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Iskandar Malaysia's doing just fine

[ 20-05-2009 ]
Iskandar Malaysia's doing just fine

When it was launched, Iskandar Malaysia was earmarked to become the most developed region in the southern part of Peninsular Malaysia. Two-and-a-half years later, many people feel that the region, which is three times the size of neighbouring Singapore, has been progressing at a snail's pace. Johor Menteri Besar Datuk Abdul Ghani Othman tells SHARIF HARON that this is a misperception

Q: What is the latest on Iskandar Malaysia?

A: Since its launch in November 2006, we have received investment commitments to the tune of RM42.7 billion. Of this, 26.7 per cent or RM11.4 billion is already at the level of implementation.

Essentially this is in the form of major earthworks, for the likes of Legoland (theme park) located in a place called Medini and Newcastle University's medical faculty. Piling has started and construction will take place within three to five months.

There is also a water theme park, hotel and commercial development, among other projects. There is also private-sector development in places like the Danga area.



Q: Are you saying that the development of Iskandar Malaysia has been progressing well?

A: Yes, and another private-sector initiative is the premium or designer brand outlet mall in Kulai.

Work on the project is expected to start by the end of this year and due for completion in 2010.

So, Kulai will be the place where you can get branded products at desirable prices. There will be premium factory outlets. It's going to be a destination for designer outlet shopping and the super smart shopper seeking luxury goods at desirable prices.

Our Cybercity in Kulai, where companies will enjoy MSC status, is also due to start construction at the end of this year

In Pasir Gudang, Acerinox-Nisshin Steel's RM5 billion facility is under construction and progressing well.

In Tanjung Pelepas, a massive extension project is under way to increase the port's capacity.

Essentially though, much of the money spent so far has been on earthworks, but we should soon see the construction of the buildings.

At the IRDA (Iskandar Regional Development Authority) level, we are putting together an array of enabling blueprints or implementation plans in the key areas -- security, human capital, investment attraction, land use, sewerage, solid waste, public transport, road infrastructure and many others.

Some are in the implementation phase, while the rest are being worked out.

The blueprints help us to have a clear idea on what needs to be done to turn Iskandar Malaysia into a metropolis of the future.



Q: So it's not true that the development to date has only been funded by taxpayers' money?

A: Iskandar Malaysia is mainly a private sector-led development, with 84 per cent of the committed investments originating from the private sector.

Government funds are used to build infrastructure used by the public. In total, RM6.83 billion has been allocated by the government for Ninth Malaysia Plan projects within Iskandar Malaysia and this represents only 16 per cent of committed investments to date.

Infrastructure costs within private development projects are borne directly by the developer and not by the government.



Q: Is there continuing interest from foreign investors during the current economic slowdown?

A: Iskandar Malaysia is attracting the attention of investors despite the present economic circumstances. There is encouraging interest from the Middle East, in particular Abu Dhabi (United Arab Emirates) and also from China.

Following my visit to Abu Dhabi, in the next one or two months, I should be receiving visits from different groups from there to look at possible projects for them to invest in here.

The next step we need to take is to identify new sources of investment, the kind of investment that we want to attract.



Q: What about Singaporean investors?

A: As far as Singaporean investments are concerned, these have been an ongoing thing.

From 2006 to March this year, investments from Singapore totalled RM1.87 billion.

They are the third biggest investor in Iskandar Malaysia (after Spain and Japan).

But it's been essentially in manufacturing and most of them are small- and medium-sized industries.

While to some extent it's true that the Singaporeans have been relocating here, there have been expansion projects as well.



Q: There have been suggestions that Iskandar is catering too much to the Singaporeans. What are your comments?

A: This is not true. As I said, investments have been coming from Singapore all along. By virtue of our proximity, it is cost-effective and convenient for them to invest in Johor.

They can have production centres here, or marketing and sales offices.

But beyond manufacturing activities, we have to find investments that are mutually beneficial to Singapore and Iskandar Malaysia, including possibly in the services sector.



Q: As the co-chairman of IRDA (the other co-chairman being the prime minister), how do you plan to drive Iskandar Malaysia forward in the coming months?

A: We are monitoring the projects and developments on the ground closely to ensure that the enablers are in place and progressing.

We are also balancing the social needs of the community in Iskandar Malaysia to ensure that they will benefit from the development, either thro-ugh improved job opportunities or a better living environment.

Under the current global economic situation, our challenge is to retain and protect committed investments and see them through.

The best way to do this is to show investors that Iskandar Malaysia will continue to develop and will be aptly positioned to take off once the situation improves.



Q: Can you tell us about the social needs of the community?

A: We are implementing the first public housing programme under which quality homes will be made available in strategic areas for the working community of Iskandar Malaysia.

This should come on stream in 2012. Land has been acquired, consultants appointed and soon we will award the contract for construction.

We have launched squatter resettlement programmes to resettle in situ some of the people in the major squatter areas in Iskandar Malaysia. It is important that they are resettled and not relocated or displaced.

We have also given the opportunities to contractors from Johor.

Some are given through open tenders which have been restricted to Johor contractors.



Q: But isn't it true that the public still has the perception that little is happening in Iskandar Malaysia?

A: As I said earlier, Iskandar was launched at the end of 2006. That's just over two years ago.

We had to come up with the master plan. Then we had to put the policy package in place and the package on support and incentives, etc.

After just over two years, we have been able to garner the kind of investment commitments that we see today.



Q: Perhaps it's a matter of not disseminating the information?

A: I agree. There must be a way to get it known. But at the same time, I think what the people want to see is actually in terms of physical development. So maybe in the next five to six months, we will see this.

If you go to the locations where piling work has been done in Iskandar Malaysia, those activities actually took place five to six months ago, but now it's quiet again.

Secondly, the people want to participate. In other words, employment opportunities are available to them.

We have a blueprint on employment or human resources. Because of those commitments (by the investors), we have some idea of the demand for human resources, the kind of workers and skills required. So it's now very much about creating the supply (of manpower) in anticipation of the demand.



Q: How can you convince the public that projects are actually shaping up in Iskandar Malaysia?

A: I cannot convince them now. I suggest we wait for another year.

(Source: http://www.nst.com.my/Sunday/SundayInterview/2558571/Article/index_html)

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