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Singapore and Malaysia Accelerate Plans for Border Economic Zone, Memorandum of Understanding Expected by January

Strategic Initiative to Boost Economic Ties Targets Improved Border Infrastructure and Connectivity, Enhanced Investor Ecosystem, and Livelihoods in Johor and Singapore.

  • Singapore and Malaysia are expected to sign a Memorandum of Understanding by January to develop a cross-border economic zone between the city-state and Johor Bahru, with the aim of easing regular cross-border travel and boosting economic ties.
  • The proposed special economic zone, described as a 'substantial and promising project', is seen as a signal of a 'diplomatic and collaborative' approach by both countries, and is predicted to enhance the flow of goods and people, attracting investors in areas such as healthcare, electronics and finance.
  • During the leaders' retreat, the prime ministers of both countries also discussed other areas of cooperation including land connectivity, longstanding territorial disputes and additional projects like the Iskandar Malaysia project.
  • The Johor-Singapore Rapid Transit System Link, expected to commence in 2026, was emphasized as a major initiative aimed to reduce congestion on the busy overland borders, capable of transporting up to 10,000 passengers per hour each way.
  • In the broader context of bilateral relations, both leaders agreed that outstanding issues, including maritime delimitation, reclamation at Pedra Branca, water, and airspace, should not detract from the many positive areas of cooperation, and expressed commitment to finding mutually beneficial ways forward.
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