The MoU will guide negotiations between the two countries, detailing how the zone can contribute to the economic revitalization of Johor and Singapore.
Singapore and Malaysia have signed a Memorandum of Understanding (MOU) to establish the Johor-Singapore Special Economic Zone (JS-SEZ).
The MOU, signed by Malaysia’s Economy Minister Rafizi Ramli and Singapore’s Minister of Trade and Industry Gan Kim Yong, is an agreement between the two countries to negotiate details on how to create a special economic zone to boost the economies of Johor and Singapore. will lead to. Based on these negotiations led by Malaysia’s Ministry of Economic Affairs and Singapore’s Ministry of Trade and Industry, the two countries are expected to conclude a JS-SEZ agreement by the end of this year.
JS-SEZ was first proposed by Minister Rafizi in July 2022 and welcomed by Johor Chief Minister and Minister Desmond Lee.
As Minister Rafizi explained, Singapore is Malaysia’s “major trading partner”.
“Johor’s (and Malaysia’s) economic potential will be further enhanced if we can work together with Singapore to find mutual strengths that complement each other.”
He further elaborates on the main benefits of the upcoming JS-SEZ.
First, interconnectivity between Johor and Singapore will enable the movement of people, goods and more active trade between the two countries. In addition to the economic objective, the smoother connectivity will also ease the problem of congestion on the Johor Causeway, which causes hundreds of thousands of Johor residents to wake up early for work in Singapore.
Beyond simplified immigration procedures and high-capacity transport infrastructure, the JS-SEZ could lead to new job opportunities for Singaporean and international companies in Johor. This will reduce the pressure of such human migration in the future as more people will work in Johor without having to cross borders for work.
There will also be more opportunities to attract more international investment, as investors will be able to build their businesses using the facilities provided in both countries without having to invest twice or set up two companies. Sho.
Finally, the JS-SEZ is also expected to increase the demand for renewable energy, which will accelerate the build-up of renewable energy capacity for the energy transition. The TBB capacity offered by Johor and Malaysia (outlined by NTER) is the main attraction to JS-SEZ and Malaysia for foreign investors due to legal requirements in developed countries requiring the use of TBB. It will be.
Lead image / Rafizi Ramli, Minister of Economy