The announcement of the Forest City Special Financial Zone (FCSFZ) incentives is timely as Malaysia progresses and transforms into a high income and modern economy. The FCFSZ reinforces earlier initiatives such the Johor-Singapore Special Economic Zone (JSSEZ) and Johor Green Deal to strengthen Johor’s regional hub role, and complements the various roadmaps, blueprints and policies announced since last year, such as the New Industrial Master Plan (NIMP), National Energy Transition Roadmap (NETR) and National Semiconductor Strategy (NSS).
Johor is riding on the success of Malaysia’s economic and FDI growth, being one of the largest recipients of foreign and domestic investments in 2022 and 2023. Johor is a key beneficiary of the data centre boom and is slated to see RM17bn worth of new investments in data centres in 2024. Green developments in the state would be supported by demand for renewable energy both domestically and in ASEAN, particularly from Singapore.
Overall, the measures announced are expected to not only drive business activities but also generate significant employment opportunities and increase property demand. The potential economic integration from the JSSEZ will bring about multiplier effects and draw in long term sustainable investments.
Further focus should be on facilitating business and investors via efficiencies of public service, as well as talent retention, attraction and development. In this regard, the 15% flat individual income tax rate and fast-tracked immigration processes for knowledge workers employed in the FCSFZ would create a highly competitive environment for top-tier talent. This will strengthen the zone’s appeal and increase the pool of available skilled professionals which MNCs and local firms can draw upon. The current one-sided flow of Malaysian workers to Singapore may become more two-way and balanced, if more skilled Malaysians, Singaporeans and other foreign nationals choose to be based in the JSSEZ.
Maybank is committed to supporting Johor’s long-term success, and aims to be the preferred bank for Malaysia-Singapore transactions. We are actively engaging and connecting businesses and governments for mutual benefit of both nations.
Comments from Dato’ Khairussaleh Ramli, President & Group CEO of Maybank on FCSFZ and JSSEZ, in conjunction with Invest Malaysia Iskandar 2024