Malaysia Launches Tax Incentives for Forest City

Malaysia has launched the Forest City Special Financial Zone (FCSFZ) in Johor, introducing a series of attractive tax incentives aimed at revitalizing the $100 billion development project, which has faced delays and lackluster demand. The incentives include a zero per cent tax rate for family wealth offices, a concessionary corporate tax rate between zero and 5%, and a 15% individual income tax rate for knowledge workers. Second Finance Minister Amir Hamzah Azizan emphasized that these measures are designed to attract high-net-worth individuals and businesses, positioning Forest City as a potential financial hub akin to Shenzhen and Dubai. The initiative is part of a broader strategy by Prime Minister Anwar Ibrahim's administration to stimulate economic growth and capitalize on the project's proximity to Singapore. Johor state officials have expressed optimism that these incentives will draw more investments and enhance the region's economic landscape. The government aims to have the Single Family Office Scheme operational by the first quarter of 2025, responding to the growing trend of family offices in the region.