5 key takeaways for the industry from the 10th Singapore-Malaysia Leaders’ Retreat

This week, Prime Minister Lee Hsien Loong and Malaysian Prime Minister Anwar Ibrahim held a two-day leader's retreat to discuss key issues between the two countries. 

The retreat saw the leaders' reaching agreements in areas such as economics between the countries, security issues, how they can help SMEs and more. 

Below are five key takeaways that industry professionals need to take note of from the 10th Singapore-Malaysia Leaders’ Retreat.

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1. The Johor-Singapore Special Economic Zone (JS-SEZ)

At the retreat, PM Lee and PM Anwar stated that they would be working to ink an agreement that will allow for the next stage of the Johor-Singapore Special Economic Zone. The JS-SEZ will tap into the complementary strengths of both countries to foster economic connectivity by improving cross-border flows of goods, investments, and people. It will also enhance the ecosystem of the Iskandar development region and in Singapore.

PM Lee explained that this will improve the economic attractiveness of both sides and added that this might mean special tax arrangements, bonded warehouses to allow for easier border flows. He added that there will be better arrangements for the flow of people who have to work on both sides of the causeway so that companies can get the right mix of people with the proper skillsets. Companies can also look to set up on both sides of the causeway, expanding their reach and capabilities, he said.

2. Funding for SMEs

On the topic of improving the way companies function on both sides of the border, the leaders also signed a side letter to update the Malaysia-Singapore Business Development Fund (MSBDF). 

This will provide funding support for Singapore and Malaysia enterprises to jointly pursue opportunities in third countries and conduct joint pilots in each other’s countries, especially in emerging areas such as green economy and digital economy, it said in a joint statement. 

The leaders also commended the efforts by the Innovation Work Group to deepen the links between the start-up networks of both countries. They encouraged activities to accelerate the development of start-ups in both countries, and exchange knowledge on talent cultivation and emerging technologies such as autonomous vehicles and drones. 

Malaysia’s Ministry of Science, Technology and Innovation (MOSTI) and the Iskandar Regional Development Authority (IRDA) will, as a result, be showcasing start-ups from Malaysia in this year’s Singapore Week of Innovation and Technology (SWITCH).

These initiatives will enhance human capital in both countries, strengthen ties between their peoples, and enhance collaboration on innovation, it said. 

3. Improving infrastructure and cross-border connectivity

At the retreat, PM Lee and PM Anwar acknowledged that the Immigration and Transportation Links Work Groups have worked closely to strengthen infrastructure and cross-border connectivity between Singapore and Johor. 

Transport agencies from both countries have also made progress in strengthening their transport links and improving commuters’ experience, by increasing the frequency of cross-border bus services and introducing new ferry services, it said. 

The leaders then reaffirmed their commitment to improve connectivity between Singapore and Malaysia and to ease congestion at the land borders. They encouraged officials from both countries to continually exchange ideas to improve the efficiency and experience of cross-border travel for their peoples.

PM Lee and PM Anwar also said that they would be addressing congestion at the land border and noted Singapore’s plans to redevelop Woodlands Checkpoint to further smoothen cross- border movement of people and goods.

4. Closer collaboration on global security challenges

As more is done to improve connectivity, the leaders also emphasised the importance of cooperating on closer defence strategies given increasing global security challenges. 

They said that they should continue both their contributions to regional security through knowledge sharing and exchanges at various multilateral initiatives. 

PM Lee and PM Anwar so noted the importance of close collaboration when it comes to combating the rise of transnational crime.

The close cooperation has since enabled both countries to prevent, detect, and disrupt various transnational crime threats, it said. This is why they agreed to work towards an MOU on preventing and combatting transnational crimes in the near future. 

5. Intellectual Property driving economic growth

At the retreat, both leaders noted that Intangible Assets (IA) and Intellectual Property (IP) have become key drivers of economic growth.

They took note of the inaugural Memorandum of Cooperation (MOC) on IP cooperation signed between the Intellectual Property Office of Singapore (IPOS) and the Intellectual Property Corporation of Malaysia (MyIPO), which included patent-related programmes to better support innovators and businesses seeking to enter both markets.

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