ISKANDAR PUTERI: The Forest City Special Financial Zone's 15 per cent income tax rate and streamlined visa policies are expected to attract top-tier talent, particularly in high-demand sectors.
Iskandar Investment Bhd (IIB) chief executive officer, Datuk Idzham Mohd Hashim, said the incentives will not only transform Johor's economic landscape but will also draw investors in sectors such as technology, finance, and services.
"The lower tax burden makes Johor a more attractive option for both local and international talent, especially when compared to other regional hubs," he told the New Straits Times yesterday, adding that the income tax rate is below the maximum rates in Singapore, Thailand, Indonesia, and Vietnam.
The Forest City Special Financial Zone (FC-SFZ) will ensure Johor gains an edge over other regional hubs, establishing the state as a prime destination for both local and international talent by reducing the tax burden and simplifying visa processes to attract skilled professionals.
Idzham said that the long-term visa options are designed to facilitate easier relocation, allowing talent to settle, work, and contribute to Johor's economy. The policy is expected to streamline hiring for companies, enhancing the local workforce through foreign expertise and knowledge transfer.
For investors, Johor's competitive tax rate offers significant cost-saving benefits, positioning areas like Medini as ideal locations for regional headquarters, particularly in sectors such as financial services, digital technology, and research and development.
"Johor is developing a fertile environment for both start-ups and multinationals to scale and innovate," Idzham added, emphasising FC-SFZ's role in attracting businesses with cutting-edge infrastructure and an expanding talent pool.
"Located close to Singapore, Johor's strategic position, alongside the Johor-Singapore Special Economic Zone, provides businesses with a compelling alternative for regional expansion. These initiatives align with IIB's vision to position Johor as a key player in the Asean economic landscape, cementing its reputation as a competitive investment destination within Malaysia and beyond," he said.
Meanwhile, Johor Investment, Trade, Consumer Affairs, and Human Resources Committee chairman, Lee Ting Han, said that FC-SFZ is set to become a magnet for global talent, attracting professionals from high-tech and innovative sectors. This will help to transform Forest City into a hub for growth, creativity, and job opportunities.
The reduced tax rate is a core component of the government's strategy to attract international expertise and encourage knowledge-based industries to establish operations within the SFZ.
Skilled workers in sectors such as global business services, financial technology, and information technology are expected to benefit the most, giving Johor an edge in driving innovation and boosting economic development.
This policy is designed to meet the rising demand for talent as more multinational corporations (MNCs) and start-ups look to the region for expansion.
In addition to the competitive tax rate, the introduction of multiple-entry visas is seen as a game-changer for foreign professionals. These visas will allow for easier and more flexible movement for those working in or investing in the SFZ, significantly reducing administrative hurdles.
The streamlined process will not only make it more attractive for talent to relocate but will also enable business owners and investors to engage in cross-border activities with greater efficiency.