The town is built in an area spanning 24,000 acres (97 km²) combining residential, commercial and industrial elements.

The largest private sector-initiated development in South East Asia, Nusajaya, when completed, will be Asia’s foremost fully integrated city with a world-class environment for business, living and leisure.

A key component of the South Johor Economic Region, Nusajaya – 24,000 acres (97 km²) of contiguous land, is the single largest privately-owned land bank in South East Asia.

Nusajaya holds tremendous promise to become a natural hub through which Malaysian and multinational businesses can effortlessly and efficiently connect with all four corners of the globe. Strategically positioned in Johor, Malaysia’s second largest domestic market, Nusajaya offers full connectivity to the world, via comprehensive air, road, rail and sea networks as well as digitally, via its fibre optic telecommunications infrastructure.

With a land area spanning 24,000 acres (97 km²), it has been meticulously designed to preserve the lush greenery and natural habitat within the area. Its strategic location, sophisticated infrastructure and attractive investment incentives are bound to propel it to become a model city for the 21st century.

Corporations and investors can now play a role in this exciting development by embarking in joint-venture developments or acquiring prime development land parcels in Nusajaya.

Nusajaya is a city, not a town.

Nusajaya the Regional City – The Main Driver and Key Component of the Iskandar Development Region

Nusajaya, a 24,000 acres (97 km²) integrated urban development in South-west Johor, is a key development project within the Iskandar Development Region (IDR) – an emerging economic zone in South Johor. Nusajaya, poised to be Asia’s foremost integrated city, is about convergence of diverse developments on a scale and diversity that has never been attempted in Malaysia before. This significant development is positioned to be the largest, premier, fully-integrated urban development in South East Asia offering significant investment, financial and business opportunities for local, regional and international entrepreneurs as well as investors.

The principal thrust of Nusajaya’s development strategy is to offer to the global business and residential markets a sustainable, growing, well-planned community against a backdrop of greenery, water-features and landscaped parks as well as gardens. This iconic, integrated development is propelled by nation-building aspirations, commercial vigour and commitment to stakeholder value enhancement.

To catalyse the development of Nusajaya are the seven signature developments – Johor State New Administrative Centre (JSNAC), Southern Industrial and Logistics Clusters (SiLC), Medical City, EduCity, Puteri Harbour at the Waterfront Precinct, International Destination Resort and Leisure & Lifestyle. Nusajaya’s overall development is planned and designed to be sustainable, environment-sensitive and conducive for business, living and leisure thus enhancing and enriching the quality of life for all who live, work, study and play there.

UEM Land Sdn Bhd, through its subsidiary Bandar Nusajaya Development Sdn Bhd, is the master developer of this largest private sector development in South-East Asia. The Company perceives the IDR Masterplan as the catalyst to expedite the development of its projects that have been planned since 1993.

//

[edit] Background of the Development

Nusajaya’s planning was done in the mid 1990’s when the Malaysia Singapore Second Crossing (now known as Malaysia-Singapore Second Link) was in the planning process. The land resultant in the vicinity of the development of the Second Crossing Expressway and the Johor Bahru Expressway (components of the Second Crossing) was inevitably planned for urbanization to generate income for the economy of the adjacent area in particular and for Johor in general.

However, the regional financial crisis in 1997 took its toll and set the development back by several years. In 2003, there was a restructuring of the land use. A revised Master Plan approved by the Johor State Government formulated a framework that included several catalyst developments that were deemed necessary to kick-start Nusajaya’s growth.

These catalyst developments which are pivotal to Nusajaya’s evolution as a regional city form the backbone of the IDR Masterplan. As the area within Nusajaya’s vicinity is underdeveloped in comparison to other parts of South Johor, it provided the opportunity for an innovative master planning and infrastructure development that caters to global market demands. With development-ready, contiguous land, Nusajaya has the flexibility to be the main driver of the IDR and the trail-blazer for the Ninth Malaysia Plan roll-out.

