Easing restrictions on foreign workers could fuel JS-SEZ success

Flexibility is needed to attract more companies to the special economic zone, experts said.

Giving businesses the flexibility for recruiting international talent will help accelerate their operations within the Johor-Singapore Special Economic Zone (JS-SEZ), according to Maybank.

In its report entitled “Johor-Singapore SEZ: Tracking the Progress,” the bank noted that manpower shortage and skill gaps in the SEZ are key concerns for businesses. A Singapore Business Federation poll in 2024 saw that nearly 60% of Singaporean businesses with Johor operations are facing challenges finding technical and skilled workers due to employment pass issues, and insufficient skilled labor.

“Many Johor residents prefer working in Singapore, due to higher salaries. In addition, businesses are facing difficulties in hiring expat workers with Malaysia imposing a freeze on foreign worker employment,” the bank added.

Maybank said an SEZ Visa could be introduced to bring in foreign workers, specifically managers and subject matter specialists with expertise not easily found locally.

This visa should have “favorable terms to attract foreign nationals to work in Johor, with the application process streamlined and fast-tracked so that businesses can quickly respond to changing needs.”

“Fast-track immigration passes should be considered, so that key figures (e.g. senior management or technicians) can quickly travel between the SEZ and company headquarters in Singapore,” Maybank added.

To address the manpower problem, the JS-SEZ will train local workers, offer attractive starting salaries and enhance Malaysia’s existing passes, such as the DE Rantau Nomad Pass for high-tech remote workers.

Authorities also established the Johor Talent Development Council in November 2024 as a one-stop hub for all education and training courses in the state. It will also ensure that companies in Johor offer sufficient job opportunities with competitive salary and benefits packages.

Singapore and Malaysia have already signed agreements to enhance cooperation in technical and vocational education and training (TVET) initiatives to meet industry demands.

A special Malaysia My Second Home (MM2H) residency visa was also introduced for the SEZ, with lower fixed deposit requirements and one-off fees, but prohibits most visa holders from working in Malaysia.