Global pharma, AI firms potential early movers into Johor-Singapore SEZ, says IRDA director

Companies from China, Denmark, and Australia are among the early potential investors showing interest to set up shop in the Johor-Singapore Special Economic Zone (JS-SEZ).

Some prospective investors have made multiple visits and are exploring setting up integrated operations through the recently established Iskandar Malaysia Facilitation Centre, according to the Iskandar Regional Development Authority (IRDA).

“The ones that come frequently with their delegates, and especially when the parent companies are involved, indicate serious intent,” said Maimunah Jaffar (pictured), the IRDA's director of strategic driver. “These players typically bring an entire ecosystem with them.”

Set up in February, the Iskandar Malaysia Facilitation Centre is a one-stop centre that facilitates and coordinates the end-to-end investment-related process, which includes applications and approvals, investment facilitation, and aftercare and reinvestment within the JS-SEZ.

The entity was also designed to facilitate the JS-SEZ aspirations to achieve 50 major investment projects for the first five years of its establishment. So far this year, the centre has already received over 250 enquiries from potential investors.

Maimunah was speaking during a panel discussion at the 32nd National Real Estate Convention on Thursday.

Some of the investments could be announced as soon as this year, she said, noting that the Danish firms are particularly strong in the medical and pharmaceutical sectors, while Chinese investors are exploring opportunities in artificial intelligence (AI).

The potential investment scope is significant, with some foreign companies eyeing up to 1,000 acres of space within Iskandar Malaysia, and their move could bring in up to 50 supporting firms along with them, forming a cluster-based investment model, Maimunah said.

“We are seeing interest from embassies and business representatives of companies based in Singapore that are looking to relocate or expand into Johor,” she said, adding that “we are looking to provide tailored incentives” for sectors such as pharmaceuticals and medical devices.