About the Developer

The master developer of Nusajaya, UEM Land Sdn Bhd (UEML), was incorporated in Malaysia on October 7th 1982. It is a wholly-owned subsidiary of UEM World Berhad, a diversified public company listed on the Main Board of Bursa Malaysia which had undertaken various mega national-interest projects namely the Kuala Lumpur International Airport, North-South Expressway and National Sports Complex. UEML aspires to be the premier developer in township, property and facility management in the South East Asian region and sees itself as a global community builder.

Johor State New Administrative Centre (JSNAC)

The JSNAC at Nusajaya will be an integrated development of Johor State and Federal government department offices that spans 320 acres (1.3 km²)with landscaped gardens and parks. JSNAC’s milieu of state and federal government complexes within one area will contribute to facilitate the government machinery’s efficiency befitting the status of a modern and progressive administration. The components that will enhance JSNAC as the seat of government for Johor state are the Dewan Negeri Johor – State Assembly, Menteri Besar & State Secretary Complex, Dataran Mahkota ceremonial plaza and the State Government Departments Complex that will be completed by September 2007 during Phase 1. The development of the mosque and government quarters under Phase 2 is in its final design stage whilst the Federal Government Department Complex is scheduled for completion during Phase 3.

Southern Industrial and Logistics Clusters (SiLC)

SiLC is a 1,372 acre (5.6 km²) industrial park focusing on developing the value chains of integrated “clean” industrial clusters of three major areas – Advanced technologies, Nutrition & Health Industries and Logistics. Aimed at housing local and foreign high technology companies, SiLC is distinctive by focusing only on more advanced industries but not limited to biotechnology and semiconductor. Its close proximity to two international airports and cargo hubs as well as four seaports both in Johor and Singapore is a value-adding advantage. As an international gateway, this key logistical factor adds soaring value to the business activities of industry players. The overall development will be developed in phases spanning up to 10 years. Completion of infrastructure construction is expected to be in November 2007.

Medical City

The Medical City is a niche development tailored specifically to meet the increasing regional demand for better healthcare services and wellness. A Medical Park within the City will focus on meeting the immediate healthcare needs of the growing local and surrounding population within Nusajaya that is currently an unserved market.

As an integrated development, the facilities within the Medical City shall cater to the three distinctive areas under the health spectrum, namely:

 modern medicine,  traditional and complementary medicine (TCM), and  wellness

The Medical Park, spanning 67 acres, will provide a hospital that will be operated by a regional healthcare provider, a health screening centre, a government-run polyclinic, a general practitioners’ suites complex, a specialists’ suites complex, a nursing college and facilities for traditional and complementary medicine as well as wellness. Expected commencement of operations for the first private hospital is in 2009.

[edit] EduCity

EduCity, a 600 acre (2.4 km²) education enclave is envisioned as “A Community of Best Practices in Academia” and is adopting the best-of-breed approach in bringing world-class education to Malaysia. It is conceptualised to provide a platform for inter-faculties from world-renowned universities working together within a multi-varsity university environment, modeled after the Knowledge City project in Dubai. Under this concept only a few of the world’s best universities from United Kingdom, United States of America, Europe, Canada, Australia, Japan and India have been invited to establish their off-shore faculties in EduCity. An international partnership has been formed and they will be managing the University at Nusajaya which is targeted to commence operation by the end of 2009. It will replicate faculties from America’s foremost technology-based university. EduCity strives to provide quality, global education within Asia’s reach.

[edit] Puteri Harbour at the Waterfront Precinct

Puteri Harbour is an integrated waterfront and marina development that spans 687 acres (2.8 km²) and offers a panoramic view of the Straits of Johor. This waterfront precinct, fashioned after the French Riviera, is adjacent to the JSNAC and offers boundless real estate benefits to the astute investor. It is envisaged to be a unique lifestyle community, offering the experience of exceptional waterfront living, dining, fashion, the arts and culture in a safe and picture perfect natural setting. The Waterfront Precinct will be an ideal location for global or regional commerce and events, with state-of-the-art facilities and a business-friendly environment that will create world-class personal or business investment opportunities. Thus far, approval from the state government and the Department of Environment to build exclusive condominiums, marina, a retail centre and water transportation terminal has been obtained. The Waterfront Precinct will be developed in phases spanning 15 years and is estimated to be completed in 2021.

