Announces new incentive package for the Johor-Singapore SEZ

On 7 January 2025, Malaysia announced an incentive package for the Johor–Singapore Special Economic Zone (JS–SEZ), following the signing of the agreement for the JS–SEZ on the same day.

Under this package, a special corporate tax rate of 5 per cent for a period of 15 years will be available for companies investing in qualifying manufacturing and services activities, including those in the artificial intelligence and quantum computing supply chains, medical devices and aerospace manufacturing. This incentive is effective retroactively from 1 January 2025. Additionally, eligible knowledge workers employed in the JS–SEZ will benefit from an income tax rate of 15 per cent for 10 years.

• Type:

  • Promotion and facilitation (Investment incentives, Special economic zones)

• Industry:

  • Not industry specific
  • Manufacturing (Manufacture of computer, electronic and optical products, and electrical equipment, Other manufacturing)
  • Services (Computer programming, consultancy and related activities, Scientific research and development)

• Sources:

  • Ministry of Finance of Malaysia, JS-SEZ Incentive Package To Drive High-Value Investments Into Johor, https://www.mof.gov.my/portal/en/news/press-release/js-sez-incentive-package-to-drive-high-value-investments-into-johor, 08 Jan 2025