Joint Statement by PM Lawrence Wong and PM Dato' Seri Anwar Ibrahim at the 11th Malaysia-Singapore Leaders' Retreat

Source: PMO

Prime Minister Dato’ Seri Anwar Ibrahim and Prime Minister Lawrence Wong met in Putrajaya on 7 January 2025 for the 11th Malaysia-Singapore Leaders’ Retreat. In their first Retreat together, the Leaders reflected on the excellent progress of bilateral cooperation and renewed their strong commitment to continuing this annual engagement as a platform to promote bilateral ties across various domains for mutual benefit.

Overview of Malaysia-Singapore Bilateral Relations

The Leaders were pleased that Malaysia and Singapore will celebrate 60 years of diplomatic relations in 2025. Reflecting on the strong ties and multifaceted cooperation between the two countries over the past six decades, the Leaders reaffirmed their commitment to strengthening further the bilateral relationship for the benefit of both nations and the region.

The Leaders welcomed the regular exchanges of visits at various levels over the past year which reflected both countries’ resolve to further solidify the bilateral ties, expand the scope of collaboration, and explore new avenues of cooperation. The Leaders expressed their commitment to continue addressing shared challenges, fostering mutual benefits, and supporting sustainable growth in the region.

The Leaders reflected positively on the enduring bilateral relationship, which has been shaped by geographical, historical, and people-to-people connections. The Leaders guided that strengthening these connections at all levels will benefit both countries and ensure that they remain attractive to international investments which can create good jobs and spur innovation across the two economies.

The Leaders reaffirmed their commitment to fostering a stronger bilateral partnership in the spirit of mutual respect and understanding and highlighted their shared aspiration to resolve outstanding issues through an amicable and constructive approach. The Leaders agreed that it is vital for both countries to manage these issues in a way which will advance win-win cooperation and not allow any single issue to overshadow the long-term, broader relationship.

The Leaders noted Singapore’s intention to open Consulates in Sabah and Sarawak, which would further deepen the economic and people-to-people ties between Singapore and East Malaysia, as well as strengthen the overall bilateral relationship.

Johor-Singapore Special Economic Zone (JS-SEZ)

The Leaders expressed satisfaction on the good progress made on the JS-SEZ following the signing of a Memorandum of Understanding (MOU) on 11 January 2024 and subsequently the JS-SEZ Agreement on the sidelines of the Retreat. The JS-SEZ is a key milestone in Malaysia-Singapore relations which will enable both countries to tap on their complementary value propositions to drive innovation, enhance productivity, compete for global investments, create jobs, and bolster economic growth. The Leaders welcomed the vision for the JS-SEZ to improve cross-border flow of goods and people and strengthen the business eco-system.

In the efforts towards fostering greater cooperation within the JS-SEZ, the Leaders noted good progress made on early initiatives like (a) the adoption of QR code clearance at the land checkpoints; (b) investment facilitation efforts for Singapore businesses through the establishment of a new Investment Malaysia Facilitation Centre – Johor (IMFC-J) in Johor; (c) Singapore’s initiative to streamline its customs procedures for land intermodal transhipments; and (d) partnerships to strengthen cooperation in technical and vocational education and training (TVET) initiatives to meet industry demands. Examples of such TVET partnerships include MOUs between Singapore Polytechnic and the Federation of Malaysian Manufacturers (FMM), and Singapore’s ITE Education Services (ITEES) and the Johor Skills Development Centre (JSDC), as well as the signing of a Cooperation Note on Talent Development between Republic Polytechnic and the Johor Talent Development Council (JTDC). These pave the way for closer win-win collaboration between Singapore and Malaysia for new initiatives outlined in the JS-SEZ Agreement.

The Leaders commended the continued collaboration under the Joint Ministerial Committee for Iskandar Malaysia (JMCIM) and plans to refresh the JMCIM platform to better support the ambition and development of the JS-SEZ. Both Leaders recognised the promising prospects for further collaboration on the development of Iskandar Malaysia, particularly with the establishment of the JS-SEZ, which will lay the foundation for a dynamic and sustainable business ecosystem. The Leaders reaffirmed ongoing discussions to refresh the JMCIM platform to better support the ambition and implementation of the JS-SEZ, while reinforcing bilateral cooperation on other fronts, such as transport and environment.

