Johor-Singapore
Special Economic Zone
(JS-SEZ)

Background

Johor-Singapore Special Economic Zone (JS-SEZ) is a dynamic and high-growth economic corridor designed to position Johor as a premier investment, trade, and innovation hub in Southeast Asia. Strategically integrated with Singapore, JS-SEZ leverages cross-border connectivity, pro-business policies, and world-class infrastructure to attract global investors, foster industrial excellence, and drive regional economic transformation.

Vision

To establish JS-SEZ as a leading regional economic powerhouse by 2030, creating a seamless, innovation-driven, and globally competitive economic zone that enhances trade, investment, and talent mobility.

Trophy Trophy

Mission

To accelerate Johor’s economic growth by enhancing cross-border synergies, attracting strategic investments, and fostering a business-friendly environment. Through world-class infrastructure, industry-focused policies, and sustainable development initiatives, Johor SZE aims to empower industries, create high-value jobs, and drive economic prosperity for the region, fully aligning with Johor 2030’s vision for a resilient and future-ready economy.

Objectives

  • Enhance cross-border mobility and connectivity for people and goods.
  • Strengthen business ecosystems to foster a robust business environment.
  • Enhanced economic complexity with high valueadded industries
  • Increased talent mobility, talent exchange and collaboration

MOU Agreements

  • Progress To Date

  • 12 Jan 2024

    MOU Signing

  • 30 May 2024

    First Joint Working Committee

  • 28 Aug 2024

    Negotation Workshop

  • 3 Nov 2024

    JTDC Launch

  • 6 Jan 2025

    Agreement Signing

  • 8 Jan 2025 & 3 Feb 2025

    JS-SEZ Incentives Announcements

  • 12 Feb 2025

    IMFC-J 1st Day

PreviousNext

Key Success Factors

  • Quality Talent

    High quality talents in Malaysia, Singapore and the region to drive continuous innovation in diverse industries.

  • Robust Capital and Investments

    Attract capital and investments through conducive business ecosystem for both businesses and the workforce, and strong support from the government to improve ease of doing business.

  • Industrialisation

    Remaining relevant in the 4th Industrial Revolution, driven by digitalisation, Internet of Things (“IoT”) and high-speed exchange of data. This will fundamentally increase productivity and change the way work is carried out globally.

  • Infrastructure Support

    Infrastructure will be built as ‘project-by-project’ basis.

Map & Flagship Area

A combination of Iskandar Malaysia (2,300 km2) and Pengerang (1,288 km2) areas – 3,588 km2.

  • A Johor Bahru Waterfront
  • B Iskandar Puteri
  • C Tanjung Pelepas
  • D Tanjung Langsat – Kong Kong
  • E Senai - Skudai
  • F Kulai - Sedenak
  • G Desaru - Penawar

ALL FLAGSHIPS

  1. Special Tax Rate Knowledge Workers
    (15% for 10 years for eligible knowledge workers working in JS-SEZ)
  2. Additional incentives for other existing promoted activities.

6 Local Authorities

  • Johor Bahru City Council (MBJB)
  • Iskandar Puteri City Council (MBIP)
  • Pasir Gudang City Council (MBPG)
  • Kulai Municipal Council (MPKu)
  • Pontian Municipal Council (MPPn)
  • Pengerang Municipal Council (MPP)

International Connectivity

  • Senai International Airport
  • Johor Port
  • Port of Tanjung Pelepas
  • Port of Tanjung Langsat
  • Johor Bahru–Singapore Rapid Transit System (RTS)

Economic Sectors

 
PreviousNext
12

Why invest in JS-SEZ

Competitive cost of doing business due to affordability in areas such as:

  • Real estate
  • Labour costs
  • Favourable tax regime
  • Strong commitment from Malaysia and Singapore to drive JS-SEZ including funding support for key efforts such as promotion and infrastructure.
  • Invest Malaysia Facilitation Centre – Johor (IMFC-J) to act as one-stop centre in facilitating investments, including expediting approvals and streamlining processes.

