A Proposed Visa Initiative Could Attract Skilled Foreign Workers to Support Economic Growth in the JS-SEZ

Maybank has emphasised that the introduction of an SEZ visa could significantly address the labour shortages plaguing businesses in the Johor-Singapore Special Economic Zone (JS-SEZ). In its latest report, “Johor-Singapore SEZ: Tracking the Progress,” the bank highlights the growing challenge of finding skilled workers within the zone, which has become a key issue for local businesses.

A survey from the Singapore Business Federation in 2024 revealed that nearly 60% of companies in Johor are struggling to hire the skilled technical workers they require. This challenge stems from a combination of factors, including restrictions on employment passes and the limited availability of local talent. Additionally, many workers are opting for higher-paying jobs in Singapore, further intensifying the labour shortage. The Malaysian government’s freeze on foreign worker hiring has worsened this situation, making it even more difficult for companies to recruit expatriates.

Maybank has proposed the creation of an SEZ visa aimed at attracting foreign skilled workers, particularly those with expertise in fields where local talent is lacking. The new visa would feature a fast-tracked application process to make it easier for professionals to relocate to Johor. The bank has also recommended expediting immigration passes for senior managers and technical experts, facilitating their seamless movement between the SEZ and their companies’ Singapore-based headquarters.

In a bid to address the long-term manpower challenges, the JS-SEZ will focus on training local workers, offering competitive wages, and enhancing immigration initiatives such as Malaysia’s DE Rantau Nomad Pass, which is designed for remote workers in the high-tech industry.

Additionally, the Johor Talent Development Council, established in November 2024, will serve as a hub for skill development, ensuring that local businesses can meet the demands of the evolving job market. Singapore and Malaysia have already committed to strengthening cooperation in technical and vocational education and training (TVET), ensuring that educational programmes are better aligned with industry needs.

For foreign investors, the newly introduced Malaysia My Second Home (MM2H) visa offers an alternative residency option for those wishing to live in the SEZ. However, this visa has certain limitations, including a prohibition on working in Malaysia, thus limiting its direct impact on the labour market.

In conclusion, Maybank’s report underscores the importance of an SEZ visa in resolving labour shortages in the JS-SEZ, which could strengthen the workforce and help businesses meet the region’s growing economic demands.