KUALA LUMPUR (Reuters) -Malaysia is partnering with financial institutions to drive investments and financing support for its special economic zone in the southern state of Johor, the economy minister, Rafizi Ramli, said on Monday.
The banks’ presence is key to galvanise private sector participation by pooling capital and commerce, Ramli told the Johor-Singapore Special Economic Zone dialogue, aimed at fostering strategic ties among governments, banks and investors.
A blueprint for the zone bordering Singapore is to be launched at the end of the year, Ramli said, adding, “It will be a roadmap outlining the long-term vision, strategic aspirations, and investment opportunities.”
Letters of intent were signed with Bank of America, HSBC, Sumitomo Mitsui Banking Corp, CGS International Securities, Maybank and CIMB Bank, he added, while talks were still being held with a European-based bank.
He gave no details of the agreements or financial commitments.
Malaysia and Singapore set up the special economic zone in January, looking to boost investment and ease the movement of goods and people between the neighbours.
Malaysia has said it was targeting 50 projects in the zone within the first five years, along with the addition of 20,000 skilled jobs.
It will establish and manage an infrastructure fund to support companies looking to set up in the zone, while Singapore will establish its own fund to smooth investments and support companies from the city-state operating there.
Johor state chief Onn Hafiz Ghazi, who attended the event, said 27.4 billion ringgit ($6.4 billion) of total approved investment was secured in the first quarter of 2025, with 23 billion ringgit more in the pipeline.
“If these numbers hold, we believe Johor will exceed 50 billion to 60 billion ringgit in total investments in 2025, surpassing last year’s 48.5 billion,” he said.
($1=4.3080 ringgit)
(Reporting by Ashley Tang; Editing by Clarence Fernandez)
