Malaysia, Singapore announce deal on Johor financial zone

By Danial Azhar

KUALA LUMPUR (Reuters) – Malaysia and Singapore introduced on Tuesday an settlement on a particular financial zone within the southern Malaysian state of Johor, aiming to assist funding and unencumber motion of products and folks between the international locations.

The Southeast Asian neighbours first agreed in precept to collectively develop the financial zone a yr in the past.

Tuesday’s settlement was introduced throughout a go to to Malaysia by Singapore Prime Minister Lawrence Wong and senior cupboard ministers.

“It is an essential undertaking … we will each be extra aggressive, improve our worth proposition, and collectively appeal to extra investments to our shores,” Wong instructed a joint press convention with Malaysian counterpart Anwar Ibrahim.

“When negotiating the settlement, each side have actively engaged stakeholders to make sure that the SEZ has the circumstances to assist our companies develop collectively for the long run.”

Anwar mentioned the SEZ was distinctive initiative because it was uncommon for 2 international locations to group up on a single undertaking.

The 2 international locations are aiming to draw high-value investments into Johor in sectors starting from manufacturing and logistics to tourism and power transition, Malaysia’s Financial Minister Rafizi Ramli instructed reporters. 

They’re concentrating on 50 tasks on the financial zone inside the first 5 years of its inception, and the creation of 20,000 expert jobs. 

Malaysia will arrange and handle an infrastructure fund to assist corporations seeking to arrange there, whereas Singapore will create its personal fund to facilitate investments and assist Singaporean corporations working in Johor, Rafizi mentioned. 

1000’s of Malaysians commute every single day to small however rich Singapore for work and research, inflicting frequent site visitors congestion on the causeway between the international locations, one of many world’s busiest border crossings.

The 2 leaders additionally invited proposals for high-speed rail between the 2 international locations, which Anwar mentioned needs to be led by the non-public sector, with restricted authorities involvement.