CJMY
The Forest City Special Financial Zone (SFZ) was officially announced in Johor, marking a major step forward in Malaysia’s financial landscape.
The event, witnessed by the Regent of Johor and attended by the Second Minister of Finance, solidifies Forest City’s position as a hub for financial innovation.
Forest City is set to become Malaysia’s first location offering a zero-tax rate for family offices, attracting various financial institutions and boosting the financial sector.
Forest City’s financial innovation takes centre stage
The Forest City Special Financial Zone aims to transform Johor into a financial powerhouse.
With its strategic location near Singapore, the SFZ plans to develop a financial ecosystem that complements its neighbouring country’s economy.
This dual-core engine, combining the financial strengths of both Johor and Singapore, positions the region as a leading financial hub in ASEAN.
During the announcement, the Second Minister of Finance highlighted that Forest City would leverage its robust infrastructure, highly skilled talent, and effective governance to create opportunities for family offices.
He noted, “Forest City’s zero-tax policy and competitive environment are poised to attract global financial institutions, promoting the development of a new financial ecosystem.”
Economic growth and job creation in Johor
The creation of the Forest City SFZ brings significant advantages to Johor’s economy.
Experts believe this financial zone will attract a wide range of investments, create jobs, and stimulate rapid economic growth.
The state government is committed to bringing advanced financial infrastructure to Johor, ensuring that the region remains competitive internationally.
Johor’s proximity to Singapore, the financial centre of the Asia-Pacific region, is a key advantage.
The Forest City SFZ will not compete with Singapore but instead foster collaboration between the two economies, offering a unique proposition for investors.
Financial experts are optimistic about the region’s growth potential, with many confident that the SFZ will become a hub for financial resources.
Forest City is already seeing benefits from these developments.
In July 2024, Island 1 was officially listed as a duty-free island, a move expected to attract more investors and businesses to the region.
Additionally, Forest City is applying for Malaysian Digital Status, which would allow qualified companies to enjoy a 10-year corporate tax exemption.
To further encourage investment, the Johor State Government has plans to establish the Investment Malaysia Coordination Center (IMFC) within Forest City.
This initiative, alongside multiple preferential policies, positions Forest City as a “special zone within a special zone,” solidifying its place as a key driver of regional economic growth.
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