JS-SEZ Eyes Stronger Italy and EU Partnerships to Boost Johor’s Global Competitiveness

KUALA LUMPUR, JULY 2026 — The Johor-Singapore Special Economic Zone (JS-SEZ) is looking to strengthen cooperation with Italy and the European Union as Malaysia seeks to boost Johor’s competitiveness as a regional investment hub. The growing interest from Italian and European investors is seen as a positive signal for the cross-border economic corridor, which is being positioned as one of Malaysia’s most important growth engines.

Economy Minister Akmal Nasrullah Mohd Nasir said Italy is preparing to bring more investors to explore opportunities in the JS-SEZ, as European interest in the economic zone continues to increase. The government organised the JS-SEZ Executive Forum after receiving strong interest from Italy and other European countries that wanted a better understanding of investment opportunities in the zone.

According to Akmal, the engagement was arranged following discussions with Italian Ambassador to Malaysia Raffaele Langella, who informed the government that Italian investors were keen to explore the potential of the JS-SEZ. Akmal said the government wants to move quickly to capture the interest and turn it into real investment outcomes.

The forum is not expected to be a one-time engagement. Follow-up sessions are already being planned to continue discussions with Italian and European investors. This is important as Malaysia aims to build investor confidence and ensure that the JS-SEZ does not only attract attention, but also delivers concrete projects that can support Johor’s long-term economic growth.

Italian companies are reportedly interested in several sectors, including oil and gas, food manufacturing and semiconductors. Langella said Italian investors are not only looking at general investment opportunities, but are focused on high-quality projects that can be integrated into regional supply chains. He also highlighted that Italian companies such as STMicroelectronics already have a presence in Johor, while energy company ENI is involved in a major project with Petronas.

The growing interest from Italy is significant because it reflects broader European confidence in Johor’s investment potential. With the JS-SEZ connecting Johor’s industrial capacity and land availability with Singapore’s global connectivity and business ecosystem, the zone is increasingly seen as a strategic platform for companies that want to expand across ASEAN.

The JS-SEZ is designed as a designated area in Johor to strengthen economic collaboration and investment between Malaysia and Singapore. It aims to create a vibrant business hub across various sectors by leveraging the strengths of both countries. Malaysia announced a tax incentive package for the JS-SEZ on January 8, 2025, following the signing of the JS-SEZ agreement between Malaysia and Singapore.

The incentive package includes a special corporate tax rate of five percent for up to 15 years for eligible companies investing in advanced sectors such as artificial intelligence, quantum computing, medical devices, aerospace manufacturing and global services hubs. Eligible knowledge workers in the JS-SEZ can also enjoy a 15 percent income tax rate for 10 years. These incentives are expected to strengthen Johor’s appeal among global investors looking for cost-efficient, high-value and future-ready business locations.

Beyond financial incentives, the JS-SEZ is also expected to improve Johor’s position in regional supply chains. The zone has the potential to attract companies involved in manufacturing, digital services, logistics, food processing, energy, technology and high-value industrial activities. For European investors, Johor offers access to Malaysia’s domestic market, Singapore’s international business network and ASEAN’s growing consumer base.

Langella also said Italian companies are interested in sharing expertise with Malaysian firms, especially in areas involving small and medium enterprises, workforce training and technical education. This could help local companies improve their capabilities while creating better opportunities for talent development and technology transfer.