Proposed Johor-Singapore SEZ aims to boost cross-border collaboration and regional growth
ISKANDAR PUTERI, Johor – Malaysia and Singapore will hold a Leaders’ Retreat in October, where Prime Ministers Anwar Ibrahim and Lee Hsien Loong are expected to finalise details for a proposed Johor-Singapore Special Economic Zone (SEZ).
Johor Chief Minister Onn Hafiz Ghazi shared this update during the state assembly on Thursday (Sep 14). He noted that the SEZ’s Terms of Reference (TOR), including its objectives and development timeline, would be a focal point of discussions during the retreat.
In July, following the 16th Malaysia-Singapore Joint Ministerial Committee for Iskandar Malaysia (JMCIM) meeting, both nations agreed to form a task force to study the potential SEZ. The task force is led by Singapore’s Ministry of Trade and Industry and Malaysia’s Ministry of Economy, with the support of other government agencies.
A Strategic Collaboration
The SEZ aims to strengthen economic ties between Johor and Singapore by easing the movement of people, goods, and services across borders. Key sectors expected to benefit include electronics, pharmaceuticals, automotive, agriculture, and renewable energy.
Chief Minister Onn Hafiz likened the SEZ’s potential to Shenzhen’s transformation from a fishing village into an international metropolis, citing the Chinese city’s rapid economic and population growth after establishing a special economic zone in 1980.
“With the strategic position of Johor, its international ports, and available land for development, the SEZ can succeed with strong cooperation from both governments,” Mr. Onn Hafiz stated, emphasizing the need for incentives such as multiple-entry visas, tax breaks, and infrastructure investments.
Mutual Benefits for the Region
Singapore’s National Development Minister Desmond Lee previously described the SEZ as a promising initiative, bringing benefits to residents of both countries. Trade policy expert Deborah Elms of the Asian Trade Centre highlighted that successful SEZs create productive ecosystems, attract investments, and generate jobs, although some zones face challenges due to limited infrastructure or workforce availability.
The upcoming retreat will further define the SEZ’s geographical scope and areas of focus, building on the foundation set by Iskandar Malaysia, Johor’s key economic corridor spanning major districts such as Johor Bahru, Iskandar Puteri, and Pasir Gudang.
The SEZ reflects a shared vision to foster sustainable growth and regional cooperation, ensuring mutual prosperity for both nations.
