SINGAPORE: As the Johor-Singapore Special Economic Zone (JS-SEZ) begins to take shape, some local businesses have started setting up operations across the Causeway.

Under the bilateral initiative, sectors that will benefit include manufacturing, logistics and food security.

Singapore-based agricultural technology firm Archisen, for instance, is collaborating with Malaysian stated-owned Johor Corporation subsidiary FarmByte to set up one of the largest urban farms in Johor.

Grown indoors, the plants will not be affected by weather conditions, and will thrive under specialised grow lights, vertical hydroponics technology, and a climate control system.

The firm plans to produce about 400kg of ice plant – a crunch, leafy vegetable typically used in salads – for daily import into Singapore.

The farm’s co-founder Sven Yeo said the zone is a welcome venture as shifting production to Malaysia helps alleviate the issues the firm currently face in Singapore, including cost pressures and space constraints.

“With the kind of opportunities in the SEZ, we are scaling down production in Singapore and looking at ramping up production in Malaysia. It's easily more than 50 times the kind of capacity that we're looking at,” he said.

He added the move will allow the company to reduce cost and increase yield, which will in turn be passed on to consumers in the form of cheaper greens at the supermarkets, and help the farm to stay competitive.

“Local produce, while fresher and often with no pesticides, is definitely a lot more expensive than non-local produce,” Mr Yeo said.

“With our expansion into Johor, literally across the border, we are able to maintain the freshness and the quality of produce while being able to offer it at a more competitive rate.”

SOME HAVE ALREADY SET UP SHOP

Meanwhile, electronics manufacturing firm SP Manufacturing has already opened its new facility in Johor’s Senai town, its second branch in Malaysia that can run up to four production lines for electronics.

Operating since October last year, it is the company’s latest setup in a global network of factories that includes China and Europe.

Its CEO Philip Ong said setting up in multiple locations builds operational resiliency within companies and networks.

“Having invested in Johor as well as Penang gives us th...