Iskandar Puteri
New incentives were introduced on Friday to boost development in the Forest City Special Financial Zone, located in Johor, Malaysia. At the launch event, Second Finance Minister Amir Hamzah Azizan outlined the benefits, including a 0% tax rate for family wealth offices, a concessionary corporate tax rate of 0-5%, and a special 15% individual income tax for knowledge workers and Malaysians employed in the zone.
Financial companies relocating to Forest City will receive added perks, such as deductions on relocation costs, improved industrial building allowances, and exemptions from withholding tax, sources reported.
Amir Hamzah emphasized that Forest City, a duty-free island within a financial zone, has the potential to act as a major driver of economic growth in southern Malaysia. With participation from local and international partners, the project aims to transform Johor into a recognized financial hub, comparable to China’s Shenzhen or Dubai’s International Financial Center.
Located in Iskandar Puteri, Johor’s administrative capital, Forest City spans four man-made islands covering 30 square kilometers. The zone, jointly developed by China’s Country Garden and a Johor state agency, was officially announced by Prime Minister Anwar Ibrahim on August 25, 2023, to leverage its proximity to Singapore and attract talent and investment.
