Johor and Singapore build cross-border economic zone mirroring Hong Kong-Shenzhen model

Malaysia's southern state of Johor is building a cross-border special economic zone with Singapore that officials say deliberately mirrors the early development path carved out by Hong Kong and Shenzhen decades ago.

The Johor-Singapore Special Economic Zone spans an area more than four times larger than Singapore itself and targets 260 billion Malaysian ringgit (US$63.9 billion) in economic output for Johor by 2030, alongside the creation of over 20,000 high-skilled jobs. The project is anchored by a planned 4-kilometre Rapid Transit System Link designed to cut travel times and deepen cross-strait integration.

Blueprint borrowed from Pearl River Delta

Lee Ting Han, Johor's state executive councillor for investment and trade, told the South China Morning Post that the wealth gap between Singapore and Johor today resembles the historic economic disparity that once separated Hong Kong and Shenzhen.

"Similarly, it is pretty much like the early days of Hong Kong and Shenzhen, where the economic disparity between the two regions was so wide … what we are trying to do now is see whether there's a way for us from a business standpoint to make it more integrated from trade relationships to investment culture," Lee said.

The early trajectory of Hong Kong and Shenzhen serves as the foundational blueprint for Malaysia's approach.

Cross-border flow already visible

Deep in Johor's southern border zone, separated from Singapore by a narrow strait, a steady flow of commuters already moves seamlessly between the two sovereign neighbours. Beyond the immediate checkpoints, a short 30-minute train ride connects visitors to regional hubs such as Kulai, where rapid expansion of digital infrastructure is now visible.

The Johor-Singapore zone offers a live case study in mutual learning between cross-border development models, with distinct political frameworks adapting strategies first tested in southern China.

Source: South China Morning Post