JOHOR BAHRU: By mid-2025, Singaporeans and other foreign travellers may be able to clear Johor land checkpoints with just QR codes without needing to show their passports.
A senior official of the Johor state government Lee Ting Han said on Wednesday (Dec 11) that Malaysian authorities are aiming for QR code immigration clearance to be expanded to Singaporeans and other foreign passport holders by the middle of next year.
This development comes amid calls from foreign companies who are considering investing in the southern state as part of the Johor-Singapore Special Economic Zone (SEZ): For Malaysian authorities to facilitate the expeditious clearance of people at the land checkpoints – considered to be one of the busiest land crossings in the world.
In his speech during an SEZ-related event organised by OCBC Bank in Johor Bahru, Lee stressed that rolling out the QR code clearance for Singaporeans and other foreign passport holders will be a key step in digitising the movement of people across the land borders and reducing congestion.
“These are legacy issues that we have to address – the movement of people. On a daily basis we’re looking at 300,000 (to) 350,000 people, making it one of the busiest (land) borders in the world,” said Lee.
“Just this morning, Singapore has announced that it will be expanding passport-free travel at the Woodlands (and Tuas) Checkpoints for bus travellers. In Malaysia we have completed our pilot testing, and we will be expanding our QR code passport-free clearance system to all Malaysians starting early next year, and to all passport holders, hopefully by mid next year.”
When asked by CNA on the sidelines of the event to expand on details of the rollout, Lee – who is Johor investment, trade, consumer affairs and human resources committee chairman – said that Malaysian authorities had taken notice of Singapore’s progress in launching passport-free travel initiatives.
This includes the fact that with the full implementation of QR code clearance at the bus halls, the republic would have completed the rollout of the passport-less clearance initiative for all modes of transport at the land checkpoints, he added.
“We are following up closely. We have completed our pilot testing and we are thankful that no technical glitches occurred during pilot testing and how it received so much support from Malaysians travelling to and fro Singapore,” he said.
Malaysian authorities launched a pilot trial between June and November this year for Malaysian citizens travelling across the land checkpoints by bus and motorcycles to use QR code clearance.
Following the implementation of the trial, Malaysian Home Minister Saifuddin Nasution Ismail said that the initiative will be expanded to Malaysian drivers and commuters from the start of 2025.
During the trial, authorities also used three separate apps – bus travellers at the Sultan Abu Bakar Complex customs linked to the Tuas Second Link use the MyTrip app, while those at the Sultan Iskandar Building (BSI) linked to the Causeway use the MyRentas app. Motorcyclists use the MyBorderPass app.
Lee told CNA that a company has been selected from the three by the Home Affairs Ministry, but he did not specify which.
CNA has reached out to the ministry on which app will be used for QR code clearance moving forward.
However, the implementation of QR code has not been completely smooth. Last Sunday, a technical issue affecting a core switch at BSI led to both the autogates and QR-code lanes malfunctioning between 12pm and 6.30pm, triggering long queues for travellers.
BETTER CONNECTIVITY MORE IMPORTANT THAN HARD INCENTIVES FOR SEZ: COMPANIES
Company representatives who were present at the OCBC event welcomed initiatives to facilitate the smooth clearance of people and cargo across the land checkpoints.
These firms – some of which are OCBC clients keen to expand operations into Johor – added that beyond hard incentives like tax breaks, initiatives that facilitate smooth cross-border travel and fast processing of permits are more important in enticing companies to invest into Johor.
The Johor-Singapore SEZ is an initiative to boost economic collaboration between the two areas, by offering fiscal and non-fiscal incentives such as tax breaks and easier travel between the two countries.
Leaders from both Singapore and Malaysia have been in discussions over the past year and a full-fledged agreement on the zone is expected to be signed in January.
Hui Yang, chief executive officer and director of Chinese manufacturing firm Tianma Precision Machinery, told reporters during a panel discussion that while tax breaks are a “good bonus”, what is more key is that Johor hastens processes like cross-border travel, approval for contractors and delivery of logistics.
The firm, which produces ball bearings for vehicles, recently signed a deal worth RM440 million (US$99.2 million) to open a facility in Tanjung Langsat Industrial Complex, located around 25 km from Johor Bahru.
“Coming from China, we do have a slightly higher expectation on speed (of getting things done) … there has been a shift in expectations on our end so hopefully the other end (local authorities and companies) can catch up a bit,” said Hui.
Meanwhile, Seow Zhi Yuan – who is managing director for Singapore marine firm RMS Marine and Offshore Service – told CNA that the announcement by Malaysia to expand QR code clearance is welcome because it would allow his employees to move across the borders more efficiently.
“The border line between Singapore and Johor will be greyer in the future and we are equal partners in the SEZ so passports shouldn’t matter. Workers and citizens should move around freely and this is a sign of true collaboration,” he said.
Ahead of the expected signing of the SEZ agreement, OCBC Bank said that based on its engagements with clients, an increasing number of small and medium-sized enterprises (SMEs) and huge corporations are keen to be part of the SEZ.
In 2024, OCBC said it expects to have supported 260 new mid-sized enterprises from the region, across industries like construction, manufacturing, wholesale and retail. These firms include those from Singapore, Indonesia and China. The bank added that this number is expected to increase by 20 per cent in 2025.
OCBC’s head of wholesale banking Jeffrey Teoh told reporters that the team of advisors include bankers who have assisted companies who have set up operations in Johor.
“It’s about helping our customers who are keen to expand overseas … and help them achieve success wherever they go,” said Mr Teoh.
The bank said that for a start, it will have two teams that will comprise of 25 bankers that will provide advisory services to help SMEs start and grow their businesses, as well as connect them to suitable partners in the SEZ.
WILL TRUMP’S TARIFFS HAMPER THE SEZ?
In spite of the increased interest in the upcoming SEZ, there are also concerns among some companies on how the ongoing trade war between United States and China could hamper the zone’s prospects.
US president-elect Donald Trump has pledged to impose harsher tariffs on China products, and these could be extended to Southeast Asian countries like Vietnam, Thailand and Cambodia, Malaysia.
These four Southeast Asian states are among those that have gained from the China Plus One strategy by companies to diversify their supply chains to avoid US tariffs on goods from China.
Hence, economists have raised questions whether Chinese companies would continue to invest in Malaysia, including in Johor.
During a press conference on Wednesday, OCBC senior Association of Southeast Asian Nations (ASEAN) economist Lavanya Venkateswaran told reporters that from a macro perspective, Malaysia’s growth could be hampered by between 0.7 and 1.4 percentage points if the tariffs are extended to Southeast Asian countries.
“And since Johor follows the national average, there will be a watered down impact,” added Venkateswaran.
Hui, who heads manufacturing firm Tianma Precision Machinery, told CNA that while tariffs are a negative for companies, it is not the sole factor that drives decisions on whether Chinese firms would expand into Malaysia.
“Tariffs are bad – for our customers and the company. It leaves us on the edge, and with a new (US) leader coming in, we’re not sure.
“But we think Malaysia is a good place for our firm … with its hard infrastructure like land and electricity and soft infrastructure, like how close it is to Chinese culture in terms of language and food,” he added.
Lee, the Johor state government representative, told reporters that while the US-China trade war and the prospect of tariffs are external factors beyond Malaysia’s control, he stressed that Johor could be a net-beneficiary in the short term.
“We have ready and complete legal, financial and logistical infrastructure (especially with the SEZ) …. As far as Johor is concerned, we have seen interest from Chia companies in the semiconductor industry as well as chemicals and E&E (electrical and electronics products),” he said.
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