KUALA LUMPUR, Sept 24 — The establishment of the Forest City Special Financial Zone (SFZ) in Iskandar Puteri, Johor Bahru, marks a significant development that is expected to boost Johor’s economy, according to Iskandar Investment Bhd (IIB).

In a statement, the company said the introduction of the SFZ comes at a crucial time, as the state is poised to capitalise on its strategic location and expanding infrastructure, reinforcing its role as a vital financial and economic hub in Southeast Asia.

IIB president and chief executive officer Datuk Idzham Mohd Hashim said the Forest City SFZ is set to attract high-value investments through appealing incentives, including a concessionary corporate tax rate ranging from zero to five per cent, a flat income tax rate of 15 per cent for knowledge workers, and expedited immigration processes.

"We anticipate these benefits will make Johor a highly attractive destination for multinational corporations and global financial institutions, driving job creation and growth in sectors such as financial services, technology and logistics.

"The Forest City SFZ will be a game changer, fuelling sustainable economic development, fostering innovation and enhancing cross-border collaboration in the region,” he said.

IIB noted that the revival of Forest City through the SFZ is expected to catalyse Johor’s development trajectory. Its proximity to Singapore, one of the world’s foremost financial centres, strengthens its appeal to global investors and positions Johor as a key player in the regional economy.

The group views the SFZ as an exciting opportunity for Iskandar Puteri, given its close location to Forest City, making it ideally positioned to benefit from the economic spillover of this initiative.

"With our existing projects, such as Tech Medini and GBS Iskandar @ Medini, Iskandar Puteri is already thriving as a hub for technology and innovation.

"The Forest City SFZ would complement these efforts by attracting a new wave of businesses, increasing demand for high-quality commercial space, and driving further investments in infrastructure, thereby accelerating Iskandar Puteri’s transformation into a world-class business district and a centre for high-skilled jobs,” it said.

Additionally, IIB highlighted that Johor’s upcoming transport infrastructure projects—including the Rapid Transit System (RTS), Autonomous Rapid Transit (ART), and High-Speed Rail (HSR)—will enhance connectivity between the SFZ, Iskandar Puteri, and Singapore, further boosting Iskandar Puteri’s attractiveness to global investors and businesses.

"With enhanced connectivity and integration into broader regional initiatives, Johor can attract global players by offering strategic incentives and creating customised business environments.

"The SFZ can accelerate its own economic transformation, fostering innovation and driving sustainable growth for the region,” added IIB. — Bernama