Singapore farmers head across the border to Johor for cheaper land and energy

SINGAPORE - Mr Vincent Wei led fellow Singaporean farmers around an empty Malaysian plot, laying out plans for a greenhouse and rows of leafy vegetables. What he pitched was not just space for crops but a lifeline for growers struggling to make ends meet amid high prices and little vacant land.

The to-be agriculture hub is part of the Johor-Singapore Special Economic Zone (JS-SEZ) launched in 2025. It is expected to cost US$123 million (S$158.5 million) and produce 10,000 tonnes of fresh produce a year. It is luring Singapore’s farmers with promises of cheaper land, labour and energy just over the border. 

Mr Wei is confident of securing farmers for the 80.9ha site, promising they can “reduce their cost of set-up and operations” there. Representing a joint venture between his agri-tech firm Archisen and Southern Catalyst, backed by Malaysia’s Ministry of Finance, he aims to get them going by the third quarter of 2026, offering 25-year land leases bundled with infrastructure and electricity.

“It’s an aggressive timeline,” Mr Wei admitted, as earth diggers roamed the plot clearing it of palm trees. But wait any longer and some of those ventures may already be out of business, he said.

Singapore has tried in recent years to reinvigorate its farming industry. Last week, it

opened the world’s tallest vertical farm

, valued at $80 million and set to produce up to 2,000 tonnes of vegetables such as lettuce and spinach a year. 

Yet, a string of farm and start-up closures has underlined how high-tech agriculture is far from being a definitive solution for the island state’s food security. 

The fledgling sector has been buffeted by “headwinds – supply chain disruptions, inflationary pressures on energy and manpower costs, and a tougher financing environment”, Minister for Sustainability and the Environment Grace Fu said in November. 

That has forced the Government to scale back an ambitious plan to meet a third of its population’s nutritional needs through local production by the end of this decade. Still keen to protect against disruptions like those seen during the Covid-19 pandemic and the Russia-Ukraine war, the country’s new target is to meet 20 per cent of fibre and 30 per cent of protein needs locally by 2035.

While Singapore has poured more than $300 million into agri-tech research and development, some farmers complain that does little to ease the cost pressures of actually running a farm.

Ms Grace Lim, co-founder of a vertical farm GroGrace, has been losing about $25,000 a month since her electricity bill doubled between 2019 and 2025. She called for the Government to subsidise the sector, like in the European Union, which is expanding payments and simplifying financing for farmers.

“Why are they letting perfectly working commercial farms die while they continue to pour money into research that doesn’t actually grow your real food?” she said.

The mounting losses have also frightened off investors. Private funding for agriculture ventures in Singapore peaked at $1.1 billion in 2021 but had dwindled to just a tenth of that by 2025, according to venture capital firm AgFunder.

Mr Wei believes the industry is in a “fund-raising winter”, where start-ups are hard-pressed to find investors because they are unable to turn a profit.

Enter the JS-SEZ where Mr Wei, his clients, and other firms are starting to shift or expand their operations.  

Singapore-based Vegeponics, for instance, is expanding its container and vertical farms to the JS-SEZ. By having facilities in both countries, the vegetable grower expects to cut operational costs – which can reach $70,000 a month – by about a third, said marketing manager Jesper Fan.

The move will also be welcome for retailers and customers seeking price and supply stability.

Mr Wei said the agriculture hub in the JS-SEZ could support closer cross-border cooperation and strengthen regional food resilience in South-east Asia and further afield as Japanese, Korean and Chinese farmers also show interest.

For Mr Wei, what began as investor pitches and site walks around overgrown fields is gradually giving way to discussions on farm layouts and investment timelines.

“I think it is high time something like this is done,” he said. “If you don’t work with your neighbour, who do you work with?” BLOOMBERG