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.

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.

SINGAPORE: The Johor State Government and Malaysia’s Ministry of Finance (MoF) have launched a comprehensive tax incentive package for the newly established Johor-Singapore Special Economic Zone (JS-SEZ). Effective 1 January, the initiative is designed to accelerate economic growth and attract both international and domestic investors to Johor.

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.

The JS-SEZ has a higher chance of success than past projects such as Iskandar Malaysia – launched in 2006 and conceptualised as a southern economic growth corridor – given the involvement of the Singapore Government, which brings to the table better governance, he noted.

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.