Iskandar Puteri, Sep 20 (IANS): New incentives were unveiled on Friday at the launch of the Forest City Special Financial Zone to boost an integrated development project in Malaysia's Johor state.

Among these are a zero per cent tax rate for family wealth offices, a concessionary corporate tax rate between zero and 5 per cent and a special 15 per cent individual income tax rate for knowledge workers and Malaysians working there, Second Finance Minister Amir Hamzah Azizan said in his speech at the launch of the zone, Xinhua news agency reported.

Financial companies will also enjoy incentives that include special deductions on relocation costs, enhanced industrial building allowances and withholding tax exemptions, he said.

"Forest City with its combination of a duty-free island within a special financial zone, presents a unique proposition as a catalyst for economic development in the southern region of Malaysia, anchored on innovative financial services," he said.

"Through robust participation of local and international stakeholders, it has the potential to drive growth from Johor into the rest of the ASEAN region. It also has the potential to mature into a globally recognized financial hub, the likes of Shenzhen in China and Dubai International Financial Center in the United Arab Emirates," he added.

Located in Iskandar Puteri, the administrative capital of Johor state, Forest City, comprising four man-made islands spanning 30 square km once completed is jointly developed by China's property developer Country Garden and Esplanade Danga 88, a company owned by an agency of the Johor state government.

The creation of the zone was announced by Prime Minister Anwar Ibrahim on August 25, 2023, with an eye on taking advantage of the area's location right on the border with Singapore, allowing the two to complement each other in encouraging talent and investment inflows to spur regional economic development.