ISKANDAR PUTERI, Johor: Special border passes for company executives could help ease firms’ manpower and congestion concerns ahead of the proposed Johor-Singapore Special Economic Zone (JSSEZ), said Johor’s chief minister.
These passes will allow senior management officials of firms which are part of the SEZ to travel between Singapore and southern Johor efficiently, said Mr Onn Hafiz Ghazi on Thursday (Aug 15).
“We are trying to accelerate the success of the JSSEZ and (part of that is facilitating) movement of goods and services, mainly the movement of people,” he added.
“We need to have special passes for captains of industries when they travel between Singapore and Johor.”
Mr Onn Hafiz was speaking during an Invest Johor event at Forest City in front of more than 600 delegates, some of whom were company representatives from Singapore. The event was organised by RHB Bank.
He did not provide any details on whether these passes would allow travellers to clear immigration via a special lane or priority clearance.
Over 300,000 travellers, including cargo and goods, cross the Johor-Singapore Causeway daily resulting in congestion during peak hours. (Photo: CNA/Zamzahuri Abas) However, during his speech, Mr Onn Hafiz also said that government officials from both countries would meet at the end of this month in Johor to discuss the SEZ agreement.
His comments came following a report released by the Singapore Business Federation (SBF) which outlined that nine in 10 firms from Singapore view Johor as an attractive investment destination but most of the businesses are anticipating concerns.
These concerns generally related to sourcing skilled and technical workers as well as congestion at the land crossings delaying the movement of people and goods.
The chief minister acknowledged that alleviating congestion and increasing the pool of skilled workers in Johor are part of “drastic changes” the state government is pushing for to maximise the potential of economic cooperation between Malaysia and Singapore.
He also outlined upcoming developments that would improve transportation around and within southern Johor.
This included the widening of the North-South Highway in Johor from four lanes to six by 2025 and a public transport network in Johor Bahru town which will be integrated with the Johor-Singapore RTS Link.
In January, the two countries signed a Memorandum of Understanding (MOU) on the JS-SEZ, which is expected to offer both fiscal and non-fiscal incentives such as tax breaks and easier travel between the two countries.
The MOU also outlined that the SEZ would facilitate passport-free travel between Singapore and Johor which include the use of a QR-code system for immigration clearance and digitised processes for cargo clearance.
Speaking to CNA on the sidelines of the Invest Johor event, RHB Bank group chief executive officer Mohd Rashid Mohamad stressed that policies which ease the movement of people and goods, such as the special border passes are “very key” to the long-term viability of the JS-SEZ, and Johor as an investment destination.
RHB Banking Group, Group Managing Director and Group Chief Executive Officer, Mohd Rashid Mohamad, delivers his speech during the Invest Johor 2024 event at Marina Hotel, Forest City, on Aug 15, 2024. (Photo: CNA/Zamzahuri Abas) “Improving connectivity will complete the supply chain between Singapore, Johor and Malaysia,” he added.
During his speech at the event, Mr Onn Hafiz said that government officials from both Singapore and Malaysia would attend a workshop from Aug 28 to Aug 30 to discuss the details of the SEZ agreement.
He added that the attorney-general chambers from both countries will then meet in September and that the final agreement is expected to be signed and announced in the fourth quarter of 2024, during the Malaysia-Singapore Leaders’ Retreat.
“Even though the agreement will be signed by the end of the year, we are taking actions to ensure we will have a smooth roll-out,” he added.
CNA understands that the leaders’ retreat is slated to be held in Singapore in December 2024.
RHB Bank’s Mr Mohd Rashid told CNA that the developments in which the SEZ proposal was being discussed by both countries was a signal that there is commitment from both to push through the agreement.
“It takes two to tango. Now it’s not just Johor and Malaysia, it’s also Singapore realising that it’s a good time for us to work together,” said Mr Mohd Rashid.
“There is now a lot of room to collaborate, rather than to work in silos. The conversation now is different from what it was three to four years ago,” he added.
Mr Onn Hafiz said in a fireside chat after his speech that the JS SEZ proposal is being discussed at an opportune moment when the “stars are aligned” and that there is political will from both sides to see through the negotiations.
“There is political will that the Johor special economic zone can happen now, maybe it’s because the new Yang Di Pertuan Agong happens to be from Johor. We have the royal backing from the Johor palace for this SEZ (to come to fruition),” he added.