The minister said he was impressed by the rail giant’s property development funding model and station design during a visit to Hong Kong in June, in particular the “very detailed thinking into every aspect” for both passengers and the public.

The 4km (2.4 miles) Johor Bahru-Singapore Rapid Transit System will consist of one station on each side of the Strait of Johor. The estimated cost of the project is about 10 billion ringgit (US$2.2 billion).

The development will occupy six acres (2.4 hectares) of land at the Bukit Chagar station in Johor Bahru with about 3 million sq ft of gross floor area. Collaborations with the city’s rail operator cover the development’s mix and scale, long-term planning for surrounding areas, and the formulation of financial models and sales strategies.

MTR Corp non-executive chairman Rex Auyeung Pak-kuen, who was present at the signing ceremony in Kuala Lumpur, said details of the firm’s involvement in the project would be discussed in the next six months.

“We have our own ideas, but the eventual form of the partnership will depend on what’s agreed by Malaysia,” he said.

The MRT Corporation is the developer and owner of the “civil infrastructure” of the rail link’s Malaysia section, according to its website. The system is set to commence operations in January 2027.

Loke also said that while Singapore’s SMRT Corporation would continue to operate the cross-border transit rail in Malaysia, Hong Kong’s potential involvement would focus on property development in its rail projects.

“We are working with the best companies, both SMRT and MTR Hong Kong, on two different segments,” he added.

Other memorandums of understanding revealed on Friday covered collaborations between entities from Malaysia and Hong Kong in education, trade and other areas.

Banking giant HSBC and venture capital fund Gobi Partners agreed to explore collaboration in supporting entrepreneurs, including those using “TaqwaTech” to serve the demands of the Islamic economy.

Lee pointed to Hong Kong’s advantages under the “one country, two systems” governing principle and access to the mainland Chinese market at the lunch.

“The world’s economic centre of gravity is moving eastward and it is crucial for us to do all we can to capitalise on this trend of robust growth in our region,” he said.

The strong cultural ties between the two places were also touted in his speech: “The friendship [between Malaysia and Hong Kong] is also reflected by how Hong Kong cinema-goers celebrated and shared joy when Michelle Yeoh won multiple best actress awards globally.”

According to Hong Kong government data, trade between the two jurisdictions was worth HK$220 billion (US$28.2 billion) in 2022. They are each other’s ninth-largest trading partners.

Malaysia is Lee’s final stop on his three-nation tour that began on Sunday. Seven memorandums of understanding were also signed with Singapore and 15 with Indonesia earlier this week.

Lee met Malaysian Prime Minister Anwar Ibrahim on Thursday to discuss cooperation in trade, technology and tourism.

Malaysia announced an extension of the visa-free stay limit for Hong Kong passport holders from 30 to 90 days after the meeting, while Lee was quoted by the Malaysian side as considering opening an economic and trade office in Kuala Lumpur.

Rounding up his weeklong tour, Lee on Friday said the 33 bilateral agreements signed in the three countries were “sufficient proof that Hong Kong is given exceptional attention”. Fostering friendships and expanding networks were also achieved on the trip, he added.

Lee said leaders of the three countries had reaffirmed their support for the city to join the Regional Comprehensive Economic Partnership, the world’s largest free-trade bloc, made up of 15 Asia-Pacific countries, including all 10 from Asean, the Association of Southeast Asian Nations.

Lee will return to Hong Kong on Saturday afternoon.