by AUFA MARDHIAH (from The Malaysian Reserve)
THE Johor-Singapore Special Economic Zone’s (JSSEZ) funding mechanisms highlight the bilateral nature of the collaboration and its unique approach to infrastructure development.
Economy Minister Rafizi Ramli said the agreement between the two countries sealed the commitment that Malaysia and Singapore have to provide funding.
Malaysia will focus on infrastructure development through a dedicated infrastructure fund, while Singapore will design its fund to support the expansion of its companies into the JSSEZ.
Rafizi emphasised the uniqueness of this model at the JSSEZ media briefing on Jan 3.
“Hardly anywhere in the world involves two countries and two jurisdictions. The goal is to combine Singapore and Johor as one economic unit,” he said.
Unlike traditional greenfield projects, where governments heavily invest in infrastructure upfront, the JSSEZ adopts a demand-driven, project-by-project approach.
Rafizi explained that the approach allows investors to identify the most suitable areas for their operations, ensuring infrastructure is only developed where it is needed. It also reduces risks of overcommitment or underutilised infrastructure.
“Instead of doing it piecemeal, we put it aside straight away and draw from that fund to support investments,” he said, describing the approach as “very different from the way it is done now.”
Rafizi further expressed confidence in the model, stating that it provides flexibility for investors while ensuring efficient infrastructure development.
“Investors can choose areas that suit their operations best. This eliminates delays from traditional budget processes and allows infrastructure to grow alongside investments.”
He added that once the agreement was signed on Jan 6, both countries will begin working to finalise the joint blueprint within a year.
“The blueprint will identify more nodes and clusters,” he said, emphasising collaboration with investors to refine plans based on their needs.
JSSEZ will be managed by the Iskandar Regional Development Authority and a joint Malaysia-Singapore committee, ensuring efficient and coordinated planning.
