A planned signing between Malaysia and Singapore of a deal to create a special economic zone in the southern Malaysian state of Johor will likely be postponed to January, Malaysia Prime Minister Anwar Ibrahim said on Wednesday.

The signing was originally planned for during the annual Singapore-Malaysia Leader’s Retreat scheduled from Dec 8-9 in Malaysia’s administrative capital, Putrajaya.

Malaysia’s prime minister said the planned signing was rescheduled after Singapore’s Lawrence Wong contracted Covid-19.

SINGAPORE: A major step forward in economic collaboration between Malaysia and Singapore is set to unfold on Dec 9, when the joint agreement for the Johor-Singapore Special Economic Zone (JS-SEZ) is expected to be signed.

A deputy minister cited cost savings as a reason, and that Malaysia needs to achieve a “net-zero dependency” by being capable of producing treated water in Johor before reviewing any new changes.

Malaysia and Singapore will postpone next week’s signing to formalize a special economic zone in Johor, Malaysia Prime Minister Anwar Ibrahim said on Wednesday.

Malaysia and Singapore will postpone next week’s signing to formalize a special economic zone in Johor, Malaysia Prime Minister Anwar Ibrahim said on Wednesday. Most Read from BloombergAs Wars Rage, Cities Face a Dark New Era of Urban DestructionRiyadh Metro Partially Opens in Bid to Ease City’s Traffic JamsAnwar said Malaysia was asked to reschedule the annual leadership meeting with Singapore to January after Prime Minister Lawrence Wong contracted Covid.