Leaders from Malaysia and Singapore are set to meet later this month to finalize the terms of reference for a proposed special economic zone (SEZ), with Johor expected to be the main beneficiary compared to other states in Malaysia.
Johor’s investment, trade, and consumer affairs committee chairman, Lee Ting Han, emphasized the significance of the SEZ for Johor in reigniting people’s imagination over the Iskandar Malaysia area and attracting more investors to the region.
Iskandar Malaysia comprises approximately 2,300 square kilometers and includes five local authorities: the Johor Baru City Council, Iskandar Puteri City Council, Pasir Gudang City Council, Kulai Municipal Council, and Pontian Municipal Council.
Last year, Johor received approved investments totaling RM70.6 billion, the highest in Malaysia. Selangor followed with RM60.1 billion, Sarawak with RM28.2 billion, Kuala Lumpur with RM25 billion, and Penang with RM16.3 billion.
Lee stated that both Malaysia and Singapore are currently holding internal discussions to outline the details of the SEZ.
He explained, “The stakeholders on the Malaysian side, which include the Johor state government, Iskandar Regional Development Authority, the Investment, Trade, and Industry Ministry, and other relevant departments, are now having a series of meetings to discuss what we want to see from the SEZ.”
Similarly, the Singapore side is engaging in similar discussions. At the end of the month, both parties will meet to discuss key areas and possibilities of the SEZ, ultimately finalizing the terms of reference together.
Once agreed upon, Prime Minister Datuk Seri Anwar Ibrahim and his Singapore counterpart, Prime Minister Lee Hsien Loong, will sign the terms of reference.
Lee expressed hopes that the terms of reference can be signed during the meeting as a symbol of strong political commitment toward realizing the SEZ. Further discussions will then take place between the two countries to iron out the details, including the physical or conceptual form of the SEZ, regulations, and other essential elements.
The meeting at the end of the month is expected to be attended by Johor Mentri Besar Datuk Onn Hafiz Ghazi and Economy Minister Rafizi Ramli.
Dr. L. Nanthakumar from Universiti Teknologi Malaysia’s Azman Hashim International Business School emphasized that the SEZ would help Johor maintain its position as the top investment beneficiary in Malaysia.
He added, “With the current situation, we cannot estimate yet how much investment Johor can receive if the SEZ were to be successful. But it may enable Johor to gain more investment through new sources.”
Dr. Nanthakumar also suggested that Malaysia and Singapore focus on renewable and non-renewable energy within the SEZ, addressing the Sustainable Development Goals and setting an example for other states to follow suit.
In June, it was revealed that Johor recorded trade worth RM247.592 billion in the first four months of the year, making it the largest contributor to the country’s overall trade amount. Onn Hafiz stated that through the 16th Malaysia-Singapore Joint Ministerial Committee for Iskandar Malaysia, both countries agreed to create a special task force to study the establishment of the SEZ.
Last May, Economy Minister Rafizi mentioned that the Malaysian government was considering making Johor a special economic zone alongside Singapore. Discussions between Malaysia and Singapore on this matter have taken place, but no formal agreement has been reached yet.
Credit: The Star : News Feed
