JS-SEZ Offers Spillover Potential For SMEs To Tap Wider Markets – Tengku Zafrul

By Anas Abu Hassan

JOHOR BAHRU, April 21 (Bernama) – Small and medium enterprises (SMEs) play a vital role in the growth of the Johor-Singapore Special Economic Zone (JS-SEZ), as they stand to gain significantly from the spillover effects, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

He noted that the JS-SEZ, the first cross-border economic zone of its kind, leverages the comparative advantages of both Malaysia and Singapore — particularly through Johor — and serves as a gateway for companies seeking access to the regional market.

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“We are also focusing on ensuring that as much spillover as possible is achieved and that SMEs benefit from it.

"This is one of the agendas we want to push forward, and we will monitor it closely,” he said during a   panelist session entitled "Fostering Business Expansion, Transforming Talent and Tech" at the JS-SEZ Joint Business and Investment Forum today.

According to Tengku Zafrul, SMEs can integrate into the broader supply chain ecosystem by supporting both multinational and local companies based in Johor, as well as by tapping opportunities arising from the Singapore side through the JS-SEZ.

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He said SMEs can be assured of strong government support as they actively participate in the special economic zone.

“We want to see JS-SEZ growing, but that growth must be inclusive,” he said, adding that the government also want SMEs to access the broader ASEAN market.

Tengku Zafrul also highlighted that one of Malaysia’s key economic priorities as ASEAN chair is to upgrade the ASEAN Trade in Goods Agreement (ATIGA) while encouraging greater participation of SMEs and micro-enterprises.

“JS-SEZ is an area or base where you have access to great logistics to support your exports to the ASEAN markets,” he noted. 

Earlier, Tengku Zafrul also witnessed the exchange of two memoranda of understanding (MoUs) — the first between Tanjung Langsat Port (TLP) and Pertamina Energy Terminal (PET), aimed at achieving an annual trading volume of three million tonnes within the newly established JS-SEZ.

The second MoU was exchanged between Maybank Islamic Bhd, Malayan Banking Bhd (Maybank), and Perbadanan Usahawan Johor Sdn Bhd, with the objective of strengthening the local micro-SME ecosystem in line with the JS-SEZ’s strategic economic focus.

Also present at the forum were Johor Menteri Besar Datuk Onn Hafiz Ghazi and Singapore’s Deputy Prime Minister and Trade and Industry Minister, Gan Kim Yong.

-- BERNAMA