JS-SEZ Incentive Package To Drive High-Value Investments Into Johor

Following the historic signing of the Johor-Singapore Special Economic Zone (JS-SEZ), the Johor State Government and the Ministry of Finance (MoF) would like to announce a tax incentive package for JS-SEZ.

In a bid to foster economic growth and enhance the nation’s competitive landscape, the tax incentive package for JS-SEZ is designed to drive high-value investments into Johor, tailored to meet the evolving needs of global and domestic investors.

Effective 1 January 2025, investors in the JS-SEZ are eligible for a suite of incentives, including:

1. 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.
2. Flagship Development Focus: Additional tailor-made incentives are allocated to businesses operating in certain flagship areas in JS-SEZ.
3. Special tax rate for knowledge workers: Special tax rate of 15% for 10 years for eligible knowledge workers working in JS-SEZ.

Menteri Besar of Johor YAB Dato’ 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 added.

In addition to the tax incentive package, YAB Dato’ Onn Hafiz said the Johor State Government had agreed to introduce lower entertainment duties starting from 1 January 2025.

Finance Minister II YB Senator 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 the vast opportunities Malaysia has to offer.

“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,” said YB Senator Datuk Seri Amir Hamzah.

The JS-SEZ tax incentive package complements the New Investment Incentive Framework (NIIF) announced in Budget 2025 by Prime Minister and Finance Minister YAB Dato’ Seri Anwar Ibrahim, which aims to propel investments in high-growth, highvalue and sustainable industries to stimulate equitable economic development across Malaysia.

Designed to ensure transparency and accessibility, in alignment with international best practices, the incentive package reflects the extensive collaboration between the MoF, the Johor State Government, the Ministry of Investment, Trade and Industry (MITI), the Iskandar Regional Development Authority (IRDA), the Malaysian Investment Development Authority (MIDA), TalentCorp, and other key stakeholders.

To facilitate an expedient and more convenient investment application process in JSSEZ, 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.

Ministry of Finance
Johor State Government

8 January 2025