Why all eyes are on
the Johor-Singapore
Special Economic Zone
This SEZ is set to transform cross-border business for Malaysia
and Singapore, with UOB playing a key role by helping investors
tap into new opportunities.
This SEZ is set to transform cross-border business for Malaysia and Singapore, with UOB playing a key role by helping investors tap into new opportunities.
By Jamie Barys, Wing Chan and Morning Studio editors
January 21, 2026
By Jamie Barys, Wing Chan
and Morning Studio editors
January 21, 2026
Special economic zones (SEZs) have long powered global growth by offering pro-business policies,
streamlined regulations and infrastructure tailored to investors’ needs. Now, Southeast Asia is
welcoming a new high-profile entrant: the Johor-Singapore SEZ (JS-SEZ), a cross-border initiative
announced in 2024 to deepen Malaysia-Singapore integration.
For the JS-SEZ to succeed, strong execution is key, with financial institutions like UOB playing a
central role. The bank is set to support investors entering the zone by providing fast-track approvals,
cross-border account services and local expertise.
One of the busiest land crossings in the world, the Johor-Singapore Causeway stretches 1km (0.6 miles) across the Straits of Johor to connect Malaysia and Singapore.
The JS-SEZ is not just another development initiative. It is a catalyst for building dynamic partnerships, reinforcing regional supply chains and unlocking significant economic value. We believe that the JS-SEZ could be a generational opportunity, and when fully realised, it has the potential to be a game-changer – not just for the economies of Malaysia and Singapore, but for the entire region
Ng Wei Wei,
CEO of UOB Malaysia
What is an SEZ?
An SEZ is a designated area within a country that operates under adjusted economic policies, offering
tax breaks, streamlined regulations and business-friendly infrastructure to attract investment and
supercharge growth. These zones are magnets for trade and innovation, helping countries boost
their competitiveness on the global stage. The JS-SEZ, which opened last year, is the latest example in
Asia.
With the launch of the JS-SEZ, it joins a growing list of heavyweights across the continent. Here are
some examples that highlight the diversity and potential that these SEZs carry.
China’s Shenzhen SEZ
• Year founded: 1980
• Area: 1,953 sq km (754 square miles)
• Export volume in 2023: US$537 billion
Dubai’s Jebel Ali Free Zone (Jafza)
• Year founded: 1985
• Area: 57 sq km
• Trade volume in 2024: US$190 billion
China’s Hainan Free Trade Port
• Year founded: 2018
• Area: 35,400 sq km (spanning all of Hainan Island)
• Duty-free sales in 2024: US$4.24 billion
South Korea’s Incheon
Free Economic Zone
• Year founded: 2003
• Area: 209 sq km
• FDI in 2024: US$605.8 million
Vietnam’s Ho Chi Minh City Export
Processing Zones and Industrial Parks
Vietnam’s Ho Chi Minh City
Export Processing Zones
and Industrial Parks
• Year founded (Tan Thuan Export Processing Zone): 1992
• Area (Tan Thuan EPZ): 3 sq km
• FDI in 2023: US$221.1 million
The Philippines’ Subic Bay Freeport Zone
The Philippines’ Subic Bay
Freeport Zone
• Year founded: 1992
• Area: 670 sq km
• Export volume in 2023: US$1.46 billion
Johor-Singapore SEZ
• Year founded: 2025
• Area: 3,571 sq km
UOB’s role in the
Johor-Singapore SEZ
In January 2024, Malaysia and Singapore announced the JS-SEZ, a cross-border initiative to boost trade, investment and connectivity. Linked by one of the world’s busiest land crossings, Malaysia’s Johor state and Singapore have a complementary blend of industrial strength and financial services.
UOB is helping drive the zone’s initial growth as a strategic partner. Originally founded in Singapore 90 years ago, the bank has maintained a presence in Malaysia for over 70 years. Today, it operates 55 branches including wealth centres across Malaysia, with seven in Johor, and is the largest foreign bank in the country in terms of asset size, loans and deposits. With its extensive cross-border network, UOB is well-positioned to support clients seamlessly on both sides of the Johor-Singapore Causeway and help businesses capitalise on the long-term opportunities that the SEZ has to offer.
