Johor-Singapore SEZ master plan ‘should not be delayed further’, says chief minister in clash with government

JOHOR BAHRU: Johor’s caretaker chief minister Onn Hafiz Ghazi has criticised the federal government for delays of the launch of the Johor-Singapore Special Economic Zone (JS-SEZ) master plan, arguing that it is needed to sustain the initiative’s momentum.

In response, Economic Minister Akmal Nasir, who oversees the project at the federal level, has maintained that the government remains committed to the project’s success and the delays have not impacted the JS-SEZ as investor numbers have remained strong.

The comments have come amid intense campaigning for the Jul 11 Johor state elections, in which Onn Hafiz is leading Barisan Nasional’s (BN) charge to retain its rule of the state government.

Prime Minister Anwar Ibrahim’s Pakatan Harapan (PH) pact is BN’s main challenger in Johor, even though the two coalitions are allies under the federal unity government.

Akmal, who is also Member of Parliament for Johor Bahru, is a member of Anwar’s party - Parti Keadilan Rakyat - within PH.

In a statement released on Thursday (Jul 2), Onn Hafiz said that the JS-SEZ master plan was originally scheduled to be launched at the end of 2025, but this was later rescheduled for Mar 30, 2026.

“It has now been postponed once again,” he wrote.

“The master plan does not need to wait until the Leaders' Retreat at the end of this year to be launched, as it does not require the approval of the Singapore Government. In fact, the relevant agencies from Singapore, Malaysia, and Johor have already provided their input and feedback,” Onn Hafiz added.

He was referring to the annual Leaders’ Retreat between Anwar and his Singapore counterpart Lawrence Wong.

Onn Hafiz, a Machap state assemblyman, stressed that the matter “should not be delayed any further”.

“It concerns providing certainty for investors, as well as setting out the direction for key sectors, investment zones, incentives, infrastructure, talent development, and coordination among agencies,” he added.

Malaysia and Singapore formally signed an agreement on the JS-SEZ in January 2025 to create the zone that aims to attract 100 projects worth RM100 billion (US$25 billion) within its first decade and create some 100,000 new jobs in high-value economic sectors.

Akmal’s predecessor Rafizi Ramli had said on May 19 last year that the JS-SEZ blueprint would be launched by the end of 2025, local media reported.

The blueprint is a comprehensive roadmap outlining the zone's long-term development strategy, investment prospects and policy direction, he said then, describing it as a one-stop document for potential investors, policymakers and the public.

But Rafizi quit the Cabinet at the end of May 2025 after losing in his party’s internal polls.

In January, Malaysia’s Economy Ministry said that it was targeting a March launch for the JS-SEZ blueprint following a meeting between Akmal and Singapore’s Minister for National Development Chee Hong Tat.

However, Akmal announced on Wednesday at a JS-SEZ forum in Kuala Lumpur that the launch has now been confirmed only for the fourth quarter of this year.

"I think we can further explore the details of the document when the time comes," he said, according to local media.

In his Thursday statement following Onn Hafiz’s comments, Akmal said the launch of the master plan is being carefully coordinated to ensure implementation readiness and policy alignment, as well as strategic cooperation between Malaysia and Singapore.

He denied that the development of the JS-SEZ had been delayed, outlining that although the master plan had not yet been launched, the initiative has recorded approved investments amounting to RM76.98 billion in 2025.

“These figures demonstrate that investor confidence in the JS-SEZ remains strong and that its benefits are being translated into actual projects, rather than remaining merely a blueprint,” Akmal said.

"The federal government has never compromised on the future of Johor," he added.

"The current focus is to ensure the JS-SEZ Master Plan is launched at the right time, with a solid implementation foundation capable of delivering lasting benefits to the people of Johor, attracting more high-quality investments, and elevating the state into a key regional economic and investment hub."

Prior to his comments on the JS-SEZ master plan, Onn Hafiz had in recent weeks also pressed the federal government to expedite the implementation of the state’s elevated Autonomous Rapid Transit (ART) project.

At an event on Jun 16, he said the ART is Johor’s “most critical long-term solution” to absorb an expected surge in passenger movement in Johor Bahru once the Johor Bahru-Singapore Rapid Transit System (RTS) Link starts its operations scheduled for January 2027.