The government launched the Forest City Special Financial Zone (SFZ) today. Here's what you need to know:
Located in Iskandar Puteri, Johor, Forest City is made up of four man-made islands spanning 30 square kilometres.
Forest City is a US$100 billion development by Country Garden Pacificview Sdn Bhd, a joint venture between Country Garden Group and the Malaysian-government-backed Esplanade Danga 88 Sdn Bhd.
On Aug 23, 2024, Prime Minister Datuk Seri Anwar Ibrahim announced that an SFZ would be created in Forest City.
Anwar announced the expansion of incentives in Iskandar Malaysia to Forest City, including a special income tax rate of 15 per cent for skilled workers and multiple entry visas.
In August 2024, the Johor state government proposed for the Forest City SFZ to be included in the Johor-Singapore Special Economic Zone (JS-SEZ).
At the launch of the Forest City SFZ today, the government announced additional incentives, which included making it the first location in Malaysia to offer a zero per cent tax rate for family wealth offices, by Q1 2025.
Forest City will also offer a concessionary corporate tax rate between zero and five per cent to attract global business services, financial technology, and foreign payment system operators to set up there.
Financial companies will also enjoy incentives that include special deductions on relocation costs, enhanced industrial building allowances and withholding tax exemptions.