By NST Property/ Sharen Kaur - August 28, 2023
sharen@nst.com.my
KUALA LUMPUR: Johor, Malaysia's third-largest state and Singapore's closest neighbour, should create two special financial zones to encourage investment and economic growth, said Samuel Tan, executive director of KGV International Property Consultants Sdn Bhd.
Tan said a second special financial zone in Medini City can be established to provide a variety of services in addition to those offered in the Forest City special financial zone.
He said that establishing a second special economic zone in Medini City is a noble idea.
"Medini City has suffered from a lack of employment opportunities. A special economic zone in Medini City with many incentives will draw more people to the area. The vacant apartments will soon be quickly filled.
"New investments will find their way to Medini City. This would revitalise the city and rebalance growth in the Johor Bharu city centre, Medini City, and Forest City," he told NST Property.
Tan was responding to Prime Minister Datuk Seri Anwar Ibrahim's recent announcement that the federal government will establish a special financial zone in Iskandar Puteri's Forest City real development area.
Anwar offered certain incentives, such as permitting multiple entry visas, expedited entrance for individuals working in Singapore, and a 15 per cent flat income tax rate for knowledge workers.
He said that government incentives for companies operating in the special financial zone will cut the cost of doing business there and encourage growth in healthcare, education, and tourism.
Tan saw this statement as a "booster," as many people will see the Forest City project favourably.
Forest City is a US$100 billion property development in the Johor Straits that consists of four artificial islands on reclaimed land totaling 30 square kilometres.
By 2035, it hopes to house 700,000 people. It will comprise office skyscrapers, residential structures, shopping malls, hotels, and schools.
The project is a collaboration between the China-based Country Garden Group and Esplanade Danga 88 Sdn Bhd, a private firm supported by the Johor government and the Sultan of Johor.
Country Garden in China has been engaged in financial troubles in recent weeks, which does not bode well for their projects in Malaysia, particularly Forest City.
Tan believed that the status and incentives would attract a large number of investments to Forest City.
He said that the Forest City special financial zone can provide services such as family offices, back offices, and others.
Meanwhile, Tan told NST Property that having two special financial zones will bring economic growth and job opportunities to the Johor Bahru district's west and centre.
"The infrastructure is already in place, and it is simple to implement. The Iskandar bus rapid transit (BRT) system is already being designed to connect the Johor Bahru-Singapore rapid transit system (RTS) to various parts of the city.
"The next issue is connecting Forest City to Singapore. Will there be direct connectivity from the islands via smart access cards? If this can be accomplished, it will become a reality sooner than predicted.
"This will breathe new life into the project, providing relief to existing buyers and confidence to prospective buyers.
"The question is whether we should stop in Forest City. I believe there is a possibility of having a twin special financial zone or more in Johor Bahru," he said.
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