5 FAQs on the JS-SEZ: Capital, Connectivity and the Gateway to ASEAN Innovation

The JS-SEZ offers a strategic platform for companies to strengthen supply chains and mitigate the impact of global trade disruptions. By integrating operations across Johor and Singapore, businesses can “twin” their production and logistics functions, balancing costs, labour, and infrastructure to build more resilient supply chains.

Streamlined customs procedures and harmonised regulations will reduce bottlenecks, while robust export documentation processes ensure compliance with evolving trade rules. These features make the SEZ particularly attractive for industries like advanced manufacturing, logistics, and biotech, which are sensitive to global trade shifts.

The JS-SEZ’s connectivity upgrades are set to redefine cross-border operations. The Rapid Transit System (RTS) Link, expected to open by 2026, will significantly reduce travel time between Johor Bahru and Singapore, making daily commutes for workers and executives more practical. Digitised cargo clearance and single-permit systems will streamline the movement of goods, improving speed to market and reducing operational costs.

For businesses, this level of integration unlocks new efficiencies. Companies can access Johor’s growing workforce while retaining strategic oversight from Singapore, creating a larger and more flexible talent pool. Improved transport links also enhance the SEZ’s appeal to global investors seeking seamless access to ASEAN markets.

The JS-SEZ offers one of the most competitive incentive packages in Southeast Asia, designed to attract high-value investments and foster long-term growth. Companies in strategic sectors such as logistics, advanced manufacturing, and global services can benefit from corporate tax rates as low as 5% for up to 15 years. Logistics operators investing in smart infrastructure, such as cold chain or dangerous goods storage, can also qualify for full investment tax allowances.

Beyond tax incentives, the SEZ provides a robust ecosystem for growth. One-stop facilitation centres streamline approvals, while infrastructure investments—from renewable energy exchanges to data parks—create a future-ready environment for businesses.

The JS-SEZ provides small and medium enterprises (SMEs) with a cost-effective platform to scale operations. By relocating backend functions to Johor, where labour and rental costs are lower, SMEs can maintain their strategic presence in Singapore while optimising production. Shared infrastructure within tech parks and logistics hubs further reduces costs and provides access to advanced facilities.

Improved connectivity also enables SMEs to tap into Johor’s workforce without uprooting entirely, ensuring flexibility in operations. The SEZ’s “plug-and-play” ecosystem integrates SMEs into global supply chains, opening doors to new markets and partnerships.

The JS-SEZ can also play a pivotal role in connecting SMEs with multinationals anchoring in the zone. By facilitating collaborations, the SEZ enables SMEs to contribute specialised services—such as manufacturing components, precision engineering, or logistics support—within the value chains of larger corporations. These partnerships allow SMEs to scale incrementally, access regional markets, and benefit from the expertise and networks of global players. The SEZ’s focus on fostering such synergies is particularly advantageous for Singapore SMEs, as the shared cultural and business practices between the two nations make integration into these collaborations more seamless.

The JS-SEZ is uniquely positioned to lead in AI, advanced manufacturing, and clean energy by combining Singapore’s innovation ecosystem with Johor’s scalability. AI startups can benefit from Johor’s hyperscale data centres and Singapore’s expertise in research, while advanced manufacturing firms can integrate precision engineering with cost-effective production.

Clean energy initiatives, such as cross-border renewable energy trading and carbon-neutral infrastructure, position the SEZ as a hub for global clean tech players. These developments align with broader sustainability goals and enhance the SEZ’s appeal to environmentally conscious investors.