Political-Security Cooperation

The Leaders commended the strong defence cooperation between Malaysia and Singapore, with both countries actively engaging in dynamic activities at the bilateral and multilateral levels. The Malaysian Armed Forces (MAF) and the Singapore Armed Forces (SAF) participated in a range of bilateral military exercises, including Semangat Bersatu (Army), Malapura (Navy), and Sarex Malsing (Air Force). On the multilateral front, cooperation continues to progress through initiatives such as the Five Power Defence Arrangements (FPDA), the ASEAN Defence Ministers’ Meeting (ADMM) and ADMM-Plus, Malacca Straits Patrol (MSP) as well as the Counter-Terrorism Information Facility (CTIF). Both Leaders emphasised the importance of maintaining close defence cooperation in light of the growing threats to global security and continuing both countries’ contribution to regional security.

The Leaders emphasised the need for continued close cooperation between Malaysia and Singapore to combat the ever-evolving threat of transnational crimes which poses significant risks to national peace and security. Both Leaders welcomed the exchange of the MOU on Cooperation in Preventing and Combatting Transnational Crimes by the Ministry of Home Affairs of both countries at the Retreat, which signified both countries’ commitment to enhance bilateral cooperation in tackling this challenge together. Both Leaders acknowledged the progress made in finalising the MOU on Cooperation to Fight Against Illicit Trafficking of Narcotic Drugs, Psychotropic Substances, Their Analogues and Precursor Chemicals and expressed their intention for the MOU to be concluded at the earliest possible opportunity.

The Leaders noted that the Malaysian Communications and Multimedia Commission and Singapore’s Info-Communications Media Development Authority signed an MOU on Cooperation in the Enforcement of Laws on Scam Telephone Calls and Scam Short Message Service on 25 February 2024. The MOU will strengthen the cross-border exchange of strategic intelligence to combat scams.

Economic Cooperation

The Leaders affirmed the strong and growing economic partnership between Malaysia and Singapore. Both countries have long been key trading partners and consistently ranking as each other’s top trading partner within ASEAN. In 2023, Malaysia was Singapore’s third largest trading partner, while Singapore was Malaysia’s top export destination and second largest trading partner globally. Trade between the two countries remained robust in 2023, reaching USD79.58 billion. Between January and November 2024, bilateral trade reached USD78.59 billion, a 6.7% increase over the same period in 2023. This growth was driven by higher trade in electrical and electronic products, machinery, equipment and parts, and chemicals and chemical products. Singapore was also Malaysia’s largest source of approved foreign direct investment (FDI) in 2023, contributing USD9.52 billion to Malaysia’s FDI.

The Leaders commended cooperation between Singapore’s Ministry of Trade and Industry (MTI) and Malaysia’s Ministry of Investment, Trade and Industry (MITI) through the Annual Ministerial Dialogue (AMD). During the second AMD in Singapore on 13 June 2024, discussions centred on strengthening bilateral collaboration in sustainability and reaffirming both countries' commitment to fostering sustainable economic growth. Both sides welcomed the establishment of a new supply chain cooperation workgroup to enhance supply chain resilience between Malaysia and Singapore. Both sides also welcomed the launch of the updated Malaysia-Singapore Third Country Business Development Fund (MSBDF) in March 2024, jointly managed by Malaysian Investment Development Authority (MIDA) and Enterprise Singapore (EnterpriseSG). This fund provides support for businesses and associations from both countries to jointly undertake missions, feasibility studies and pilot projects, particularly in emerging sectors such as the digital economy and green economy. Since its launch, over 20 Malaysia and Singapore businesses have tapped on the MSBDF to expand into third-country markets such as the United States and Thailand via business missions.

