Malaysia and Singapore are interested in a border special economic zone.

Together, Singapore and Malaysia will establish a special economic zone along their shared border in an effort to gain stronger connectivity and stronger business ties as the two Southeast Asian nations face challenges from the sluggish global economy.

For their first "leaders' retreat" after the COVID-19 pandemic abated, Malaysian Prime Minister Anwar Ibrahim and Singaporean Prime Minister Lee Hsien Loong met in Singapore on Monday. Both men depicted exchanges between the two nations in broad strokes.

A projected Special Economic Zone to be constructed in Malaysia's Johor state, directly across the border dividing Singapore from its northern neighbor, was one of the main areas of cooperation.

The leaders of the special economic zone "will tap into the complementary strengths of both countries to foster economic connectivity by improving cross-border flows of goods, investments, and people," as stated in a statement released jointly on Monday.

In the middle of the year, the zone became a focus of collaboration, and Anwar stated at a joint news conference on Monday that the goal was for both parties to sign an agreement on it by January 2024.

Regarding the project's status, Anwar stated, "We have given them a very short timeline to get them to agree on the parameters." "I think we look forward to having some sort of arrangement, an agreement or understanding by mid-January."