Forest City's SFZ To Focus On Banking And Logistics - MB

ISKANDAR PUTERI, Nov 27 (Bernama) -- Forest City's Special Financial Zone (SFZ) will prioritise two key sectors: banking and financial services, alongside logistics services, global service centres, and transfer services.

Johor Menteri Besar Datuk Onn Hafiz Ghazi stated that services for the first sector will be provided in Pulau Satu, Forest City, while the second sector will be developed in the mainland area of Forest City.

"Forest City benefits from the unique advantage of being a duty-free island within the SFZ. It includes two areas—Pulau Satu and the mainland area—each offering conditional incentives tailored to specific sectors," he said.

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Onn Hafiz made these remarks in response to a question from Fauziah Misri (BN-Penawar) regarding the status and development of the SFZ at the Johor State Legislative Assembly meeting in Kota Iskandar today.

Onn Hafiz, who also serves as a member of the Machap State Legislative Assembly, highlighted nine incentives for Pulau Satu, including a concessional corporate tax rate of between zero per cent and five per cent, compared to the current rate of 24 per cent. 

Additionally, Pulau Satu will be the first location in the country to offer a zero per cent tax rate for Family Offices for 20 years.

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For the mainland area, he outlined two key incentives: a 100 per cent investment tax allowance for five years, reducing statutory income by up to 100 per cent for the logistics service sector; and a five per cent tax rate for up to 20 years for global service centres and transfer services.

Onn Hafiz also noted that several local and international financial institutions, as well as logistics industry players, have expressed interest in investing in SFZ Forest City. 

These include Malayan Banking Bhd, Public Bank Bhd, United Overseas Bank, Credit Lyonnais Securities Asia and Tiong Nam Logistics Holdings Bhd.

"The state government is fully committed to supporting the SFZ Forest City initiative, as it will significantly benefit Johor's economic growth and provide high-income job opportunities for the people," he said.

In response to a question from Chiong Sen Sern (PH-Bukit Batu) regarding measures to prevent counterfeit products from entering the SFZ's logistics sector, Onn Hafiz outlined several strategies.

These include the establishment of a new Customs Complex in Forest City, equipped with advanced technologies such as artificial intelligence (AI)-based baggage scanning machines and facial recognition systems.

On August 25, 2023, Prime Minister Datuk Seri Anwar Ibrahim announced the formation of the SFZ in Forest City, along with several incentives designed to stimulate economic activity in Johor and its surrounding areas.

-- BERNAMA