The Evolution of the Electronics Industry in the SIJORI Cross-border Region

Abstract

In the early 1990s, Singapore, the Malaysian state of Johor, and the Indonesian island of Batam sought to leverage their proximity, differing comparative advantages, and good logistics connections to market themselves as an integrated unit. After an initial phase of enthusiasm and considerable investment from electronics multinationals, attention regarding the cross-border region waned in the wake of the Asian Financial Crisis. Using data from investment authorities in Indonesia and Malaysia, as well as a number of firm interviews, this paper traces the evolution and current status of the electronics industry in Batam and Johor.