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Misconception to think Johor-Singapore SEZ will provide cheap labour, says SMF

Malaysia’s labour authorities expect incoming businesses to pay wages that are two-thirds of the Republic’s levels, says SMF president Lennon Tan

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Low Youjin

Low Youjin

Published Wed, Aug 27, 2025 · 08:18 PM
    • Singapore Manufacturing Federation president Lennon Tan says that SMF will work with the Singapore government’s newly established Joint Project Office, which serves as a one-stop centre for firms entering the JS-SEZ.
    • Singapore Manufacturing Federation president Lennon Tan says that SMF will work with the Singapore government’s newly established Joint Project Office, which serves as a one-stop centre for firms entering the JS-SEZ. PHOTO: TAY CHU YI, BT

    [SINGAPORE] Manufacturers should not assume that the Johor-Singapore Special Economic Zone (JS-SEZ) will provide access to significantly cheaper labour, said Singapore Manufacturing Federation (SMF) president Lennon Tan.

    Malaysia’s labour authorities expect incoming businesses to pay wages that are about two-thirds of those in Singapore, or roughly RM5,000 (S$1,528), he noted in an interview with The Business Times. 

    “People think Johor offers cheap labour and cheap land,” he pointed out. “Cheap land, yes, compared to Singapore. But cheap labour, no – Malaysia does not welcome labour-intensive industries.” 

    Asia-PacificJohor-Singapore SEZSingapore manufacturingSingapore manpower

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