Malaysia - AGROBAZAAR LAUNCH Opening New avenues of Cooperation - Sun Media Pte Ltd
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A SPECIAL PUBLICATION BY THE High Commission of Malaysia, SINGAPORE
Malaysia
O P P O R T U N I T Y
2014
Malaysia on
the Right Track
Malaysia- Singapore
Relations Thriving
Iskandar Malaysia -
A Sparkling Success
AGROBAZAAR LAUNCH
Opening New Avenues
of Cooperation
37 - 43, SULTAN GATE SINGAPORE
“1st Malaysia agro-based specialty outlet offering
tropical fruits, quality agro-based products, Malaysian
favorite cuisine and premium coffee. Promotional and
sales hub for Malaysia’s agro-based products”
GPS Coordinate
Lattitude: 1.3014538
Longitude: 103.860761
Contact Us:
Telephone : (65) 6391 9841
Fax : (65) 6391 9842
Website : www.agrobazaarmalaysia.com.sg
Facebook : Agrobazaar Malaysia
Twitter : @MyAgrobazaarSg
Instagram : @MyAgrobazaarSg
Opening Hour : 10 am - 10 pm
Contents
Message Opportunities
02 Malaysian High Commissioner’s Message 33 The World’s Islamic Finance Marketplace
36 Booming Global Market for Halal Food
Bilateral
04 First-ever Overseas Agrobazaar Tourism
06 Bilateral Synergy 38 Visit Malaysia 2014 Campaign Successful
10 Unsurpassed Cooperation 39 Top Ten Must-try Dishes of Malaysia
40 New Record for Tourism Industry
Investment
13 Figures at the Glance Culture
14 Iskandar Malaysia Attracting Investments 42 CausewayExchange: Arts and Culture Extravaganza
16 Nusajaya Tech Park, Full Speed Ahead
17 The Best of Both Worlds Last Page
18 10 Reasons to Buy Properties in Iskandar 44 Editor’s Note
24 Master-planned for Wellness 44 Malaysian Organisations in Singapore
25 Sunway Berhad: Malaysia’s Builder of the Year
Education
26 EduCity@Iskandar Exceeds Expectations
30 MDIS Extends Global Footprint in Malaysia
PUBLISHER Sun Media Pte Ltd EDITOR-IN-CHIEF Nomita Dhar Editor Priya Ramakrishnan Feature Writer Darlene Machell Espena
ADVERTISING & MARKETING Jamie Ho, Muneera Iqbal CREATIVE PROJECT MANAGER Valerius R. Boenawan PRINTING Stamford Press Pte Ltd
EDITORIAL OFFICE Sun Media Pte Ltd, 20 Kramat Lane, #01-02 United House, Singapore 228773
Tel: (65) 6735 2972 / 6735 1907 / 6735 2986 Fax: (65) 6735 3114 E-mail: admin@sunmediaonline.com URL: http://www.sunmediaonline.com
MICA (P) 209/07/2014
This commemorative special is published under the advocacy of Mr. Dato’ Husni Zai Yaacob, High Commissioner of Malaysia, Singapore.
© Copyright 2014 by Sun Media Pte Ltd. The opinions, pronouncements or views expressed or implied in this publication are those of contributors or authors. They do not necessarily
reflect the official stance of the Malaysian authorities nor their agents and representatives. The aim of this publication is to guide and provide general information. While every effort
has been made to ensure the accuracy of all information contained, the publisher cannot be liable for loss incurred in any way whatsoever by a company or a person relying on
this information.
For further inquiries, contact: High Commission of Malaysia to Singapore, 301, Jervois Road, Singapore 249077 Tel: (65) 6235 0111 Fax: (65) 6733 6135
Website: http://www.kln.gov.my/web/sgp_singapore/home
MESSAGE
Message from
Dato’ Husni Zai
Bin Yaacob
High Commissioner of
Malaysia to Singapore
T
his past year has been most greater linkages and connectivity across
challenging for Malaysia. The the borders, not just between physical
two unprecedented incidents infrastructures but also people-to-people.
involving MH370 and MH17 In 2013, Singapore was Malaysia’s
will live long in our memories as tragedies second biggest trading partner. Singapore
that tested our patience and courage. remained to be the top tourist generating
Through the pain and tribulation, our market with 13.1 million Singaporean
people and nation have endured and tourists visiting Malaysia in 2013. In terms
Malaysia- come closer together. These tragedies have
brought forth the best of our nation; our
of investment, Singapore was the third
largest investor in Malaysia and the biggest
Singapore own stories of forbearance, sacrifice, love,
courage and unity.
investor in Iskandar Malaysia in 2013.
Despite the great challenges faced
On the auspicious occasions of the by Malaysia, the country has emerged
relations Malaysia’s 57th National Day on August 31
and 51st Malaysia Day on September 16, I
stronger. The Malaysian economy
expanded by 6.4 per cent in the second
have grown would like to pay tribute to all Malaysians,
across all divides and diversities, for their
quarter of 2014, against 6.2 per cent in
the first quarter this year. The robust
spirit and courage in dealing with these economy has largely been attributed to the
stronger over disasters. I am proud to be part of that
humanity.
success of our economic transformation
programmes. Malaysia’s commitment
time especially Closer to home, Singapore was one
of the earliest countries to extend
to economic transformation has also
garnered international recognition.
condolences and offer support to us. According to the latest World Bank Ease
in trade, Malaysia is grateful for all the support it
has received from Singapore. Malaysia
of Doing Business Report 2014, Malaysia
surged to 6th position from 12th position
investment, and Singapore are two close neighbours
that have their own priorities and
among 189 economies. The Institute
for Management Development’s (IMD)
concerns. However, when tragedies World Competitiveness Yearbook 2014
tourism and strike, we should be able to come together
without reservation and support each
has ranked Malaysia from 15th position
to 12th position among 60 countries. The
people-to- other. Relations are made not just about
promoting economic interest but also of
jump is a testimony of the international
community’s growing confidence in
goodwill, solidarity and camaraderie. Malaysia’s ability to transform itself into
people relations Malaysia-Singapore relations have
grown stronger over time especially in
that of a high-income nation by 2020.
To all my fellow Malaysians, I wish a
trade, investment, tourism and people- Happy Independence Day and Malaysia
to-people relations. The past few years Day which falls on September 16 . I wish
have seen unprecedented growth in all to take this opportunity to thank all
spheres; be it political, economic or social, Malaysians in Singapore for their kind
cutting across all sections of society. support and cooperation. To all my
Both sides have decided to be pragmatic, Singaporean friends, congratulations on the
concentrating on win-win and doable 49th National Day celebrated recently. May
solutions. Through this approach, we have our bilateral relations continue to deepen
seen tremendous growth in our trade, and strengthen further in the coming years.
investment and tourism. There is also Salam 1Malaysia.
