Economy of Johor

Economy of a Malaysian state

Economy of Johor

Johor Bahru Central Business District at night.

Currency| Malaysian Ringgit (RM or MYR)
Statistics
Population| 4.19 million (2024)[1]
GDP| RM 148.2 billion (2023[1])

GDP growth

| 3.4% (2022/23)

GDP per capita

| RM 41,902 (2023)[1]

Gini coefficient

| 0.404 (2021)[2]

Human Development Index

| 0.794 (2022) high[3]
Unemployment|  2.4% (2022/23)[4]

Main industries

| Services, manufacturing, agriculture and construction[5]
External
Exports| RM 314.06 billion (2023)[1]

Export goods

| Refined petroleum, integrated circuit boards and electricity and electronics products[6]
Imports| RM 249.25 billion (2022/23)[1]
Public finances

Government debt

| RM 222.39 million (2020)[7]
Revenues| RM 1.804 billion (2023/24)[8]
Expenses| RM 1.799 billion (2023/24)[8]

All values, unless otherwise stated, are in US dollars.

The state of Johor is strategically located in southern Malaysia, bordering one of the global economic powerhouses Singapore. Johor is the third-largest economy in Malaysia after Selangor and Kuala Lumpur, as well as the largest outside of the Klang Valley, with gross domestic product (GDP) valued at RM 158 billion, and the fastest economic growth among all Malaysian states in 2024.[9]

The economy is primarily driven by manufacturing and service sectors, covering almost 80% of the state GDP.[10] The state is the second largest trade contributor in Malaysia, and has the second largest share of the country's imports, after Selangor.[11]

As Malaysia's top investment destination, as well as the nation's largest data centre and transshipment hub, Johor has attracted numerous foreign direct investment (FDI) and multinational corporations, particularly in services, manufacturing, and logistics sectors.[12][13] The state's active trade and manufacturing activities also place its main port of entry, Port of Tanjung Pelepas, among the 15 busiest ports in the world. Its capital and economic centre, Johor Bahru, has been ranked the world's 20th most attractive city for businesses, second in Malaysia after Kuala Lumpur, according to Oliver Wyman.[14]

## History

[edit]

A painting by the English painter John Edmund Taylor, showing people in rowboats on the Johor River in the evening seen from Changi in Singapore, July 1879

Johor's economic history can be traced back to the early 16th century when it was part of the Malacca Sultanate. Following the fall of Malacca to the Portuguese in 1511, the Sultanate of Johor was established by Sultan Alauddin Riayat Shah II in 1528.[15] During this period, Johor became a significant trading hub due to its strategic location along the Straits of Malacca, facilitating trade between the East and the West.[16]

In 1914, Johor became a de facto British protectorate. Thereafter, large-scale agricultural activities were gradually introduced, particularly the cultivation of pepper and gambier, which were highly sought after commodities. Refugee labour from China played a crucial role in developing these plantations. The extension of the railway from the tin and rubber belt of the Malay Peninsula to Singapore in 1919 further integrated Johor into the regional economy.[17] This greatly facilitated the export of agricultural products, particularly rubber, which became a major economic driver in the early 20th century.

Following Malaysia's independence in 1957, Johor continued to diversify its economy. The state capital, Johor Bahru, emerged as a regional industrial and commercial center.[18] The state's median income was RM5,652 in 2024, making it the state with the second highest median household income after Selangor. [19] In 2024, Johor had the fastest GDP growth rate among all Malaysian states at 6.4 percent.[9]

## Sectors

[edit]

### Services and Manufacturing

[edit]

Pengerang Integrated Petroleum Complex (PIPC) is the largest petrochemical hub in Malaysia.[20]

Johor is the top investment destination in Malaysia and one of the most attractive in the region, primarily in the services and manufacturing sectors, which account for nearly 80% of the state's GDP.[21][22] It has been ranked the top state in Malaysia for six consecutive years in approved manufacturing projects valued at RM145 billion from 2013 to 2018.[23] The state attracted the highest foreign direct investment (FDI) among all Malaysian states in 2022, primarily in the manufacturing sector.[24] In 2017, RM16.8 billion came from domestic direct investment and RM5.1 billion came from foreign direct investment, with Australia, China and the United States being the top three foreign investors in manufacturing.[25] Johor is the second largest trade contributor in Malaysia, and has the second largest share of the country's imports, after Selangor.[26] The state is also Malaysia's largest data centre hub and the ninth largest in Asia.[27] As a prominent regional manufacturing hub, the state is home to major multinational corporations (MNCs) in Malaysia, like ByteDance, Nvidia, Microsoft, Micron, Saudi Aramco, Foxconn, among others.[28][29][30][31][32]

Port of Tanjung Pelepas, the 15th busiest port in the world and the largest transshipment hub in Malaysia.

