For Singapore businesses, 2025 is the time to look outward. The Johor-Singapore Special Economic Zone is opening up new regional opportunities, while government grants such as the MRA and EDG provide financial support to lower risks and build capacity. Together, these initiatives give local companies the tools they need to expand confidently into new markets.
The Johor-Singapore Special Economic Zone (JS-SEZ) is a Game Changer
The Johor-Singapore Special Economic Zone is a big new opportunity for business expansion. Malaysia and Singapore are collaborating on the JS-SEZ to strengthen economic connectivity between Johor and Singapore. This started in January 2024 and creates great advantages for growing businesses. Learn more about the JS-SEZ promise and challenges here.
The JS-SEZ offers a gateway to cross-border opportunities and is supported by transformative infrastructure developments, including the upcoming Rapid Transit System (RTS) Link between Johor Bahru and Singapore, which is scheduled for completion in December 2026. This link will provide faster and more reliable connectivity for both talent and business.
For companies, the JS-SEZ provides a unique platform to access two complementary markets at once. Singapore offers a global financial and innovation hub, while Johor provides a rapidly developing industrial base.
Targeted sectors include
- Electronics
- Semiconductors
- Automotive
- Chemicals & Materials
- Machinery & Equipment
The JS-SEZ provides your expanding business an environment that helps accelerate your growth, reduces operational friction, and enables seamless cross-border operations. For forward-looking businesses, the JS-SEZ provides a strategic opportunity to expand and thrive in the region.
Strategic Advantages for Singaporean Businesses
Singaporean firms are uniquely positioned to thrive in the JS-SEZ. Anchored by Singapore’s reputation for compliance, governance, and global trust, companies can leverage Johor’s industrial strengths while maintaining credibility with international partners. The dual-market presence offers flexibility: advanced functions such as R&D and finance can remain in Singapore, while scaling and production activities benefit from Johor’s cost base.
What the JS-SEZ Offers You:
- Easy Movement: Moving goods and people between Singapore and Johor is now simpler, making it easier to run operations across both places.
- Lower Costs: You can access Johor’s lower costs for rent, manufacturing, and workers while keeping Singapore’s business advantages.
- Significant Investment: The JS-SEZ has already attracted substantial investment from major financial institutions and corporations across multiple sectors including real estate, energy, manufacturing, and technology infrastructure.
Government Supported Financing Options
Expanding into new markets, even with the advantages of the JS-SEZ, often involves significant upfront costs. Your business may need to invest in setting up operations across borders.
For many SMEs, these costs can feel like a major hurdle to growth. Government-backed grants and support schemes can make a difference. These initiatives create a smoother pathway for your businesses to tap into opportunities in Johor while maintaining a strong base in Singapore’s trusted business environment.
Market Readiness Assistance (MRA) Grant
From now to 31 March 2026, the MRA Grant is Singapore’s main funding program for going international. The MRA Grant supports SMEs expanding into international markets by covering costs like marketing, business development, and market setup. Find out more about Enterprise Singapore’s financial support programs.
- Market Promotion & Branding
- Cap: S$20,000 per market
- Covers: Marketing campaigns, advertising, promotional materials, brand development, digital marketing, content creation
- Market Setup & Business Development
- Cap: S$50,000 per market
- Covers: Market research, feasibility studies, business development activities, relationship building, local partnerships, market entry strategies
- Market Access & Participation
- Cap: S$30,000 per market
- Covers: Trade fair participation, business matching events, certification costs, compliance requirements, overseas office setup, e-commerce platform development
Total Combined Cap: S$100,000 per market
Enterprise Development Grant (EDG)
The EDG helps businesses build the skills needed for successful expansion. It pays up to 50% of costs for projects that improve your core abilities, market access, and innovation.
What EDG Helps With:
- Upgrading technology for international standards
- Going digital for global operations
- Improving processes and automation for growth
- Innovation projects that give you advantages
- Connecting systems for multiple markets
From April 1, 2023 to March 31, 2026, projects focused on sustainability initiatives receive enhanced funding support of up to 70%!
Who Can Apply: Your company must be registered in Singapore with at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership.
Other Helpful Grants
Productivity Solutions Grant (PSG): Helps businesses adopt digital tools for running multiple markets efficiently.
Double Deduction for Internationalization (DDI): Gives tax breaks for overseas market development costs.
Industry-Specific Grants: Special funding for technology, logistics, finance, and healthcare companies with expansion plans.
You can explore all available government grants through the official Singapore grants portal. Beyond grants, managing cash flow during expansion is crucial – read our complete guide on business financing and cash flow management to ensure your expansion stays financially healthy.
What’s Coming Next
The draft agreement for the Johor-Singapore Special Economic Zone (JS-SEZ) is in its final stages of review and is expected to be concluded by December, which means more benefits may come soon. Singapore keeps improving its regional position through trade agreements, creating more expansion opportunities.
Future developments focus on digital economy opportunities, e-commerce expansion, and technology-driven regional connections.
Getting the Most Out of These Incentives
Consider Professional Advisory Support
Many successful companies engage consultants with expertise in both grant applications and regional market dynamics. The investment in professional guidance often delivers strong returns through improved application quality and strategic grant utilisation.
Singapore’s expansion grants reduce financial risks while supporting long-term regional growth. Think of grants as part of a bigger plan to build lasting regional operations with Singapore as your main hub.
With grant caps extended until 2026 and the JS-SEZ framework rolling out, now is the ideal time to plan your expansion. Our experienced team at Verti will assist with the applications so you can start building your regional presence. Reach out to us at contactus@verti.sg or +65 6909 5691.
All information accurate as of 18 September 2025