Place in ASEAN
Forest City is located in the heart of ASEAN, currently the world’s seventh largest economic bloc as its GDP -which has been steadily growing – reached US$2.5 trillion in 2016. With a population of 600 million which exceeds that of European Union or North America, ASEAN presents a massive market opportunity. In addition, ASEAN has the world’s third-largest young population after China and India: approximately 60% of its total population is under 35 years old.
The region also boasts a growing middle class, with a consumption power projected to grow from US$1.5 trillion in 2015 to US$2 trillion in 2020, which will exceed that of India and potentially even China’s coastal region. The ever-growing population and the resulting expansion of consumption needs will trigger massive demands for infrastructure, creating new markets and opportunities for businesses.
The Iskandar Edge
Forest City is at the most advantageous location within the Iskandar special economic zone (SEZ). Located at the southern-most tip of Peninsular Malaysia and next to Singapore, Iskandar SEZ was established under the Economic Transformation Plan of the Malaysian government in 2006. With the size of three Singapores, Iskandar SEZ is the only SEZ invested by both Singapore and Malaysia governments with US$90 billion. Iskandar SEZ has arisen as the new focal point for global capital investment and Malaysia’s fastest-growing economic corridor, blessed with abundant natural resources, attractive government incentives, and the strategic location to capture the entire ASEAN market.
To establish itself as Malaysia’s centre of tourism, creative, information technology, and logistics, Iskandar SEZ has been actively courting foreign investment. Iskandar SEZ will invest US$100 billion to build a world-class economic development infrastructure. The SEZ already boasts various educational, recreational and retail facilities including EduCity, Legoland, Hello Kitty land, Angry Bird club, Medini shopping center, hotels under the Shangri-La group, Pinewoods Studio, MMU Film and Art School. Conglomerates such as Temasek Holdings, Alibaba, Xiaomi, Maersk Line and Columbia Hospital have also been established their presence in Iskandar, while Sunway group plans to build two more theme parks. The total GDP of Iskandar SEZ will exceed US$93.3 billion in 2025. Forest City is well-placed and well-poised to be an integral part of this broader growth trajectory.
Forest City strives to form a symbiotic relationship with Singapore. With close proximity to Singapore and abundant incentives offered by both governments in Singapore and Malaysia, the Iskandar Special Economic Zone has easily become the best destination for Singapore-based corporates pressed to expand. Since its establishment, Iskandar has attracted a total investment of more than US$3 billion from Singapore. Singapore-based companies expanding or relocating to Iskandar are entitled to enjoy incentives offered by Singapore government agency – International Enterprise (IE) Singapore – including: Internationalization Finance Scheme, Loan Insurance Scheme and Trade Credit Insurance Scheme, and Political Risk Insurance Scheme, just to name a few.
MALAYSIA & ISKANDAR
- With Malaysia’s rapid development, Johor Iskandar stands as the new focus of major international capital investment of the world.
- Since Iskandar was established in 2006, it has become Malaysia’s fastest growing economic corridor. Under the 11th Malaysia plan (2016-2020), Johor Bahru has been identified as one of the growth catalyst cities.
- The Malaysia government will construct a data center at Sedenak, Iskandar to establish a world-class data hub and form a network termed “iron-triangle” communication industry with Cyberjaya and Singapore.
- Iskandar’s rapid economic growth will boost employment, housing and consumer demand
- Together with the 2020 oversea studying plan, demand for real estate will rise, hence the potential of the market in Iskandar should not be underestimated.
SINGAPORE & ISKANDAR
- Singapore has limited land area for development. In line with economic globalization, Singapore’s Economic Development Board encourages multinational companies to consider Malaysia Iskandar as a supplementary zone to support economic development.
- Singapore companies relocating to Iskandar can enjoy benefits from IE Singapore, including internationalization Finance Scheme, Loan Insurance Scheme, Trade Credit Insurance Scheme and the Political Risk Insurance Scheme.
- For Singapore corporations to relocate, there are 3 attractions in Iskandar:
- Great geographical advantages. Low relocation cost.
- Low operating cost: the land cost is only one-third of Singapore’s.
- Enterprises in Iskandar zone are able to enjoy incentives provided by the Malaysia government, preferential rent and tax exemption for 10 years, low labor cost equals to only one-half of Singapore.
Forest City Location
Its superior location is a key factor enabling Forest City to attract a number of outstanding strategic partners in such a short time. Forest City will contribute significantly to the region’s economic growth through attracting spillover industrial opportunities from Singapore. Being a special economic zone within the Iskandar special economic zone, FOrest City is the gateway connecting Singapore and Malaysia. It is easily accessible via land and water, being only 2km from Singapore and adjacent to the Tuas Second Link between Malaysia and Singapore. As a free trade port, the Malaysian government has granted in-principle approval for an exclusive Custom Immigration Quarantine inside Forest City. It is also only a 10km drive from Port of Tanjung Pelepas, Malaysia’s biggest container port handling the highest volume. Forest City’s proximity to Singapore means that investors can enjoy Malaysia’s lower business operation costs while expanding their businesses by talking advantage of the platforms provided by Singapore. Residents can also enjoy Singapore’s metropolitan lifestyle at Malaysia’s lower costs.