The governments of Malaysia and Singapore signed a memorandum of understanding (MOU) on Thursday, agreeing to jointly develop a special economic zone (SEZ) in the Southern Malaysian state of Johor.
The move comes in an effort to attract investment and boost the economies of both countries, according to Malaysia’s Economy Minister Rafizi Ramli, who signed the MOU in conjunction with Singapore’s Trade and Industry Minister, Gan Kim Yong.
Though the full details are yet to be confirmed, a joint statement by the two countries highlighted co-operation on renewable energy efforts, business regulations, and freeing up the cross-border movement of goods and people, potentially through a passport-free QR code system.
While the initiative is aimed at all business sectors, the digital and data center industries have been highlighted by Malaysia’s Socio-Economic Research Centre (SERC), as one of several specific areas that are set to benefit.
Previous years have seen the data center industry in Malaysia booming, thanks in large part to the build moratorium in Singapore, as demand coming from the city-state was met by an ‘overflow’ to its neighbour. This new initiative, which will cut business red-tape and make it easier for employees to travel by land between the countries, seems only likely to support this growth in the data center industry even more.
Just last year, the two countries signed a number of MOUs that highlighted the digital economy and cybersecurity specifically, while Johor saw a number of big moves from the DC industry, including the launch of the Nusajaya Tech Park Data Center Campus by GDS.
