ISKANDAR PUTERI (June 12): The Forest City Special Financial Zone (SFZ) is expected to surpass its RM2 billion investment target for this year following an encouraging response since its establishment.
To date, the SFZ has received 260 cumulative investor enquiries through the Invest Malaysia Facilitation Centre-Johor (IMFC-J), of which 48 enquiries were logged between January and April this year, according to a press statement issued on Thursday.
The investor enquiries span financial institutions, business services and the single family offices sector, with 50% originating from the domestic market.
Invest Johor, the state government’s primary investment promotion agency, indicated that many investors are taking a medium- to long-term approach given the scale and strategic positioning of the SFZ within the larger Johor-Singapore Special Economic Zone (JS-SEZ).
"Based on previous official briefings, the IMFC-J has received more than 200 investor inquiries related to the Forest City SFZ since its launch. While not all inquiries have translated into confirmed investments at this stage, several companies are understood to be in advanced stages of negotiations and feasibility studies.
"The total potential investment value being discussed is estimated to involve several billion ringgit, particularly in sectors linked to financial services, digital economy, green technology and high-value services," said Invest Johor chief executive officer Natazha Harris in the statement.
Natazha pointed out that there is strong interest coming from financial services, digital economy-related industries, artificial intelligence (AI), data-driven businesses, family offices and green technology sectors, with an increasing interest from companies involved in fintech, wealth management, regional business services and smart city technologies.
"In addition, renewable energy, carbon management and sustainable urban development are also emerging as important sectors, especially as global investors place greater emphasis on ESG [Environmental, social and governance] considerations," he said.
Natazha said investors now appear to view Forest City within a broader strategic economic framework rather than solely as a real estate development project.
He added that both the federal and the Johor governments have strengthened credibility, particularly with the rollout of incentives, facilitation mechanisms and stronger Malaysia-Singapore economic cooperation.
"While challenges remain, the shift in narrative from property-centric development to a future-focused financial and digital economy hub is increasingly gaining traction among investors and industry players," he noted.
Invest Johor sees Forest City not as a direct competitor to Singapore, Dubai or Hong Kong, but rather as a complementary regional hub that offers a different value proposition.
"Forest City’s main strengths lie in its lower operational costs, strategic location within the Johor-Singapore economic corridor and access to talent and markets in both Malaysia and Singapore.
"The Forest City SFZ is also positioned to cater to companies seeking expansion space, regional operational centres and emerging digital economy opportunities," he explained.
Unlike mature financial hubs where operational costs are significantly higher, Natazha said the Forest City SFZ aims to provide a more cost-efficient environment for businesses while maintaining strong regional connectivity.
At the same time, Natazha said both Invest Johor and IMFC-J are working to address investor confidence through the introduction of clearer policy frameworks and streamlined incentive packages under the SFZ and JS-SEZ initiatives.