Malaysia and Singapore announced an agreement to establish a special economic zone in Johor on Tuesday. The initiative aims to boost investment and facilitate the flow of goods and people between the two countries.
The neighbors initially agreed in principle to cooperate in the development of the economic zone a year ago. This official news was announced during a visit to Malaysia by the Prime Minister of Singapore, Lawrence Wong, together with Government Ministers.
Wong emphasized the importance of this project in a joint press conference with Prime Minister Anwar Ibrahim and said it was a big step forward.
“It’s an important project… we can both be more competitive, promote our valuable ideas, and together we can attract more investment to our shores,” Wong said. “When negotiating the agreement, both parties actively engaged with stakeholders to ensure that the SEZ has the conditions to help our businesses grow together in the long term.”
Anwar described this project as a unique initiative, stressing that it is rare for two countries to collaborate on one project.
Economy Minister Rafizi Ramli, outlined the plans, saying that the aim is to attract high-value investments in sectors such as manufacturing, logistics, tourism, and energy transition. In the first five years of the establishment of the zone, the two countries target 50 projects and the creation of 20,000 skilled jobs.
Malaysia will establish and manage an infrastructure fund to support companies interested in operating in the area. At the same time, Singapore will create its own fund to facilitate investment and provide support to Singaporean businesses operating in Johor, said Rafizi.
