Malaysia’s Forest City Aims to Become a Regional Wealth Hub
While the fundamentals are there, it is too early to tell if the zone could become a regional wealth centre.
Forest City as a Secondary Family Office (FO) Hub
MALAYSIA’S Forest City could be a secondary family office (FO) hub that complements Singapore’s FO scene given its strategic location and lower costs, industry watchers said.
Uncertainty Surrounding its Potential as a Wealth Hub
But they added that it is still too early to tell if it could truly become a wealth hub; more clarity on its tax incentives and legal frameworks is needed first.
Tax Incentives and Legal Frameworks in Focus
Last September, Malaysia announced tax incentives for FOs in the Forest City Special Financial Zone (SFZ) in Johor, aimed at revitalising the integrated development project that failed to take off.
Johor-Singapore Special Economic Zone (JS-SEZ)
The plans also contribute to the newly set up Johor-Singapore Special Economic Zone (JS-SEZ) – a partnership aimed at promoting economic growth and attracting investments in both countries.
Deloitte’s Take on the JS-SEZ
“The JS-SEZ is intended to enhance economic collaboration with Singapore, enhance cross-border connectivity, and foster a business-friendly environment,” said Lee Tiong Heng, Deloitte’s private FO leader for South-east Asia.
Conclusion
While Malaysia’s Forest City has the potential to become a secondary FO hub, it is still too early to tell if it can truly become a wealth hub. Clarity on tax incentives and legal frameworks is needed to achieve this goal.
FAQs
Q: What are the tax incentives for FOs in the Forest City Special Financial Zone (SFZ)?
A: Malaysia has announced tax incentives for FOs in the SFZ, aimed at revitalising the integrated development project.
Q: What is the purpose of the Johor-Singapore Special Economic Zone (JS-SEZ)?
A: The JS-SEZ is a partnership aimed at promoting economic growth and attracting investments in both Malaysia and Singapore.
Q: How does Deloitte view the JS-SEZ?
A: According to Lee Tiong Heng, Deloitte’s private FO leader for South-east Asia, the JS-SEZ is intended to enhance economic collaboration with Singapore, enhance cross-border connectivity, and foster a business-friendly environment.
