In efforts to drive greater economic integration and participation between Malaysia and Singapore, the prime ministers of the two countries have signed agreements – including six memoranda of understanding (MOUs) and one letter of intent (LOI) – to develop the Johor-Singapore Special Economic Zone (JS-SEZ), which would ultimately help promote both nations and attract investments.
Malaysian Prime Minister Datuk Seri Anwar Ibrahim highlighted the similarities between the two countries – such as the fact that both are governed by politically stable administrations with clear economic policies – would contribute to harmonising the collaboration between Malaysia and Singapore, and that both governments are selective in ensuring that investments align with future demands and priorities.
“That, by itself, is a great incentive for businesses other than financial incentives and infrastructure provided via the collaboration,” Anwar said.
At the same time, Singaporean Prime Minister Lawrence Wong said the initiative provides a message for investors to look at the complementarities between Johor and Singapore to leverage in the entire JS-SEZ ecosystem, as there are many strengths that can be harnessed from both sides that will enhance its value proposition and make JS-SEZ more competitive and attractive for businesses to operate from.
“On the Singapore side, we have engaged with many of our businesses and they are very keen to do more out of Johor. We already have existing incentives for businesses that want to expand overseas.
“We already have existing incentives for businesses from Singapore that want to expand overseas, so Singaporean businesses can tap into those incentives, market readiness programmes and grants in order to expand and operate in Johor that are synergized with their operations in Singapore,” he said.
Additionally, Wong pointed out that JS-SEZ would allow both countries to attract more global investments and create more jobs for the people within those two countries.
Specifically, the agreements between Malaysia and Singapore involve the field of carbon capture and storage, namely in cooperation in cooperative approaches under the Paris Agreement and cooperation in the field of urban development.
They also include an MOU on cooperation in the fields of social welfare, women and persons with disabilities’ empowerment, family, children and community development; an MOU on preventing and combatting transnational crimes as well as an MOU on cooperation in the field of higher education.
For the LOI, it is between the Singapore International Foundation (SIF) and Yayasan Guru Tun Hussein Onn (YGTHO) in regard to the Malaysia-Singapore English Volunteers Programme (MSEVP).
