Singapore and Malaysia to ink MOU on Johor-S’pore Special Economic Zone by early 2024

SINGAPORE: The Prime Ministers of Singapore and Malaysia enthusiastically welcomed the forthcoming Memorandum of Understanding (MOU) on the Johor-Singapore Special Economic Zone (JS-SEZ), scheduled for signing in January 2024.

In a joint statement issued following the 10th Singapore-Malaysia Leaders’ Retreat on Monday (30 Oct), Prime Minister Lee Hsien Loong and his Malaysian counterpart, PM Dato’ Seri Anwar Ibrahim, expressed their satisfaction with the progress made under the Joint Ministerial Committee for Iskandar Malaysia (JMCIM).

They highlighted advancements in various areas, including Industrial Cooperation, Immigration, Transportation Links, Innovation, Tourism, and Environment Work Groups.

Acknowledging the establishment of a special task force under JMCIM to study the JS-SEZ, both leaders emphasized the zone’s potential to boost economic connectivity by facilitating cross-border trade and investments.

During a joint press conference, PM Lee emphasized the comprehensive agenda of bilateral cooperation, particularly the collaborative development of the JS-SEZ.

“We intend to jointly develop a Johor-Singapore Special Economic Zone (JS-SEZ) which is a substantial and promising project, which will enhance the cross-border flow of goods and people, and strengthen the business ecosystem and will improve the economic attractiveness for both sides, for both Singapore and Johor.”

PM Lee stated that after the completion of the feasibility study, negotiations for an MOU would commence.

He expressed the hope that this could be accomplished by early next year, acknowledging the substantial work involved, particularly for the Ministry of Trade and Industry and the Malaysian Ministry of Economy. He emphasized the desire for a swift resolution.

Mr. Anwar added that Malaysia was committed to expediting the process and mentioned the ambitious timeline of reaching an agreement on the parameters and signing the MOU by January 11 2024.

He looked forward to having some form of understanding and arrangement by mid-January.

Datuk Seri Anwar’s visit to Singapore on Sunday for the retreat was a significant occasion, representing the first leader retreat meeting between him and PM Lee since the onset of the Covid-19 pandemic, despite their previous interactions during various official visits.

Mr Anwar also noted the substantial growth in investments from Singapore to Malaysia, with Singapore ranking as the top foreign investor in Malaysia during the first half of 2023.

Recognizing the uncertainties in the post-pandemic world, both leaders emphasized the need to enhance cooperation, particularly in economic links and people-to-people relationships.

The two countries pledged to build upon the agreements in digital and green economies signed during Mr Anwar’s earlier visit in January, seeking further mutually beneficial cooperation.

The leaders also reached an agreement to strengthen cooperation in renewable energy, potentially sourcing it from both peninsular and east Malaysia.

Given the shared commitment to a low-carbon and sustainable future, they are actively pursuing cross-border electricity trading.

Progress is being made on various connectivity initiatives, including the Rapid Transit System (RTS) Link project between Johor Bahru and Singapore, set to be completed by the end of 2026.

Efforts to alleviate congestion at land checkpoints were discussed, with Singapore introducing initiatives to improve cross-border travel efficiency while maintaining security.

Singapore is also in the process of redeveloping Woodlands Checkpoint to accommodate the anticipated long-term growth in cross-border commuters.

During the retreat, the leaders discussed the exchange of culture and heritage between the two countries, as well as agreements signed by respective economic agencies.

These agreements aim to strengthen collaboration among small and medium-sized enterprises and update the Malaysia-Singapore Business Development Fund. Additional details on the enhanced fund will be available from January 2024.

Outstanding bilateral issues, including maritime delimitation, reclamation at Pedra Branca, water, and airspace, were addressed. Both leaders emphasized their commitment to resolving these matters constructively, within the broader context of their overall relationship.

Importantly, they stressed that these issues should not negatively impact the overall relationship and the numerous positive areas of cooperation.

They expressed confidence in finding mutually beneficial solutions to these challenges.

The leaders confirmed that the next annual Leaders’ Retreat in 2024 would take place in Malaysia.