The Johor-Singapore Special Economic Zone (JS-SEZ)

Discover why Johor is the perfect choice for investors and individuals looking to establish a base in Southeast Asia. Learn about the requirements to participate in the Special Financial Zone (SFZ) and Special Economic Zone (SEZ) and the advantages of Johor’s close proximity to Singapore. These zones offer unmatched investment opportunities, tax incentives, and seamless access to one of Asia’s most dynamic markets, making Johor an attractive destination for both business and living.

About Johor-Singapore Special Economic Zone (JS-SEZ)

Launched in July 2023 and finalized with a historic agreement on January 7, 2025, the Johor-Singapore Special Economic Zone (JS-SEZ) is a collaborative initiative between Malaysia and Singapore. This partnership aims to strengthen economic ties by attracting investments, boosting industrial growth, and fostering cross-border collaboration. Leveraging Johor's close proximity to Singapore, the SEZ provides businesses with a strategic base offering tax incentives, streamlined trade processes, and access to world-class infrastructure.

The JS-SEZ targets high-growth industries like manufacturing, logistics, digital technology, and advanced services while emphasizing sustainability and innovation. Drawing inspiration from global benchmarks such as California's innovation hubs and Stuttgart's engineering excellence, the SEZ focuses on enhancing industrial capacity, infrastructure, and technological advancements.

Benefits of the Johor-Singapore Special Economic Zone (JS-SEZ)

Enhanced Cross-Border Collaboration

The JS-SEZ strengthens economic ties between Johor and Singapore by creating a seamless environment for investment, trade, and business operations. Businesses in the SEZ benefit from streamlined processes for cross-border transactions and collaborations.

Tax Incentives

Companies operating within the JS-SEZ enjoy favorable tax policies, such as reduced corporate tax rates and exemptions on specific trade-related taxes. These incentives make the SEZ an attractive destination for global investors.

Access to Two Economies

Located close to Singapore, the SEZ provides businesses with access to Singapore's advanced financial and logistical infrastructure while leveraging Johor’s affordable costs and ample space for industrial and commercial operations.

World-class Infrastructure

The JS-SEZ features top-tier infrastructure, including well-connected highways, ports like the Port of Tanjung Pelepas, and its proximity to Changi Airport. This infrastructure supports efficient logistics and supply chain management.

Focus on Target Industries

The SEZ prioritizes sectors such as manufacturing, logistics, technology, and services. Businesses in these industries benefit from tailored incentives, policies, and resources designed to foster growth and innovation.

Simplified Trade Processes

Businesses in the SEZ enjoy simplified customs procedures and faster trade clearances, reducing logistical delays and operational costs.

Competitive Cost of Doing Business:

Johor’s lower operational costs compared to Singapore, combined with the SEZ’s incentives, provide businesses with a cost-effective base for operations.

The 9 Flagship Zones

The JS-SEZ includes a network of flagship zones, such as Iskandar Malaysia, the Pengerang Integrated Petroleum Complex (PIPC), and vital logistics hubs. These zones are strategically developed with seamless connectivity through bridges, highways, and ports, ensuring easy access to global markets.

In addition to the existing flagship areas, three new zones G, H and I have been proposed to expand the SEZ's scope: Together, these nine flagship zones form a robust ecosystem to support diverse industries and drive regional growth.

JB City Centre (Business services, digital economy, health)

Iskandar Puteri (Manufacturing, business services, digital economy, education, health, tourism)

Tg. Pelepas-Tg Bin (Manufacturing, energy, logistics)

Pasir Gudang (Manufacturing, energy, logistics)

Senai-Skudai (Manufacturing, digital economy, education, logistics, tourism)

Sedenak (Manufacturing, business services, digital economy, education, energy, food security, health, logistics, tourism)

Forest City (Financial services)

PIPC (Manufacturing, energy, logistics)

Desaru (Education, food security, health, tourism)

Requirements

	SFZ / SEZ
Age requirement	21 years old
Minimum stay in Malaysia	Ages 21-49 : 90 days per year between main applicant, spouse & dependants Ages 50+ : No minimum stay required
Validity	10 years renewable
Dependants	Spouse, single children under 34 years, and both parents
Fixed deposit	Ages 21-49 : USD 65,000 Ages 50+ : USD 32,000
Participating fee	RM 1,000
Renewal fee	RM 300
Complusory residential purchase	Minimum property price as set by property development. Home purchased must be done directly from property developer.
Fixed deposit withdrawal	Allowed after 1 year. Maximum 50% for property purchase, medical, education & tourism purposes

Applications for the MM2H program are only accepted through authorized and licensed tourism operators. This approach ensures a seamless process with proper guidance, compliance with all requirements, and accurate documentation. Direct or walk-in submissions are not allowed under the current regulations.

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