JOHOR BARU: Investors can look forward to a significant reduction in corporate income tax rate when they invest in the Johor-Singapore Special Economic Zone (JS-SEZ), says a state executive councillor.
Johor investment, trade, consumer affairs and human resources committee chairman Lee Ting Han said among the main sectors that will be promoted under the initiative are aerospace, pharmaceuticals, medical devices, artificial intelligence and quantum computing, as well as speciality chemicals.
“Investors that fund more than RM1bil in the JS-SEZ will be offered a corporate income tax rate of 5% for a period of 15 years while investors that finance RM500mil to RM1bil will be offered 5% for a period of 10 years.
“The rate is a significant reduction from the country’s current corporate income tax rate of 24%,” he told reporters after launching the Green Energy Supply Forum at a hotel here yesterday.
Lee said under the JS-SEZ, other projects such as integrated theme parks and MICE (meetings, incentives, conventions and exhibitions) events will also get special incentives, to be announced later in phases.
He said the Johor government is also slated to meet with its Singapore counterpart next week on the implementation of the JS-SEZ following the signing of the agreement on Jan 7.
“The planning stage is over and we are moving into the implementation stage.
“This will be our first meeting with Singapore (after the agreement signing) on implementation efforts including to pull in investors and hold joint action events,” he said.
He added that an internal workshop involving Johor’s departments and agencies will be held tomorrow to discuss the zone’s overall master plan rollout.
On Jan 7, Prime Minister Datuk Seri Anwar Ibrahim and his Singapore counterpart Lawrence Wong witnessed the exchange of the joint agreement, which took place during the 11th Malaysia-Singapore Leaders’ Retreat in Putrajaya.
