The southern Malaysian state of Johor may emerge as Southeast Asia's version of Shenzhen, experts say, with the Johor-Singapore Special Economic Zone, or JS-SEZ, expected to boost investments and partnerships between Singapore and Malaysia.

On Jan 11, Malaysian Prime Minister Anwar Ibrahim and Singaporean Prime Minister Lee Hsien Loong witnessed the signing of a memorandum of understanding in Johor Bahru city, which aims to develop a framework toward a legally binding agreement on the JS-SEZ.

It listed seven initiatives toward building the special economic zone, including implementing a passport-free QR code clearance system for both countries, creating a one-stop business and investment service center, and facilitating cooperation on renewable energy.

The JS-SEZ can streamline cross-border trade and investment policies and improve the flow of trade, logistics, people, and technology transfer.