The Ministry of Finance (MoF) and the Johor State Government have announced a new tax incentive package for the Johor-Singapore Special Economic Zone (JS-SEZ), effective Jan 1, 2025, aimed at driving high-value investments into Johor. The initiative is designed to enhance Malaysia's competitive edge and foster economic growth.

The tax package includes:

• Special Corporate Tax Rate: Companies investing in qualifying sectors such as AI, Quantum Computing, Medical Devices, Aerospace Manufacturing, and Global Services Hub will benefit from a 5% tax rate for up to 15 years.

• Tailor-made Incentives: Additional incentives for businesses in flagship areas within JS-SEZ.

• Special Tax Rate for Knowledge Workers: Eligible knowledge workers in JS-SEZ will enjoy a 15% tax rate for 10 years.

Johor's Menteri Besar, Datuk Onn Hafiz Ghazi, highlighted that the package will elevate Johor's position as a global investment hub, solidifying its standing as a key maritime and trade centre.

Finance Minister II, YB Senator Datuk Seri Amir Hamzah Azizan, emphasised that the JS-SEZ tax package underscores the Government's commitment to attracting quality investments and creating high-income jobs, building on Malaysia-Singapore cooperation.

The initiative complements the New Investment Incentive Framework (NIIF), introduced in Budget 2025, which aims to attract investments in high-growth and sustainable industries.

To streamline the investment process, the Government has set up the Invest Malaysia Facilitation Centre Johor (IMFC-J) to manage applications, approvals, and investment facilitation.

Further details on the incentives and flagship zones will be announced in due course.