Iskandar developer to capitalise on Forest City’s financial zone
25 Sep 2024
Iskandar Investment Bhd (IIB) is poised to reap benefits from the Forest City Special Financial Zone (SFZ) incentives, as it leverages its position as a master developer of Iskandar Malaysia.
Iskandar Malaysia’s land area is 2,217 sq km, three times larger than Singapore. It is home to two million people and its population is set to grow to three million next year.
IIB president and chief executive officer Datuk Idzham Mohd Hashim said SFZ, designed to attract high-value investments with its tax incentives and streamlined processes, was expected to generate spillover that would directly benefit IIB’s projects, such as Tech Medini and GBS Iskandar @ Medini.
IIB’s developments in Iskandar Puteri are recognised as a growing hub for technology and innovation.
It is anticipated to see increased demand for premium commercial space, driven by an influx of multinational corporations and financial institutions, he told the New Straits Times today.
“Iskandar Puteri’s proximity to Forest City places it in an ideal position to attract businesses looking for high-quality infrastructure and connectivity.
“The SFZ will accelerate Iskandar Puteri’s transformation into a world-class business district, creating a surge in high-skilled jobs and further boosting our role in Johor’s economic development,” he said.
Khazanah Nasional Berhad (KNB), the Employees Provident Fund (EPF) and Kumpulan Prasarana Rakyat Johor (KPRJ) are the shareholders of IIB.
Idzham said Forest City’s strategic location and its proximity to Singapore would enhance Johor’s competitiveness, while positioning it as a prime destination for global investors.
With infrastructure projects like the Rapid Transit System (RTS) and the potential revival of the High-Speed Rail (HSR) on the horizon, IIB was expecting further investments to flow into Iskandar Puteri.
“The RTS is expected to strengthen connectivity, which will make Iskandar Puteri even more accessible and attractive.
“We see the establishment of Forest City SFZ as a pivotal moment in Johor’s economic landscape, with the potential to cement the state as a key financial hub in Southeast Asia.
“For IIB, SFZ will serve as a catalyst for attracting high-value investments and driving regional growth, which will cement our status as a key player in the country’s economic landscape,” he said.
Last Friday, Finance Minister II Datuk Seri Amir Hamzah Azizan announced that Forest City SFZ would be the first in the country to offer a zero per cent concessionary tax rate on income generated by eligible investments from the Single Family Office Vehicle (SFOV1).
SFOV1 is a corporate vehicle which is wholly owned, directly or indirectly, by one or more individuals from a single family and established solely for the purpose of holding the investments of family members.
Other SFZ’s strategic incentives, include a zero to five per cent corporate tax rate, a flat 15 per cent income tax for knowledge workers and streamlined immigration processes is set to draw multinational corporations and global financial institutions, boosting job creation and stimulating sectors like financial services, technology and logistics.
Idzham said Forest City SFZ would complement Iskandar Puteri’s projects by attracting a new wave of businesses, increasing demand for high-quality commercial space, and driving further investments in infrastructure. This would accelerate Iskandar Puteri’s transformation into a world-class business district and a centre for high-skilled jobs.
Source: NST