As one of the earliest movers in the JS-SEZ, UOB has introduced a suite of
integrated solutions designed to reduce friction for cross-border investors.
From streamlined onboarding to on-the-ground advisory support, the bank is
helping businesses move faster and operate more confidently throughout the
zone.
January
2024
Malaysia and Singapore announce plans to explore the establishment of the JS-SEZ and form a bilateral task force to drive SEZ development.
March
2024
UOB Malaysia and UOB China co-host a round table in Shenzhen, home to the world’s most successful SEZ, together with the Chief Minister of Johor. There, investment commitments are secured from at least three Chinese firms totalling about S$550 million (US$420 million).
July
2024
UOB hosts the Chief Minister of Johor at its headquarters in Singapore’s UOB Plaza for a round table on the JS-SEZ held with the bank’s senior leaders as well as regional business leaders.
August
2024
UOB and Invest Johor sign a memorandum of understanding (MOU) to jointly promote and facilitate investments, particularly in the JS-SEZ.
January
2025
UOB forms a partnership with the Singapore Chinese Chamber of Commerce and Industry and the Associated Chinese Chambers of Commerce and Industry of Malaysia to promote cross-border collaboration and boost investment in the JS-SEZ.
February
2025
The UOB-Invest Johor Green Lane officially launches, fast-tracking investments into the JS-SEZ. UOB also establishes dedicated JS-SEZ desks in Johor and Singapore, and launches its Fast Lane Account Opening service for Singapore-based clients.
February
2025
Gold Peak Technology Group, a Hong Kong-based battery manufacturer, becomes the first company to invest via the Green Lane, committing US$150 million to the JS-SEZ.
March
2025
UOB facilitates another investment of US$150 million by Ningbo Deye Technology, to set up a new manufacturing base for solar equipment in the JS-SEZ under the UOB-Invest Johor Green Lane.
April
2025
UOB Malaysia hosts a JS-SEZ C-suite networking dinner during the inaugural Malaysia-Singapore Joint Business and Investment Forum. The event brings together the Chief Minister of Johor, senior Malaysian government officials and executives from multinationals to explore JS-SEZ opportunities.
June
2025
UOB takes part in a landmark financing deal of 15 billion Malaysian ringgit (US$3.56 billion) to support DayOne’s new data centre in the JS-SEZ. It is one of Southeast Asia’s largest such deals for a data centre.
July
2025
UOB signs a tripartite MOU with the Federation of Malaysian Manufacturing and the Singapore Manufacturing Federation to promote cross-border investment and help businesses expand in the JS-SEZ.
August
2025
UOB partners with the US-Asean Business Council to host its first JS-SEZ cross-border programme, bringing US multinationals to Johor for site visits and high-level meetings with Malaysian and Singaporean officials and business leaders.
September
2025
UOB co-hosts a JS-SEZ investment event with the Malaysian Investment Development Authority (MIDA), Invest Malaysia Facilitation Centre – Johor, Business France and MEDEF International, which welcomes more than 35 French C-suite executives.
October
2025
At the second JS-SEZ Joint Investment Forum, hosted by Malaysia’s Ministry of Investment, Trade and Industry and Singapore’s Ministry of Trade and Industry, UOB gathers leading electronics and electrical firms.
October
2025
UOB partners with MIDA, the Malaysian-German Chamber of Commerce and Industry, and the German Business Council (Johor) to host Germany’s G25 Sparkassen delegation in Kuala Lumpur, highlighting investment opportunities in Johor, including the JS-SEZ.
