How does SEZ Johor benefit us??

[gaul_ads]

Singapore office will obviously sack those foreigners keeping the management of course. Then The Malaysia office will employ the cheap labours from there. Now Myanmmar at civil war alot of them flee to Malaysia. Their wages very very cheap. They will be happy to stay in Malaysia and work at 1,500 ringgit a month rather than be thrown to become soldiers back at motherland.

Then % of sinkie to FT ratio will rise ... I hope so

 

[popdod]

Sinkies can ghost JB faster , cheaper & better.

 

[charleslee1989]

Actually I know a few F&B bosses want to shift operation to Malaysia. They planning to set up factory there and take advantage of the cheap utilities, rental and employment expenses. They will keep their Singapore office to import from major countries like US, Brazil etc and then send over the raw materials to Malaysia to do processing. After that the finished products can either go worldwide or back to SG for sales.

They no need WRT license meh?

 

[wwenze]

The hope is that manufacturing will move there while corporate remains in SG. But why corporate will remain in SG doesn’t makes sense to me

Easy answer. Look at Bytedance.

 

[Itsthatguy]

How is jb better than SG?

I didn't claim jb is better. But interested to know why you think ang mo would not prefer to stay in jb, but in sg.

 

[mooseolly]

They no need WRT license meh?

SEZ is still very new and still alot of question marks. I will be attending a seminar on it perhaps after that I will learn more to answer your questions.

but can tell you even without SEZ some companies are already doing that many years ago. Example you know the Bobo (competitor to Dodo) fishball maker? They shifted to JB there for quite some time from SG to Malaysia.

 

[gaul_ads]

Easy answer. Look at Bytedance.

Laundry business kym..

Clothes are dirty, need to wash it clean

 

[nasfieldjohn]

jb king want to sell u forest city cheap condos

 

[sPacEmAn_sPiFf]

jobs will be lost. Good luck

 

[Gonjeng]

Why ang mo don't want to stay in JB?

Compare to KL or SG, JB is like ghost town.
Very hard to find and socialized with other Ang Mohs.
Also dont look good on their resume where they travel all over the world just to work at JB.

 

[106gunner]

Only benefit bolehland and it’s ppl

 

[aqf]

Hope no need chop passport can cross faster


Read HWZ Forum Rules!

 

[coyote]

I think good for laundry business.

Nobody monitors ,nobody knows..

Can Wash clothes clean clean to whiter than white

Ask chatgpt?

 

[Water Bottle]

Buy groceries will be easy.
Late night entertainment will have more option.
Food will be affordable.

Tiagong alot of takers are leasing places for F&B.

 

[xiaobao54]

Song song scan qr code no need chop passport / wfh in jiuhu hse earn SGD spend MYR

 

[focus1974]

gemini tell you the answer.
It is correct on what each country benefit.
We have no way out of this liao.
The current govt has already let the wages and land cost spiral out of control in Singapore making it too expensive to house everything in Singapore. Not to mention the SGD appreciation against the USD making the wages and expenses here even more for the MNC than previously forecasted.

(You must remember, we are competing with indonesia,malaysia etc.. Our wage levels and land costs are totally out of whack with the rest of the region. 3x more... but is it 3x productivity/revenue generated? lol). I've opined more often than not, that a lot of jobs (blue or white) don't need rocket scientist, you just need any educated person with a diploma/degree.

So, for singapore to survive (not necessary singaporeans are better off, but at least still got jobs from phv to office) , we need to farm out the labour/land intensive operations to Johor.

and we really need to control the wages here.

I speculate Since Cabinet has been announced, the flood gate will now be opened to flood the market with labour. Companies here will probably use the tarriffs and what nots to start retrenchment exercises, so the new replacement at lower wages can lower the cost.

And I've been saying we need to up our entertainment options here.
The Marina Bay area should be reconfigured into a Las Vegas Strip for the foreigners who work here as well as for tourists. One island can also be converted similarly for partying and adults-only entertainment. All the Mega concerts (you can wear anything here, no restricitions)..

This entertainment scene is something the malaysia government will not be able to compete openly since the country religion will not allow that.

The Johor-Singapore Special Economic Zone (JS-SEZ) is designed to be a win-win for both Singapore and Johor/Malaysia, leveraging their complementary strengths.1 However, the benefits for Singapore, while perhaps less direct in terms of sheer job creation or land use, are strategic and crucial for its continued economic competitiveness.


