For Singapore-based urban farming firm Archisen, expansion at home had reached its limits. Constrained by land scarcity and high production costs, the company turned instead to the Johor–Singapore Special Economic Zone (JS-SEZ), a cross-border experiment that is quietly reshaping regional industrial strategy.
Launched a year ago by Malaysian Prime Minister Anwar Ibrahim and Singapore Prime Minister Lawrence Wong, the JS-SEZ spans 3,571 square kilometres, nearly five times the size of Singapore and targets 11 priority sectors, including food security, aerospace, pharmaceuticals and electronics. It is the world’s first special economic zone jointly administered by two countries.
Archisen is among the earliest entrants into Southern Agropolis, a flagship agrifood hub on the Johor side that broke ground earlier this month. The project, expected to cost US$123 million, aims to supply up to 10,000 tonnes of fresh produce annually. Chief executive Vincent Wei described the zone as offering what Singapore cannot: available land, lower operating costs, access to skilled labour, and proximity to both Singaporean and Malaysian markets.
Yet early success has not been without friction. Wei cited uncertainty around tax incentives and the need to navigate regulatory and cultural differences, highlighting the learning curve faced by firms operating across two administrative systems.
Despite these challenges, investment momentum has been strong. Singaporean companies have committed more than S$5.5 billion to Johor since the SEZ agreement was signed in 2024, according to Singapore’s Deputy Prime Minister Gan Kim Yong. Johor has since emerged as Malaysia’s top destination for capital investment, with approved investments reaching US$21.6 billion in the first three quarters of 2025.
Economists see the zone as exceeding initial expectations but warn that long-term success will hinge on deeper regulatory harmonisation, smoother customs procedures, and improved talent mobility. Infrastructure bottlenecks, particularly congestion at the Johor–Singapore Causeway remain a persistent constraint, though the upcoming Rapid Transit System (RTS) Link is expected to ease cross-border flows later this year.
For now, the JS-SEZ stands as a test case: not just of economic integration, but of whether coordination between two sovereign systems can evolve into something closer to functional convergence.