KUALA LUMPUR, Jan 7 — Malaysia and Singapore announced today an agreement on a special economic zone in the southern Malaysian state of Johor, aiming to support investment and free up movement of goods and people between the countries.
The South-east Asian neighbours first agreed in principle to jointly develop the economic zone a year ago. Today’s agreement was announced during a visit to Malaysia by Singapore Prime Minister Lawrence Wong and senior cabinet ministers.
The two countries are aiming to attract high-value investments in sectors ranging from manufacturing and logistics to tourism and energy transition, Malaysia’s Economic Minister Rafizi Ramli told reporters.
They are targeting 50 projects at the economic zone within the first five years of its inception, and the creation of 20,000 skilled jobs.
Malaysia will set up and manage an infrastructure fund to support companies looking to set up there, while Singapore will create its own fund to facilitate investments and support Singaporean companies operating in Johor, Rafizi said.
Thousands of Malaysians commute every day to small but wealthy Singapore for work and study, causing frequent traffic congestion on the causeway between the countries, one of the world’s busiest border crossings. — Reuters
