Malaysia and Singapore have agreed to deepen cooperation on supply chain resilience and the halal economy, while building on existing digital and green economy initiatives, following the third annual ministerial dialogue between their trade ministries.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani and Singapore Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong co-chaired the meeting in Kuala Lumpur on Thursday.
A key outcome was the endorsement of the terms of reference for the Malaysia-Singapore Supply Chain Cooperation Workgroup, which will serve as a bilateral mechanism for handling future supply disruptions.
The workgroup will facilitate regular information-sharing and joint planning, strengthen crisis coordination and explore ways to keep essential goods and workers moving across the border during severe connectivity or supply disruptions, subject to each country’s laws and policies.
Both countries also agreed to explore deeper cooperation, capacity building and investment across halal-related industries.
Singapore was Malaysia’s second-largest halal export destination in 2025, with exports worth RM7.1 billion, according to the joint statement.
Malaysia and Singapore are also continuing discussions on the mutual recognition of halal certification, with both sides encouraged to work towards a formal arrangement that could facilitate trade.
Potential areas for cooperation include food processing, halal ingredients, alternative proteins, cosmetics and cold-chain logistics, including possible linkages between Singapore companies and Malaysia’s HALMAS-certified halal parks.
Economic ties between both countries remained substantial in 2025, with Singapore ranking as Malaysia’s second-largest trading partner globally and its largest within ASEAN.
Malaysia-Singapore trade reached RM402.8 billion in 2025, up 1.6% from the preceding year, according to the Department of Statistics Malaysia.
Singapore was also Malaysia’s largest source of foreign direct investment among ASEAN countries in 2025, with investments totalling RM53.4 billion.
The ministers also marked the completion of the three-year Digital Economy and Green Economy Frameworks of Cooperation, which were established to advance practical bilateral initiatives.
Digital economy initiatives included the Authorised Economic Operator Mutual Recognition Arrangement, the cross-border DuitNow-NETS QR payment linkage, PayNow-DuitNow real-time transfers and cooperation on cross-border e-invoicing.
The frameworks originally covered areas including digital trade facilitation, cross-border payments, digital identities and interoperable standards, alongside green-economy cooperation in areas such as low-carbon technologies and carbon markets.
Under the green economy pillar, the countries highlighted cooperation on sustainability capacity building, Article 6 carbon-market collaboration and cross-border carbon capture and storage.
Future cooperation will continue through bilateral agencies and platforms including the Johor-Singapore Special Economic Zone and the ASEAN Digital Economy Framework Agreement.
The two countries also agreed to continue supporting the Malaysia-Singapore Third Country Business Development Fund, which helps companies from both countries jointly pursue business opportunities in overseas markets.
Both ministers said continued cooperation would focus on improving economic resilience, competitiveness and business connectivity amid greater global trade and supply-chain uncertainty.