The state has the largest services sector and real estate development outside the Klang Valley, with the former contributing 8.6 percent of the country's services sector's GDP in 2023.[33][34] The total industrial area in the state as of 2015 was 144 km2 (56 sq mi) or 0.75 per cent of the land in Johor.[35] The state also houses Johor Corporation (JCorp), a state-owned conglomerate involved in various business activities in the state and overseas.[36][37]

### Agriculture

[edit]

Palm oil and pineapple plantation in Rengit, Batu Pahat District.

Johor is the largest agriculture output contributor at 17.5% in Malaysia. The main agricultural sectors in the state are palm oil plantations, rubber plantations, and produce. Its palm oil plantations cover almost three-quarters of the agricultural land in the state.[38] Johor Plantation Group (JPG) is the leading corporation in the palm oil industry, which owns 55,904 hectares of land and made its debut on the Malaysian stock market in 2024.[39][40]

Johor is also the biggest fruit producer in Malaysia, with a total fruit plantation area of 414 km2 (160 sq mi) and total harvesting area of 305 km2 (118 sq mi). There are around 25,000 registered fruit farmers in Johor and the top five most grown fruits are pineapple, durian, white guava, papaya and banana.[41] In 2021, the total production is 736,136 tonnes, including 569,004 tonnes of fruits and 167,174 tonnes of vegetables.[42]

### Tourism

[edit]

Legoland Malaysia Resort, the first Legoland in Asia.

Johor has a relatively vibrant tourism industry, receiving more than 16 million foreign visitors in 2023, with the bulk of them being Singaporeans.[43] Six segments have been identified by the government to be crucial in attracting new tourists, namely ecotourism, sports tourism, medical tourism, education tourism, historical tourism and culinary tourism.[44]

Desaru, 60km away from Johor Bahru, has been named one of the world's 100 greatest places in 2021 by Time magazine, the only destination in Malaysia to make into this list.[45]

## Special Economic Zone

[edit]

### Iskandar Malaysia

[edit]

Main article: Iskandar Malaysia

Johor Bahru–Singapore RTS viaducts under construction in Johor Strait

### Johor-Singapore Special Economic Zone

[edit]

Main article: Johor-Singapore Special Economic Zone

On 11 January 2024, Malaysia's Economy Minister Rafizi Ramli and Singapore's Trade and Industry Minister Gan Kim Yong signed a Memorandum of Understanding (MoU) to work on a Johor-Singapore Special Economic Zone (JS-SEZ).[46] One goal of this cooperation is to build one-stop business investment centre, in terms of less administrative procedures for movement of goods and labour and more favourable business incentives.[47] The ongoing construction of the Johor Bahru–Singapore Rapid Transit System would also greatly benefit further interaction of the two countries.[48]

On 7 Jan 2025, Singapore Prime Minister Lawrence Wong visited Malaysia and signed an agreement with his Malaysian counterpart Anwar Ibrahim on creating the special economic zone.[49] The agreement expects 50 projects in the first five years of the establishment of the special economic zone, which would create an estimated 20,000 jobs and benefit more than 11 industries.[50][51] However, there are concerns about the lack of skilled labour and causeway congestion.[52]

### Forest City Special Financial Zone

[edit]

Forest city in Johor has been designated by the government as a Special Financial Zone, thanks to its geographical proximity to the regional economic powerhouse Singapore.[53] The government gives business-friendly incentives such as tax breaks to promote development of the local financial industry.[54]

## See also

[edit]

* Malaysia portal

* Economy of Malaysia
* Johor

## References

[edit]

