Johor’s development scene is really heating up, thanks to grand measures like Iskandar Malaysia and the state’s own natural assets. No wonder the state is becoming increasing attractive to a high level of international investors, businessmen and tourists

Much has been written about how Johor is set to become an international metropolis with the influx of investments, particularly into the Iskandar Malaysia economic zone. While much of Johor’s recent high profile is attributed to Iskandar Malaysia, this southern state has many other attractions bringing in the dollars from investment (local and foreign), tourism and population growth/inward migration.

Iskandar Malaysia – Magnet for Investment and Growth

The grand dame of Johor’s growth is Iskandar Malaysia, whose attractive incentives has already attracted almost RM40 billion in investments and is targeted to be on par with China’s economic hotbeds of Shenzhen or Hong Kong when it is completed. Previously known as the Iskandar Development Region, the joint effort by the state and the federal government covers an area of 221,634ha (about three times the size of Singapore). Iskandar Malaysia stretches from Johor Bahru to Senai/Kulai in the north, Port of Tanjung Pelepas westwards and Pasir Gudang in the east. Plans include a new administrative centre for Johor, new industrial zones, education, medical and tourism hubs, a waterfront development and luxury residential areas.

Iskandar Malaysia is well-placed to achieve its investment target of US$100 billion (approximately RM350 billion) by 2025. The brainchild of Prime Minister Datuk Seri Abdullah Ahmad Badawi, the project is privileged to benefit from an illustrious panel set up to advice on its development. The prominent personalities include “sons of the state” like Southeast Asia’s richest man and Johor-born Tan Sri Robert Kuok Asia's, and former Deputy Prime Minister Tun Musa Hitam.

Attractive Investment-wooing Packages

The magnetism of Iskandar Malaysia has been attributed to the government’s package of incentives, signalling its earnestness in creating a conducive environment for economic growth. Unveiled in October 2007, the incentives include corporate tax exemption for 10 years, exemption from Foreign Investment Committee rulings, permission to source capital globally, and permission to employ foreign workers without restrictions.

As of August this year, Iskandar Malaysia has already attracted RM39 billion in investments. According to Arlida Ariff, managing director of Iskandar Investment Bhd (IIB), this comes to 80 per cent of a RM47 billion target by 2015. Investors include parties from the Middle East, Lebanon, Spain and Singapore.

Well-equipped for Logistics and Hospitality

The State is well-placed to serve the increasing logistics needs of investors and businessmen. Port of Tanjung Pelepas needs no introduction, having set a world record as the fastest-growing port with one million twenty-foot equivalent units (TEU) of containers handled after 571 days of operation when it began trial processes in 1999. Meanwhile, the Senai International Airport is being developed into an international cargo hub under Iskandar Malaysia. The airport is currently capable of handling 4.5 million passengers and 100,000 tonnes of cargo per year, with plans to increase the capacity of the airport to 10 million passengers per year.

Johor also has plenty of hospitality offerings in place to cope with its bustling growth. More investments continue to pour in, from luxury seaside and golfing resorts to and five-star hotels such as Aman Resort and Danga Bay Resort, to no-frill chains like Tune Hotel, expected to open its door early next year.

Family-friendly Facilities and Attractions

One dimension of economic growth is not just the influx of dollars, but also population growth. The creation of new jobs and opportunities will bring in more businessmen, employees and entrepreneurs – and their families. According to the Iskandar Malaysia website, Johor already has a population of 3.17 million people, of which 1.35 million (43 per cent) reside in Iskandar Malaysia. One-third of the population is below 15 years old.

Fortunately, the southern state already has a wide range of amenities and attractions for a diverse range of families. Aside from the national and Chinese primary and secondary schools that dot the state, Johor also offers several international schools that span kindergarten, primary and secondary levels, as well as tertiary institutions.

Another planned attraction for families and tourists is theme parks. IIB is in discussions with three operators to develop several theme parks in Iskandar Malaysia, said its Arlida. Having several theme parks will lead to visitors staying longer in Johor, resulting in a multiplier effect on the economy. Some 3,000 acres have been set aside for theme parks, including supporting commercial developments, in Iskandar Malaysia.

Dynamic Hub, Secure Haven

Clearly, Johor is making tidal waves with its current measures to spur economic growth and attract investment. The intangible incentives, concrete institutions and natural attractions are sending the state well on its way towards becoming an important centre for industry, logistics and commerce. At the same time, Johor looks set to also make its mark as an ideal haven and residential hub for those whose life and/or work lead them to visit or reside in the state.