2 Opportunity Malaysia
BILATERAL
The two Prime Ministers admiring a picture of
them enjoying durian
First-ever overseas
Agrobazaar launched
Setting up the fruit and food bazaar in Singapore sweetens bilateral ties and paves the
way for greater business opportunities
V
ery few retail establishments the leaders as well as between ministers
have had the honour of and senior officials remain open then both
having two prime ministers nations can work well together.
as guests of honour at the The bazaar also features a café and a
official opening but then Agrobazaar rooftop restaurant and is the first of several
Malaysia is rather extraordinary. It was overseas outlets FAMA plans to set up in
Prime Minister Dato’ Sri Najib Razak countries such as Hong Kong, London and
who mooted the idea that Federal China. The bazaar sells fruit like durians,
Agricultural Marketing Authority mangosteens, rambutan, pineapple, and
(FAMA) should make its first foray agro-based grocery items. These exclusive
overseas in Singapore. On August 27, Malaysian exports, said Dato’ Sri Mohd
2014, he and Singapore’s Prime Minister Najib, “are a perfect vehicle to introduce
Lee Hsien Loong officially opened the our cuisine, our culture and our customs”
5,100 sq ft Agrobazaar Malaysia in Sultan into overseas markets.
Gate, off Beach Road. In his speech, the At a press conference a week earlier, the
Malaysian Prime Minister pointed to the Malaysian High Commissioner to Singapore,
shared culinary heritage and said, “We His Excellency Dato’ Husni Zai Yaacob,
may occasionally differ on terminology, told reporters that Singapore was chosen as
but Singaporeans and Malaysians taste Agrobazaar’s first overseas venture because
with one tongue.” of the close proximity and very warm
Noting the friendship between the two relationship between the two countries,
countries in his speech, Prime Minister Lee which he described as being at an “all-time
said that if communication lines between high”. He said he was confident that the
4 Opportunity Malaysia
BILATERAL
His Excellency Dato’ Husni Ms Sharifah Hashim, Deputy Director General of Operations at
Zai Yaacob, Malaysian High FAMA with His Excellency Dato’ Husni Zai Yaacob, Malaysian
Commissioner to Singapore Mr Shukri Ahmad, manager of Agrobazaar High Commissioner to Singapore
outlet would promote Malaysian agricultural district was bustling 24 hours a day and
products in Singapore and also to other there had been “very good response from Exotic Menu
countries as Singapore is a hub for trade and local Singaporeans and tourists since the The restaurant at Agrobazaar
finance. ‘soft opening’ on July 12, 2014”. Malaysia serves equally unique dishes.
Ms Sharifah Hashim, Deputy Director He told Opportunity Malaysia that These include:
General of Operations at FAMA said Malaysian durians were one of outlet’s top • Young Mango Kerabu – slices of
that the new Agrobazaar would become sellers especially the musang king variety young mango in a tangy sauce
“a center for promotion; a centre for which is considered to be the “king of combined with succulent squid.
retailing; and a centre for distribution” as durians”. The bazaar also has other seasonal • Opor Pahang – this traditional
well as an ideal venue to discuss wholesale fruits as well as agro-based products from delicacy of beef, mutton or lamb, and
deals with Singapore supermarket small and medium enterprises. As the fruits eaten with rice is a favourite of the
operators and other high-volume buyers. are sourced directly from FAMA farms, people of Pahang especially around
She further explained that FAMA had quality and freshness are assured, he added. the Royal town of Pekan.
invested about US$6.4 million or S$8 Unique products include Tualong Honey, • Mee Bandung – a popular Malaysian
million in setting up the outlet and for painstakingly collected from honeybee dish comprising noodles with a
marketing and promotion on expectations nests that could be 250 feet (76 metres) delightful gravy prepared from
of annual sales of about S$2 million up on trees in the forests of Kuda Merang chicken stock, mashed potatoes,
starting in 2015. in Kedah. Another one-of-a-kind product tamarind, blended chili and curry
The outlet’s manager, Mr Shukri Ahmad, is the Roti Paratha Durian from Fatihah powder.
said that FAMA decided on Sultan’s Gate Frozen Food Sdn Bhd. The company’s • Dragon Fruit Fried Rice – a deliciously
after checking out 21 locations. He said that managing director, Ms Fatihah Anis Bt fragrant serving of deep-pink rice
the venue, which is near the Malay Heritage Ibrahim said, “It’s the only paratha durian perfectly stir-fried with the iconic
Centre and the Kampong Glam tourist in Malaysia and the world.” fuschia dragon fruit.
Opportunity Malaysia 5
BILATERAL
Iskandar Malaysia
The most visible manifestation of the
strong ties between the two countries is the
Iskandar Malaysia (IM) development zone,
an area three times the size of Singapore
that lies in the southern Malaysian state of
Johor.
The warming of relations has prompted
many Singapore companies to invest in IM.
From 2006 to 2013, Singapore companies
have invested some RM11.04 billion
(US$3.68 billion) into the region. This
makes Singapore the largest foreign
investor in IM, making up 16 per cent of
total foreign investment spread across 300
manufacturing projects and other sectors
such as property, education and healthcare.
These include the Nusajaya Tech Park
and FASTrack Iskandar.
Nusajaya Tech Park is a joint venture
project between Ascendas Land
International Pte Ltd, a Singapore
government-linked company and Malaysia’s
UEM Land Berhad to develop an integrated
eco-friendly technology park in Nusajaya.
The fully landscaped park will focus on
Photo: http://www. singapolitics.sg delivering a built environment for a wide
range of industries such as electronics,
BILATERAL
pharmaceutical and medical devices, food
processing, precision engineering, fast
moving consumer goods, logistics and
SYNERGY
warehousing.
On the other hand, the RM3.5 billion
FASTrack (Motorsports City) in Nusajaya,
Johor is envisaged to be a model automotive
hub. Once completed, it will consist of 4S
(sales, services, spare parts and systems)
Bilateral relations between Malaysia and Singapore have
centres, car showrooms, continental and
never been better. The close rapport between the two Asian spare parts hub, bonded warehouses,
Prime Ministers, Lee Hsien Loong and Datuk Seri Najib Razak retail and al fresco spaces with food and
has set the direction for further strengthening bilateral ties beverage outlets, and an entertainment hub.
