FIVE amendment Bills have been tabled to implement special tax provisions for Pulau Satu in Forest City, Johor, that is similar to other duty-free islands.
The Customs (Amendment) Bill 2024, Excise (Amendment) Bill 2024, Free Zones (Amendment) Bill, Sales Tax (Amendment) Bill 2024 and Service Tax (Amendment) Bill 2024 were tabled for the first reading yesterday.
“It aims to promote Pulau Satu, Forest City, and to enhance economic growth within the area by introducing special tax provisions,” the Customs (Amendment) Bill 2024 read.
With the amendment, Pulau Satu will no longer be part of the principal customs area.
The amendment to Section 2 of the Free Zones (Amendment) Bill will also mean that Pulau Satu will be listed as a duty-free island, along with Labuan, Langkawi, Tioman and Pangkor.
Under the proposed new section 91AF for the Excise (Amendment) Bill, excise duties are payable to all dutiable goods manufactured or imported to Pulau Satu, other than those exempted.
Dutiable goods transported out of Pulau Satu will be subjected to excise duties.
The Bills, tabled by Deputy Finance Minister II Lim Hui Ying, are scheduled for the second reading in the current Dewan Rakyat meeting that is set to end tomorrow.
Last month, Johor Mentri Besar Datuk Onn Hafiz Ghazi said special incentives for the Special Financial Zone (SFZ) in Forest City are expected to be finalised in August.
Last year Prime Minister Datuk Seri Anwar Ibrahim had said the government had designated the multibillion ringgit Forest City project as a special financial zone to spur the economy in Iskandar Malaysia.
He said that among the incentives would be to allow for multiple entry visas, fast-track entry for those working from Singapore, and a flat income tax rate of 15% for knowledge workers.
The Forest City project started in 2015 and about 28,000 residential units have been completed over seven years, with the main focus on developing the first reclaimed island that is 566.55ha in size.
On another matter, the Finance Ministry said restructuring of Malaysia Aviation Group (MAG) finances resulted in a cost-saving of RM10bil.
The restructuring of the aviation group’s equities had led to savings of RM5bil.
The ministry said the Covid-19 pandemic had given the parent company of Malaysia Airlines Bhd (MAB) a chance to restructure its financial position in March 2021.
This had put the MAG balance sheet in a better position with a healthier cost structure, it said, in response to a question by Teresa Kok (PH-Seputeh) on the strategy used by Khazanah Nasional in making MAG recording an operating profit of RM889mil in 2023.
In a Parliamentary written reply, the ministry said although the results were positive, it was important for the management to be cognisant of the challenges related to the industry, especially with crude oil prices and currency movements.
As for the group’s long-term plan, the ministry said the goal is to strengthen MAG’s position to make it among the Skytrax Top 10 aviation companies by 2030.
The group posted a net profit of RM766mil for the financial year ended Dec 31, 2023 (FY23), a first since its inception in 2015.
