Together, Riau Islands, S'pore, Johor SEZ Can Boost Investor Appeal

Initiative mooted at talks involving ministers from Singapore, Malaysia and Indonesia

- Krist Boo

Singapore and its neighbours are exploring ways to deepen economic integration between Singapore, Indonesia's Riau Islands and the Johor-Singapore Special Economic Zone.

The initiative arose during talks among ministers from the three nations ahead of the Asean Conference organised by the Singapore Business Federation (SBF), UOB, RSM Singapore and Rajah & Tann.

Drawing the Riau Islands – Bintan, Batam and Karimum – closer, and with the special economic zone, would bolster what is known as the Sijori Growth Triangle, a trading group initiated in the late 1980s linking Singapore, Johor and the three islands.

The grouping aimed to capitalise on each participant's inherent strengths: Singapore's capital, infrastructure and expertise; Johor's land and workforce; and Riau's natural resources and low-cost labour.

Significant investments from Singapore have since flowed into Batam, Bintan and Johor, but progress has been hindered by issues such as uneven levels of development, divergent agendas and global economic crises.

Deputy Prime Minister Gan Kim Yong, who is also Trade and Industry Minister, told a panel discussion at the conference at Resorts World Sentosa on July 3: "Two is better than one, three is better than two. If we can realise our original vision of Sijori, we will be even more attractive to investors."

The talks were meant to be "secret", he quipped, before they were revealed during the discussion at the conference, which drew more than 600 delegates from around 20 countries.