Malaysia and Singapore decided to collaborate in creating a special economic zone (SEZ) in the state of Johor in southern Malaysia to draw in investments and facilitate trade and travel, Reuters reported on Thursday.
The neighbours of Southeast Asia announced in a joint statement that they would strive towards a formal agreement, to collaborate on renewable energy and streamline processes ranging from business permits to border clearance.
Malaysia’s Economy Minister Rafizi Ramli stated, “The zone presents an unprecedented opportunity,” adding that it would strengthen business and benefit both countries’ economies by increasing the cross-border flow of people and goods.
According to the statement, from January to June 2022, Singapore accounted for approximately 70 per cent of Johor’s total foreign direct investment in manufacturing, making it the second-largest foreign investor in the state.
The project is estimated to cost about 10 billion ringgit ($2.2 billion), and it is also expected to be completed by 2026. Moreover, it’s expected to reduce traffic on the causeway between the neighbors, one of the busiest land crossings in the world.
Thousands of Malaysians travel to Singapore for work and school daily.
