A New Visa Initiative Could Attract Foreign Skilled Workers and Support the Growth of the JS-SEZ
Maybank has pointed out that the introduction of an SEZ visa could play a crucial role in alleviating the labour shortages faced by businesses in the Johor-Singapore Special Economic Zone (JS-SEZ). According to the bank’s latest report, titled “Johor-Singapore SEZ: Tracking the Progress,” the shortage of skilled workers has become a significant challenge for firms operating in the zone.
A survey conducted by the Singapore Business Federation in 2024 revealed that nearly 60% of Singaporean businesses in Johor are struggling to find the skilled technical workers they need. This is largely due to issues with employment passes and the insufficient availability of local talent. Moreover, many workers in Johor prefer to seek employment opportunities in Singapore, where wages are higher, further exacerbating the shortage. The Malaysian government’s freeze on foreign worker employment has compounded this issue, making it even harder for businesses to hire expatriates.
Maybank has proposed the introduction of an SEZ visa to attract foreign skilled workers, particularly those with expertise in areas where local talent is scarce. The visa would offer favourable conditions, such as a “streamlined and fast-tracked” application process, to encourage workers to relocate to Johor. The bank also suggested that immigration passes for key personnel, such as senior managers and technicians, be fast-tracked, enabling them to travel smoothly between the SEZ and their companies’ headquarters in Singapore.
To tackle the manpower issue in the long term, the JS-SEZ will focus on training local workers, offering competitive salaries, and enhancing immigration programmes like Malaysia’s DE Rantau Nomad Pass, which is aimed at remote workers in the high-tech sector.
In addition to these measures, the Johor Talent Development Council, established in November 2024, is set to become a hub for education and training, ensuring that local businesses are equipped with the skills needed to thrive in the evolving job market. To support these efforts, Singapore and Malaysia have already signed agreements to strengthen cooperation in technical and vocational education and training (TVET), aligning educational programmes with industry needs.
For foreign investors, the introduction of a unique Malaysia My Second Home (MM2H) visa offers a new residency option for those wishing to live and work in the SEZ. The MM2H visa has lower deposit requirements and one-off fees, although it does not permit holders to work in Malaysia, limiting its potential impact on the labour market.
In summary, Maybank’s report highlights the critical role that an SEZ visa could play in easing labour shortages in the JS-SEZ, fostering a more robust workforce, and enabling businesses to meet growing demands.
