Onn Hafiz noted that in the four decades after it was made a SEZ, Shenzhen has transformed from a small city with a population of about 300,000 people to a high-tech international metropolis with a population of over 17 million.

“In just four decades, Shenzhen’s gross domestic product (GDP) in 2021 exceeded three trillion yuan (more than US$400 billion), while it has become the third largest city in China,” Bernama quoted him as saying at the Johor state assembly today.

“What Shenzhen has achieved also proves that the Johor-Singapore SEZ can produce the best results for Johor.

“However, this definitely requires help and cooperation from all parties … from the Singapore government as well as the federal government.”

In July, Malaysia and Singapore agreed to create a special task force to study the establishment of a Johor-Singapore SEZ.

Onn Hafiz said Malaysia and Singapore were expected to finalise the terms of reference (ToR) on the proposed SEZ following discussions between Prime Minister Anwar Ibrahim and his Singapore counterpart, Lee Hsien Loong, at a leaders retreat in Singapore next month.

Last month, Anwar said the federal government will create a special financial zone in the Forest City property development area in Iskandar Puteri to stimulate investment and economic growth in Johor.

Anwar, who is also the finance minister, said government incentives for companies operating in the special financial zone would lower the cost of doing business there.

He also announced several incentives, such as the extension of incentives in Iskandar Malaysia to the Forest City area, including a special income tax rate of 15% for skilled workers and the provision of multiple-entry visas.

Anwar said the creation of the zone could attract more investors with Johor’s strategic location next to Singapore, the availability of a complete basic infrastructure, and with costs in Singapore currently considered high.