KUALA LUMPUR: The Johor-Singapore Special Economic Zone (JS-SEZ) blueprint and master plan have received Cabinet approval and are now awaiting a joint launch by Prime Minister Datuk Seri Anwar Ibrahim and his Singapore counterpart Lawrence Wong, Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir said.
The documents have been finalised, with all policy decisions completed, while implementation has already begun despite the official launch being deferred.
“The document is complete and has received Cabinet approval. The Cabinet’s view is that although it is an operational document, it deserves to be launched at a higher level involving the leaders of both countries. We are also making way for the Johor state election,” Akmal Nasrullah told reporters at the Johor-Singapore Special Economic Zone Executive Forum today.
He indicated that the government is targeting a fourth-quarter launch, subject to the scheduling of a joint ceremony involving Anwar and Wong after the Johor state election.
The blueprint and the master plan were initially expected to be launched in March this year. However, the rollout was postponed after the government said the documents required refinement.
Akmal Nasrullah stressed that the delay has not affected implementation, as the agreed framework is already being executed through various committees and the Invest Malaysia Facilitation Centre-Johor, which continues to focus on attracting and, more importantly, realising investments.
“The implementation has already started. Our focus this year is execution and delivery. It is not just about attracting investments but ensuring the investments pledged are realised on the ground,” he said.
As evidence of progress, Akmal Nasrullah pointed out that 57% of the RM76.98 billion in approved investments recorded last year have already been realised, underscoring the ministry’s shift towards measuring implementation rather than announcements.
He said this execution-focused approach reflects the Ministry of Economy’s priorities for 2026, with greater emphasis on converting approved investments into operational projects.
The minister expressed confidence that the JS-SEZ will outperform its original targets, saying the initiative is on track to achieve its goal of creating 20,000 skilled jobs within three years, significantly ahead of the original five-year target.
“I think we are going to supersede the target. The 20,000 jobs target can easily be achieved in three years. The challenge is ensuring these are quality jobs supported by quality investments,” he said.
The forum is the government’s first dedicated engagement with Italian and wider European investors on the JS-SEZ, reflecting Malaysia’s efforts to diversify its investment sources amid continuing geopolitical and economic uncertainty.
Akmal Nasrullah disclosed that the engagement was initiated following strong interest from Italy, with Italian ambassador to Malaysia Raffaele Langella requesting a dedicated session after indicating that a number of Italian investors were keen to explore opportunities within the economic zone.
“When the ambassador met me about a month ago, he told me he already had a list of investors interested in exploring the opportunities. I gave my personal commitment that we would organise a session quickly because we need to capture this interest and translate it into real investment outcomes,” Akmal Nasrullah said.
He added that the forum would not be a one-off event, with follow-up engagements planned between Malaysian investment agencies, including the Iskandar Regional Development Authority, and potential European investors to convert expressions of interest into actual projects.
While no specific investment commitments were announced, Akmal Nasrullah said, the engagement was intended to place the JS-SEZ firmly on the radar of Italian businesses before agencies begin following up with interested companies individually.
He said Malaysia is seeking to diversify its investment base instead of relying on any single country or region, while broadening the focus beyond data centre investments.
“We also need to look at the positive spillover from earlier investments in data centres, particularly downstream activities, while strengthening the semiconductor ecosystem as Malaysia moves from back-end manufacturing towards higher-value front-end activities,” he added.
Langella said virtually all sectors could benefit from the JS-SEZ, with Italian companies viewing the zone as an opportunity to integrate into broader regional value chains serving Southeast Asia.
He identified oil and gas, logistics, food processing, microelectronics, advanced manufacturing and high-technology training as sectors with strong potential.
Langella noted that Italian semiconductor company STMicroelectronics has long been part of Johor’s industrial landscape, while Italian energy major ENI recently entered into a significant joint venture with Petronas, demonstrating the depth of bilateral industrial cooperation.
The ambassador said Italian companies were focused on pursuing high-quality investments that would enable them to integrate into broader regional industrial and supply chain ecosystems, rather than simply expanding their footprint.
“The special economic zones in Vietnam have been very important for Italian companies, and many are now interested in building on that experience in Malaysia.”
Langella said talent development remains a key priority for Italian companies, noting that many of those already operating in Johor invest significantly in employee training, education and skills development.
He said Anwar’s visit to Rome in July last year marked a turning point in bilateral economic relations. “I see a strong interest in Malaysia today that simply was not there before.”
He added that Italian business delegations are expected to visit the JS-SEZ “very soon” to explore potential investment opportunities, with discussions already underway to arrange site visits and engagements with relevant government agencies and industry stakeholders.
The JS-SEZ is designed to integrate the complementary strengths of Johor and Singapore into a single cross-border investment ecosystem spanning advanced manufacturing, semiconductors, digital technologies, logistics, green energy and other high-value industries.
The initiative aims to facilitate 50 investment projects and create 20,000 skilled jobs within its first five years, with the longer-term objective of reaching 100 projects within a decade.
