Johor eyes Shenzhen-style hub with Singapore

MALAYSIA’S Johor state is proposing its economic and petrochemical hubs as the sites for a special zone with Singapore, as it aims to become the “Shenzhen of South-east Asia,” according to a report in The Star. 

The suggested area will comprise Iskandar Malaysia and Pengerang on the east coast of the state, Johor Chief Minister Onn Hafiz Ghazi was cited as saying at the state assembly on Sunday (May 12). If approved, the Johor-Singapore Special Economic Zone would be nearly twice the size of China’s Shenzhen at 3,505 sq km.

Both countries had agreed in January to set up the zone, and Malaysia plans to finalise and sign a pact by the end of the year, according to Onn Hafiz. Official engagements with Singapore on the economic zone are expected to begin in June, he added. 

The special economic zone could turn Johor into South-east Asia’s Shenzhen, the report cited Onn Hafiz as saying, noting the similarities between the geographical makeup of the regions. Johor is also proposing 16 economic sectors as part of the zone, including electrical and electronics, manufacturing, healthcare and tourism, he said. 

Iskandar Malaysia is a 2,217 sq km economic corridor established in 2006 which covers most of Johor’s strategic infrastructure and real estate projects. That includes the Johor Bahru city centre and Country Garden’s struggling US$100 billion megacity Forest City. 

Pengerang is home to the Pengerang Integrated Petroleum Complex, a major petrochemical facility that includes the Pengerang Energy Complex being developed by Singapore’s ChemOne Holdings. BLOOMBERG