JOHORE : A PROFILE OF A FAST GROWING REGION

Abstract

Johore has been experiencing rapid economic development since the mid-1980s. From an economic structure which was highly dependent on its primary activities. Johore has now become a major area of manufacturing enterprises. Higher value-added activities like the production of electrical components, the manufacture of computer parts and peripherals are fast replacing activities involving the production of rubber, the cultivation of rice or the harvesting of palm oil. Another facet of such transformation can be observed in Johore's utilisation of production factors. Johore is now significantly shifting towards high-skilled, high-technology and capital intensive industries, in comparison to labour activities in the 1960s and 1970s. All these factors have made it possible for Johore to emerge as a major economic force to be reckoned with in Malaysia. She has certainly made large strides in her economic progress and is gradually narrowing the gap between herself and the other strong economic areas like Penang, Kuala Lumpur and Selangor. It is against this backdrop that the growth of Johore will be discussed. To aid us in the discussion, three theoretical perspectives will be used, namely the Growth Pole theory, the New International Division of Labour or NIDL and the Mega-urbanisation theory. Each theory provides its own set of operating factors to explain growth in an area. Briefly, the Growth Pole theory suggests that economic development can be explained through the propulsive growth of leading Industries thereby Increasing economic concentration in an area. The NIDL, on the other hand, stipulates that growth within a spatial unit Is a consequence of operations Involving, for instance, the relocation of assembly processes to low-wage economies. The Mega-urbanisation theory explores how economic transformation Is related to spreading out of original core economies. In Johore's case, Singapore represents a major influence in terms of economic growth and the spill over of economic activities. This academic exercise attempts to show how the three theories contribute to an understanding of the economic transformation of Johore.