KUALA LUMPUR, Jan 11 — Malaysia and Singapore have agreed to develop a passport-free travel system to allow better movement across the two countries’ border at the south of Johor.

In a joint statement today, the Ministry of Economy and Singapore’s Ministry of Trade and Industry said both governments have also signed a memorandum of understanding (MoU) for a Johor-Singapore Special Economic Zone (JS-SEZ) to strengthen economic ties between the state and the republic.

Under the agreement, both countries agreed to explore several initiatives among them the adoption and implementation of a passport-free QR code clearance system on both sides, to facilitate more expeditious clearance of people at land checkpoints.

Pursuant to the terms of the MoU, both nations acknowledged the necessity of augmenting the cross-border movement of goods and people, as well as fortifying the business landscape within the JS-SEZ.

Notably, Singapore secured its position as the second-largest foreign investor in Johor, contributing a significant 70 per cent to the Malaysian state's overall foreign direct investment in the manufacturing sector.

Apart from the passport-free travel, a construction of a comprehensive one-stop business and investment service centre will be built in Johor to simplify the application processes for various approvals and licences that Singaporean businesses need to establish a presence there.

Other plans include a digitised process for cargo clearance at land checkpoints, the co-organisation of an investor forum to gather feedback, the coordination of training and work-based learning initiatives to address talent skill gaps, the organisation of promotional events to boost trade and investment in the JS-SEZ, and the facilitation of renewable energy cooperation between the two nations.

The signing ceremony of the MoU was witnessed by Prime Minister Datuk Seri Anwar Ibrahim and Economy Minister Rafizi Ramli on Malaysia’s side and on Singapore’s side, the republic’s prime minister Lee Hsien Loong and its Minister of Trade and Industry Gan Kim Yong.

"The JS-SEZ presents an unprecedented opportunity to enhance the cross-border flow of goods and people, bolster the business ecosystem, and elevate the economic attractiveness of both Johor and Singapore.

"I have full confidence that this initiative will herald the commencement of a transformative chapter in our bilateral economic relations, fostering unparalleled connectivity and prosperity for both our great nations,” Rafizi said.

Gan said he welcomed the opportunity to work in Malaysia and urged both countries to seize the opportunity to grow together.

"The JS-SEZ underscores what Singapore and Malaysia can achieve when our governments and business communities work closely together.

"It will serve as a bridge for both sides to tap on each other’s complementary strengths and seize opportunities to grow together. I look forward to the JS-SEZ Agreement and the benefits for our businesses and people,” said Gan.