UOB(US:UOVEY) Xin Hua Cai Jing·2025-11-07 13:50Core Insights - The latest report from UOB's Global Economic and Market Research Department indicates that the Johor-Singapore Special Economic Zone (JS-SEZ) has successfully attracted approved investments amounting to 37 billion Malaysian Ringgit (approximately 8.8 billion USD) by the first half of 2025 [1] - Since the signing of the JS-SEZ Memorandum of Understanding in January 2024, Singapore-based companies have committed to invest over 5.5 billion Singapore Dollars (approximately 4.2 billion USD) in Johor, showcasing strong bilateral economic integration and investor confidence in the region's development prospects [1] - The 37 billion Malaysian Ringgit investment in the first half of 2025 accounts for two-thirds of Johor's total investment (56 billion Malaysian Ringgit) during the same period, significantly exceeding the total approved investment of 48.5 billion Malaysian Ringgit for the entire year of 2024 [1] Investment Facilitation Measures - At the recent JS-SEZ Joint Investment Forum held in Singapore, both governments announced several key facilitation measures aimed at accelerating cross-border flows, including a fast-track approval process for manufacturing projects in non-sensitive industries within seven working days [1] - Eligible foreign investors will be provided with multiple-entry visas valid for up to 12 months, and a Strategic Co-Investment Fund (COSIF) will be established to further enhance investment opportunities [1] Regional Economic Initiatives - Malaysia has introduced the "ASEAN Business Entities" (ABE) initiative to offer regulatory flexibility and incentives for businesses to support cross-border operations and the movement of skilled talent [2] - The official tax incentive framework for the Forest City Special Financial Zone (SFZ) has been published, offering competitive corporate tax rates ranging from 0% to 5% for eligible global business services, fintech companies, and family offices [2] Market Outlook - Despite uncertainties in the global trade environment, particularly regarding U.S. tariff policies, companies are increasingly adapting to this landscape by focusing on supply chain diversification [2] - The JS-SEZ and the broader ASEAN region are becoming a "stabilizer" and opportunity for global investors seeking to mitigate risks and pursue long-term growth, reflecting investor confidence in the economic resilience and growth potential of ASEAN [2]