As Johor prepares for the rollout of the Johor-Singapore Special Economic Zone (JS-SEZ) Masterplan, a new workforce study has found that the state’s biggest challenge may not be attracting talent, but ensuring its existing workforce is ready to support the next phase of economic growth.
Released by Central Force International ahead of the highly anticipated masterplan announcement, the study highlights a growing disconnect between rising income expectations and workforce readiness, warning that the long-term success of the JS-SEZ will depend as much on human capital as it does on infrastructure and investment.
The findings show that while 45 per cent of Johor’s workforce is already capable of driving digital adoption, a significant proportion remains in transition, with uneven exposure to artificial intelligence (AI) and advanced digital tools limiting readiness for higher-value roles.
According to Central Force International Chief Executive Officer See Toh Wai Yu, Johor already possesses the talent needed to support economic transformation, but that talent is not yet fully aligned with the direction the state’s economy is heading.
“The narrative has been that Johor needs more talent. What this data shows is more nuanced—the talent already exists, but it is not yet aligned to where the economy is heading,” he said.
He added that the widening gap between workforce expectations and capability will ultimately determine how far and how quickly Johor can progress as it positions itself as a regional economic hub.
The study also points to significant differences in workforce readiness across the state. Johor Bahru emerged as the district with the highest level of digital preparedness, boasting a concentration of workers capable of supporting advanced services and technology-enabled industries.
Outside the urban centre, however, many districts are characterised by technically skilled and highly trainable workers who have had less exposure to AI and advanced digital technologies. While these workers possess strong execution capabilities, the report suggests they may require additional upskilling before transitioning into innovation-driven sectors.
Researchers caution that pursuing economic transformation uniformly across all districts could create unnecessary friction and widen regional disparities.
“The biggest risk is not that Johor moves too slowly—it’s that we move too uniformly. Transformation must follow readiness. If we mismatch ambition with capability, we risk creating friction instead of momentum,” Wai Yu said.
Beyond workforce capability, the study also examined perceptions of income and quality of life among Johoreans. It found that a majority of respondents consider a monthly income of RM3,000 or below sufficient to achieve a “good life,” while only a small minority associated such a standard of living with earnings above RM5,000.
Notably, this perception remained consistent even among respondents earning higher incomes, suggesting that views on economic opportunity are shaped less by personal earning potential than by broader perceptions of Johor’s economic landscape.
The report argues that while Johor is widely regarded as a stable and affordable place to live, it has yet to be viewed as an economy that offers highly aspirational career and income opportunities. This mindset, researchers say, could slow the pace at which workforce expectations evolve alongside higher-value industries.
As Malaysia moves closer to unveiling the JS-SEZ Masterplan, the study positions workforce alignment as a critical factor in determining the initiative’s success.
While Johor enters this next phase with a strong execution base and a sizeable pool of trainable talent, the report concludes that unlocking sustained, higher-value growth will depend on effectively aligning workforce capability, public expectations and investment strategies.
Rather than focusing solely on the speed of transformation, the report argues that policymakers should prioritise sequencing development according to regional readiness, ensuring that economic ambition does not outpace the capabilities of the workforce expected to support it.
The study’s lite report is available on Central Force International’s website, while the full report is available through subscription. Central Force International is a member of the American Association for Public Opinion Research (AAPOR) Transparency Initiative and is currently the only Malaysian research organisation participating in the initiative.