KUALA LUMPUR, Sept 4 — Johor must simplify its regulations and improve the state’s infrastructure to draw multinational firms towards the state’s Special Economic Zone with Singapore (JS-SEZ), businesses and industry experts said.

According to Channel News Asia, businesses also expect financial incentives to support the SEZ that is set to be finalised this year.

“Additionally, (we are hopeful that the SEZ would offer more) tax breaks and exemptions, investments grants and subsidies, low interest loans and financing and provision of incentives for foreign companies to facilitate job creation, transfer of knowledge and upskilling of the local workforce,” Chris Robblee, the head of Dutch tank storage company Vopak, was quoted as saying.

Robblee said his firm already enjoys Malaysian tax benefits such as the Investment Tax Credit and Pioneer Status Program, and is hoping to see more.

Aside from incentives, Gary Goh, a business development manager of Malaysian data centre advisory firm Sprint DC Consulting, approval times in Johor must be drastically shortened to capture the momentum.

Among others, he pointed out that Selangor has a policy to issue approvals within 100 days to facilitate investments.

“The shortest time to process the land permits usually takes months, but it could take years. So companies who are keen to develop data centres are hoping that the processes can be accelerated,” he added.

“If this time can be shortened to even nine months, it will help,” he said.

China tech giant GDS Holding senior vice president of international business Jimmy Yu said there were concerns about the ability of Johor’s infrastructure to cope with demands of the data centres that would likely be the core of the JS-SEZ.

For now, he said data centre firms must make additional provisions for safeguards, such as water-free cooling technologies, as a precaution.

“While Johor has the resources, there is a need for readiness and infrastructure development to handle the increased demand,” he added.

Johor Menteri Besar Datuk Onn Hafiz Ghazi said last month that officials from Malaysia and Singapore were hopeful of finalising the agreement for the JS-SEZ by November.

The SEZ, formally unveiled in October 2023 during Prime Minister Datuk Seri Anwar Ibrahim’s visit to Singapore for the 10th leaders’ retreat, is designed as an integrated business and investment zone aimed at facilitating the movement of people and goods across the border.

The project is expected to encompass Iskandar Malaysia and Pengerang, covering 3,505 square kilometres in southern Johor — an area more than four times the size of Singapore.

https://www.malaymail.com/news/malaysia/2024/09/04/report-global-firms-want-tax-breaks-faster-approvals-better-infrastructure-for-johor-singapore-sez-buy-in/149182