bt@nst.com.my
ISKANDAR PUTERI: Johor wants to turn RM132 billion in Johor-Singapore Special Economic Zone (JS-SEZ) investments into better-paying jobs and stronger local businesses.
The 2027 Budget offers measures to help small firms grow and equip Johoreans with skills for higher-value industries.
Johor Investment, Trade and Consumer Affairs committee chairman Lee Ting Han said the success of the state's economic expansion must be measured by how far local businesses grow alongside multinational investors and whether Johoreans secure better-paying jobs.
He welcomed federal measures to reduce the tax burden on micro, small and medium enterprises (MSMEs), improve financing access and strengthen technical and vocational education and training (TVET).
He said the measures would help local companies compete for a bigger role in industrial supply chains.
The JS-SEZ recorded RM132 billion in investments from 2025 to June this year, while Nexus Sedenak has been identified as having the potential to attract RM12 billion in investments and generate 45,000 jobs, according to the Budget 2027 announcements.
LINK: https://www.nst.com.my/business/economy/2026/10/1551614/2027-budget-js-sez-records-rm132bil-investments-master-plan-set
The JS-SEZ master plan and blueprint are scheduled for launch by the end of this year, alongside a proposed special task force to coordinate negotiations with companies in strategic sectors.
Lee said Johor needed to ensure local MSMEs could move beyond supporting roles and become higher-value suppliers to multinational companies entering the state.
The budget lowers the income tax rate for eligible MSMEs by one percentage point, to 14 per cent on the first RM150,000 of chargeable income and 16 per cent on income between RM150,000 and RM600,000.
The measure is expected to benefit 300,000 MSMEs nationwide, with tax savings of up to RM6,000.
The budget also provides RM57 billion in national loans and financing-guarantee facilities for 2027.
Lee said better access to financing, technology and productivity-enhancing equipment would help Johor businesses scale up and compete for contracts in the JS-SEZ.
The budget allocates RM8 billion for TVET across ministries, including RM3 billion through HRD Corp for three million skills-training opportunities and RM500 million through the Skills Development Fund Corporation for training at registered institutions.
Johor's demand for skilled workers is expected to span semiconductors, advanced manufacturing, data centres, logistics, the digital economy and green energy.
Lee said the Johor Talent Development Council would continue working with education institutions and industry players to align training with employers' needs.
The budget also identifies a 1-gigawatt hybrid energy project in Johor by UEM Lestra, forming part of an RM1 billion investment package that includes energy storage at KLIA.
At Forest City, the introduction of a multi-family office model is intended to complement existing single-family office incentives and strengthen the development's position in wealth management and financial services.
Lee said the state would continue engaging the federal government on strategic infrastructure needs, including highway connectivity, water and electricity capacity, and healthcare facilities.
These would be critical to supporting new investments and meeting the needs of a growing population, he said.
He added that Johor's development priorities must extend beyond investment figures to include better employment prospects, stronger local businesses and improved living standards.
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