Forest City Special Financial Zone to Catalyse Johor’s Economic Transformation and Boost Development in Iskandar Puteri

Iskandar Puteri, 23 September 2024 – Iskandar Investment Berhad (IIB) views the establishment of the Forest City Special Financial Zone (SFZ) as a landmark development that will significantly boost Johor’s economy. The SFZ’s introduction comes at a crucial time, when the state is poised to capitalise on its strategic location and growing infrastructure, cementing its role as a vital financial and economic hub in Southeast Asia.

Dato’ Idzham Mohd Hashim, President/Chief Executive Officer of IIB, expressed his enthusiasm about the upcoming Johor’s SFZ and its potential to propel the region’s growth and strengthen its connection with Singapore, “We are incredibly excited about the launch of the Forest City SFZ, which is set to attract high-value investments through enticing incentives like a concessionary corporate tax rate of 0% to 5%, a flat 15% income tax rate for knowledge workers, and fast-tracked immigration processes. We anticipate that these benefits will make Johor a highly appealing destination for multinational corporations and global financial institutions, driving job creation and growth in sectors such as financial services, technology, and logistics. The Forest City SFZ will be a game changer, fuelling sustainable economic development, fostering innovation, and enhancing cross-border collaboration in the region.”

The long-awaited revival of Forest City through the SFZ is also poised to further catalyse Johor’s development trajectory. Its proximity to Singapore, one of the world’s foremost financial centres, strengthens its appeal to global investors and positions Johor as a key player in the regional economy. The SFZ will be a game-changer that unlocks opportunities for local businesses while enhancing Johor’s regional and international competitiveness.

IIB sees this as an exciting opportunity for Iskandar Puteri, where we play a strategic role as the master developer. Iskandar Puteri’s proximity to Forest City places it in an ideal position to benefit directly from the economic spillover of this initiative. With our existing projects, such as Tech Medini and GBS Iskandar @ Medini, Iskandar Puteri is already thriving as a hub for technology and innovation. The Forest City SFZ will complement these efforts by attracting a new wave of businesses, increasing demand for high-quality commercial space, and driving further investments in infrastructure. This will accelerate Iskandar Puteri’s transformation into a world-class business district and a centre for high-skilled jobs.

Additionally, Johor’s upcoming transport infrastructure projects – including the Rapid Transit System (RTS), the Autonomous Rapid Transit (ART), and the potential revival of the High-Speed Rail (HSR) – will enhance connectivity between the SFZ, Iskandar Puteri, and Singapore. These transport links will further boost the attractiveness of Iskandar Puteri to global investors and businesses, making it an even more accessible and competitive destination.

Global examples of similar economic zones, such as Dubai’s free trade zones  and the UAE’s financial districts which demonstrate the immense potential of strategically located financial hubs. The Dubai Multi Commodities Centre (DMCC), in particular, has become a benchmark for success, attracting a broad range of industries from the diamond trade to emerging sectors like Electric Vehicles (EV). With more Chinese companies registered in DMCC by the end of 2023 and Dubai’s ability to offer specialised services, high-quality commercial spaces, and government-backed incentives has made it a key player in global business. This growth indicates how well-structured zones can support international business expansion, especially by offering tailored ecosystems for specific industries.

Johor’s SFZ can similarly position itself as a financial and business gateway in Southeast Asia by adopting elements from Dubai’s model. With enhanced connectivity and integration into larger regional initiatives, Johor can attract global players by offering strategic incentives and creating customised business environments, Johor’s SFZ can accelerate its own economic transformation, fostering innovation and driving sustainable growth for the region.

IIB is committed to building an inclusive and sustainable metropolis of the future in Johor, and the Forest City SFZ will play a critical role in helping to realise this vision. As Johor develops as a model for sustainable urban growth, IIB will continue to play a crucial role in amplifying Johor as the preferred investment destination for growth in ASEAN.