Special Economic Zones in the OIC Region:
Learning from Experience
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 Any activity carried out within the free trade zone must be notified to its authority in
order to obtain permission; and
 The authority shall permit customs offices to be established in a free trade zone and
shall provide adequate facilities for officers of customs whose duties require their
presence within or at the perimeter of the zone.
Licensing, Ownership and Zoning Restrictions
JTC adopts a light touch approach to administering activities in the zones. In order to qualify, a
firmmust adhere to a set of qualifying criteria which include, but are not limited to the following:
Table 5-9 - Jurong Qualifying Criteria
Criteria Qualifying Characteristics
Fixed Asset Investment
Plant and machinery - A company locating will have to
declare their overall investment figures and state a
reason why they are that value
Buildings and civil works (B&C) - A company will also
have to meet the minimum buildings and civil
requirements. This includes a set of design standards.
Firms will have to provide a set of cost figures
indicating the expected building standard.
Plot Ratio
Companies are required to declare their plot ratio and
floor area requirements, these vary depending on site
usage.
Value Added
The firms will be considered on the value added, this is
the total difference between the total output and total
operating costs. Firms who project a higher value added
production will have a greater chance of entry.
Credibility of Firms Business Proposal
The credibility and quality of the business proposal will
benefit their application process.
Source: JTC (2017) Policies for Industrialists
Incentives
The key incentives offered to firms locating inside the zone include:
 Jurong port- no taxes on the import , export or re-export of goods;
 Investor is liable for 5 year tax holiday then a 5 year 10% corporation tax agreement;
and