Malaysia, Singapore announce Johor special economic zone deal

KUALA LUMPUR: Malaysia and Singapore announced an agreement on a special economic zone in Johor on Tuesday, aiming to support investment and free up movement of goods and people between the countries.

The neighbours first agreed in principle to jointly develop the economic zone a year ago. Tuesday’s agreement was announced during a visit to Malaysia by Singapore Prime Minister Lawrence Wong and senior cabinet members.

The two countries are aiming to attract high-value investments in sectors ranging from manufacturing and logistics to tourism and energy transition, economy minister Rafizi Ramli told reporters.

They are targeting 50 projects within the economic zone in 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.