Malaysia

Malaysia

Announces new incentive package for the Johor-Singapore SEZ

08 Jan 2025

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.