JOHOR BAHARU, Malaysia – Johor, Malaysia is outpacing both Singapore and the rest of Malaysia in economic growth, fueled by significant investment spurred by the Johor-Singapore Special Economic Zone (JS-SEZ), according to a new report by DBS.
The southern Malaysian state accounted for 30% of all investments in Malaysia during the first half of 2025, with foreign investment comprising approximately 61% of approvals within the JS-SEZ during that same period. A key driver of this growth is a boom in data centre investments,with companies like Princeton Digital (backed by Warburg Pincus),Nvidia,and Microsoft establishing facilities in the region. Princeton Digital launched a US$1.5 billion (S$1.9 billion) Johor data centre in 2024.
This surge in investment has translated into significant construction activity, ranking Johor second among all Malaysian states with 18% of national construction activity in the first half of 2025.The non-residential segment,especially data centres,is a key force behind this expansion. DBS’s report highlights that Malaysia’s non-residential construction work is now primarily driven by Johor, “underscoring Johor’s importance in Malaysia’s ongoing development to high-income nation status,” as stated by Mr. Chua, whose name was cited in the report.
