KUALA LUMPUR — Malaysia on Jan 8 announced tax incentives to draw investments to the Johor-Singapore Special Economic Zone (JS-SEZ), including a 5 per cent tax rate for companies investing in high-value activities.
In a joint statement, the Ministry of Finance and Johor state government said the special 5 per cent tax rate for 15 years is for companies investing in qualifying manufacturing and services activities such as artificial intelligence and quantum computing supply chain, medical devices and aerospace manufacturing
Knowledge workers employed in the JS-SEZ will be offered an income tax rate of 15 per cent tax rate for 10 years.
These tax incentives are effective from Jan 1. The Johor state government has also reduced entertainment duties from Jan 1.
The JS-SEZ occupies 3,571 sq km of land across southern Johor’s east to west coast. This area, about four times the size of Singapore, will comprise nine flagship zones catering to different economic sectors, which are Johor Bahru city centre, Iskandar Puteri, Forest City, Pengerang Integrated Petroleum Complex, Tanjung Pelepas-Tanjung Bin, Pasir Gudang, Senai-Skudai, Sedenak and Desaru.
“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 Finance Minister Datuk Seri Amir Hamzah Azizan in the statement.
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