Forest City’s Pulau Satu to Thrive with Duty-Free Island Status, Boosting Tourism and Property Demand
Forest City, located in Johor, is set to experience a surge in tourism and property demand with Pulau Satu’s official designation as a duty-free island. This move is expected to have a significant positive impact on the local economy, according to industry experts.
Economic Impact of Duty-Free Status
Lindy Tan, chairman of the Johor Real Estate and Housing Developersโ Association (Rehda), highlighted the ripple effect this status would have on Forest City and the wider Johor economy. โAn influx of more businesses and an active market will boost tourism, commerce, increasing market cash flow, and creating job opportunities. The real estate market will also benefit indirectly, welcoming more development opportunities,โ she told Malay Mail.
Earlier this month, Dewan Rakyat passed several bills that collectively make Pulau Satu a duty-free island, including the Customs (Amendment) Bill 2024 and the Sales Tax (Amendment) Bill 2024. While Pulau Satu was already a duty-free zone, this enhanced status will offer further economic and tax advantages, attracting more investment to the surrounding area.
Synergy with Special Economic Zones
Tan, who is also the executive director of property developer BCB Berhad, noted that the duty-free status of Pulau Satu would complement the Johor-Singapore Special Economic Zone (JS-SEZ) and Special Financial Zone (SFZ). The combination of these zones is expected to have a synergistic effect on the state’s tourism, investment, and commerce sectors. โThe effect of Forest Cityโs duty-free island status is expected to be greater than that of the other duty-free islands in the country,โ she said, referencing Labuan, Langkawi, Tioman, and Pangkor.
Benefits for Local Businesses and Employment
Samuel Tan, executive director of KGV International Property Consultants Sdn Bhd, pointed out the intangible benefits that the duty-free status would bring to Forest City. He emphasized that the bills would streamline the duty-free status for Pulau Satu, enhancing its appeal as a shopping destination. โWith improved business, there will be more employment opportunities. At the same time, more shops will open, turning Forest City into a vibrant destination,โ he said.
Since 2016, Forest City has featured several floors of duty-free shopping outlets aimed at boosting its popularity. The new duty-free status is expected to enhance this further.
Positive Outlook from Local Businesses
The South Johor SME Association adviser Teh Kee Sin remarked that the decision to grant duty-free status was timely. He added that members of his group were excited about the development. โBesides traders, support services such as food and beverage (F&B), hospitality, construction, raw materials, transportation, consumer goods, and other related industries will also increase in tandem.โ
Goods Exempted from Tax
The goods exempted from tax on Pulau Satu will include liquor, chocolates, cosmetics, and perfume. These exemptions are expected to make the island a more attractive shopping destination, drawing in both local and international tourists.
Forest City’s Ambitious Plans
Forest City is China-based developer Country Garden Holdingโs most ambitious overseas project. The goal is to house 700,000 people on four reclaimed islands by 2035. Country Garden Pacificview, Forest City’s master developer, is 60% owned by Country Garden and 40% owned by Esplanade Danga 88, a private Malaysian corporation.
Conclusion
The official designation of Pulau Satu as a duty-free island is poised to transform Forest City into a bustling hub of tourism and commerce. This development is expected to boost the local economy, create job opportunities, and enhance the real estate market. As the area continues to grow, the synergistic effects of the duty-free status, along with the JS-SEZ and SFZ, will further solidify Johor’s position as a key economic region in Malaysia.
