KUALA LUMPUR: Malaysia and Singapore have agreed to jointly develop the Johor - Singapore Special Economic Zone (SEZ).
Singapore Prime Minister Lee Hsien Loong said the SEZ is a substantial and promising project which will enhance the cross border flow of goods and people and strengthen the business ecosystem between the two countries.
"This will improve the economic attractiveness for both sides for Singapore and Johor," he said.
Elaborating further on the SEZ, he said a feasibility study will be carried out by the Joint Ministerial Committee for Iskandar Malaysia (JMCIM) to identify the focus of the zone especially on the interest from the investors and the market demand.
He said that as SEZ will improve flow of goods between the two countries, it needs special tax arrangements and bonded warehouses.
The study should also find an easier arrangement of the flow of people who will be working on both sides with investor companies that would want to prepare a mix of personnel including professional and skilled workers as well as general workers.
"SEZ will also enhance the ecosystem of the Iskandar Development Region and also in Singapore.
"SEZ can make something meaningful for Iskandar as a place for investors while companies in Singapore can think of having a presence on both sides for better flexibility," he added.
Prime Minister Datuk Seri Anwar Ibrahim said they were expecting to ink the Memoranda of Understanding on the parameters by Jan 11 next year.
He said that Malaysia will accelerate the process since there is a shorter timeline before SEZ comes to fruition.
"We look forward to arrangements and the agreement by mid-January," he added.
A joint statement issued later said the SEZ will tap into the complementary strengths of both countries to foster economic connectivity by improving cross-border flows of goods, investments, and people.
The Leaders also commended the Industrial Cooperation Work Group and agencies from both countries for working together closely to facilitate high-profile investments into and creating jobs in Iskandar Malaysia.
Singapore is the second largest foreign investor in Iskandar Malaysia, with SGD 9.5 billion or RM 33 billion worth of investments committed between 2006 and June this year, the statement said.