20 August, ISKANDAR MALAYSIA – Iskandar Malaysia has secured a total cumulative committed investment of RM302.09 billion, from 2006 to June 2019, of which 57% or RM172.3 billion has been realised. For the first six months of 2019, Iskandar Malaysia has successfully secured committed investments of RM16.75 billion. This latest investment figure translates to an impressive Compound Annual Growth Rate of 9.7% for the past 5 years.
The region recorded RM116.70 billion of foreign investment from 2006 to June 2019 of which 47% of it come from the manufacturing sector and 53 % from the services and other sectors. China is the lead country in terms of foreign investment with RM40.65 billion worth of investment, followed by Singapore and the US with an investment of RM20.57 billion and RM8.11 billion respectively.
“Despite various global and local challenges, Iskandar Malaysia continues to rake in strong foreign and domestic investments due to its geographical and economic advantages. However, I believe strongly that further improvements in connectivity between the region and neighbouring Singapore plus nurturing a new promoted sector such as ‘Aerospace’ can further boost Iskandar Malaysia’s economic and social growth,’ said YAB Tun Dr Mahathir Mohamed, Prime Minister of Malaysia and also the Co-Chairmen of IRDA, during IRDA’s Members of Authority (MoA) meeting recently.
More than 300,000 people cross the Johor-Singapore Causeway every day and having better connectivity that reduces traffic congestion can help to increase investments from Singapore, increase the quality of local talents, increase opportunities for local SMEs, increase the number of ‘higher spending’ tourists, and enhance safety and security.
Iskandar Malaysia Bus Rapid Transit (IMBRT) is another important project reflecting the region’s shared prosperity effort. Reaching 90% of the area is Iskandar Malaysia once it is completed, this public transportation system will not only address the issue of connectivity but also support towards improved quality of living and managing cost of living.
Manufacturing sector which comprises of electrical and electronics (“E&E”), food & agro-processing and petroleum & chemical products once again remained the leading sector and continue to be the backbone of the promoted sector with a total cumulative committed investment of RM71.9 billion or 24% of the total investment.
The services sector contributed RM27.65 billion or 9% to the total cumulative committed investment in Iskandar Malaysia with a CAGR of 13.12% for 5 years. Logistics is the leading sector with RM8.56 billion cumulative committed investment followed by tourism at RM7.86 billion and healthcare at RM4.41 billion.
“Iskandar Malaysia has definitely put Johor onto the global map as an investment centre, especially in the Manufacturing sector. Clearly, the region together with the rest of Johor is the best candidate to complement neighbouring Singapore and hosts major industries such as logistics and tourism amongst others, in terms of land and space availability,” commented YAB Datuk Dr Sahruddin Jamal, Menteri Besar of Johor, who is also the Co-Chairmen of IRDA.
Sahruddin added that the growing investments are expected to have a spillover benefits to the Rakyat in many ways and this is very much in line with some of the eight thrusts of the state’s Sustainable Development Plan 2019 – 2030 including implementing sustainable development; efficient, integrity and democratic governance; trade zone and digital community; and human capital.
According to YBhg Datuk Ismail Ibrahim, Chief Executive of Iskandar Regional Development Authority (IRDA),” It has been 12 years since its inception in 2006 and Iskandar Malaysia grows closer to attaining its vision of becoming a strong and sustainable metropolis of international standing. In achieving this vision, the Rakyat must be the ultimate beneficiary economically, socially and environmentally. That is why proposals such as reducing congestion at the Causeway is key and a present priority of the government.”
According to Ismail, social development and inclusiveness have become more important to the government, especially with the ‘Shared Prosperity 2030’ economic model, that issues such as Technical and Vocational Education and Training (TVET) and financial literacy were also discussed at this recent meeting.
Ismail explained that it requires the support and teamwork from all stakeholders – the government and the private sectors plus the community to power and build a strong and sustainable region and expressed his gratitude to all the Prime Minister of Malaysia, the Menteri Besar of Johor and all the parties for their continuing support.