Johor's IRDA sees boost to Iskandar Malaysia from special financial zone proposal in Budget 2023

JOHOR BAHRU, Feb 25 (Bernama) -- Several proposals and incentives of Budget 2023, including the creation of a special financial zone in Iskandar Malaysia, are expected to accelerate the social and economic development of the southern peninsula economic region post-pandemic.

Datuk Badrul Hisham Kassim, the chief executive of Iskandar Regional Development Authority (IRDA), said the special financial zone, for example, is a strategic step capable of drawing investors and knowledge workers to the economic corridor. It will add value and give an advantage to Iskandar Malaysia as an international investment destination, he added.

“The proposal, which directly involves Iskandar Malaysia, reflects the government’s confidence in the economic region to contribute to national development.

“This will strengthen the region’s effort to draw investments and enhance its lifestyle and business ecosystem, especially in the recovery process post-pandemic,” he said in a statement today.

Badrul Hisham said the extension of tax incentives for electrical and electronics manufacturing companies which shifted operations to Malaysia, as well as a 15 per cent on the “C-Suite” until 2024, will strengthen investments in the sector in Iskandar Malaysia.

“Same goes for the extension of incentives on income tax and tax allowances on investment until Dec 31, 2025 in the area of aerospace, which is a newly introduced sector in Iskandar Malaysia,” he added.

Apart from that, Badrul said the move to extend the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) until Dec 31, 2025 and the extension period from three to five years will also help draw investments to Iskandar Malaysia, which is already known as a leader in the low carbon agenda.

-- BERNAMA