PM Lee Hsien Loong at the 10th Singapore-Malaysia Leaders' Retreat Joint Press Conference

Good afternoon, everybody. I am very glad to host Prime Minister Dato’ Seri Anwar Ibrahim and his delegation for the Singapore-Malaysia Leaders’ Retreat this morning. I have met Prime Minister Anwar many times since he assumed his position, and of course even more times before that, we are old friends for many years, but this is our first Leaders’ Retreat together. It is the 10th Leaders’ Retreat between Singapore and Malaysia, and the first since the COVID-19 pandemic, so this is an important milestone which reflects the continued importance we place on bilateral ties and on both countries working together positively to benefit our people.

Bilateral Relations

We have had very productive and substantive discussions this morning. Singapore and Malaysia’s relations are strong, particularly on the economic front. We are each other’s second-largest trading partner. Investments from Singapore to Malaysia have grown tremendously and Singapore, in the first half of this year, was the top foreign investor in Malaysia.

In an increasingly uncertain post-pandemic world, we need to enhance our cooperation, in particular our economic links and our people-to-people ties. During PM Anwar’s introductory visit in January, we signed two Framework Agreements – one on the Digital Economy and one on the Green Economy. We will build on this promising start to pursue further win-win cooperation. Within ASEAN, Singapore and Malaysia are working closely to strengthen regional collaboration and the centrality of ASEAN, especially in the emerging areas of digital and green economies.

Johor-Singapore Special Economic Zone (JS-SEZ)

Bilaterally, we have a full agenda of cooperation. We intend to jointly develop a Johor-Singapore Special Economic Zone (JS-SEZ) which is a substantial and promising project, which will enhance the cross-border flow of goods and people, and strengthen the business ecosystem and will improve the economic attractiveness for both sides, for both Singapore and Johor.

Renewable Energy

Secondly, we agreed to strengthen cooperation on renewable energy. Singapore and Malaysia are both moving towards a low-carbon and sustainable future and we are pursuing cross-border electricity trading, which will be a win-win for both countries. Renewable energy potentially can come from Peninsula Malaysia as well as from East Malaysia.

Connectivity

Thirdly, we are making good progress to strengthen connectivity. One key project is the Rapid Transit System (RTS) Link, the RTS Link between JB and Singapore. It will be the third land link between the two countries which will make it much more convenient for our people. We are all looking forward to the project’s completion by the end of 2026.

PM Anwar and I also discussed our efforts to alleviate congestion at our land checkpoints. On Singapore’s end, ICA has introduced various initiatives to make the cross-border travel smoother and more efficient, while maintaining border security. We have also started to redevelop the Woodlands Checkpoint to increase its capacity and meet the expected long-term growth in cross-border traffic. I am glad that PM Anwar welcomes and supports Singapore’s efforts.

Other Bilateral Cooperation

On many other fronts, we are working together too. Earlier this month, Malaysia organised the Triennial Malaysia-Singapore Cultural Showcase (TCS), here in Singapore. This initiative has deepened the exchange of culture and heritage between our countries. Our economic agencies have signed an MOU to strengthen collaboration between our SMEs, and to update the Malaysia-Singapore Business Development Fund to support joint test-bedding and pilot projects by our enterprises in third countries in areas like the green and digital economies.

Outstanding Bilateral Issues

Prime Minister Anwar and I also discussed outstanding bilateral issues, including maritime delimitation, reclamation at Pedra Branca, water, and airspace. These are all important issues. And we will consider them holistically and constructively, within the broader context of our overall relationship. Importantly, they will not be allowed to colour and affect this overall relationship, or detract from the many positive areas of cooperation between us. I am confident that our two countries can work out durable and mutually beneficial ways forward on all of these issues.

Conclusion

Finally, I thank Prime Minister Anwar for visiting us and look forward to meeting him again soon, including at the 11th Leaders’ Retreat in Malaysia next year. Thank you.