Johor - Singapore
Special Economic Zone (JS-SEZ)

The Johor-Singapore Special Economic Zone (JS-SEZ) is a collaboration between the governments of Malaysia and Singapore to improve business ties and connectivity. The zone will offer special tax arrangements, passport-free clearance, and other incentives to encourage cross-border business. R-House is within the Iskandar Puteri Flagship Zone.

The governments of Malaysia and Singapore exchanged the agreement for the establishment of the Johor-Singapore Special Economic Zone (“JS-SEZ”) on 7 January 2025, about a year after the proposal was first agreed in principle. The exchange of agreement took place in conjunction with the 11th Malaysia-Singapore Leaders’ Retreat, which also involved the exchange of several other bilateral agreements.
 
Brief details of the JS-SEZ unveiled at the event are as follows: 

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• The JS-SEZ is a special economic zone to promote and support investment and free-up movement of goods and people between Malaysia and Singapore. 

• The JS-SEZ which encompasses an area of 3,505 sq. km., is located in the state of Johor, the southernmost state of Peninsular Malaysia which is separated from Singapore by the Straits of Johor but is linked to the latter by rail and road connections via a causeway and a bridge. 

• The JS-SEZ is not intended solely to attract investments from Singapore. Both governments have expressed a commitment to work together to attract new investment projects globally, with the initial aim of establishing 50 high-value investments and creating 20,000 skilled jobs in the JS-SEZ within five years of its inception. It was also reported that the JS-SEZ will include a passport-free immigration system and improved passenger rail lines between Johor and Singapore. 

• Targeted sectors of the JS-SEZ include manufacturing, logistics, digital industry, healthcare and education. Further, aerospace, medical devices, electrical and electronics, chemicals and pharmaceuticals have been identified as new priority sectors. 

• The JS-SEZ will have nine flagship zones, namely Johor Baru City Centre, Iskandar Puteri, Tanjung Pelepas-Tanjung Bin, Pasir Gudang, Senai-Skudai, Sedenak, Forest City, Pengerang Integrated Petroleum Complex (PIPC) and Desaru. 

• Malaysia will set-up and manage an infrastructure fund to support companies seeking to establish a presence in the JS-SEZ whilst Singapore will create a fund to facilitate investments and support for Singaporean companies seeking to expand their operation into the JS-SEZ and the potential twinning operations of multi-national companies in Singapore and the JS-SEZ. Malaysia will also set up a one-stop centre to facilitate investments called the Invest Malaysia Facilitation Centre - Johor (IMFC-J). 

• At the same event, six memoranda of understanding and a letter of intent were announced, with the former relating to carbon capture and storage, cooperation on emissions under Article 6(2) of the Paris Agreement, cooperation in the field of urban development, cooperation in social welfare, persons with disabilities empowerment, family, children and community development, cooperation in the higher education sector and preventing and combating transnational crimes.