Malaysia and Singapore leaders have signed an agreement to create a special economic zone to attract global investment and ease the cross-border flow of goods and people.

The leaders of Malaysia and Singapore are set to formalize an agreement establishing a special economic zone linking their two nations’ border region, but the prospects for immediate economic benefits may hinge on implementation of a deal that has seen repeated delays since talks began in 2023.

Malaysia and Singapore announced on Tuesday an agreement on a special economic zone in the southern Malaysian state of Johor, aiming to support investment and free up movement of goods and people between the countries.