KUALA LUMPUR: The government will not "blindly" give allocations for joint infrastructure development for specific projects in the Johor-Singapore Special Economic Zone (JS-SEZ), the Dewan Rakyat heard today.
Economy Minister Rafizi Ramli said the matter had been conveyed to Singapore through meetings.
"For joint financing on the infrastructure development for specific projects, we have conveyed to the Singapore government that we will not allocate funds blindly.
"It must be done jointly with private investors and the way to go about it is to consider having infrastructure funds available when there is an investment from the private sector," he said during the ministry's special session on the JS-SEZ today.
At the same time, Rafizi added, the presence of JS-SEZ could divert international companies from investing in other countries in the region.
This is because many international investors are seeking ways to establish their presence in Southeast Asia following geopolitical risks in their respective countries.
"JS-SEZ will not only focus on getting Singapore companies to come to Johor, but also provide a greater potential for companies worldwide to come to Johor with the view that they can have the best of both worlds.
"This means (enjoying) the sophistication of Singapore, while leveraging on Johor's resource and cost advantages.
"Previously, the destination for these companies were Vietnam. However, with the presence of JS-SEZ, we can position Malaysia as a competitor to divert investments that previously went to Vietnam towards Johor and Singapore."
Rafizi further said the government's focus was also to draw investors whose sights were set on sectors aligned with the government's high-value policies as outlined in the New Industrial Plan 2030, the National Energy Transition Roadmap and the 12th Malaysia Plan.
In January, Malaysia and Singapore signed a memorandum of understanding on the JS-SEZ to strengthen economic connectivity between Johor and Singapore.
The special economic zone will target sectors related to electronic, financial services, business-related services and healthcare.
Yesterday, Rafizi said the government was confident that the JS-SEZ agreement could be finalised by September.
He said the negotiation with Singapore on the full-fledged agreement was in the final stage.