Johor-Singapore special economic zone agreement to be inked by year’s end
Published on: Friday, March 15, 2024
By: FMT
The Johor-Singapore special economic zone is expected to stimulate infrastructure development in the region. (AP pic)
PETALING JAYA: The Johor-Singapore special economic zone (JS–SEZ) joint agreement between Malaysia and Singapore is expected to be inked by the end of this year, said the economy ministry.
Bernama reported that the agreement will be signed by the prime ministers of both countries during the 11th Malaysia-Singapore Leaders’ Retreat later this year.
ADVERTISEMENT
“The joint agreement will detail the cooperation agreed on by both countries for the JS–SEZ development, including the sectors to be focussed on, location and incentives to be offered,” said the ministry in a written parliamentary reply.
It was replying to a question from Jimmy Puah (PH-Tebrau) about the development, direction and implementation timeline of the special economic zone.
The Johor government did a study on the JS-SEZ and submitted an interim report to the economy ministry on Jan 29, said the ministry.
It said Prime Minister Anwar Ibrahim subsequently chaired a JS-SEZ coordination meeting on Feb 28 to seek feedback from ministries and agencies before further discussions with Singapore.
ADVERTISEMENT
The memorandum of understanding (MoU) to work on the special economic zone was signed by economy minister Rafizi Ramli and Singapore’s trade and industry minister, Gan Kim Yong, in Johor Bahru on Jan 11.
The MoU signing saw both governments agree to work on several initiatives that will build towards the JS–SEZ, including a one-stop business/investment service centre in Johor to facilitate the application process for Singapore businesses looking to set up in Johor; the adoption and implementation of a passport–free QR code clearance system on both sides; and the adoption of digitised processes for cargo clearance at the land checkpoints.
ADVERTISEMENT
They also agreed to facilitate renewable energy cooperation, organise an investors forum for feedback on the JS-SEZ, and curate “work-based learning initiatives” for relevant industries in the economic zone experiencing a lack of talent.
The JS–SEZ was initially mooted by Rafizi after a meeting with the Johor government at Iskandar Puteri in May last year. Both countries agreed to take the next step by setting up a special task force to study the establishment of the special economic zone two months later.
The JS–SEZ is also expected to improve the business ecosystems of both the Iskandar Malaysia region and Singapore, especially in the electronics, financial services, business‑related services and healthcare sectors.
Last year, Johor secured RM70.6 billion worth of foreign investments in various sectors.
Singapore is the state’s second-largest foreign investor, contributing around 70% of Johor’s total foreign direct investment in the manufacturing sector.
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
