Johor-Singapore Special Economic Zone being carefully monitored

Thailand’s Eastern Economic Corridor Office seeks to ward off the competition from the newcomer, especially in terms of investment from China

The Eastern Economic Corridor Office (EECO) is closely monitoring the Johor-Singapore Special Economic Zone (JS-SEZ) as it could become an important competitor in attracting investment in ASEAN.

“Malaysia-Singapore's special economic zone was established to compete against Thailand’s EEC in drawing investment amid Chinese production relocation to ASEAN,” EECO secretary-general Chula Sukmanop told Krungthep Turakij.

He noted that Singapore and Malaysia are well aware of the EEC’s limitations of EEC, saying that JS-SEZ is being developed using Singapore’s expertise in economic zone management and Malaysia’s advantage in attracting high-technology like electronics and data centres.

Privileges for investors, support for the electronic industry, promotion of data centres and land pricing are among the factors that should be monitored, he said.Chula said EEC faces limitations due to the higher industrial land prices in Chonburi and Rayong that range from 1 million baht to 7 million baht per rai. With industrial land near ports almost full, EEC should accelerate the development of infrastructure to facilitate transportation, he added.

EEC should also accelerate negotiations in drawing investment and summarise privileges under the Eastern Economic Corridor Act.

The EECO is currently negotiating projects and privileges worth 136-billion baht with 14 investors , including digital, modern automobile, Bio-Circular-Green economy and service.

He added that the office has planned to propose privileges for entrepreneurs in the EEC to the cabinet, which would cover exemption or reduction of corporate income tax and customs tax, as well as other privileges similar to duty-free and free trade zones.

“Johor is fast in offering privileges for investors without the level of bureaucracy inherent to Thailand, ” he said, adding that EECO will do its best to facilitate and encourage investors to invest in the EEC.

Referring to the long-delayed high-speed train project connecting three airports (Don Mueang, Suvarnabhumi and U-Tapao), Chula said the State Railway of Thailand (SRT) is improving the partnership contract with Asia Era One and expected the new contract to be signed in April this year.

Additionally, EECO will accelerate the development of U-Tapao Airport and the eastern airport city project, he said, adding that land would be delivered to U-Tapao International Aviation in April or May this year.The Board of Investment (BOI) secretary-general Narit Therdsteerasukdi believes that Thailand’s industrial zones still have an advantage over the JS-SEZ in terms of infrastructure, logistics, electricity stability, clean energy, supply chains, facilities and government privileges.

From an investor perspective, JS-SEZ still has limitations, especially with regard to manufacturing infrastructure and electricity systems, as well as cross-border transportation issues, personnel shortages and supply chain readiness, he said.

For his part, the Federation of Thai Industries chairman, Kriengkrai Thiennukul, said the cooperation between Malaysia and Singapore came after witnessing production base relocation to Thailand, especially electric vehicles (EVs), electronic circuits and semiconductors.

He confirmed that Thailand, especially the EEC, still has an advantage in its ecosystem and privileges to attract investment. However, he urged Thailand to develop skilled labour as Singapore and Malaysia are at an advantage on this issue.

“We should reskill and upskill the workforce to support production base relocation, which will require no less than 80,000-100,000 people in the future,” he said.

(2025/03/18-00:00)