ISKANDAR PUTERI, Nov 27 –– The Forest City Special Financial Zone (SFZ) has identified two main sectors as its main focus areas, said Johor Menteri Besar Datuk Onn Hafiz Ghazi.
He said services for the first sector will be provided on Pulau Satu, while services for the second sector will be developed on the mainland of Forest City.
“Forest City has a unique advantage as a tax-free island within the SFZ and encompasses two areas –– Pulau Satu and the mainland, each with conditional incentives targeting specific sectors.
“The first sector will involve the banking and financial services on Pulau Satu, while the logistics services, global service centre and transfer services will be offered on the mainland,” he said at the Johor state legislative assembly session in Kota Iskandar here today.
Onn Hafiz (BN-Machap) was responding to questions from Fauziah Misri (BN-Penawar) and Chiong Sen Sern (PKR-Bukit Batu) on the current status and development of the Forest City SFZ.
Onn Hafiz pointed out that there are nine incentives at Pulau Satu such as a concessional corporate tax rate of zero to five per cent compared to the current rate of 24 per cent, in addition to being the first location in the country to offer a 0 per cent tax rate for Family Offices.
He added that two incentives will be offered for the mainland, a 100 per cent investment tax allowance for five years to deduct 100 per cent of statutory income for the logistics services sector and a five per cent tax rate for up to 20 years for global service centres and relocation services.
“Several local and international financial institutions as well as logistics industry players have shown interest in investing in the Forest City SFZ, including Malayan Banking Bhd (Maybank), Public Bank Bhd, United Overseas Bank (UOB), Credit Lyonnais Securities Asia (CLSA) and Tiong Nam Logistics Holdings Bhd.
“In this regard, the state government will fully support the implementation of the Forest City SFZ which will provide huge benefits not only to Johor’s economic growth, but also to the people through high-income employment opportunities,” he said.
On September 20, the government launched the Forest City SFZ, announcing several incentives, which included making it the first location in Malaysia to offer a 0 per cent tax rate for family wealth offices, by the first quarter of next year.
Prime Minister Datuk Seri Anwar Ibrahim announced the formation of an SFZ in Forest City on August 25 last year to boost investment, growth and economic activities in Johor.
He was reported saying that the cost of doing business in the Forest City SFZ will be more affordable, as it will be assisted by several incentives provided by the government.
The Forest City SFZ is located in Forest City, Iskandar Puteri. It is made up of four man-made islands spanning 30 square kilometres.
Forest City is a US$100 billion (RM445 billion) development in Iskandar Puteri, Johor, by Country Garden Pacificview Sdn Bhd, a joint venture between Country Garden Group and the Malaysian-government-backed Esplanade Danga 88 Sdn Bhd.