MALAYSIA: Johor has emerged as Malaysia’s fastest-growing state in 2024, recording an economic growth rate of 6.4% compared to the national average of 5.1%, according to the Department of Statistics Malaysia’s July 2025 report.
In a Facebook post on Tuesday (Aug 13), Johor State Executive Council Member Lee Ting Han said this was the first time Johor had outpaced all other states in economic expansion. Johor’s gross domestic product rose from RM142.3 billion (S$43.33 billion) in 2022 to RM158 billion in 2024, which is an increase of more than RM15 billion within three years.
Lee said that this achievement can be credited to the coordinated efforts between the state and federal governments, targeted investment policies, and the strategic use of Johor’s geographical advantages.
Diversifying into high-value sectors
According to Lee, Johor’s economy is no longer dependent on a single sector. Over the past three years, the state has attracted investments across electronics, semiconductors, precision engineering, finance, logistics and high-end tourism.
The rapid rise of the data centre industry has positioned Johor as the largest data centre cluster in Southeast Asia, drawing major global tech companies and paving the way for artificial intelligence applications.
Similar to its earlier transformation of Pengerang into a major petrochemical hub, Johor is now working to replicate that success in emerging industries such as semiconductors, green energy and advanced manufacturing. Efforts are underway to develop upstream and downstream supply chains, with negotiations ongoing to bring a leading semiconductor materials producer into the state.
A cornerstone of Johor’s long-term growth plan is the Johor–Singapore Special Economic Zone (JS-SEZ), designed to enhance cross-border industry cooperation, investment flows and talent exchange.
Lee noted that the state’s recent high-level meetings in Singapore — including engagements with the Prime Minister and senior ministers — underscored the mutual commitment to making the zone an effective platform for bilateral growth.
Under the JS-SEZ framework, Johor will provide competitive land and operational costs for high-tech manufacturing, modern logistics and service industries, while Singapore will leverage its financial, technological and market networks. The collaboration is also anticipated to extend into other plans, including green economy projects, smart city development and cross-border financial services.
Johor’s economic development carries direct implications for Singapore. The expansion of high-tech industries and large-scale infrastructure projects across the border could create opportunities for Singaporean companies in many industries.
The JS-SEZ could also improve supply chain resilience for Singapore-based firms by providing cost-effective production capacity nearby. With the rise of Johor’s data centre industry, the JS-SEZ also offers potential benefits for Singapore’s digital economy, which is limited in terms of land and energy. Therefore, Singaporean businesses may be able to tap into Johor’s growth while strengthening their own competitiveness with the improved regional integration.
Reference : Johor leads Malaysia in growth for the first time, charting a new economic era – Singapore News