A
It will also feature a 4.5km track and 1.5km
t the same time, new initiatives Indeed, the numbers prove that business is karting track designed by world renowned
and iconic projects are taking booming between the two countries. track designer Hermann Tilke.
relations to new heights. In 2013, bilateral trade between The proximity between Singapore and
Both countries’ sovereign Malaysia and Singapore increased by 2.6 IM provides the opportunity for investors
funds, Temasek Holdings and Khazanah per cent to US$57.4 billion from US$57 to position their full value chain of business
Nasional are now involved in joint-property billion in 2012. and manufacturing functions across both
projects in both Singapore and Malaysia. Singapore was Malaysia’s largest export locations, hence spurring the development
Moving forward, the proposed destination for 2013 with total exports of of complementary industries.
construction of the Singapore-Malaysia US$31.9 billion, an increase of 5.1 per cent
High Speed Rail (HSR) will improve from US$30.9 billion in 2012. A Hub for the Oil & Gas
connectivity between two countries. The Singapore was Malaysia’s second largest Industry
330km-long HSR project, targeted for source of imports. Malaysia’s imports In line with Malaysia’s aspiration to be the
completion in 2020, will further spur from Singapore amounted to US$25.5 number one oil and gas (O&G) hub in the
economic growth and cut travel times billion in 2013. Asia Pacific region by 2017, Malaysia is
between the city-state and Kuala Lumpur Trade between the two countries is positioning its vibrant O&G industry as the
to 90 minutes. The HSR will facilitate mainly in refined petroleum products, platform for world-class companies to be a
seamless travel between Kuala Lumpur electrical and electronic products, key component in the O&G ecosystem in
and Singapore, enhance business linkages chemicals and chemical products, Malaysia. Prime Minister Datuk Seri Najib
and bring the peoples of Malaysia and machinery, appliances and parts and Razak has called on global O&G companies
Singapore closer together. manufactures of metal. to invest in Malaysia, urging them to
6 Opportunity Malaysia
BILATERAL
consider the country from a wider regional production equipment in response to the in collaboration between the Malaysia
perspective and as a strategic business shift of oil and gas exploration to deep Petroleum Resources Corporation (MPRC)
partner within the framework of ASEAN. waters in the Asia Pacific. and the University of Technology Malaysia
The Prime Minister made the call in his Meanwhile closer to Singapore, Port (UTM). Currently, there are 13 institutes
address at the opening of the Offshore of Tanjung Langsat in South Johor is of higher learning and four skills training
Technology Conference (OTC) Asia 2014 developing into a leading integrated hub centres that offer oil and gas related
at the Kuala Lumpur Convention Centre, in for refining, petrochemical and oil storage courses in Malaysia such as state-of-
Kuala Lumpur. in Asia Pacific. Langsat, Pengerang and the-art simulation, engineering, marine
Major efforts made by companies Tanjung Bin have been identified as the technology, enhanced oil recovery and deep
particularly PETRONAS which include nucleus to stimulate the development water technology.
the Refinery and Petrochemical Integrated of the O&G industry in Johor. Precision
Development (RAPID) in Pengerang, Johor engineering companies supporting the Strengthening the Electrical
and the Sabah Ammonia Urea (SAMUR) O&G industry and companies in the & Electronics Industry
project in Sipitang that involve investments offshore field equipment supply and Malaysia has developed the ecosystem
of more than RM65 billion will create manufacturing (OFSE) are encouraged to for the industry to enable Electrical
growth in the volume of premium specialty take advantage of its potential. & Electronics (E&E) companies to
chemicals industry in the Asia-Pacific As an enabler to O&G industry flourish. As Malaysia moves forward, the
region. development, Malaysia recognizes the need E&E industry is focused on deepening
Malaysia has the advantage of to further develop experienced technical and strengthening the three major
geographical location, superior capabilities, talent, specifically engineers, geosciences ecosystems of semiconductors, solar
robust domestic O&G industry and professionals and specialized supervisory and LED technologies. Semiconductors
large hydrocarbon reserves, which will and trade categories experts. To address will continue to spearhead the growth
make it an ideal base for expanding into this requirement, Malaysia has established of the E&E industry in Malaysia due
Asia’s oil and gas markets. The synergetic several specific talent development to the growing demand in the usage of
development of upstream and downstream programmes in the O&G sector in the mobile and storage devices, data centres,
activities provides opportunities in strategic country and these programmes are being optoelectronic and embedded technology.
petrochemical industries and has unleashed conducted in various Ministries and Malaysia is also currently strengthening the
unprecedented demand for services in the agencies such as the Industry Centre industry further by targeting the front-end
whole value chain of the O&G industry. of Excellence (ICoE) by the Malaysian manufacturing such as wafer processing,
An area of interest is the manufacture Ministry of Education, and Structured wafer fabrication, integrated circuit (IC)
of specialised sub-sea extraction and Internship Program (SIP) by TalentCorp, design and fabless activities.
Major E&E Ecosystems in Malaysia
SEMICONDUCTORS SOLAR LED TECHNOLOGY
The International Data Corporation Despite a global oversupply and The move by the Malaysian
(IDC) forecasts worldwide semiconductor prolonged industry conscilidation, Government to phase out the use of
revenue to improve by 2.9 per cent year- new solar photovoltaics installations incandescent lights and the launch of the
over-year in 2014 to US$329 billion and accounted for almost 30 per cent of Green Technology Financing Scheme
to reach US$366 billion in 2017. This all new electricity generation capacity (GTFS) in 2010 have both contributed
growth will come mostly from strong in 2012. The European Photovoltaic to the healthy growth of Malaysia’s
demand for memory and logic products Industry Association (EPIA) believes LED industry. Increasing awareness on
and an increase in semiconductor content that the industry can expect to resume energy efficiency has also encouraged the
in automobiles and high-end smarphones. its annual growth trajectory of 10-15 adoption of LED technology in various
This trend towards the “Internet of per cent. Malaysia is consolidating its applications such as tablets, smartphones
Things” (IoT) will see sustained growth in position as one of the world’s largest solar and illumination products. General
the manufacturing of sensors and MEMs panel producing nations and is focused lighting applications utilising LED
in which local players like Globetronics on completing the solar value chain and technology is expected to be the main
and Silterra already have an established cluster, especially in the production of growth driver. This has induced further
presence. solar materials and balance-of-systems for expansions and new investments in
smart grid solar systems such as batteries projects related to LED/solid state lighting
and inverters. (SSL) sub-sector.
Opportunity Malaysia 7
BILATERAL
The Malaysian government had agreed
to set up the Aerostructure Manufacturing
Innovation Centre which would carry out
research and development relating to aircraft
structure manufacturing and also serve as
the highest level study and training centre.
This RM40 million centre is funded by
government and industry players.
