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 and Singapore leaders signed an agreement on Tuesday to create a special economic zone to attract global investment and ease the cross-border flow of goods and people. Malaysian Prime Minister Anwar Ibrahim called the Johor-Singapore special economic zone a “unique initiative” that harnesses each other's strengths and deepens linkages in a world that is becoming more polarized.

In an interview with CNA, he shares the rationale behind some decisions regarding the Johor-Singapore Special Economic Zone and how the project aligns with his country’s vision.

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.

Malaysia and Singapore signed the Johor-Singapore Special Economic Zone (JS-SEZ) agreement to boost cooperation and investment between Johor and Singapore, utilizing their proximity for mutual growth,

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