Unveiling the Forest City Special Financial Zone (Issue 1 of 2)
It is with great enthusiasm that we discuss the establishment of the Forest City Special Financial Zone (FCSFZ) in Malaysia. This significant development is not just a chapter in Malaysia’s financial evolution but a bold stride toward positioning the country as a key player on the international stage.
Malaysia has adapted to global trends and demonstrated a robust growth trajectory. The Malaysian ringgit has notably outperformed regional currencies, strengthening by 12.5% since February of the same year, and the domestic equity market has reached new heights with a market capitalization surpassing 2 trillion ringgits.
Strategic Economic Vision
The launch of FCSFZ is a pivotal element of the MADANI Economic Framework, aimed at propelling Malaysia to become a leading economy in Asia. Forest City, uniquely positioned as a duty-free island within a special financial zone, is set to drive economic development in Malaysia’s southern region and potentially throughout ASEAN.
The government has introduced a compelling package of incentives to establish Forest City as a magnet for international capital. These include a competitive corporate tax rate ranging from zero to five percent and a special individual income tax rate of 15% for knowledge workers and Malaysians working in the zone. Furthermore, Forest City will pioneer the 0% tax rate for Family Offices under the Single-Family Office Scheme, encouraging regional and Malaysian families to manage their wealth from Malaysia.
A Hub of Innovation and Opportunity
Forest City is envisioned to become a global hub for financial services, fintech, and foreign payment system operators, further supported by incentives. The zone is also expected to boost Malaysia’s shared services industry, which has already seen over 800 global business service centres registered under Malaysia Digital (MD).
Stay tune for the upcoming newsletter, we will share with you more on Forest City Special Financial Zone.
