Two SGX listcos eye investments in Johor-Singapore Special Economic Zone: Maybank

[SINGAPORE] Singapore-listed companies Thomson Medical Group and Centurion Corporation have expressed interest to invest in the Johor-Singapore Special Economic Zone (JS-SEZ), said Maybank on Monday (May 19). 

The two listcos are among the Malaysian bank’s three Singapore-headquartered clients that submitted letters of intent (LOIs) to the Iskandar Regional Development Authority at the JS-SEZ Partners’ Dialogue: Advancing Facilitation event hosted by Malaysia’s Ministry of Economy.

A third company – Alpine Renewables and Edible Oils, a supplier of feedstock to biofuel producers in Europe, China, South Korea and the US – has also expressed interest in setting up facilities in JS-SEZ.

The LOIs express a combined investment interest of up to RM2.35 billion (S$709.5 million) over the next three to 10 years. They “signal confidence in the JS-SEZ’s strategic value”, said Khairussaleh Ramli, president and group chief executive officer of Maybank. 

“These intended investments contribute to the development of the 11 JS-SEZ economic sectors, particularly in the green economy, manufacturing, logistics and healthcare, and align with the Madani Economy’s aspirations of creating new growth engines, and adding high value jobs,” said Maybank.

In addition to facilitating the submission of the LOIs from its Singapore clients, the bank also inked an LOI with the Malaysian Economic Ministry, outlining interests in joint efforts to promote the JS-SEZ. 

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The bank has also launched initiatives to position the JS-SEZ as a regional hub, including upskilling micro, small and medium enterprises in areas of supply chain and halal facilitation, Khairussaleh said. 

It supports clients in strategic sectors of data centres, infrastructure and semiconductors and facilitated the approval of the first single family office in Malaysia and in the Forest City Special Financial Zone, he added.

Centurion, a global owner and manager of worker and student accommodation, has expressed interest to invest RM300 million to RM500 million over the next five years to double its bed capacity in the JS-SEZ.

Healthcare player Thomson Medical specified “strong interest” to invest up to RM1.5 billion over the next ten years to develop Thomson Hospital Iskandariah on a 1.5 hectare site in Stulang, Iskandar.  

This hospital, which will be a multi-speciality tertiary care facility, aims to create some 1,500 jobs across clinical, research, specialist physician roles and support services such as healthcare technology, said Maybank.

It will feature medical centres spanning disciplines such as oncology, orthopaedics, obstetrics and gynaecology, fertility and general surgery and will incorporate artificial intelligence-assisted tools. 

As for Alpine Renewables and Edible Oils, it plans to invest around RM350 million over the next three years to develop renewable energy feedstock pretreatment and renewable biodiesel refinery facilities in the Tanjong Langsat Industrial Port, in anticipation of rising demand for sustainable biofuels. 

Billions of ringgit in investments

Besides Maybank, there were LOIs signed with five other financial institutions – Bank of America, HSBC, Sumitomo Mitsui Banking Corp, CGS International Securities and CIMB Bank, said Malaysia’s Economy Minister Rafizi Ramli at the event.

There are also ongoing discussions to involve a European-based bank.

He said that these partnerships will help drive investments and financing support for the JS-SEZ. The banks’ presence will be key to galvanising private sector participation by pooling capital and commerce.

A blueprint for the zone bordering Singapore is to be launched at the end of the year. “It will be a roadmap outlining the long-term vision, strategic aspirations, and investment opportunities,” he said.

Malaysia and Singapore established the JS-SEZ in January this year. The plan is to target 50 projects within the first five years, with up to 20,000 skilled jobs created.

Malaysia will establish and manage an infrastructure fund to support companies looking to set up in the zone, while Singapore will establish its own fund to smooth investments and support companies from the city-state operating there.

Johor Chief Minister Onn Hafiz Ghazi, who was also at the dialogue, said that RM27.4 billion of total approved investment was secured in the first quarter of 2025, with RM23 billion more in the pipeline.

“If these numbers hold, we believe Johor will exceed RM50 billion to RM60 billion in total investments in 2025, surpassing last year’s RM48.5 billion,” he said.