Malaysia and Singapore Announce Johor Special Economic Zone Deal
Aiming to Support Investment and Free Up Movement of Goods and People
KUALA LUMPUR: Malaysia and Singapore announced an agreement on a special economic zone (SEZ) in Johor on Tuesday, aiming to support investment and free up movement of goods and people between the countries.
Joint Development Project
The neighbours first agreed in principle to jointly develop the economic zone a year ago. Tuesday’s agreement was announced during a visit to Malaysia by Singapore Prime Minister Lawrence Wong and senior cabinet members.
Enhancing Competitiveness
“It’s an important project… we can both be more competitive, enhance our value proposition, and jointly attract more investments to our shores,” Wong told a joint press conference with counterpart Anwar Ibrahim.
“When negotiating the agreement, both sides have actively engaged stakeholders to ensure that the SEZ has the conditions to help our businesses grow together for the longer term.”
Targeting High-Value Investments
The two countries are aiming to attract high-value investments in sectors ranging from manufacturing and logistics to tourism and energy transition, economy minister Rafizi Ramli told reporters.
Key Targets
They are targeting 50 projects within the economic zone in the first five years of its inception, and the creation of 20,000 skilled jobs.
Infrastructure and Investment Funds
Malaysia will set up and manage an infrastructure fund to support companies looking to set up there, while Singapore will create its own fund to facilitate investments and support Singaporean companies operating in Johor, Rafizi said.
Conclusion
The Johor special economic zone deal is a significant step forward in strengthening economic ties between Malaysia and Singapore. The agreement is expected to attract high-value investments, create jobs, and enhance the competitiveness of both countries.
FAQs
Q: What is the purpose of the Johor special economic zone?
A: The purpose is to support investment and free up movement of goods and people between Malaysia and Singapore.
Q: What sectors will the economic zone focus on?
A: The economic zone will focus on sectors such as manufacturing, logistics, tourism, and energy transition.
Q: What are the key targets for the economic zone?
A: The key targets are to attract 50 projects within the first five years and create 20,000 skilled jobs.
Q: How will the infrastructure and investment funds work?
A: Malaysia will set up and manage an infrastructure fund, while Singapore will create its own fund to facilitate investments and support Singaporean companies operating in Johor.