Iskandar Malaysia: Flagship Zones and Industrial Areas

Riverside mixed development in Iskandar Malaysia, Johor

Iskandar Malaysia is the economic region at the southern tip of Johor, facing Singapore. It was launched in 2006, covers 2,217 square kilometres (about three times the size of Singapore) and is planned and promoted by the Iskandar Regional Development Authority (IRDA). The region is divided into five flagship zones: Johor Bahru City Centre, Iskandar Puteri (Nusajaya), the Western Gate around the Port of Tanjung Pelepas, the Eastern Gate around Pasir Gudang, and Senai–Kulai. Since 2025, Iskandar Malaysia has also been the core of the Johor–Singapore Special Economic Zone (JS-SEZ). Almost every major industrial area in southern Johor sits inside it.

Where is Iskandar Malaysia?

Iskandar Malaysia takes in Johor Bahru, Iskandar Puteri, Pasir Gudang, Kulai and part of Pontian district. It is linked to Singapore by the Causeway in Johor Bahru and the Second Link at Tuas, and the North–South Expressway connects it to the rest of Malaysia. View Iskandar Malaysia on Google Maps.

The region has three ports and an international airport, which is why most of Johor’s factories and warehouses are here:

  • Port of Tanjung Pelepas (PTP): one of the largest container ports in the region, in the west near Gelang Patah
  • Johor Port: in Pasir Gudang in the east, a multipurpose port with a free zone, and the world’s largest palm oil terminal
  • Tanjung Langsat Port: east of Pasir Gudang, for liquid and bulk cargo
  • Senai International Airport: in the north, with a cargo terminal next to Senai Airport City

The five flagship zones and their industrial areas

Zone A: Johor Bahru City Centre

The business and retail centre of Johor Bahru, with the Causeway and the RTS Link station at Bukit Chagar. For industry, the older estates in and around the city, such as Kempas, Tampoi and Impian Emas, have smaller terrace, semi-detached and detached factories close to customers and workers. See factories in Johor Bahru and factories in Kempas.

Zone B: Iskandar Puteri (Nusajaya)

The state administrative centre, with Medini, EduCity and Puteri Harbour. Its industrial side has grown fast: Nusajaya Tech Park and Nusa Cemerlang are now home to several large data centres, and SILC (Southern Industrial and Logistics Clusters) has freehold detached factories and land. Read about data centres in Nusajaya and Gelang Patah, or browse factories in Iskandar Puteri and factories in SILC.

Zone C: Western Gate Development

The area around the Port of Tanjung Pelepas and the Tanjung Bin power station, near the Second Link to Singapore. It suits port-related logistics, bonded warehouses and heavy users of power. For example, this 200,000 sq ft bonded warehouse for rent at PTP. Browse factories in Gelang Patah.

Zone D: Eastern Gate Development

Johor’s heavy industry belt: the 8,000-acre Pasir Gudang Industrial Estate around Johor Port, and the Tanjung Langsat Industrial Complex further east, with petrochemical, chemical, engineering and food plants. Read our guides to factories for rent in Pasir Gudang and the Tanjung Langsat Industrial Complex, or browse factories in Pasir Gudang.

Zone E: Senai–Kulai

The northern zone around Senai International Airport and the North–South Expressway. It includes Senai Airport City and its Free Industrial Zone, Seelong, the Kulai parks and the Sedenak data centre hub, and most factories here are freehold. Read our guides to Senai Airport City and industrial parks in Kulai, or browse factories in Senai.

For a park-by-park overview with tenure and property types, see our guide to industrial parks in Johor.

Iskandar Malaysia and the Johor–Singapore SEZ

Malaysia and Singapore signed the agreement on the Johor–Singapore Special Economic Zone on 7 January 2025. The JS-SEZ covers about 3,588 square kilometres: the whole of Iskandar Malaysia plus Pengerang in the southeast. It has nine flagship areas, including Iskandar Puteri, Tanjung Pelepas, Tanjung Langsat–Kong Kong, Senai–Skudai, Kulai–Sedenak, Forest City and Pengerang. MIDA describes Iskandar Malaysia as the cornerstone of the JS-SEZ.

For qualifying new investments in sectors such as manufacturing, logistics, data centres and the digital economy, the main incentives are:

  • Corporate tax as low as 5% for up to 15 years
  • A 15% flat personal income tax rate for qualifying knowledge workers
  • Applications open from 2025 to 2034

Eligibility depends on the activity and the size of the investment, so check with MIDA or Invest Johor first. IRDA’s own site is at irda.com.my.

The RTS Link and other new infrastructure

The Johor Bahru–Singapore RTS Link, a 4 km rail line from Bukit Chagar to Woodlands North, is targeted to start service around the end of 2026. It will make daily travel between Johor Bahru and Singapore much easier for managers and staff, which matters for companies that run a factory in Johor and an office in Singapore. See how the RTS Link affects industrial property in Johor.

Power is the other big change. Johor has become one of the fastest-growing data centre markets in Asia, and most of the new capacity is inside Iskandar Malaysia, in Nusajaya Tech Park, Gelang Patah, Kulai and Sedenak.

Choosing an industrial location in Iskandar Malaysia

  • Where your goods go: sea freight points to Pasir Gudang or Tanjung Pelepas, air freight to Senai, and daily trucks to Singapore to Gelang Patah or Johor Bahru.
  • Land use: heavy industry is mainly in Pasir Gudang and Tanjung Langsat; most other parks are for light or medium industry. Check that the title fits your activity so you can get your licence.
  • Tenure: the newer parks in Senai, Kulai and Gelang Patah are mostly freehold; parts of Pasir Gudang and Tanjung Langsat are leasehold.
  • Foreign buyers: state consent is needed before the transfer, which usually takes about 3 months. Our guide to buying a factory in Johor explains each step.

More background on the market is in why companies invest in industrial property in Johor.

Looking for a factory, warehouse or industrial land in Iskandar Malaysia? Tap WhatsApp or Call on this page and tell Jimmy the size, power and area you need. He will send you the available options in each zone, with prices and plans.