Malaysia and Singapore have announced plans to establish a special economic zone at the Johor-Singapore border, to increase investment opportunities and streamline people and goods movements. The zone, located in Malaysia’s southern Johor state and connected to Singapore by a bustling causeway, will benefit from one of the world’s busiest land border crossings, which is utilised by over 300,000 people every day.
The zone, which spans 3,571 square kilometres—nearly five times the size of Singapore—provides Singaporean enterprises with much-needed expansion space, access to low-cost labour, and a wider talent pool. For Malaysia, the program improves access to Singapore’s world-class maritime and air connectivity. Singapore’s Prime Minister Lawrence Wong praised the project as an opportunity to “jointly attract more investments,” highlighting both countries’ complementing assets.
Malaysia’s economic minister, Rafizi Ramli, proposed incentives like tax exemptions, subsidies, and streamlined procedures, with the goal of creating 20,000 skilled jobs through 50 projects over the next five years. Furthermore, infrastructure funds and specific support mechanisms will encourage enterprises to start operations.
Meanwhile, Singapore is still open to reviewing proposals for a high-speed rail link that was shelved in 2021, highlighting the region’s collaborative attitude.