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PETALING JAYA (April 28): The Forest City Special Financial Zone (SFZ) is well-positioned to draw global investors seeking stability, as geopolitical tensions in West Asia push ultra-high-net-worth individuals to reposition assets into safer jurisdictions.
Universiti Teknologi Malaysia (UTM) Accounting and Finance Department associate professor Dr Mohd Effandi Yusoff said Forest City’s SFZ stands to benefit by capitalising on the current geopolitical climate to attract investors seeking a stable destination for their funds.
“Forest City can offer investors, particularly those in the financial sector, an alternative location that is politically stable and strategically located in Southeast Asia, and is also backed by the Malaysian government,” he said in a statement.
He was responding to the escalating regional conflict involving Iran that has triggered a shift in how global investors manage their fortunes, amid disruptions to oil supplies that have unsettled the broader global economy.
Mohd Effandi said Forest City, which is part of the Johor-Singapore Special Economic Zone (JS-SEZ), could position itself as a safe investment destination away from conflict-prone regions, adding that the SFZ’s status may enhance its position within regional financial networks as international capital becomes more risk-sensitive.
He said the SFZ is also well-placed to broaden its appeal beyond family offices by targeting financial services segments such as fintech and cryptocurrency-related businesses.
“Currently, Forest City has demonstrated strong industrial appeal. The presence of major financial institutions such as the CIMB Group and Maybank Bhd has established a solid foundation for the SFZ.
“Moving forward, the SFZ can also capitalise on industrial synergies that are driven by fintech, cryptocurrency-related businesses to develop a comprehensive and diversified financial services ecosystem,” he said.
Mohd Effandi noted that Johor had already built a reputation as a destination for foreign direct investment, underpinned by Malaysia’s political stability and regional ties through Asean.
“Forest City not only has a strategic location, but it also has ready infrastructure and incentives announced by the government that can draw investors from both domestic and international,” he said.
He added that Country Garden Pacificview Sdn Bhd, as the developer, is in a position to take proactive steps in promoting Forest City and its SFZ to ensure it remains on track to become a regional financial hub.
Mohd Effandi also noted that tightening wealth management regulations in Singapore could prompt more ultra-wealthy families to consider relocating their family offices elsewhere.
“The new stringent regulations in Singapore have prompted some wealthy families, particularly from China, to consider relocating their family offices away from the republic to other alternative destinations,” he said.
As of April 22, the Securities Commission (SC) has granted nine conditional approvals involving approximately RM670 million in assets under management (AUM), with a target to develop a family office cluster with an AUM of RM2 billion by end-2026.
“If matched with investor-friendly policies, domestic economic and political stability, a strategic location and complete infrastructure, Forest City has the potential to emerge as a financial hub not just in the region, but across Asia,” he stated.
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