[edit] International Destination Resort

The IDR is envisioned to be a complete destination resort anchored by an “international standard” or “international brand” theme park and other themed attractions with great emphasis on strong brand identity. The development components include two theme parks – an anchor theme park and a secondary theme park, a water park, hotels, resort real estate, one or more golf courses, a large value retail centre, two smaller retail or restaurant districts and a marina. This prospective tourism magnet will appeal to residents, and domestic as well as international tourists, targeting mainly the Southeast Asia, South Asia, the Middle East and the East Asia Market. At its inception, the IDR is expected to attract four million visitors per annum.

[edit] Residential

Residential areas are planned to cater to low, middle and high income buyers. These residential areas will be complemented with modern amenities, safety and security features, comprehensive infrastructure, business opportunities and pleasant environment. Among the residential areas being developed are Nusa Idaman, Ledang Heights and Horizon Hills. Each housing estate will have its own unique features to appeal to the discerning needs of its target audience. When completed, Nusajaya is expected to be the home for a cosmopolitan community of 500 000 residents.

Nusajaya the regional city is poised to be a world-class city that embodies a diversity of signature developments – making it the most desired city to live, work, play, enhance and enrich one’s life.

[edit] Rumours

There are rumours that a Disneyland theme park may be built in Nusajaya[1]. Malaysia’s Prime Minister met a group which showed interest in setting up a Disneyland in May 2006.

However, Disney dismissed the reports afterwards.

