Reimagining Regional Economic Integration: Lessons from the Shenzhen-Hong Kong Model for the Johor-Singapore Special Economic Zone (JS-SEZ)
List of Authors
Qingrui Dong, Ui Joo Ooi
Keyword
JS-SEZ, Cross-Border Economic Integration, Shenzhen-Hong Kong Model, Institutional Governance, Regional Development
Abstract
The Johor-Singapore Special Economic Zone (JS-SEZ) is a proposal that aimed to provide the economies of Malaysia and Singapore a closer integration of their economies. Because the two countries have always been intertwined and their economies are complementary, the JS-Singapore Industrial Park, which is known as the JS-SEZ, could aid in the development of both economies by taking advantage of the land and workforce in Johor and the money, technology and logistics supplied by Singapore. In order to verify this idea and see what it may be able to do, the study applies a contrastual methodology and compares a region just as large in the province of Shenzhen with that of Hong Kong. This study traces a definitive approach within the context of nation studies that the operationalization of the partnership is well established and there is sound cooperation among the concerned governments. The study further analyses the effects of the legal rules, governance and cross-border co-operation experiences in making the Shenzhen-HK zone beneficial to take the lessons and adapt them to the JS-SEZ. The paper focuses on the new JS-SEZ as a means to initiate new investment and integration, and compares it with the Shenzhen-Hong Kong zone, which is the most similar case in China. In spite of various rules and uneven capacity in the two countries, the report state that these difficulties can be resolved by setting up a unified SEZ authority, making the laws of labor and investment more comparable, and enhancing the coordination between the two sides. Lastly, the paper provides policy recommendations that will assist the two countries to better cooperate and forge a more cohesive, regionally integrated Southeast Asian economy.