The Johor-Singapore Special Economic Zone (JS-SEZ) is set to become a major business hub, offering attractive incentives for companies looking to expand in Malaysia. This initiative especially benefits companies in manufacturing, global services, and tourism.
Why the JS-SEZ Matters for Your Business
The JS-SEZ is a collaborative effort between Malaysia and Singapore, designed to attract global investment by offering competitive tax incentives and streamlined business facilitation. This is a golden opportunity for businesses to expand in sectors such as:
Advanced Manufacturing
AI and quantum computing supply chains, medical devices, pharmaceuticals, aerospace manufacturing, and MRO (maintenance, repair, and overhaul) services.
Global Services Hub
Companies that establish their regional profit and loss centers, strategic business planning units, or fund management services can benefit from tax incentives.
Integrated Tourism Projects
Businesses investing in tourism-related developments, including hotels and attractions, can enjoy special allowances.
Tax Incentives Available
The Malaysian government has rolled out special tax incentives for eligible companies operating in the JS-SEZ from January 1, 2025, to December 31, 2034. Some key incentives include:
Tax rates as low as 5% for up to 15 years for manufacturing and global services hub businesses.
100% Investment Tax Allowance for integrated tourism projects.
Strategic locations within Johor designated for specific industries, making it easier to set up and operate efficiently.
How to Take Advantage of the JS-SEZ
Companies that wish to apply for these incentives must submit their applications to MIDA (Malaysian Investment Development Authority). The process involves specific eligibility requirements, so it’s important to ensure compliance with all criteria before applying.
If you’re considering expanding your business within the JS-SEZ, now is the time to start planning. A properly structured company setup and compliance with regulatory requirements can maximize your tax benefits and operational efficiency.
Need Help Setting Up? Contact Us Today!
As a company secretarial firm, we help businesses navigate regulatory requirements, incorporate companies, and ensure compliance with SSM, LHDN, and other governing bodies. If you’re looking to set up a business in the JS-SEZ or apply for these incentives, we can assist you from start to finish.
Send us a WhatsApp message at 016-3240990 to discuss how we can help your business thrive in the JS-SEZ!
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