Micah Tamthai, COO of Lifestyle and Real Estate at Minor International.
Launched in January, the Johor-Singapore Special Economic Zone (JS-SEZ) is aimed at strengthening the value proposition and economic relations between Johor and Singapore. With tax incentives and a focus on improving the business ecosystem in the Southern corridor, the new zone is earmarked to boost investment and economic activity in the state.
For Minor International, the company that manages the luxury residential development, Anantara Desaru Coast Residences, they view the JS-SEZ as a facilitator of growth and development in Johor. Desaru Coast – designated as the zone’s flagship area – in particular is poised to benefit from the increased economic activity and investment the JS-SEZ is expected to attract.
“The new tax incentives will make Anantara Desaru Coast Residences an even more attractive investment proposition,” opines Micah Tamthai, COO of Lifestyle and Real Estate at Minor International. “We anticipate an increased demand from discerning buyers in the market for an investment property or a family home.”
Fuelling Growth
Anantara Desaru Coast.
Developers and hospitality players like Minor could benefit greatly from the JS-SEZ. The new incentives, which came into effect on 1 January 2025, include a 5% tax rate for 15 years for companies investing in high-value activities within the JS-SEZ, while eligible knowledge workers will also benefit from a 15% income tax rate for 10 years.
The JS-SEZ’s focus on high-value industries such as artificial intelligence, quantum computing, medical devices and aerospace manufacturing is also expected to create a highly skilled workforce and drive demand for premium residential properties. The zone is expected to create 20,000 skilled jobs in the first five years through the expansion of 50 projects within the same timeframe.
Tamthai believes this surge of activity will positively impact real estate investment in Desaru Coast through increased demand for housing, improved infrastructure, and tourism growth, potentially leading to capital appreciation for property owners. “For Minor, this initiative further strengthens the value of our existing investments as Johor continues to evolve into a premier destination for business, leisure, and events.”
Development Boost
The JS-SEZ could raise the appeal for development in the Southern Corridor.
Ultimately, she perceives the JS-SEZ will accelerate Johor’s transformation into a hub for innovation and high-value industries, driving further development. “The incentives provide compelling opportunities for businesses considering Johor as an alternative to Kuala Lumpur,” she adds.
“With the Johor-Singapore Special Economic Zone nearly twice the size of Shenzhen, it offers extensive opportunities for investors across diverse industries, including finance, manufacturing, agriculture, construction, and technology.”
The favourable tax incentives, coupled with the strong economic outlook, certainly create an encouraging environment for future investments. It also begs the question if this will serve to inspire developers like Minor International to place more focus on the area.
Tamthai doesn’t discount the fact, admitting that the group continuously explores opportunities to expand its footprint in high-growth regions. “With the state government reducing entertainment duties early this year, we see long-term value in strengthening our presence as a pioneer investor in Desaru Coast, particularly as the JS-SEZ continues to develop and create additional growth opportunities.”
