A new workforce study released ahead of the upcoming Johor-Singapore Special Economic Zone (JS-SEZ) Masterplan announcement has revealed growing structural tensions within Johor’s labour market, raising questions about whether workforce readiness can keep pace with the state’s economic ambitions.
The study, conducted by Central Force International, found that while Johor possesses a strong operational workforce base, capability development remains uneven across districts, particularly in areas involving AI adoption, advanced digital exposure, and readiness for higher-value economic sectors.
The findings suggest that the long-term success of the JS-SEZ will depend not only on infrastructure investments and capital inflows, but also on whether workforce capabilities, economic expectations, and transformation strategies can be aligned effectively.
According to the report, approximately 45% of Johor’s workforce is currently capable of supporting technology adoption and higher-value activities. However, a significant proportion of workers remain in transition, with varying levels of preparedness for more advanced roles expected under the JS-SEZ framework.
At the same time, the study highlighted what it describes as a widening disconnect between income expectations and economic transformation goals. Many Johoreans continue to associate a “good life” with salaries around RM3,000 or below, while only a small minority link quality of life to incomes exceeding RM5,000.
Researchers noted that these perceptions remain relatively consistent even among higher-income earners, suggesting that expectations are shaped more by Johor’s broader economic identity than by individual earning potential.
“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,” said Central Force International CEO See Toh Wai Yu.
“What we are now seeing is a widening gap between expectations and readiness, and that gap will ultimately shape how far and how fast Johor can move,” he added.
The study also identified clear geographic disparities across the state. Johor Bahru emerged as the most digitally prepared district, with stronger concentrations of workers capable of supporting advanced services and technology-driven industries.
Outside the urban core, however, the workforce was found to be largely composed of technically capable and trainable workers, but with more limited exposure to emerging technologies and AI tools.
The report warned that advancing uniformly into higher-value sectors without accounting for varying levels of readiness could risk slowing productivity gains and widening economic inequality across districts.
“The biggest risk is not that Johor moves too slowly, it’s that we move too uniformly. Transformation must follow readiness,” said Wai Yu. “If we mismatch ambition with capability, we risk creating friction instead of momentum.”
The findings reposition workforce alignment as a central factor in determining the effectiveness of the JS-SEZ, which is expected to play a major role in reshaping Johor’s economic future through closer integration with Singapore and the attraction of higher-value industries.
The report concludes that Johor enters this phase with a strong execution base and a sizable pool of trainable talent, but cautions that sustainable growth will depend on sequencing transformation carefully and ensuring workforce development keeps pace with economic ambition.
The lite version of the report is available through Central Force International’s official website, while the full report is accessible via subscription.
Central Force International is also 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.