Is Johor’s Rapid Development Properly Planned?

By Saleh Mohammed

Malaysia has been on a journey to become a fully developed nation since 1991. While significant progress has been made, the mission remains a work-in-progress.

In Johor, however, the excitement is tangible. The momentum is growing, and the projections are very encouraging:

His Majesty, the Sultan of Johor, is now the King. The Johor–Singapore Special Economic Zone (JS-SEZ) is in full swing. The Johor Bahru–Singapore RTS Link is progressing rapidly. Johor recorded the highest GDP growth in 2024, surpassing the national average.

The state government targets a 7.8% annual GDP growth, aiming to reach RM260 billion by 2030.

JS-SEZ: A New Chapter Inspired by Shenzhen?

The JS-SEZ is the main focus, intended to replicate the success of China’s Shenzhen SEZ. Over the next five years, the zone aims to attract 50 high-value projects, lured by:

• Tax breaks
• Streamlined customs procedures
• Relaxed regulations

In Budget 2025, an RM5 billion infrastructure development fund was proposed. The Medini area (part of Iskandar Malaysia) has already spent RM2 billion on infrastructure, with the larger Iskandar Malaysia plan targeting RM636 billion in committed investments by 2030.

An official agreement to establish the JS-SEZ was signed in January 2025.

Let’s Pause for a Moment

I, like many others, genuinely want Johor to prosper and help propel Malaysia toward developed-nation status. But there are serious planning and implementation gaps we must address.

Key Questions That Need Answers:

• Why doesn’t JS-SEZ have clear investment targets, unlike Iskandar Malaysia?
• Can we really replicate Shenzhen without developing our own homegrown innovators like Huawei, Tencent, or DJI?
• Do we have the talent pool young, highly educated, and innovative—to drive such a transformation?

The case of Penang vs. Shenzhen shows us that FDI alone is not enough without domestic innovation and capacity-building.

Infrastructure without Inclusion?

There’s growing concern about cross-border congestion at the Causeway and Second Link. The government is looking at congestion charges, public transport improvements, and even restarting the KL–Singapore High Speed Rail (HSR).

But let’s ask—why are we still depending on the outdated Causeway, when it:

• Cannot accommodate modern infrastructure needs
• Restricts water flow, worsening environmental issues in the Johor Strait

A bridge, or even the previously proposed “crooked bridge”, might have been a cheaper and more functional solution.

And then there’s the brain drain.

The RTS Link, while a connectivity win, could ease the flow of Malaysian talent into Singapore, worsening our own human capital shortage.

The Property Overhang: A Clear Sign of Misalignment

One major concern that must be addressed is the property overhang in Johor, especially in Iskandar Malaysia. Despite massive development, thousands of unsold units remain empty, luxury condos and serviced apartments, often priced out of reach for most locals.

This overhang isn’t new. It has been building over the years due to:

• Overambitious speculative developments
• A focus on foreign buyers rather than local demand
• Insufficient coordination between urban planning, economic growth, and population needs

While developers rushed to build in anticipation of rapid growth, basic demand-supply fundamentals were ignored. There’s a mismatch between what is being built and what is actually needed.

With JS-SEZ now taking centre stage, we must avoid repeating this mistake. Development must align with affordability, liveability, and the demographic profile of the actual population. Otherwise, the promise of smart cities and economic corridors will collapse into hollow skyscrapers and ghost precincts.

Let’s learn from this. Incentives for balanced housing development, including affordable housing, must be embedded into the SEZ planning.

The Human and Social Cost

Two weeks ago, Johor announced it is drafting measures to tackle rising food, transport, and housing costs. Many residents are worried, especially since Johor Bahru’s cost of living has already surpassed several other cities. The 2026 Budget is expected to outline mitigation initiatives.

But again why weren’t these social concerns addressed earlier, before pouring billions into infrastructure?

Healthcare is another urgent concern. Reports show:

• Johor has one doctor per 600 people
• Singapore has one doctor per 350 people, with higher salaries and better facilities
• Johor’s healthcare workers are overworked, and the system is stretched thin

Even the Prime Minister has stressed that the people’s welfare must come first, including addressing frequent flooding issues in Johor.

Sustainability & Data Centre Boom: Are We Ready?

JS-SEZ aspires to lead in renewable energy and sustainability. But there’s a twist.

The boom in data centre development poses significant challenges:

• Johor struggles to consistently supply water
• Future water treatment plants are planned, but monitoring and regulation are critical
• Singapore lifted its moratorium on data centres, but it also rolled out the Green Data Centre Roadmap

Malaysia must act fast and introduce laws that ensure efficient water use, especially in data-intensive industries.

Malaysia-Singapore Partnership: Is It Balanced?

Under the JS-SEZ agreement:

Malaysia will:

• Set up and manage an infrastructure fund
• Establish a one-stop investment centre (Invest Malaysia Facilitation Centre)

Singapore will:

• Create a fund to support Singaporean companies entering JS-SEZ

Malaysia has already fulfilled its obligations, including generous incentives, but has Singapore done the same?

My Two Sen: A Wake-Up Call

We need leaders who are bold enough to reform, but also capable of strategic planning and efficient execution. We must ensure:

• Equitable distribution of development benefits
• Effective governance
• Full transparency and accountability

This is Johor’s second chance after the early dreams of SIJORI (Singapore, Johor, and the Riau Archipelago). Let’s not waste it.

Meanwhile, we also have other economic corridors, NCER, ECER, SDC, and SCORE, that can and should contribute to our national growth.

Let’s not forget:

In the 1990s, Malaysia could have given Singapore a run for its money. But after the Asian Financial Crisis, the gap has widened.

We must not aim to create a “Greater Singapore”. Instead, let’s build a Greater Malaysia, powered by thoughtful policy, innovation, and inclusivity.

Final Thought

Let’s keep our eyes on the ball. Our federal debt has hit RM1.3 trillion. We don’t have money to burn.

It’s time to plan right. Spend wisely. And think ahead.

What say you?