1. ^ a b c d e Department of Statistics Malaysia. "Gross Domestic Product (GDP) by State, 2023". www.dosm.gov.my. Retrieved 17 August 2024.
2. ^ Malaysia Department of Statistics. "Household Income and Expenditure: Administrative Districts | OpenDOSM". open.dosm.gov.my. Retrieved 17 August 2024.
3. ^ "Malaysia Human Development Index (MHDI), 2022". dosm.gov.my. Retrieved 17 August 2024.
4. ^ Government of Malaysia. "Quarterly Principal Labour Force Statistics by State | data.gov.my". data.gov.my. Retrieved 17 August 2024.
5. ^ Hammim, Rizalman (10 September 2020). "Johor economy to contract between 3.5 and 5.5 pct in 2020 | New Straits Times". NST Online. Retrieved 17 August 2024.
6. ^ "Johor Records Total Trade Of Rm563.31 Bln To September, Remains Country's Largest Trade Contributor". BERNAMA. 11 August 2023. Retrieved 17 August 2024.
7. ^ "MB: Johor's debt with federal govt down to RM222.39m". www.malaymail.com. Retrieved 17 August 2024.
8. ^ a b Tan, Ben (23 November 2023). "Johor govt tables 2024 state Budget with RM4.2m surplus". Malay Mail. Retrieved 17 August 2024.
9. ^ a b "Johor records highest GDP growth among states in 2024 — DOSM". The Edge Malaysia. 1 July 2025. Retrieved 1 July 2025.
10. ^ Hutchinson, Francis E; Rahman, Serina (2020). Johor: abode of development?. Singapore: ISEAS, Yusof Ishak Institute. ISBN 9789814881272. Retrieved 17 August 2024.
11. ^ Bernama (26 July 2024). "5 states dominated exports in June, making up 82.9pct of total exports | New Straits Times". NST Online. Retrieved 8 February 2025.
12. ^ "Johor top state for FDI inflow with RM70.6bil in 2022". MIDA | Malaysian Investment Development Authority. Retrieved 8 February 2025.
13. ^ "Multinational firms keen to transfer operations to Johor, says MB". MIDA | Malaysian Investment Development Authority. Retrieved 8 February 2025.
14. ^ Wyman, Oliver. "The Full Ranking Of The Cities Shaping The Future". Oliver Wyman Forum. Retrieved 19 April 2025.
15. ^ "When the World Came to Southeast Asia: Malacca and the Global Economy". Association for Asian Studies. Retrieved 17 August 2024.
16. ^ McROBERTS, R.W. (1984). "An Examination of the Fall of Melaka in 1511". Journal of the Malaysian Branch of the Royal Asiatic Society. 57 (1 (246)): 26–39\. ISSN 0126-7353. JSTOR 41492970. Retrieved 17 August 2024.
17. ^ "The Making of the Causeway". biblioasia.nlb.gov.sg. Retrieved 17 August 2024.
18. ^ Seah, Hui Shan (28 May 2024). "Johor Gets Second Chance at Economic Take-off". ASEAN+3 Macroeconomic Research Office - AMRO ASIA. Retrieved 17 August 2024.
19. ^ "Malaysia's average household income increased to RM8,479 in 2022, says Stats Dept". The Star. 28 July 2023. Retrieved 15 February 2025.
20. ^ "Megastructures: Malaysia's Largest Petrochemical Hub". National Geographic - Videos, TV Shows & Photos - Middle East - English. Retrieved 8 February 2025.
21. ^ "Johor ups its game to become the next Shenzhen in order to attract investors". MIDA | Malaysian Investment Development Authority. Retrieved 8 February 2025.
22. ^ Intan Farhana Zainul (1 June 2013). "Johor, Sarawak emerge top". The Star. Retrieved 4 August 2018.
23. ^ "Why Johor? – Invest Johor". Retrieved 8 February 2025.
24. ^ "Industrial is trending in south of Malaysia". www.jll.com.sg. 28 July 2023. Retrieved 8 February 2025.
25. ^ Zazali Musa (12 March 2018). "Johor can maintain No. 1 position for manufacturing sector investments". The Star. Retrieved 10 August 2018.
26. ^ Bernama (26 July 2024). "5 states dominated exports in June, making up 82.9pct of total exports | New Straits Times". NST Online. Retrieved 8 February 2025.
27. ^ Aman, Azanis Shahila (6 May 2024). "Johor now the largest data centre market in Malaysia, driven by investments from MNCs: report | New Straits Times". NST Online. Retrieved 15 February 2025.
28. ^ "Saudi Aramco aims to make Pengerang Hub largest in Southeast Asia". F&L Asia. Retrieved 8 February 2025.
