Together with the MCE and the East Coast Parkway (ECP), it forms a second east-west link to complement the role played by the Pan Island Expressway (PIE).

With the construction beginning from 5 December 1993, the existing Jalan Ahmad Ibrahim from Tuas West Drive to Jurong Town Hall Road was widened and merged into Ayer Rajah Expressway which was opened on 18 November 1997.

This construction, which followed the alignment of Jalan Ahmad Ibrahim, involved the expansion of the existing road to match with the width of the rest of the AYE, construction of "filter" roads on both sides of the expressway (which eventually took the name of Jalan Ahmad Ibrahim), and the building of five flyovers and two underpasses.

[4] During the 2014 Singapore National Day rally, Prime Minister Lee Hsien Loong spoke of the possibility of realigning the stretch of the AYE near Jurong Lake Gardens south to allow for more space to build housing in the area.

[6][7] National Development Minister Desmond Lee gave an update on this proposed realignment on 30 June 2024, sharing that "agencies are currently studying various options, including how we can make it easier for residents to move between Teban Gardens and Jurong Lake District", with more information to be made available when ready.