The Singapore government will fund Singaporean companies expanding into the JS-SEZ, while Malaysia’s fund will target infrastructure build in Johor.

The JS-SEZ has a higher chance of success than past projects such as Iskandar Malaysia – launched in 2006 and conceptualised as a southern economic growth corridor – given the involvement of the Singapore Government, which brings to the table better governance, he noted.

Malaysia and Singapore announced on Tuesday an agreement on a special economic zone in the southern Malaysian state of Johor, aiming to support investment and free up movement of goods and people between the countries.

Malaysia unveiled a slew of tax incentives to lure investors to its joint special economic zone with Singapore that seeks to add $26 billion per year to the Malaysian economy by 2030.

The Johor-Singapore Special Economic Zone is nearly twice the size of Shenzhen, whose success it is hoping to emulate.