The proposed Johor-Singapore special economic zone (SEZ) should lead to smoother trips for people working on either side of the Causeway, Singapore Prime Minister Lee Hsien Loong said on Monday (Oct 30).
Lee said the SEZ aims to achieve “better and easier” arrangements for the flow of people who have to work both in Singapore and Johor.
“They can go in and go out, then the investor companies in the SEZ will be able to get the personnel they need and the right mix of professionals, skilled workers and other general workers,” he said.
Lee was speaking at a joint press conference with Malaysia Prime Minister Anwar Ibrahim at the end of the 10th Singapore-Malaysia Leaders’ Retreat, where the two leaders discussed areas of cooperation and outstanding bilateral issues.
He was asked about the priority areas of development for the SEZ, which is expected to improve infrastructure and connectivity, and bring about better jobs and livelihoods for the people of Johor and Singapore.
Plans for the SEZ were first announced in October as the countries sought to embark on a flagship project for economic cooperation. However, few operational details – including the SEZ’s precise location – have emerged as discussions continue.
Lee said on Monday that officials on both sides are conducting a feasibility study on the SEZ to determine interest from investors and market demand. Mr Anwar said a memorandum of understanding (MOU) on the SEZ is expected to be signed on Jan 11 next year.
“Preliminarily, I think there are three things you want to do. One, improve the flow of goods between the two sides because SEZ may mean special tax arrangements and bonded warehouses and therefore more easy border flows,” Lee said.
Lee said the SEZ should also enhance the investor ecosystem in Singapore as well as the Iskandar development region in Johor.
“We can make something meaningful for Iskandar as a place where investors will be focusing their attention, and it means that for companies in Singapore, they can think of having a presence on both sides and therefore having more flexibility and being able to do things which they couldn’t do if they were only in Singapore or only in Johor,” he added.
“So, we have great hopes. But first we have to do the feasibility study and we have to negotiate the MOU, and we’re hoping to have that done by early next year.”
Anwar said officials will try their best to accelerate the process, as he acknowledged the “very short timeline” to agree on the SEZ’s parameters.
