Singapore, Malaysia to develop border economic zone, in sign of ‘collaborative’ boost to ties

The Johor-Singapore special economic zone is aimed at attracting investment to the area and enhancing the flow of goods and people across borders

Analysts say the retreat shows ‘encouraging’ signs of diplomatic discussion over territorial differences and ‘commitment’ to earlier cooperation initiatives

Reading Time:4 minutes

Malaysia’s Prime Minister Anwar Ibrahim (left) shakes hands with Singapore’s Prime Minister Lee Hsien Loong after a joint press conference at the Istana in Singapore on Monday. Photo: Pool/AFP

Published: 9:22pm, 30 Oct 2023Updated: 10:43pm, 30 Oct 2023

Plans to accelerate a cross-border economic zone are signs of a “diplomatic and collaborative” approach by Singapore and Malaysia to deepen relations, analysts said.

Prime Minister Lee Hsien Loong described the Johor-Singapore special economic zone as a “substantial and promising project” during a leaders’ retreat with Malaysian counterpart Anwar Ibrahim in the city state on Monday, saying both countries expected to sign a memorandum of understanding as early as January.

Johor Bahru, capital city of the southern Malaysian state of Johor, is about 25km north from Singapore, and Lee said the project would enhance the flow of goods and people across the border and boost economic attractiveness.

“We have great hopes. But first we have to do the feasibility study, and we have to negotiate the MOU, and we’re hoping to have that done by early next year,” Lee said during a press conference at the 10th Singapore-Malaysia Leaders’ Retreat. “It’s a lot of work … but we would like to see it done as soon as we can.”

Analysts said the tone and outcome of the leaders’ retreat indicated that bilateral ties were headed in a positive direction, and were optimistic that both countries would be able to deepen cooperation in areas such as the special economic zone.