Singapore and Malaysia will also undertake to improve connectivity by opening a Rapid Transit System link from Singapore to Johor Baru by 2018.
A joint technical group is targeting to call the tender for a consultancy study by the fourth quarter of this year.
A joint Singapore-Malaysia statement said: "The terminating stations of the (rapid transit system) link will be in the vicinity of JB Sentral, Johor Baru and in the vicinity of Republic Polytechnic, Singapore.
"It is targeted that the RTS link will be operational by 2018. The RTS link will have a co-located (Customs, Immigration and Quarantine) facility in Singapore and another co-located CIQ facility in Johor Baru so that commuters need to clear immigration only once for each way of travel."