Malaysia and Singapore announced an agreement to establish a special economic zone in Johor on Tuesday. The initiative aims to foster investment and facilitate the movement of goods and people between the two nations.

The neighbours initially agreed in principle to collaborate on the development of the economic zone a year ago. The formal announcement was made during a visit to Malaysia by Singapore’s Prime Minister Lawrence Wong, accompanied by senior cabinet ministers.

Wong highlighted the significance of the project at a joint press conference with Prime Minister Anwar Ibrahim stating that it was a major step forward.

“It’s an important project… we can both be more competitive, enhance our value proposition, and jointly attract more investments to our shores,” Wong said. “When negotiating the agreement, both sides have actively engaged stakeholders to ensure that the SEZ has the conditions to help our businesses grow together for the longer term.”

Anwar described the project as a unique initiative, emphasising that it was rare for two countries to collaborate on a single project.  

Economy Minister Rafizi Ramli, outlined the plans, stating that the aim is to attract high-value investments into sectors such as manufacturing, logistics, tourism, and energy transition. Within the first five years of the zone’s establishment, the two countries are targeting 50 projects and the creation of 20,000 skilled jobs.

Malaysia will establish and manage an infrastructure fund to support companies interested in setting up operations in the zone. Simultaneously, Singapore will create its own fund to facilitate investments and provide support to Singaporean businesses operating in Johor, Rafizi said. 

(Source: Reuters) 

• TAGS:
• Anwar Ibrahim
• Lawrence Wong
• malaysia
• Rafizi Ramli
• Singapore
• Special Economic Zone