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Shared Sustainability Challenges between Malaysia and Singapore

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Shared Sustainability Challenges between Malaysia and Singapore
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Although the webinar concluded two months ago, I have only recently found the time to pen down my thoughts on the shared sustainability challenges between Malaysia and Singapore.
 
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Both Malaysia and Singapore face a range of interconnected sustainability challenges that stem from climate change, resource constraints and rapid development. Rising temperatures, more frequent extreme weather (storms, floods and droughts) and sea-level rise threaten both countries.
 
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Severe rain disrupted Singapore in Jan 2025, from flight delays to cancelled events.
 
A recent regional survey found that about 55% of Malaysians identified climate change and extreme weather as their top concern, reflecting the severe impacts already being felt (Malaysia saw 127 extreme events in 2023, compared to only one in 2013). Both countries must therefore build resilience to disasters – ranging from coastal flooding (Singapore is low-lying) to intense monsoon rains (Malaysia’s coasts) – while reducing greenhouse gas emissions.
 
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Water security is a major shared issue. Singapore, with no natural reservoirs, relies on imported raw water from Malaysia (currently 250 million gallons/day under a long-term treaty) and on expensive alternatives (desalination and high-tech recycling). Malaysia’s southern state of Johor supplies much of this water but is now investing heavily (over RM5 billion) in new reservoirs and treatment plants to meet its own needs and reduce dependence on Singapore. The state consumes about 371 million gallons/day (and rising with new data centers) while still obliged to send 250 mgd to Singapore. These dynamics mean any water shortfall or pollution in Johor could rapidly affect Singapore’s supply.
 
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Landfill at Pulau Semakau, Singapore (2020)
 
Waste management illustrates another critical challenge. Singapore’s only landfill at Pulau Semakau is more than half full and expected to reach capacity by 2035. With waste disposal rates rising and recycling levels stagnating, Singapore urgently needs to ‘save Semakau’ by reducing trash generation and finding alternatives. Malaysia’s waste problem is also growing: rapid urbanisation and rising consumption have led to a surge in garbage that strains collection and disposal systems. The Malaysian government has launched a National Circular Economy Blueprint (2025–2035) and aims for a 40% national recycling rate by 2025. Both countries will have to innovate in circular economy practices (e.g. extended producer responsibility and waste-to-energy) to avoid environmental degradation.
 
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Urban Heat Island Effects (World Meteorological Organisation)
 
The pace of urbanisation and economic growth puts pressure on both countries’ liveability. Dense cities like Kuala Lumpur and Singapore suffer from urban heat island effects, exacerbating extreme heat and haze problems. For instance, the urban heat island in KL has been linked to severe air pollution episodes and economic losses. Traffic congestion and air quality are worsening in both urban areas. Johor’s main roads (like Pasir Gudang Highway) are already choked during peak hours, and Singapore’s limited land makes expanding roads or waste sites extremely difficult. Seasonal transboundary haze (from regional forest fires) periodically blankets both countries, highlighting the need for stronger regional cooperation on air quality.
 
