Malaysia offers incentives to investors in $100 billion real estate mega project

Speaking at the launch of the Forest City Special Financial Zone on September 20, Second Finance Minister Amir Hamzah Azizan said that among the incentives are a 0% tax rate for family offices, a preferential corporate tax rate of 0-5% and a special personal income tax rate of 15% for intellectual workers and Malaysians working here.

In addition, financial companies will enjoy a number of incentives, including special deductions for relocation costs, construction subsidies and withholding tax exemptions.

Forest City, with a duty-free island in a special financial zone, is seen as a “catalyst” for economic development in southern Malaysia, Mr Azizan added.

Accordingly, this area has the potential to promote growth not only in Johor but also expand to the entire ASEAN region.

Forest City also has the potential to develop into a globally recognized financial center, similar to Shenzhen in China and the Dubai International Financial Center in the United Arab Emirates (UAE).

Located in Iskandar Puteri, the administrative capital of Johor state, Forest City aims to be a city for 700,000 people living on nearly 30 hectares of four reclaimed islands.

This is a joint project between Chinese real estate developer Country Garden and Esplanade Danga 88 Company, owned by a Johor state government agency.

Prime Minister Anwar Ibrahim announced the Forest City project on August 25, 2023, with the aim of leveraging the region's location bordering Singapore, allowing the two sides to complement each other in encouraging talent and investment flows to boost regional economic development.