32 firms queue up for Forest City's billion-ringgit financial zone
ISKANDAR PUTERI: Forest City is fast becoming a magnet for regional investment, with 32 companies expressing interest in setting up operations in its newly minted Special Financial Zone (SFZ), a key component of the Johor-Singapore Special Economic Zone (JS-SEZ).
Of the 32, at least 19 are looking to establish family offices, with interest pouring in from Malaysia, Singapore and Thailand.
Two companies namely CMY Capital and Yow Kee Family Office have secured approvals from the Securities Commission Malaysia (SC), marking them as pioneers in the zone.
Johor Investment, Trade, Consumer Affairs, and Human Resources Committee chairman, Lee Ting Han said the momentum showed that Forest City was firmly on track of becoming a financial services powerhouse.
"All agencies are actively driving investor interest, and we are seeing the results. The government's game plan is working," he said, in a statement today.
Lee said CMY Capital and Yow Kee Family Office's entry had set a precedent for others to follow, creating a "demonstration effect" expected to attract a wave of family offices and financial institutions by year-end.
Incentives under the SFZ include a zero per cent corporate tax for family offices with a zero to five per cent corporate tax range and a flat 15 per cent income tax rate for knowledge-based workers.
The Finance Ministry is working to legally enshrine the packages, with current applications handled on a case-by-case basis to fast-track approvals.
Lee said more than 250 investor inquiries have been received since January by the Invest Malaysia Facilitation Centre Johor (IMFCJ), the state's newly launched one-stop hub for investors.
"The IMFCJ assigns dedicated account managers to assist with regulatory procedures, local authorities, utilities and federal agency dealings, to streamline what the process," he added.
Forest City's momentum also gained traction following Chinese President Xi Jinping's recent visit, which culminated in a landmark Malaysia-China visa waiver agreement and renewed bilateral economic cooperation.
In a Facebook post on April 16, His Majesty Sultan Ibrahim, King of Malaysia, highlighted the potential of Forest City under this enhanced regional connectivity.
"There is great potential for Chinese companies and investors to explore opportunities in Malaysia, as it aligns with regional connectivity high-quality development under China's Belt and Road Initiative.
"With strong strategic incentives and a favourable location, the Forest City SFZ within the JS-SEZ has emerged as one of the region's prime investment destinations," Sultan Ibrahim posted.
Lee said engagement with anchor investors was ongoing, with the government ready to offer pre-packaged, tailored incentives to suit strategic investment needs.
"With strategic location, investor-friendly incentives and political support, Forest City is emerging as Southeast Asia's next frontier for high-value financial investments," he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
3 hours ago
- The Star
Feature: Emerging Chinese-built harbor links past, present and future in Tanzania
by Xinhua writer Hua Hongli DAR ES SALAAM, June 9 (Xinhua) -- A gentle sea breeze stirs the trees on a quiet island off the southeastern coast of Tanzania. Here lie the ruins of Kilwa Kisiwani, once a bustling port on the Indian Ocean trade route, where ships loaded with gold, spices, and porcelain gathered in significant numbers. Now, just across the water, another port is taking shape. The Kilwa Fishing Harbor, dubbed a "port of the future," is rising with ambition. A 315-meter-long jetty extends into the ocean like a steel arm. Nearby, construction is in full swing on cold storage facilities, a trading market, office buildings, and a sewage treatment plant. This new harbor is expected to anchor Tanzania's blue economy for years to come. Historical records show that Chinese navigator Zheng He led massive fleets during the Ming Dynasty (1368-1644 AD) on seven expeditions to the Indian Ocean, reaching as far as East Africa and the Red Sea. "Many pieces of Chinese porcelain have been unearthed at the Kilwa Kisiwani site. It shows how long the friendship between Tanzania and China has existed," said Shomari Rajabu Shomari, historical curator of the National Museum of Tanzania. "Six hundred years ago, the Chinese came in peace to trade. Now, six hundred years later, they are helping us build a port that leads to prosperity," he told Xinhua in an interview, pointing to an old chart of a 15th-century Chinese fleet. The project, constructed by China Harbor Engineering Company Ltd (CHEC), a leading Chinese construction company, is Tanzania's first modern large-scale fishing harbor. Covering about 5.6 hectares, it is designed to handle 60,000 tonnes of fish annually and can dock deep-sea fishing vessels, according to Chen Zhifeng, vice project manager of the CHEC Tanzania maritime project department. The project is expected to be completed in September. Tanzanian President Samia Suluhu Hassan attended the groundbreaking ceremony in 2023, emphasizing its significance to the national economy and people's livelihoods. Tanzania boasts abundant marine resources, and the waters around the Kilwa District lie along the migration route of tuna. Yet, for years, the lack of modern fishing facilities has forced local fishermen to maneuver small boats close to the shore. Without proper cold storage, their catch spoils easily, resulting in unstable incomes. The fishermen's hardship mirrors a major bottleneck hindering Tanzania's development of a blue economy. While the East African country has an extensive coastline, its deep-sea fishing capacity remains limited. "Once completed, the cold storage and trading facilities will solve the preservation problem. Fishermen won't have to worry about unsold catch, and deep-sea fishing will be viable," said Chen. At the construction site, nearly 600 direct jobs have been created, including skilled roles like welders, crane operators, and excavator drivers. "Each Chinese engineer mentors a dozen or so Tanzanian workers, occasionally entrusting them with independent operation. This approach to training has enhanced the practical skills of local workers," said Edwin Christopher, the project's human resources and administration manager. "We believe that after the project, these trained workers will be capable of holding jobs in related sectors." The Chinese company is committed to sustainability as well. For the surrounding mangroves, they have established protective boundaries where machinery is prohibited. An environmental team conducts monthly beach cleanups to remove marine waste. Additionally, to ensure visitor experience and safety at the ruins of Kilwa Kisiwani, a boarding ladder was relocated away from the construction zone. On a sightseeing boat, local guide Daudi Gideon gazed at the emerging fishing harbor, his eyes glittering with anticipation. "When visitors come to see Kilwa Kisiwani, they will also see this remarkable new port. Once it's completed, more people will come to learn about our history and witness our new chapter," he envisioned.
