On completing its task, the work group will submit its recommendations on the next phase of the project to the governments of the two countries.
The work group will be formed under the purview of the Joint Ministerial Committee for Iskandar Malaysia (JMCIM).
In a statement issued on Saturday, the committee said an agreement to form the joint work group was reached at its meeting in Nusajaya, Malaysia on Friday.
It added that the formation of the work group is a follow-up to the joint announcement on the high-speed rail link made by the prime ministers of the two countries in February.
The meeting also agreed to identify an option for the Singapore-Johor Bahru Rapid Transit System link by the end of 2014. That followed a review of the progress made so far by a transportation links work group, said the statement.