29. ^ "Tech: Memory gain for Micron Malaysia". The Edge Malaysia. Retrieved 8 February 2025.
30. ^ Caillavet, Christopher (29 January 2025). "Microsoft Buys Johor, Malaysia Data Centre Site From Crescendo". Mingtiandi. Retrieved 8 February 2025.
31. ^ Comment, Matthew Gooding (10 June 2024). "TikTok owner ByteDance to expand Malaysia data center footprint in $2.1bn AI deal". www.datacenterdynamics.com. Retrieved 8 February 2025.
32. ^ "YTL Power set to deploy and manage Nvidia's AI supercomputer in Johor". The Edge Malaysia. 19 March 2024. Retrieved 8 February 2025.
33. ^ "Services, manufacturing made up 82.6 per cent of economy in 2023". MIDA | Malaysian Investment Development Authority. Retrieved 8 February 2025.
34. ^ "Why everyone is moving to Selangor and Johor: Malaysia's real estate comeback". www.asiarealestatesummit.com. Retrieved 8 February 2025.
35. ^ "Johor 2030 (Rancangan Struktur Negeri Johor 2030 – Kajian Semula)" [Johor 2030 (Johor State Structure Plan 2030 – Review)] (PDF) (in Malay). Town and Village Planning Department of Johor. Archived from the original (PDF) on 12 January 2018. Retrieved 10 August 2018.
36. ^ "Home". Johor Corporation. Retrieved 10 August 2018.
37. ^ Mohd Farhaan Shah (2 August 2018). "JCorp expected to bring RM18bil in investment over next five years". The Star. Retrieved 10 August 2018.
38. ^ Ahmad Kushairi Din (2017). "Malaysian Oil Palm Industry Performance 2016 and Prospects for 2017" (PDF). Malaysian Palm Oil Board. Archived from the original (PDF) on 10 August 2018. Retrieved 30 March 2018.
39. ^ "Johor Plantations Group jumps 7% in Malaysia's largest IPO debut since 2022". The Business Times. 9 July 2024. Retrieved 17 August 2024.
40. ^ "Johor Plantations rises 10% in biggest Malaysian debut in 2 years". Nikkei Asia. Retrieved 17 August 2024.
41. ^ "Maintaining Johor's position as Malaysia's fruit basket". The Star. Retrieved 17 August 2024.
42. ^ "Aiming to remain major fruit and veg producer". The Star. Retrieved 17 August 2024.
43. ^ "More than 16 million foreign tourists visited Johor in 2023, says Tourism Johor director". The Straits Times. 25 February 2024. Retrieved 17 August 2024.
44. ^ Rahman, Serina; Ching, Goh Hong (23 November 2020). 7\. Tourism in Johor and Its Potential. ISEAS Publishing. pp. 183–202\. doi:10.1355/9789814881289-016. ISBN 978-981-4881-28-9.
45. ^ Loh, Lainey. "Malaysia's Desaru Coast Named One Of The World's Greatest Places In 2021". Tatler Asia. Retrieved 6 June 2025.
46. ^ "MALAYSIA AND SINGAPORE STRENGTHENS ECONOMIC CONNECTIVITY WITH JOHOR-SINGAPORE SPECIAL ECONOMIC ZONE" (PDF). Ministry of Trade and Industry Singapore. Retrieved 17 August 2024.
47. ^ "Singapore, Malaysia Plan Border SEZ in Johor State". ASEAN Business News. 18 January 2024. Retrieved 17 August 2024.
48. ^ Anand, Ram; Chanjaroen, Chanyaporn (21 August 2024). "Singapore, Malaysia Want to Build Their Own Shenzhen-Style Mega-Hub". Bloomberg.com. Retrieved 22 August 2024.
49. ^ Azhar, Danial (7 January 2025). "Malaysia, Singapore announce deal on Johor economic zone". Reuters. Retrieved 8 January 2025.
50. ^ "Malaysia and Singapore agree to launch a special economic zone in a rare move to attract investors". AP News. 7 January 2025. Retrieved 8 January 2025.
51. ^ Weizhen, Tan (9 January 2025). "From banks to tech: Potential Singapore winners from the Johor-Singapore SEZ". The Business Times. Retrieved 10 January 2025.
52. ^ Metteo, Rebecca. "Lack of skilled labour, Causeway congestion among concerns of local firms moving to Johor-Singapore SEZ". CNA. Retrieved 10 January 2025.
53. ^ "Malaysia to launch special financial zone in Forest City to woo investments, stimulate economic growth". The Business Times. 19 September 2024. Retrieved 25 September 2024.
54. ^ "Forest City SFZ: A catalyst for Johor's economic growth and connectivity". www.malaymail.com. Retrieved 25 September 2024.