Among the major foreign-owned
companies which have established a
presence in the country are General Electric
(GE) Engine Services Malaysia, Malaysia
Eurocopter, Honeywell Aerospace Services,
Hamilton Sundstrand, Agusta Westland and
Spirit AeroSystems. Malaysian companies
which featured prominently in the local
aerospace industry include Malaysia
Aerospace Engineering (MAE), AIROD
(Aircraft Inspection, Repair and Overhaul
Depot), Sepang Aircraft Engineering and
Composites Technology Research Malaysia
(CTRM).
EC145 T2e Asia Demo Tour 2013 (Photo: www.airbushelicopters.com.my/) Food Processing Industry
has the Halal Advantage
Malaysian Investment Development IoT segment, focussing on designing, Malaysia seeks to become a regional
Authority (MIDA) approved a total of 118 manufacturing processes, research and food production and distributive hub,
E&E projects with investments of US$2.99 development, robotics and software with particular emphasis on halal food.
billion in 2013. Foreign investments development activities. Companies can Companies keen to venture into the food
accounted for 86.7 per cent of the total seek opportunities in IoT areas such as processing industry can tap the specific
approved investments in the industry. Most in designing and manufacturing services incentives for the food processing industry
of the foreign investments into the E&E including nano-chips, three dimensional including designated halal food parks which
sector in 2013 came from the USA and sensors and advanced energy storage have been put in place to encourage more
Singapore. systems. The government aims to develop investments here.
More E&E companies are undertaking an ecosystem, focusing on design, research The halal industry in Malaysia offers
global corporate functions and shared and development, software development and immense opportunities to investors. It is
services such as R&D centres, operational intellectual property. Vast opportunities exist estimated that the potential value of the
headquarters, global supply chain, global in the electronics sector, from medical and halal food industry range between US$600
distribution and global fulfilment centre in smart devices to automotive. billion and US$2.1 trillion. The concept of
Malaysia. The establishment of global R&D halal is associated with food products which
functions with new product introduction Aerospace Industry are of high quality in terms of cleanliness,
(NPI) functions within the E&E industry in Taking Flight sanitation and compliance with religious
Malaysia has paved the way for the transfer MIDA expects to attract more requirements. Local halal food products
of technology from parent companies to the international aerospace industry players, can gain easy access into halal markets as
local workforce. given the strong prospects in the industry Malaysia’s halal certification is globally
As a measure to focus on the Internet brought about by the growing demand for recognised.
of Things (IoT) market over the next five aircraft in the region.
years, Malaysia has planned a roadmap for As of March 2014, a total of 62 companies More Competitive Services
the electronics industry. The global value have invested in Malaysia with a total of Sector
of IoT is anticipated to reach US$13 trillion RM11.7 billion in the aerospace sector, of In addition to manufacturing, the
(RM41.72 trillion) by 2020. IoT refers to which 28 are in the maintenance, repair and Malaysian government is also strengthening
objects with Internet connectivity that overhaul activities and 34 in manufacturing. the services industries to boost the
allows them to receive and transmit data. A total of RM55.9 million worth of competitiveness and resilience of the
Malaysia aims to gain a foothold in this new investments from two foreign companies economy. It is actively encouraging the
technological wave, with IoT’s numerous was approved for the local aerospace setting up of Global Operation Hubs and
applications, and the need for more data industry in the first quarter of 2014. regional establishments which include
storage centres, connectivity services, The aerospace industry is expected to Operational Headquarters (OHQs),
sensors and larger capacity solid state and contribute an additional RM16 billion to International Procurement Centres
hard disk drives. the gross domestic product (GDP) through (IPCs) and Regional Distribution Centres
The country’s advantage is that companies two Entry Point Projects (EPPs) under the (RDCs). It is also promoting business and
can leverage on its strength of 40 years Economic Transformation Programme. It is professional services, distributive trade,
in the electronics industry to tap into the expected to create about 32,000 jobs. education, healthcare, hotel and tourism.
8 Opportunity MalaysiaBILATERAL
Going Forward
In 2015, Malaysia will Technology Centre‘s expansion of its
existing operations in Malaysia and a Malaysia has created a vibrant business
Global Support Office in Kuala Lumpur environment for businesses to develop niche
take over the ASEAN for Exxon Mobil Business Support Centre growth areas within the country’s biggest
Chairmanship, during Sdn Bhd. pillars of industrialisation, such as O&G,
E&E, Aerospace, Food Processing and
which greater focus Deepening
Integration
Economic Services sector. These are the industries in
which Malaysia has significant experience,
International trade is an important expertise and infrastructure, and the country
will be placed on contributor to Malaysia’s economic growth is well positioned to take advantage of
and development. While Malaysia continues this boom. The government will continue
enhancing people- to accord high priority to the rule-based with its ecosystem approach to leverage on
multilateral trading system under the World these opportunities in promoting private
to-people ties and Trade Organisation (WTO), Malaysia investments in the country. The approach
is also pursuing regional and bilateral promotes Greenfield opportunities in
creating an ASEAN trading arrangements to complement the high value industries and helps potential
multilateral approach to trade liberalisation. investors to meet their human capital needs
sense of belonging To date, Malaysia has established FTAs throughout the economic value chain.
with Japan, Pakistan, New Zealand, India, Malaysia’s commitment to economic
among the peoples in Chile, Australia and Turkey. At the regional transformation has also garnered international
level, Malaysia and its ASEAN partners have recognition. According to the latest World
the region concluded FTAs with China, Japan, Korea Bank Ease of Doing Business Report 2014,
and India, as well as Australia and New Malaysia surged to sixth position from
To date, the Malaysian government has Zealand. Among the main FTAs currently 12th position among 189 economies. The
liberalised 45 services sub-sectors. being negotiated by Malaysia include the government has also put in place progressive
In 2013, Malaysia attracted 178 regional Malaysia-European Union Free Trade and supportive policies to drive growth in the
establishments, of which seven were OHQs Agreement (MEUFTA), the Malaysia-EFTA industry. Malaysia has a strong regulatory and
with investments of RM567 million, five Free Trade Agreement and the Trans-Pacific legislative framework to safeguard the interests
were IPCs with investments of RM1.36 Partnership Agreement (TPP). of commercial investors.
billion, two RDCs, 68 Regional Offices Malaysia is also working closely with The Institute for Management
(ROs) and 96 Representative Offices (REs). the other ASEAN Member States to realize Development’s (IMD) World
The approved ROs and REs had an estimated the formation of the ASEAN Economic Competitiveness Yearbook 2014 has ranked
total spending of RM2.1 billion. Community (AEC) in 2015. Malaysia 12th among 60 countries. The
Among the notable OHQs approved In 2015, Malaysia will take over the jump from the 15th position last year is
last year were from Astrazeneca, a global ASEAN Chairmanship, during which greater a testimony of growing confidence in the
pharmaceutical leader; Sweden’s Husqvarna, focus will be placed on enhancing people-to- government’s various initiatives to transform
the world’s biggest producer of power people ties and creating an ASEAN sense of the economy into that of a high-income
products and two Australian companies belonging among the peoples in the region. nation by 2020.
