7-1-2025 (KUALA LUMPUR) Malaysia and Singapore have inked a groundbreaking agreement to establish a Special Economic Zone (SEZ) in Johor, marking a significant step towards enhanced bilateral trade relations and investment opportunities.
The historic accord, unveiled during Singapore Prime Minister Lawrence Wong’s diplomatic visit to Malaysia on Tuesday, builds upon the preliminary framework established between the two nations last year. The initiative aims to streamline cross-border commerce and facilitate smoother movement of goods and workforce.
Speaking at a joint press briefing, Prime Minister Wong emphasised the strategic significance of the partnership. “This collaboration strengthens our collective competitive edge and enhances our ability to attract international investments,” Wong remarked, alongside his Malaysian counterpart, Prime Minister Anwar Ibrahim.
The unprecedented nature of the partnership was highlighted by Prime Minister Ibrahim, who noted the exceptional character of two sovereign nations collaborating on a unified economic venture of this scale.
Malaysian Economy Minister Rafizi Ramli outlined ambitious targets for the initiative, including the establishment of 50 major projects within the first five-year period and the creation of 20,000 skilled employment opportunities. The SEZ will encompass diverse sectors, from advanced manufacturing and logistics to sustainable energy solutions and tourism development.
To support this vision, both nations have committed to establishing dedicated financial mechanisms. Malaysia will spearhead an infrastructure fund to support enterprise development within the zone, whilst Singapore will institute a parallel funding structure to facilitate Singaporean business operations in Johor.