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1900 – 2200 (Singapore Time) 1100 – 1400 hours UTC FM (Singapore only): 938 Live (Mon to Sun) 8.00pm to 9.00pm or Shortwave 6150 KHz (49M Band) 6080 KHz (49M Band) Campus on 938LIVE goes to … >> your say… Iskandar Development Region in Johor Malaysia May 19, 2007 Coming up in this edition of Perspective, join me, Melanie Yip as I visit the Iskandar Development Region in Johor, Malaysia. It’s billed as Malaysia’s “economic super corridor” and will cost some US$105 billion in investments over the next two decades. The Iskandar Development Region or IDR is the latest economic project initiated by the Malaysian government. When completed, the 2,217 square kilometre economic zone – which is almost three times the size of Singapore – will boast facilities that will include an education hub, a medical hub, a new Johor State Administrative Center, an international destination resort, and residential buildings. To get a better understanding of the business prospects in the IDR which will focus on manufacturing and services, a delegation of some 50 people from the Singapore International Chamber of Commerce travelled to the Iskandar Development Region on Friday. The visit was organized by the Malaysian High Commission, the Malaysian Trade Commission and the Malaysia External Trade Development Corporation days after the Prime Ministers of Malaysia and Singapore agreed to set up a joint ministerial committee to look into areas of cooperation in the development of the region. copyright Radio Singapore International/do not reproduce without permission The business delegation, which was accompanied by the Malaysian High Commissioner to Singapore, Dato N Parameswaran, met with representatives from Malaysia’s investment holding arm Khazanah Nasional, Nusajaya – which will become Johor’s new administrative center and also from the Tanjung Pelepas port. Foreign investor interest is high, reveals Chairman of the Port of Tanjung Pelepas, Datuk Mohd Sidik Osman as he compares how the IDR differs from other economic zones in Malaysia. MSO: In a way, it is the first regional growth area being developed by the government, it has tremendous prospects because it is well located as I said earlier, it is close to Singapore. It is supported by good infrastructure, by ports and by airports. If you do it well, if you take care of all the fundamentals like governance, less bureaucracy, I think things will go well. There have been a few parties that want to ask us about the IDR and how we are supporting IDR. Basically, the land behind the port is a valuable land and they are interested in the land for investment. There are also Singaporeans which are interested. There are companies which are looking to import products from Malaysia, they want to do the processing around here before it goes to Singapore. It is good that there is some good cooperation (between the two countries) and working relations supporting the IDR project. Malaysian High Commissioner to Singapore N Parameswaran speaks with journalists Speaking to Singapore journalists after touring Johor’s new administrative center, Nusajaya, Malaysia’s High Commissioner to Singapore, Dato N Parameswaran highlighted the importance of strong economic cooperation between Malaysia and Singapore. NP: We must work on something which is mutually advantageous, which is a direction that the two Prime Ministers are going. But Singapore has been our great investor, and one of our greatest investors because of proximity. So it is natural to welcome investors from Singapore. In fact, they have been here. Most of the factories you saw in the first phase of industrial development are owned by Singaporeans. And the first one here was set up in SILC (Southern Industrial and Logistics Clusters) is also Singaporean. So they have been naturally coming here from before, even before the IDR. HG Metal bought such a massive area here to set up. The movement of Singapore investments into Malaysia has been there all the time especially SMEs and all. But I must say, now the politics are very good, things have changed, and our relations have picked up a lot and I think it will be good if Singapore comes. copyright Radio Singapore International/do not reproduce without permission Philip Overmyer, Executive Director of the Singapore International Chamber of Commerce was impressed with what he saw at the Iskandar Development Region, which he feels show the level of commitment by the Malaysian government to make this project succeed. PO: Nusajaya Center, there is just a lot more there than I thought it would be. Certainly there will be residential facilities (when we drove by) were quite impressive. I was amazed at the amount and the extent of which they are already starting to develop this area into what looks like is going to be an important center. It is very clear that Malaysia is committed to the development without a doubt, massive infrastructure projects are underway. The areas that still need more clarification sounds like they will come are things that have to do with incentive, the nature of what that means, whether you have to be in a physical place to get an incentive, how much the incentive will be. But all of that apparently will roll out over the next few months. So I expect now, companies will be waiting what really is it are the government incentives to go there. copyright Radio Singapore International/do not reproduce without permission Sharing the same sentiments about government incentives is Mr A.Y Angullia, Managing Director of ST & T International Pte Ltd – a company which deals with hospitality and leisure products. He hopes to identify a suitable site for his company’s next hospitality project. Mr Angullia spoke of the factors he needs to consider before making an investment. AYA: I already spotted one area and that is the Puteri Harbour. That will be very interesting to meet the needs of the holiday makers. And people who want to stay longer but with minimal expenditure. So when there is joint government cooperation, this can support Singapore and Malaysia tourism in a perfect manner. If a tourist wants to lay back and relax, if they prefer to, they can come to Malaysia to get chalets or bungalows in this area. They can have this kind of experience, and they can also have a boat transfer from Puteri Harbour to Singapore very easily. It is only a very short distance from Singapore using a water bridge which involves a water ferry or sea transfer. This is only our feasibility study. We will look into deeper and fulfil our purpose by looking for contacts, to get the right person to speak with to get more info, to work out the details like study the soil, the ground, the environment, the water, the air, we have to do deep studies. We also need to look into the supplies of good food. Good food means high quality water, high quality fruits and vegetables, meat supplies, how can they maintain a good quality. copyright Radio Singapore International/do not reproduce without permission When Malaysian Prime Minister, Abdullah Ahmad Badawi met with Singapore’s Prime Minister Lee Hsien Loong in Langkawi recently, the Iskandar Development Region figured prominently in the two leader’s discussions. Mr Badawi warmly welcomed Singapore investors to the IDR, and likened Singapore’s investments in “Johor’s economic super corridor” to Hong Kong’s influence in the development of Shenzhen in China. Mr K K Lam is Director of the Hong Kong Economic and Trade Office based in Singapore. He offers his views. KKL: I have a lot of confidence that the close proximity between Singapore and the Iskandar Region is definitely a positive element, in the same sense that Hong Kong and Shenzhen were able to take off during the years when Shenzhen was developing quickly into a modern metropolis, and an industrial and services center. One of the reasons why I came today was to see if there are opportunities for Hong Kong investors to take part in the future development inside the Iskandar Region. I think since some of the Hong Kong investors must have been involved in the evolution of the Shenzhen Special Economic Zone, I am very confident that apart from making investments in the future, they will also bring in the experiences to bear on the developments in the Iskandar Region. copyright Radio Singapore International/do not reproduce without permission Head of Economics at United Overseas Bank, Jimmy Koh feels that two factors will be crucial in fostering greater economic engagement by Singapore companies into the Iskandar Development Region. One is the political environment. JK: I think in terms of the political environment, it is extremely conducive. In fact, I think it is the best time over the last 20 years in terms of the political atmosphere and over the last one week, the durian diplomacy definitely helped further right because most of the economic cooperation that failed to materialize as much as participants would like to see is always this issue of political will. And I think in the current situation, the political expectations seem to be a lot more conducive, a lot friendlier. Another factor is competition posed by globalization, making it a necessity for Singapore companies to balance their production with business costs. The Iskandar Development Region, he adds, can provide Singapore companies an alternative location for out-sourcing. JK: Companies moving from various countries out of their borders. But right now, whether you like it or not, they will move out. You either let them move out of Singapore into the neighbouring countries which they have been doing, or they will move to China. It is the globalization force that is at work that has probably aided this. In fact, through conversations with some companies today, Singapore companies, be it the MNCs or SMEs, some of them have been here for the last couple of years. From that perspective, it is extending what the private sector has done on a regulatory basis. So over time, those companies that have been a little bit careful choosing China, they will probably choose this region as another alternative. We talk about a global environment of outsourcing, you have China, India and even Vietnam. You have 2 + 1. So this Iskandar Region can be the 2 + 1 + 1 as another alternative of outsourcing for companies in Singapore etc. Following the Langkawi retreat attended by leaders of both Singapore and Malaysia, both countries have agreed to set up a joint Ministerial committee that will study and facilitate the possibility of Singapore investments going into the Iskandar Development Region. A strong Singapore presence in Iskandar will reap benefits for both countries. This will augur well for the IDR’s development in the long term .   Page(s): 1 If you missed any of our newslines, you can search our archives!

