Minister of Investment, Trade and Industry, Yang Berhomat Senator Tengku Zafrul

Chief Minister of Johor, Yang Amat Berhomat Dato’ Onn Hafiz Ghazi

Distinguished guests,

Ladies and gentlemen,

 

1. Good morning to all to you. Thank you first for inviting me to join you today at the Joint Business and Investment Forum on the Johor-Singapore Special Economic Zone (JS-SEZ).

 

2. Today’s event takes place against a background of significant uncertainties and volatilities, not just for our respective economies, but also for the world economy and the rules-based economic order on which our businesses and economies depend.

 

a. Tensions between the US and China have escalated sharply, with both countries imposing an escalatory, tit-for-tat series of tariffs that have effectively choked off trade between the two largest economies in the world. This will have significant implications on our businesses, many of whom are embedded deeply within the production and supply chains of both the US and China.

 

  b. We also do not know how negotiations between the US and countries on which it intends to impose ‘reciprocal tariffs’ will turn out – and we cannot rule out that some level of these ‘reciprocal tariffs’ will be imposed on certain countries, which may in turn spark off retaliatory measures by these countries.

 

  c. This series of unilateral actions may also destabilise the existing rules-based, multilateral trading order. If countries choose to trade with one another only on their own preferred terms, we will always be at the losing end and at the mercy of larger economies.

 

  d. But in every crisis, there will be opportunities, just like Menteri Besar mentioned just now, “危机就是转机”.  As businesses seek to reconfigure their production and supply chain arrangements, there will be new opportunities for those who are nimble and fast to adapt to the new landscape.

 

3. Today’s event is therefore both important and timely.

 

  a. Important – because, amidst a sharp rise in protectionism around the world, it demonstrates how like-minded countries can work with each other to overcome challenges facing us and unlock win-win benefits; and

 

  b. Timely – because the JS-SEZ presents an opportunity for businesses to explore how to ‘strengthen [their] supply chains’, so that they can better respond to the volatilities and continue to grow their businesses.

 

4. The JS-SEZ builds on the strong, longstanding economic partnership between Malaysia and Singapore to open a new avenue, a new frontier, of opportunities for businesses. And I am glad to hear the announcements on the two initiatives by Menteri Besar.

 

a. Some businesses in Singapore may choose to expand their capacity in the JS-SEZ.

 

  i. For example, Archisen, a Singapore-based agritech company, whom I just met, together with the Malaysian state-owned Johor Corporation (JCorp) subsidiary, FarmByte, are jointly developing a smart indoor vertical farm in Nusajaya Tech Park that is expected to produce over 300 tonnes of leafy vegetables per annum.

 

  ii. This farm will add to Archisen’s existing capacity of vegetables from its indoor farm in Singapore.

 

  b. Others may choose to develop new capabilities in the JS-SEZ.

 

  i. For example, Agrocorp, a Singapore-based global agri-commodity firm, and Megmilk Snow Brand, one of the leading dairy companies in Japan, are jointly developing a facility in Tanjung Langsat to manufacture protein and starch products from climate friendly crops like pulses.

 

  ii. This facility will enable the production of 6,000 tonnes of cleaner-tasting plant protein annually, and enable the company to further its capabilities downstream in plant protein extraction.

 

  c. Businesses may also choose to twin their presence in both Singapore and Johor, so that they can tap on our complementary strengths.

 

  i. South Korea’s SPC Group is one such example. It has chosen to site its halal manufacturing plant in Johor, while establishing a Regional HQ and innovation centre in Singapore to drive its R&D in product development.

 

  d. We also hope that we can attract other new businesses that are not yet in Singapore or Malaysia to site their new investments in the JS-SEZ.

 

5. We will continue to strengthen the fundamentals of the JS-SEZ, in order to enhance its value proposition.

 

  a. Firstly, to improve the flow of goods and people between Singapore and Johor, by simplifying our clearance processes and customs procedures;

 

b. Second, to strengthen the business ecosystem, by streamlining approval processes, investing in talent development, and establishing a single touchpoint for businesses.

 

  i. In particular, on Singapore’s end, MTI, together with Enterprise Singapore and EDB have established a joint project office to support Singapore-based companies keen to expand and do more in the JS-SEZ. This will complement the Invest Malaysia Facilitation Centre- Johor (IMFC-J) established by Malaysia.

 

  c. Thirdly, to strengthen our network of economic partnerships with like-minded nations and economic organisations, such as within ASEAN and within CPTPP, as well as between ASEAN and CPTPP with other partners such as the GCC and EU, so that we can open up new markets and supply chain flows for our businesses.

 

Conclusion

 

6. At a time of significant volatility, uncertainty and anxiety in the global economy, it is even more important that we team up with like-minded countries; double down on better connectivity and ease of doing business; and join hands with businesses and investors.

 

7. This way, both Singapore and Malaysia can further bridge our economies through the JS-SEZ and strengthen our supply chains, so that we can be more dynamic and resilient together, and continue to create good jobs for people of both countries and both regions across the Causeway.

 

8. Thank you very much.