BEYOND INCENTIVES: WHAT INVESTORS ARE WATCHING
Economists caution that incentives alone will not determine whether the JS-SEZ becomes a lasting second base for Singapore firms.
UOB executive director and head of research Suan Teck Kin said businesses will look closely at factors such as policy continuity, political stability, labour supply and access to resources like electricity and water.
“These are all very important factors when businesses think about investing in a location,” he told CNA’s Singapore Tonight, noting that such decisions involve long-term capital commitments rather than short-term cost-cutting.
Looking ahead, Mr Suan said high-tech industries linked to artificial intelligence and Malaysia’s established electrical and electronics sector are likely to see further growth, alongside data centres.
The country’s role in the “China plus one” strategy – where companies add at least one more country to their manufacturing operations to avoid solely relying on China – places it in a favourable position to support global markets, particularly the US.
Experts add that maintaining business certainty and following through on growth commitments will be key to sustaining investor confidence in the JS-SEZ.
Source: CNA
