SINGAPORE and Malaysia have formed a new task force to study the establishment of a Johor-Singapore special economic zone (JS-SEZ).

Minister for National Development Desmond Lee announced this on Friday (Jul 14) at the 16th meeting of the Malaysia-Singapore Joint Ministerial Committee for Iskandar Malaysia (JMCIM). The meeting was co-chaired by Lee and Malaysia’s Economy Minister Rafizi Ramli. 

Also in attendance were Singapore’s Acting Minister for Transport Chee Hong Tat and Johor’s Menteri Besar Onn Hafiz Ghazi, as well as senior officials from both countries. 

In a joint press statement, the JMCIM said the task force will be led by Singapore’s Ministry of Trade and Industry and Malaysia’s Ministry of Economy, with the support of relevant government agencies in both countries. 

The task force’s first order of business will be to draft the terms of reference and broad areas of collaboration. 

The JMCIM noted that the JS-SEZ will build on “the strong growth of Johor and significant investments in the region by Singapore”. 

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Johor had recorded RM70.6 billion (S$20.6 billion) worth of foreign investments in 2022, across sectors including electrical and electronics, medical equipment, food manufacturing and data centres. Singapore was its second-largest foreign investor, contributing around 70 per cent of its total foreign direct investment in the manufacturing sector, said the JMCIM.

The committee added that JS-SEZ will also build on the foundation set by various work groups, covering areas such as industrial cooperation, environment, innovation, tourism, immigration and transportation links. This is mainly in driving growth in a sustainable manner, developing human capital and improving infrastructure and cross-border connectivity, it said. 

For instance, the industrial cooperation work group has been involved in attracting investments worth RM5.1 billion since pandemic restrictions were lifted. This is expected to create some 1,700 quality, well-paying jobs in Iskandar Malaysia, said the committee. 

Both sides will also continue studying ways to develop technical and vocational training programmes to meet the industry’s demand for skilled talent in Iskandar Malaysia, it said. This could potentially be done through link-ups betweens institutes of higher learning in Johor and Singapore, it added. 

To strengthen the existing rail connectivity, the JMCIM noted that the transportation links work group has agreed in principle to increasing the frequency of the Keretapi Tanah Melayu (KTM) Tebrau Shuttle Service – from 31 train trips daily to 36. 

“The new schedule will commence once agencies on both sides work out further details,” said the committee. Meanwhile, there is “good progress of works” at the Johor Bahru-Singapore Rapid Transit System Link on both sides, it added. 

At a doorstop interview with the media, Lee highlighted that the JS-SEZ will be beneficial to both nations, “not just in enhancing the economy and providing tremendous value proposition that builds on the strength and attractiveness of both Johor and Singapore, but it will bring tangible benefits in terms of jobs (and) livelihoods”.

Updates on the task group’s progress will be shared when the two nations meet for the next Singapore-Malaysia Leaders’ Retreat later this year, he added.

The JMCIM is scheduled to next meet in 2024 in Malaysia.