[ad_1]
Investors share wish lists
But the minister said investors at Wednesday’s forum had demanded that the SEZs be primarily “privately led”.
“The companies we want to encourage to come to Jiangsu SEZ to build the ecosystem are exactly the high-tech driven, high-value content industries that we lack, and they are almost exclusively interrelated with PE and VC funds,” he said.
Rafizi said these investors do not necessarily conduct business in a traditional way or as part of the expansion of the conglomerate, but rather move in a “very agile” way.
“So speed, flexibility and exit are also issues for them,” he added.
Rafizi said Malaysia will work towards creating a business-friendly environment rather than focusing only on selling land in the Jharkhand SEZ.
“If you can convince investors and the ecosystem to come on board, then the land will sell itself,” he said.
Rafizi said he recently visited China to promote Saudi special economic zones to 100 companies, including private equity and venture capital firms that have financed China’s industrial development over the past two decades, and received a “very good” response.
He said both Chinese and Western investors see Southeast Asia as a very large and important market, and therefore welcome the Jiangsu Special Economic Zone as a way to integrate the Southeast Asian market.
“This value proposition is perhaps the biggest selling point of JS-SEZ,” he said.
Ong Hafiz said on Wednesday that Johor state authorities would listen “with an open mind” to feedback from banks, business chambers and potential investors attending an investment forum on Wednesday.
“This is to ensure that the policies we implement in the future will not only benefit investors but also the people of Malaysia.”
Location of Jiangsu Special Economic Zone
In May this year, Mr Onn Hafiz had told the Johor State Legislative Assembly that the state government’s proposed JS-SEZ could cover Johor Baru and extend to Iskandar Puteri (including the troubled Forest City development) in the west and Pengerang in the east.
The Johor SEZ is proposed to cover 3,505 square kilometres, more than four times the size of Singapore, and will involve the local authorities of Johor Bahru, Iskandar Puteri, Kulai, Pasir Gudang and Kota Tinggi.
But Mr Onn Hafiz said on Wednesday that the actual geographical extent of the JS-SEZ would only be announced after an agreement is signed with Singapore.
In a commentary for CNA in June, UOB analysts wrote that both Malaysia and Singapore are important players and partners in the semiconductor ecosystem, and the JS-SEZ will strengthen the positions of both countries in the electrical and electronics sectors.
Singapore has leading companies carrying out R&D and wafer fabrication in the country, while Malaysia plays a key role in the assembly and testing of chips.
While Rafizi declined to elaborate on the discussions with Singapore, he rejected the idea of a special Malaysian-Singapore currency exchange rate in the Saudi special economic zone.
“Currency is currency, there is no discussion on this at all. I don’t think there will be a ‘Johor ringgit’. Every country wants to maintain a monetary policy,” he said.
“The focus is on the free movement of people, goods and services to be able to integrate Singapore and Johor into one economic unit.”
Analysts at UOB said the Johor SEZ would allow Singaporean talent to quickly travel to Johor, facilitating the exchange of ideas and best practices, given the scarcity and rising costs of land in Singapore.
This can be achieved through a passport-free QR code clearance scheme on both sides, facilitating faster clearance of people at land checkpoints.
When asked to elaborate on the passport-free clearance policy at JS-SEZ, Mr Onn Hafiz said “all options are being discussed”, one of which is the QR code method.
Now, Car passengers arriving and departing from Singapore Travellers at Woodlands and Tuas land checkpoints can use the QR code to go through immigration formalities.
Meanwhile, Malaysia is testing QR code clearance concept verification test Provide a three-month visa exemption for Malaysians crossing the Causeway.
Rafizi said “more specific plans” for different areas of the Saudi special economic zones, including the movement of people, will be announced after the agreement is signed in September.
“But I think the whole idea is clear that we want to achieve free movement of people and services between Singapore and Johor in stages,” he said.
“What needs to be worked out and planned is the sequencing and phasing because it can’t be done all at once. But once the two countries commit to removing the (checkpoint) bottlenecks, then the respective agencies of the two governments have to work out those details.”
Mr Onn Hafiz had previously said JS-SEZ aims to create 400,000 new high-income jobs and raise household income to RM13,000 (US$2,760) per month.
The region’s GDP is also expected to reach RM260 billion, growing at an annual rate of 7%.
Rafizi said on Wednesday that the previous figures referred to the “cumulative potential” that the Jharkhand SEZ could offer and he hoped to share more specific figures on the value of investments attracted in the future.
“But now the focus is on signing the agreement, finalizing all the details, and then seriously attracting investors,” he added.
[ad_2]
Source link
