Maybank, SMF Partner To Accelerate Manufacturers' Growth Through JS-SEZ, ASEAN

JOHOR BAHRU, Aug 21 (Bernama) -- Maybank and the Singapore Manufacturing Federation (SMF) signed a memorandum of understanding (MoU) to expand access to the Johor-Singapore Special Economic Zone (JS-SEZ) and support its development as a mutually beneficial proposition for both countries and the broader ASEAN region.

The MoU provides a platform linking 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, particularly in the JS-SEZ.

Maybank said in a joint statement today that it will support capacity-building initiatives such as sustainability and environmental, social and governance (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.

The bank is facilitating about RM22 billion in financing and investment interests including support for digital infrastructure, manufacturing, small and medium enterprises (SMEs) and businesses pursuing regional opportunities. 

Besides that, the bank has been actively supporting businesses exploring opportunities arising from the JS-SEZ through its regional banking network and cross-border capabilities. 

“Through this collaboration, we will leverage our presence across 10 ASEAN countries to provide SMF’s network of over 5,000 members with knowledge-sharing, business networking and capacity-building initiatives as they expand in Singapore and beyond,” Maybank said.

The signing, witnessed by Johor Menteri Besar Datuk Onn Hafiz Ghazi, took place during the ‘Dialogue with the Johor Chief Minister’, co-organised by Maybank and SMF in collaboration with the Malaysian Investment Development Authority (MIDA), bringing together Maybank’s clients and SMF members in Singapore to mark the commencement of their partnership.

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.

Onn Hafiz said the JS-SEZ had attracted a record RM126.9 billion (S$40 billion) in foreign direct investments since its formalisation.

“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,” he said.

According to the statement, the JS-SEZ Masterplan and Blueprint will outline measures to accelerate investment approvals, ease the movement of people and goods and develop new high-value, high-impact industries that will create more jobs for residents in Johor and Singapore.

The longer-term goal is to position the JS-SEZ as a gateway for investment into ASEAN and create shared prosperity for future generations.

Meanwhile, SMF president Lennon Tan said manufacturing contributes over 17 per cent of Singapore’s GDP and employs nearly half a million workers, making enhanced competitiveness a national imperative.

"To drive growth, Singapore enterprises must expand beyond local borders, with the JS-SEZ offering a compelling proposition for companies to adopt a twinning model by retaining headquarters operations in Singapore while setting up production in Malaysia’s resource-rich ecosystem.

"As the JS-SEZ programme manager, SMF has engaged more than 700 participants keen on establishing or expanding operations, with interest continuing to grow. 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,” he said.

Country CEO, CEO of Maybank Singapore Alvin Lee said the manufacturing sector in Singapore is expected to accelerate in tandem with global AI capex spend and contribute to resilient economic growth. 

He said the partnership with a likeminded partner like SMF that is committed to industrial transformation and sustainable development elevates 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 zone is a strategic choice for expansion given the proximity, long-standing relationship between both Malaysia and Singapore and premium placed by investors on stability," he said.

The partnership with SMF aligns with Maybank’s ROAR30 strategy of achieving a refreshed target of mobilising RM300 billion (S$94 billion) in sustainable finance and new targets of RM100 billion (S$31 billion) each for the new economy and SMEs across ASEAN, while supporting Singapore’s Manufacturing 2030 vision.

-- BERNAMA