After years of delays, Malaysia, Singapore to finalise vast SEZ

After years of delays, Malaysia, Singapore to finalise vast SEZ

The leaders of Malaysia and Singapore are set to sign a long-delayed deal to establish the Johor-Singapore Special Economic Zone (JS-SEZ), a vast free-trade area allowing movement of skilled workers along one of the busiest borders in the world.

Modelled after the 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 the 1km 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.

Singapore’s Lawrence Wong and Malaysian PM Anwar Ibrahim greet each other ahead of a meeting in Putrajaya last year. Photo: AFP/ Malaysia’s Department of Information

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

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