18-7-2024 (KUALA LUMPUR) Malaysia has passed regulations that will enable an island within the development to be gazetted as a duty-free zone. This decision comes as part of broader efforts by the government to revive the ambitious endeavor.
On July 17th, the Lower House of Parliament approved five amendment Bills that will grant duty-free status to Pulau Satu, an island within the Forest City development, alongside the existing duty-free islands of Labuan, Langkawi, Tioman, and Pangkor. The law is now subject to the Senate’s approval, marking a crucial step forward in the revitalization process.
The move follows an announcement by Prime Minister Anwar Ibrahim in 2023, outlining plans to designate Forest City as a special financial zone, aimed at attracting investment and economic activity to the beleaguered project.
Furthermore, the government is reported to be in the final stages of negotiations with Singapore to develop a cross-border economic zone, which is likely to encompass the Forest City mega property project. This initiative is expected to boost trade and connectivity between Malaysia’s southern Johor state and the island nation, potentially injecting much-needed momentum into the stalled development.
Forest City, a mammoth US$100 billion (S$134 billion) megacity project by Chinese developer Country Garden Holdings, has faced numerous challenges since construction began a decade ago. The ambitious undertaking, which aims to create a sustainable, eco-friendly city, has struggled to gain traction amid concerns over its viability and impact on the local environment.
However, recent developments suggest a renewed commitment from Malaysian authorities to revive the project and unlock its potential. The country’s King, Sultan Ibrahim Iskandar, who hails from Johor, voiced his support for the initiative in December, stating his intention to push for the revival of the high-speed rail line between Kuala Lumpur and Singapore, with the route passing through the Forest City development.
