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Johor Reassures Investors: Utilities Secured for Special Economic Zone Growth

Credit: The Edge Malaysia
Credit: The Edge Malaysia
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Onn Hafiz dismisses concerns, promises reliable water and power for long-term SEZ expansion

Johor Menteri Besar Datuk Onn Hafiz Ghazi has assured investors that the state has the resources to support rapid growth under the Johor-Singapore Special Economic Zone (JS-SEZ). Speaking at Forest City, he rejected claims that Johor’s infrastructure might falter under demand, pledging strong partnerships and planning to secure utilities well into the next decade.

Addressing Investor Concerns

Onn Hafiz dismissed what he called “unnecessary attempts” to alarm investors with claims of inadequate water and electricity supply. He stressed that no project—especially major ones like data centres—would be approved unless utilities were sufficient. His comments came during the launch of MBW Innexus Industrial City and a memorandum signing at the Invest Malaysia Facilitation Centre-Johor (IMFC-J) in Forest City, attended by Investment, Trade and Industry Minister Tengku Zafrul Aziz.

Long-Term Utility Planning

Johor has partnered with Indah Water Konsortium to provide alternative water supply and is working with the Energy Transition and Water Transformation Ministry (PETRA) on long-term utility security through 2030. These measures, Onn Hafiz said, are designed to give investors confidence that the state is future-proofing its infrastructure.

Implications for Singapore Companies

For Singaporean firms facing land constraints and high costs, Johor’s reassurances are significant. Stable water and power supply reduce operational risks for industries such as data centres, logistics, and manufacturing. This opens new opportunities for companies seeking expansion without concerns over power cuts or water shortages disrupting business continuity.

Johor Menteri Besar Datuk Onn Hafiz Ghazi has stepped in to calm worries about whether the state has enough water and electricity to support the boom expected under the Johor-Singapore Special Economic Zone (JS-SEZ). Credit: New Straits Times

Broader Impact on Communities

Beyond corporate investors, ordinary Singaporeans may also benefit. As more businesses establish operations in Johor, job opportunities in manufacturing, semiconductors, and tech are expected to grow. A stronger local economy could also enhance retail, hospitality, and lifestyle services, benefiting Singaporeans who frequently travel across the Causeway.

Building Trust and Stability

Onn Hafiz urged critics to stop spreading misinformation, emphasising that Johor’s growth contributes not only to the state but also to Malaysia as a whole. “Johor is very serious about attracting investment, and we will ensure investors feel secure with adequate water and electricity supply,” he said, as reported by the New Straits Times.

Johor’s pledge to guarantee water and electricity security underpins confidence in the JS-SEZ, strengthening its appeal to Singaporean companies and global investors alike. With firm infrastructure commitments, the SEZ is poised to become a catalyst for cross-border growth, benefiting businesses, workers, and communities on both sides of the Causeway.

Sources: The Indepedent Singapore News (2025) , New Straits Times (2025)

Keywords: Johor-Singapore SEZ, Onn Hafiz Ghazi, Utilities Infrastructure, Investor Confidence, Cross-Border Growth, Johor Investment

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