On 7 January 2025, the Governments of Singapore and Malaysia signed a formal agreement in respect of the Johor-Singapore Special Economic Zone ("JS-SEZ") with the objective to compete for global investments together by (a) improving cross-border goods connectivity between Singapore and Johor; (b) enabling freer movement of people; and (c) strengthening the business ecosystem within the region.
Key Elements of JS-SEZ
- JS-SEZ Area
The JS-SEZ is focused on the promotion and facilitation of investments in the following economic sectors:
- Logistics;
- Manufacturing;
- Financial Services;
- Business Services;
- Digital Economy;
- Tourism;
- Food Security;
- Education;
- Health;
- Energy
- Green Energy.
- Key areas of cooperation
Both countries have agreed to explore new areas of co-operation and initiatives to support the JS-SEZ. These include:
- facilitating the development of renewal energy projects;
- enhancing existing employment passes in Malaysia to encourage vibrancy in the JS-SEZ; and
- enhancing movement of people and goods in phases.
In furtherance of the objectives, the Malaysian Government had established the Invest Malaysia Facilitation Centre Johor to facilitate investments and business in the JS-SEZ.
- Incentives from Malaysia
Effective 1 January 2025, investors in the JS-SEZ are eligible to apply for the following incentives:
With the support of the 2 Governments, the JS-SEZ presents a value proposition and an opportunity for potential investors to capitalise on the relevant incentives, as well as enjoy the land, infrastructure, relatively low-cost, and connectivity found within the JS-SEZ.
As further details and information become available, we look forward to providing updates in due course.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
