Leaders of Malaysia and Singapore have agreed to a high-speed rail link between here and Kuala Lumpur.
Prime Minister Datuk Seri Najib Tun Razak, who is on a working visit here, and his counterpart Lee Hsien Loong described the project as a "game changer."
The link will cut travel time between the two capitals to 90 minutes. In a joint statement on Tuesday, both leaders also noted the possibility of a third road link between both countries.
They also expect operations of the new ferry terminal in Tanjung Puteri to commence this year.
On Monday, Foreign Minister Datuk Seri Anifah Aman said both sides have agreed to go ahead with the Rapid Transit System (RTS) linking Johor Baru with the republic.
He said both countries had a year to draft the plans on the preferred option for the RTS, and under phase one, the alignment and station scheme options would be identified.
It is learnt that among the options being considered is a bridge or an underground tunnel link.