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Singapore-Johor-Riau ties could support ASEAN growth, forum told

Speakers highlighted complementary investment strengths while warning that environmental risks need to be managed.

By Maya Santos

Map illustrating Singapore, Johor and Indonesia’s Riau Islands
Photo: The Business Times

Economic integration across Singapore, Johor and Indonesia’s Riau Islands could provide a model for ASEAN cooperation, Danantara executive Pahala Mansury said at the Singapore Green Dialogue on Nov 3.

Pahala, the Indonesian sovereign wealth fund’s managing director for global relations and communications, identified the triangle and surrounding areas as central to Southeast Asia’s growth potential. The Singapore Institute of International Affairs (SIIA) convened the event to examine economic development and sustainability across the three areas.

Indonesian embassy official Riena Astuty said the partnership could generate jobs and attract investment by combining different capabilities. She pointed to Singapore’s financial services, technology and business connections; Johor’s industry and manufacturing resources; and the renewable energy, land, workforce and domestic market access offered by Batam, Bintan and Karimun.

For digital businesses, access to energy would influence location decisions, said Leong Yee May, managing director at Equinix Singapore. She said resources shared across the triangle could support digital expansion. SIIA chairman Simon Tay cautioned that cooperation also required environmental safeguards, citing haze as an example of interdependence producing adverse effects.

The discussion comes amid proposals for wider cooperation. Singapore Deputy Prime Minister Gan Kim Yong said in July 2025 that the three countries had considered including the Riau Islands in an expanded Johor-Singapore Special Economic Zone.

A joint ministerial statement put the zone’s approved investments overseen by the Malaysian Investment Development Authority at RM88.83 billion for January 2025 to June 2026.

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