Malaysia and Singapore agree to collaborate on the Special Economic Zone development

SINGAPORE: Malaysia and Singapore have agreed to collaborate on the Special Economic Zone development in the southern Malaysian state of Johor. The goal of this initiative is to attract investments and facilitate the movement of goods and people between the two countries, Yahoo Finance reports.

The agreement, aimed at fostering economic growth, includes plans for a comprehensive pact covering areas such as renewable energy and streamlining business procedures from approvals to border clearances. Malaysia’s Economy Minister, Rafizi Ramli, emphasised the potential for cross-border trade enhancement and economic benefits for both nations through the SEZ.

The signing ceremony for the agreement took place in Johor, attended by the leaders of Malaysia and Singapore.

According to the statement, Singapore was the second-largest foreign investor in Johor from Jan to Jun 2022, contributing approximately 70% of the state’s total foreign direct investment in manufacturing.

Earlier on the same day, Malaysian Prime Minister Anwar Ibrahim and Singaporean counterpart Lee Hsien Loong celebrated the completion of a connecting span for a 4-kilometre (2.5-mile) light rail link between Johor Bahru and Singapore.

The project, estimated to cost around 10 billion ringgit ($2.2 billion), is expected to ease traffic congestion on the causeway, one of the world’s busiest land crossings. The rail link is scheduled for completion by the end of 2026.

This collaboration is significant as thousands of Malaysians commute daily to Singapore for work and school./TISG