KUALA LUMPUR: Minor International has welcomed the introduction of the Johor-Singapore Special Economic Zone (JS-SEZ) and the accompanying tax incentives aimed at driving investment and economic activity in Desaru Coast, Johor.

The economic zone, which spans 357,128 hectares, covers the Iskandar development region and three additional areas. Desaru Coast has been designated as the flagship area within the zone, with a focus on key sectors including education, food security, healthcare, and tourism.

Minor manages the luxury residential development Anantara Desaru Coast Residences in Desaru Coast.

The hospitality company believes the residences are well-positioned to benefit from the anticipated increase in economic activity and investment spurred by the JS-SEZ.

"The new tax incentives will make Anantara Desaru Coast Residences an even more attractive investment proposition," said Micah Tamthai, chief operating officer of lifestyle and real estate at Minor.

Tamthai anticipates an increased demand for the residences from discerning buyers in the market for an investment property or a family home.

The new incentives, which took effect on Jan 1, include a 5 per cent corporate tax rate for 15 years for companies investing in high-value activities within the JS-SEZ. Eligible knowledge workers will also enjoy a 15 per cent income tax rate for 10 years.

The JS-SEZ's emphasis on high-value industries such as artificial intelligence, quantum computing, medical devices, and aerospace manufacturing is expected to cultivate a highly skilled workforce and drive demand for premium residential properties.

The zone is projected to create 20,000 skilled jobs within the first five years, with the government targeting the expansion of 50 projects over the same period.

The surge in economic activity within the JS-SEZ is anticipated to have a positive impact on real estate investment in Desaru Coast, driven by increased demand for housing, improved infrastructure, and tourism growth, potentially leading to capital appreciation for property owners.

"Minor is confident that the tax incentives will be a major catalyst for economic growth in the region," Tanthai said.