Effective Jan 1, investors in JS-SEZ are eligible for the incentives which include:

• Special corporate tax rate: Companies undertaking new investments in qualifying manufacturing and services activities such as AI, quantum computing, medical devices, aerospace manufacturing, and global services hubs will benefit from a 5% corporate tax rate for up to 15 years.
• Flagship development focus: Additional tailor-made incentives for businesses operating in certain flagship areas within JS-SEZ.
• Special tax rate for knowledge workers: 15% for 10 years for eligible knowledge workers employed in JS-SEZ.

Entertainment duties have also been reduced effective Jan 1.

The joint statement said that further details on the tax incentives and the flagship zones would be announced in due course.

Johor menteri besar Onn Hafiz Ghazi expressed confidence that the incentive package would provide the much-needed stimulus to elevate Johor’s standing on the global investment map.

“The federal and state governments have worked collaboratively to provide the JS-SEZ with a shot in the arm to drive investments,” the statement quoted him as saying.

“With the multitude of advantages that this state possesses, the JS-SEZ will solidify Johor’s position as a major trade and maritime hub in the region.”

Finance minister II Amir Hamzah Azizan said the incentive package reflected the government’s commitment to establishing Malaysia as a premier investment destination.

He added that the collaboration between Malaysia and Singapore would help attract quality investments and create higher-income jobs.

According to the joint statement, the government has also set up the Invest Malaysia Facilitation Centre Johor to facilitate investment applications and approval.

Malaysia and Singapore yesterday signed a deal to establish the JS-SEZ, which covers the Iskandar development region, Forest City, Pengerang Integrated Petroleum Complex, and Desaru.