BUSINESS

Johor Set To Match Last Year’s GDP Of 6.4 Pct This Year - Hasni

26/11/2025 06:39 PM

By Abdul Hamid A Rahman and Mikhail Raj Abdullah

KUALA LUMPUR, Nov 26 (Bernama) -- Johor expects to maintain its strong economic trajectory this year, with a gross domestic product (GDP) growth of 6.4 per cent -- matching last year’s performance -- while growth for 2026 is anticipated to range between 4.8 and 6.8 per cent.

Johor State Economic and Investment Advisor Datuk Seri Hasni Mohammad said that despite global uncertainties, the state is confident of repeating its commendable performance next year, thanks to economic benefits accruing from the Johor–Singapore Special Economic Zone (JS-SEZ).

JS-SEZ has attracted investments that have drawn foreign companies and data centres, strengthening the industrial ecosystem, creating jobs, boosting salaries and increasing overall commercial activity

“For 2025, we believe we can revise our GDP estimate to 6.4 per cent again, from the initial projection of 4.8 per cent. For 2026, the state expects growth to be slightly lower, within the range of 4.8- 6.8 per cent,” he said in an interview on Bernama TV’s “The Nation” programme, hosted by Jessy Chahal.

He added that Johor’s economic performance typically moves in tandem with national GDP trends, but current initiatives and investment momentum might push the state to outperform the national average.

Hasni elaborated that JS-SEZ continues to be a major catalyst for investments, attracting strong interest from domestic and foreign companies.

Since the signing of the JS-SEZ framework earlier this year, the Iskandar Malaysia Facilitation Centre received more than 900 enquiries, including 122 from Singapore, while 44 companies have expressed concrete investment interest as of October 2025.

“These investments will create employment, raise salary levels and strengthen Johor’s industrial ecosystem, especially in specialised sectors such as data centres and artificial intelligence,” he said.

He said investments from Singaporean firms have directly benefited Johoreans, as companies setting up operations in the state created employment opportunities for the locals and increased state revenue.

At the same time, Hasni dismissed perceptions that the JS-SEZ would favour Singaporean companies at the expense of Malaysian businesses.

“More than half of the Singapore firms engaged by Enterprise Singapore were encouraged to invest in Johor, which directly benefits the state through job creation, higher income opportunities and increased revenue,” he said.

Enterprise Singapore is a statutory board under the Singapore government’s Ministry of Trade and Industry in charge of fostering enterprise development.

“When they invest in Johor, they create employment and contribute to the state’s economy, so it is inaccurate to say Singapore gains more than us,” he said.

He said that to support rising commercial activity and future mobility needs, Johor is undertaking major road upgrades, including widening key stretches of the North–South Highway leading into Johor Bahru from four lanes to six lanes.

“These upgrades are essential to ease congestion and ensure smooth connectivity as Johor’s economy expands.

“Public transport improvements will take time, so enhancing highway capacity remains critical for supporting both current and future economic activity, and similar improvements are also being carried out toward the eastern region of the state,” he said. 

-- BERNAMA

 


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