The Malaysian government has taken a significant step by designating the Forest City project as a special financial zone, aimed at stimulating economic growth in Iskandar Malaysia. Prime Minister Anwar Ibrahim highlighted various incentives, including multiple entry visas and a flat income tax rate of 15%, intended to attract knowledge workers and foster growth in sectors like healthcare, education, and tourism.
The special financial zone status provides an added advantage to the Forest City project, supplementing the existing incentives. This move is predicted to attract businesses, particularly those grappling with high operating costs in Singapore. Anwar Ibrahim emphasized that Malaysia and Singapore, rather than being competitors, could establish a complementary relationship, given Johor’s strategic proximity to Singapore.
With Forest City now positioned as a special financial zone, its potential to contribute to the economic landscape of Iskandar Malaysia is significant. The initiative aims to capitalize on Forest City’s unique location advantage and provide impetus to sectors crucial for sustained economic development.