Malaysia declares green development incentives for Forest City

Malaysia’s government has declared its Forest City low-carbon island development a duty-free zone with a range of corporate tax incentives for suitable companies and developers.

The sustainable city development is located off the coast of Johor in the south of the country and is a joint venture project by Hong Kong-listed Country Garden Holdings and Johor’s Esplanade Danga 88.

The city will enjoy duty-free zone privileges and tax incentives to encourage new investment.

In a statement, Prime Minister Dato’ Seri Najib Tun Razak in a statement “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.”

Najib officiated at the grand opening of the project on Sunday with Johor’s Sultan Ibrahim Sultan Iskandar.

Forest City covers 1,386-hectares of mixed-use development project comprising four man-made islands along the Johor Straits.

The project is worth around RM450 billion (S$169 billion) and is 60 per cent owned by Country Garden, a Chinese largest real estate developers, and 40 per cent by the Esplanade Danga 88, a holding largely owned by the Sultan of Johor.

Developers are planning a smart city with “lush vertical greenery covered with dense foliage” supported by energy efficient public transport and “sustainable and renewable energy infrastructures.”

Green developers and green development managers that qualify for the incentives will enjoy 100 per cent income tax exemption up to 2028.