KUALA LUMPUR (July 17): The lower house of Parliament on Wednesday gave its green light to five amendment bills, paving the way for Pulau 1, Forest City, in Iskandar Puteri, Johor, to become a duty-free zone, joining the ranks of Labuan, Langkawi, Tioman, and Pangkor.

The Customs (Amendment) Bill, Excise (Amendment) Bill, Free Zones (Amendment) Bill, Sales Tax (Amendment) Bill, and Service Tax (Amendment) Bill were approved via a majority vote after being presented for the second and third readings by Deputy Finance Minister Lim Hui Ying.

Lim said the Customs (Amendment) Bill aims to promote Pulau 1, which is situated in the Mukim of Tanjung Kupang, District of Johor Bahru, and to enhance economic growth within the area by introducing special tax provisions specific to the area.

With the amendment, Pulau 1 will no longer be part of the principal customs area, similar to Labuan, Langkawi, Tioman, and Pangkor.

Consequently, the amendment to Section 2 of the Free Zones (Amendment) Bill will also designate Pulau 1 as a free zone.

During the debate on the Customs (Amendment) Bill, Hassan Abdul Karim (PKR-Pasir Gudang) said the move could revive Forest City, boosting the property market and local economy, and shedding its "ghost city" label.

However, he questioned whether Forest City, a massive land reclamation project, can be defined as an "island" like Pangkor, Tioman, and Langkawi.

Hassan also called on the National Land Council, the federal government, and the Johor state government to address the issue of freehold status for properties in Forest City, particularly those purchased by foreigners.

He noted that properties in Forest City, including those purchased by foreigners, are granted freehold status, indicating indefinite ownership. In contrast, Malaysians purchase properties that are leasehold, expiring after a maximum of 90 years, which he said was unfair.

In her winding-up speech, Lim responded that the matter was not under the purview of the Finance Ministry. Nevertheless, she pledged to convey this perspective to the relevant parties, particularly the Johor government.

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