Malaysia’s Johor state is proposing to establish a special economic zone with neighbouring Singapore, aspiring to transform into the ‘Shenzhen of Southeast Asia’. The zone will include Iskandar Malaysia and Pengerang, covering a vast area of 3,505 square kilometres—nearly twice the size of China’s Shenzhen. Johor Menteri Besar Onn Hafiz Ghazi announced the proposal, with official discussions set to start in June and plans to finalise the agreement by year’s end. The envisioned zone aims to foster economic growth in 16 sectors, such as electronics, manufacturing, healthcare, and tourism. Iskandar Malaysia, initiated in 2006, and Pengerang, known for its significant petrochemical complex, are both critical to this ambitious development.