SINGAPORE (Reuters) - Singapore and Malaysia said on Tuesday they have agreed to build a high-speed rail link between the wealthy city-state and Kuala Lumpur, part of growing economic ties between the Southeast Asian neighbors.
"This is a strategic development that will dramatically improve the connectivity between Malaysia and Singapore. It will usher in a new era of strong growth, prosperity and opportunities for both countries," the two governments said in a joint statement.
New customs, immigration and quarantine facilities at Puteri Harbour in the Malaysia's Iskandar economic zone will likely be set up this year, said the statement issued after a meeting between Singapore Prime Minister Lee Hsien Loong and his Malaysian counterpart Najib Razak.
The target to complete the rail link is 2020, Lee said. The two prime ministers have tasked a joint ministerial committee to look into the details of the rail link, the statement said.
The two leaders will also officiate joint venture projects involving state investors Temasek Holdings
Temasek and Khazanah agreed in 2011 jointly to develop "wellness" projects in Iskandar that they believe will be worth around 3 billion ringgit when completed.
Singapore companies dominate the firms setting up factories in Iskandar after being initially lukewarm. Interest picked up only after the two countries signed a broad agreement in 2010 to address longstanding issues.
A number of Singapore residents have already bought homes in Iskandar, including Templeton fund manager Mark Mobius, who has a bungalow for weekend getaways.
Singapore government-linked firm Ascendas, whose projects include the Singapore Science Park and the International Tech Park in Bangalore, said in October it will help build a $1.2 billion industrial park in Iskandar.
($1 = 3.0940 Malaysian ringgits)
(Reporting by Kevin Lim; Editing by John O'Callaghan)
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