Congress approves five bills to make Forest City a tax-free zone

Once it is approved by the Senate and the relevant laws are amended, Forest City will join the islands of Labuan, Langkawi, Tioman and Pangkor.

(FMT) – The Dewan Rakyat has approved five bills to designate the 770-acre Forest City property development in Iskandar Puteri, Johor, as a duty-free zone.

The five bills, which involve amendments to customs, excise, free zone, sales and services tax laws, were passed by voice vote.

Once it obtains Senate approval and the relevant laws are amended, Forest City will join the ranks of duty-free islands such as Labuan, Langkawi, Tioman Island and Pangkor Island.

Deputy Finance Minister Lim Hui Eng today proposed the second and third readings of amendments to implement special taxation provisions for the developed islands, namely Pulau 1.

She said existing laws governing other duty-free islands also apply to Forest City, including requiring visitors to stay on the island for at least two days to be eligible to buy duty-free products.

Chocolates, cosmetics, alcohol and perfume will be duty-free, Lin added.

She also said the bills are aimed at promoting trade, attracting investments and stimulating economic activities in the area, as part of Putrajaya’s plan to establish a special financial district in Forest City to boost investment and economic growth in Johor.

During the debate on the five bills, Pakatan Harapan MP for Pasir Gudang Hassan Karim expressed concern about foreign property buyers in Forest City and advocated for a 90-year lease instead of freehold ownership.

However, Lim Guan Eng said in his concluding speech that such a proposal should be made to the Johor state government, which has the power to manage the land.

Meanwhile, PN-Pengkalan Chepa’s Marzuk Shaary said Forest City’s expensive properties were still beyond the affordability of locals.

Ms. Lin responded that 73% of the properties have been sold, of which 70% of the owners are Chinese, 20% are other foreigners and 10% are locals. She said the current population of the island is 9,589, of which 70% are locals.

Meanwhile, Pakatan Harapan Tebrau MP Jimmy Puah suggested expanding the list of duty-free goods to include electronic products and other popular items to encourage Singaporeans to buy more.

He also proposed shortening the 48-hour stay requirement to just one night to gain an edge over the island nations.