Economy Ministry partners with six local and international banks to boost JS-SEZ, securing RM2.35 bil so far

From left: Maybank global banking group chief executive officer Datuk John Chong Eng Chuan, CIMB group CEO Novan Amirudin, CGS International CEO Azizah Mohd Yatim, Minister of Economy Datuk Seri Mohd Rafizi Ramli, Johor Menteri Besar Datuk Onn Hafiz Ghazi, Sumitomo Mitsui Banking Malaysia deputy CEO Mohammed Nizar Faisal, Bank of America Malaysia CEO Gautam Padmakar Puntambekar, and HSBC Malaysia CEO Datuk Omar Siddiq on Monday. (Photo by Shahrin Yahya/The Edge)

KUALA LUMPUR (May 19): Six major local and international banks have signed letters of intent (LOIs) with the Ministry of Economy to help bring in investments to the Johor-Singapore Special Economic Zone (JS-SEZ), with RM2.35 billion in investment interest already secured.

The signatories include Malayan Banking Bhd (KL:MAYBANK), CIMB Group Holdings Bhd (KL:CIMB), CGS International, Sumitomo Mitsui Banking Malaysia, Bank of America Malaysia, and HSBC Malaysia.

Maybank said on Monday it has helped its Singapore-based clients—Alpine Renewables, Edible Oils Pte Ltd, Centurion Corporation Ltd, and Thomson Medical Group Ltd—submit LOIs to the Iskandar Regional Development Authority (IRDA) for planned investments of up to RM2.35 billion over the next three to 10 years.

The six institutions have been tasked with supporting and channelling capital to prospective clients of the JS-SEZ—which is being developed as a cross-border hub for innovation, logistics, healthcare, and sustainable industries.

“With banks being the conduits of capital, their presence is critical to galvanising private-sector participation through the pooling of capital and commerce,” said Minister of Economy Datuk Seri Mohd Rafizi Ramli during his keynote address at the JS-SEZ Partners’ Dialogue: Advancing Facilitation session.

“Having the buy-in from these anchors of the financial system is perhaps the best show of progress and belief in the JS-SEZ to date,” he added.

Malaysia and Singapore formally signed an agreement in January 2025 to create the zone that aims to attract 100 projects worth RM100 billion within its first decade and create some 100,000 new jobs in high-value economic sectors.

To support the JS-SEZ, the government has announced incentives, including a special corporate tax rate, to lure investors to set up shop in the zone that stretches from Kulai and part of Pontian to Pengerang.

The banks will realise the vision of the JS-SEZ through financing support, promotion, stakeholder engagement, and market intelligence, Rafizi said, noting that the lenders will have direct access to government policy and support to convince their clients to invest in the zone.

The banks picked were to ensure broad international investor outreach with CGS International targeting Chinese investors, Sumitomo Mitsui covering East Asia, and Bank of America representing the US market, he said.

Discussions are ongoing with a European bank expected to join soon, Rafizi said. “They will come on board…I think it takes slightly longer to go through the internal process.” Credits: Edgeprop.my - Published May 19th 2025 - Luqman Amin / theedgemalaysia.com