Iskandar Malaysia Biz watch 201212
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The document provides an update on progress in Iskandar Malaysia as of November 2012. It summarizes that total cumulative committed investments reached RM105.14 billion, a 24% increase over the previous year. Manufacturing and property sectors accounted for 32% and 33% of investments respectively. It highlights the opening of several educational institutions and theme parks in 2012 that are boosting the tourism industry. Infrastructure projects have improved connectivity in the region and supported further investment and growth.
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Iskandar Malaysia Biz watch 201212
- 1. Issue 12/2012 31 Dec 2012 Cumulative Committed Investment Year on Year (until November 2012) Iskandar Malaysia Progress Update 2012 Since the inception of Iskandar Malaysia in year 2006, Iskandar Malaysia has made much progress with cumula- tive investments hitting more than RM100 billion (from 2006 until Nov 2012). Our development plan as set out in the Comprehensive Development Plan (20052025) looked at the holistic and sustainable of Iskandar Malaysia. Central focus re- mains a balance of economic growth, social inclusiveness and environment sustainability. Cumulative Committed Investment Year on Year 2012 has been identified as our tipping point year when (until November 2012) we entered into Phase 2 (20112015) of the 20 year de- Foreign vs Local velopment period of the Comprehensive Development Plan. In this beginning of Phase 2, Iskandar Malaysia has completed several important milestones. Key road infrastructure projects have been completed as are several catalytic projects that will further spur growth and investment in the important Phase 2. Investment Updates As a result of a stronger collaboration with key stakehold- ers especially with MIDA, MITI and Johor State Invest- ment Centre to continuously promote and market Iskan- pecting the manufacturing sector to lead moving forward to dar Malaysia as a preferred global investment destination year 2013. of choice, investment flows to Iskandar Malaysia contin- ued to be on the rise. Top Foreign investors (by countries) Singapore remained our top foreign investor followed by As at November 2012, total cumulative committed investment for Iskandar Malaysia for the period of 2006 to November 2012, Spain, Japan and the Netherlands. This can be attribut- stood at RM105.14 billion, up 24% from RM84.78 billion record- ed to the better bilateral ties and Government-to- ed last year. Government initiatives. 1. Singapore From the total cumulative committed investments of RM105.14 2. Spain billion, 64% or RM67.69 billion were domestic investments while 3. Japan the remaining 36% or RM37.45 billion were foreign investments. 4. Netherlands 5. United Arab Emirates Among the notable committed investments in the last eleven 6. Australia months of 2012 were: 7. Lebanon 1. Tenaga Nasional for better transmission projects in Is- 8. France kandar Malaysia. 9. China 2. Sunway Khazanah to develop the Wellness Resort City 10. Germany in Medini (Source: MIDA (for manufacturing statistics), IRDA) 3. Dato Onn International Specialist Hospital. 4. Redevelopment of KOMTAR and Plaza Kotaraya by Jo- hor Corporation. We can continue to expect strong interest from Singapore to 5. South Key Megamall invest in Iskandar Malaysia following the Singapores Govern- 6. Gerbang Nusajaya (Ascendas and UEMLand) ment strategies to move its manufacturing activities outside Singapore. Target sectors will remain manufacturing Investments in manufacturing and properties continued to be (especially food processing) and services (education and main chunk of the investments to-date, with each of the sectors healthcare) carrying 32% and 33% respectively. However, we are still ex-
- 2. Iskandar Malaysia Progress Update 2012 IM BizWatch Operationalisation of Key Catalytic Projects Iskandar Malaysia Progress Update 2012 Education The year 2012 has seen several international universities and TourismTheme Parks in Iskandar Malaysia colleges starting their operations in Iskandar Malaysia. Raffles University Iskandar, University of Southampton Malaysia Cam- LEGOLAND MALAYSIA pus and the Marlborough College Malaysia were some of the few educational institutions that opened in 2012. Raffles University Iskandar Opened in May 2012 with temporary campus at Kota- raya. Opened 15 Sep 2012 76 Acres 7 Themed Areas University of Southampton Malaysia Campus 40 Interactive Rides Opened on 1 October 2012. 50 million LEGO bricks 2 + 2 Engineering Programme (Mechanical Engineering) Largest Miniature park 250,000 visitors from Septem ber 15, 2012 to November 15, 2012 Puteri Harbour Family Theme Park Soft launch on October 26, 2012 Official opening on December 6, 2012 Visitors: 15,000 since soft opening Marlborough College Malaysia Opened on 27 August 2012. 350 students, 30 nationalities, more than 270 internation- al students 50% from Singapore (expatriates) The opening of LEGOLAND and Puteri Harbour Family Theme Park are driving visitors into Iskandar Malaysia. For the month of November and December 2012, many hotels in Johor were operating at full occupancy. LEGOLAND annual passes which cost RM195 (pre opening) are now selling for RM325. With these two themeparks and more underway, Iskandar Malaysia will have more tourism products and this create op- portunities in the hotel industry.
