Singapore and Malaysia have agreed to create a joint special economic zone in Malaysia's border state of Johor to boost investment.

Singaporean Prime Minister Lawrence Wong and Malaysian counterpart Anwar Ibrahim announced the agreement on Tuesday.

In a joint press conference, Anwar said, "The SEZ is a unique initiative. Very rarely you find two countries working together as a team" to promote both countries.
Wong said, "It is an important project which will build on the complementary strengths of Singapore and Johor so that we can both be more competitive, enhance our value proposition, and jointly attract more investments to our shores."
The special economic zone will stretch over 3,500 square kilometers, including the state capital of Johor Bahru.

The project also seeks to enhance the movement of people and goods by streamlining transportation between the neighbor countries.

The deal is expected to create 20,000 skilled jobs within five years on both sides.