Trade

Singapore, Malaysia Ink Deal Creating New Vast Economic Zone

Both nations aim to promote 100 projects in first ten years
Analyst says economic zone’s main draw likely to be tax breaks

The Johor Bahru–Singapore Rapid Transit System (RTS) Link under construction in Johor Bahru, Malaysia. Spanning over 3,500 square kilometers (1,350 square miles), the special economic zone is expected to be more than four times larger than Singapore and nearly twice the size of China’s Shenzhen — The Johor Bahru–Singapore Rapid Transit System (RTS) Link under construction in Johor Bahru, Malaysia. Spanning over 3,500 square kilometers (1,350 square miles), the special economic zone is expected to be more than four times larger than Singapore and nearly twice the size of China’s Shenzhen
Photographer: Samsul Said/Bloomberg

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By Ram Anand and Anisah Shukry

January 6, 2025 at 11:00 PM UTC

Updated on

January 7, 2025 at 4:10 AM UTC

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The leaders of Malaysia and Singapore formalized an agreement establishing a special economic zone linking their two nations’ border region, with the aim of attracting 50 projects in the first five years of its establishment.

Malaysia Prime Minister Anwar Ibrahim and Singapore Prime Minister Lawrence Wong officiated a ceremony on Tuesday for the economic zone in Malaysia’s southern state of Johor — which shares one of the world’s busiest border crossings with Singapore. The signing was postponed to January after Wong contracted Covid.