Former MCA president Dr Chua Soi Lek says Johor’s economic gains must be judged by whether investment boosts revenue, funds welfare and creates better-paying jobs for locals.
In an exclusive interview with FMT, Chua said menteri besar Onn Hafiz Ghazi’s Maju Johor 2030 agenda had given the state a clear development target, backed by trade missions to woo investors.
“In order to achieve (the target set), he (the menteri besar) has undertaken (numerous) trade missions – and some of the staff told me that our menteri besar is also a good salesman,” he said.
The impact, according to Chua, is already visible in the state’s capital and beyond.
“Today, if you go to Johor, especially Johor Bahru and the surrounding areas, you can see that it’s booming. It is no less booming than Kuala Lumpur.”
From investment to revenue
Chua said the state did exceptionally well last year in securing approved foreign investments.
“Last year, approved investments by foreigners amounted to RM110 billion. This was the highest ever recorded in Johor and the highest in the whole country.”
FMT previously reported that Johor topped all states in approved investments last year, with Singapore the country’s largest foreign investor at RM58.3 billion.
The Johor-Singapore Special Economic Zone has added to the momentum, drawing RM1.34 billion in investment commitments from five Singapore companies, while targeting 100 projects worth RM100 billion and 100,000 jobs in high-value sectors.
Chua said Onn Hafiz recognises that daily connectivity is important for investor confidence, especially given Johor’s proximity to Singapore.
He pointed to Onn Hafiz’s unannounced visits to the Causeway and Second Link as an example of the menteri besar’s hands-on approach to problem-solving.
“He’s going to the Second Link and Causeway early in the morning, unannounced, looking at how to solve the congestion, impressing a lot of people. This is a menteri besar who means business,” he said.
Chua also said Johor’s growth had outpaced the national rate in recent years.
“The economic growth of Johor has been very impressive for the last four years – higher than the national (average). And in 2021-2024, Johor registered 6.4% growth.”
According to reports, Malaysia recorded 5.2% growth in 2025 and 5.1% the previous year.
Chua said this mattered because stronger economic activity raises state revenue, including through land conversion premiums.
“That is the main source of the government’s income at the state level.”
“When I was in the government, in the early 1990s, it (land conversion premium revenue) was about RM5 million to RM600 million. Now, it has shot up to RM2.7 billion, with surplus.”
Official state figures put Johor’s 2025 revenue at RM2.676 billion, the highest in its history.
Surplus that reaches the people
The bigger question, Chua said, was whether the state has used that surplus for the benefit of ordinary people.
“That’s why we have Bantuan Kasih Johor, with so much money to give to the poor, the handicapped, petty traders.”
He said the fund has disbursed a substantial amount in aid over the past four years.
“This is a welfare fund. If I give you the figure, you will be surprised. RM650 million. Every year, an average of RM160 million, and this cuts across all races.”
He said the fund has benefited the elderly, newlyweds, low-income housewives, single mothers, petty traders and students with disabilities.
Premium wages, not just projects
Chua expressed confidence that the new investments would create better-paying jobs for Johoreans.
“Something very unique that the Johor government has done is to have linkages and collaboration between industry and the universities. The whole idea is to train manpower required by the new industries.”
He said graduates from these tie-ups were already earning higher starting salaries, even compared to their contemporaries in Kuala Lumpur
“You know, most graduates in Malaysia will get about RM3,000. These graduates from local universities, tied with the industry and employed by them, are paid RM4,000 to RM4,500.
“So, I would say that it’s like a premium starting salary compared to KL. This will help to solve underemployment in our country.”
The concern is national: the statistics department’s third-quarter 2025 labour market review showed that 1.96 million tertiary-educated workers were in semi-skilled or low-skilled jobs, with skill-related underemployment at 35.5%.
Chua said there was a need, not merely to create jobs, but to reduce the mismatch between graduate skills and industry demand.
For Chua, the real measure of Johor’s growth is whether investment, revenue, welfare, education and wages move together.
“Voters are smart voters now. They know this is a state government that has fulfilled all its promises. It has ensured stability. And I’m sure they want to see Johor becoming a developed state by 2030.” - FMT
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