The JS-SEZ will encompass Iskandar Malaysia and Pengerang, including industrial parks located within the region, especially the designated flagship areas with prioritised sectors.

  • Technology-enhanced movement of people and goods for increased clearance capacity, automated immigration lanes and paperless clearance for goods.
  • Enhanced passes (Malaysia’s existing visas to be enhanced e.g DE Rantau Nomad Pass).
  • Strategic hub with excellent regional and global connectivity, where goods manufactured in JS-SEZ can be exported through either Singapore or Johor.

Pro-business policies and incentives, such as tax breaks, grants, and streamlined regulations:-

  • Special Corporate Tax Rate: Companies undertaking new investment in qualifying manufacturing and services activities, such as AI and Quantum Computing Supply Chain, Medical Devices, Aerospace Manufacturing and Global Services Hub, will benefit from special tax rate of 5% for up to 15 years.
  • Flagship Development Focus: Additional tailor-made incentives are allocated to businesses operating in certain flagship areas in JS-SEZ.
  • Special tax rate for knowledge workers: Special tax rate of 15% for 10 years for eligible knowledge workers working in JS-SEZ.
  • Lower entertainment duties starting from 1 January 2025.

Johor-Singapore Special Economic Zone (JS-SEZ) Tax Incentive Package

Incentive Scheme:

  1. AI and Quantum Computing Supply Chain;
  2. Medical Devices;
  3. Pharmaceutical; or
  4. Aerospace Manufacturing and MRO Services
Type of company Tax Incentive Period
New Company New investment in the manufacturing sector with capital investment (excluding land) above RM1 billion Tax Rate of 5% 15 years
New investment in the manufacturing sector with capital investment (excluding land) between RM500 million to RM1 billion Tax Rate of 5% 10 years
Existing Company New investment in the manufacturing sector with capital investment (excluding land) above RM500 million for existing company in Malaysia relocating overseas facilities (for a new business segment not expansion of existing products) into Malaysia. Investment Tax Allowance of 100% on the qualifying capital investment (excluding land) incurred within 5 years, against 100% statutory income 5 years
  1. Regional P&L;
  2. Strategic Business Planning;
  3. Corporate Development; and
  4. Regional or Global Treasury and Fund Management conducting cash pooling activities via onshore intermediaries
Tax Incentives

Special tax rate of 5% for a period up to 15 years

 Eligibility Criteria / Conditions

  1. Annual operating expenditure of at least RM50 million;
  2. Company must Serve / Business Control of at least 10 Network Companies;
  3. Annual sales turnover of at least RM500 million and forex in-flow into the local banking system as proposed;
  4. A minimum of 50% of high-value positions (with a minimum monthly basic salary of RM10,000) shall be filled by full-time Malaysian employees as proposed.
Type of Incentives

Investment Tax Allowance (ITA) of 100% qualifying capital expenditure incurred within 5 years. The allowance can be offset against 70% of the statutory income for each year of assessment.

 Eligibility Criteria / Conditions

  1. Company which does not have an existing entity or related entity undertaking same hotel or tourism project in Malaysia;
  2. Paid-up capital of at least RM2.5 million;
  3. Investment in capital expenditure (excluding land) of at least RM500 million;
  4. Company undertaking integrated tourism project which consists of the following:
    a) Hotel with minimum number of rooms of 80 which consists of standard, superior, deluxe and suite; and
    b) Minimum 1 tourist attractions (i.e. water park, outdoor park consists of rides and/or games, convention centre with capacity minimum of 3,000 participants, or outdoor sport excluding golf course and driving range).
Smart logistic operator who invests in development of smart logistics and carry out any of the eligible logistic activities:

  1. Regional Distribution Hub
  2. Integrated Logistic Services;
  3. Dangerous Goods Storage;
  4. Cold Chain Facilities
Incentives

Investment Tax Allowance (ITA) of 100% qualifying capital expenditure incurred within 5 years. The allowance can be offset against 100% of the statutory income for each year of assessment.

