Forest City in Johor was declared the first SFZ by the prime minister with hopes of lowering the cost of doing business and boosting the state’s economy.

Lim said given that Penang had critical mass and a mature manufacturing industry, declaring it an SFZ would boost development in the services sector.

“With a 15% tax rate and multiple entry visas (under the SFZ), it would attract highly-skilled talent and stem the brain drain of talented Malaysians,” he said during the debate on the 12th Malaysia Plan (12MP) mid-term review today.

The former chief minister also welcomed the inclusion of the Penang airport expansion programme and the LRT project under the 12MP mid-term review, adding that such key projects were needed.

He said the government should fund the construction of the Pan Island Link 1 highway to cut down crippling traffic on the island.

Lim also said there was a need for a new multi-storey carpark at the Penang Hospital and the Perak Road health clinic, while the old double-decker car ferries should be brought back.

He said the government should reduce the duration of five-year economic plans, adding that in the digital era, such plans could be seen as lasting indefinitely.