## Further reading

[edit]

* Francis E Hutchinson, Serina Rahman, Johor: abode of development?  (ISEAS, Yusof Ishak Institute, 2020)

* v
* t
* e

State of Johor

* Capital city: Johor Bahru
* Administrative capital: Iskandar Puteri
* Royal town: Bandar Maharani (Muar)

General topics|

| Topics|

* Elections
* Government
* Executive
* Sultan
* Menteri Besar
* Legislative
* Johoreans
* Monarchy
* Monarchs
* Geography
* Economy
* Symbols
* Anthem
* Flag and coat of arms

|

Administrative
divisions|

* 10 Districts and 16 Local governments (3 Cites, 7 Municipals, 6 Districts)
* Special zone: (Iskandar Malaysia, RAPID Pengerang)

City councils
(Majlis Bandaraya)|

| Johor Bahru
(part of Johor Bahru district)|

* City Centre
* Bakar Batu
* Century
* Danga Bay
* Larkin
* Majidee
* Melodies
* Nong Chik
* Pasir Pelangi
* Stulang
* Suria
* Tebrau
* Dato' Onn
* Daya
* Johor Jaya
* Kangkar Tebrau
* Molek
* Mount Austin
* Pandan
* Setia Indah
* Tampoi
* Bandar Baru UDA
* Damansara Aliff
* Kempas
* Setia Tropika
* Plentong
* Permas Jaya
* Ulu Tiram

|

Iskandar Puteri
(part of Johor Bahru district)|

* City Centre
* Kota Iskandar
* Ledang Heights
* Nusa Bayu
* Medini
* Bukit Indah
* Perling
* Skudai
* Lima Kedai
* Mutiara Rini
* TUTA
* Universiti
* Pulai
* Kangkar Pulai
* Bandar Baru Kangkar Pulai
* Pulai Hijauan
* Pulai Indah
* Pulai Mutiara
* Gelang Patah
* Forest City
* Pendas
* Tanjung Kupang
* Tanjung Pelepas

Pasir Gudang
(part of Johor Bahru district)|

* Pasir Gudang
* Tanjung Langsat
* Masai
* Kong Kong
* Kota Masai
* Seri Alam
* Taman Scientex

Municipal councils
(Majlis Perbandaran)|

| Muar
(Muar district)|

* Bandar Maharani (City centre)
* Bukit Treh
* Parit Bakar
* Parit Sakai
* Sungai Abong
* Bakri
* Bukit Bakri
* Bukit Naning
* Parit Jawa
* Parit Unas
* Bukit Pasir
* Pagoh
* Bandar Universiti Pagoh
* Bukit Kepong
* Lenga
* Panchor
* Sungai Balang

|

Batu Pahat
(Batu Pahat district)|

* Bandar Penggaram (City centre)
* Minyak Beku
* Segenting
* Taman Bukit Pasir
* Taman Flora Utama
* Taman Setia Jaya 2
* Tongkang Pechah
* Rengit
* Parit Raja
* Semerah
* Senggarang
* Sri Gading
* Pura Kencana

Kluang
(Kluang district)|

* Kluang
* Taman Sri Lambak
* Mengkibol
* Paloh
* Chamek
* Kahang

Kulai
(Kulai district)|

* Kulai
* Bandar Indahpura
* Bandar Putra Kulai
* Senai
* FELDA Taib Andak
* Saleng
* Seelong
* Senai International Airport
* Kelapa Sawit
* Bukit Batu
* Sedenak
* Ulu Choh

