A base for Singapore enterprises expanding across the Causeway
Summarized and contextualized by DistantNews.
At a glance
- Malaysia's Johor state attracted a record RM110 billion in investments in 2025, becoming a key hub for regional operations, with Singapore as its top foreign investor.
- The Johor-Singapore Special Economic Zone (JS-SEZ) is increasingly attractive due to tax incentives and facilitation programs, leveraging strong economic ties between the regions.
- EcoWorld Industrial Platform offers integrated support, including industrial facilities and digital infrastructure, to companies expanding into Malaysia and the wider ASEAN market, focusing on manufacturing, logistics, and AI.
Malaysia's Johor state has emerged as a prime destination for businesses scaling their regional operations, attracting a record RM110 billion in approved investments in 2025. Singapore led foreign investment into Malaysia, contributing RM58.3 billion, with Johor alone accounting for RM110 billion of the national total.
Singapore brings research and innovation expertise, global networks and financial exposure, while Malaysia offers competitive land costs, industrial infrastructure and a skilled workforce.
The Johor-Singapore Special Economic Zone (JS-SEZ) is proving particularly attractive, bolstered by tax incentives, grants, and facilitation programs. These initiatives capitalize on the robust economic links between Singapore and Malaysia. "Singapore brings research and innovation expertise, global networks and financial exposure, while Malaysia offers competitive land costs, industrial infrastructure and a skilled workforce," explained Phan Yan Chan, chief development officer at Eco South and Eco Business Park, EcoWorld.
To meet the growing demand, EcoWorld launched the EcoWorld Industrial Platform in June. This initiative provides comprehensive support for companies expanding into Malaysia and the broader ASEAN region. It integrates industrial parks, advanced manufacturing facilities, smart logistics, business support infrastructure, and a high-tech data center ecosystem. Developments are strategically located in high-growth corridors, including the JS-SEZ, Klang Valley, and Malaysia Vision Valley 2.0.
Many global companies are looking to establish a presence in ASEAN, one of the worldโs fastest-growing regions. Malaysia โ particularly Johor โ is strategically positioned to serve as a manufacturing, logistics and distribution hub for this market.
Phan noted that modern businesses require more than just physical space. "With digital transformation, artificial intelligence (AI) and environmental, social and governance requirements changing how businesses operate, they are looking for infrastructure that is digitally ready, scalable and able to evolve alongside their growth," he stated. The EcoWorld Industrial Platform, through its Quantum and Eco Business Park pillars, aims to provide this essential physical and digital infrastructure support for a range of businesses, from startups to SMEs.
With digital transformation, artificial intelligence (AI) and environmental, social and governance requirements changing how businesses operate, they are looking for infrastructure that is digitally ready, scalable and able to evolve alongside their growth.
Originally published by CNA. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.