SINGAPORE: A 770-acre archipelago in Johor’s besieged Forest City may actually be a duty-free area, which will see it like special tax provisions to increase economic growth in the area.  ,
This comes after Malaysia approved five Bills on Wednesday ( Jul 17 ) for the island of Pulau Satu, which is a part of the blighted US$ 100 billion development.  ,
The bills include changes to sales and service revenue laws, taxation, which the government levies on the purchase of a particular good or service, and other laws. They were approved by Deputy Finance Minister Lim Hui Ying for a second reading and passed in a voice vote.  ,
They are the Customs ( Amendment ) Bill 2024, Excise ( Amendment ) Bill 2024, Free Zones ( Amendment ) Bill 2024, Sales Tax ( Amendment ) Bill 2024, and Service Tax ( Amendment ) Bill 2024.
When the appropriate regulations are amended, Pulau Satu may join the likes of another duty-free islands in the country for as Labuan, Langkawi, Tioman and Pangkor.
According to local media reports, Mdm Lim claimed that Pulau Satu would be subject to the current laws governing another duty-free islands, including the requirement for visitors to spend at least two days there before being eligible for duty-free products.  ,
Mdm Lim added that chocolates, perfumes, drinking and fragrance would be free from work.
She added that the Bills are intended to promote business, draw investments, and encourage regional economic activity as part of Putrajaya’s plans to establish a special economic zone in Forest City to promote economic growth and investment in Johor, as reported by Free Malaysia Today.  ,
Several members of parliament ( MPs ) took part in the Bills debate, which was met with some back and forth questions.  ,
Mr Jimmy Puah, member of the People’s Justice Party ( PKR ), which is part of the ruling Pakatan Harapan ( PH) coalition, suggested expanding the list of duty-free items to include electronics and other popular products to encourage more purchases by Singaporeans.
According to nearby media, he even suggested lowering the 48-hour be need to just one night in order to give the Lion City a competitive edge over the Lion City.
Forest City is currently categorized as a duty-free place, which it received in 2016 With the current Bills article, Pulau Satu’s position will shift and it will be gazetted as a duty-free area.  ,
A representative from Forest City’s Chinese designer Country Garden told CNA that this will lessen the stringent requirements for income enables and applications for the purchase of duty-free products.  ,
Under duty-free area laws, customers can buy up to three crates of beer ( 24 cans per crate ), five litres of liquor, and three cartons of cigarettes ( 200 sticks per carton ) at duty-free prices from designated complexes.  ,
Just within Forest City and not taken out, had alcohol and cigarettes be consumed.
Yet, local media has recently reported a flurry of prostitution of duty-free items out of Forest City and reselling them at marked-up costs, labelling the growth a” sneaking hotspot”.
Mr. Anwar made the announcement last August that the Forest City project would be designated as a special financial zone to boost the Iskandar Malaysia region’s economy during a visit to Johor.  ,
In January, Singapore and Malaysia signed a Memorandum of Understanding on a Johor-Singapore special economic zone ( SEZ ), aiming to boost cross-border economic connectivity.  ,
However, the Forest City project has met hurdles, including fears over lagging development and Country Garden’s financial issues.  ,
In response to the development’s slow pace of construction and low occupancy rates for its residential properties, various media reports referred to the project as a “ghost town.”  ,