Malaysia pushes back Sept target for Johor-Singapore SEZ deal

Sticking points include contributions to fund for firms looking to expand to Johor

- Zunaira Saieed and Shannon Teoh

Malaysia's plan to finalise the Johor-Singapore Special Economic Zone (JSSEZ) agreement by September will have to be aborted, as negotiations continue over several sticking points.

The discussions are set to take place until the 11th Singapore-Malaysia Leaders' Retreat that is likely to be held in December, The Straits Times has learnt.

Among the issues where both sides have yet to bridge the gap are contributions to a facilitation fund for companies looking to expand operations to Johor and skilled workforce provisions, according to sources in the know.

While Singapore and Malaysia had signed a memorandum of understanding in January targetting a deal by the end of 2024, Malaysia's Minister of Economy Rafizi Ramli said in July that the final agreement was expected to be inked in September.

"The agreement between both the countries will now be signed during the annual leaders' retreat at the end of the year and this has been the understanding between both Malaysia and Singapore," said Mr Lee Ting Han, chairman of Johor's state investment, trade and consumer affairs committee.

"We want to make the JSSEZ more impactful, which will require more negotiations about policies and incentives before an agreement can be drafted between both countries," he told ST on Aug 14.

Johor Menteri Besar Onn Hafiz Ghazi said on Aug 15 that an official three-day workshop between Malaysian and Singapore officials is scheduled to take place in Johor from Aug 28 to 30. It is aimed at completing most of the negotiations, which will pave the way for the drafting of the agreement.

On the timeline for the deal, Datuk Onn said: "We are looking at the end of the year, but before that we are doing a lot of engagements.