How will economic corridors benefit from new financial zones?

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Special Financial Zones Poised to Boost Malaysia's Regional Economies

The establishment of special financial zones across Malaysia's five key economic corridors is anticipated to significantly enhance the economic performance of these regions. These zones are a central component of the government's strategy to maximise the economic potential of areas like the East Coast Economic Region (ECER), Northern Corridor Economic Region (NCER), Iskandar Malaysia (IM), Sabah Development Corridor (SDC), and the Sarawak Corridor of Renewable Energy (SCORE) during the concluding phase of the 12th Malaysia Plan (12MP).
Intensified Development and Investment Attraction

A key strategy to realise the potential of these regions involves intensifying development in areas identified as having significant confluence. This approach is complemented by fostering cooperation between federal and state agencies to create a more attractive environment for investment. The objective is to leverage these coordinated efforts to drive economic growth and development within each corridor.
Iskandar Malaysia to Host a New Special Financial Zone

As part of this initiative, a special financial zone is slated for creation in Iskandar Malaysia. This development is specifically aimed at drawing in both foreign investors and skilled professionals, encouraging them to establish a presence and contribute to the region's economy. The zone is expected to serve as a catalyst for increased economic activity and foreign capital inflow.
Proposal for a Special Financial Zone in Penang

Support has been voiced for a proposal to establish a special financial zone in Penang, a region noted for its robust manufacturing sector and substantial contribution to the national gross domestic product. The rationale behind this proposal highlights Penang's existing industrial strength as a suitable foundation for such a zone, mirroring the benefits seen in Johor's Iskandar Malaysia.
Attracting Talent and Mitigating Brain Drain

Special financial zones are designed with specific incentives to attract and retain high-calibre individuals. Measures such as a preferential tax rate of 15 percent for knowledge workers and the provision of multiple-entry visas are intended to make Malaysia a more appealing destination for foreign talent. Concurrently, these incentives aim to reduce the emigration of skilled Malaysian workers, thereby combating brain drain and strengthening the domestic talent pool.

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How will economic corridors benefit from new financial zones?

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