SMEs can benefit from Johor-Singapore SEZ too: Alvin Tan
Source: The Straits Times
Author: Wong Pei Ting
SINGAPORE - Heartland businesses here, as with other Singapore-based companies, can benefit from increased economic connectivity and comparative advantages when the Johor-Singapore Special Economic Zone (SEZ) comes into force.
Minister of State for Trade and Industry Alvin Tan said this in Parliament on May 8 in response to a question by Kebun Baru MP Henry Kwek on how local small- and medium-sized enterprises (SMEs) can be helped should spending shift from Singapore to Johor.
Plans to set up the SEZ were formalised on Jan 11, after Singapore and Malaysia signed a memorandum of understanding to further discussions on its parameters.
Ideas mooted under the zone include a passport-free QR code system to speed up immigration clearance, and a one-stop business and investment service centre in Johor to make it easier for Singapore businesses to set up shop there.
On May 8, Mr Tan reiterated the SEZ's aims, which include facilitating goods flow, easing travel, and strengthening the investment ecosystem in Johor.
Providing an update on SEZ discussions, Mr Tan reiterated that both sides are working towards an agreement at the 11th Singapore-Malaysia Leaders' Retreat. Prime Minister Lee Hsien Loong and Malaysian PM Anwar Ibrahim had agreed at the previous retreat here in October 2023 that their upcoming meeting will be held in Malaysia.
"The Malaysian government is separately deliberating on the area and the sectors to be covered by the SEZ," said Mr Tan.
The two countries have also continued discussions on early ideas, such as the passport-free QR code clearance and the one-stop service centre in Johor.
The Singapore Business Federation is working on a set of suggestions for how the development of the SEZ can be shaped, said Mr Tan. As part of putting together this recommendation paper, the apex trade association is seeking views from industry, he added.
The Government will continue to revitalise the heartland and help smaller enterprises transform and stay competitive, said Mr Tan.
He pointed to the Heartland Enterprise Placemaking Grant, announced in Budget 2024, which helps heartland merchants increase customer footfall through community activities and tap on professional services such as event management and auditing.
The grant defrays up to 50 per cent of eligible cost for selected initiatives by these merchants, capped at $10,000 support per project.
Heartland businesses can also get support from the Heartland Enterprise Centre Singapore, which could provide them with business advisory services and upgrading programmes, he added.