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The Malaysian Deputy Prime Minister, Najib Razak, visited Singapore this week and on the agenda was the Iskandar Development Region in Johor State. Mr Najib held meetings with potential investors in the IDR and later publicly announced a crackdown on crime in the state. The plans for the state are massive – a business city modelled on China’s special economic star Shenzhen.

  Listen  |  Audio Help

Presenter/Interviewer: Bo Hill
Speakers: Dom LaVigne, executive director, American Chamber of Commerce Singapore; Manu Bhaskaran, head of economic research, Centennial Group Singapore

HILL: On paper it would appear Malaysia is sitting on a goldmine – the development of Johor state, taking advantage of its location in the Malacca Straits, a major interchange in the transport route from Africa and Europe to Asia, the Pacific and the United States.
Just a 30 minute drive from the heart of Singapore, the city proposed by the Iskandar Regional Development Authority will be four times bigger than Hong Kong. A city that a report commissioned by the Johor investment agency said would add 2 per cent growth to the States economy. And, as executive director of the American Chamber of Commerce in Singapore, Dom LaVigne points out, there are a lot of potential investors watching the development closely.

LaVIGNE: Approximately 80 per cent of our 2500 members have regional responsibilities and there’s obviously a great interest in potential investment in Malaysia. And I think people are curious to learn more about the Iskandar Development Region and what the implications will be for US businesses in Singapore.

HILL: But, Mr LaVigne says, one of the biggest obstacles at least for American investors will be the outcome of stalled free trade negotiations between Malaysia and the US.

LaVIGNE: If an FTA with the US could be completed that could certainly enhance the idea and other potential investment zones that Malaysia is putting into practice. In some sectors there are some local ownership restrictions requiring foreign investments coming in, certain percentage to be owned by local businesses. That could be something that is a concern for foreign investors. Investors would like the flexibility they enjoy in Singapore.

HILL: Competing with Singapore’s powerhouse economy and foreign investment pull could be difficult, but Mr LaVigne says the potential to set up management in Singapore, and operations in Johor, may be the biggest selling point. Manu Bhaskaran, the head of economic research at Centennial Group Singapore, says a lot depends on what happens in Singapore and between the two country’s governments.

