Publication
TaXavvy Issue 4/2025
The Malaysian Investment Development Authority has released a snapshot of the available tax incentive package for the flagship areas in the JS-SEZ.
On 7 January 2025, Malaysia and Singapore formally entered into an agreement to establish the Johor-Singapore Special Economic Zone, or JS-SEZ. The historic event took place nearly a year after the signing of a Memorandum of Understanding between the two countries to set up a special economic zone aimed at capitalising on the existing synergies between Johor and Singapore to unlock greater economic potential.
Key features and objectives of JS-SEZ
Attracting high-value investments
Key sectors including manufacturing, logistics, tourism, clean energy and the digital economy will see competitive tax incentives and streamlined regulations.
Facilitating movement of goods and people
A key focus of the JS-SEZ is to improve the flow of goods and people between Johor and Singapore. This includes enhancing customs processes, strengthening transport links and, potentially, implementing passport-free clearance systems at the border crossings.
Creating jobs
The initial target is to create 20,000 highly skilled jobs within the next 10 years through the implementation of 100 high-impact projects in JS-SEZ
Economic integration
Leveraging the strengths of both regions, JS-SEZ seeks to combine Malaysia's land and labour resources with Singapore's financial and investment capabilities to unlock economic benefits.
Flagship zones
The JS-SEZ will consist of nine designated flagship zones, each with its own focus and specialisation. These zones include existing developments like Iskandar Malaysia and the Pengerang Integrated Petroleum Complex, as well as new areas for development.
JS-SEZ tax incentive package
Following the media release jointly issued by the Ministry of Finance and the Johor State Government on 8 January 2025, the Malaysian Investment Development Authority (MIDA) has released a snapshot of the available tax incentive package for the nine flagship areas in the JS-SEZ.
The incentives enhance Malaysia's appeal as a prime destination for investment and talent, contributing to Malaysia's growth in providing robust business infrastructure, global business services, artificial intelligence (Al), quantum computing, supply chain, tourism projects, and so on.
Applications for the incentives are to be submitted to MIDA from 1 January 2025 to 31 December 2034. Detailed application guidelines will be made available by MIDA in due course.
Related reading: TaXavvy Issue 4/2025
In this issue of TaXavvy, we unpack the available tax incentive package for the flagship areas in the JS-SEZ and what’s in it for businesses and industries.
How we can help
To help you capitalise on these opportunities, we offer a comprehensive suite of services tailored to navigate the evolving landscape of the JS-SEZ. From helping you understand the intricacies of investment incentives and regulatory compliance to developing robust market entry strategies and leveraging cutting-edge technology, we are prepared to serve as a strategic partner, guiding businesses towards sustainable growth and success in this dynamic environment.
- Assess and invest
- Protect and comply
- Optimise and thrive
Assess and invest
Market entry strategy
Providing insights and strategies for entering the JS-SEZ, leveraging its strategic location, connectivity and cost advantages
Investment advisory
Assisting investors in understanding the various incentives and tax benefits available within the JS-SEZ, such as the special corporate tax rate for high-value activities and the special income tax rate for knowledge workers
Infrastructure and project financing
Supporting you across all stages of the infrastructure project lifecycle, from assessing project feasibility and offering fundraising advice, to developing growth strategies, and financial modelling and analysis.
Contact us
Taariq Murad
Tax Partner; Public Sector Leader; and Inclusion & Diversity Leader, PwC Malaysia
Tel: +60 (3) 2173 1580
