After years of delays, Malaysia, Singapore finalise vast SEZ

The region will include Johor’s development zones of Iskandar Malaysia and Pengerang, spanning an area nearly twice the size of Shenzhen

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Singapore’s Prime Minister Lawrence Wong (left) with his Malaysian counterpart Anwar Ibrahim in Putrajaya, Malaysia, on Tuesday. Photo: AP

Published: 10:48am, 7 Jan 2025Updated: 3:11pm, 7 Jan 2025

Malaysia and Singapore on Tuesday signed a deal to establish the Johor-Singapore Special Economic Zone (JS-SEZ) after multiple delays, as the two nations seek to develop a new economic growth area centred on one of the busiest land crossings in the world.

Modelled after China’s Shenzhen Special Economic Zone, the JS-SEZ will provide tax breaks and ease the transit of goods and people between Johor and Singapore, which are separated by a 1km (1,094-yard) causeway.

The southern Malaysian state of Johor has ample land and resources, coveted by Singapore for its energy-hungry data centres, while the city state’s multinational firms have capital and skilled workers seeking footholds beyond the expensive land-starved financial hub.

Johor is also desperate for an economic shot in the arm forecast to be worth nearly US$6 billion annually over the next six years, once new infrastructure, condos and jobs pour into an area long in the doldrums.

Malaysian Prime Minister Anwar Ibrahim and his Singaporean counterpart Lawrence Wong witnessed the signing of the JS-SEZ agreement on Tuesday at the end of their annual leaders’ retreat, hosted this year by Malaysia.

The JS-SEZ will include Johor’s development zones of Iskandar Malaysia and Pengerang in the state’s south and eastern regions, covering a land area of around 3,500 sq km (1,350 square miles) – nearly twice the size of Shenzhen.

Malaysian Prime Minister Anwar Ibrahim and his cabinet ministers (right) hold talks with Singaporean leader Lawrence Wong and his delegation in Putrajaya on Tuesday. Photo: Reuters