MANU: For the success of the Iskandar Development Region in the way it’s been conceived and planned, I think a significant contribution from Singapore in terms of investment, in terms of exchange of activities, flow of people, is really vital.

HILL: Singapore, a Malaysian orphan which became the biggest economy in the region, doesn’t always get along with its neighbour. And Johor state, just a bridge away from Singapore, is often in the firing line and often because of crime. A decade ago, Singapore’s outspoken leader, Lee Kuan Yew, said Johor’s shootings, muggings and carjackings were notorious. And a decade later, crime in Johor has become such an issue that it was on the agenda when deputy prime minister Najib Razak visited Singapore this week. But Manu Bhaskaran says ultimately the crime rate will not influence foreign investors.

MANU: Nobody can deny this is a problem in Johor. The guys behind the Iskandar Development Plan has recognised that and they have significantly increased their budget allocation for security. And I think that message of concern came across when the deputy PM of Malaysia during his visit Singapore the last couple of days. It hasn’t deterred a large amount of foreign investment from Singapore, Taiwan, into Johor. So it is a problem, but it’s not a crippling problem so it shouldn’t be exaggerated.

HILL: Dom LaVigne agrees and says the crime is often petty and no worse than many cities in the region or globally. He says what will be crucial to attract investors is the quality of infrastructure and predicts the existence, or lack of, an international school will play an important role in attracting business relocation to Johor. Manu Bhaskaran says border movement could be the decider.

MANU: I’m not how they will do it but customs formalities will need to be sorted out. But that’s one thing I will be looking at personally, to see if this Iskandar thing really going to take of which I think it will, but they will have to sort out the seamless movement of people first.

Prime Minister Abdullah Ahmad Badawi said the state neighboring Singapore was expected to draw investors from the Middle East, Americas and Asia. “Our 20-year plan is to attract $105 billion, and 50 billion ringgit ($13.6 billion) in the next five years,” he told reporters after hosting the inaugural meeting of the Iskandar Regional Development Authority, which oversees development of the region.

“It will be one of the global new growth centers. Therefore we have to be competitive to draw investors. It has good potential to be successful,” he said.

The project, called the Iskandar Development Region (IDR), will be 2.5 times the size of Singapore and cover an area of 2,217 square kilometers (853 square miles). “The IDR will become the largest urban development that Southeast Asia has seen to date,” Abdullah said later yesterday at the launch of the flagship Nusajaya project in the development region. He said he wants the area to compete for investments with Dubai, Shenzhen, Bangalore and other global centers.

Malaysia has long dreamed of turning sleepy southern Johor state into a major metropolis across from booming and orderly Singapore. But the Malaysian state’s shabby capital Johor Baru has struggled to shrug off a reputation for crime and disorder.

Kishu Tirathai, a businessman and a member of the IDR’s advisory group, told AFP it “will not be difficult” to attract $105 billion. “Planning has been done. The physical structures are coming up. The main challenge now is marketing and implementation,” he said.

Abdullah previously said the government will inject 4.3 billion ringgit while Khazanah Nasional, the state investment agency, will pump in 3.4 billion and the private sector will provide 10 billion in the early phase of the plan, previously called the South Johor Economic Zone.

But Abdullah, who is also the finance minister, warned that for the plan to be successful, Malaysia had to work hard, be competitive and was prepared to hire foreign experts to help realize it. “We have the benefit of low cost. The population has technical skills. We should be ready to employ international professionals whenever it is needed,” he said in Pulai, a town inside the development area and west of Johor Baru.

Abdullah said “good governance and accountability” were also needed to make the area attractive, adding that incentives were being drawn up to woo investors. He did not elaborate. Two companies linked to the travel and tourism industry yesterday signed an agreement to build a hotel and a resort in the region.

