Malaysia offers tax breaks, incentives to attract investment in $100B Forest City megaproject

By VNA September 24, 2024 | 07:03 pm PT

A view of Kuala Lumpur's skyline in Malaysia, May 30, 2023. Photo by Reuters

Malaysia has announced incentives and tax breaks for the Forest City Special Financial Zone, a US$100 billion mega project in the southern state of Johor, to attract investors.

Forest City will be the first location in Malaysia to offer a 0% tax rate for family offices, said Second Finance Minister Datuk Seri Amir Hamzah Azizan, as reported by Malaysian newspaper The Star.

The official said the tax break was part of a competitive package of incentives to make the megaproject a magnet for international capital, which also includes a concessionary corporate tax rate of 0-5% and a special individual income tax rate of 15% for skilled workers and Malaysians who choose to work there.

Spanning nearly 30 hectares, Forest City aims to house 700,000 residents. Malaysian Prime Minister Anwar Ibrahim officially announced the project on Aug. 25 last year, highlighting its location near the border with Singapore. The project is intended to help the countries complement each other in attracting talent and investment flows, thus boosting regional economic development.