SG, Malaysia ink MoU on special economic zone

The countries will also work on seven more initiatives related to the economic zone.

The Ministry of Trade and Industry and its Malaysian counterpart have inked a memorandum of understanding (MoU) to strengthen the economic activity between Johor and Singapore.

The MoU will establish the Johor-Singapore Special Economic Zone (JS-SEZ), allowing cross-border flows of goods and people between the two countries.

Apart from the MoU, Singapore and Malaysia also vowed to work on other initiatives that will build towards the JS-SEZ, including:

• A one-stop business/investment service centre in Johor to facilitate the application processes for various approvals and licenses necessary for Singapore businesses to set up in Johor;
• Adoption/implementation of a passport-free QR code clearance system on both sides, to facilitate the more expeditious clearance of people at land checkpoints;
• Adoption of digitised processes for cargo clearance at the land checkpoints;
• Co-organising an investors forum to gather feedback from Singapore and Malaysia businesses on the JS-SEZ;
• Facilitating Malaysia-Singapore renewable energy cooperation in JS-SEZ;
• Curating training and work-based learning initiatives to address talent and skills gaps for relevant industries in JS-SEZ; and,
• Developing joint promotion events between Johor and Singapore to promote trade and investment into JS-SEZ.

In 2022, bilateral trade between Singapore and Malaysia grew 18.9% YoY to $153b. Singapore was also Malaysia’s top source of foreign direct investment (FID), contributing 20.5%.