Singapore & Malaysia To Explore Passport-Free System For Immigration Clearance
On Thursday (11 Jan), Singapore and Malaysia signed a memorandum of understanding (MOU) to work on a Johor-Singapore Special Economic Zone (JS-SEZ).
As part of plans for the zone, both sides will be exploring the possibility of implementing a passport-free QR code immigration clearance system at the land checkpoints.
Other initiatives under consideration include digitised processes for cargo clearance at the land checkpoints.
Singapore and Malaysia sign MOU on 11 Jan
On 11 Jan, the Ministry of Economy in Malaysia (MOE) and the Ministry of Trade and Industry (MTI) in Singapore announced the signing of the MOU through a press release.
Malaysia’s Minister of Economy Mohd Rafizi Ramli and Minister for Trade and Industry Gan Kim Yong signed the memorandum.
It was also witnessed by the Prime Ministers (PM) for Singapore and Malaysia, Lee Hsien Loong and Anwar Ibrahim.
MTI and MOE said that the signing of the MOU reaffirms the longstanding ties and joint commitment to strengthen economic cooperation.
Both countries have also agreed on working towards a full-fledged Agreement on the JS-SEZ. They will provide an update on it at the 11th Malaysia-Singapore Leaders’ Retreat.
Under the memorandum, Malaysia and Singapore will aim towards achieving the enhancement of cross-border flows of goods and people.
“The JS-SEZ rides on the strong growth of Johor and significant investments in the region by Singapore,” MOE and MTI said.
Passport-free clearance system under consideration
As part of the plans for the JS-SEZ, both countries will explore several initiatives.
One of them involves the implementation of a passport-free QR code immigration clearance system on both sides.
This will facilitate the faster and more efficient clearance of travellers at the land checkpoints.
Other initiatives under consideration are as follows:
- A one-stop business or investment service centre in Johor to facilitate the application processes for various approvals and licenses necessary for Singapore businesses to set-up in Johor
- Digitised processes for cargo clearance at the land checkpoints
- Co-organisation of an investors forum to gain feedback from businesses in both countries on the JS-SEZ
- Facilitation of Malaysia-Singapore renewable energy cooperation in JS-SEZ
- Curation of training and work-based learning initiatives for the gaps in talent and skills for relevant industries in the JS-SEZ
- Development of joint promotion events between Johor and Singapore to promote trade and investment in the JS-SEZ
“These early initiatives demonstrate the collaborative spirit between both sides and mutual interest in the JS-SEZ to drive economic growth,” MOE and MTI said.
Special Economic Zone will allow both countries to grow together
Mr Rafizi Ramli said that the JS-SEZ presented an “unprecedented opportunity” to enhance the cross-border flow of goods and people.
Additionally, it could strengthen the business ecosystem and heighten Johor’s and Singapore’s economic attractiveness.
“I have full confidence that this initiative will herald the commencement of a transformative chapter in our bilateral economic relations,” he said.
Mr Gan added that the JS-SEZ will be a “bridge” for both sides to use each other’s complementary strengths and grow together by taking hold of opportunities.
“The JS-SEZ underscores what Singapore and Malaysia can achieve when our governments and business communities work closely together,” he stated.
In 2022, Johor recorded RM70.6 billion (S$2.17 billion) worth of investments from various sectors such as electronics and food manufacturing.
Singapore was Johor’s second-largest foreign investor from January to June 2022. The country contributed to 70% of Johor’s total foreign direct investment (FDI) in the manufacturing sector.
In the same year, Malaysia and Singapore were each other’s second-largest trading partners. Bilateral trade grew 18.9% year-on-year to S$153 billion for that year.
Singapore also contributed 20.5% to Malaysia’s total FDI, becoming its top source of FDI.
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