Johor, Malaysia’s second-largest state and among the most developed, is known as the Southern Gateway of Malaysia due to its proximity to Singapore. Its economy was one of the fastest growing in Malaysia with a median real GDP growth of 5.8% y-o-y between 2015 – 2019. Its intrinsic strength is underpinned by its large, resilient and diversified economy, strong fiscal management and low debt.
Johor is Malaysia’s largest manufacturing hub and is among the country’s top three favourite investment destinations. This is not surprising because sustained investment in the logistics and manufacturing sectors have continued to boost its potential as an alternative to Singapore. Meanwhile, the revival of large infrastructure projects such as the Kuala Lumpur-Singapore high-speed (HSR), Johor Bahru–Singapore Rapid Transit System (RTS) and Bandar Malaysia are positive developments for the state.