KUALA LUMPUR: Malaysia announced on Friday tax breaks and incentives for the troubled Forest City development, a $100 billion project backed by Chinese developer Country Garden Holdings, in a bid to lure investments and spur economic growth in the area.
Forest City, a joint venture between the embattled Country Garden and a private Malaysian company backed by the country's king, has been beset by problems ranging from environmental to regulatory issues since its inception in 2016.
Malaysia designated Forest City, which is located in southern Johor state next to Singapore, was made a special financial zone in August 2023 to boost foreign investment and economic activities in the project.
Second Finance Minister Amir Hamzah Azizan said on Friday the incentives would include a concessionary corporate tax rate of between zero and 5%, and special individual income tax rates of 15% for skilled-workers and Malaysians working in the area.
In addition, Malaysia will offer a zero percent tax rate for family offices, as well as a special 5% tax rate for financial technology and foreign payment system operators, Amir said at an event in Forest City.
"These incentives are expected to attract businesses, financial institutions, and high-net-worth individuals," he said.
The announcement comes as Malaysia's King Sultan Ibrahim visits China to court further support for infrastructure developments in the Southeast Asian country.
Built on four reclaimed islands in Johor, Country Garden has so far invested about 20 billion ringgit ($240 million) in the project, Forest City said last year. - Reuters