-- the Jord Group and Stellar International.
Switzerland-based Cohu’s wholly-owned
subsidiary, Ismeca Malaysia was approved
to set up a new IPC while another major
IPC approved was for Japan’s Minebea Co.
Meanwhile, Epson Toyocom Malaysia,
a subsidiary of Japan’s Seiko Epson
Corporation was approved to set up a RDC.
Malaysia also continues to attract MNCs
to set up their Global Operation Hubs in
the country. Last year, nine projects were
approved with total investments of RM7.9
billion and creating close to 16,000 jobs.
Intel Microelectronics set up a
Global Services Centre in Penang with
investments of RM4.4 billion over 10
years. The Centre will employ some
3,000 knowledge workers including 1,600
engineers and technical staff. Other
notable Global Operation Hubs approved
last year include Knowles Electronics’
expansion of its existing operations as
Malaysia is the company’s principal and
global distribution centre; BMW Asia
Opportunity Malaysia 9BILATERAL
Prime Minister Dato’ Sri Najib Razak with
Singapore’s Prime Minister Lee Hsien
Loong at The 5th Malaysia-Singapore
Leaders’ Retreat on April 7, 2014 (Photo:
www.kln.gov.my)
U n s u r pa s s e d
COOPERATION
The relationship between Malaysia and Singapore is unique and special because of their
shared history
C
ommentators have observed working visit in February 2014 at the areas of security and law enforcement.
that meetings between Prime invitation of Singapore Deputy Prime After the meeting, DPM Teo said,
Minister Dato’ Sri Najib Razak Minister (DPM) Teo Chee Hean, who “Minister Zahid is an old friend. We have
and Singapore’s Prime Minister is also the Home Minister. During his known each other since we were both
Lee Hsien Loong were like those between visit, Minister Zahid also met Singapore’s Defence Ministers. I thanked Minister
old friends. The 5th Malaysia-Singapore Prime Minister Lee, Minister of Defence Zahid for the invaluable assistance from
Leaders’ Retreat on April 7, 2014 reinforced Dr Ng Eng Hen, and Foreign Minister the Malaysian law enforcement and
this impression. K. Shanmugam. He and DPM Teo also security agencies over the years. This
Bilateral relations between Malaysia agreed to meet annually to maintain the close cooperation is a key advantage in
and Singapore have never been better. close bilateral relations, and keep each tackling our common cross border crime
Leaders on both sides of the Causeway other updated on developments in the and security threats.”
have worked hard to enhance economic
and security cooperation as well as resolve Dato’ Seri Dr. Ahmad Zahid Hamidi presenting
issues of mutual interest. In the view of a picture of “Sultan Abdul Samad Building” to
DPM Teo Chee Hean (Photo: www.mha.gov.sg)
Home Minister Datuk Seri Dr Ahmad
Zahid Hamidi, the relationship between
his ministry and Singapore’s Home Affairs
Ministry (MHA) was “superb”, especially
when it came to addressing security matters,
drug trafficking, illegal gambling and issues
of human trafficking. He said, “In these
matters, we have a common interest. This
common interest is our priority. We want
both countries, as very close neighbours,
to have the sharing concept so that we can
exchange information fast to enable us to act
swiftly to prevent criminals from escaping
to third countries where it may be more
difficult to track them down.”
The Malaysian minister said this
while he was in Singapore for a two-day
10 Opportunity MalaysiaBILATERAL
Malaysia development zone because it is
The PowerSeraya’s Combined Cycle Power CoGeneration
Plant in Singapore (Photo: PowerSeraya) in Johor and extremely close to the City
State. Also, Singaporeans are eyeing the
more affordable housing options there.
According to data collated by the Iskandar
Regional Development Authority (IRDA),
Singaporeans make up the single largest
group of investors in Iskandar, accounting
for US$3.42 billion of the total investment
sum of US$43 billion invested there up
to April 2014. About 75 per cent of these
investments went into the manufacturing
sector, while the rest was spread over the
property, education and healthcare sectors.
Beyond Iskandar Malaysia
Singaporean businessmen are also
investing in factories and plants in the
economic corridors sprouting up in other
parts of Malaysia – in Sabah, Sarawak,
the East Coast Economic Region and
In their fathers’ footsteps Northern Corridor Economic Region.
Relationships between the two According to a World With a population of 30 million people,
neighbouring countries started improving the market in Malaysia is about six times
during the time of former prime minister Bank report for 2013, bigger than Singapore’s. In addition,
the late Tun Abdul Razak Hussein and Malaysia’s economic growth is relatively
former Singapore Prime Minister Lee the ease of doing more robust than that of the more
Kuan Yew. Prime Minister Najib Razak developed and mature Singapore economy.
and Singapore’s Prime Minister Lee are business in Malaysia Malaysia’s gross domestic product (GDP)
continuing what their fathers started. This is expected to grow at an average of 5 to 6
has encouraged the formation of many has improved, with the per cent per year through 2020, while that
informal relationships between officials of of Singapore is expected to grow only at an
various departments and agencies of both country ranking 12th average of 2 to 3 per cent per year over the
governments. While largely restricted to same period. In operating costs, Malaysia
matters of combating crime and terrorism, out of more than 180 also offers a much cheaper operating
the deepening of these ties now also environment which could boost profit
encompasses business and investment countries, compared margins for Singaporean businesses.
sectors. On its part, Singapore has for the past
The economies of Malaysia and with its 14th position two years ranked top in the world in terms
Singapore are now even more closely of ease of doing business. This has drawn
linked. They have been each other’s main in the preceding year Malaysian investors there. Singapore’s
trading partners for many years. Data
from Malaysia’s Department of Statistics,
Duo Residences @ Bugis by M+S
for instance, show that bilateral trade (Photo: www.duoresidencessingapore.com)
between Malaysia and Singapore was
valued at US$54.61 billion in 2012, up
from US$50.26 billion the previous year.
Malaysia remains Singapore’s largest
trading partner, while Singapore is
Malaysia’s second largest trading partner
after China.
