With the signing of a Memorandum of Understanding (MoU) between Malaysia and Singapore, the proposed Johor-Singapore Special Economic Zone (JS-SEZ) is beginning to take shape.
Earlier, Prime Minister Datuk Seri Anwar Ibrahim and his Singapore counterpart PM Lee Hsien Loong witnessed the signing of the MoU by Economy Minister Rafizi Ramli and Singaporean Minister for Trade and Industry Gan Kim Yong.
Anwar also hosted a luncheon for Lee and his delegation, which earlier attended the completion of the span between Malaysia and Singapore for the Rapid Transit System Link (RTS Link).
More trade between Johor and Singapore is anticipated as a result of the JS-SEZ, which has the potential to grow like Shenzhen, a special economic zone success story in China.
In an effort to strengthen business ties and increase connectivity as the Southeast Asian region fights a global economic slowdown, the two nations are collaborating to establish a special economic zone next to the Singaporean border.
Rafizi proposed the JS-SEZ during a meeting with the Johor state government in Iskandar Puteri in May last year, and both countries agreed to go a step further by establishing a special task force to study the establishment of the special economic zone two months later (in July).
The special economic zone is also expected to benefit both the Iskandar Malaysia region and Singapore’s business ecosystems.
Electronics, financial services, business-related services, and healthcare are among the industries targeted by the zone.
Johor attracted RM70.6 billion in foreign investment in various sectors last year.
Singapore is the state’s second-largest foreign investor, accounting for roughly 70% of Johor’s total foreign direct investment in the manufacturing sector.
