ISKANDAR PUTERI: The agreement for the Johor-Singapore special economic zone (SEZ) will be signed on Dec 8.
Johor Menteri Besar Datuk Onn Hafiz said the memorandum of understanding on the SEZ was in the final stages of being drafted.
"This is the result of the hard work of various ministries and agencies at the federal and state level, and those of our counterparts in Singapore," he said in a written reply in the state assembly today.
Onn Hafiz said the details of the agreement were refined during a joint Malaysia-Singapore workshop on the SEZ.
He was responding to a question from Datuk Jefridin Atan (PH-Kukup) on the date for the SEZ agreement's signing and if the state was ready for the challenges facing the initiative.
Onn Hafiz said the Johor government was working closely with Putrajaya on overcoming challenges including competition for quality jobs as the SEZ would attract talent including those from outside the state.
He said without sufficient local talent, it could lead to a demand for foreign expertise.
"The second (challenge) is the increase in the cost of living. The SEZ is expected to lead to an increase in land values and costs of living in the area around it."
This could be challenging for those from lower-income households.
Onn Hafiz also spoke on the risk of imbalance development between the SEZ area and more rural areas in the state.
However, he said the state government was taking measures to address these challenges while optimising the benefits that would arise from the SEZ.
This includes developing a skilled workforce, developing affordable housing in the SEZ area and empowering local entrepreneurs to prepare for more aggresive and dynamic challenges.
The state government will also provide incentives and support for local entrepreneurs, he said.
"We will also protect our local identity and culture, the state government will ensure the values and culture of Bangsa Johor are preserved."