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Biodiversity Loss
 
Biodiversity and habitat loss are shared concerns. Malaysia, one of the world’s most biodiverse nations, has lost vast tracts of forest to agriculture and palm oil (nearly 40% of its oil palm plantations are on formerly forested land). This deforestation not only threatens wildlife but reduces carbon sinks and worsens flooding. Singapore has also altered much of its natural coast through land reclamation: reclaimed land now accounts for a substantial share of its area, leading to the loss of intertidal and coral habitats. More than 28% of Singapore’s native plant and animal species have gone extinct, even as new (often non-native) species are introduced. Both countries now invest in nature reserves and mangrove restoration to protect remaining biodiversity, but the pressure remains high.
On energy and decarbonisation, Singapore and Malaysia face different constraints. Malaysia still relies heavily on fossil fuels: over 90% of its energy is from oil, gas and coal. In 2023 roughly 43% of Malaysia’s electricity came from coal and 36% from natural gas. Singapore has practically no domestic energy sources and depends entirely on imported fuels (primarily natural gas) for power generation. Both have set ambitious decarbonisation targets: Singapore has committed to net-zero emissions by 2050, and Malaysia’s 2023 Energy Transition Roadmap charts a path to net-zero by 2050 with a shift from coal to gas and massive expansion of renewables. However, land and resource limitations mean Singapore will rely on innovative solutions (like hydrogen and solar deployment) and regional energy links, while Malaysia must balance its current coal-dependent grid with planned wind and solar projects. (Malaysia’s solar energy is currently under 2% of electricity, despite the country’s huge potential)
Effective governance is crucial but challenging. Singapore’s highly-centralised administration allows swift policy implementation, whereas Malaysia’s federal system can lead to fragmented policies between the national and state levels. Experts note that inconsistent regulations across Malaysian states (especially Sarawak and Sabah versus peninsular states) have “put the country’s nature-based projects at significant regulatory and reputational risks.” These gaps make it hard to coordinate environmental planning and climate action. Both countries also face implementation challenges: enforcing regulations (for example on pollution or building standards) requires strong institutions and public compliance. Bridging the gap between policy intent and on-ground action – through clear standards, transparency and stakeholder engagement – will be vital.
Finally, the social dimension of sustainability cannot be overlooked. Growth and green policies must be inclusive. Low-income or rural communities in Malaysia often lack basic services (like clean water or public transport) compared to urban residents, worsening inequality. Similarly, in Singapore, vulnerable groups may bear disproportionate burdens (for example, low-wage workers suffer most during haze episodes or urban heat spikes). Ensuring affordable housing, jobs in emerging green industries, and support for those displaced by change (e.g. from coal sector or fishers affected by reefs damage) is essential for a just transition. Public awareness and behavioural change campaigns such as education on recycling or energy conservation will help make sustainability a societal norm.
Beyond the shared sustainability challenges between Singapore and Malaysia, we must also look into specific challenges each country faces.

Singapore-specific Challenges

  • Land scarcity and high density. Singapore’s total land area is limited and shrinking only through reclamation, which itself is restricted by environmental and geopolitical concerns. This constraint exacerbates all other issues: for example, there is little room to expand water catchments or landfill sites, so Singapore must innovate (using desalination and underground reservoirs) to secure water, and pursue aggressive waste reduction because Semakau is projected to fill by 2035. Similarly, renewable energy options are constrained (solar is limited by roof area, there is minimal hydro or wind potential), forcing Singapore to explore cross-border energy imports and advanced solutions like hydrogen.
  • Dependency on imports. Nearly all of Singapore’s water, energy and food comes from overseas. The country’s water agreement with Malaysia (which allows 250 million gallons/day from Johor until 2061) is a lifeline, but also a vulnerability if relations sour or if climate change reduces flows. Food security is bolstered by diversified imports and local high-tech farming, but supply chains remain sensitive to global shocks. Singapore’s Resource Constraints also include labour: an ageing population and skilled labour shortages in technical fields pose challenges to sustaining economic and environmental projects.
  • Waste landfill constraints. As noted above, Singapore’s landfill is finite. The government’s Save Semakau campaign and a per-capita waste rationing system indicate how urgent this issue is. Not many countries face such extreme land constraints that even ash from incinerators must be recycled or compressed – a unique Singaporean dilemma.
  • Balancing growth and liveability. Singapore frequently faces trade-offs between development and quality of life. For example, building new housing or industry might raise GDP and jobs, but at the cost of green space or heritage sites. The government must constantly balance economic objectives with sustainability and liveability goals (green buildings, public parks, clean air). Initiatives like the Singapore Green Plan 2030 and stringent environmental regulations (for pollution, vehicle emissions, etc.) reflect efforts to tilt policy toward sustainability but tensions remain, especially in periods of slower growth when environmental measures might be seen as constraints.

