Singapore, Malaysia sign agreement on Johor-Singapore Special Economic Zone

Both countries aim to attract investments in sectors such as manufacturing, logistics, and renewable energy.

Singapore and Malaysia have signed the Johor-Singapore Special Economic Zone (JS-SEZ) Agreement to boost economic collaboration.

The deal, signed by Singapore’s Deputy Prime Minister Gan Kim Yong and Malaysia’s Economy Minister Rafizi Ramli and on 6 January 2025, in Kuala Lumpur, was exchanged at the 11th Malaysia-Singapore Leaders’ Retreat in Putrajaya, witnessed by Prime Ministers Anwar Ibrahim and Lawrence Wong.

The JS-SEZ covers the Iskandar Development Region and Pengerang, focusing on economic cooperation, smoother cross-border movement, business facilitation, and talent development.

Both countries aim to attract investments in 11 sectors, including manufacturing, logistics, tourism, renewable energy, and digital economy, whilst creating 20,000 skilled jobs within the next decade. They also plan to develop renewable energy projects and explore new free zones to enhance economic activity.

Measures to improve cross-border movement include increasing clearance capacity, introducing automated lanes, adopting paperless goods clearance, and strengthening local transport links.

Both countries will also study expanding the use of the Second Link for commercial vehicles and explore data-sharing to simplify customs processes.

For talent development, Malaysia and Singapore will align skills training with industry needs, attract skilled workers, and establish the Invest Malaysia Facilitation Centre – Johor (IMFC-J) as a one-stop hub for investments in the JS-SEZ.

Malaysia will also offer tax incentives, including special corporate tax rates for high-value investments.

The Joint Ministerial Committee for Iskandar Malaysia (JMCIM) will be refreshed to oversee JS-SEZ implementation and boost cooperation in transport and environmental initiatives.