Singapore and Malaysia will jointly establish a special economic zone in the border area between the two countries in the hope that the two countries can benefit from closer business ties and better connectivity under the pressure of the weak global economy.。

Singapore-Malaysia Leaders Meet to Reach Special Economic Zone Cooperation Intention

On Monday (October 30), Malaysian Prime Minister Anwar Ibrahim went to Singapore to attend the 10th Singapore-Malaysia Leaders' Informal Summit to discuss cooperation matters with Singapore Prime Minister Lee Hsien Loong (Lee Hsien Loong)。The two countries allegedly plan to establish a special economic zone in the Malaysian state of Johor State, which faces Singapore across the border.。

At a joint press conference after the meeting, the two leaders issued a joint statement on the special economic zone, which "will take advantage of the complementary advantages of the two countries to promote economic connectivity by improving the cross-border movement of goods, investment and people."。In addition, the progress of energy cooperation between the two sides in the areas of sharing low-carbon and renewable energy technologies, carbon capture and storage, and carbon credits was also mentioned.。

Prime Minister Anwar said the two sides intend to sign a memorandum of understanding on the special economic zone on January 11, 2024.。According to Prime Minister Lee Hsien Loong, the Rou Hsien Loong Special Economic Zone is a "major and potential project" that will facilitate the movement of goods and people across borders, optimize the business ecosystem and enhance the economic attractiveness of the two places.。

Singapore-Malaysia study in progress: Is Ju Sin SAR feasible？

It is understood that the Johor - Singapore Special Economic Zone is expected to be located in Malaysia's Iskandar Special Zone (Iskandar), located near the second pass of Singapore and Malaysia, under normal circumstances, the government will give special policies and preferential conditions in the special economic zone to attract enterprises and investors to move in and promote the economic development of the special zone.。

In terms of the potential size and key priority areas of the special economic zone, the feasibility study of Xinma initially focuses on three points:

1.enhancing the bilateral flow of goods, and special tax arrangements and bonded warehouses will be granted within the sar;

2.improve the living environment of workers on both sides of the strait and reduce the problem of "difficulty in recruiting" for enterprises in the special zone;

3.Enhancing the business environment in Iskandar and Singapore, allowing companies to set up offices in both areas for greater flexibility。

In addition, the country is trying to improve the capital attractiveness of the place to promote the development of industries such as electronics, healthcare and financial and business-related services.。

People familiar with the matter said that the location of the soft new special economic zone is better to have flexible land with certain development space, and to carry out infrastructure construction as a medium- and long-term development goal, in order to maximize economic benefits and radiate the surrounding areas.。

"If we can follow the previous model of attracting capital through private joint ventures, or if we can attract more foreign direct investment from start-ups," experts said, "the government must plan the public transport system, including the Xinma MRT, trams, buses and other transport networks, in order to connect with the nearby international airport and port.。"

Singapore is Malaysia's largest investor

According to statistics, Singapore and Malaysia were each other's second largest trading partners in 2022, with bilateral trade reaching 835 last year..300 million dollars。In the same year, Singapore was also one of Malaysia's largest sources of foreign direct investment, accounting for 8% of Malaysia's total investment in that year..3%。

Earlier this month, the International Monetary Fund projected global growth of just 3 percent this year, up from 2 percent in 2024..9%, down from 3 in 2022.5%。Both countries have faced slowing exports over the past few months, weighing on the economy。

Singapore Prime Minister Lee Hsien Loong said at a press conference: "In an increasingly uncertain post-epidemic world, we need to strengthen cooperation on all fronts, and the SAR will enhance the cross-border movement of goods and people and strengthen the business ecosystem.。"

Singapore and Malaysia also agreed to jointly develop renewable energy and cross-border power deals as both countries focus on sustainable energy in the context of the growing urgency of the climate crisis.。During Prime Minister Anwar's visit to Singapore in January this year, the two countries signed two cooperation framework agreements on the digital economy and the green economy, and updated the Malaysia-Singapore Business Development Fund.。

Not only that, Singapore is planning to import renewable energy from Malaysia's Sarawak State, which is also exploring the feasibility of building new cross-border power cables with its neighbors.。Recently, the two sides upgraded some existing power cables to increase energy flow.。