Singapore and Malaysia have signed the Johor-Singapore Special Economic Zone agreement, marking a significant milestone in bilateral economic collaboration.
The signing took place on Tuesday in Kuala Lumpur during the 11th Malaysia-Singapore Leaders’ Retreat, held from January 6 to 7.
Singapore’s Prime Minister and Minister for Finance, Lawrence Wong, and Malaysia’s Prime Minister and Minister of Finance, Anwar Ibrahim, presided over the retreat, where multiple bilateral agreements were exchanged, with the Johor-Singapore Special Economic Zone (JS-SEZ) being a centerpiece initiative.
Important Initiative
This agreement follows a year of groundwork since the memorandum of understanding was established, overcoming two prior delays in the signing process. On January 7, the official exchange of the agreement was witnessed in Putrajaya, Malaysia’s administrative capital, and streamed live on PM Wong’s YouTube channel.
Prime Minister Wong highlighted the importance of the initiative: «We both agree that bilateral cooperation must continue to deliver concrete benefits to both our peoples, and that’s the basis on which we worked on the JS-SEZ.»
More Quality Jobs
He further emphasized the strategic importance of the economic zone, stating: «This is an important project that leverages the complementary strengths of Singapore and Johor to boost competitiveness, enhance our value proposition, and attract more investments to both sides. In doing so, it will create quality jobs and greater opportunities for our people.»
The JS-SEZ includes nine flagship zones and reflects a commitment by both governments to invest in the region’s economic potential. Details of the initiative, including contributions to dedicated investment funds from Singapore and Malaysia, were shared during a media briefing on January 3.
Strong Support in 2024
«We welcome the signing of the JS-SEZ agreement. With this, we expect interest in the JS-SEZ to grow further. Even before this, we had already received many inquiries from businesses across the region to set up shop in Johor, given our strong track record,» Tan Teck Long, head of global wholesale banking, OCBC, said on Tuesday.
«In 2024 alone, we supported about 260 new mid-sized enterprises from the region, mainly from the services, construction, manufacturing, and wholesale and retail trade sectors, to set up their businesses in Malaysia. We anticipate this number to increase by 20 percent in 2025.»
Rapid Transit System Link in 2027
MRT RTS (Image: MRT Media)
OCBC has set up dedicated teams on both sides of the Causeway, with 25 experienced bankers in total, to support this growing interest. These bankers will provide advisory services to help the businesses start operations, as well as connect them with suitable local business partners, the bank said.
«The scheduled completion and launch of the Johor Bahru-Singapore Rapid Transit System (RTS) Link project (pictured above) on 1 January 2027 will further enhance the attractiveness of the JS-SEZ,» Tan added.
