The Johor-Singapore Special Economic Zone (JS-SEZ) has recently been established, marking a significant milestone in economic cooperation between Malaysia and Singapore. Here's an update on key aspects of the JS-SEZ that investors should be aware of :
Overview and Objectives
The JS-SEZ, spanning 3,505 sq. km in southern Johor, aims to strengthen economic ties between Malaysia and Singapore. The zone's primary objectives include:
Creating 20,000 skilled job opportunities within the first five years
Supporting the expansion of 50 projects in the initial five years and 100 projects in its first decade
Attracting high-value investments and promoting economic growth in both countries
Key Sectors and Incentives
The JS-SEZ focuses on 11 economic sectors, including manufacturing, logistics, food security, tourism, energy, digital economy, green economy, financial services, business services, education, and health. Additional priority sectors include aerospace, medical devices, electrical and electronics, chemicals, and pharmaceuticals.
Investors can benefit from the following incentives:
Special corporate tax rate of 5% for up to 15 years for companies undertaking new investments in high-growth and high value-added activities
Special tax rate of 15% for up to 10 years for eligible knowledge workers in the JS-SEZ
Additional tailor-made incentives for businesses operating in certain flagship zones
Infrastructure and Connectivity
The JS-SEZ aims to improve cross-border connectivity between Singapore and Johor through:
Passport-free QR code clearance at Singapore's land checkpoints with Malaysia (implemented since March 2024)
Development of the Rapid Transit System Link (RTS), a 4km light-rail link scheduled to commence operations by the end of 2026
Streamlined customs procedures for land intermodal transshipments
Investment Opportunities
For investors, the JS-SEZ presents opportunities in various sectors:
Construction and property development, with demand for industrial buildings, offices, and infrastructure
Renewable energy projects and cross-border energy trading
High-tech industries such as AI, quantum computing, aerospace, and medical devices manufacturing
Economic Impact
The JS-SEZ is projected to contribute significantly to Malaysia's economy :
Expected to add 117.1 billion ringgit (approximately US$28 billion) annually to Malaysia's economy by 2030
Potential to rival the Klang Valley as Malaysia's economic engine within the next decade.
Invest Malaysia Facilitation Centre – Johor (IMFC-J)
Invest Malaysia Facilitation Centre - Johor (IMFC-J) is a recently established one-stop center designed to streamline and expedite investment processes in the Johor-Singapore Special Economic Zone (JS-SEZ). Here are the key aspects of IMFC-J :
IMFC-J serves as the primary investment focal point in Johor, acting as an intermediary between investors and key government bodies and agencies. Its core objectives include:
Facilitating and coordinating end-to-end investment-related processes
Expediting various approval procedures
Offering a streamlined experience for investors interested in setting up businesses in Johor
IMFC-J offer
Consulting and advisory services tailored to Johor's unique challenges and opportunities
Handling of all investment matters in Johor
Coordination with various government agencies and departments
Contact IMFC-J
Interim Office :Level 3, Wisma Sunway Big Box,Persiaran Medini 5, Sunway City Iskandar Puteri,79250, Johor Bahru, Johor, Malaysia.
Tel : +607 233 3000 Fax : +607 233 3001
Email : [email protected]
As an investor, it's important to monitor the progress of the JS-SEZ, particularly regarding infrastructure development, regulatory clarity, and the achievement of investment and job creation targets. The success of this ambitious project will depend on effective implementation and the ability to address these challenges.
Let’s wait for full details on JS-SEZ from IMFC-J most likely after the Chinese New Year. Stay tune for any updates from KTP.
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