ISKANDAR PUTERI (Nov 27): 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 the 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.
Onn Hafiz made these remarks in response to a question from Fauziah Misri (Barisan Nasional-Penawar) regarding the status and development of the SFZ at the Johor State Legislative Assembly meeting in Kota Iskandar on Wednesday.
Onn Hafiz, who also serves as the Machap assemblyman, highlighted nine incentives for Pulau Satu, including a concessional corporate tax rate of between 0% and 5%, compared with the current rate of 24%.
Additionally, Pulau Satu will be the first location in the country to offer a 0% tax rate for family offices for 20 years.
For the mainland area, he outlined two key incentives: a 100% investment tax allowance for five years, reducing statutory income by up to 100% for the logistics service sector; and a 5% 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, had expressed interest in investing in the SFZ.
These include Malayan Banking Bhd (KL:MAYBANK), Public Bank Bhd (KL:PBBANK), United Overseas Bank (UOB), Credit Lyonnais Securities Asia (CLSA), and Tiong Nam Logistics Holdings Bhd (KL:TNLOGIS).
"The state government is fully committed to supporting the SFZ 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 (Pakatan Harapan-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-based baggage scanning machines and a facial recognition system.
On Aug 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.
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