Special economic zones (SEZs) are becoming increasingly common, with 140 countries around the globe utilizing this framework to boost their economies. However, a significant portion of these SEZs fail to meet their ambitious mandates. The path to success is precariously narrow, often derailed by just one or two missteps. Yet, in Johor, Malaysia, there is renewed optimism, driven by the current Agong, the Sultan of Johor, who is advocating for a top-down approach to SEZ development.
In previous years, political hurdles have stood in the way of Johor's SEZ aspirations. Now appears to be an opportune moment as political conditions align more favorably. The Johor Sultan's influence offers a unique push that may help overcome past obstacles, setting the stage for potential success in the region's economic endeavors.
Thilan Wickramasinghe, head of research in Singapore and regional head of financials at Maybank Investment Banking Group, alongside Serina Rahman, a lecturer at the department of Southeast Asian Studies at the National University of Singapore, delve into this topic on the latest episode of the Deep Dive podcast. Their conversation explores the intricacies and challenges of establishing successful SEZs in Johor.
The experts emphasize that while the top-down approach can be advantageous, success remains contingent on careful implementation and management. SEZs can falter if even a few critical components go awry, underscoring the importance of strategic planning and execution.
Listeners can gain insights from Wickramasinghe and Rahman's discussion on Deep Dive, which is accessible every Friday. The podcast can be found on Apple, Spotify, and the Mediacorp website. For those wishing to reach out to the team, they can be contacted via email at cnapodcasts@mediacorp.com.sg.
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