ISKANDAR PUTERI: The Special Financial Zone (SFZ) in Forest City will prioritize banking and financial services, as well as logistics services, global service centers, and transfer services, according to Johor Menteri Besar Datuk Onn Hafiz Ghazi.
- Pulau Satu in Forest City will host banking and financial services.
- The mainland area will focus on logistics services and global service centers.
“Forest City benefits as a duty-free island within the SFZ, offering sector-specific incentives across Pulau Satu and the mainland,” said Onn Hafiz during the Johor State Legislative Assembly in Kota Iskandar.
Key Incentives for SFZ Development
Onn Hafiz detailed the incentives to attract investors:
- Pulau Satu:
- Concessional corporate tax rate: 0%-5% (compared to the usual 24%).
- Zero per cent tax for Family Offices for up to 20 years (a national first).
- Mainland area:
- 100% investment tax allowance for five years, reducing statutory income for logistics services.
- Five per cent tax rate for up to 20 years for global service centers and transfer services.
Investor Interest
Several prominent local and international institutions have shown interest in investing in Forest City’s SFZ, including:
- Malayan Banking Bhd
- Public Bank Bhd
- United Overseas Bank
- Credit Lyonnais Securities Asia
- Tiong Nam Logistics Holdings Bhd
Onn Hafiz emphasized the state government’s commitment to supporting the SFZ, highlighting its potential to boost Johor’s economic growth and create high-income job opportunities.
Measures to Curb Counterfeit Goods
In response to concerns about counterfeit goods in the logistics sector, Onn Hafiz outlined the establishment of a new Customs Complex in Forest City. The facility will include advanced technology such as AI-based baggage scanners and facial recognition systems to enhance security and prevent illegal activities.
National Initiative
The SFZ in Forest City was officially announced by Prime Minister Datuk Seri Anwar Ibrahim on August 25, 2023, alongside incentives aimed at stimulating Johor’s economy and the surrounding regions.
“This initiative will drive Johor’s economic transformation and benefit its people significantly,” added Onn Hafiz.
