Malaysia - Malaysian Government Targets RM 20 billion In Investments For Iskandar
August 7, 2012
Iskandar Regional Development Authority (Irda) said it is targeting investments of RM 20 billion per year from now till 2015, increasing to RM 25 billion per year by 2020.
Despite current uncertainties in the global economy, there is still strong domestic and international interest in Iskandar Malaysia, the country special economic development zone.
Chief executive officer of Irda, Datuk Ismail Ibrahim, said that far from resting on its laurels, the agency will continue to work hard to attract even more investments to Iskandar. For 2012, Irda has raised its target investment RM 20 million per annum - a target that will persist till 2015. It also hopes to attract an even-higher RM 25 billion per annum in investment from 2020 onwards.
"The party is not over yet and we (all stakeholders) have to work harder to ensure Iskandar Malaysia stays attractive and relevant in today's highly-competitive market conditions," Ismail said.
On whether the agency is confident of reaching the new investment target, he said, "It is achievable based on the achievements by Iskandar Malaysia on a year-to-year basis."
So far this year, Iskandar has secured RM 10.67 billion in new investments. From its inception in 2006 till 30 June 2012, the special economic zone had received a total of RM 95.5 billion cumulative committed investment in various sectors. Of these, 43% - or RM 41.35 billion - had already been realised.
Ismail also pointed out that much like the rest of Asia, domestic investment in Malaysia was going a long way in cushioning against the current economic volatility. He said that 62% of total investment in Iskandar came from domestic sources.
The manufacturing sector, with total investment of RM 32.71 billion, is the largest investor to date. It is followed by the property sector (RM 29.8 billion), utilities (RM 9.52 billion), government (RM 7.31 billion), petrochemicals (RM 5.1 billion), ports and logistics (RM 3.74 billion), tourism (RM 2.03 billion), education (RM 1.55 billion), healthcare (RM 1.60 billion), creative (RM 0.40 billion) and others (RM 1.69 billion).
"There are several investments from the Asean region, Japan and Europe this year but we cannot reveal the investors' names and the amount for now," Ismail added.
Iskandar Malaysia is the country's first economic growth corridor that was launched on 4 November 2006. It spans 2,217 sq km and consists of five flagship development zones - JB City Centre, Nusajaya, Eastern Gate Development Zone, Western Gate Development Zone and Senai-Kulai.
Tags: Commercial units, Business space, Commercial property to buy