Exchange traded funds tracking Malaysia and Singapore rose on Monday following news they have reached a deal to open a transit rail service by 2018 to connect the city-state with a city in southern Malaysia.

The iShares MSCI Malaysia (NYSEArca: EWM) and iShares MSCI Singapore (NYSEArca:EWS) were both fractionally higher Monday.

Focusing on Malaysia, the ETF has traded in a range the past three months with investors weighing a potential drop in global productivity. As a way to reduce its reliance on the global economy, the Malaysian government will be focusing on ways to boost the domestic economy.

The Malaysian government has been helping to stoke domestic economic expansion in the face of diminishing external demand, reports Kaladher Govindan for Business Times. Additionally, with oil prices expected to be supported by growing demand from the emerging markets, Malaysia, a net exporter of oil, also stands to benefit from rising oil demand. Still, oil prices have traded sharply lower in recent weeks on economic worries and the release of reserves.

More recently, the FTSE Bursa Malaysia Kuala Lumpur Composite Index has been dragging its feet following the poor economic data released by the U.S. Additionally, the index extended losses as a result of investor concerns over accelerating global inflation, which may prompt central banks to raise rates.