KUALA LUMPUR, Jan 8 — The Ministry of Finance (MoF) and the Johor state government have announced an incentive package for the Johor-Singapore Special Economic Zone (JS-SEZ) designed to drive high-value investments into Johor.
In a joint statement today, the MoF and Johor state government said that effective on Jan 1, 2025, investors in the JS-SEZ will be eligible for a suite of incentives, including a special corporate tax rate, flagship development focus and a special tax rate for knowledge workers.
“Companies undertaking new investment in qualifying manufacturing and services activities, such as artificial intelligence (AI) and quantum computing supply chain, medical devices, aerospace manufacturing and global services hub, will benefit from a special tax rate of five per cent for up to 15 years,” the statement said.
Other incentives include additional tailor-made incentives allocated to businesses operating in certain flagship areas in JS-SEZ and a special tax rate of 15 per cent for 10 years for eligible knowledge workers working in the special economic zone.
Johor Menteri Besar Datuk Onn Hafiz Ghazi said the incentive package for the JS-SEZ provides the much-needed stimulus to elevate Johor’s standing on the global investment map.
“The Madani and the Johor state governments have worked collaboratively to provide the JS-SEZ a shot in the arm to drive investments.
“With the multitude of advantages that this state possesses, the JS-SEZ will solidify Johor’s position as a major trade and maritime hub in the region,” he said.
In addition to the tax incentive package, Onn Hafiz said the Johor state government had agreed to introduce lower entertainment duties starting from Jan 1, 2025.
Meanwhile, Finance Minister II Datuk Seri Amir Hamzah Azizan said the JS-SEZ tax incentive package reflects the government’s commitment to engender a mutually beneficial relationship that will catapult Malaysia into a premier investment destination in the region.
He added that the government welcomes global businesses to explore Malaysia’s vast opportunities.
“Building on the cooperation between Malaysia and Singapore, the incentive package for JS-SEZ will accelerate drawing in quality investments in key sectors and promote the creation of higher-income jobs, leveraging on the respective strengths and synergies between Johor and Singapore,” he said.
The joint statement said the JS-SEZ tax incentive package complements the New Investment Incentive Framework (NIIF) announced in Budget 2025 by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, which aims to propel investments in high-growth, high-value and sustainable industries to stimulate equitable economic development across Malaysia.
“To facilitate an expedient and more convenient investment application process in JS-SEZ, the government has set up the Invest Malaysia Facilitation Centre Johor (IMFC-J) to coordinate the end-to-end investment-related process, which includes applications and approvals, investment facilitation, and reinvestment.
“Further details on the tax incentives and the flagship zones will be announced in due course,” the statement added. — Bernama
