Malaysia

Malaysia

Introduces a Special Financial Zone in Forest City to attract foreign investment

25 Aug 2023

On 25 August 2023, the Government of Malaysia announced the introduction of a Special Financial Zone (SFZ) in Forest City, aimed at boosting investment. The SFZ is meant to lower the cost of doing business by offering several incentives and the extension of benefits previously available in Iskandar Malaysia to encompass Forest City. Key incentives include a specialized income tax rate of 15 percent for skilled workers and the provision of multiple entry visas, aimed at attracting and retaining talent and businesses in the area.

  • UNCTAD has been collecting information on changes in national foreign direct investment (FDI) policies on an annual basis since 1992. This collection has provided input to the analysis of global and regional investment policy trends in the World Investment Report, the Investment Policy Monitors and the UNCTAD-OECD Reports on G20 Measures.

    In 2024, to further strengthen the quality of reporting, UNCTAD revised the methodology of monitoring investment policy measures. and revised the measures going back to 2012 accordingly.

    The Investment Policy Monitor provides the international investment community with country-specific, up-to-date information about the latest developments in foreign investment policies.

    Through its monitoring of investment policy changes, UNCTAD offers cutting-edge and innovative contributions to investment policy discourse, and contributes to preparing the ground for future policymaking in the interest of making foreign investment work for sustainable development.

  • The UNCTAD's Investment Policy Monitor database include official measures affecting FDI adopted by United Nations Member States. These encompass measures explicitly targeting FDI (FDI-specific), as well as general investment measures with a clear impact on foreign investment (FDI-related). The measures are either reported directly to UNCTAD by Member States through annual surveys or identified by UNCTAD researchers through publicly accessible sources (such as government websites and specialized policy databases). The classification of measures as more or less favourable is based solely on their potential impact on investors.

    Note: Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.

    Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.

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