Johor investment, trade, consumer affairs and human resources committee chairman Lee Ting Han said the outcome of internal discussions will be forwarded to the JS-SEZ working group for further action.

“We are expecting more details on the SFZ incentives to be announced by the end of August, before Malaysia and Singapore sign the JS-SEZ agreement,” Lee said in a statement.

Lee added that the Forest City master plan was launched in 2016, aiming to develop the area into an integrated zone for medical, tourism, education and real estate.

He said Prime Minister Anwar Ibrahim gave the go-ahead to turn the area into an SFZ 12 months ago, including making Forest City Island One a duty-free zone.

“We are now adding the financial sector to Forest City’s development,” Lee said, adding that Forest City’s proximity to Singapore means the two cities should complement each other.

“Our focus is on assisting investment in Forest City. We need more soft infrastructure such as talent and connectivity to solve these issues.”

On July 10, Malaysia said it would seek to finalise and sign the agreement with Singapore in September to develop the SEZ. This is likely to take place at a retreat involving leaders from both countries.

The two nations signed an MoU for the development of the zone in January, witnessed by Anwar and his then-Singapore counterpart, Lee Hsien Loong.