How does the JS-SEZ’s 5% corporate tax rate for 15 years drive relocation?

Question

## The JS-SEZ’s 5% corporate tax rate for 15 years helps make relocating manufacturing to Johor commercially attractive for Singapore firms.

Accepted Answer

The JS-SEZ offers incentives that include a special 5% corporate tax rate for 15 years, which is sharply lower than Malaysia’s standard 24% corporate tax rate. In practice, the relocation of production to Johor is linked to firms seeking to capitalise on these tax incentives while continuing to supply Singapore, with fresh products trucked across daily.

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How does the JS-SEZ’s 5% corporate tax rate for 15 years drive relocation?

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