Singapore and Malaysia have officially launched the Johor-Singapore Economic Zone (JS-SEZ) to deepen their cooperation in a number of areas, including carbon credits and renewables.
The initiative, developed over a year of negotiations and announced at a leaders’ summit on January 7, aims to foster cross-border collaboration, attract investment, and create jobs.
It focuses on 11 key industries, including the green economy, energy, and manufacturing, with a target of developing 50 projects within five years and 100 projects within a decade, generating 20,000 jobs.
Singapore’s Prime Minister Lawrence Wong, as cited by Taiwan-based media Reccessary, emphasized the complementary strengths of Singapore and Johor, a state in southern Malaysia, highlighting their potential to attract global investment and enhance competitiveness.
Malaysia, Singapore’s third-largest trading partner, recorded bilateral trade worth $132.6 billion in 2023. Singapore also led foreign investment in Malaysia, accounting for 23% of its total FDI.
Relevant: Singapore Invests $1 Billion In New Hydrogen Power Plant With Carbon Capture
A significant outcome of the summit was the signing of six memorandums of understanding (MoUs) and one letter of intent (LoI), with two focusing on carbon reduction.
The agreements include carbon credit trading under Article 6.2 of the Paris Agreement, enabling cross-border transfers of carbon reduction achievements, and joint research on carbon capture and storage (CCS).
The countries are also working on a framework for Renewable Energy Certificates (RECs) to facilitate electricity trading and support regional renewable projects.
Notably, at the end of 2024 Malaysia’s Tenaga Nasional Berhad (MYX: 5347) and Singapore’s Sembcorp Power signed an agreement for the delivery of 50 MW of green electricity to Singapore through the Energy Exchange Malaysia (ENEGEM) platform.
Future initiatives include importing 1 GW of hydropower from Sarawak, a Malaysian state on Borneo island, to Singapore by 2032, further strengthening regional renewable energy collaboration.
Read more: Carbon Capture Poised To Attract $10B+ Investment In Malaysia By 2030