Malaysia-specific Challenges

  • Land use conflicts and deforestation. Malaysia’s rich forests and oil palm plantations are a source of economic gain but also of environmental loss. Expansion of agriculture (notably palm oil) and infrastructure has historically driven deforestation – about 39.6% of Malaysia’s oil palm areas come from land cleared of forests. These land use conflicts threaten biodiversity (Malaysia is home to tigers, orangutans, etc.), increase carbon emissions and degrade watersheds. Balancing agricultural and developmental needs with conservation (through protected areas, sustainable agroforestry and reforestation) is an ongoing struggle.
  • Governance fragmentation. Malaysia’s federal structure means state and local governments have significant power, often with different priorities. This can slow or complicate nationwide policies on sustainability. For instance, states may have their own energy or forestry regulations that do not align neatly with federal climate targets, making unified action difficult. Harmonising policies (via inter-governmental councils, incentives for states) is a key challenge.
  • Financing constraints. Many sustainability initiatives – such as green infrastructure, public transit expansion and renewable energy deployment – require large capital investments. Malaysia, like many developing economies, must juggle budgets for development and debt constraints. Limited access to affordable green financing (bonds, international climate funds) can hamper projects. Malaysia’s Climate Change and Green Growth reports note the need for blended financing and private sector participation to scale up green projects, but mobilising sufficient funds remains an issue.
  • Infrastructure gaps. Outside major cities, Malaysia still needs to build more roads, public transit, stormwater systems and waste facilities. Congested highways (Johor’s highway network is already overloaded) need upgrading to cope with growth. In rural areas, access to treated water and sanitation is uneven. The government’s multi-year plans now include infrastructure for flood mitigation (after the devastating 2021 floods) and urban transit (new mass-rail lines) but implementation can be slow and older infrastructure often lacks climate resilience.
  • Social equity – urban vs rural. Inequality between Malaysia’s urban population and rural communities is stark. Rural areas often lack basic services (healthcare, education, internet access) and opportunities. Transitioning to a low-carbon economy (e.g. if coal plants are retired) must ensure that coal-region workers have retraining and that farmers can adapt to climate impacts. Cultural factors also affect sustainability adoption: public awareness of recycling or energy saving varies, and behaviour change campaigns are needed to instil circular-economy mindsets. (Malaysia’s recent National Recycling Day and public education campaigns aim to address this gap.)
  • Energy mix challenges. Malaysia’s power grid remains heavily coal- and gas-based, so shifting to renewables and achieving the Paris targets requires substantial transition. Surging coal dependence (from ~13% of electricity in 2000 to over 43% in 2023) means a long way to go. Malaysia has abundant gas and hydro potential but solar and wind remain largely untapped. The planning and permitting processes for renewables and transmission lines need streamlining. (Notably, Sabah and Sarawak have launched their own solar roadmaps, which must be integrated with national planning.)

Johor–Singapore Special Economic Zone: Opportunities and Risks

The new Johor–Singapore Special Economic Zone (JS-SEZ) is a landmark strategic partnership covering about 3,500 km² (four times Singapore’s land area) in southern Johor. It is designed to unlock cross-border economic synergies by focusing on 11 sectors – including advanced manufacturing, logistics, food security, education and green economy.
Early initiatives already aim to ease cross-border flows: for example, a new passport-free QR code system will expedite land checkpoint crossings and a single transshipment permit (replacing two permits) will simplify customs from 2025. Singapore and Malaysia are also fostering joint talent development, with partnerships between polytechnics, institutes of technical education and Malaysian skills councils.
There are clear sustainability opportunities in the SEZ: Johor provides land and resources to complement Singapore’s strengths, so the zone could host large-scale solar arrays or green industrial parks that neither side could build alone. The focus on a “green economy” sector suggests investments in clean energy, water recycling and green buildings. Joint infrastructure planning (for the new RTS transit link, ports and roads) can alleviate traffic chokepoints. The zone’s “Invest Johor Facilitation Centre” (IMFC-J) one-stop shop and other measures can reduce bureaucratic red tape, encouraging investors to introduce innovative sustainability models (such as off-grid microgrids or waste-to-energy facilities).
However, there are also risks. Rapid development could strain Johor’s environment if not managed carefully. For instance, 20 data centers are already operating or planned in Johor, which massively increases electricity and water demand. Experts warn that Johor must ensure ample water and electricity to cater to new SEZ investors; otherwise, domestic users and Singapore’s supply contract (250 mgd) could suffer. Land prices in Johor have surged in anticipation, potentially impacting living costs. Congestion is another concern: even with more rails, the influx of workers (up to 10,000 per hour when the RTS link opens) will require vastly expanded local transit and roads to avoid gridlock. Moreover, cultural and regulatory differences may slow integration. Analysts note that deep integration will take time, trust-building and long-term political will. Without careful planning, the zone could drift toward just more cross-border real estate deals, rather than genuinely sustainable growth.

