Johor, Singapore aim for Shenzhen-like economic zone

The Malaysian state of Johor suggested its economic and petrochemical centres as potential locations for a special zone with neighbouring Singapore. This proposal is part of Johor’s ambition to become the Shenzhen of Southeast Asia, according to the Star’s report.

The proposed area will include Iskandar Malaysia and Pengerang, located on the state’s eastern coast, said Johor Menteri Besar Onn Hafiz Ghazi at a state assembly on Sunday.

If given the green light, the Johor-Singapore Special Economic Zone would cover 3,505 square kilometres, almost double the size of China’s Shenzhen. Back in January, both nations agreed to establish the zone, with plans to finalise and sign an agreement by the end of the year, said Onn Hafiz. He also added that official discussions with Singapore about the economic zone are set to commence in June.

Onn Hafiz suggests that the special economic zone might transform Johor into Southeast Asia’s Shenzhen, given the geographical similarities between the two regions. He also proposed that the zone should include 16 economic sectors, such as electrical and electronics, manufacturing, healthcare, and tourism.

Iskandar Malaysia, a 2,217-square-kilometre economic corridor established in 2006, covers the majority of Johor’s strategic infrastructure and real estate projects. This includes the Johor Bahru city centre and Forest City, a struggling US$100 billion megacity project by Country Garden.

Pengerang, on the other hand, houses the Pengerang Integrated Petroleum Complex. This substantial petrochemical facility includes the Pengerang Energy Complex, which is currently being developed by Singapore’s ChemOne Holdings Pte, reported Bangkok Post.

In related news, new Finance Minister Pichai Chunhavajira pledges to boost Thailand’s economy.

Finance Minister Pichai pledged to accelerate initiatives aimed at addressing household debt, stimulating the economy, and raising personal income.

Pichai, who previously held the chairman position at the Stock Exchange of Thailand and served as the prime minister’s advisor, observed a consistent decline in the country’s economic growth rate over the past two decades during his inaugural day at the Finance Ministry.