SINGAPORE — Singapore and Malaysia will jointly set up a special economic zone on their border area, hoping to benefit from tighter business links and better connectivity as the weak global economy pressures the two Southeast Asian countries.

Malaysian Prime Minister Anwar Ibrahim on Monday met Singaporean Prime Minister Lee Hsien Loong in Singapore for a “leaders’ retreat” — the first since the COVID-19 pandemic waned. Both men painted broad strokes for exchanges between the two countries.