JOHOR BAHRU — People travelling between Singapore and Johor in Malaysia may soon be able have passport-free clearance on both sides of the border, as well as digitised processes for cargo clearance at the land checkpoints.

These are among the "early initiatives" being explored leading up to a new Johor-Singapore Special Economic Zone, which aims to boost cross-border economic connectivity between Singapore and Malaysia.

A Memorandum of Understanding (MOU) was signed on Thursday (Jan 11) between both countries to develop a framework for a legally binding agreement on the economic zone.  

The MOU was signed in Johor Bahru by Singapore’s Trade and Industry Minister Gan Kim Yong and Mr Mohd Rafizi Ramli, Malaysia’s Minister of Economy.

Prime Minister Lee Hsien Loong and his Malaysian counterpart Anwar Ibrahim witnessed the signing.

Singapore's Ministry of Trade and Industry (MTI) and Malaysia’s Ministry of Economy said that under the MOU, both countries will explore several initiatives that will "build towards" the special zone, including quicker clearance of people at land checkpoints, and facilitating renewable energy cooperation between Malaysia and Singapore.

In a joint statement, the ministries added that the MOU, which comes two months after the 10th Singapore-Malaysia Leaders’ Retreat last October, "reaffirms the longstanding ties and joint commitment by both countries to strengthen economic cooperation".

Both sides also agreed to work towards a full-fledged agreement on the economic zone and provide an update at the 11th Malaysia-Singapore Leaders’ Retreat, to be held in Malaysia later this year. 

Both countries had first announced that they would set up a task force to study establishing an economic zone at the 16th meeting of the Malaysia-Singapore Joint Ministerial Committee for Iskandar Malaysia in July last year.

Three months later, at the Singapore-Malaysia Leaders’ Retreat in Singapore, Mr Lee described the proposed zone as a "substantial and promising project" which, among other things, should lead to smoother trips for people working on either side of the Causeway, one of the world's busiest border crossings.

WHAT TO EXPECT UNDER THE ECONOMIC ZONE

The two countries will "explore work on several initiatives that will build towards" the economic zone, the joint statement said.

These are:

• A one-stop business or investment service centre in Johor
• Implementing a passport-free QR code clearance system on both sides
• Digitised processes for cargo clearance at the land checkpoints
• Co-organising an investors forum to gather feedback from businesses on the economic zone
• Facilitating Malaysia-Singapore renewable energy cooperation in the zone
• Curating training to address talent and skill gaps for industries in the economic zone
• Developing joint promotion events between Johor and Singapore to promote trade and investment into the zone

"These early initiatives demonstrate the collaborative spirit between both sides and mutual interest in the Johor-Singapore Special Economic Zone to drive economic growth," the ministries said.

Both sides also agreed to develop a framework that will determine the economic sectors for cooperation and the geographical coverage of the zone.

The MOU also established a committee for the economic zone co-led by MTI and Malaysia’s economy ministry.

This committee will report to the Joint Ministerial Committee for Iskandar Malaysia co-chaired by Singapore's National Development Minister Desmond Lee and Mr Rafizi, Malaysia's Minister of Economy.

Earlier on Thursday, Mr Lee and Mr Anwar also met to mark the Johor Bahru-Singapore Rapid Transit System (RTS) Link Project reaching the 65 per cent construction milestone on both sides.

Targeted to begin operation in December 2026, the rail service will connect Bukit Chagar in Johor Bahru to Woodlands North in Singapore, with a peak capacity of up to 10,000 passengers an hour each direction.