OCBC tasks 25 bankers in S’pore, Johor to expand business in new special economic zone

SINGAPORE – Some banks in Singapore and Malaysia are positioning themselves to capture new business opportunities that may emerge once a new special economic zone in Johor is launched in January.

OCBC on Dec 11 announced that it has assigned a team of 25 experienced bankers in Singapore and Johor to provide advisory services and financing support to customers from Singapore, Malaysia, Indonesia, China and Hong Kong who want to expand their businesses in the Johor-Singapore Special Economic Zone (JSSEZ).

The bank, which operates eight branches in Johor, has helped around 260 regional mid-sized firms from the services, construction, manufacturing, and wholesale and retail trade sectors set up their businesses in Malaysia in 2024. It expects this number to increase by 20 per cent in 2025 as a result of rising interest in the special economic zone, which will contribute to the bank’s growth and expansion.

“Our play is about bringing investors from outside Asean directly into JSSEZ,” said Mr Roy Tan, OCBC head of enterprise banking international, global commercial banking. “Being a regional bank allows us to handle queries, help clients set up their business and imports and exports. We stand a good chance to lead in these areas.”

Mr Tan was speaking to the press during a Johor visit co-organised by OCBC and the Malaysian Investment Development Authority for 28 Singapore and Chinese mid-sized enterprises in the manufacturing sector. 

OCBC is among a growing number of banks expanding their presence in the special economic zone ahead of its opening.

Maybank, Malaysia’s largest financial institution and one of the largest foreign banks operating in Singapore, was among the first movers on this front.

Maybank Singapore’s country chief executive Alvin Lee told The Straits Times that its efforts to engage new small and medium-sized enterprise (SME) clients since the

JSSEZ was

first

announced in October 2023

have led to a surge in inquiries and referrals about doing business in Johor.

“From the inquiries, we know that SMEs are interested in ease of account opening, asset financing, and remittances beyond banking services,” he said. “When the JSSEZ becomes a reality and further eases the movement of people and goods, we can expect strong growth in cross-border payments.”

Beyond banking services, Maybank will also be offering services to guide SMEs in matters such as legal and tax, halal certification, and applications for the Malaysia My Second Home programme that allows foreigners to reside in Malaysia.

The JSSEZ was proposed by Singapore and Malaysia to increase connectivity between the two countries and attract foreign direct investments, particularly from firms diversifying beyond China.

The initiative will offer special tax arrangements, passport-free clearance, training incentives, and incentives for 10 sectors, to encourage cross-border business expansion and open up new business and employment opportunities for Malaysians and Singaporeans.

The signing of an agreement for the JSSEZ between Prime Minister Lawrence Wong and Malaysian Prime Minister Anwar Ibrahim was originally set to take place in Putrajaya on Dec 9, but was postponed after

PM Wong tested positive for Covid-19.

It is now expected to take place before the 2025 Chinese New Year, which falls on Jan 29, Johor State executive committee member Lee Ting Han said at the OCBC event.

He noted that critical issues such as ease of movement of people and cargo between borders are being addressed to facilitate the success of the special economic zone.

“In Malaysia, we will be expanding our QR code passport-free clearance system to Malaysians starting early next year and hopefully to all passport holders by next year,” he said.

This comes after Singapore’s Immigration and Checkpoints Authority said on Dec 11 that it would roll out QR code clearance progressively at all automated lanes and special assistance lanes at the bus halls of both Tuas and Woodlands checkpoints.

The move will begin with Tuas Checkpoint from Dec 16. Implementation at both land checkpoints will be complete by mid-January 2025.