The recently announced incentives for Forest City’s special financial zone (SFZ) are set to boost international capital inflows, further positioning Johor as a key economic driver for Malaysia, according to Prime Minister Datuk Seri Anwar Ibrahim. Speaking at Invest Malaysia 2024, the Prime Minister outlined the strategic measures designed to enhance Johor’s growth, transforming the region into the country’s new growth engine.
Anwar referred to the government’s recent announcement of a comprehensive package of tax incentives intended to revive interest in Forest City. The incentives include a concessionary corporate tax rate ranging from 0% to 5%, a special individual income tax rate of 15% for knowledge workers and Malaysians employed in the area, and a 0% tax rate for family offices.
Forest City: A Magnet for International Investment
“Last week, we announced a competitive package of incentives to make Forest City a magnet for international capital,” Anwar said during his keynote address. The Prime Minister stressed the importance of Forest City SFZ in attracting global investments, highlighting that these incentives aim to position Johor as a central hub for Malaysia’s economic expansion.
“This is quite a special sort of consideration because we want to propel Johor as one of the primary engines of growth in the country,” Anwar noted. He emphasized that the newly introduced tax schemes, particularly for single family offices—coordinated by the Securities Commission Malaysia—are part of the government’s effort to encourage regional and Malaysian families to manage their family wealth from Malaysia.
Collaboration with Singapore Vital for Johor’s Growth
Apart from the Forest City initiatives, Anwar Ibrahim also underlined the significance of Johor’s collaboration with Singapore, especially within the context of the Johor-Singapore Special Economic Zone (JSSEZ). He described this collaboration as pivotal to driving economic progress in the region, noting that strong cooperation between the federal and state governments, alongside Singaporean policymakers and businesses, has been instrumental to the zone’s success.
“Johor’s success stems from the strong cooperation between the federal and state governments, alongside Singapore. Policymakers, investors, and businesses from both countries have worked together to make this zone a success,” Anwar said.
Strengthening Malaysia-Singapore Relations
Anwar reiterated the Malaysian government’s commitment to maintaining strong bilateral ties with Singapore. He assured that any minor issues arising between the two nations could be easily resolved through dialogue and mutual cooperation.
“We benefit from a win-win relationship, and I am eager to strengthen our collaboration with Singapore, especially as Malaysia prepares to chair Asean next year,” the Prime Minister added.
Invest Malaysia 2024
The Invest Malaysia 2024 conference, co-hosted by Bursa Malaysia Bhd, Maybank, CIMB Securities, and HSBC Malaysia, is taking place in Johor for the first time. The flagship event highlights the JSSEZ and other significant initiatives designed to attract investment to the region, reinforcing Johor’s role in Malaysia’s long-term economic strategy.
With the introduction of incentives aimed at fostering both domestic and international investment, Johor is poised to strengthen its position as a financial and economic hub in Southeast Asia, further benefiting from its strategic collaboration with Singapore. These initiatives signal a pivotal moment in Johor’s development, with the potential to significantly enhance the region’s global investment appeal.
