Johor-Singapore SEZ Drives Investment Boom With RTS Link Nearing Completion

The Johor-Singapore Special Economic Zone (JS-SEZ), formally established in January 2025 following a 2024 agreement, has transformed Johor into Malaysia’s investment hotspot. Covering 3,505 sq km—over four times Singapore’s size—the zone encompasses Iskandar Malaysia, Pengerang Integrated Petroleum Complex, and Forest City. It targets 11 key sectors including digital economy, healthcare, financial services, manufacturing, and tourism.

RTS Link

Johor’s GDP grew 6.4% in 2024, outpacing Malaysia’s 5.1% and Singapore’s 4.4%, according to a DBS Bank report. In the first nine months of 2025, Johor attracted RM91.1 billion in approved investments, leading all Malaysian states. Singapore firms invested over $5.5 billion since the pact, including Thomson Medical Group’s 500-bed hospital project with aged care, hotel, and residences.

The upcoming RTS Link, operational by end-2026, will boost cross-border capacity. Initiatives like streamlined immigration address challenges such as rising costs and labour shortages. Forest City’s Special Financial Zone has drawn six family offices with RM400 million in assets via tax incentives. Economists agree the JS-SEZ benefits both economies significantly.

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