MALAYSIA, Singapore and Indonesia are discussing the creation of a tri-nation Special Economic Zone (SEZ) designed to stimulate regional economic growth and enhance investment opportunities across ASEAN.
Singapore’s Deputy Prime Minister Gan Kim Yong, who also serves as Minister for Trade and Industry, said the initiative would link Johor, the Batam-Bintan-Karimun (BBK) islands, and Singapore, forging a more inclusive growth ecosystem for the region.
“We are considering how all three parties can collaborate… the main goal of this trilateral cooperation is to create stronger value-addition and offer wider investment potential for the mutual benefit of the three countries,” he said during the ASEAN 2025 Summit today.
Gan noted that although the SEZ is still at an early stage, it would give investors multiple options, including operating solely in Singapore, in Singapore-Johor, Singapore-Batam, or Batam-Johor. This flexibility, he said, would make the region a more attractive and competitive investment destination.
“Even though bilateral cooperation is already challenging, trilateral efforts remain important to generate broader economic synergy,” he added.
“This is an example of how, through ASEAN relationships, we learn to cooperate and create shared benefits.”
The concept of three-way collaboration dates back to the early 1990s under the SIJORI Growth Triangle, which combined Singapore’s expertise in finance and technology, Johor’s role as an industrial and logistics hub, and the Riau Islands’ focus on manufacturing and tourism.
While the initiative slowed in later decades due to changing national priorities, it continues to form the foundation for economic integration across the three regions.
ASEAN Chair Praised Again
Meanwhile, ASEAN Secretary-General Dr Kao Kim Hourn praised Malaysia’s leadership for guiding the bloc with foresight during challenging times, highlighting Kuala Lumpur’s commitment to unity, economic integration, and regional stability.
Malaysia assumed the ASEAN Chair in 2025 from Laos, with the theme “Inclusion and Sustainability,” pledging to strengthen economic cooperation, maintain stability, and advance the region’s long-term vision.
“I commend Malaysia’s leadership for consistently championing ASEAN’s core interests in politics and security, economy, socio-cultural development and connectivity,” Dr Kim Hourn said in an interview with Radio Republik Indonesia ahead of the 47th ASEAN Summit.
He also lauded Malaysia for accelerating regional economic integration, notably through upgrading the ASEAN Trade in Goods Agreement (ATIGA), a critical step towards a single market and shared production base.
Malaysia has further expanded ASEAN’s collaboration with key dialogue partners including China, Korea, India, Australia, New Zealand, Canada, and the Gulf Cooperation Council countries.
“I congratulate Malaysia as ASEAN Chair, with strong support from all member states, because Malaysia’s success is the success of all ASEAN countries,” he said. - October 24, 2025
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