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A bold new chapter in ASEAN’s economic future is unfolding. The Johor-Singapore Special Economic Zone (JS-SEZ) is not just another policy initiative, it is a transformative framework for cross-border integration, poised to reshape trade, investment, and innovation between two of Southeast Asia’s most dynamic economies.
Johor and Singapore, historically interlinked by geography and commerce, are now converging through policy. The JS-SEZ servces as a visionary model, where Malaysia’s vast industrial potential meets Singapore’s global capital and technological prowess to create a borderless ecosystem that powers the next wave of high-value growth in the region.
The JS-SEZ officially took flight with the signing of the formal agreement on 8 January 2025, following the earlier Memorandum of Understanding (MoU) signed in January 2024. This agreement laid the foundation for real, executable reforms, driven by aligned incentives, institutional coordination, and clear implementation goals.
To operationalise this vision, Malaysia has introduced a comprehensive incentive package across nine flagship development zones:
i. Flagship A (Johor Bahru Waterfront)
ii. Flagship B (Iskandar Puteri)
iii.Flagship C (Tanjung Pelepas)
iv.Flagship D (Tanjung Langsat – Kong Kong)
v. Flagship E (Senai – Skudai)
vi. Flagship F (Kulai – Sedenak)
vii.Flagship G (Desaru – Penawar)
Additional strategic nodes include:
viii. Flagship G (Desaru – Penawar) –Covered under the 2024 National Budget, this zone offers incentives for industrial park developers and petrochemical manufacturers.
ix. Flagship I: Forest City Special Financial Zone (FCSFZ) – Launched with a dedicated incentive package for companies and individuals operating within the FCSFZ. This strategic zone is designed to attract financial institutions, multinational corporations, and high-net-worth individuals, aiming to become a premier hub for wealth management, fintech, and global business services.
Together, these zones span industries from advanced manufacturing and specialty chemicals to digital services, logistics, medical devices, AI, and sustainable tourism, establishing the JS-SEZ as a multisectoral magnet for global capital.
The JS-SEZ is divided into different flagships, economic sectors and activities, which include Global Services Hub, Smart Logistics Complex, Manufacturing – Downstream Specialty Chemicals, Manufacturing Business Incentive Scheme and Integrated Tourism Projects.
Flagship A&B
Global Services Hub
i. Regional Profit & Loss (P&L); and
ii. Strategic Business Planning; and
iii. Corporate Development; and
iv. Regional or Global Treasury and Fund Management conducting cash pooling activities via onshore intermediaries; and
v. A minimum of two (2) other qualifying services of either strategic services, business services or shared services.
Flagship C
Smart Logistics Complex
i. Smart logistic operator who invests in development of smart logistics and carry out any of the eligible logistic activities;
ii. Qualifying logistics services/activities:
a. Regional Distribution Hub; (and/or)
b. Integrated Logistics Services; (and/or)
c. Dangerous Goods Storage; (and/or)
d. Cold Chain Facilities
Flagship D
Manufacturing – Downstream Specialty Chemicals:
i. Base chemical – methanol, ethylene, propylene, benzene, aromatics;
ii. Organics intermediates – C1 to C6;
iii. Specialty chemical;
iv. Fertilisers;
v. Polymers/plastics; or
vi. Oleochemical/ biochemical
Flagship E & F
Manufacturing Business Incentive Scheme:
i. AI; and/or Quantum Technology Supply Chain
ii. Medical Devices; Pharmaceutical; or
iv. Aerospace Manufacturing and MRO Services
Flagship G
Integrated Tourism Project
For JS-SEZ incentive details, visit:
For FCSFZ incentive details, visit:
https://www.mida.gov.my/wp-content/uploads/2025/04/Guideline_FCSFZ.pdf
Driving the seamless investor experience is the Invest Malaysia Facilitation Centre Johor (IMFC-J), launched in February 2025. Strategically located at Carnelian Tower, Forest City, this one-stop centre delivers what investors need most: speed, certainty, and coordination.
Launched by His Royal Highness Tunku Ismail Ibni Sultan Ibrahim, the Regent of Johor, the IMFC-J is jointly led by the Iskandar Regional Development Authority (IRDA), Invest Johor, and MIDA, with inter-agency linkages to multiple federal entities. It is purpose-built to resolve bottlenecks, fast-track approvals, and ensure projects hit the ground running, regardless of changes in administration or bureaucracy.
In Q1 2025, Johor registered a record-breaking RM30.1 billion in approved investments, a significant leap from Q1 2024. Nearly 90% of these inflows are within the JS-SEZ footprint, a resounding endorsement of the zone’s relevance and readiness.
Investments are pouring into advanced manufacturing, logistics, renewable energy, digital finance, and high-value services, with increasing participation from global multinationals and regional giants alike.
The JS-SEZ represents a paradigm shift in how countries can collaborate for mutual economic gain, serving as a template for next-generation economic zones. It offers:
The JS-SEZ positions Johor at the heart of ASEAN’s growth map. With its industrial heritage, robust infrastructure, growing talent pool, and proximity to global markets via Singapore, Johor is ready to ascend, not just as a manufacturing hub, but as a regional capital for innovation, trade, and sustainable growth.
MIDA Johor and MIDA Singapore are proactively working together to facilitate cross-border investments and ensure seamless support for investors exploring opportunities within the JS-SEZ.
The JS-SEZ reflects a powerful commitment by Malaysia and Singapore to build a high-performing, cross-border economic ecosystem, one that transcends policy silos and accelerates tangible results. With diverse opportunities across its flagship zones, including the thriving Forest City Special Financial Zone (FCSFZ), Johor is truly where your future begins.