JS-SEZ - MAJU JOHOR

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.

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

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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

Business Services

Global Services Hub
B
ISKANDAR PUTERI

Business Services

Global Services Hub
C
TANJUNG PELEPAS

Logistics

Smart Logistics Complex
D
TANJUNG LANGSAT - KONG KONG

Manufacturing

Downstream Specialty Chemicals
E
SENAI - SKUDAI

Manufacturing

Aerospace Manufacturing & MRO Services
G
DESARU - PENAWAR

Tourism

Integrated Tourism Project

ALL FLAGSHIPS

Special Tax Rate Knowledge Workers
(15% for 10 years for eligible knowledge workers working in JS-SEZ)
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

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Why invest in JS-SEZ

1. COMPETITIVE COST ADVANTAGE

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

Real estate
Labour costs
Favourable tax regime

2. STRONG GOVERNMENT SUPPORT

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.

3. DESIGNATED FLAGSHIP AREAS

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

4. STRATEGIC LOCATION & STRONG CONNECTIVITY

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.

5. ATTRACTIVE POLICIES & INCENTIVES

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

A. MANUFACTURING BUSINESS

Incentive Scheme: AI and Quantum Computing Supply Chain; Medical Devices; Pharmaceutical; or 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 Company	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

B. GLOBAL SERVICES HUB

Regional P&L;
Strategic Business Planning;
Corporate Development; and
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

Annual operating expenditure of at least RM50 million;
Company must Serve / Business Control of at least 10 Network Companies;
Annual sales turnover of at least RM500 million and forex in-flow into the local banking system as proposed;
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.

C. INTEGRATED TOURISM PROJECT

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

Company which does not have an existing entity or related entity undertaking same hotel or tourism project in Malaysia;
Paid-up capital of at least RM2.5 million;
Investment in capital expenditure (excluding land) of at least RM500 million;
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).

D. SMART LOGISTICS COMPLEX

Smart logistic operator who invests in development of smart logistics and carry out any of the eligible logistic activities:

Regional Distribution Hub
Integrated Logistic Services;
Dangerous Goods Storage;
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

Investment in capital expenditure (excluding land) of at least RM500 million;
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;
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);
Total full-time workforce must consist of at least 80% Malaysian citizens;
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.

E. MANUFACTURING – DOWNSTREAM SPECIALTY CHEMICALS

Base chemical – methanol, ethylene, propylene, benzene, aromatics;
Organics intermediates – C1 to C6;
Specialty chemical;
Fertilisers;
Polymers/plastics; or
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;

Tier 1: 5% Special Tax Rate for up to 10 years (5 years + 5 years)
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;

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.
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

A new company or an existing company undertaking diversification activities in relation to the eligible activities/products under this cluster;
The company is required to have a minimum paid-up capital of RM2.5 million at the point of submission of application to MIDA.

F. ADDITIONAL INCENTIVES

(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%

G. KNOWLEDGE WORKER INCENTIVE

Incentives
15% flat tax rate on chargeable employment income for a period of 10 years.

Eligibility Criteria / Conditions

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

Johor-Singapore Special Economic Zone (JS-SEZ)

Background

MOU Agreements

12 Jan 2024

30 May 2024

28 Aug 2024

3 Nov 2024

6 Jan 2025

8 Jan 2025 & 3 Feb 2025

12 Feb 2025

Key Success Factors

Map & Flagship Area

6 Local Authorities

International Connectivity

Economic Sectors

Why invest in JS-SEZ

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

Johor-Singapore
Special Economic Zone
(JS-SEZ)