More Singapore businesses are making enquiries about entering the Johor-Singapore Special Economic Zone (SEZ) following the signing of the bilateral deal during the Malaysia-Singapore Leaders’ Retreat.

The Johor-Singapore Special Economic Zone (JS-SEZ) will bring a positive transformation to the state, says Mentri Besar Datuk Onn Hafiz Ghazi.

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.

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.

This was announced in a bid to foster economic growth in the newly signed JS-SEZ, on top of previously announced tax incentives in Forest City.

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.