OCBC Unveils Multi-Billion Dollar Johor Commitment
Billions of dollars have been committed by OCBC to the special economic zone between Singapore and Malaysian state Johor with more to come by the end of 2025.
OCBC has committed more than 11 billion Malaysian ringgits ($2.6 billion) in financing to businesses in the southern state of Johor since the start of 2024, according to a statement, as part of broader plans to support the development of the Johor-Singapore Special Economic Zone (JS-SEZ).
By the end of 2025, the bank expects to provide at least another 3 billion ringgits in financing for investments into various sectors including real estate, oil and gas, manufacturing and data centers.
One-Group Approach
According to OCBC, it is taking a one-group approach to supporting JS-SEZ, leveraging OCBC Bank, insurance subsidiary Great Eastern Holdings, private wealth arm Bank of Singapore as well as as its leasing and wealth management capabilities. The latest announcement was made during a courtesy visit to the official residence of Johor chief minister Onn Hafiz bin Ghazi.
«We have a long history in Johor dating more than a hundred years. OCBC Malaysia’s first branch in Johor traces its history to 1917, and there are now eight branches in the state, out of 38 across Malaysia,» commented OCBC group CEO Helen Wong.
Economic Ambitions
The governments of Singapore and Malaysia inked an agreement in January outlining their ambitions to take advantage of the synergies in the JS-SEZ including their geographic proximity and complementary economies. Various incentives, including attractive tax rates, were introduced with a focus on development in areas like manufacturing, electronics, semiconductors, aerospace, healthcare and tech services, such as artificial intelligence.
«Our collaborative efforts in the past with the Menteri Besar of Johor, and key stakeholders such as the Iskandar Regional Development Authority (IRDA), Malaysian Investment Development Authority (MIDA) and Invest Johor for the JS[1]SEZ Trade & Investment Mission, have been fruitful,» said Tan Chor Sen, CEO of OCBC Bank (Malaysia) Berhad.
«On behalf of the Johor State Government, I express my deepest appreciation to the OCBC Group for its strong and unwavering commitment to the JS-SEZ. We welcome this partnership and look forward to working closely with OCBC to unlock Johor’s full potential as ASEAN’s next economic powerhouse,» added Onn Hafiz.
