Economy of Johore Bahru

As one of the three main urban centres on the peninsular Malaysia (Kuala Lumpur and Penang being the other two), Johor Bahru is an important industrial, logistical and commercial centre. Its major industries include electronics, resource and petrochemical refinery and shipbuilding.

Johor Bahru is often thought of as Singapore's hinterland, similar to what Shenzhen is to Hong Kong. The presence of Singapore-owned companies and tourists are significant. Johor Bahru's many shopping complexes cater to tourists from Singapore who visit the city for shopping and entertainment, taking advantage of the stronger Singapore dollar. As such, Johor Bahru's retail scene is highly developed for a city of its size. The main shopping districts are located within Johor Bahru city, with a number of large shopping malls located in the suburbs.

The heavy industrial areas are Pasir Gudang and Tanjung Langsat, located east of the metropolitan area. They contain clusters of refineries, chemical processing plants, and shipbuilding factories. Light to medium industrial areas are mainly located north and north-west of the metropolitan area in Tebrau, Tampoi, Senai, Skudai and Kulai.
Johor Bahru enjoys a close economic relationship with Singapore. A large number of residents in Johor Bahru work in Singapore due to higher salaries for the same jobs in Malaysia, partially because of the stronger Singapore Dollar (roughly 1 Singapore Dollar to 2.35 Malaysian Ringgit as of Oct 2008). For the same reason, many Singaporeans visit Johor Bahru for shopping, entertainment and dining, or live there. Many Singaporeans own property, businesses and factories in Johor Bahru.

It is estimated that 300,000 Malaysians work in the republic and as many as 150,000 commute daily to work in Singapore. The daily severe traffic jams at the Woodlands and Tuas Immigration Checkpoints reflects the sheer volume of people working in the republic as well as the large number of Singaporeans entering Johor Bahru.

Under the Iskandar Development Region masterplan, Johor Bahru is expected to grow to a large urban area of over 3 million residents by 2025, second in Malaysia only to the Klang Valley. The growth is also expected to spill over into the neighbouring districts of Pontian and Kota Tinggi, creating an urban area that would be even larger than that envisaged in the masterplan, possibly over five times the size of Singapore.

0 comments: