PETALING JAYA: Development of the Johor-Singapore Special Economic Zone (SEZ) is underway with a memorandum of understanding signed between Malaysia and Singapore today.

Prime Minister Anwar Ibrahim and Singaporean Prime Minister Lee Hsien Loong witnessed the signing of the Memorandum of Understanding by Economy Minister Rafizi Ramli and Singapore’s Trade and Industry Minister Gan Kim Yong.

The Ministry of Economy and Singapore’s Ministry of Trade and Industry said in a statement that the two governments will work toward finalizing a full-fledged agreement on the special economic zone.

The two governments will consider establishing a one-stop business and investment center to process applications for various permits and licenses for Singaporean companies to set up shop in Johor.

It will also consider digitizing the cargo clearance process, organizing an investor forum for feedback on SEZs, and organizing “work-based learning initiatives” for related industries in the SEZ that are facing talent shortages. It’s planned.

Mr Bernama said Mr Anwar also hosted a luncheon for Mr Lee and his delegation, who had earlier attended a ceremony to mark the completion of the Johor Bahru-Singapore rapid transit system link.

The two countries are partnering to create a special economic zone adjacent to Singapore’s border to foster stronger business ties and improve connectivity between the two countries, as the Southeast Asian region seeks to combat the global economic slowdown.

The SEZ was initially discussed by Rafizi after talks with the Johor state government in Iskandar Puteri in May last year. The two countries agreed to take the next step by establishing a special committee to consider establishing a special economic zone in two months.

The SEZ is also expected to improve the business ecosystem of both the Iskandar Malaysia region and Singapore.

Sectors targeted by the SEZ include electronics, financial services, business-related services, and healthcare.

Last year, Johor secured foreign investments worth RM70.6 billion in various sectors.

Singapore is the second largest foreign investor in Johor, accounting for approximately 70% of total foreign direct investment in manufacturing in Johor.