SMBC’s vision to bridge cross-border collaboration and unlock growth enabled by innovation and sustainable investment in Southeast Asia.
By Atsuhide Shiojiri, President & CEO, SMBC Malaysia
The Johor-Singapore Special Economic Zone (JS-SEZ) is playing a defining role in shaping cross-border ties between Johor and Singapore and its development may mark a broader turning point for greater economic cooperation in Southeast Asia. The zone, covering 3,588 sq km, nearly five times the size of Singapore, aims to deepen cross-border integration between Malaysia and Singapore, boost bilateral trade and accelerate investment and innovation in key sectors, from green energy to digital technology.
For Sumitomo Mitsui Banking Corporation (SMBC), the JS-SEZ represents more than an economic initiative. As the only Japanese financial institution (FI) among the six leading FIs selected by Malaysia’s Ministry of Economy to support financial facilitation under JS-SEZ, it is an opportunity to advance our purpose: to build a brighter future through sustainable finance and innovation, while supporting clients as they navigate new frontiers of growth.
Revitalizing Japanese investment in Malaysia and Southeast Asia’s potential
Johor is already emerging as a magnet for investors. In the first quarter of 2025 alone, the state attracted MYR 27.4 billion in FDI, far outpacing previous years. At present, many Japanese firms have set foot and established operations in Johor. Yet large-scale Japanese investments remain relatively few, presenting an opportunity for further expansion. With its strategic location, proximity to Singapore and improving infrastructure – including the RTS Link expected around 2026, Johor is well-placed to significantly reduce cross-border travel time offering fertile ground for Japanese corporates to expand manufacturing bases, data centers and innovation hubs.
With anticipation that the JS-SEZ will serve as a vital ASEAN hub promoting industrial development and innovation, companies can leverage Singapore’s established financial ecosystem, while meeting growing funding and investment needs in Malaysia.
As observed, new entrants are steadily joining the JS-SEZ, including through mergers and acquisitions. These will contribute to an increase in cross-border capital flows – including the Malaysian ringgit, Singapore dollar, and Japanese yen – through trade finance, cash management, and risk management solutions such as interest rate and foreign exchange hedging.
Capitalizing new synergies with our expertise and global network
From financing partner to ecosystem shaper
Our commitment to Malaysia spans nearly five decades, with SMBC supporting its economic development since 1975.
Today, we go beyond traditional commercial banking, combining supply chain, Islamic, digital and sustainable finance solutions with deep cross-border expertise. As an appointed Strategic Partner Bank, we help clients unlock the JS-SEZ’s unique incentives, navigate regulatory requirements and bring its ambitions to life.