The Forest City Special Financial Zone (FCSFZ)

The Forest City Special Financial Zone (FCSFZ) is a duty-free zone in Malaysia designed to attract foreign investment and boost Johor's economy. Located on four man-made islands in the Straits of Johor, near Singapore, Forest City is part of the Johor-Singapore Special Economic Zone (SEZ) and designated as Flagship G. It focuses on financial services and high-value investments, targeting institutions like banks, family offices, and fintech companies, making it a hub for innovation-driven businesses.

Key Features and Benefits of the FCSFZ

Corporate Tax Incentives

Businesses in the zone enjoy reduced corporate tax rates between 0-5%, offering significant cost savings for companies across industries.

Talent-Friendly Tax Policies

Skilled knowledge workers are eligible for a flat personal income tax rate of 15%, making the zone a magnet for top global talent.

Exclusive Family Office Benefits

A 0% tax rate applies to family offices established in the zone, fostering a premier environment for wealth management and succession planning.

Support for Fintech and Payments

Fintech companies and foreign payment service providers benefit from a competitive 5% tax rate, encouraging the growth of financial technology innovation.

Specialized Incentives for Shared Services & Insurance

Businesses in these sectors receive tailored support to enhance operational efficiency and competitiveness.

Emerging Digital Payments Hub

The zone is strategically positioned to become a leading hub for digital payment solutions, driving innovation and adoption in the payments ecosystem.

Banking and Financial Sector Perks

Banking and Financial Sector Perks: Banks and insurance firms receive relocation support, regulatory exemptions, and tax breaks, making the zone an attractive location for financial institutions.

Streamlined Branch Expansion

Businesses benefit from simplified processes and regulatory perks for opening new branches, supporting seamless growth within the zone.

Facilitated Cross-Border Movement

Multiple-entry visas and priority fast-track entry for professionals commuting from Singapore ensure convenient and efficient access.

REQUIREMENTS

Comparison between SFZ and SEZ

Aspect	SFZ (Special Financial Zone)	SEZ (Special Economic Zone)
Purpose	Focuses on attracting financial institutions, fintech firms, and wealth management services.	Designed to boost trade, manufacturing, logistics, and industrial development.
Primary Target Industries	Financial services, fintech, payment providers, family offices, and digital banking.	Manufacturing, logistics, technology, services, and cross-border trade.
Tax Incentives	Tailored for financial sector players, including: 0% tax for family offices 5% tax for fintech and payment providers 15% personal income tax for skilled workers.	Broad-based tax incentives for businesses, including: Reduced corporate tax rates (0-5%) Customs exemptions for trade and manufacturing.
Connectivity	Proximity to financial hubs like Singapore, focusing on global banking and financial integration.	Emphasizes connectivity to regional and global trade routes through ports, highways, and logistics hubs.
Infrastructure Focus	High-end office spaces, digital infrastructure, and smart city technologies to support financial services.	Industrial parks, trade zones, warehouses, and manufacturing facilities.
Key Benefits for Investors	Tailored regulatory frameworks for financial services. Simplified processes for setting up family offices and fintech operations. ESG-aligned development for sustainability-conscious investors.	Competitive operational costs for manufacturing and logistics. Seamless trade processes and customs facilitation. Access to cross-border collaboration with Singapore.

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