In 2025, the Johor-Singapore Special Economic Zone (JS-SEZ) was formed between the governments of Malaysia and Singapore to strengthen business ties and increase connectivity between the two countries.
Under this program, Malaysia has already introduced the following tax incentives:
- 15% personal income tax rate: For eligible knowledge workers employed in the zone (this will be applicable for ten years)
- Accelerated Capital Allowance (ACA): Covers up to 60% on qualifying renovation expenses
- 5% corporate tax rate: For businesses involved in sectors such as artificial intelligence (AI), quantum computing, medical devices, and aerospace manufacturing (this will be valid for up to 15 years)
- Investment Tax Allowance (ITA): Applicable to 100% qualifying capital expenditure for certain sectors
- 40% stamp duty exemption: On commercial property transfers
- Deduction of up to RM1 million: Relevant to hallmark event sponsorships
In addition, a detailed study on the JS-SEZ action plan is expected to be completed in the first quarter of 2026, with the Johor Bahru-Singapore Rapid Transit System (RTS) Link expected to begin passenger service by end-2026.
Over the past year, a growing number of multinational companies with a presence in Singapore have expanded operations in Johor. This is in line with the Malaysian government’s target of attracting 50 new high-value projects within the first five years, and a total of 100 projects, as well as at least 20,000 high-skilled jobs in the next 10 years.
To capitalize on the opportunities presented by the Johor–Singapore Special Economic Zone (JS-SEZ), businesses must navigate the complexities of cross-border operations with precision and agility. Achieving this requires a comprehensive, integrated business management solution that ensures consistency, accuracy, and real-time control across all entities.
SAP Business One provides a single, unified view of your entire operation, empowering organizations to streamline workflows, enhance visibility, and drive seamless efficiency within the evolving JS-SEZ ecosystem.
Drive efficiency with integrated regional operations and full organizational-wide consolidation
As the Johor–Singapore Special Economic Zone (JS-SEZ) develops, the region is set to become a key logistics and sales hub in Asia. With neighboring Singapore’s established position as a regional headquarters, cross-border trade and collaboration between entities will be greatly streamlined. An integrated ERP system enables your business to stay agile amid dynamic market conditions, enhancing supply chain resilience and operational efficiency.
Full business intelligence with in-built Intelligent Analytics and Predictive Forecasting.
Data consolidation and reporting are often key challenges for growing businesses. With SAP Business One, all operational data is stored within a single ERP system and can be retrieved instantly for analysis. Users can choose from predefined dashboards or configure their own key performance indicators to monitor tasks, track progress, and conduct timely follow-up.
In addition, the Predictive Forecasting feature in SAP Business One helps forecast future trends from analyzing historical data, sales trends, and seasonal patterns, thus significantly easing the process of departmental reporting and decision-making.
Extend business capabilities with versatile add-ons and flexible integrations.
For small to mid-sized enterprises, the core modules in SAP Business One provide everything needed to manage day-to-day operations efficiently. Beyond that, businesses can unlock even greater potential through a wide range of add-ons, including Smart Manufacturing, Warehouse Management, and Vendor Portals.
Outside of the SAP Business One ecosystem, it also integrates seamlessly with third-party solutions, delivering a reliable, future-ready system designed to scale with your business growth.
Ensure compliance and accuracy with multi-country tax and localization support.
With localizations available in over 50 countries and 28 languages, SAP Business One supports your operations wherever your business grows. Its comprehensive localization capabilities, including e-Invoicing and multi-currency support, ensure full compliance with local tax regulations while maintaining accurate, consolidated reporting across all entities.
Why be one solutions is Your Ideal Partner in Malaysia
Expanding your business to navigate a brand-new economic zone requires a partner who combines global ERP expertise with deep local knowledge and regulatory understanding.
With over 15 years of global ERP experience, be one solutions has successfully delivered rollouts across 60 countries and over 600 project sites. As a leading global SAP Partner, we deliver ERP solutions tailored to large multinational corporations and their medium-sized subsidiaries.
Our two-tier ERP strategy connects headquarters and subsidiaries through powerful, scalable systems based on SAP Business One and SAP S/4HANA, ensuring seamless global integration and local compliance.
Our global team understands the nuances of the Malaysian business and regulatory landscape. We offer multilingual, around-the-clock support across time zones, ensuring smooth operations wherever your teams are located.
To find out more about integrating your global business operations and regional localization for specific markets, contact our team for an in-depth consultation.