Singapore-based Amanresorts Limited will develop a luxury resort expected to be completed in 2009 and aviation tycoon Tony Fernandes’ Tune Hotels will put up a budget hotel by early next year, a document issued by Khazanah Nasional said.
]]> http://sjer.wordpress.com/2007/06/06/malaysia-to-attract-105bn-investment/feed/ 0 coach99 http://sjer.wordpress.com/2007/06/06/how-about-badawi-development-region-for-penang/ http://sjer.wordpress.com/2007/06/06/how-about-badawi-development-region-for-penang/#comments Wed, 06 Jun 2007 07:45:42 +0000 coach99 http://sjer.wordpress.com/2007/06/06/how-about-badawi-development-region-for-penang/ ]]> How about “Badawi Development Region” for Penang?

_______________
Media Statement
by Ronnie Liu

__________________

(Kuala Lumpur, Sunday) : Iskandar Development Region (IDR) is seen as “Shenzhen for China” to many businessmen. It’s in a way a special region for development with special incentives unavailable in other Malaysian economic centres. Some businessmen has described the IDR as “one nation,two systems”. Because only investors in IDR enjoys the exemption of the usual 30% bumi quota.

Following the disclosure of some special incentives schemes by the prime minister, one of the advisors of IDR Tun Musa Hitam openly proposed to do away with the usual 30% racial quota. It was reported in the press that the PM has decided to accept the proposal but it was said that the exemption was meant for foreign investments. Another report said that the exemption was only meant for six selected sectors, i.e. creative industries, logistics, education, tourism, financial advisory and consulting and health care. It was not for all industries. The IRD Authority has not explained why only six selected industries were given the special exemption and why these six were selected.

It was also not clear at this point whether the exemption also covers domestic investments. We hope it does cover local investors for all fairness; if the answer is otherwise, the local investors may have to set up companies in Singapore and use them as their investment arms for the IDR. That will be the biggest joke of the day!

IDR, as a concept, should work for the southern region. It will certainly attract some if not many investors from Singapore and Indonesia. Those who believe the IDR is flood-proned would not come. Likewise with those who dislike the racial quota(Remembered? Only six industries were exempted according to Najib)

But how about the northen region of Peninsular Malaysia? Umno has been complaining day and night about Penang being left out as an economic centre and how the Malays were being marginalised in Penang. Why don’t we set our eyes on Balik Pulau, which is said to be backward with no development?

Why don’t Abdullah Ahmad Badawi kick start a similar plan for Balik Pulau? Call it Badawi Development Region and provide similar incentive schemes and exemption of racial quota like what they did with IDR. Such “Shenzhen-like” special development region should be attractive to investors from Thailand and India. after all, Penang is a natural port with a great potential nothing less than South Johore.No?

A businessman I know asked me a question which even AAB and Najib would not dare to answer – why don’t we do away with the 30% bumi quota to promote economic development throughout Malaysia? It’s a question only opposition leaders like Anwar Ibrahim and Lim Kit Siang can answer.

Speech to DAP Johor Baru branches

by Lim Guan Eng

(Johor Baru, Wednesday): The Iskandar Development Region (IDR) – an area encompassing 2,217 square kilometres, which is three times the size of Singapore – appears long overdue. Whether the aspirations of the IDR to attract RM 382 billion over the next 20 years in foreign investment becomes a reality depends on whether all Malaysians are allowed to participate in accordance with international standards of good governance, transparency and accountability. 

1.    Foreign Investment

Most importantly, IDR’s success is critically dependent on foreign investment, or a projected RM382 billion over the next 20 years.  This amount is more than the entire RM245 billion foreign direct investment (FDI) the whole country received over the past 20 years. 

The success of IDR will be equally dependent on investment from Singapore.  However, Singapore’s investment in Johor has dropped to an alarming level. In the first eight months of 2006, Singaporean investment in the state stood at only RM208.9 million. This is only a mere 11 percent of the total investment from Singapore in 2005, according to statistics given by the Johor State Investment Centre (JSIC).  Last year, the Singaporean investment stood at RM1.9 billion. 

And it is not just the investment from across the Causeway that has gone down. The FDI into the state too has hit a stumbling block.  Until August in 2006, FDI to the state stood at RM2.4 billion – just 44 percent of the total amount which flooded in last year. Even in 2005, when Johor received record FDI at RM5.9 billion, this amount is a far cry from an average of RM19.1 billion required to make IDR a success. 