Free Malaysia Today
3 hours ago
- Free Malaysia Today
EAIC finds weaknesses in customs declaration process
The Enforcement Agency Integrity Commission recommended improvements for the customs department to enhance oversight and ensure stricter compliance with the Customs Standing Orders. (Facebook pic) PUTRAJAYA : The Enforcement Agency Integrity Commission (EAIC) has identified weaknesses in the approval process for customs declaration forms to clear imported goods. In a statement today, the EAIC said its investigation also found that some importers and customs agents had made declarations without adhering to the provisions in the Customs Standing Orders. 'The EAIC received complaints against the customs department, alleging a failure to revoke the licences of importers and agents who violated the Customs Standing Orders. Investigations were conducted under Subsection 27(4) of the EAIC Act 2009,' the statement said. As a result, the EAIC has recommended improvements for the customs department to enhance oversight and ensure stricter compliance with the Customs Standing Orders by importers and customs agents. The commission also urged the customs department to take firm action against any party found to be in breach of these regulations.
Free Malaysia Today
3 hours ago
- Free Malaysia Today
View revised SST in broader fiscal context, tax expert tells M'sians
Basic necessities will continue to be exempted from sales tax, but a 5-10% rate will be imposed on non-essential items. KUALA LUMPUR : The revision of sales tax rates and the expansion of the service tax scope form part of targeted fiscal measures to keep the nation's finances on a sustainable path, say tax experts. PwC Malaysia tax leader Steve Chia said the review of the sales and service tax (SST) was expected, having been announced in the 2025 budget last October, and urged the public to view it in a broader fiscal context. 'While it is aimed at supporting the medium-term fiscal goals, a search for a longer-term solution remains necessary to ensure sustainable revenue contributions for the country. 'Although the current expansion is relatively broader, the government is committed to containing the scope to selected and non-essential goods and business-to-business (B2B) services to ensure the rakyat will not be burdened,' he told Bernama. Finance minister II Amir Hamzah Azizan had announced that the government would implement the revised SST from July 1 to strengthen the country's fiscal position and improve support for public welfare. Chia said a key challenge would be ensuring cascading costs are either eliminated or not passed along the value chain. 'Since the budget was announced, the government has made efforts to engage the relevant stakeholders, including industry associations and tax professionals, to ensure the revisions are well-informed and the impact on industries are taken into consideration. 'Therefore, the change is aimed at strengthening Malaysia's fiscal position by increasing revenue and broadening the tax base. 'We can see that the government is careful in identifying areas for rate increases and scope expansion to protect and cushion the impact on the rakyat at large.' KPMG Malaysia's head of tax Soh Lian Seng however said the current SST framework is often viewed as less comprehensive than the previous goods and services tax (GST) scheme. 'This revision appears to be an effort to make the tax structure more progressive, broadening the base while ensuring the burden does not disproportionately fall on the rakyat. 'Expanding the scope of taxable services and revising rates can help improve revenue collection, which is essential for Malaysia's medium-term fiscal consolidation,' he said. Soh said the government is likely aiming to enhance fairness and efficiency in tax collection by refining the scope and structure of the SST. Soh said there may be a short-term spike in consumer spending as people rush to make purchases before the new rates take effect, similar to what was observed in 2015 ahead of the GST's implementation. 'However, this is likely to normalise within the next few months. In regard to concerns about inflation, the impact should be modest. 'While there are exemptions and reliefs in place to cushion the impact, the net effect should still contribute positively to government coffers, supporting broader fiscal sustainability,' he added.
