Iskandar has potential to draw Indonesian investors

JAKARTA (Sept 11): With greater promotion, Iskandar Malaysia has the potential to attract Indonesian investors in four sectors — property and hotel development; finance; logistics and healthcare — said Syahril Syazli Ghazali, economic counsellor at the Malaysian Embassy in Jakarta.

"The Iskandar Regional Development Authority (IRDA) should use its participation at the third Muslim World Business and Investment Zone (BIZ) Conference and Exhibition in Jakarta from Sept 13 to 16 to promote Iskandar Malaysia to the target markets," he said.

Syahril said that of the total investment commitments in Iskandar Malaysia as at the middle of this year, amounting to RM95.45 billion (US$30.24 billion), foreign investors accounted for 40%, of which only a small proportion are Indonesian investors.

Indonesian businesses, he added, invest mainly in Singapore, China, Australia, the US, Europe and Asean, besides their domestic economy, which has been growing at an average 6% in the last three years.

Syahril said Iskandar Malaysia could leverage its strategic location near Singapore to attract Indonesian investors, the majority of whom have business interests in the island republic. IRDA should look into investment incentives in strategic industries and ensure adequate manpower supply, especially in property development projects, he added.  — Bernama