JOHOR-SINGAPORE SPECIAL ECONOMIC ZONE (JSSEZ) CATALYST FOR DATA CENTRE SUPPLY CHAIN GROWTH

JOHOR BAHRU, October 27, 2024 – Data centre operators require a predictable and reliable supply chain to protect their financial interests and reputation. As operators venture into new markets, the demand can translate into opportunities for local suppliers to expand and collaborate with one another.

To date, Johor has proven to be an attractive location for tech giants. With over 50 data centres in this state, Johor has turned into one of the biggest data centre hubs in Malaysia.

Minister of Digital, Gobind Singh Deo said, “I am confident that more data centres will be built here, thanks to the establishment of the Johor-Singapore Special Economic Zone. I believe this special economic zone will spur businesses, including small- and medium-enterprises (SMEs), especially those in the data centre supply chain.

“The creation of such an economic zone, and the bustling data centre sphere, will naturally encourage suppliers – domestic and international – to expand their businesses here. Such an effort will naturally contribute to the state’s dynamic economic landscape, and that of the country.”

During the tabling Budget 2025, Prime Minister YAB Dato’ Seri Anwar Ibrahim, had said that special incentives for the Johor-Singapore Special Economic Zone will be revealed later this year. He added that these incentives can attract even more quality investments and offer high-value jobs.

Speaking at the GDS International Data Centre Supply Chain Ecosystem Summit this morning, Gobind added that the best way for supply chain players in newer markets, including Malaysia, to cope with the increased in demand for data centres is to collaborate and strike up strategic partnerships. This is especially true for local suppliers who can leverage the expertise of foreign companies, while strengthening the talents within their own organisations.

He also said that the Ministry of Digital will continue to assist in the building of infrastructure, create a digitally-resilient environment, and help develop talent capable of managing the complex needs of data, artificial intelligence (AI), and related ecosystems.

“The Ministry of Digital fully supports the efforts by the Johor State Government, industry and other stakeholders in building a stronger, more connected digital ecosystem. This summit is a testament to the power of collaboration and the importance of aligning industry initiatives with national objectives. Together, we can build a future where technology drives growth, innovation, and inclusivity for all,” he said.

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Issued by:

Corporate Communications Division

Ministry of Digital, Malaysia