The neighbours’ economic
interdependence is also reflected in the
staunch flow of investments between both
countries. Figures from the Malaysian
Industrial Development Authority indicate
that Singapore is among the top investors,
with a total value of approved projects
standing at US$0.68 billion in 2012, down
slightly from US$0.78 billion in 2011 due
to a weak global economy. But in recent
years, Singapore businesses are spending
heavily on projects in the Iskandar
Opportunity Malaysia 11BILATERAL
The FPDA Defence Ministers before the commencement of the 9th
FPDA Defence Ministers’ Meeting (Photo: www.mindef.gov.sg)
second largest utility firm PowerSeraya countries. The 36th Malaysia-Singapore civil servants, comprising Malaysia’s
Ltd is wholly-owned by Malaysian Public Service Games and 5th Joint High Commissioner to Singapore,
infrastructure conglomerate YTL Group, Seminar were held in Putrajaya, Malaysia Secretary Generals and senior officials
which also has interests in Singapore’s from November 8-10, 2013. from the Malaysian Civil Service. The
real estate. Then there is S P Setia Bhd Mr Peter Ong, Head of the Singapore Joint Seminar saw an exchange of views
and Selangor Dredging Bhd in the real Civil Service, led the 20-member between the public sector leaders of
estate sector; Axiata Group Bhd in the delegation comprising Singapore’s High the two countries on topics such as
telecommunications industry, the Genting Commissioner to Malaysia, Permanent public engagement and inter-agency
group in the leisure and hospitality sector; Secretaries, Deputy Secretaries and senior collaboration.
and Malayan Banking Bhd. civil servants. The group was hosted by With both countries showing such
Tan Sri Dr Ali Hamsa, the Chief Secretary dedication to enhancing cooperation
Cooperating on the to the Government of Malaysia, together on all levels, much more synergy can be
Military Front since 1971 with a delegation of 37 Malaysian senior expected in the future.
Both Malaysia and Singapore are
members of the world’s second-oldest
military partnership – the Five Power
Defence Arrangements (FPDA) – together
with Britain, Australia and New Zealand.
In force since 1971, it now includes
combating terrorism and disaster relief. In
November 2013, the five nations took part
in a 14-day exercise, code-named Bersama
Lima, in Penang. The drill involved 12
ships, 72 aircraft and six ground-based air
defence units.
Senior Civil Servants Bond
through Games
The annual Malaysia-Singapore
Public Service Games, which are hosted
alternately, were first held in 1973 in
Kuala Lumpur. It aims to enhance the 36th Public Service Games & 5th Joint Seminar Malaysia-Singapore
(Photo: Majlis Kebajikan & Sukan Anggota Kerajaan Malaysia)
relationship of the civil services of both
12 Opportunity MalaysiaINVESTMENT
figures
at the Glance
Malaysia has everthing that makes business tick – from a young, productive workforce to
affordable costs
ASEAN share of GDP (2011) in billions of US$ Cost Competitiveness Index (2011)
Cambodia
The Philippines Most Indonesia
Competitive 8.6
Brunei Darussalam
China Thailand
$11,299.00 Laos
8.2
ASEAN
Index Score
$2,177.1 Malaysia Vietnam Malaysia
Thailand 7.9
Rest of APEC Myanmar
$25,243.90 Singapore
Indonesia Vietnam
7.4
China
Source: StatsAPEC 7.0
Least Singapore
Competitive 6.4
%
How will your level of investment change
60
in the following markets during 2013 Source: http://www.sourcingline.com/
53.5 53.9 top-sourcing-countries
50
43.0
Global Competitiveness Index 2014-2015
40 38.5 38.6 37.7
33.9 34.8 Country Global Rank*
32.8
30
27.1 Switzerland 1
25.2 26.2
Singapore 2
20 18.6
16.3
Japan 6
10.6
10
Hong Kong SAR 7
2.4 3.3
2.2
0.8 0.7
0 Taiwan, China 12
Indonesia Malaysia Thailand Vietnam Singapore
Malaysia 20
We will increase our level of investment
We are in the market, but will not invest more Austria 21
We will reduce our investment in this market
Australia 22
We have no plans to invest
France 23
Source: Economist Corporate Network ABOS 2013
Korea, Rep. 26
ASEAN Corporate Tax Rate 2012 Source: World Economic Forum
Note: *2014-2015 rank out of 144 economies
Singapore 17%
Cambodia 20%
Charts and illustrations
Thailand 23%
taken from:
Malaysia 25% Deloitte’s publication titled
Vietnam 25%
Kuala Lumpur, Malaysia –
Southeast Asia’s rising star,
Indonesia 25%
An investor’s guide
The Philippines 30%
Source: Departments of taxation for each country
Opportunity Malaysia 13INVESTMENT
Photo: Malaysian Tourism
Iskandar Malaysia
Attracting Investments
New investments in Iskandar Malaysia create more employment and business opportunities
T
he second quarter of 2014 saw America with an annual revenue of US$6.6 Pointing out that such investments
Iskandar Malaysia securing billion,” said Dato’ Mohamed Khaled, who would be a magnet for other
RM9.72 billion (US$3.09 billion) is also Iskandar Regional Development multinational companies to set base
in new investments, bringing Authority (IRDA) co-chairman. He added or to open up plants in Iskandar
the total cumulative committed investment the company had invested RM816 million to Malaysia, IRDA Chief Executive Datuk
secured to RM146.20 billion from 2006 build a high-technology candy plant on a 40 Ismail Ibrahim said, “We welcome
until June 30, 2014. Of the total cumulative hectare site adjacent to Senai Hi Tech Park. all investments in the promoted
committed investments, RM69.53 billion Once completed in end 2015, the plant sectors, but most of all, we welcome
or 48 per cent represents investments that will be Hershey’s second largest factory investments which open doors for the
have been realized as projects on the ground. in the company’s global manufacturing local community, be it in job creation or
Johor Menteri Besar Dato’ Mohamed Khaled network. When fully functioning, it will be businesses in supporting industries. One
Bin Nordin said in 2013 that Iskandar able to create tens of millions of Hershey’s thing we always ensure, here in IRDA, is
Malaysia secured a total of RM25.33 Kisses, Reese’s Peanut Butter Cups and that the investments which come in are
billion worth of investments and closed Hershey’s Bars every day. The plant will beneficial to the Rakyat (people) so that
the year with a total cumulative committed be constructed using local talent, utilising they too get to enjoy a piece of the pie.”
investment of RM131.64 billion. more than 80 per cent of local and regional He added as with 2013, the creative,
“The first and second has yielded good construction materials. While this plant healthcare, financial services and logistics
investments and we expect this confidence to relies on high technology and lower human sectors would continue to be the magnet for
continue growing throughout the year. One labour, it will still create 400 employment new investments in 2014 and 2015.
of the investors we had managed to attract is opportunities with up to 26 per cent (100 Datuk Ismail said, “Iskandar Malaysia
The Hershey Company, which is the largest high income positions) at managerial and is projected to receive higher number of
producer of quality chocolate in North technical positions. domestic and international tourists in
14 Opportunity MalaysiaINVESTMENT
2014, in conjunction with Visit Malaysia 2014.
