Johor-Singapore Special Economic Zone Attracts Private Capital

One year after its inception, the Johor-Singapore Special Economic Zone (JS-SEZ) is becoming a significant draw for private capital, positioned strategically at the crossroads of emerging trade routes and AI-ready infrastructure. FactSet posted on X that investors are increasingly focusing on larger, strategic investments that leverage Johor's expansive industrial capabilities alongside Singapore's research, development, and financial systems. Key developments include a shift towards higher-value deals, albeit with reduced volumes, reflecting growing investor confidence. The region's digital infrastructure is set to expand significantly, with planned data center capacity in Johor, Kuala Lumpur, and Singapore expected to reach 21GW by 2025. Additionally, the zone is experiencing export-led growth, with public companies increasing their revenue exposure to major markets such as the United States, European Union, and China. This growth is further supported by regional integration efforts, backed by the Asia-Pacific Economic Cooperation's Free Trade Area of the Asia-Pacific (FTAAP) agenda and various supply chain initiatives.