Malaysia and Singapore must build an ambitious economic alliance through the Johor–Singapore Special Economic Zone (JS-SEZ), said Deputy Minister of Investment, Trade and Industry Liew Chin Tong. He urged both countries to move beyond traditional cross-border models and create a partnership with global impact.
Liew spoke at the Malaysia–Singapore Chinese Chambers of Commerce Business Forum. The event’s theme, “Building a globally competitive partnership,” highlights the need for urgent action amid global political tensions and rapid technological change.
“We live in times of fast change that exceed our expectations,” Liew said. “We must act now, take new chances, become resilient, and plan the future together.”
He recalled Prime Minister Anwar Ibrahim’s visit to Singapore in January 2023. This visit led to a Memorandum of Understanding on the JS-SEZ in January 2024 and a formal agreement the following year.
“The key question is: what do we want from the JS-SEZ? Is it just moving low-end factories from Singapore to Johor, or can we aim higher and build a truly global economic partnership?” he asked.
Liew also pointed out the unstable global situation. Conflicts in the Middle East and Europe, along with rising tensions in Asia—such as in the Taiwan Strait, the Korean Peninsula, and the South China Sea—affect both countries. He encouraged Malaysia and Singapore to keep a neutral stance and act as stabilizing middle powers.
“ASEAN can help balance the world’s growing divides,” he added.
The deputy minister challenged old ideas about economic growth. He said it is no longer true that countries must leave manufacturing to focus on services. He noted how even advanced economies like the United States are rebuilding factories, processing rare earth minerals, and bringing critical production back home.
Materials and manufacturing remain crucial for innovation. They drive progress in areas like semiconductors, artificial intelligence, and quantum computing.
Liew called on Malaysia and Singapore to develop a strong industrial base supported by a healthy financial and regulatory system.
“Both nations have a unique chance. Few places have such complementary industries,” he said. Manufacturing still makes up more than 20% of GDP in both countries, a rare strength in semi-developed economies.
“Contrary to common belief, Singapore keeps a large manufacturing sector. Together with Malaysia’s skills, the potential is huge.”
He proposed building a new ecosystem — a local version of global tech giants like Samsung, Huawei, or TSMC — through this Malaysia–Singapore partnership.
“We can become a mini Korea in the global supply chain, creating value far beyond our size,” Liew said.
He praised the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) and the Singapore Chinese Chamber of Commerce and Industry (SCCCI) for their role in deepening bilateral ties.