Here's how the JS-SEZ benefits Singapore, often in conjunction with or even "over" Johor/Malaysia, due to their differing economic structures:
1. Leveraging Singapore's Strengths (Headquarters, R&D, High-Value Services):

• Complementary Operations ("Twinning"): Singaporean companies can establish manufacturing, processing, or logistics operations in Johor to take advantage of lower land, labor, and utility costs.2 Meanwhile, they can maintain their higher-value functions, such as headquarters, research and development (R&D), innovation, financial services, and high-end business services, in Singapore. This "twinning" model allows companies to optimize their cost structures while retaining their core strategic functions in Singapore's stable and sophisticated environment.
  
  
• Expansion Opportunities: For Singapore-based firms that face space or labor constraints in Singapore, the JS-SEZ offers a crucial avenue for expansion without having to look too far afield.3 It allows them to scale up production or logistics without incurring Singapore's higher operating costs.
  
  
• Attracting New Global Investments: The combined proposition of Singapore's advanced ecosystem (financial hub, talent pool, legal stability, connectivity) and Johor's cost-effectiveness can make the JS-SEZ a more attractive destination for new foreign direct investments (FDI) that might otherwise bypass the region.4 Singapore benefits from these new investments, even if a portion of their operations are in Johor, as they often utilize Singapore's services and connectivity.
  
  
• Strengthening Supply Chains: In an era of global supply chain disruptions and protectionism, the JS-SEZ allows firms to build more resilient and diversified supply chains.5 Singaporean firms can have production hubs in Johor, offering a buffer against trade tensions and strengthening regional integration.6

2. Enhancing Connectivity and Ease of Business:

• Smoother Movement of Goods and People:The initiatives aimed at simplifying customs procedures, implementing passport-free QR code clearance, and developing the Rapid Transit System Link (RTS Link) directly benefit Singapore by reducing congestion at the Causeway. This improves the efficiency of trade and the flow of talent, crucial for businesses with cross-border operations.7
  
  
• Integrated Business Ecosystem: By creating a more seamless environment for cross-border business, Singapore's financial, logistics, and professional services sectors can more easily serve companies operating in the JS-SEZ. This expands the market for Singaporean service providers.

3. Maintaining Competitiveness and Relevance:

• Resource Optimization: Singapore is land-scarce and has a tight labor market.8 The JS-SEZ provides access to Johor's abundant land and larger workforce, allowing Singapore to focus its limited resources on high-value activities and remain a global hub.9
  
  
  
• Deepening Economic Ties: The SEZ further entrenches the strong economic partnership between Singapore and Malaysia. This stability and integration are vital for Singapore's long-term prosperity, given its close proximity and interdependencies with Malaysia.
• Regional Hub Reinforcement:Singapore aims to be a regional economic hub.10 By fostering a successful SEZ with its closest neighbor, it reinforces its role as an entry point and facilitator for businesses looking to operate in Southeast Asia.

4. Potential for Shared Growth and Innovation:

• While Johor benefits from direct job creation, infrastructure development, and increased investment, Singapore benefits from the overall growth and prosperity of its immediate hinterland. A more economically vibrant Johor creates a more robust regional economy, which indirectly benefits Singapore.11
  
  
• Collaboration on areas like the digital economy, green economy, and talent development can lead to shared innovation and a stronger regional talent pool, benefiting both sides.12

In essence, Singapore views the JS-SEZ not as a drain, but as an extension of its economic space that allows it to retain and attract high-value industries and talent, while leveraging Johor's comparative advantages for complementary operations. It's about combining the "best of both worlds" to create a more compelling value proposition for businesses looking at the ASEAN region.

 

[cocopuff]

Less Malaysians will cross the causeway to work in SG. I thought people always complain about JHK coming and stealing our jobs? Now govt settle for you lo, make them don't want to come over

 

[jack-320]

Benefits jhk

not sinkies

legs open even wider

 

[zeozoe]

Mean what..
Sinkie jobless?

Also why buy raw materials here cannot buy from msia? Save logistics cost to and fro

All these lower end factories, mostly employ FT on the factory line and salary low. Go over to M'sia have direct access to cheap palm oil, water, energy, workers. Instead of workers crossing everyday and jamming the causeway, they can stay there and work. Company owners can have cheaper costs and earn more profits. "Management" hopefully can keep some jobs in Sg HQ for locals.

Cheaper products, less FT workers, cheaper factory/residential rental in Singapore due to less demand. Hopefully less inflation as a result.

Isn't that what many of you wanted? Shows that no matter what Sg govt does, somebody will be unhappy.

 

[Ethan_]

Can increase Singapore exports.

Wow! Idea siah. Can increase both sides export record and pump up gdp without having to do much. Just go out come in do a merry go round. Can expect both sides to report better then average gdp perhaps when it all started. Thus reason to fatten own pay check again for job well done maybe. Wonder will they consider such goods movement as export or not.