Forest City’s SFZ to be integrated into Johor-Singapore SEZ
12 Aug 2024
The Johor government has proposed for the Forest City Special Financial Zone (SFZ) to be included within the Johor-Singapore Special Economic Zone (JS-SEZ).
Johor’s Investment, Trade, Consumer Affairs, and Human Resources committee chairman Lee Ting Han said the proposal was discussed internally and it would be submitted to the JS-SEZ working committee for further deliberation.
“The Forest City master plan, launched in 2016, aimed to develop the area into an integrated zone focusing on medical, tourism, education, and real estate sectors.
“There was also a plan to transform an island into a duty-free zone, which was realised this year with government support, making Forest City Island One duty-free.
“The SFZ was announced by Prime Minister Datuk Seri Anwar Ibrahim about a year ago, and has been progressing well,” he said in a statement today.
Lee said Forest City’s strategic location and alignment with its master plan made it an ideal choice for the SFZ.
He added that they were now incorporating the financial sector into Forest City’s development, and said the existing infrastructure was nearly complete.
Forest City’s proximity to Singapore, a major international financial and logistics hub, presents a significant opportunity to complement Singapore’s offerings.
“Our focus is on attracting investors to the SFZ and addressing the need for soft infrastructure like talent and connectivity.”
Lee added that the state government intended to elevate Johor’s financial industry, which has traditionally been conventional, by introducing advanced banking, capital, and bond products.
The initiative is expected to complement Singapore’s financial sector and potentially establish a new industry in Johor.
“We anticipate more details on the SFZ incentives by the end of August, before the signing of the JS-SEZ agreement between Malaysia and Singapore,” Lee said.
“We are proposing that the Forest City SFZ be integrated into the JS-SEZ to ensure it benefits from the same incentives.”
He said folding in the SFZ within the JS-SEZ would formalise cooperation between Malaysia and Singapore, enabling more concrete collaborations.
One of the proposals under consideration was for financial investors in Singapore to expand their operations into Forest City.
Since the SFZ announcement, the Johor government had engaged with various financial institutions, both domestic and international, to explore opportunities.
“Many industry players are eager to invest in the SFZ, but they are awaiting the announcement of incentives.
“We aim to position Forest City as a hub for launching financial products into international markets,” Lee said.
Source: NST
