Malaysia Unveils Tax Incentives for Firms, Workers in Johor-Singapore SEZ

Move aimed at drawing investments to area and boosting Johor as key economic hub

- Zunaira Saieed

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, Malaysia's Ministry of Finance and the 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 those involving the artificial intelligence and quantum computing supply chain, medical devices and aerospace manufacturing.

In addition, eligible knowledge workers employed in the JS-SEZ will be offered an income tax rate of 15 per cent for 10 years.

These tax incentives came into effect on Jan 1. The Johor state government has also reduced entertainment duties as of Jan 1.

The JS-SEZ occupies 3,571 sq km of land across southern Johor, from the east to west coasts.