With education, tourism, culture, an established transportation system and a budding economy from the Iskandar Malaysia project, Johor has it all in place to woo the multitude of investors and buyers to the state.

Johor has positioned itself through Iskandar Malaysia as a major development site to draw investment and business. Labelled as one of the largest development projects in Malaysia by many experts, Iskandar Malaysia is set to position Malaysia as an emerging major growth centre comparable to Asian cities such as Bangalore, Dubai, Hong Kong, Shanghai, Taipei and Tokyo.

Land of Opportunity

Johor has long been home to industries such as electrical and electronics, petro chemical and oleo chemical, food and agro processing, logistics and related services, and tourism. With the launching of Iskandar Malaysia, this southern state seeks to diversify its market to areas such as health, education and financial services, as well as creative industries. These new emerging industries allow more room for growth, providing the state with more valuable assets in the near future.

Furthermore, Johor has many social, economic and geographical advantages making it an ideal place for foreign investors seeking to make Malaysia their second home.

The state is also equipped with world-class facilities such as the latest in telecommunications systems with an efficient and transparent public institutional framework. Johor’s two major ports at Tanjung Pelepas and Pasir Gudang are well-established as world-class transshipment ports. The Senai airport is equipped with state of the art facilities, and handled up to 1.25 million visitors and over 7,500 tonnes of cargo in 2005.

Securing the Land

Despite its vast opportunities and assets, Johor has a rather unfortunate reputation as a crime-ridden state. It was reported in The Straits Times in June 2007 that “the rising crime rate in Johor has hit tourism, and the Malaysian government is taking action to deal with the fallout”.

Johor police chief deputy commissioner Datuk Hussin Ismail said in the article that the increase in police presence for crime-prone areas helped to reduce the crime rate in Johor. “Community organizations helped to increase public awareness of crime-prone areas and safety precautions,” he said.

To assure the general public, statistics (which are constantly being updated) are displayed on the Iskandar Malaysia website. Based on these statistics, there was a general drop in crime from 2,681 reported cases in January 2008 to 2,090 in March 2009, a 22 per cent decrease since the program was launched. These statistics highlight the seriousness of the state government in solving this problem and turning the state into a crime-free zone.

Intriguing Incentives

To help kick-start early investment into Iskandar Malaysia, the Malaysian government has offered fiscal incentives including full tax exemption for up to 10 years, and partial tax exemptions of up to 70 per cent of statutory income (i.e. tax adjusted income after taking into account capital allowances, the equivalent of tax depreciation). Other indirect tax incentives include the designation of free zones and bonded-warehouse facilities.

Other incentives include exemption from the Foreign Investment Committee (FIC) ruling, permission to source capital globally and employ foreign workers without restrictions. More information can be found on the Iskandar Malaysia official website at www.idr.com.my.

Living Lush

Despite the economic downturn experienced by many Asian countries, Malaysia has avoided a collapse in the property sector largely due to the fact that it did not experience a ‘property bubble’ unlike many other high-cost cities, says Dato’ Sri Leong Hoy Kum, group managing director and group chief executive of Mah Sing Group Berhad (Mah Sing).

“The key to succeeding in the Johor market is to have well-designed properties at the right price with added value in good locations, and developers must have a good track record of timely delivery and excellent customer service,” says Leong.

Property developers like Mah Sing are trying hard to meet the property demands of future developments under Iskandar Malaysia such as the Bandar MSC Cyberport and the Iskandar Waterfront Development. Iskandar Malaysia calls for lush living conditions to meet the international standards of its projects with world-class facilities for the multitude of foreign investors and workers set to reside here.

A tall order, but not impossible says Leong. “Developers need to understand what the buyers want. Good concepts, right pricing and prime locations will still help us sell our products,” he adds.

With all these factors in place, it’s hard not to imagine a world-class metropolis emerging from a budding city, into an international hub full of opportunities and prosperity.