The Leaders further commended the progress in economic cooperation in emerging areas under the Frameworks on Cooperation (FoC) in Digital Economy and Green Economy, which were signed in January 2023. For the Digital Economy, both sides made progress in cross-border e-payment linkages through the launch of the real-time payment systems linkage between Singapore’s PayNow and Malaysia’ DuitNow on 17 November 2023. Key bilateral digitalisation cooperation projects fostered include areas like trade facilitation; cloud computing; standards for e-commerce transaction and last mile delivery; and anti-online scam protection. Both sides also launched the Capacity Development Programme for Exporters aimed at supporting exporters’ sustainability transition led by the Malaysia External Trade Development Corporation (MATRADE) and EnterpriseSG. These initiatives aim to digitalise cross-border trade activities and interoperability, as envisioned in the FoC in Digital Economy, while paving the way for the establishment of the ASEAN Digital Economy Framework Agreement in 2025 and supporting exporters to meet the sustainability requirements. As of October 2024, notable progress has been made under the FoC in Green Economy including low-carbon solutions, collaboration on carbon credits, ongoing environmental, social and governance (ESG) dialogues/events, advancements in electric vehicles (EVs), as well as carbon capture and storage (CCS). As key trading partners, both countries reaffirmed that collaboration in this area is essential to ensuring the seamless flow of trade, fostering economic stability, and enhancing resilience in the face of global disruptions.

The Leaders underscored the significance of Malaysia and Singapore’s shared commitment to advance sustainable practices and joint efforts between Malaysia’s Ministry of Economy (KE) and Singapore’s MTI in matters related to transboundary carbon capture and storage (CCS). The Leaders noted the effort by the Government of Malaysia to establish a comprehensive regulatory framework to govern the carbon capture, utilisation and storage (CCUS) activity along the value chain. This effort marks a crucial step towards enabling a bilateral arrangement for transboundary CCS operations. In this spirit, both Leaders welcomed the exchange of the MOU in the Field of Carbon Capture and Storage by Malaysia’s KE and Singapore’s MTI at the Retreat and looked forward to establishing a binding bilateral agreement between both countries to enable cross-border CCS.

With the view of enhancing economic cooperation, the Leaders welcomed trade expansion efforts, including through the launch of the MATRADE Singapore Office on 14 June 2024. The Leaders also welcomed the mutual recognition of Malaysia’s Authorised Economic Operator Programme and Singapore’s Secure Trade Partnership Programme by the Royal Malaysian Customs Department and Singapore Customs from 30 July 2024, which will facilitate the flow of goods between the two countries.

The Leaders acknowledged the progress made under the MOU on Collaboration on Development of Malaysia and Singapore SMEs signed between SME Corporation Malaysia and EnterpriseSG at the last Retreat. Both countries will continue collaborating on SME development by exchanging knowledge and best practices and encouraging SMEs to participate in business matching sessions and events.

Environmental Cooperation and Sustainable Development

The Leaders welcomed the close inter-agency cooperation on transboundary environmental issues through platforms such as the Malaysia-Singapore Joint Committee on the Environment (MSJCE) and Malaysia-Singapore Annual Exchange of Visits (MSAEV), which convened on 26 and 27 November 2024 respectively. Through the MSJCE and MSAEV, both sides welcomed concrete progress in the control of vehicular emissions, joint monitoring of water quality, the exercises and collaboration on emergency responses to chemical and oil spill incidents, as well as exchanging information on the ecology and morphology in and around the Straits of Johor. The Leaders also reaffirmed both countries’ commitment to monitor, exchange information on, and discuss matters affecting the environment in the Straits of Johor. Both Leaders also acknowledged the MSJCE’s update, noting that both countries had exchanged some information on and discussed land reclamation works affecting the environment in the Straits of Johor and their potential adverse transboundary impact. The Leaders encouraged continued efforts to promote cross-border environmental protection through joint exercises and capacity-building; reiterated the importance of enhancing capabilities to address areas of mutual concern; and emphasised the importance of information sharing and implementing mitigating measures.

The Leaders also welcomed the exchange of the MOU for Cooperation in Cooperative Approaches under Article 6, Paragraph 2 of the Paris Agreement by Malaysia’s Ministry of Natural Resources and Environmental Sustainability (NRES) and Singapore’s MTI at the Retreat. The Leaders also looked forward to establishing a binding bilateral agreement and affirmed both countries’ continued partnership for sustainable growth and environmental stewardship.

