KUALA LUMPUR: Johor must have strong synergy with Singapore to replicate the remarkable achievement of Shenzhen and become a thriving Special Economic Zone (SEZ).
Just as Shenzhen's growth was catalysed by its proximity to Hong Kong, Johor and Singapore's geographical closeness presents opportunities for mutually beneficial economic development.
The symbiotic ties is a key element in Johor's bid to transform into a high-tech international metropolis in the foreseeable future.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said Johor has the size in respect to land resources.
It also offers cost-competitive entry points for technology companies in Singapore to have their research and development activities in Johor.
Malaysia has the right talent pool which can expedite the tech companies to set up their operations here.
Johor also has decent infrastructure such as expressways, electricity and water supply and a pro-business government.
"This would create a conducive environment under the banner of the Madani economy. So it's a win-win value proposition for both parties," Afzanizam told the New Straits Times.
It is imperative for Johor to receive robust support from both the federal and state governments. A comprehensive approach encompassing ease of doing business, infrastructure development, logistics enhancement and skilled workforce nurturing are essential to achieve the ambitious goal.
Putra Business School economic analyst Associate Professor Dr Ahmed Razman Abdul Latiff emphasised the critical role that governmental support played in this endeavour.
"The collaboration between the federal and state governments in terms of ease of doing business, facilities and infrastructure provided, logistics and skilled workforce is fundamental to ensure this aspiration becomes a reality.
The new SEZ is poised to become a catalyst for fostering stronger economic ties between Johor and Singapore, offering a multitude of benefits to businesses and industries looking to expand their operations.
This collaborative effort will help to boost both economies by combining cost advantages in Johor with Singapore's exceptional connectivity to regional and global markets.
"The creation of SEZ will not only foster closer economic ties between Johor and Singapore but also provide a boost to both economies," said Sunway University economics professor Dr Yeah Kim Leng.
"In particular, businesses and industries looking to expand capacity will benefit from the cost advantages of operating in the special zone located in Johor while tapping Singapore's connectivity and accessibility to regional and global markets."
While comparisons to Shenzhen are insightful, it's crucial to consider Malaysia's unique context, with a population of 32 million compared with Shenzhen's location within a country of 1.5 billion people.
Centre for Market Education chief executive officer Carmelo Ferlito said the growth potential for a city or region must be evaluated in the right proportion.
Absolute terms may differ significantly due to population disparities, but Malaysia's strengths, resources and strategic positioning can be harnessed to achieve impressive growth within its context.
"This means, as mentioned by Johor Menteri Besar Datuk Onn Hafiz Ghazi, improving the ease of doing business but I would say to speed up connectivity with projects such as the Kuala Lumpur-Singapore high speed rail project.
"But full potential for the SEZ can be achieved if the country in general moves in the same direction in terms of facilitation to business and trade," he added.
Yesterday, Onn Hafiz said Johor has the potential to flourish like Shenzhen if the Johor-Singapore SEZ becomes a reality.