ISKANDAR PUTERI: Once referred to as a ghost town, Forest City in Johor is set to regain popularity after becoming a duty-free island.

State investment, trade, consumer affairs and human resources committee chairman Lee Ting Han said he had received many inquiries.

“Majority of the people are looking at the policies to be implemented,’’ he told Sin Chew Daily.

Currently, there are three duty-free outlets in Forest City, and once it is upgraded as a duty-free zone, goods purchased will be entitled to duty exemption, he said.

On 17 July, Dewan Rakyat approved five bills to make 770 acres of the Forest City property development area in Iskandar Puteri a duty-free zone.

Once approved by Dewan Negara and relevant laws are amended, Forest City would join the likes of duty-free islands such as Labuan, Langkawi, Tioman and Pangkor.

It was reported that Deputy Finance Minister Lim Hui Ying told the Dewan Rakyat that 73 per cent of properties in the island had been sold, with ownership being 70 per cent Chinese nationals, 20 per cent other foreigners and 10 per cent locals.

She said the island’s current population is 9,589, with 70 per cent locals.

Miss Yang from Henan Province, China, who had stayed in Forest City for several months now, said she noticed that the lights in the area had been increasing, meaning more people are moving into the area.

She said about 70 per cent to 80 per cent of Forest City’s residents are from China.

“It’s summer in China now. Many Chinese nationals may come here for holidays,’’ she said.

Chinese grocery store operator Zhao Bojian confirmed that 80 per cent of the residents here are from China.

He said the occupancy rate had increased recently as Americans, Japanese and Koreans moved in.

“The number of people are increasing during the weekends. I have started a second grocery store here,’’ he said.

Zhao also said the occupancy rate for hotels nearby here is good, with rooms fully booked daily.

Real Estate and Housing Developers’ Association (REHDA) Johor Branch chairman Lindy Tan is of the view that the duty-free status will boost the local economic development.

“It is also near Johor Bahru and Singapore. The impact of duty-free island will be greater compared to other duty-free areas,’’ she said.

The duty-free status will help attract more tourists and investors, causing a surge in demand for hotels and commercial properties, she added.

“I am looking forward to detailed announcements for Johor to become more attractive to investors and businessmen.

“The duty-free status will create a strong positive outlook for property market in the state,’’ Tan concluded.