The Leaders emphasised their commitments in ensuring the obligations under the 1962 Johore River Water Agreement (62WA) are fulfilled. The Leaders commended the continued efforts made by Malaysia’s Ministry of Energy Transition and Water Transformation (PETRA) and Singapore’s Ministry of Sustainability and the Environment (MSE) to promote the shared interests of both nations under the 62WA. They expressed their deep appreciation for the enduring partnership between Johor and Singapore water authorities. They encouraged the continuation of this productive collaboration. During the PETRA-MSE Joint Technical Committee meeting held on 25 November 2024, both parties agreed to discuss issues related to yield, water quality, and resilience of the Johore River at the technical level, to ensure the sustainable supply of the Johore River to the extent required by the 62WA. The Leaders also instructed the officials to continue discussions through the Joint Technical Committee on measures to increase the yield and safeguard the water quality of the Johore River such as on the possibility of collaboration; as well as continue discussions on raw and treated water prices, without prejudice to each other’s respective long-declared positions on the right to review the prices under the 62WA.

The Leaders acknowledged the significant progress and successful implementation of the cross-border trading of green electricity between both countries, including the inaugural pilot supply of green electricity from Malaysia by Tenaga Nasional Berhad (TNB) to Singapore through Sembcorp Power Pte. Ltd. under the Cross-border Electricity Sales for Renewable Energy scheme, via the Energy Exchange Malaysia (ENEGEM) auction platform. TNB will supply 50MW of electricity coupled with green attributes to Sembcorp Power in Singapore. Building on the outcome of the pilot exercise, both Malaysia and Singapore will continue to enhance collaboration in cross-border trading of renewable energy including exploring pathways towards a credible framework for the mutual recognition of green attributes associated with cross-border electricity trade, to support both countries' aspirations toward a sustainable and low-carbon future.

The Leaders reaffirmed the commitment to continue exploring and enhancing collaboration in cross-border trading of electricity and renewable energy, in pursuit of their shared goals of decarbonisation, energy security and economic growth. The Leaders noted positive momentum in discussions for Singapore to import renewable energy from Sarawak and efforts to accelerate the process. The Leaders noted the ongoing joint feasibility study by TNB and SP Group to maximise the use of the existing interconnector. To enable longer-term large scale bilateral and regional power trade, the joint feasibility study will also seek to expand interconnector capacity and infrastructure between Singapore and Malaysia. The Leaders also welcomed enhanced cross-border electricity trade through the increase in capacity of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP), which saw the implementation of multilateral power trade with the inaugural flow of power from Malaysia to Singapore up to 100MW that commenced in September 2024.

The Leaders welcomed the aforementioned initiatives as among the important steps toward the realisation of deeper regional power exchange and integration under the auspices of the ASEAN Power Grid, which will accelerate the region’s economic growth and energy transition. The Leaders reaffirmed their commitment to deepen regional collaboration on the ASEAN Power Grid during Malaysia’s ASEAN Chairmanship in 2025.

The Leaders welcomed the exchange of the MOU on Cooperation in the Field of Urban Development by Malaysia’s Ministry of Housing and Local Government and Singapore’s Ministry of National Development at the Retreat. This MOU will support greater cooperation and demonstrate a strong commitment to advancing sustainable urban development through technical exchanges, and sharing of knowledge in urbanisation. Areas of focus could include land use planning (e.g., town planning, urban redevelopment, urban mobility, urban liveability, urban sustainability), provision of good quality and smart homes and municipal management with the aim to foster more inclusive, resilient, sustainable, and liveable cities that are better equipped to handle the demands of modern urbanisation while improving the quality of life for their citizens.

Border and Connectivity Cooperation

The Leaders noted that the Causeway marked its 100th anniversary on 28 June 2024, which was a poignant reminder of a century of cooperation and the enduring ties that bind the two nations. With a daily traffic flow of around 300,000 people, the Causeway facilitates traffic, transportation, tourism and enhances people-to-people ties between the two countries. The Leaders welcomed efforts by both sides to commemorate the milestone. Singapore Post and Pos Malaysia jointly issued commemorative stamps, and the National Heritage Board of Singapore launched its commemorative travelling exhibition entitled, “The Causeway: A Century of Connection” which documented the history and evolution of the Causeway.

