JOHOR BARU, July 31 — Forest City here will enjoy improved tourism and property demand once its Pulau Satu officially becomes a duty-free island, said industry experts.
Johor Real Estate and Housing Developers’ Association (Rehda) chairman Lindy Tan said the status would have a ripple effect on Forest City and the entire state’s economy.
“An influx of more businesses and an active market will boost tourism, commerce, increasing market cash flow and creating job opportunities.
“The real estate market will also benefit indirectly, welcoming more development opportunities,” Tan told Malay Mail recently.
Earlier this month, Dewan Rakyat passed the Customs (Amendment) Bill 2024, Excise (Amendment) Bill 2024, Free Zones (Amendment) Bill 2024, Sales Tax (Amendment) Bill 2024, and Service Tax (Amendment) Bill 2024 that jointly make Pulau Satu a duty-free island.
While it is already a duty-free zone, the enhanced status would give Pulau Satu further economic and tax advantages that could drive investment in the surrounding area.
Tan, who is also property developer BCB Berhad executive director, said the development would complement the Johor-Singapore Special Economic Zone (JS-SEZ) and Special Financial Zone (SFZ).
In combination, all three would have a synergistic effect on the state in terms of tourism, investment, and commerce.
“The effect of Forest City’s duty-free island status is expected to be greater than that of the other duty-free islands in the country,” she said, in reference to the other duty-free islands of Labuan, Langkawi, Tioman and Pangkor.
KGV International Property Consultants Sdn Bhd executive director Samuel Tan told Malay Mail the announcement would also bring intangible benefits to Forest City.
He said the Bills would streamline the duty-free status for Pulau Satu and improve its popularity as a shopping destination.
“With improved business, there will be more employment opportunities.
“At the same time, more shops will open turning Forest City into a vibrant destination,” he said.
Since 2016, Forest City has featured several floors of duty-free shopping outlets to boost its popularity.
South Johor SME Association adviser Teh Kee Sin said the decision was timely, adding that his group’s members were excited over the development.
“Besides traders, support services such as food and beverage (F&B), hospitality, construction, raw materials, transportation, consumer goods and other related industries will also increase in tandem.”
The goods exempted from tax on Pulau Satu will be liquor, chocolates, cosmetics, and perfume.
Forest City is China-based developer Country Garden Holding’s most ambitious overseas project, with a goal of housing 700,000 people on four reclaimed islands by 2035.
Country Garden Pacificview, Forest City's master developer, is 60 per cent owned by Country Garden and 40 per cent owned by Esplanade Danga 88, a private Malaysian corporation.
