Batu Pahat is Johor's second largest manufacturing industrial town; encompassing textiles, electronics, food-processing, timber, porcelain and plastic industry. It produces 50% of the textile exported from Malaysia and there are about 300 garment and textile factories.
There are several industrial zones including Tongkang Pecah, Parit Raja and Sri Gading. Private industrial zones include Sri Sulong, Lian Aik and Buditama, ranging from 20 acres (81,000 m) to 200 acres (0.81 km). Foreign investments include Sharp Roxy, Sony, Fujitsu, Hitachi and Mitsumi. There over 20 public listed companies, including Harta Packaging, PCCS, Baneng Holdings, S&P, Sharp Roxy, Ramatex, Southex, Prolexus, Fujitsu, Hitachi, Yong Tai, Hwa Tai, AE, Kia Lim, Kayu Wangi, Hup Seng, Xiang Leng, Magnum, SKP, SPI Plastics, BP Plastics, Cheng Yap Sdn. Bhd. and Fast Track Solutions Bhd.
Agriculture is another important source of income for the locals. Batu Pahat has some of the largest rubber, oil palm, coconut and cocoa plantations in Johor. Fruit produce such as watermelons, papayas, bananas, pineapples, durians and 20 varieties of vegetables are exported. There are also several fishing villages near the Strait of Malacca, providing rich sources of fisheries. Ornamental fish such as the arowana are major exports for some companies such as Xiang Leng
