From cheesecakes to quantum computing – panellists explore opportunities in the Johor-Singapore SEZ
The panel is organised by The Business Times, and is part of DBS’ Market Outlook 2025 – Beyond New Frontiers event.
THE Johor-Singapore Special Economic Zone (JS-SEZ) is expected to deliver key infrastructure upgrades to the Malaysian state, including new data centres, expanded office and logistics spaces, and increased renewable energy capacity, panellists said during a discussion at a DBS event on Wednesday (Dec 4).
Although the specifics of the agreement are still being finalised, the JS-SEZ could also enable Singapore businesses to lower operational costs by relocating part or all of their activities to Johor, they noted.
The panel, organised by The Business Times and titled “Seizing opportunities in Asia’s new growth frontiers”, explored how the JS-SEZ could unlock new opportunities for Singapore’s small and medium-sized enterprises (SMEs).
Discussions also delved into the potential of generative artificial intelligence (AI) to drive growth and innovation for SMEs, as well as the implications of US president-elect Donald Trump’s second term.
Panellists included Koh Kar Siong, group head of corporate and SME banking, institutional banking group, DBS; Saurabh Dhingra, Asean financial services strategy leader at EY-Parthenon; and Daniel Tay, founder and chief executive of cake manufacturer Foodgnostic.
The session, which was part of DBS’ Market Outlook 2025 – Beyond New Frontiers event, was moderated by Anita Gabriel, deputy news editor (regional) at BT.
Asked whether he plans to move part of his operations to the JS-SEZ once it is established, Tay confirmed his intention.
“One thing about Singapore: cost is really, really high. Land cost is high, rent is high and the currency is (strong, making it) extremely difficult for me to export our cheesecakes overseas,” said Tay.
“I think with this SEZ, we’re going to be the first one to step in,” Tay quipped. “We’re already looking for space to manufacture our goods and probably move out of Singapore, because (in) Singapore, it’s really, really hard.”
Concurring with Tay, Dhingra highlighted the rising discretionary costs over the past four years, which have made business operations “very difficult”.
He said these challenges could be better managed with the JS-SEZ in place. Dhingra also noted that the JS-SEZ offers an opportunity for Singapore and Malaysia to collaborate on and invest in emerging technologies, such as AI and quantum computing.
Generative AI support
Indeed, generative AI technologies will definitely help to lift productivity levels, said Koh. DBS, for instance, has been leveraging AI tools for nearly a decade, developing about 800 AI and machine learning models that have contributed an additional S$370 million in incremental earnings.
“For the next three years, we’re going to ramp it up to even higher levels,” Koh shared.
One key application of generative AI at DBS is in customer service, where it has reduced wait times by at least 20 per cent. The bank’s generative AI-powered virtual assistant can identify solutions and interpret customer sentiment through tone, enabling more responsive and empathetic interactions.
“There’s a lot of opportunity for SMEs to catch up, to adopt AI or generative AI,” he added, pointing out that while about 40 per cent of larger enterprises implemented AI solutions in 2023, the figure was closer to 4 per cent for SMEs.
He highlighted Spark GenAI, a programme launched by DBS, Enterprise Singapore and the Infocomm Media Development Authority in November, aimed at accelerating generative AI adoption among SMEs.
Tay has started experimenting with AI, using it to swiftly create cake and packaging designs for his food and beverage clients, including major cafe chains.
“I’m not sure we will implement a lot of things into our business, but as a business owner, I think that AI can do a lot for me,” he said. AI also offers a valuable tool for navigating business challenges in an uncertain global environment, said Koh, as the panellists discussed obstacles businesses face in today’s landscape.
Trump 2.0
One looming concern is US president-elect Trump’s second term, with aggressive trade policies expected to impact Asia.
Koh noted that potential tariffs and taxes under “Trump 2.0” could disrupt supply chains, and urged businesses to explore partnerships or trade agreements to reduce cost and diversify suppliers, instead of relying on a particular region.
Indeed, while SMEs will likely face cost increases, there is now greater potential for Asean cooperation, Dhingra said, with intra-Asia trade significantly larger than a decade ago. In addition to diversifying supply chains, businesses should broaden their customer bases, he said.
Asean’s growth as a major manufacturing hub also provides an opportunity for regional trade, reducing reliance on the US, he added.
As Tay sees it, Trump 2.0 heralds a further easing in interest rates – a cause for celebration: “So at least something comes down.”
Source: The Business Times © SPH Media Limited. Permission required for reproduction
