Malaysia and Singapore announced on Tuesday an agreement on a special economic zone in the southern Malaysian state of Johor, aiming to support investment and free up movement of goods and people between the countries.

It includes a 5% corporate tax rate for up to 15 years for companies in advanced sectors. The Johor State Government and Malaysia’s Ministry of Finance (MoF) have announced a tax incentive package for the newly established Johor-Singapore Special Economic Zone (JS-SEZ),

In an interview with CNA, he shares the rationale behind some decisions regarding the Johor-Singapore Special Economic Zone and how the project aligns with his country’s vision.

Malaysia and Singapore leaders have signed an agreement to create a special economic zone to attract global investment and ease the cross-border flow of goods and people

While Singapore has one of the lowest corporate income tax rates in the region at 17%, companies in Malaysia pay between 15% and 24%. "Malaysia and Singapore agree to special economic zone in Johor" was originally created and published by Investment Monitor, a GlobalData owned brand.

Malaysia unveiled a slew of tax incentives to lure investors to its joint special economic zone with Singapore that seeks to add $26 billion per year to the Malaysian economy by 2030.

The Johor-Singapore Special Economic Zone is nearly twice the size of Shenzhen, whose success it is hoping to emulate.

OCBC supported about 260 new mid-sized enterprises to set up shop in Malaysia. OCBC has welcomed the signing of the Johor-Singapore Special Economic Zone (JS-SEZ) agreement by Malaysia and Singapore,