New Sabah, Sarawak consulates among outcomes from Singapore-Malaysia Leaders’ Retreat

Public agencies from both countries will also work together on coordinated activities and exercises to prevent and control illicit drug trafficking.

Asked at the press conference whether the matter of capital punishment for drug offences was discussed, given that a number of Malaysians had been executed, PM Wong said it was not. He added that it has not resulted in bilateral issues.

“Singapore’s strong and tough stance against drugs is very clear,” he said.

“We hope that all countries understand why the rationale for our strong stance and respect the way in which we can go about conducting our policies on this front.”

Datuk Seri Anwar said that due legal process has to be respected, and stressed also Malaysia’s strong stance against drugs.

“I’m not suggesting, therefore, the families cannot appeal. They cannot be turned into a major or any political issue or differences, if at all,” he added.

PM Wong said that officials from both countries are discussing reciprocal improvements to the cross-border taxi scheme, with the goal of improving convenience for commuters.

Under the existing scheme, a licensed fleet of up to 200 taxis each from Singapore and Malaysia can ferry passengers between the Republic and Johor Bahru.

Senior Minister of State for Transport Sun Xueling

that the authorities of the two countries are discussing allowing Malaysian taxis to drop off passengers anywhere in Singapore rather than at a designated spot, and for Singapore taxis to do likewise in Johor Bahru.

PM Wong noted that the demand for cross-border taxis has been increasing at a significant rate and that present services cannot cope with the rising demand.

He said this is an area with a lot of common ground between Singapore and Malaysia and there has been very good progress on discussions on this front, with updates expected soon.

Citing the Energy Market Authority’s recent award of conditional approval for a proposal by Sembcorp Utilities to

, PM Wong said there has been good momentum in the energy partnership between the two countries.

He said that Singapore and Malaysia are planning to expand the capacity for cross-border electricity trade through a second electricity interconnector. It was previously reported that the interconnection is targeted to start operations by 2030.

The first interconnection between the two countries was established in 1983 with the primary purpose of supporting both countries’ power grids.

PM Wong said that Singapore-based companies have committed over $5.5 billion in investments in the JS-SEZ since January 2024.

He said that both countries welcome the ratification of the JS-SEZ agreement, which was

. “There is tremendous potential for this to grow further. We have only just begun.”

Under the wide-ranging agreement, both countries have committed to promoting and facilitating investments in 11 economic sectors from Singapore and other countries into the zone.

These sectors are manufacturing, logistics, food security, tourism, energy, the digital economy, the green economy, financial services, business services, education and health.

The two countries are continuing to discuss three outstanding and longstanding bilateral issues – airspace, water and maritime boundaries.

PM Wong said that the three issues are complex and there are differences in views, but both sides will continue engaging in good faith.

“We look forward to working with Malaysia to achieve positive and durable outcomes with a balance of benefits for both sides,” he said.

He announced that a joint study on optimising air traffic management between the two countries will be carried out.

Talks on air traffic arrangement are aimed at meeting the current and future needs of both countries.

Discussions are centred on how the airports in the two countries – in Kuala Lumpur, Senai, Changi and Seletar – can operate safely and efficiently, in line with International Civil Aviation Organisation requirements.

In a joint statement, both leaders said they encouraged continued discussions on the way forward regarding raw and treated water prices through an existing joint technical committee, “without prejudice to each other’s respective long-declared positions on the right to review the prices” under the 1962 Water Agreement.

Singapore and Malaysia also have a shared interest in increasing the yield and safeguarding the water quality of the Johor River, said PM Wong.

He noted that this will help guard against extreme weather changes or disruption scenarios, meet Johor’s growing needs, and meet Singapore’s needs as provided for under the 1962 Water Agreement.

He said that with the increase in demand for water and the potential for scenarios of disruption, officials from Malaysia and Singapore have been meeting to see if there are possibilities for collaboration, especially to create new infrastructure that will strengthen the resilience of the water supply.

PM Wong said officials on both sides have had several rounds of discussions on maritime boundaries.

The contested boundaries are in both the east and west of the border between the two countries.

Both sides better understand each other’s position, but require more time to resolve differences, he said.