• last year
Singapore and Malaysia are doing a feasibility study on the Special Economic Zone (SEZ) ecosystem enhancement between both countries, to find out what should be the focus of the economic zone moving forward.

Singapore Prime Minister Lee Hsien Loong said that during a joint press conference with Prime Minister Datuk Seri Anwar Ibrahim on Monday (Oct 30) that both countries will then sign a memorandum of understanding (MoU) based on the outcome of the study, which was hoped to be done by early next year.

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00:00 Excellencies, please exchange the documents.
00:07 [Applause]
00:11 Singapore and Malaysia's relations are strong, particularly on the economic front.
00:16 We are each other's second largest trading partner.
00:19 Investments from Singapore to Malaysia have grown tremendously,
00:23 and Singapore, in the first half of this year, was the top foreign investor in Malaysia.
00:30 In an increasingly uncertain post-pandemic world,
00:35 we need to enhance our cooperation, in particular our economic links and our people-to-people ties.
00:42 During the Prime Minister's introductory visit in January,
00:47 we signed two framework agreements, one on the digital economy and one on the green economy.
00:54 We will build on this promising start to pursue further win-win cooperation.
01:00 Within ASEAN, Singapore and Malaysia are working closely to strengthen regional collaboration
01:05 and the centrality of ASEAN, especially in the emerging areas of digital and green economies.
01:12 Bilaterally, we have a full agenda of cooperation.
01:16 We intend to jointly develop a Johor-Singapore Special Economic Zone,
01:21 which is a substantial and promising project,
01:24 which will enhance the cross-border flow of goods and people and strengthen the business ecosystem,
01:32 and will improve the economic attractiveness for both sides, for both Singapore and Johor.
01:38 Q. What is the potential scale and priority areas of development for the Johor-Singapore Special Economic Zone?
01:46 The potential scale and priority areas of development for the SEZ,
01:51 I think this is the subject of a study because we are now doing a feasibility study to see what we want the SEZ to focus on,
01:59 and where there is interest from investors and market demand.
02:06 Preliminarily, I think there are three things you want to do.
02:10 One, improve the flow of goods between the two sides,
02:14 because SEZ means Special Economic Zone, it may mean special tax arrangements and bonded warehouses,
02:21 and therefore more easy border flows.
02:25 Secondly, better, easier arrangements for flow of people who have to work on both sides of the causeway,
02:33 and they can go in and go out, and then the companies in the SEZ, the investor companies,
02:40 will be able to get the personnel they need and the right mix of professionals, skilled workers and other general workers.
02:50 And then thirdly, for the SEZ to enhance the ecosystem of the Iskandar Development Region, as well as of Singapore,
03:01 because with an SEZ, it makes something meaningful for Iskandar as a place where investors will be focusing their attention,
03:12 and it means that for companies in Singapore, they can think of having a presence on both sides,
03:18 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.
03:25 So we have great hopes, but first we have to do the feasibility study,
03:30 and we have to negotiate the MOU, and we are hoping to have that done by early next year.
03:36 But it's a lot of work, and MTI and the Ministry of Economy on the Malaysian side, I think they will have to scramble.
03:44 But we would like to see it done as soon as we can.
03:47 On the SEZ, as the Prime Minister has alluded to, we will try our level best to accelerate the process.
03:56 We have given a very short timeline to get them to agree on the parameters and sign the MOU by 11 January.
04:06 I hope that they can succeed, because I don't think it's too much of a complex problem,
04:11 because they have discussed it extensively, both Ministers have done so,
04:16 and I think we look forward to having some sort of arrangement, an agreement, or understanding by mid-January.
04:25 [Long pause]

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