 Eligibility Criteria / Conditions

  1. Investment in capital expenditure (excluding land) of at least RM500 million;
  2. The built-up area of the smart warehouse complex must be at least 50,000 m2 and equipped with at least three (3) enabling elements technologies under the IR4.0;
  3. Use the application of modern construction techniques i.e. achieving a score for the Industrial Building System (IBS) that has been set by the Construction Industry Development Board (CIDB);
  4. Total full-time workforce must consist of at least 80% Malaysian citizens;
  5. A minimum of 30% of total high-value positions (with a minimum basic salary of RM10,000) shall be filled by full-time Malaysian employees.
  1. Base chemical – methanol, ethylene, propylene, benzene, aromatics;
  2. Organics intermediates – C1 to C6;
  3. Specialty chemical;
  4. Fertilisers;
  5. Polymers/plastics; or
  6. Oleochemical/ biochemical
Type of Incentives
Special Tax Rate for a company with capital investment (excluding land) of RM500 million and above in the manufacturing sector;

  1. Tier 1: 5% Special Tax Rate for up to 10 years (5 years + 5 years)
  2. Tier 2: 10% Special Tax Rate for up to 10 years (5 years + 5 years)
    OR
    Income tax exemption equivalent to Investment Tax Allowance (ITA) for a company with capital investment (excluding land) of RM500 million and above in the manufacturing sector;
  1. Tier 1: Income tax exemption equivalent to Investment Tax Allowance (ITA) of 100% on the qualifying capital investment (excluding land) for up to 10 years (5 years + 5 years). The allowance can be offset against up to 100% of statutory income for each assessment year.
  2. Tier 2: Income tax exemption equivalent to Investment Tax Allowance (ITA) of 60% on the qualifying capital investment (excluding land) for up to 10 years (5 years + 5 years). The allowance can be offset against up to 100% of statutory income for each assessment year.
 Eligibility Criteria / Conditions

  1. A new company or an existing company undertaking diversification activities in relation to the eligible activities/products under this cluster;
  2. The company is required to have a minimum paid-up capital of RM2.5 million at the point of submission of application to MIDA.
(a) 40% stamp duty exemption on the instrument of transfer/financing agreement for the purchase of a commercial property in Flagship A and B that remains unsold as at 31st December 2024. The stamp duty exemption to be provided under Section 80(1) under the Stamp Act 1949.

(b) A deduction equivalent to amount not exceeding RM1 million for each year assessment in respect of cash contribution or contribution in-kind by qualifying person who sponsors a hallmark event. The hallmark event referred to is an event of regional or international significance which is carried on in Flagship G and supported/verified by MOTAC. For contribution made between 1 January 2025 to 31 December 2034.

(c) ACA in respect of renovation costs incurred on a building or part of a commercial building located in Flagship A-G for the purpose of qualifying company’s business. Qualifying companies are companies that have been approved any tax incentives under PIA 1986 or ITA 1967 between 1 Jan 2025-31 December 2034 and operating in Flagship A G. This incentive to be utilised only once throughout their business operation in JSSEZ.

To include expenses on:

  • General electrical installation
  • Lighting
  • Gas system
  • Water system
  • Kitchen fittings
  • Sanitary fittings
  • Door, gate, window, grill and roller shutter
  • Fixed partitions
  • Flooring (including carpets)
  • Wall covering (including paint work)
  • Incentives & Eligibility Criteria
  • False ceiling and cornices
  • Ornamental features or decorations excluding fine art
  • Canopy or awning
  • Recreation room for employee
  • Air-conditioning system
  • Day care centre for employees’ children
  • Surau
  • Reception area
  • Green elements, smart solutions systems

Initial allowance: 20%, Annual Allowance: 40%
Incentives
15% flat tax rate on chargeable employment income for a period of 10 years.		 Eligibility Criteria / Conditions

  1. All Flagships Malaysian/Non-Malaysian citizen;
  2. Not generating employment income in Malaysia 24-months prior
  3. Salary abroad/in Malaysia >RM20,000 per month
  4. Subject to academic qualifications / years of professional work experience
  5. Subject to MyCOL profession and JS-SEZ qualifying sectors
Skip to content