• The next growth epicentre. On 15 Aug, RHB Banking Group hosted the inaugural Invest Johor conference in Forest City Marina Hotel. The event was graced by the Guest of Honour YBhg Dato’ Onn Hafiz bin Dato Ghazi, Menteri Besar Johor and other dignitaries including YB Lee Ting Han, Johor State Exco for Investment, Trade and Consumer Affairs. The event was well attended by over 500 participants comprising institutional investors from Singapore, Johor and Kuala Lumpur, as well as corporate stakeholders active in the Johor business eco-system. The day’s proceedings were capped off by eight corporate breakout sessions conducted in a hybrid mode to maximise investor participation.

• Standing room only. The conference revealed the depth of investor and corporate interest in the Johor-Singapore Special Economic Zone (JS-SEZ) from both sides of the border. Many attendees we spoke to were keen to personally hear Dato’ Onn Hafiz’s take on JS-SEZ, to be able to gauge the depth of commitment from the local state leadership on what is the most far reaching government-to-government (G2G) initiative between Malaysia and Singapore seen for some time. Conference attendees were not disappointed and during the generous hour the MB afforded to the event comprising his keynote address and fireside discussion that was communicated in a clear and articulate manner, helped by an ample dose of humour. It is apparent the lengths that the Johor State Government has gone to brainstorm, consult, engage, discuss and strategise plans to ensure that the JS-SEZ has every chance of success, to create exponential growth opportunities for both Malaysia and Singapore. A key lesson learnt on a study tour to Shenzhen that was shared by the MB was “ 特 事 特 办 that loosely translates to “extraordinary situations require extraordinary measures”.

• Win-win. The potential benefits of holistic economic cooperation between Malaysia and Singapore have long been apparent, however, it is only now that we have arrive at a stage where we have an alignment in the desire from the leadership of both sides to work towards overcoming legacy obstacles. A recurring theme was talent development, availability and retention including wage and productivity differentials. While some of these are structural issues, what is encouraging is that it being recognised early by both sides including potential investors and employers with many proposals being discussed to overcome these challenges.

• Corporate breakouts bursting at the seams. The corporate breakouts held over two multi-track concurrent hybrid sessions involved eight companies including Centurion Corp from Singapore with over 400 attendees. There was overwhelming demand and, in some cases, physical attendees arriving late were unable to join the meeting of their choice due to the lack of room. The high sign-ups for UEM Sunrise also saw the meeting shifted to the ballroom to accommodate the demand.

Source: RHB Securities Research - 19 Aug 2024