Malaysia has introduced a groundbreaking suite of tax incentives to accelerate the growth of the Johor-Singapore Special Economic Zone (JS-SEZ).
This transformative initiative aims to deepen economic ties with Singapore, attract high-value investments, and position Johor as a global hub for innovation.
By focusing on cutting-edge sectors such as AI, aerospace, and renewable energy, the JS-SEZ represents Malaysia’s vision for a future-ready economy.
Special tax incentives: Unlocking opportunities for investors
Malaysia’s tax incentives are carefully tailored to draw global investors and bolster the region’s most dynamic industries.
Special corporate tax rate: Companies in advanced industries like artificial intelligence, quantum computing, medical devices, and aerospace manufacturing can access a preferential 5 percent corporate tax rate for up to 15 years.
Knowledge worker tax rate: To attract top-tier talent, eligible knowledge workers in the JS-SEZ benefit from a 15 percent personal income tax rate for 10 years, making Johor an attractive destination for highly skilled professionals.
Entertainment duty reductions:
Beginning January 1, 2025, entertainment duty reductions aim to boost tourism and leisure-related investments, complementing the SEZ’s broader economic goals.
These incentives underline Malaysia’s commitment to fostering a globally competitive and innovation-friendly business environment while ensuring long-term economic sustainability.
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