Since opening its doors in September 2012, Table 1: Investment Update 2006 - June 2014
Cumulative Committed Investment (Local vs Foreigner)
LEGOLAND Malaysia theme park has been
a strong tourist attraction and this is further RM bil
84.62 94.16
boosted by the LEGOLAND waterpark which 130.0
Local
was completed in October 2013 and LEGOLAND Foreign 67.78 64% 64%
110.0
Hotel which was launched in November 2013.
64%
He added, “Visitors can also look forward to 90.0 50.64
the 120 retail outlets at Johor Premium Outlets 40.70
70.0 60%
– 40 of which were just added on in the second 30.08 58%
phase of the outlet’s expansion in November 2013. 50.0
18.92 54% 36%
36%
“Coming up, the opening of KOMTAR Johor 30.0 45% 36% 52.04
40% 38.53 47.02
Bahru City Centre will also be part of the latest 46% 28.78
42% 34.14
22.83 55% 25.48
tourist attraction in Iskandar Malaysia. The 10.0
150-outlet mall would also be home to the first 2008 2009 2010 2011 2012 2013 2014
-10.0 (June)
Angry Bird Activity Park in Southeast Asia, slated
Source: IRDA, Khazanah, MB, MINDA as at Mar 2014 & Corporate Announcements
to open by September this year.”
Of the total cumulative committed investments,
64 per cent (RM94.16 billion) are domestic Table 2: Investment Update 2006 - June 2014
investments while 36 per cent (RM52.04 billion) Cumulative Committed Investment by Sector
came from foreign investors (Table 1). The top
Utilities
five countries with the highest investments in Emerging Tech Government 12.64
1.03 Manufacturing
Iskandar Malaysia from January to June 2014 8.31
50.54
are Singapore, United States of America, Spain,
Japan and Netherlands. This is followed closely by Industrial
6.37 Logistic
China, United Arab Emirates, Australia, Lebanon 4.81
and France. Retail
From the RM146.20 billion, the breakdown of 20.07
Healthcare
the investments is as follows: 2.59
Creative
Promoted Sectors in Iskandar Residential Properties
33.90
0.4
Malaysia (Table2) Finance
Tourism
2.67
Manufacturing : RM 50.54 billion (35.0%) 1.32 Education
Logistics : RM 4.81 billion (3.0%) Note 1: Government; Kota Iskandar project add RM1bil 1.56
Note 2: Properties; reclassification of industrial and retail
Healthcare : RM 2.59 billion (2.0%)
Tourism : RM 2.67 billion (2.0%)
Table 3: Investment Update 2006 - June 2014
Education : RM 1.56 billion (1.0%) Committed and Realised Investment (Year-on-Year)
Creative : RM 0.40 billion
Finance : RM 1.32 billion RM bil
160.0
Committed Investment
Supporting Sectors
146.20
140.0 48%
Realised Investment 131.64
43%
Residential 120.0
properties : RM 33.90 billion (23%) 100.0
106.31
41%
Utilities : RM 12.64 billion (9 %) 84.78
44%
80.0
Retail properties : RM 20.07 billion (14.0%) 69.48
39% 69.53
56.32
Industrial 60.0
43.70
Properties : RM 6.37 billion (4.0%) 40.0
27.70
37.75
Emerging 20.0
Technologies : RM 1.03 billion (1.0%)
0.0
Government 2010 2011 2012 2013 2014
(June)
(Infrastructure) : RM 8.31 billion (6.0%)
Note: Percentage is a realised against committed investment (RI/CI)
Datuk Ismail said IRDA works very closely
with its partners to welcome and identify
investments which would not only increase the This update was contributed by the Iskandar Regional Development Authority.
economic value of the region but also increase the IRDA is the regulatory authority mandated to plan, promote and facilitate the
quality of life for the people working and living in development of Iskandar Malaysia into a strong and sustainable metropolis of
Iskandar Malaysia. international standing, where living, working, business and leisure converge
“We are also looking into developing a halal seamlessly.
park in Iskandar Malaysia, as there is huge For media inquiries, kindly contact:
potential to be tapped from the halal products • Ms Izyan Ahmad @ +60 07 233 3125
industry in the world,” he added.
Opportunity Malaysia 15INVESTMENT
Ascendas Hi-Tech Park @ Gerbang Nusajaya
(Photo: http://ascendaspark.wordpress.com/)
Nusajaya Tech Park
Full Speed Ahead
Prior to its groundbreaking in June 2014, 40 per cent of the first phase of ready-built
factories has been taken up
M
inisters from Singapore and
Malaysia were present at
the groundbreaking of the
Nusajaya Tech Park on June
12, 2014, highlighting the development’s
strategic importance to the economies of
both countries. Costing US$1.16 billion, the
tech park will be developed in three phases
over nine years. The first phase of ready-built
factories, which will be completed by 2016,
is already 40 per cent pre-committed. Architectural Proposed Design
The Nusajaya Tech Park in Iskandar (Photo: http://ascendaspark.wordpress.com/)
Malaysia is a 60:40 per cent joint venture
between Singapore’s Ascendas Pte Ltd facility for its precision engineering and calling the development a strategically
and Malaysia’s UEM Sunrise Bhd and manufacturing operations. On its part, YCH important one for both Malaysia and
occupies more than 210 hectares (ha). Group has teamed up with Nusajaya Tech Singapore. He said, “We have and will
When completed, this area of about 250 Park to explore the feasibility of a state-of- continue to jointly develop industries with
football fields is expected to accommodate the-art supply chain facility operated by synergistic activities in both Singapore and
about 200 companies and a business the group within Iskandar Malaysia. VADS Iskandar Malaysia. With the right mix of
community of more than 20,000 people. Berhad is examining the setting up of a data industries and enhanced connectivity, there
The project has been master-planned for centre in the park. is potential for both countries to develop a
companies manufacturing electronics, At the groundbreaking, Mr Mustapa seamless economic space.”
pharmaceuticals, medical devices, and Mohamed, Malaysia’s Minister of He added, “Substantial progress has been
fast-moving consumer goods, and for International Trade & Industry, said, “This made in Iskandar Malaysia. It has attracted
firms specialising in precision engineering high-tech park is designed to complement close to RM132 billion (US$41.47 billion) in
or food processing. These businesses operations of some companies in Singapore investment commitments as of December
would have the full support of efficient with companies in Malaysia. This marriage last year (2013), with Singapore emerging as
logistics and warehousing services and a is a very strong marriage. It goes to show the top foreign investor, contributing close to
comprehensive security system. how we are committed to further develop 23 per cent of its total foreign investment.”
