More Singapore businesses are making enquiries about entering the Johor-Singapore Special Economic Zone (SEZ) following the signing of the bilateral deal during the Malaysia-Singapore Leaders’ Retreat.

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.

The Johor-Singapore Special Economic Zone (JS-SEZ) will bring a positive transformation to the state, says Mentri Besar Datuk Onn Hafiz Ghazi.

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.