'SMEs stand to gain from Iskandar Malaysia'

JOHOR BARU: Small- and medium-sized enterprises in Iskandar Malaysia have been assured that they will benefit from the expected influx of major foreign investors. Menteri Besar Datuk Abdul Ghani Othman said SMEs should not worry about being sidelined as they had an important supporting role to play.

The trickle effects of the projects will definitely go down to the local SMEs," he said after opening the Johor SME Exposition 2008 at the Angsana shopping complex here yesterday.

On claims that the local SMEs had yet to receive any benefit from Iskandar Malaysia, Abdul Ghani said all quarters should not jump to conclusions before the whole plan for the development corridor could take off.

He had previously promised that the first of a series of major projects in Iskandar Malaysia would start before the end of this year.

Iskandar Region Development Authority (Irda), the administrator of the development corridor, had from time to time been criticised for not being sensitive to the needs of the local business community.

The latest criticism came from Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad, who was quoted on Aug 3 as saying that Iskandar Malaysia had yet to produce any direct benefit, especially for small local businesses.

Shahrir, who is also the Johor Baru MP, claimed that the needs of residents in this city were not given priority in Irda's plans.

"Even if this project turns out to be a success, it would not seem likely to be ours," he was quoted as saying.

Without referring to Shahrir's statement, Abdul Ghani said those expecting to benefit from the development needed to give it time to mature as proper planning and the drawing of huge investment had to be done in a comprehensive and structured manner.

"Please bear in mind that Iskandar Malaysia is just two years old. We have to be patient with it."

Earlier, Abdul Ghani told a group of SME operators that their resilience in weathering economic downturns over the years was proof that they had a role in ensuring the continuous growth of Johor.

"The SMEs have their own unique characteristics which make them important players in our economy.

"The state government will continue to support them and provide whatever assistance available."

Abdul Ghani said the state government's recent decision to acquire a 20 per cent stake in water concessionaire SAJ Holdings was meant to ensure better water tariffs, not only for households but also businesses and industries.

"I will not say that the tariffs will be reduced but it will be relatively better, considering the present circumstances."

Energy, Water and Communication Minister Datuk Shaziman Abu Mansor had announced the state government's acquisition last Tuesday, saying it would profit Johor as SAJ would from now on be required to pay for the water it took from the state.