minister Lawrence Wong with his Malaysian counterpart Anwar Ibrahim in Putrajaya on January 7, 2025. The JS-SEZ was officially launched last year. Photo: Pool via Reuters
The JS-SEZ was officially launched in January 2025, with Malaysian Prime Minister Anwar Ibrahim and his Singaporean counterpart Lawrence Wong agreeing to develop various industries, including aerospace, medical devices, pharmaceuticals, chemicals and electronics in the 3,571 sq km (1,379 square mile) zone.
