Firms told CNA they had overcome initial concerns over the proposed special economic zone, but competing with Singapore for technical and skilled workers still poses a potential challenge.
JOHOR BAHRU: Singaporean manufacturing firm Racer technology has based some of its factory operations across the Causeway in Malaysia’s Johor Bahru for close to 20 years.
“As a business, we are looking at the long term. During the periods , a lot of foreign businesses in Malaysia diversified their projects, some went back to Singapore and in my case, I turned to Batam,” said Mr Koh. Under the MOU, both sides will work towards increasing the cross-border flow of goods and people and develop a framework that will lead to a full-fledged agreement on the zone.
Malaysian agri-business owner James Tan, who recently relinquished his post as president of SME Association of Southern Johor, told CNA that the steps taken to boost connectivity and alleviate congestion at the land crossings showcases determination from both authorities to work together towards smooth border flow which will be key for the SEZ.
This includes the Iskandar Malaysia project, which was conceptualised in 2006 under the Malaysian government led by then-prime minister Abdullah Ahmad Badawi. Yet, the project fizzled out in a decade, due to unanticipated limited progress and uneven regional economic performance.Johor's special zones including with Singapore could help its economy outpace other Malaysian states: PM Anwar
Mr Tan, who heads data security firm Adera Global, told CNA that the timing of the SEZ proposal is helpful for some manufacturing companies in Singapore who are grappling with rising costs and inflation. Mr Anwar has garnered praise from regional business leaders for facilitating a positive environment which encourages foreign investment.
Mr Su told CNA that based on his company’s research and data, even though the SEZ terms have not yet been announced, Singapore firms are already signalling interest in moving some operations across the Causeway. The Johor government has acknowledged the problem exists. On Jul 17, Mr Onn Hafiz said that the problem needs to be addressed ahead of the launch of the SEZ and to overcome it the government will propose the launch of a talent development council.
The general manager of Racer Technology's operations in Senai, Chloe Hong, has been working with the company for more than 18 years. Mr Koh added that he anticipates the brain drain in Johor to worsen even with the SEZ as better connectivity will encourage more Malaysians to go across the Causeway for perceived better career prospects.
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