Iskandar Malaysia cumulative investments at RM119b in 2Q

KUALA LUMPUR: Iskandar Malaysia has received new investments worth RM7.56 billion in the second quarter (2Q), bringing cumulative investments in the southern growth corridor to RM118.93 billion as at June 30. Real estate development contributed RM45.18 billion of the total investment.

This is higher than the RM5.06 billion achieved in 1Q, and in terms of cumulative total investments, is a 11.8% growth from December's figure.

"We are excited to see Iskandar taking shape and meeting the expectations of not only foreign investors but local players as well. We can see local investments are steadily increasing every quarter," said Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin, who is Iskandar Regional Development Authority (IRDA) co-chairman.

Of the RM118.93 billion, 66% was from domestic investors. Countries that top the list of foreign investors in Iskandar in 1Q are Australia, Singapore, Switzerland, the United Kingdom and the US.

Among the sectors being promoted, with subsectors such as electrical and electronics, petrochemicals, oleochemicals, food and agro-processing, manufacturing continued to attract the most investments at RM43.42 billion, followed by logistics (RM4.81 billion), tourism (RM2.5 billion), healthcare (RM1.59 billion), education (RM1.56 billion), financial services (RM600 million) and creative industries (RM400 million). Out of the total cumulative investments, 45% had been realised.

Utilities contributed RM9.52 billion, government investment in infrastructure and public works RM8.31 billion and emerging technologies RM1.03 billion.

In the tourism sector, the construction of the Legoland Malaysia water theme park is 70% completed and scheduled to open in October, said IRDA CEO Datuk Ismail Ibrahim.

"With over 20 water slides along with other activities, I am sure this will be another perfect family entertainment destination," he said.

In Johor Baru, IRDA and the city council have jointly undertaken the Sungai Segget revitalisation project — a part of the Johor Baru Transformation Programme that started in 2010.

Ismail said the river greening project, which aims to reduce pollutants flowing into Selat Tebrau by 90%, will be a catalyst for the programme.

The project, targeted for completion in December 2015, is expected to increase tourist arrivals to Johor Baru by 80% by improving the environment, Ismail said.

This article first appeared in The Edge Financial Daily, on July 19, 2013.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.