Question

Mr Kwek Hian Chuan Henry: To ask the Minister for Trade and Industry (a) whether an update can be provided on discussions with Malaysia in respect of the Johor-Singapore Special Economic Zone (JS-SEZ); (b) how SMEs can benefit from operating within the JS-SEZ; and (c) how local heartland SMEs can be helped to manage the challenges arising from any potential shift of spending from Singapore to Johor.

Oral Answer (to be attributed to Minister of State for Trade and Industry Alvin Tan)

1. Since the signing of the Memorandum of Understanding on the Johor-Singapore Special Economic Zone (JS-SEZ) in January 2024, Singapore and Malaysia have been in discussions on early initiatives such as passport-free QR code clearance at land checkpoints and a one-stop service centre to facilitate business approvals. The Malaysian government is separately deliberating the area and sectors to be covered by the JS-SEZ. We are working towards an Agreement on the JS-SEZ and will provide an update to the 11th Malaysia-Singapore Leaders’ Retreat later this year.

2. The JS-SEZ aims to facilitate cross-border flow of goods, ease movement of people as well as strengthen the investment eco-system in Johor. Singapore-based companies, including Small and Medium Enterprises (SMEs), can benefit from the increased economic connectivity and the comparative advantages of Singapore and Johor. The Singapore Business Federation is drafting a recommendation paper on how to shape the development of the JS-SEZ, and is seeking views from industry.

3. We will continue to revitalize our heartlands and help our heartland enterprises transform to stay competitive. For example, the Heartland Enterprise Placemaking Grant (HEPG), that we announced in the 2024 Committee of Supply Debates, will help our heartland enterprises lead placemaking efforts in the heartlands to encourage business growth and footfall. The Heartland Enterprise Centre Singapore (HECS) also provides business advisory services and upgrading programmes for our local enterprises.