Given the importance of cross-border connectivity and security, the Leaders expressed satisfaction with the good progress of the Johor Bahru-Singapore Rapid Transit System (RTS) Link project, following the commemorative ceremony in January 2024 to commemorate the completion of the drop-in span, which connects both sides of the marine viaduct. The Leaders noted that both countries’ infrastructure companies are progressively granting RTS Operations Pte Ltd, the operating company for the RTS Link, access to civil infrastructures for it to commence installation of rail systems. When completed, the RTS Link will have a peak capacity of 10,000 passengers per hour in each direction. The RTS Link will complement the establishment of the JS-SEZ, further strengthen connectivity between Johor and Singapore, and support the development of a vibrant economic ecosystem. The Leaders called on their officials to continue their close cooperation to ensure the project is completed on time and for passenger service to begin by December 2026.

Both Leaders recognised the importance of improving the efficiency and experience of cross-border travel and acknowledged the coordinated efforts by agencies from both countries, under the JMCIM Immigration and Transportation Links Work Groups, to address congestion at the land borders. The Leaders welcomed the progress made in building up our respective immigration clearance systems including through initiatives like digitalisation via QR code clearance and automated clearance lanes, which have contributed to a faster and more seamless clearance process for travellers. Both Leaders welcomed further efforts to address congestion at the Causeway and noted Singapore’s plans to redevelop Woodlands Checkpoint to further smoothen cross-border movement of people and goods.

The Leaders reaffirmed their commitment to review the delegation arrangements for the provision of air traffic services over Southern Peninsular Malaysia, which were recommended and approved by ICAO in 1973. The Leaders agreed that the delegation arrangements do not affect sovereignty and that the review should be in accordance with ICAO’s requirement for safe and efficient air traffic management as well as to accommodate both countries’ current and future operational needs. Both Leaders tasked the Transport Ministers to guide the civil aviation authorities to further progress the discussions, and to meet regularly to exchange views on issues of shared interest.

Maritime Boundary

The Leaders noted with appreciation the Joint Report submitted by the Attorneys General of Malaysia and Singapore, and commended the efforts made by both delegations in the Joint Meeting of the Malaysia-Singapore Joint Technical Committee on the Implementation of the International Court of Justice Judgment on Pedra Branca, Middle Rocks and South Ledge and the Committee for Boundary Delimitation Pursuant to the Agreement between the Foreign Ministers of Singapore and Malaysia on 14 March 2019 (Joint MSJTC and CBD Meeting) held since the last Retreat. Both sides remain committed to resolve the outstanding maritime boundary issues between the two countries.

The Leaders noted the good progress made at the Meeting of the Technical Working Group on the Agreement between the Government of Malaysia and the Government of the Republic of Singapore to Delimit Precisely the Territorial Waters Boundary in accordance with the Straits Settlements and Johore Territorial Waters Agreement 1927 (1995 Agreement). Since June 2023, the Technical Working Group (TWG) met four times, with the fourth meeting held in Singapore on 11 and 12 November 2024. Both countries agreed to and signed the Terms of Reference (TOR) and Scope of Works (SOW) for the TWG. In this regard, both countries also agreed to an indicative timeline with joint technical works starting in 2025. Both Leaders urged the TWG to continue the effort in determining the actual location of the international boundary in the Johor Strait under the 1995 Agreement.

Socio-Cultural Cooperation

The Leaders underscored the important role of regional cooperation in education and expressed a shared commitment to enhancing basic education through collaborative initiatives. To this end, both sides have agreed to commence the Malaysia-Singapore English Volunteers Programme (MSEVP) in 2025. Yayasan Guru Tun Hussein Onn (YGTHO) and Singapore International Foundation (SIF) are in discussions to conduct a pilot programme later this year. Under the MSEVP, volunteers from Singapore will assist with the teaching of the English language in selected schools and states in Malaysia. The MSEVP reflects the shared interest of both countries to invest in young people and promote greater people-to-people and professional exchanges. This initiative will also create meaningful opportunities for mutual learning and long-term educational benefits.

The Leaders welcomed the exchange of the MOU on Cooperation in the field of Higher Education by Malaysia’s Ministry of Higher Education and Singapore’s Ministry of Education at the Retreat. The MOU will further strengthen educational cooperation between Singapore and Malaysia, and pave the way for greater institutional partnerships, people-to-people exchanges, and information sharing between the respective institutes of higher learning.

