Prime Minister of Malaysia, Anwar Ibrahim, reaffirmed the enduring and robust relationship between Malaysia and Japan, noting that he has met with former Japanese Prime Minister Kishida several times and most recently held a phone conversation with current Prime Minister Ishiba. He emphasized that beyond trade and technological investments, the two nations must continue to deepen their partnership through mutual appreciation of shared values, culture, and ethics.

Shifting focus to regional economic collaboration, Anwar highlighted the establishment of the Johor-Singapore Special Economic Zone (JS-SEZ). In January 2025, Malaysia and Singapore jointly agreed to develop the JS-SEZ in the southern part of Johor, adjacent to the Singapore border. Although the economic zone is located within Malaysia, Singapore has actively supported the initiative, anticipating significant mutual economic benefits.

Covering an area of approximately 3,500 square kilometers—about five times the size of Singapore, the JS-SEZ aims to complement Singapore’s position as a key ASEAN economic hub. With Singapore facing constraints such as limited land and high labor costs, the JS-SEZ presents a strategic alternative for companies seeking regional expansion, offering business-friendly conditions, accessibility, and infrastructure comparable to Singapore.

Prime Minister Anwar described the JS-SEZ as a symbol of trust and cooperation between Malaysia and Singapore, designed for the shared prosperity of both nations. He underscored Johor’s political stability, well-established infrastructure, and clear policy direction as key enablers of the zone’s potential.

He also noted growing international interest in the JS-SEZ from countries including Japan, China, South Korea, and across Europe. In closing, he invited forum participants to explore opportunities within the zone and encouraged those with investment ideas to reach out and collaborate.

Onn Hafiz Ghazi, Chief Minister of Johor, outlined the state’s key advantages: seamless movement of people, goods, and services between Johor and Singapore; a pro-business environment with minimal bureaucracy; and a strong framework for cultivating skilled talent. Johor and Singapore have long shared a close-knit relationship, with approximately 300,000 individuals commuting daily from Johor to Singapore for work or study. One of the key objectives of the Johor-Singapore Special Economic Zone (JS-SEZ) is to attract more people and businesses to Johor’s side of the border. To support this ambition, plans are underway to enhance cross-border transportation links, introduce tax incentives for companies investing in the zone, and ease visa requirements. These efforts aim to draw Singapore-based firms, as well as businesses deterred by Singapore’s high land and labor costs, to establish operations in Johor.

In terms of talent development, the Johor government is collaborating with six public universities and other institutions to train 10,000 individuals by 2026 in critical sectors such as smart manufacturing, semiconductors, digital infrastructure, and renewable energy. The initiative seeks to create a virtuous cycle where a skilled local workforce directly contributes to the growth and competitiveness of companies operating within the JS-SEZ.

Chief Minister Onn Hafiz expressed confidence that the JS-SEZ would emerge as a significant regional hub. He asserted that Johor offers a compelling base for companies seeking to strengthen their presence across ASEAN and Asia.

He also announced plans to develop an “ASEAN Industrial Park” within the zone, aimed at fostering regional collaboration among member countries of the Regional Comprehensive Economic Partnership (RCEP).

Reflecting on Malaysia’s longstanding ties with Japan, Onn Hafiz affirmed the strength of the bilateral friendship but emphasized the need to pursue fresh ideas and approaches to ensure continued progress, avoiding complacency in an evolving global landscape.