Malaysia has announced a tax incentive package to draw investment to its newly minted special economic zone with Singapore. The tax breaks are designed to bring high-value investments into Johor, the Malaysian state housing the special zone,

Malaysia and Singapore on Tuesday announced an agreement to establish a special economic zone on their border to boost investment and the movement of people and goods.

These are all good projects that Singapore will support and we hope under Malaysia's leadership, we can make good progress," Wong said. Malaysia is this year's chair of the Association of Southeast Nations (ASEAN).

Malaysia will offer tax incentives for companies and workers in its special economic zone with Singapore in the southern state of Johor, its finance ministry said on Wednesday.