Johor

Johor exists because Singapore exists—and because the narrow Strait separating them created a labor arbitrage that 300,000 Malaysians navigate daily. Malaysia's southernmost state (3.78 million people) emerged as a geographic appendage to Singapore's economy: wages three times higher across the causeway pull workers through hours-long immigration queues while housing costs one-third cheaper attract Singaporean property investors. The January 2024 Johor-Singapore Special Economic Zone (JS-SEZ) MOU attempts to formalize this symbiosis: covering 3,500 km² (five times Singapore's area), the zone promises passport-free travel, 100,000 new jobs, and $26 billion annual economic boost. The RTS Link (scheduled 2027) will move 10,000 passengers per hour. Forest City's Special Financial Zone offers 0-5% corporate tax rates, attempting to replicate Shenzhen-Hong Kong dynamics. In 2024, Johor topped Malaysia's GDP growth rankings for the first time, signaling the state's emergence from KL's shadow. Yet path-dependence created dependency: Iskandar Malaysia's earlier mega-projects attracted Chinese investment that collapsed with property developer Evergrande. The Sultan of Johor's constitutional role—unique among Malaysian monarchs—adds political complexity. By 2026, whether JS-SEZ creates genuine integration or becomes another false start depends on bureaucratic execution and Singapore's willingness to share prosperity.