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.

It includes a 5% corporate tax rate for up to 15 years for companies in advanced sectors. The Johor State Government and Malaysia’s Ministry of Finance (MoF) have announced a tax incentive package for the newly established Johor-Singapore Special Economic Zone (JS-SEZ),

In an interview with CNA, he shares the rationale behind some decisions regarding the Johor-Singapore Special Economic Zone and how the project aligns with his country’s vision.

Malaysia and Singapore leaders have signed an agreement to create a special economic zone to attract global investment and ease the cross-border flow of goods and people

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.

The leaders of Malaysia and Singapore formalized an agreement establishing a special economic zone linking their two nations’ border region, with the aim of attracting 50 projects in the first five years of its establishment.