SIJORI Tech Triangle

3 Countries, 2 SEZs, One Destination

The SIJORI Growth Triangle, encompassing Singapore, Johor (Malaysia), and the Riau Islands (Indonesia), is one of Southeast Asia’s most dynamic economic regions. Established in 1989, this cross-border partnership was designed to leverage the complementary strengths of the three territories: Singapore’s advanced infrastructure and global connectivity, Johor’s manufacturing and industrial capabilities, and Batam's talent pool.

Over the years, SIJORI has evolved into a thriving hub for trade, investment, and innovation. Today, as the world embraces digital transformation, the SIJORI Tech Triangle will similarly evolve to integrate the 3 countries into one mega-region through nearshoring.

The Rise of Tech Nearshoring

Nearshoring is the strategy of relocating business operations to nearby countries rather than distant ones; striking a balance between cost savings and operational efficiency.

In the digital economy, nearshoring is particularly relevant for tech-driven industries such as software development, data analytics, cybersecurity, and digital marketing. The COVID-19 pandemic accelerated the shift toward remote work and digitalization, creating a surge in demand for skilled digital talent. However, many companies face challenges in sourcing and retaining such talent locally, leading them to explore nearshoring as a viable solution.

The SIJORI Tech Triangle is uniquely positioned to capitalize on this trend. With its strategic location, robust infrastructure, and diverse talent pool, the region offers an ideal environment for digital talent nearshoring.

Singapore: The Innovation Hub

Singapore is a global leader in technology and innovation, boasting a highly skilled workforce, world-class education system, and a business-friendly environment. The city-state is home to numerous multinational corporations, startups, and research institutions, making it a magnet for digital talent. However, the high cost of living and limited land space have constrained its ability to meet the growing demand for tech professionals. This has prompted Singapore to look beyond its borders, particularly to its neighbors in the SIJORI region, to supplement its talent pool.

Johor: The Emerging Tech Corridor

Johor, Malaysia’s southernmost state, has emerged as a key player in the digital economy. With its proximity to Singapore and lower operating costs, Johor has attracted significant investments in technology parks, data centers, and innovation hubs.

Key Initiatives by Digital Districts

Establishment of 8 co-working spaces in Johor
Provision of talent recruitment services

Riau Islands: Vast Tech Talent Pool

The Riau Islands, particularly Batam and Bintan, offer a cost-effective alternative for businesses looking to nearshore digital services. While traditionally known for manufacturing and tourism, the islands are increasingly focusing on developing their digital infrastructure and workforce. Indonesia’s large and youthful population provides a vast talent pool, and initiatives to improve digital literacy and technical skills are underway. With improved connectivity to Singapore and Johor, the Riau Islands are well-positioned to become a key node in the SIJORI digital ecosystem.

Key Initiatives by Digital Districts