Malaysia and Singapore have jointly agreed to develop a special economic zone in Malaysia’s southern state of Johor, with the aim of attracting investment and increasing the movement of goods and people across their common border.
At a ceremony yesterday, Economy Minister Rafizi Ramli and Singapore’s Minister of Trade and Industry Gan Kim Yong signed a memorandum of understanding on the Johor-Singapore Special Economic Zone (JS-SEZ). In a subsequent joint statement, the two countries said they would work towards establishing a full agreement during the 11th Leaders’ Retreat later this year.
“Under the MoU, Malaysia and Singapore will work to strengthen the business ecosystem within SEZs to support investment, as well as enhance cross-border flows of goods and people,” the two leaders said in a statement. mentioned in. “The SEZ capitalizes on Johor’s strong growth and Singapore’s significant investment in the region.”
Malaysian Economy Minister Rafizi Ramli said the JS-SEZ “offers an unprecedented opportunity” for both countries to increase cross-border trade and mobility.
The joint statement said Singapore and Malaysia are also considering other initiatives to “build towards” the JS-SEZ, including a passport-free customs system on both sides of the border and the possibility of renewable energy cooperation.
The signing of the MOU comes shortly after Singapore Prime Minister Lee Hsien Loong and Malaysian Prime Minister Anwar Ibrahim witnessed the completion of the first connecting section of the light rail (RTS) link between Singapore and Johor Bahru, the capital of Johor state. .
According to Singapore’s Ministry of Foreign Affairs, the four-kilometre link will connect Bukit Chagar station in Johor Bahru and Woodlands North station in Singapore. With a peak passenger capacity of 10,000 passengers in each direction, it is designed to ease traffic congestion on the Johor-Singapore Causeway, one of the busiest land routes in the world. The RTS will cost an estimated 10 billion ringgit ($2.2 billion) and is scheduled to begin passenger service at the end of 2026.
This rail link is just the latest upgrade to the causeway, which was built in 1924 and expanded and widened many times over the following years.
Prime Minister Lee Hsien Loong wrote in a Facebook post that the connection “brings our friendship and bilateral relationship even closer.” He added that the RTS and JS-SEZ will “strengthen cross-border connectivity, support business and create jobs on both sides of the causeway.”
Both agreements aim to strengthen the already close economic interdependence between Singapore and Peninsular Malaysia, with which the Lion City was briefly integrated before being expelled from the Federation of Malaysia in 1965. Ta. The border between the two countries is one of the busiest in the world. More than 350,000 people commute to Singapore from Malaysia through the Johor-Singapore Causeway every day.
Malaysia and Singapore are also in talks to build a 350-kilometre high-speed rail link between Singapore and Kuala Lumpur. The project was first announced in 2013, but was ultimately canceled in 2020 due to disagreements on the Malaysian side and funding constraints. There have been reports in recent months that Anwar’s government may be interested in reviving the project if it can significantly reduce costs.