PMs Anwar, Lee say Johor-Singapore special economic zone joint development to kick off with feasibility study

Joint development of the SEZ

Malaysia and Singapore have agreed to jointly develop the Johor-Singapore Special Economic Zone (SEZ) and will conduct a feasibility study on strengthening its ecosystem, the two countries announced at a joint press conference between Prime Minister Datuk Seri Anwar Ibrahim and Singapore Prime Minister Lee Hsien Loong. Lee said both sides aim to sign a memorandum of understanding (MOU) on the project by early next year, once the feasibility study is complete.

Benefits for goods, people, and investors

"Firstly, improving the flow of goods between the two sides because the SEZ may mean special tax arrangements and bonded warehouses, therefore easier border flows. Secondly, better and easier arrangements on the flow of people who have to work on both sides of the Causeway," — Singapore Prime Minister Lee Hsien Loong

Speaking at the 10th Malaysia-Singapore Leaders' Retreat in Singapore, Lee said the SEZ would strengthen the economic ecosystem of both Iskandar Malaysia and Singapore, potentially drawing greater investor attention to the Iskandar region. He added that Singaporean companies could gain valuable flexibility by maintaining a presence on both sides of the Causeway once the SEZ is in place — flexibility not available to firms operating on just one side.

"So, we have great hopes. But first we have to do the feasibility study and we have to negotiate the MoU, and we're hoping to have that done by early next year," — Lee Hsien Loong

Signing the MoU

Anwar said Malaysia expects to sign the MOU on the SEZ's parameters early next year and would expedite the process where possible, aiming for agreement by mid-January. Both leaders later commended the Industrial Cooperation Work Group and agencies from both countries for their close work facilitating high-profile investment and job creation in Iskandar Malaysia.

Singapore's investment and the retreat

Singapore is Iskandar Malaysia's second-largest foreign investor, with S$9.5 billion (RM33 billion) committed between 2006 and June this year. Plans for the SEZ were first announced the previous month, as Johor works to make its local market more attractive to investors. The announcement came during Anwar's visit to Singapore for the 10th Malaysia-Singapore Leaders' Retreat — a two-day, annual bilateral platform for the two prime ministers, and the first held since Covid-19 restrictions eased.

Source: Malay Mail