Malaysia to Finalize Special Economic Zone Deal with Singapore in September

11 Jul, 2024

Malaysia to Finalize Special Economic Zone Deal with Singapore in September

Malaysia plans to finalize an agreement with Singapore by September to establish a special economic zone (SEZ) in Johor, just north of Singapore. This SEZ aims to attract investment and facilitate the movement of goods and people between the two countries. Economic Minister Rafizi Ramli confirmed that the final pact will be signed before the annual retreat between the leaders of Malaysia and Singapore.

Key proposals for the SEZ include a passport-free immigration clearance system, renewable energy cooperation, and streamlined business approvals. Johor officials have suggested Iskandar Malaysia and the Pengerang district, known for its oil and gas development complex, as potential locations for the SEZ.

Every day, thousands of Malaysians commute to Singapore for work and study, causing significant traffic congestion on the causeway, one of the world's busiest land crossings. The SEZ is expected to ease this congestion and serve as a gateway for both Western and Eastern investors, including those from China.

The SEZ will combine Singapore's sophistication with Johor's cost and resource advantages, making it an attractive destination for investors. This development is set to boost economic cooperation and drive regional growth, enhancing the economic landscape of both Malaysia and Singapore.