Maybank and the Singapore Manufacturing Federation ("SMF") signed a Memorandum of Understanding ("MOU"), witnessed by the menteri besar (chief minister) of Johor, Onn Hafiz Ghazi, to expand access to the Johor-Singapore Special Economic Zone ("JS-SEZ") and support efforts to develop the zone as a win-win proposition for Singapore, Malaysia and broader ASEAN.

The signing took place at the 'Dialogue with the Johor chief minister', co-organised by Maybank and SMF to mark the commencement of their partnership, bringing together Maybank's clients and SMF members in Singapore, in collaboration with the Malaysian Investment Development Authority ("MIDA"). At the dialogue, Onn Hafiz shared updates on the progress and plans for the JS-SEZ Blueprint and Masterplan and outlined key priorities to promote advanced manufacturing.

The MOU creates a platform that connects SMF's ecosystem of local and multinational manufacturers and their vendor partners with Maybank's regional banking expertise and networks, facilitating high quality investment and expansion opportunities across the Singapore-Malaysia and Singapore-ASEAN corridors, with particular focus on the JS-SEZ.

Maybank will support capacity-building initiatives in areas such as sustainability and ESG-focused supply chain practices, while providing customised banking solutions notably in sustainable finance, cash management, payments, trade and supply chain financing and cross-border financing.

Maybank has been actively supporting businesses exploring opportunities arising from the JS-SEZ through its regional banking network and cross-border capabilities. The Bank is facilitating about MYR22 billion ($5.13 billion; SGD6.9 billion) in financing and investment interests including support for digital infrastructure, manufacturing, small and medium enterprises (SMEs) and businesses pursuing regional opportunities. Through this collaboration and leveraging Maybank's presence across 10 ASEAN countries, SMF's network of over 5,000 members will benefit from knowledge-sharing, business networking and capacity-building initiatives as they expand in Singapore and beyond.

Onn Hafiz Ghazi, the chief minister of Johor said, "Since the formalisation of the JS-SEZ, the zone has attracted a record of MYR126.9 billion ($29.6 billion; SGD40 billion) in foreign direct investments. Strategic partnerships and constructive dialogue between the public and private sectors like this with Maybank and SMF stakeholders will be critical in translating this momentum into long-term economic growth, investments and job creation. Building on this, the JS-SEZ Masterplan and Blueprint will outline key measures to further speed up investment approvals and remove barriers in movement of people and goods, at the same time, develop new high value, high impact industries that will create more jobs for both residents in Johor and Singapore. The longer-term goal is to position the JS-SEZ as a gateway to investing into ASEAN and create shared prosperity for our future generations."

Lennon Tan, president of SMF said, "With manufacturing contributing over 17% of Singapore's GDP and employing nearly half a million workers, enhancing competitiveness remains a national imperative. To drive growth, Singapore enterprises must expand beyond local borders. The JS-SEZ presents a compelling proposition, allowing companies to adopt a twinning model—retaining headquarters operations in Singapore while setting up production in Malaysia's resource rich ecosystem. As the JS-SEZ programme manager, SMF has engaged over 700 participants keen on establishing or expanding operations, with interest continuously growing. We look forward to partnering with the Johor state government and Maybank to help our members scale and realise their growth aspirations within the zone."

Alvin Lee, country chief executive officer, chief executive officer of Maybank Singapore said, "The manufacturing sector in Singapore is expected to accelerate in tandem with global AI capex spend and contribute to resilient economic growth. The partnership with a likeminded partner like SMF that is committed to industrial transformation and sustainable development elevates our support for Singapore and Malaysia businesses especially the SMEs in becoming future-ready. We are well positioned to do so leveraging our ASEAN franchise and as a preferred bank for Singapore-Malaysia transactions. The JS-SEZ is a strategic choice for expansion given the proximity, long-standing relationship between both Malaysia and Singapore and premium placed by investors on stability."

The partnership with SMF aligns with Maybank's ROAR30 strategy of achieving a refreshed target of mobilising MYR300 billion ($69.9 billion; SGD94 billion) in sustainable finance, and new targets of MYR100 billion ($23.3 billion; SGD31 billion) each for the new economy and SMEs across ASEAN, while supporting Singapore's Manufacturing 2030 vision.

Re-disseminated by The Asian Banker