KUALA LUMPUR (Oct 18): Johor-Singapore Special Economic Zone (JS-SEZ) will cover an area governed by six local authorities in Iskandar Malaysia and Pengerang, according to the Ministry of Finance.

The sites in southern Johor proposed by the state government would span an area about five times larger than Singapore, the ministry said in the 2025 Economic Outlook report. At over 3,500 square kilometres, the zone would stretch from Kulai and part of Pontian to Pengerang.

“The development priority of the JS-SEZ in these areas will be guided, among others by the availability of land and infrastructure,” the report said.

The locations — which also include Iskandar Puteri City Council, Johor Bahru City Council, and Pasir Gudang City Council — have not been previously disclosed.

Initiated through a memorandum of understanding signed in January 2024, the proposed JS-SEZ aims to enhance trade and connectivity between Malaysia and Singapore, encourage technology transfer, and stimulate growth across various industries.

Key focus industries for the JS-SEZ will include logistics, financial and business services, tourism, food security, education, healthcare, the digital economy, energy, and manufacturing.

A deal between Malaysia and Singapore was expected to be signed in September though it has been delayed as the details and incentives are still being finalised, Johor Menteri Besar Onn Hafiz Ghazi said earlier.

The proposed JS-SEZ was announced in October 2023 during Prime Minister Datuk Seri Anwar Ibrahim’s visit to Singapore.

“The JS-SEZ is anticipated to bring mutual benefits by leveraging the existing strengths and similarities between both countries,” the Finance Ministry said. “The JS-SEZ will serve as a catalyst to boost bilateral economic cooperation and unlock growth potentials in both Malaysia and Singapore.”

Click here to read more about the Economic Report 2024/2025.