The government has announced a slew of tax incentives for the Forest City Special Financial Zone or SFZ, and the move, considered by industry players, is set to boost Johor’s economic outlook by many times over.

The Forest City project, which was a good idea to begin with, unfortunately did not take off and the development has since suffered from a poor image with a number of property analysts comparing it to a ghost town.

However, all this is set to change with the incentive packages that the government has for Forest City such as the family office sector, as well as fintech or financial technology, shared services and digitalization.

Other incentives accorded to Forest City include a tax regime starting from 0 percent but at present there are no details of the criteria to qualify for this as the legal framework is only now being drafted.

A special income tax rate of 15 percent is being dangled as a carrot to attract knowledge workers to Forest City and the upskilling and reskilling of local talent is important as part of the strategy to retain talent.

Stakeholders are also being urged to ensure that the Forest City SFZ offers an environment that is safe, convenient and efficient in carrying out work and to include the major players of the Johor Singapore Special Economic Zone.

-THE MALAYSIA VOICE