After many years of delays, Malaysia and Singapore have signed a deal to establish the Johor-Singapore Special Economic Zone (JS-SEZ).

This comes as the two nations seek to develop a new economic growth area centered on one of the busiest land crossings in the world.

Modelled after China’s Shenzhen Special Economic Zone, the JS-SEZ will provide tax breaks and ease the transit of goods and people between Johor and Singapore, which are separated by a 1km causeway.

The target of this agreement is to hit 100 projects in the first 10 years, creating 20,000 skilled jobs for people on both sides of the Causeway.

Is this an achievable target? What benefits will this SEZ bring to both nations? 

On The Big Story, Hongbin Jeong speaks with Sumit Agarwal, Low Tuck Kwong Distinguished Professor of Finance at the Business School and a Professor of Economics and Real Estate at the National University of Singapore to find out.