Maybank teams up with SME association to help firms expand in Johor-Singapore economic zone

SINGAPORE – Maybank Singapore signed an agreement on Feb 27 that aims to help smaller firms expand in the Johor-Singapore Special Economic Zone (JS-SEZ).

The memorandum of understanding (MOU) inked with the Association of Small and Medium Enterprises (ASME) will involve Maybank supporting companies in areas such as enabling market access, providing faster account openings and offering educational resources, training and advisory services.

The bank, South-east Asia’s fourth-largest by assets, will also offer green lane financing in Malaysia for loans of up to RM20 million ($6.04 million).

Maybank Singapore said the number of inquiries and referrals from small and medium-sized enterprises (SMEs) about doing business in Johor jumped 250 per cent in 2024 compared with 2023.

The JS-SEZ was officially announced in October 2023.

Maybank Singapore country chief executive Alvin Lee told The Straits Times that the biggest pain point that firms here face is the high cost of doing business.

“The JS-SEZ, from the start, will benefit the larger corporations which have the investment dollars to set up factories in Johor and take advantage of the tax benefits,” he noted.

“If you go down the value chain, obviously, the medium and small enterprises lack the know-how and the capital, and this is where I think banks like Maybank and associations like ASME can come in.”

SMEs make up 99 per cent of businesses in Singapore, with 20 per cent being Maybank customers, added Mr Lee.

He said at the signing ceremony at Maybank Tower: “We have observed a nearly 60 per cent increase in cross-border transaction volumes in 2024 compared with the previous year.

“Without the JS-SEZ, there was already a very strong trade connectivity. With the JS-SEZ, it is going to be even better.”

ASME president Ang Yuit noted the challenging times in Asean where SMEs can no longer just operate in their home markets as many foreign competitors are moving in.

“At the same time, there are also opportunities. So this MOU and this partnership that we are signing this year with Maybank would allow us to look at how we can jointly tackle challenges both domestically and internationally,” he noted.

Mr Ang later told The Straits Times: “We are looking at how we can support businesses to come together from a perspective where, maybe as a group, we can support each other better in our overseas initiatives.

“Fostering a collaborative and cooperation-oriented atmosphere and culture is something we are trying to do. By working with Maybank, we can create these pathways.”

ASME represents around 6,500 large, small and medium-sized companies across a range of industries.

Malaysian developer UEM Sunrise and Singapore’s GuocoLand also signed an MOU on Feb 27 to jointly develop UEM Sunrise’s selected freehold land bank in Iskandar Puteri, Johor.

UOB signed an agreement with Singapore’s and Malaysia’s Chinese chambers of commerce

on Jan 16 to offer financial and advisory services to businesses looking to enter new markets in the region or expand operations in the JS-SEZ.