Forest City granted duty-free zone status and corporate incentives to lure investors and tourists (March 6 2016)
Other sweeteners include corporate tax incentive for qualified companies or companies with Iskandar Development Region status involved in tourism and MICE, education and healthcare
Corporate tax incentive for Green Developers and Green Development Manager
No restrictions on company equity for foreign investors to claim corporate incentives
In announcing the incentives today at the grand opening ceremony of Forest City, Prime Minister Dato’ Seri Najib Tun Razak said, “To ensure the success of Forest City, I am pleased to declare duty free zone area at Forest City, enabling local residents, businesses and tourists to benefit from the work, live and play environment.” Other incentives that were announced include corporate tax incentive for qualified companies or companies with Iskandar Development Region status involved in tourism and MICE, education and healthcare, corporate tax incentive for Green Developer and Green Development Manager and a waiver on company equity restriction for foreign investors to claim these incentives. By 2035, Forest City is expected to create 220,000 jobs for Malaysians in the finance and e-commerce sectors.
His Royal Highness Sultan Ibrahim Ibni Almarhum Sultan Iskandar, the Sultan of Johor, Chief Minister of Johor Y.A.B Dato’ Mohamed Khaled Nordin and several distinguished guests and business partners graced the event.
Being a green development, Forest City is also working with G-Energy, an international green consultant, towards achieving internationally-recognised GreenRE and Green Mark certifications.
In addition, Forest City has also achieved Iskandar Development Region (IDR) status development for tourism and MICE (meeting, incentives, conference and exhibition), education and healthcare sectors. The IDR status currently grants a five-year tax exemption or 100% investment tax allowance of the capital expenditure against 100% of statutory income.
Forest City has already signed several MoUs with globally renowned partners including Shattuck St. Mary’s School and UIW/Christus, the fourth largest medical group in the US, to collaborate on international schooling and to provide residents with world-class medical services.
Mr Mo Bin [莫斌], Chief Executive Officer of Country Garden Holdings, said: “With Forest City gazetted as a duty-free zone, it has boosted Forest City’s position as an international destination and put Iskandar Johor on the world map. It is also in line with our vision to enhance the prosperity of Forest City to upgrade the infrastructure within the region with the available incentives to help create a vibrant city.”
Among the upcoming amenities, the first duty-free shopping mall will be ready to welcome shoppers by end-2016 at the Fisherman’s Wharf on Island 1 of Forest City, which will carry a wide range of leading international brands and products. Another attraction will be a five star boutique hotel.
Under the Island 1 of Forest City, condominiums and high-rise coastal residences are now open to public preview and booking in Singapore, China and Malaysia. These condo units and high-rise coastal residences are exceptionally designed and are situated within leafy foliage corridors and car-free avenues with gated security. These contemporary-styled apartment ranges from 517 sq ft to 1,862 sq ft in size.
Datuk Md. Othman Haji Yusof, Executive Director of Country Garden Pacificview, said in his opening remarks: “This is a historic occasion not only for Country Garden, but also Malaysia, and most importantly for Iskandar and local people. We are confident that Forest City project will immensely benefit our local economy, creating jobs and new business opportunities for all.”
Forest Cityis Country Garden’s largest real estate project outside China, which bodes well with the Group’s internationalisation strategy to expand businesses overseas. The Group has also completed residential projects in Australia and Malaysia and is aiming to launch real estate projects in Indonesia and Vietnam in the near future. Recognised by the Guangdong provincial government as one of the top developers in China, the Group has delivered quality homes for more than three million residents globally since its inception in 1992. The Group currently has more than 300 projects globally.
About Country Garden
Founded in 1992 and listed on the Hong Kong Stock Exchange in 2007, Country Garden is the world’s second largest developer by floor area delivered. The Group’s sales revenue exceeded USD20 billion in 2015. Country Garden is actively expanding its presence outside of China, with ongoing projects in Malaysia, Australia, US, Canada. The Group is currently developing more than 300 high quality real estate projects globally. The Group’s first overseas project — Country Garden Danga Bay in Malaysia, garnered USD1.6 billion in sales during its opening launch, which clinched the Asia-Pacific Real Estate Award in 2014.
About Country Garden Pacificview Sdn Bhd
Country Garden Pacificview Sdn Bhd (CGPV) is the master developer of Forest City. CGPV is a joint venture between Country Garden Holdings and Esplanade Danga 88 Sdn Bhd (EDSB), a company partially owned by Kumpulan Prasarana Rakyat Johor (KPRJ).
About Forest City
Forest City is a 14km2 mixed-use development located at Iskandar Malaysia. Adjacent to the Malaysia–Singapore Second Link, it is a joint venture development between Country Garden and Esplanade Danga 88. With a committed investment of approximately RM170 billion, it is composed of four man-made islands with the twin themes of ‘integrating businesses and the city’ as well as ‘urban innovation’. The project aims to generate economic growth through eight key industries – tourism & MICE, healthcare, education and training, regional headquarters, near-shore finance, e-commerce service base in ASEAN, application of emerging technique and service centre, and sectors related to a green and smart city.