Segamat
(Segamat district)|

* Segamat
* Genuang
* Kampung Tengah
* Batu Anam
* Buloh Kasap
* Gemas Baru
* Jementah

Pengerang
(Kota Tinggi district)|

* Pengerang
* Tanjung Pengelih
* Sungai Rengit
* Teluk Ramunia
* Pasir Gogok
* Bandar Penawar
* Bandar Mas
* Desaru
* Tanjung Balau
* Johor Lama
* Teluk Sengat

Pontian|

* Pontian Kechil
* Kampung Kayu Ara Pasong
* Pekan Nanas
* Ayer Baloi
* Benut
* Kukup

District councils
(Majlis Daerah)|

| Kota Tinggi|

* Kota Tinggi
* Lombong
* Bandar Tenggara
* Sedili
* FELDA Lok Heng
* FELDA Waha

|

Mersing|

* Mersing
* Air Papan
* Tenggaroh
* Jemaluang
* Endau

Tangkak|

* Tangkak
* Sagil
* Sungai Mati
* Bukit Kangkar
* Sengkang
* Bukit Gambir
* Kesang
* Parit Bunga
* Tanjung Agas

Labis
(Segamat district)|

* Labis
* Air Panas
* Sungai Karas
* Tenang
* Bekok
* Chaah

Yong Peng
(Batu Pahat district)|

* Yong Peng
* Ayer Hitam
* Parit Sulong
* Sri Medan
* Parit Yaani

Simpang Renggam
(Kluang district)|

* Simpang Renggam
* Machap
* Layang-Layang
* Renggam

* Commons
* Wikisource
* Category

* v
* t
* e

Economy of Malaysia

History|

* Dawn Raid (Malaysia)
* 1997 Asian financial crisis
* Tiger Cub Economies
* Impact of the COVID-19 pandemic

Currency|

* Central Bank of Malaysia
* Malaysian ringgit

Banking and Finance|

* Kuala Lumpur Stock Exchange
* Islamic Banking
* Payments Network Malaysia (PayNet)
* Overnight Policy Rate

Government agencies|

* Employees Provident Fund
* Energy Commission of Malaysia
* Federal Land Development Authority
* Khazanah Nasional
* Permodalan Nasional Berhad
* Malaysian Industrial Development Authority

Corridors and Regions|

* East Coast Economic Region (ECER)
* Forest City Special Financial Zone
* Iskandar Malaysia (IM)
* Johor-Singapore Special Economic Zone (JS-SEZ)
* Labuan International Business and Financial Centre (Labuan IBFC)
* Malaysia International Islamic Financial Centre (Kuala Lumpur)
* Malaysia Vision Valley (MVV)
* Northern Corridor Economic Region (NCER)
* Port Klang Free Zone (PKFZ)
* Sabah Development Corridor (SDC)
* Sarawak Corridor of Renewable Energy (SCORE)
* South Perak Region (WPS)

States|

* Johor
* Penang
* Sarawak

Economic blueprint|

* Vision 2020
* Shared Prosperity Vision 2030
* National Transformation 2050 (defunct)

Economic co-operation|

* BIMP-EAGA
* Indonesia–Malaysia–Singapore Growth Triangle
* Indonesia–Malaysia–Thailand Growth Triangle

Policies and Programs|

* Malaysian New Economic Policy (NEP)
* National Development Policy (NDP)
* New Economic Model (NEM)
* Government Transformation Programme (GTP)
* Economic Transformation Programme (ETP)

Agreements|

* Malaysia–European Union Free Trade Agreement
* Malaysia–New Zealand Free Trade Agreement
* Malaysia–United States Free Trade Agreement
* Regional Comprehensive Economic Partnership (RCEP)
* Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

Industries|

* Ports
* Transport
* Tourism
* Postal
* Agriculture
* Palm oil production
* Automotive

Other topics|

* List of Malaysian states by GDP
* List of Malaysian states by household income
* List of Malaysian states by mean wage and median wage
* List of Malaysian states and municipalities by exports
* Poverty in Malaysia
* Goods and services tax in Malaysia
* Bamboo network
* Subsidy reform in Malaysia
* Tax incentives in Malaysia

* Category

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