How the JS-SEZ will benefit
UOB clients
How the JS-SEZ will
benefit UOB clients
Benefits
to Malaysia
FDI attraction
Job creation
Infrastructure upgrades
Benefits to
Singapore
Boost to services exports
Enhanced supply chain resilience
Expansion of economic footprint
without geographic constraints
JS-SEZ
projections
Number of projects estimated in first decade: 100
Projected job creation: 20,000 skilled jobs
Number of sectors projected for investment: 11 – manufacturing, logistics, food security, tourism, energy, the digital economy, green economy, financial services, business services, education and health
Projected GDP contribution: US$28 billion per year to Malaysia’s GDP over the next decade
Benefits to
UOB clients
Fast-tracked approvals and regulatory support:
businesses can benefit from expedited licensing, permits and cross-border documentation through initiatives like the UOB-Invest Johor Green LaneSeamless cross-border trade access:
UOB offers financing solutions that enable businesses to move capital efficiently between Singapore and MalaysiaEasier access to financing:
UOB offers tailored financial solutions – including working capital, green financing and trade finance – specifically for businesses entering the JS-SEZ
Tax incentives for
businesses in the JS-SEZ
The JS-SEZ spans multiple locations across southern Johor, with each designated as a “flagship” zone featuring industry-specific investment focuses and targeted tax incentives.
Click on the letters to learn more about each flagship zone
Incentives
Special tax rate of 5 per cent for a period of up to 15 years
One-time accelerated capital allowance for building renovations
Flat income tax rate of 15 per cent for knowledge workers for 10 years
Additional incentives for
integrated tourism projects
Additional incentives for integrated tourism projects
Tax allowance of 100 per cent on capital investments within five years
Tax deduction of up to 1 million ringgit for event sponsorship
Incentives
Special tax rate of 5 per cent for a period of up to 15 years
One-time accelerated capital allowance for building renovations
Flat income tax rate of 15 per cent for knowledge workers for 10 years
Additional incentives for
integrated tourism projects
Additional incentives for integrated tourism projects
Tax allowance of 100 per cent on capital investments within five years
Tax deduction of up to 1 million ringgit for event sponsorship
Incentives
One-time accelerated capital allowance for building renovations
Flat income tax rate of 15 per cent for knowledge workers for 10 years
Additional incentives for
smart logistics projects
Additional incentives for smart logistics projects
Tax allowance of 100 per cent on capital spending within five years, which can be fully offset against annual taxable income
Incentives
One-time accelerated capital allowance for building renovations
Flat income tax rate of 15 per cent for knowledge workers for 10 years
Additional incentives for
downstream specialty chemicals projects
Special tax rate or full tax exemption for companies investing 500 million ringgit or more
Incentives
One-time accelerated capital allowance for building renovations
Flat income tax rate of 15 per cent for knowledge workers for 10 years
Additional incentives for
new manufacturing business projects
New companies: 5 per cent tax rate for 10 or 15 years, depending on the size of their capital investments
Existing companies making new investments: 100 per cent tax allowance on qualifying capital spending over five years, which can be fully offset against taxable income
Incentives
One-time accelerated capital allowance for building renovations
Flat income tax rate of 15 per cent for knowledge workers for 10 years
Additional incentives for
new manufacturing business projects
New companies: 5 per cent tax rate for 10 or 15 years, depending on the size of their capital investments
Existing companies making new investments: 100 per cent tax allowance on qualifying capital spending over five years, which can be fully offset against taxable income
Incentives
One-time accelerated capital allowance for building renovations
Flat income tax rate of 15 per cent for knowledge workers for 10 years
Additional incentives for
integrated tourism projects
Additional incentives for integrated tourism projects
Tax allowance of 100 per cent on capital investments within five years
Tax deduction of up to 1 million ringgit for event sponsorship
Incentives
One-time accelerated capital allowance for building renovations
Flat income tax rate of 15 per cent for knowledge workers for 10 years
Incentives
One-time accelerated capital allowance for building renovations
Flat income tax rate of 15 per cent for knowledge workers for 10 years
Through our nine flagship zones, investors will have access to a range of benefits, including tax exemptions, duty-free status and multiple-entry visas. Our Invest Malaysia Facilitation Centre brings together state and federal agencies to make approvals easier and more seamless
Onn Hafiz Ghazi,
Chief Minister of Johor
Ready to explore opportunities in the JS-SEZ? Click here to find out how UOB can get you started on this investment journey.
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