The Leaders also noted that Malaysia’s Ministry of Health and Singapore’s Health Sciences Authority signed an MOU on Cooperation in the Field of Pharmaceutical Regulatory Affairs on 6 May 2024. The MOU will further strengthen cooperation in pharmaceutical regulation to better protect public health and safety.

The Leaders welcomed the exchange of the MOU on Cooperation in the Fields of Social Welfare, Women, and Persons with Disabilities' Empowerment, Family, Children and Community Development by Malaysia's Ministry of Women, Family and Community Development and Singapore's Ministry of Social and Family Development, at the Retreat. This MOU underscores the shared commitment to collaboration in the fields of social welfare, women’s empowerment, the empowerment of persons with disabilities, as well as family, children, and community development with the aim to build cohesive, resilient, and supportive communities.

Both sides welcomed and encouraged initiatives to commemorate the 60th anniversary of bilateral relations between the two countries, including the Triennial Cultural Showcase (TCS) which Singapore will host this year in Malaysia. Events like the TCS give an opportunity for both sides to envision a future of even closer collaboration and reinforce the mutual respect and friendship that define the strong bilateral ties.

Noting the abiding cultural and people-to-people linkages, the Leaders have committed to strengthening bilateral relations in the fields of arts, culture, and heritage. In this regard, both countries have agreed to jointly nominate Chingay onto the UNESCO Representative List of the Intangible Cultural Heritage of Humanity in 2025. Traditionally held during Chinese New Year celebrations, the Chingay Parade has evolved into a major event in both countries, with active participation from communities of diverse backgrounds, ethnicities, and age groups. The UNESCO nomination will mark a significant milestone in preserving and promoting this shared living heritage of Malaysia and Singapore. The Leaders noted that this will be the second joint nomination by both countries, following the successful multi-national inscription of the kebaya with Brunei, Indonesia, and Thailand that was announced on 4 December 2024.

Regional and International Developments

The Leaders reaffirmed the importance of ASEAN as a platform for regional cooperation, and emphasised that ASEAN Centrality and resilience, especially in an increasingly uncertain international environment, will remain critical. Both Leaders stressed the need for ASEAN to stay relevant and cohesive in addressing regional and global issues, as well as to push ahead with its integration efforts. On the situation in Myanmar, the Leaders reiterated their commitment to the Five-Point Consensus and the ASEAN Leaders' Review and Decision on the Implementation of the Five-Point Consensus. Prime Minister Dato’ Seri Anwar Ibrahim also expressed his appreciation to Prime Minister Lawrence Wong for Singapore's strong support for Malaysia’s Chairmanship of ASEAN in 2025.

Conclusion

The Leaders welcomed the exchange at the Retreat of the Johor-Singapore Special Economic Zone (JS-SEZ) Agreement; the Letter of Intent (LOI) between Yayasan Guru Tun Hussein Onn (YGTHO) and Singapore International Foundation (SIF) on the Malaysia–Singapore English Volunteers Programme (MSEVP); MOU on Cooperation in the Field of Higher Education; MOU on Cooperation in the Fields of Social Welfare, Women, and Persons with Disabilities' Empowerment, Family, Children and Community Development; MOU for Cooperation in Cooperative Approaches under Article 6, Paragraph 2 of the Paris Agreement; MOU in the Field of Carbon Capture and Storage; MOU on Cooperation in Preventing and Combatting Transnational Crimes; and MOU on Cooperation in the Field of Urban Development. The Leaders encouraged their respective officials to take prompt follow-up actions under the MOUs to ensure that the commitments made are translated into tangible outcomes. Both Leaders expressed confidence that by maintaining a proactive and results-oriented approach, the initiatives outlined in the multifaceted MOUs will be successfully implemented. This will further strengthen the bilateral relationship and deliver mutual benefits for both countries.

The Leaders also instructed officials of both sides to expedite their deliberations towards the conclusion of other pending bilateral instruments by the 12th Annual Leaders’ Retreat.

The Leaders looked forward to Singapore hosting the 12th Retreat.

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