Policy Measures and Collaboration

To capture the JS-SEZ’s green potential, both governments are exploring supportive policies. Proposed measures include fiscal incentives (such as special corporate tax rates and green technology subsidies) to draw clean-tech firms, and regulatory harmonisation (for example, aligning environmental impact assessment requirements across the border). Singapore may offer green finance incentives (e.g. ESG-aligned funding) to SEZ projects, while Malaysia can consider exemptions (stamp duty or duties) that speed project rollout. Both sides emphasise capacity building: the SEZ frameworks include joint vocational training programs and shared curricula in sustainability and Industry 4.0 technologies. A permanent cross-border SEZ council or joint authority is also recommended to oversee standards, monitor KPIs (economic, environmental, social) and manage conflicts.
Beyond the SEZ, broader cross-border collaboration can advance regional sustainability. Streamlining customs and immigration (already in progress with QR clearance) will reduce emissions from idling vehicles. Shared infrastructure projects could include interconnecting power grids: analysts suggest studying a formal energy exchange so that renewable surpluses (say, solar or hydropower) can flow between Singapore and Malaysia. Water agreements could evolve too, expanding recycling/reuse plans beyond the 1960s-era treaties. For example, treated water recycling plants in Johor could jointly serve both populations under new accords. Coordinated land-use and transport planning (linking Singapore’s Circle Line expansion with Johor’s new transit nodes) would create seamless mobility and reduce private car use.
Supply chain cooperation is another area: Singapore’s advanced R&D and design capabilities can complement Johor’s manufacturing and logistics base. Preferential procurement policies or green supply chain incentives (e.g. tax breaks for firms that source sustainably across the border) could build more resilient, decarbonised value chains. Joint research grants and pilot projects on low-carbon technologies (like carbon capture for cement, bio-circular plastics or electric vehicle charging networks) would allow both to pool resources. Similarly, a shared data platform for environmental monitoring (air quality sensors, water quality stations, carbon emissions tracking) would improve transparency. A “regulatory sandbox” could even test new green business models – for instance, cross-border e-mobility services or pay-as-you-throw waste schemes – with rapid feedback from community stakeholders.
In summary, Malaysia and Singapore share pressing sustainability challenges – from climate change and water security to waste and energy transition – that require collaborative solutions. The new Johor–Singapore Special Economic Zone offers a unique laboratory for sustainable development but success will depend on carefully managed integration: aligning policies, investing in green infrastructure, and ensuring the benefits (and burdens) are equitably shared. By working together on cross-border innovation, infrastructure and institutions, the two neighbours can turn common sustainability challenges into opportunities for a more resilient, inclusive and low-carbon future.

References

  1. Asia Natural Gas & Energy Assoc. (ANGEA), “Malaysia,” energy snapshot (2024)
  1. Bernard Business Consulting, “Malaysia’s Circular Economy Blueprint: A Paradigm Shift in Solid Waste Management,”2024
  1. Channel NewsAsia (Singapore), “Where will Singapore’s rubbish go after Semakau landfill is full?”, 24 Sept 2025
  1. Channel NewsAsia (Singapore), “Can Johor’s US$1.1 billion plan help it stop relying on Singapore for treated water by 2030?”, 14 March 2025
  1. Eco-Business (Singapore), “Climate overtakes economic woes as Southeast Asia’s biggest challenge,” 4 April 2025
  1. Enterprise Singapore, “About the Johor-Singapore Special Economic Zone,” website (2024)
  1. Illuminem, “Johor-Singapore: Navigating culture and infrastructure (Part 2),” environmental analysis, May 2023
  1. Malaysia Investment Development Authority (MIDA), “Key challenges to Johor-Singapore SEZ,” 27 Feb 2025
  1. Othering & Belonging Institute (Berkeley), “Climate Crisis, Displacement, and the Right to Stay: Malaysia,” case study (2023)
  1. S&P Global, Ivy Yin and Xinyi Tian, “Malaysia’s fragmented state policies imperil nature-based carbon project development,” 27 May 2024
  1. Singapore Nat’l Climate Change Secretariat, “Singapore commits to achieve net zero emissions by 2050,” press release, 25 Oct 2022
  1. World Meteorological Organization (WMO), State of the Climate in Asia 2023, press release, 23 April 2024

Written by

Amanda Yeo
Amanda Yeo

Co-Founder & CEO of Brighten Sphere Consultancy PLT, HRDC Trainer and KSI Visiting Fellow