30-10-2023 (SINGAPORE) On October 30, Singapore Prime Minister Lee Hsien Loong spoke about the prospective Johor-Singapore special economic zone (SEZ) and its potential to facilitate more efficient cross-border work arrangements. He emphasized the SEZ’s objective to establish “better and easier” procedures for individuals working in both Singapore and Johor.
The SEZ aims to streamline the movement of people who need to operate in both Singapore and Johor, fostering seamless travel and accessibility. According to Mr. Lee, this would benefit both investors and professionals, enabling them to obtain the necessary personnel, including skilled workers and other labor categories.
Mr. Lee’s remarks were delivered during a joint press conference with Malaysia Prime Minister Anwar Ibrahim, concluding the 10th Singapore-Malaysia Leaders’ Retreat. The leaders explored areas of cooperation and ongoing bilateral matters.
While discussing the SEZ’s development priorities, specific operational details, such as the SEZ’s precise location, are yet to be disclosed. Officials from both countries are conducting a feasibility study to gauge investor interest and market demand for this ambitious project. A memorandum of understanding (MOU) for the SEZ is expected to be signed on January 11 next year, as announced by Mr. Anwar.
The anticipated benefits of the SEZ encompass not only an enhanced flow of goods but also the fortification of the investor ecosystem in both Singapore and the Iskandar development region in Johor. This arrangement, Mr. Lee remarked, could make Iskandar an attractive focus for investors, providing companies in Singapore with the flexibility to operate on both sides of the border.
While expressing optimism about the project’s potential, Mr. Lee underlined the need to complete the feasibility study and negotiate the MOU before concrete progress can be made.
The discussion also touched on various outstanding bilateral issues, including maritime delimitation, reclamation at Pedra Branca, water supply, and airspace management. Mr. Lee emphasized the importance of addressing these matters within the broader context of the overall relationship between the two countries and not allowing them to hinder positive cooperation.
In response to these issues, Mr. Anwar expressed gratitude for Mr. Lee’s commitment to resolving longstanding concerns and the cooperation between both teams on contentious subjects. Mr. Anwar emphasized Malaysia’s dedication to supplying water to Singapore, suggesting that both countries should work together to enhance the capacity of the Johor River.
The two leaders also discussed the issue of airspace management, which is progressing well and has the potential for a win-win resolution. On the subject of reclamation activities at Pedra Branca, Mr. Anwar referred to the forthcoming discussions and expressed his appreciation for Prime Minister Lee’s agreement to consider Malaysia’s arguments.
Mr. Anwar’s participation marked his first retreat in his current capacity as prime minister, and his third official visit to Singapore. The leaders also emphasized their commitment to cooperation in renewable energy and the development of small- and medium-sized enterprises. Their collaboration on these fronts holds the promise of bolstering economic ties and promoting sustainable growth.
