PETALING JAYA: The federal government is to create a special financial zone in the Forest City property development area in Iskandar Puteri, in an effort to stimulate investment and economic growth in Johor.
Prime Minister Anwar Ibrahim, who is also the finance minister, said government incentives for companies operating in the special financial zone would lower the cost of doing business there.
Anwar announced several incentives such as the extension of incentives in Iskandar Malaysia to the Forest City area, including a special income tax rate of 15% for skilled workers and the provision of multiple-entry visas.
He said the creation of the zone could attract more investors with Johor’s strategic location next to neighbouring Singapore, the availability of a complete basic infrastructure, and with costs in Singapore currently considered high.
“The synergy that exists in Johor is different from other states and (we) can take advantage of Singapore’s achievements,” he said.
He was speaking at an engagement session for the federal 2024 budget. Johor is the second state after Melaka to be involved in the ministry engagement session with all state governments to collect input on the budget which is scheduled to be presented on Oct 13.
Forest City is a controversial property development in the Straits of Johor comprising four artificial islands on reclaimed land, spanning 30 sq km.
It is a joint venture between the Country Garden Group of China and Esplanade Danga 88 Sdn Bhd, a private company backed by the Johor government and the Sultan of Johor.