The new economic zone aims to enhance connectivity, streamline border processes, and boost regional economic cooperation.
JOHOR BAHRU: Singapore and Malaysia have signed a Memorandum of Understanding (MOU) to establish a Johor-Singapore Special Economic Zone (SEZ), designed to deepen economic ties and improve cross-border connectivity.
The MOU, signed on Thursday (Jan 11) by Singapore’s Minister for Trade and Industry Gan Kim Yong and Malaysia’s Minister of Economy Mohd Rafizi Ramli, was witnessed by Prime Ministers Lee Hsien Loong and Anwar Ibrahim in Johor Bahru.
Among the initiatives being explored are passport-free clearance for individuals crossing the border and digitised cargo clearance processes at land checkpoints. These efforts are part of broader plans to create a seamless and efficient economic and travel corridor between the two nations.
Boosting Connectivity and Economic Growth
The SEZ framework will build on several initiatives, including:
Passport-free QR Code Clearance: A system enabling faster, more efficient border crossings for commuters.
Digital Cargo Processes: Streamlined clearance for goods at land checkpoints.
One-Stop Business Center: A centralized hub in Johor to support business and investment activities.
Renewable Energy Collaboration: Cooperation on sustainable energy initiatives in the SEZ.
Talent Development: Joint training programs to address skill gaps in industries within the zone.
The MOU also proposes joint promotional events and an investor forum to gather feedback from businesses about the SEZ.
Next Steps in SEZ Development
Both nations will continue to define the SEZ’s geographic scope and identify key sectors for collaboration. A Johor-Singapore SEZ Committee, co-led by the respective trade and economy ministries, will oversee the project. Updates will be presented during the 11th Malaysia-Singapore Leaders’ Retreat in Malaysia later this year.
This agreement follows the commitment made during the 10th Singapore-Malaysia Leaders’ Retreat in October 2023 and builds on the task force’s recommendations announced in July 2023.
Prime Minister Lee has highlighted the SEZ’s potential to ease the daily commute for workers across the Causeway, one of the world’s busiest border crossings.
Advancing the RTS Link Project
The Johor Bahru-Singapore Rapid Transit System (RTS) Link Project, which will connect Bukit Chagar in Johor Bahru to Woodlands North in Singapore, has also reached a 65% construction milestone. With operations targeted for December 2026, the RTS Link aims to handle up to 10,000 passengers per hour per direction, further improving cross-border mobility.
This series of initiatives reflects the collaborative commitment of Singapore and Malaysia to enhance economic cooperation, support sustainable growth, and foster closer ties between the two nations.
