/// Hot Topic
INVESTMENT UPDATE 2006 - OCTOBER 2013
/// HOT TOPIC
How Sustainable is Iskandar Malaysia?
J
ohor is predicted to be the
richest state in the country
supported by investments
brought upon via Iskandar Malaysia
by 2025. Due to high potential in
the area, an immense amount of
promotion activities by the Malaysian
government has been conducted to
promote this project to Malaysians.
The Johor gross domestic product
(GDP) in 2005 was recorded at
USD20 billion is expected to increase
up to USD93 billion in 2025 thanks
to the Iskandar Malaysia project
with a GDP per capita growth from
USD14,790 in 2005 to USD31,000
in 2025. It is also set to push
employment rate from 0.610 million
in 2005 to 1.428 million by 2025.
Even areas such as Nusajaya are
slated to be a key driver of the
Iskandar Malaysia project and
the largest fully integrated urban
development in Southeast Asia.
Iskandar consists of commercial
and residential developments
with a multitude of niche business
endeavors.
Three times the size of Singapore,
Iskandar is set to be a modern
metropolis buzzing with economic
activity, a conglomeration of various
exciting growth sectors, including
nine key economic clusters:
financial advisory and consulting,
creative industries, logistics, leisure
and tourism, education, health
care, electrical and electronics,
petrochemical and oleo-chemical,
food and agro-processing.
Among the key areas that are being
developed at Iskandar includes
government sector (Kota Iskandar),
high-end living (Puteri Harbor),
industrial parks (SiLC Nusajaya),
health (Afiat Healthpark), education
(EduCity Iskandar Malaysia), mixed
used development (Medini Iskandar
Malaysia), recreation (Legoland) as
well as film production (Pinewood
Studios).
Leveraging on Proximity to
Singapore
To further add value to Iskandar, the
KL–Singapore high speed railway is
set to have a station located at the
new township to increase the human
traffic flow which will ultimately boost
the spending in Iskandar.
Iskandar is overflowing with potential
that is already benefiting the early
movers there. The cost advantage
as compared to Singapore has lured
a multitude of investors from the
small island nation and the added tax
incentive is set to make Johor grow
faster than Penang. It is currently the
only township that is implementing
the modern metropolis concept the
moment you step in the area.
Singapore Prime Minister Lee Hsien
Loong said Iskandar Malaysia is a
strategic place to boost Malaysia’s
competitiveness in the global market
Cumulative Committed Investment by Sector
INVESTMENT UPDATES
Finance 0.60
Education 1.56
Creative 0.40
Cummulative Committed Investment Year-On-Year
140.00
Utilities
12.64
129.42
130.00
8.31
120.00
106.31
110.00
7.31
100.00
90.00
80.00
55.56
60.00
41.76
50.00
40.00
11.30
8.17
5.05
5.80
7.10
1.00
5.80
5.50
6.28
Manufacturing
19.98
9.11
Industrial
Property
6.20
Retail Property
9.45
45.68
23.65
2009
31.22
2011
26.92
2010
Others
Emerging
Technology
1.03
Manufacturing
45.68
14.45
2008
2007
41.78
28.79
16.52
PropertiesG
overnmentC
Residential Property
33.66
Government
8.31
35.14
27.30
21.83
6.28
21.70
11.90
2006
0.00
6.83
25.80
30.00
10.00
6.28
69.48
70.00
20.00
33.66
84.78
35.07
2012
2013 (OCT)
Promoted
ommitted Investment
Non-Promoted Sector
:
Government
8.31
Industrial
6.20
4%
Utilities
10%
2%
Retail
7%
2%
Government
6%
1%
Industrial
5%
Creative/Finan