JOHOR BARU, July 19 — Johor’s Forest City is set for a major boost as one of its four designated islands will become duty-free as part of efforts to drive attention to the mega project.

At the latest parliamentary meeting, federal lawmakers voted through five amendment Bills tabled to grant the island duty-free status.

Here is a primer on the island.

What is Pulau Satu?

Forest City, a mega project by Chinese developer Country Garden Holdings, started construction at the end of 2013.

Pulau Satu, a 700-acre artificial island, is the most developed out of the four being made there and makes up about 15 per cent of the US$100 billion project.

It currently houses Forest City’s sales gallery, retail space, Marina Hotel, Wedding Square, commercial units, duty-free shops, an international school, and a small office/home office (SOHO) tower offering co-working space.

Pulau Satu also features recreational facilities such as a waterpark, beach bar, a beach activity area, and an integrated transportation hub.

From zone to island

Pulau Satu was previously designated as a duty-free zone in 2016.

However, the amendments will make it a duty-free island with special tax provisions, similar to Labuan, Langkawi, Tioman, and Pangkor.

Pulau Satu will also no longer be part of the principal customs area and will have fewer restrictions for tax permits and applications for the sale of duty-free goods.

Part of a larger plan

Last month, Johor Menteri Besar Datuk Onn Hafiz Ghazi said incentives for the Special Financial Zone (SFZ) in Forest City should be finalised in August.

In August last year, Prime Minister Datuk Seri Anwar Ibrahim announced that the government had designated Forest City as a SFZ to spur the economy in Iskandar Malaysia that makes up most of south Johor.

Forest City, which covers 14 square kilometres of reclaimed land on four artificial islands near the border of Malaysia and Singapore, has to date sold more than 20,000 units.

The development, which comprises eight phases, and touted as a mega project, includes residential, leisure, commercial and industrial spaces.

The majority of the property owners are from Singapore, Malaysia, and China.

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