If you are an SME owner in Singapore, here are three benefits you can expect:

1. Better economic connectivity

Firms from both sides of the Causeway stand to reap economic benefits. The favourable currency exchange rate is one key advantage for Singapore firms. The increase in the number of economic players in Malaysia will also drive more foreign direct investment into the country.

For example, Singapore companies that move their business to the zone will save on operating costs like manufacturing, warehousing and professional services. Offerings like Maybank’s Overseas Transfer Service allow firms to execute seamless and instant payments, enjoying one of the best MYR-SGD currency exchange rates.

2. More diversified supply chain

Besides fostering economic growth, experts say the zonealso makes for an attractive manufacturing base, particularly for companies seeking to diversify their supply chain away from traditional hubs such as China and Vietnam.

Johor is fast emerging as a leading destination for data centres, attracting global players and incubating a wider digital and deep technology eco-system play between Malaysia and Singapore.

The state’s abundance of land and natural resources also make it a good base for companies in the clean energy and green space. “Singapore’s access to green funding and its own sustainable energy needs, coupled with Johor’s abundance of land and natural resources, should catalyse joint investments in renewable energy projects,” said experts at Maybank in a research note.

3. Bigger talent pool

The zone’s strategic location and proximity to Singapore not only generates new business opportunities, but also brings a fresh wave of talent from Malaysia.

This will greatly benefit Singapore firms looking to operate in the zone, as they can tap their experience and understanding of the Malaysian economy.

If further expertise is needed, Singapore SMEs can count on Maybank’s Malaysia Business Advisory Services. The bank has access to a panel of experts across human resources, legal counsels, taxes and accountancy services that will make the journey smoother for Singaporean businesses looking to set up shop in Malaysia.

While the details are still being finalised, the SEZ is projected to bring long-term economic benefits to both countries. “We can expect increased cross-border trade and partnerships between the two countries,” said Mr Alvin Lee, Country Chief Executive Officer of Maybank Singapore.

“This will further enhance the economic ecosystems of both countries, foster positive synergies across various sectors, and strengthen economic connectivity and cooperation,” he added.