Donald Trump’s Malaysian strategy: strengthening ties between Kuala Lumpur and Singapore to reshape the regional balance in Southeast Asia

On January 27, 2025, Malaysia and Singapore signed an agreement to establish a new Johor-Singapore Special Economic Zone (JS-SEZ). According to it, the states will unite to jointly attract foreign investment in the nine flagship territories of the Malaysian state of Johor, the land areas with which Singapore borders.

These investments will cover 11 economic sectors, including technological production, energy, logistics, and finance. According to the plan, JS-SEZ is expected to generate $26 billion in annual revenues, create up to 20,000 jobs, and launch 100 projects by 2035.

This is the first case of strategic economic integration between the two countries since Singapore seceded from Malaysia in 1965. The JS-SEZ model copies the interaction between the economically developed post-British Hong Kong and Chinese Shenzhen since 1997.