Singapore and Malaysia have launched the Johor-Singapore Economic Zone (JS-SEZ), a landmark initiative to strengthen cooperation in key areas, including carbon credits and renewable energy. The agreement, announced on 7 January after a year of negotiations, seeks to enhance cross-border collaboration, attract global investment, and create 20,000 jobs.
An aerial view of the Johor-Singapore Causeway, connecting Singapore and Malaysia. AI generated picture.
The JS-SEZ targets 11 industries, including the green economy, energy, and manufacturing, with an ambitious plan to develop 50 projects within five years and 100 within a decade. Both nations aim to leverage their complementary strengths to boost competitiveness and attract international interest, as highlighted by Singapore’s Prime Minister Lawrence Wong.
Singapore and Malaysia share a robust economic relationship, with bilateral trade reaching $132.6 billion in 2023. Singapore also led foreign direct investment in Malaysia, contributing 23% of its total FDI last year.
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The initiative’s highlights include six memorandums of understanding (MoUs) and a letter of intent (LoI), two of which centre on carbon reduction. These agreements cover carbon credit trading under Article 6.2 of the Paris Agreement, enabling cross-border transfers of carbon reduction efforts, and joint research into carbon capture and storage (CCS).
Additionally, the countries are establishing a framework for Renewable Energy Certificates (RECs) to support electricity trading and regional renewable energy projects.
A significant milestone was reached in late 2024 when Tenaga Nasional Berhad and Sembcorp Power agreed to deliver 50 MW of green electricity to Singapore via the Energy Exchange Malaysia (ENEGEM). Plans are also underway to import 1 GW of hydropower from Sarawak to Singapore by 2032, further advancing regional energy collaboration.
This groundbreaking partnership sets a strong foundation for sustainable growth, marking a significant step toward a greener future for Southeast Asia.
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By partnering with DGB Group, you position yourself at the forefront of driving sustainable progress and meaningful change. As highlighted by the Johor-Singapore Economic Zone initiative, collaboration and innovation are key to addressing environmental challenges. DGB’s groundbreaking nature-based projects, such as reforestation and ecosystem restoration, create a pathway to balance financial goals with impactful environmental action. Together, we can empower communities, restore ecosystems, and contribute to a cleaner, greener, and more equitable future. Let’s transform today’s challenges into tomorrow’s solutions, ensuring that sustainability and global development move forward hand in hand.
