Iskandar Malaysia is more than living up to its promise as a dynamic hub for IT, commerce and industry in the heart of a vibrant community, drawing foreign and other lucrative investments

The global economic slowdown may be leaving its mark on many nations and corporations, with many shelving or cancelling expansion plans and finding their financial backing fading away. In this light, Iskandar Malaysia’s success in maintaining its investment momentum is a remarkable feat. Clearly, the economic slowdown has not diluted the draw of this dynamic hub.

Bustling with investments and opportunities

So far, Iskandar Malaysia has netted RM40.25 billion in foreign and local investments since its inception in 2006, representing 85.6 per cent of its target investments by 2010. Johor chief minister Datuk Abdul Ghani Othman said Iskandar Malaysia was still mo­­ving forward on schedule, receiving RM14.45 billion this year alone compared with RM11.3 billion in 2006.

In addition to private investment, the government has also allocated it RM6.83 billion under the Ninth Malaysia Plan, and has been awarding RM452 million worth of infrastructure-related projects over the past six months. Iskandar Malaysia is targeted to create some 800,000 jobs over the next 20 years which will help raise the per capita income of Johor to RM115,000 by 2025.

Dynamic hub of diverse offerings

Of course, there are many impressive and diverse features about Iskandar Malaysia that will help it develop into “an international address for business, investment, leisure and culture”, in the likes of Shenzhen, Dubai and Mumbai.

The services sector is one of the two main economic growth sectors in Iskandar Malaysia, in line with the government’s policy to increase focus on value-added and knowledge intensive activities in the country. The sector consists of several commercial development initiatives, or ‘pillars’, including creative, educational, financial advisory and consulting, healthcare, logistics and tourism.

So far, the blueprint includes an impressive Nusajaya integrated cyber-city, a logistical hub, the Afiat Health Park healthcare hub, an education city, a marina, a theme park, hotels and residential villas.

Attracting and educating the best and the brightest

Iskandar Malaysia’s ‘edu-city’ targeted at university faculties and private boarding schools has secured some high-profile partners, including Newcastle University, which will open a medical faculty (NUMed) here by 2011, and the Malaysian education group Cempaka Schools, which will open an international boarding school for boys in the next few years.

NUMed aims to eventually have 900 medical students and plans to invest RM400 million over 30 years.

Strong global support

The latest high-profile partner to come on board is the RM750 million Legoland Theme Park, Malaysia’s first international theme park.

Theme parks have a proven track record of attracting a large volume of visitors, and Legoland is expected to create some 5,000 jobs over the next five years. Located on a 930ha site in Medini Iskandar, the park will have more than 40 interactive rides, shows and attractions when it opens in 2013.

Tan Sri Azman Mokhtar, chairman of Iskandar Investment Bhd (the managing entity for Iskandar Malaysia), pointed out that while the government might slow down its own participation in mega projects, this did not affect projects and investments secured from foreign and private partners.

“Our partners, such as Millennium Development International Com­pany, Kuwait Finance House and Mudabala Development Company are strong partners and our mega projects are moving,” he was quoted as saying in December 2008.

Who’s who in the property scene

In the property scene, many of Malaysia’s established property players such as UEM World Bhd, S P Setia Holdings Bhd and Gamuda Bhd have already started some development projects here, drawing buyers from local shores as well as Sri Lanka, the UK, South Africa, the US, Japan and India.

Local businessmen affirm that the economic slowdown is not going to dampen the spirits of Johorean businessmen, considered a resilient lot. In fact, said Teh Kee Sim, president of Small and Medium Enterprises Association of South Johor, the crisis is actually a blessing in disguise for local SMEs, as only genuine SMEs would survive.

The manufacturing sector is one of the two main economic growth sectors in Iskandar Malaysia, with 50 per cent of its investments currently secured from Japan, Spain and Singapore.

As chief minister Datuk Abdul Ghani points out, Johor has already been one of Malaysia’s top three investment destinations for the last five years, and the current economic slowdown situation is not likely to jeopardise its position.