- 3. Iskandar Malaysia Progress Update 2012 Infrastructure and Enablers IM BizWatch Safety and Security Program Outcome The government has allocated and spent approximately RM7.3 billion in Iskandar Malaysia since 2006 on roads, drainage and river-cleaning, public housing and public transportation im- provement. 24% dropped in street crime, 10% crime index Outcome of survey: 95% of respondents agreed that level of security improved and fear of crime improved with Community Police Posts (CPPs) set up in housing areas. JB Transformation Programme The public money spent on to improve infrastructure have im- proved connectivity significantly within the region and this has been a key factor to drive investments and to bring growth in other areas within and outside the Flagships for a more bal- anced development within Iskandar Malaysia. Transport and Connectivity Outcome One key project under Johor Bahru City Rejuvenation Pro- gramme is the Sungei Segget Rehabilitation. Budget allocated = RM220 million. Tender for Package 1: Centralised SewerageTreatment Plant issued out on 25 Dec 2012 to close on 1 March 2013. Work on Package 1 to commence in April 2013 to complete by end 2015. Tender for Package 2 will be issued in early 2013 with The opening of Coastal Highway now provides two direct ac- work to complete by end 2015. cess to Nusajaya. The Eastern Dispersal Highway and the Southern Link Expressway help alleviate traffic heading to- Test implementation of new traffic system carried out in wards the Eastern side of Johor. And the Senai Desaru Ex- December 2012 pressway not only cut short the distance to Desaru and Pengerang but will open up more development opportunities By end 2015, the completion of the Sungei Segget Rehabilita- along the way. tion Project will change the face of Johor Bahru City and will spur more investments to redevelop the city centre.
- 4. Iskandar Malaysia Progress Update 2012 IM BizWatch Human Capital and Talent Management Program Community Development Housing and Spatial Total jobs created in the 9 economic sectors (JanJune 2012) = 54,184 of which 31% are from skilled and semi- skilled level Total jobs created in Iskandar Malaysia from 2006June 2012 = 386,000 (CDP target: 800,000 jobs) BizWatch comments. The year 2012 closed on track with cumulative invest- ments exceeding RM100 billion (CDP target of RM383 bil by 2025). The cumulative investments will spur more investment interest and we would need to work harder and smarter to realize these investments as well as new investments. Economic and Social Inclusion Besides economic growth, social development is an important agenda where job opportunities, economic inclusion, mindset change and affordable housing must be in place. We must also continually work towards improving the enablers (transportation, safety and security, utilities ) and to enhance the business eco-system (including improving business processes) to make doing busi- ness easier and more efficient. Editorial Economic Intelligence Iskandar Regional Development Authority Low Mei Leong meileong@irda.com.my Arif Kasmuri arif.kasmuri@irda.com.my Articles are adapted from public documents. Comments are per- sonal views of authors and professional advice should be sought when making business decisions. IRDA will not be liable for the accuracy and/or validity of the above statements.