This article first appeared in The Edge Malaysia Weekly on February 3, 2025 - February 9, 2025

Just a week after the launch of the Johor-Singapore Special Economic Zone (JS-SEZ), we organised a courtesy visit to Brunei’s Legislative Council and were warmly received by several esteemed Bruneian legislators.

During our discussions, we proposed the vast potential that a Brunei-Sarawak Special Economic Zone (BS-SEZ) could bring, particularly by transforming the Kuala Baram (Miri)-Kuala Belait (Brunei) corridor — both of which are popularly referred to as “KB” — into a vibrant centre of industry, innovation and sustainable development. The proposal drew inspiration from Malaysia and Singapore’s success with the JS-SEZ, highlighting how close bilateral ties, shared resources and strategic planning can deliver transformative results for border regions.

On Jan 7, Malaysia and Singapore formalised the JS-SEZ, spanning over 3,500 sq km. This landmark agreement aims to attract global investments, integrate cross-border industries and create 20,000 new jobs within five years. Building on previous regional frameworks such as the Sijori (Singapore-Johor-Riau) Growth Triangle and Iskandar Malaysia, the JS-SEZ establishes a transformative level of ambition and unity between the two nations.

The JS-SEZ’s unprecedented scale and clear goals provide a guiding blueprint for central Borneo. By studying its strategies — especially in balancing infrastructure upgrades with environmental safeguards — we see that only specialised economic zones can successfully attract international attention, develop homegrown small and medium enterprises (SMEs) and uplift local communities. In the same vein, a BS-SEZ could foster tighter cooperation between Miri and Brunei, sparking growth that brings a direct positive impact on living standards, job markets and the overall quality of life for the rakyat.

The proposed BS-SEZ would revolve around Kuala Baram in Miri and Kuala Belait in Brunei, which together form the “Double KB” area. Both locations hold extensive, underutilised land banks and strategic cross-border access. More importantly, Brunei has world-class infrastructure — deep-water ports, a modern international airport and the proposed Trans-Borneo Railway — positioning the Double KB corridor to become a major transshipment and logistics gateway within Asean. Miri, for its part, is already recognised as the gateway to northern Sarawak, boasting a population that surpassed 350,000 in 2022. This growing community, in tandem with Brunei’s about 440,000 inhabitants, forms a cross-border region primed for collaborative innovation.

Brunei’s gross domestic product (GDP) per capita, recorded at around US$33,431 (RM146,000), underscores its significant capital reserves and high-quality human resources, with an 80% labour participation rate among holders of advanced degrees. These advantages make Brunei ideally suited for research-intensive, knowledge-driven sectors such as high-tech manufacturing, digital services and specialised R&D.

Meanwhile, Miri offers cost-competitive land, an industrious labour force and abundant renewable energy potential — assets that make northern Sarawak ideal for large-scale developments, including green industries and advanced manufacturing. Sarawak’s GDP per capita of US$16,000 provides the ground for a new phase of industrial growth. By fusing these complementary strengths, the Double KB corridor can develop into a single economic ecosystem that promotes innovation and attracts top-tier global investors.

As global markets pivot towards environmental, social and governance (ESG) standards and reduce reliance on fossil fuels, reindustrialisation has become a priority for Malaysia and Brunei alike. A well-structured BS-SEZ in central Borneo would facilitate a shift into high-growth, high-income industries, simultaneously spurring the creation of better-paying jobs for young people and providing new avenues for SMEs to scale their businesses. In doing so, we would also address the challenge of outmigration by offering a broader spectrum of local employment opportunities.

Earlier cross-border programmes, such as the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) in this case, typically aimed at “complementing” one another without fully integrating policies, supply chains and single-window approving agencies. Today, genuine cohesion — combining resources, aligning regulations and strengthening shared markets — is essential. By adopting a unifying approach, Miri and Brunei can capitalise on large-scale opportunities more effectively, ensuring that economic gains are distributed widely across our communities on both sides of the border.

First, allowing a 24-hour operation and easing border controls at the Sungai Tujoh checkpoint is a central pillar for this vision. A faster, more secure crossing system will not only facilitate the daily flow of commuters but also strengthen logistical routes for businesses. By modernising immigration facilities, implementing digital technologies and introducing dedicated commercial lanes, we can reduce bottlenecks and enhance regional competitiveness.

The second pillar involves the formal but regular dialogue between members of the legislature, government officials and stakeholders from Malaysia and Brunei that will anchor these initiatives at the highest policymaking levels. A structured governance mechanism for the BS-SEZ — like the one in Johor-Singapore — could then create a highly conducive environment for foreign direct investment (FDI) and ensure that regulations, tax incentives and project approvals are well coordinated.

BS-SEZ could unlock thousands of high-quality jobs for a broad swathe of our population. Drawing parallels to the 20,000 new jobs anticipated under the JS-SEZ, the Double KB zone has every reason to match or exceed such figures, particularly if it integrates multiple industries — from green tech and advanced manufacturing to big data analytics and logistics services. The immediate beneficiaries include engineers, technical specialists, hospitality workers and digital innovators, while secondary benefits — spanning from local SMEs to ancillary service providers — would multiply the overall economic impact.

In education and workforce development, Brunei’s advanced-degree participation rate of over 80% can be harnessed through collaborative R&D programmes with Sarawak’s universities. Linking expertise in engineering, environmental science, digital technology and vocational training would help cultivate a robust talent pipeline for years to come.

Environmental stewardship is another cornerstone. Given our identity as the “Heart of Borneo”, safeguarding biodiversity and promoting ESG-compliant industries align with global climate priorities. With some of the region’s richest ecosystems on our doorstep, a transition towards renewable energy, low-carbon industries and reforestation projects could establish the Double KB corridor as a leading example of sustainable economic development.

Finally, positioning the BS-SEZ for broader Asean integration is crucial in a rapidly evolving regional landscape. As Indonesia’s new capital, Nusantara, rises in Kalimantan, Borneo has become a focal point for infrastructure corridors and cross-border supply chains. By aligning the BS-SEZ with such initiatives, central Borneo can capture a share of pan-Asean growth, solidifying its place in future trade and investment flows.

Our Bruneian counterparts have responded with optimism and openness, expressing keen interest in a broader collaboration for the mutual benefit of the region. They share our commitment to unity, acknowledging the familial and cultural bonds that link Brunei and Sarawak. With Brunei’s national-level infrastructure serving as strategic anchors, the “Two KB Economic Zone” could fuel a region-wide boost in trade and logistics, offering mutual benefits that transcend historical boundaries.

After listening to JS-SEZ at the dance floor, the time is ripe to bring about the BS-SEZ of central Borneo to explore the immense potential at the border of two countries!

Chiew Choon Man is member of parliament for Miri while Lee Chean Chung is the MP for Petaling Jaya as well as chairman of the Centre of Regional Strategic Studies (CROSS)

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