2.    Crime & Safety

Crime is such a serious problem in Johor that Singaporeans think Johor is not a safe state to work, live and study. The crime index in the country released by the Royal Police Force has worsened from 156,315 cases in 2003 to 226,836 cases in 2006 – a sharp rise of 45.1% in the past three years when the police force had set the target of reducing the crime index by five per cent each year. 

In the past three years, violent crime had skyrocketed by 85.8 per cent from 22,790 cases in 2003 to 42,343 cases in 2006, with rape cases registering the highest increase of 65.5 per cent – reaching an average of 6.7 women raped daily in 2006 compared to an average of four women raped daily in 2003. In 2003, an average of 1.5 persons were murdered daily; but in 2006, this has increased to an average of 1.65 persons murdered daily. 

On 10^th April, a six-month pregnant woman lost her baby after she was attacked by four robbers in the toilet of a petrol station in Jalan Tebrau. Just last week, a 21-year-old clerk was robbed and brutally stabbed to death as her father slept in another room at their double-storey house in Taman Skudai Baru. And just 2 days ago, a 14-year-old girl who befriended a stranger at a telephone booth was raped by him in Tanjung Langsat. 

Hence it is unsurprising that both investors and tourists, particularly from Singapore has been dissuaded or at best, lukewarm towards investing and spending their dollars in Johor. Unless crime can be addressed, investment will be affected by the perceived unsafe investment climate. 

3.      All Hardware Of Physical Development Of Buildings Without The Software Of Developing Human Resources?

Is the IDR’s emphasis on construction projects another example of first world infrastructure but third-world maintenance? The Government must learn from the lack of success at Cyberjaya, which was a special economic zone dedicated to high-technology related activities such as software development.   

Similarly, we must learn from the total failures of BioValley and E-Village which were dedicated to biotechnology and multimedia content creation respectively.  Despite having investment millions in these projects, their emphasis on construction and property development without a properly thought out strategies for the actual projects have resulted in their failures. Otherwise, some of the IDR plans for another dedicated ICT-hub, theme park and medical hub might just end up as ghost towns. 

4.    Government Policy Consistency In Abolishing NEP Rules And Quotas

The government’s commitment towards exempting the IDR from New Economic Policy(NEP) rules and quotas is doubtful following assurances that bumi businessmen would not be left behind. By assuring that the exemptions from NEP rules will not affect bumi participation is in fact stating that nothing will stand in the way from ensuring that the present rules of bumi equity participation still applies. 

Such failure to subscribe to international standards of merit, competency and competitiveness will be too big an obstacle to overcome in making the IDR an international magnet for investment and trade. The government must be firm in applying the concept of “one country, two systems” where any investor whether local or foreign will not have to play by NEP rules and survival depends on one’s technical know-how rather than know-who’s. 

5.    Unequal Treatment of Foreign vs Local Investors

While the Government has recently trumpeted its move to remove the 30% bumiputera quota requirement for investments in the IDR, closer scrutiny leaves much to be desired. The proposed waiver of the NEP’s 30% equity requirement would only involve investments in two specified areas in the IDR, encompassing a small area of 1,780 hectares and with the caveat that foreign investors there must have business dealings outside the country. 

This means that such a policy is not applicable to local investors, and by definition, local non-bumiputera investors.  The policy is perplexing because domestic investments can bring equal amounts of economic returns and contributions to the region and country when compared with foreign investors.  Hence the discriminatory policies practiced by the Government clearly marginalises local non-bumiputera businessmen. 

The 5 five points highlighted above are the only challenges and issues facing our government’s plan to make IDR a success.  However, they clearly demonstrate the uphill battle which the government face and the lack of political will which is necessary to make the project a success. Barisan Nasional NEP – guided government has been obsessed with the hardware of development – property, heavy industry, mega-infrastructure projects, ports, bridges and airports – but neglected the human software needed to compete in a modern global economy.