PM: Johor’s economic incentives poised to attract global investors
26 Sep 2024
Economic incentives particularly in Johor’s Iskandar region and Forest City are aimed at bolstering Malaysia’s attractiveness to international investors, Prime Minister Datuk Seri Anwar Ibrahim said today (Sept 26).
In his keynote address at the Investment Malaysia- Iskandar 2024 conference, Anwar said these measures included a competitive tax regime, talent development initiatives, and a stronger focus on bilateral relations, notably with Singapore.
He said it was also important for continued economic collaboration within Asean, to ensure the country’s economic growth remained resilient.
“We have outpaced expectations in GDP growth for the first two quarters, and the third quarter is looking promising,” he said.
The key initiatives in Johor’s Forest City offered a concessionary corporate tax rate of zero to five per cent and a special individual income tax rate of 15 per cent for knowledge workers.
Forest City is the first in Malaysia to offer a zero-tax rate for family offices.
The initiative, managed by the Securities Commission, is aimed at attracting regional and Malaysian families to handle their wealth from within the country.
“These incentives are designed to make Johor a primary engine of growth for Malaysia,” Anwar said.
He also emphasised the need for talent development to keep pace with global technological changes, noting that Johor’s Universiti Teknologi Malaysia (UTM) had set up an Artificial Intelligence (AI) faculty in just four months to meet these emerging demands.
Anwar reiterated the government’s commitment to fight corruption and ensure better governance, which he linked to the ease of doing business.
He said Malaysia’s strategic advantage is part of a peaceful and economically vibrant Asean region, with continued bilateral cooperation with Singapore, which has spurred significant real estate and talent development in Johor.
As Malaysia prepares to chair Asean next year, Anwar reaffirmed the nation’s goal of becoming a leader in clean energy and sustainability, citing the progress in large-scale solar projects and net energy metering initiatives.
“These projects, in collaboration with Tenaga Nasional and Petronas, are key to Malaysia’s target of achieving net-zero emissions by 2050.
“With these initiatives, we aim to position Malaysia as a hub for international capital and technological innovation, driving the nation’s growth while fostering stronger regional ties,” he said.
Meanwhile, Johor Menteri Besar Datuk Onn Hafiz Ghazi said Johor’s strategic advantages and strong growth momentum made the state an unbeatable investment destination.
“We are witnessing growing interest from investors, both locally and internationally.
“Johor’s GDP growth outpaced the national average, expanding by 4.1 per cent year-on-year in 2023, driven primarily by our thriving services and manufacturing sectors,” Onn Hafiz said.
He added that Johor recorded RM5.2 billion in exports in July, with strong performances in petrochemicals, electronics, and non-metallic materials.
The menteri besar said Johor’s robust economic growth and infrastructure development are due to its political stability.
“Johor has a two-thirds majority in the state assembly, which allowed for the smooth execution of the Maju Johor 2030 plan.
“This initiative focused on six key areas, including governance, economic development, and youth empowerment,” he said.
Onn Hafiz also said Johor’s superior connectivity positioned it as a critical regional hub.
“This included Johor’s links to global supply chains through Johor Port and the Port of Tanjung Pelepas, its close integration with Singapore, and the infrastructure upgrades like the Johor Baru-Singapore Rapid Transit System Link.
Onn Hafiz expressed confidence in Johor’s future, citing the state’s ongoing infrastructure projects, skilled workforce, and strong support from the federal government as key enablers for sustained growth.
Source: NST
