This update is relevant to businesses, investors, and industry players looking to capitalise on the opportunities within the Johor-Singapore Special Economic Zone (“JS-SEZ”). With the recent announcement of the JS-SEZ incentive package on 8 January 2025 by both the Ministry of Finance of Malaysia and the Johor State Government, companies engaged in advanced manufacturing, global services hub, integrated tourism, supply chain and logistics can benefit from tax breaks, investment grants, and other incentives.
The details have been published on the Malaysian Investment Development Authority (“MIDA”) website and were updated as of 3 February 2025.
The JS-SEZ incentive package is designed to attract high-value investments and facilitate seamless cross-border economic activities in 7 flagship areas in JS-SEZ, which are JB Waterfront, Iskandar Puteri, Tanjung Pelepas, Tanjung Langsat-Kong Kong, Senai-Skudai, Kulai-Sedenak and Desaru-Penawar. It includes:
✅ Tax incentives – Corporate tax exemptions and special tax rates up to 15 years for qualifying businesses
✅ Investment grants – Financial support for high-tech, manufacturing, tourism and logistic industries
✅ Stamp duty exemption – Duty exemptions for instrument of transfer or financing agreement for purchase of commercial properties
✅ Renovation expenses – renovation allowance to cover costs incurred on a building or part of a commercial building
✅ Talent & workforce benefits – Employment incentives for skilled professionals and foreign talent mobility programs
Under the recently announced package, the eligible projects include:
✅ Manufacturing – AI & quantum computing supply chain, medical devices, pharmaceuticals, aerospace manufacturing & MRO, specialty chemical
✅ Global Services – Regional P&L management, strategic business planning, corporate development, treasury & cash pooling management
✅ Integrated Tourism – Luxury hotel development, integrated resorts, convention centers, entertainment facilities (theme parks, water parks)
✅ Smart Logistics – Regional distribution centers, integrated logistics services, hazardous goods storage, cold chain facilities
✅ Knowledge & Talent Hubs – High-end corporate office spaces, innovation & R&D centers, smart industrial parks
If you are considering setting up or expanding operations in the JS-SEZ, this incentive package provides a strategic advantage. Applications are open from 1 January 2025 to 31 December 2034.
For further details, please refer to the attached update or contact our law firm for legal and regulatory guidance on eligibility and application procedures.
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This article was written by Sylvia Lock (Senior Associate) from Donovan & Ho’s corporate practice group.
Donovan & Ho is a law firm in Malaysia, and our corporate practice group advises on corporate acquisitions, restructuring exercises, joint venture arrangements, shareholder agreements, employee share options and franchise businesses, Malaysia start-up founders and can assist with venture capital funds in Seed, Series A & B funding rounds. Feel free to contact us if you have any queries.
