Malaysia, Singapore set up special economic zone

Malaysia and Singapore on Tuesday inked an agreement to create a new special economic zone for business and investment.

Singaporean Prime Minister Lawrence Wong and Malaysian Prime Minister Anwar Ibrahim witnessed the exchange of the agreement for the Johor-Singapore Special Economic Zone (JS-SEZ) at the 11th Malaysia-Singapore Leaders’ Retreat in Putrajaya, Malaysia.

Anwar said that both nations are governed by politically stable administrations with clear economic policies aimed at attracting investments. Both governments are also selective in ensuring that investments align with future demands and priorities.

The two government’s sound economic orientations, including efforts to develop modern infrastructure and financial incentives, are major motives to draw the participation of enterprises.

Wong, for his part, said the initiative provides a message for investors to look at the complementarities between Johor and Singapore and many advantages in the entire JS-SEZ ecosystem.

He stressed that there are many strengths that can be harnessed from both sides that will enhance its value proposition and make JS-SEZ much more competitive and attractive for businesses to operate from.

On the Singapore side, businesses can tap into existing incentives, market readiness programs, and grants in order to expand and operate in Johor that are synergized with their operations in Singapore.

The zone is expected to not only bolster two-way trade but also attract more global investments that bring benefits to the two countries’ people.

Earlier, the two leaders witnessed the exchange of several memoranda of understanding on cooperation across the areas of carbon capture and storage, urban development, social welfare, and higher education, among others.