KUALA LUMPUR: The Federal government, in collaboration with the Johor state government, is set to introduce sandbox initiatives aimed at addressing regulatory and investment challenges in the Johor-Singapore Special Economic Zone (JS-SEZ), said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
The initiatives, which will be announced during the JS-SEZ Joint Business and Investment Forum on Monday, are designed to streamline regulatory frameworks and ensure businesses are not hampered by dual compliance obligations from both Malaysia and Singapore.
“We want to streamline the regulatory framework so business operations run smoothly,” said Tengku Zafrul. “We look at all the bureaucratic hurdles.”
A new working committee, to be co-chaired by Johor Menteri Besar Datuk Onn Hafiz Ghazi and Tengku Zafrul, will oversee the coordination and implementation of these initiatives.
Improving Ease of Doing Business
Tengku Zafrul highlighted ongoing efforts to enhance ease of doing business, such as the harmonisation of customs processes, simplification of tax structures, and faster permit approvals.
He also expressed appreciation to the Ministry of Home Affairs for delegating the approval of foreign worker permits to the Malaysian Investment Development Authority (MIDA), making project initiation more efficient.
“Previously, companies had to make multiple visits to Malaysia before starting a project, which often led to scrutiny from immigration. Now, MIDA can issue a single visa to streamline the process.”
Johor’s Role as a Regional Leader
As Malaysia chairs ASEAN this year, Johor is playing a central role in advancing regulatory harmonisation, piloting digital customs, and exploring dual certification of goods with Singapore. These initiatives align with the broader ASEAN Digital Economy Framework Agreement.
Tengku Zafrul noted that while various ministries have valid concerns — from potential revenue losses to regulatory loopholes — the sandbox model provides a controlled environment to test policies before full implementation.
“We understand the concerns of various ministries, which is why we propose sandbox initiatives — to address them proactively.”
Streamlining Investment Facilitation
He added that the Invest Malaysia Facilitation Centre Johor (IMFC-J) serves as a one-stop hub to assist investors with approvals, licences, and other regulatory needs. Between 2023 and March 2025, IMFC-J approved 537 manufacturing projects, with 84% already in implementation.
To further attract investments, the JS-SEZ will offer a suite of competitive incentives, including:
-
Special tax rates of 5%–10% for 10–15 years;
-
Investment tax allowances of 60% on capital expenditure over 5–10 years;
-
Stamp duty exemptions and accelerated capital allowances for renovation costs.
Support for Family Offices and SMEs
Tengku Zafrul also said there is strong backing from the Ministry of Finance to introduce incentives for family offices in Forest City — an area he described as having significant growth potential. Final details are expected soon.
The JS-SEZ covers key economic areas including the Iskandar Development Region, Forest City, Pengerang Integrated Petroleum Complex, and Desaru, with a combined land area of 357,128 hectares. The zone is anchored by nine priority sectors: advanced manufacturing, green energy, logistics, artificial intelligence, healthcare, quantum technology, aerospace, digital services, and halal industries.
Financing and Forum Highlights
To further support businesses, Maybank and CIMB will introduce special financing packages for SMEs operating within the JS-SEZ.
On the second day of the forum, five multinational corporations will present partnership models for SMEs, showcasing supply chain opportunities and collaborative initiatives.
“We’re offering affordable rental spaces and shared facilities, and showing how global firms can work with our local SMEs,” said Tengku Zafrul.
The JS-SEZ Joint Business and Investment Forum will be held from April 21 to April 22, 2025.–BERNAMA