Work on the first phase, spanning over 28 ties between Singapore and Malaysia. This Located just minutes from the Malaysia-
ha of ready-built facilities and land plots for place will result in a lot of spin-off activities Singapore Second Link Expressway, the
build-to-suit developments, is expected to in Iskandar, Johor, and it will be a win-win Nusajaya Tech Park will also benefit from
start soon and companies including Sanwa collaboration for our two countries.” the improved connectivity planned between
Group of Companies, YCH Group, and Singapore’s Minister of Trade and Industry the two countries. The rapid transit system
VADS Berhad have also expressed interest Lim Hng Kiang called on Singapore link is expected to be running by 2018 while
in the new tech park. Sanwa is studying companies seeking to venture overseas to the proposed high-speed rail is targeted for
the possibilities of taking up a 72,000 sq ft consider Iskandar Malaysia as an option, completion by 2020.
16 Opportunity MalaysiaINVESTMENT
The Best of
BOTH WORLDS
Ascendas’ William Tay, chief executive officer for South-east Asia, is of the view that
Nusajaya Tech Park offers the advantages of both Malaysia and Singapore
C
ompanies facing the challenges of
rising costs, manpower and land
availability in Singapore can now
tap on its northern neighbour
to effectively twin their business operations
across the border. Mr William Tay, CEO for
South-east Asia at Ascendas, points out that
Malaysia has the skilled industry workers,
vast natural resources and established
infrastructure support for many mid to
higher-value industrial activities. Businesses
coming to Iskandar Malaysia can thus
leverage on the comparative advantages of
both countries to develop new supply chains Nusajaya Tech Park main arrival entrance
in the region and enjoy, what he says, is “the
(All images: Artist impressions from Ascendas)
best of both worlds”.
“Some of the end products are made in
Singapore and if these companies can get their
supply chain, which also manufactures high-
value components, to be located in Nusajaya
Tech Park, which is only minutes away from
the Second Link, it enhances the overall
attractiveness and value proposition of the park
as a regional hub for business,” he explained.
The development of the park is by a
joint-venture between Singapore’s Ascendas
and leading Malaysian real estate developer
UEM Sunrise Berhad, who is also the master Aerial view of Nusajaya Tech Park Ascendas OneHub GKC, Guangzhou, China
developer of the 24,000-acre Nusajaya zone
in Iskandar Malaysia. It is Ascendas’ first Mr Tay said, “We envision that Nusajaya a building in Pune. Ascendas has also
joint-venture development project across Tech Park will seamlessly integrate successfully completed the Changi City
the Causeway, and the projected investment industrial, commercial spaces, dormitories, project. Located in Changi Business Park,
value of the park is about S$1.5 billion. amenities, and support facilities with this is one of Singapore’s largest integrated
It will be completed in phases over environmentally-friendly infrastructure communities combining business,
nine years. and open spaces, all in one location. When retail and hospitality elements within a
As a key component of Iskandar completed, the fully-landscaped 210-hectare business park. Another significant project
Malaysia’s development strategy, Nusajaya park will provide nine million square feet in Singapore is Galaxis in the heart of
Tech Park has been carefully master- of business space for 200 enterprises, with Fusionopolis near Bouna Vista.
planned to attract multinational and lifestyle amenities supporting a community Looking into the future, Ascendas
leading local enterprises. Besides offering of over 20,000 people. We believe the Park has commenced work on the 30-hectare
superior business infrastructure, the Park is will serve as a catalyst for business growth in Ascendas OneHub GKC, located in the
designed to promote the evolution of Iskandar Malaysia.” heart of the Guangzhou Knowledge City.
an industrial eco-system where companies A leading business space solutions The project comprises business space
can reap the synergy of being together provider with a strong track record of across the spectrum of multi-tenanted,
with their supply chain and other like- over 30 years, Ascendas’ impressive track construct-to-sell, and build-to-suit, as well
minded businesses within a single record features the development of iconic as residential and lifestyle amenities. Phase
location. The park will also feature a business parks such as the Ascendas-Xinsu one is expected to be completed by 2016.
comprehensive security master plan, in Suzhou Industrial Park, Dalian-Ascendas With such vast experience, Ascendas is
designed by Singapore’s Certis Cisco, to IT Park and Bengaluru International Tech well-equipped to ensure that the Nusajaya
enhance total security at park, cluster and Park. Other notable developments include Tech Park will set new standards for future
factory levels. IT Parks in Chennai and Hyderabad and developments.
Opportunity Malaysia 17INVESTMENT
10 reasons to buy properties
in Iskandar
The demand for property here exceeds supply so there could be a higher capital gain
in the short-term when compared to other regions where demand and supply are more
evenly balanced
I
SKANDAR Malaysia which was Good planning Economic growth
officially launched in 2006 covers The CDP has been studying all the possible Economic development has been given priority
an area of 2,217 sq km (23.86bil aspects of the regional development and as without FDI (Foreign Direct Investment)
sq ft roughly three times the size acts as a master-plan for the whole of and local manufacturing/services investment,
of Singapore). Upon launching, its total Iskandar Malaysia. The manufacturing and there cannot be future development of the
population was 1.35 million people, of which services sectors are the drivers justifying the region. As at December 2013, out of the
the total work force was 610,000 employees. population growth projection of three million RM130 billion of committed investment,
Khazanah Nasional Bhd drew a 20-year by 2025 with a workforce of 1.5 million. IRDA has achieved RM133 billion of which 45
Comprehensive Development Plan (CDP Besides this, the CDP provided a complete per cent has already been realised.
which is available online at the IRDA or study on existing and planned infrastructure Interestingly, only RM8.3 billion
Iskandar Regional Development Authority that will be necessary to satisfy the needs represents the public investment as this
website) covering all the multi-faceted aspects of an escalating population count. Water underlines how much the private sector
of developing a new economic growth region. reticulation, power supply, highways, believes in Iskandar Malaysia. The same
As at Dec 2013, the Iskandar Malaysia expressways, railways with planned MRT goes for properties which only total
population showed a head count of (mass rapid transit), LRT (light rapid transit) less than 24 per cent of the total sum -
1,880,000 of which 750,000 was the total and monorail, just to mention the main highlighting the sustainability of the whole
work force. works, have been properly planned and region (As at October 2013).
Here are the 10 reasons why buying partially executed. EDL (Eastern Dispersal
into the Iskandar Malaysia Economic Link) and the Senai-Desaru Highway are Differentiated Economic
Development Idea should be considered as only two of the many public works already Clusters
good and sustainable: completed and in use. The nine pre-defined economic clusters all
18 Opportunity MalaysiaYou can also read
