1023 views

How businesses can maximise the newly signed Johor-Singapore SEZ deal

Firms should leverage tax breaks, talent policies, and trade facilitation to unlock the agreement's full potential.

A year after the initial memorandum of understanding, the Johor-Singapore Special Economic Zone (JS-SEZ) agreement is now signed, presenting significant opportunities for businesses looking to expand cross-border operations.

"The intention behind this agreement is really to attract more foreign direct investment into Singapore and Malaysia," said Kirsty McMillan, Partner for Tax at Forvis Mazars in Singapore. "Businesses should focus on the available incentives to optimise their operations and stay competitive," she added.

Alvin Lee, Country CEO of Maybank Singapore, emphasised the economic benefits of the agreement. "Having access to Johor with more abundant land, cheaper labor, and even cheaper utilities is going to really help Singapore businesses," he said.

McMillan advised businesses to focus on three critical areas: tax, talent, and trade. "There's a 5% incentivized corporate tax rate for qualifying activities," she noted. This offers significant cost savings for companies operating in the zone. Furthermore, businesses can take advantage of a reduced personal tax rate to attract and retain skilled staff.

On talent, the JS-SEZ eases foreign worker policies, allowing for smoother labor mobility between Singapore and Malaysia.

"The introduction of a single transshipment permit and digital clearance process will help goods move faster and at a lower cost," McMillan added. Companies should streamline their logistics operations to benefit from these improvements.

Lee encouraged businesses to engage with government support facilities, such as the JS-SEZ Knowledge Center and facilitation center. "A lot of thought has gone into designing this agreement, and firms should take full advantage of the assistance available," he said.

Both experts agree that businesses must actively seek out opportunities within the JS-SEZ framework to remain competitive. "Staying informed and aligning business strategies with the available incentives will be crucial to success," McMillan emphasised.

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

PAKT launches climate-controlled wardrobe service in Singapore
It provides premium storage, digital inventory, and white-glove care to protect wardrobes from the city's humid climate.
Markets
HDB launches 10,622 flats in February
5,032 are Build-To-Order flats whilst 5,590 are Sale of Balance Flats.