The Forest City Special Financial Zone (SFZ) in Johor, which was launched last year, is seen as Malaysia's new 'gold mine' for ultra-wealthy international investors.
With its proximity to Singapore, SFZ has the potential to become a regional financial hub that offers regulatory flexibility, lower tax rates, and freedom in foreign exchange.
According to research firm TA Securities, SFZ could become Singapore's 'little brother' in the financial sector, attracting more global investors.
Foreign banks such as UOB and OCBC may gain an advantage with the relaxation of regulations, but local giants such as Maybank and CIMB are expected to remain dominant with cross-border services.
With the JS-SEZ's plan to attract 100 projects in 10 years, Forest City could transform into a high-value business hub in industries such as renewable energy, semiconductors, and aerospace.
But can Forest City really emerge as Southeast Asia's 'Wall Street'? Or is it just a 'back door' before investors set foot in Singapore?
