ISKANDAR DEVELOPMENT REGION | Johor ( Southern Johor ) | General News & Updates

[OshHisham]

I'm still waiting for Disneyland.....

[Greg]

Wednesday, August 29, 2007


AirAsia will continue with efforts to expand its southern hub at Senai Airport in view of the great potential of the Iskandar Development Region (IDR).

“We have seen the plans for Iskandar, and we are big believers in it. When Iskandar is ready, we will already be a part of it,” said chief executive officer Datuk Tony Fernandes.

“We are not waiting to see if Iskandar happens or not. We have faith in the state,” he added.

AirAsia simultaneously launched direct flights from Johor Baru to Macau and Palembang in Indonesia yesterday.

Mentri Besar Datuk Abdul Ghani Othman, Fernandes and AirAsia Deputy CEO Datuk Kamarudin Meranun welcomed 150 passengers from Macau who flew in on a new Airbus A320.

Fernandes said he was happy with the response from the Macau flight which recorded a load factor of 85%, compared to an average of 70%.

“It usually takes 18 months to develop a route but we have seen a 85% load factor already,” he said.

Fernandes said the airline was targeting one million passengers via Senai Airport next year. With Macau and Palembang, AirAsia now has 84 flights weekly from Senai Airport.

He added that he plans to open the no-frills hotel Tune Hotel in Danga Bay, Johor Baru.

Abdul Ghani said he was honoured that AirAsia had chosen Senai Airport as the first destination to fly its new Airbus.

“This signifies the airline’s commitment to enhance the connectivity in the region,” he said.



Source : STAR

[pedang]

New perks proposed to draw investors to Iskandar zone

August 30 2007

A PROPOSAL has already been submitted to the government on new incentives to attract more investors to the Iskandar Development Region (IDR), the South Johor Investment Corporation Bhd (SJIC) said.

“We are waiting for government approval,” its chairman, Datuk Azman Mokhtar, told reporters in Kuala Lumpur today.

Azman, who is also managing director of Khazanah Nasional, said the amount to be invested announced yesterday “was less compared to what is really needed” by IDR.

SJIC yesterday entered into a series of conditional agreements to develop the first integrated international city development in the region worth US$1.2 billion or RM4.1 billion.

SJIC described the partnership with leading investors from the Gulf Cooperation Council (GCC) countries, as a major catalyst and a significant milestone in the development of IDR.”

The landmark investment would represent the single largest foreign real estate development in Malaysia, one of the largest real estate development in the region and largest single foreign investment in Malaysia.

The various consortia in partnership with SJIC would be making further development investments of several multiples over the initial investment of USD$1.2 billion over a 20 years period. — Bernama

[pedang]

August 30, 2007 15:43 PM

Iskandar Region Well-positioned To Draw More Investors

By Salbiah Said

PUTRAJAYA, Aug 30 (Bernama) -- The Iskandar Development Region (IDR) in Johor, which attracted initial investments of US$1.2 billion (RM4.2 billion) from four Middle Eastern companies yesterday, is well-positioned to attract more investors to Malaysia.

"We truly believe in the potential of the real estate sector in Malaysia, and specifically we have chosen the IDR to be our first real estate investment in Malaysia," said vice chairman and chief executive officer of Saraya Holdings group of companies, Ali Hassan Kolaghassi, in an exclusive interview with Bernama.

"We believe there is great potential for financial institutions to establish their presence in Malaysia, and in the Johor region especially. Malaysia is well-positioned to be at the top of that (real estate) sector," said Ali Hassan, who is also chairman of the Saraya Real Estate MENA (Middle East and North Africa) Fund and Arab Bank Capital board member.

Four agreements were signed yesterday between South Johor Investment Corporation Bhd (SJIC), which coordinates the development of the IDR and companies from the Gulf Cooperation Council (GCC) countries.

The investing companies are Millennium Development International Company, a member of Saraya Holdings, Mubadala Development Company (MDC) and Kuwait Finance House (KFH).

Aldar Properties PJSC will be managing the development of IDR's first integrated international city, referred to as Node I.

Node 1 will spread over 892 hectares in Nusajaya, between the new Johor state administrative centre and the second crossing to Singapore.

Under the agreement, Millennium Development will be the master concessionaire and land developer for the 146-hectare financial district with an investment of about RM1.1 billion.

KEY FACTORS WHICH DRAW INVESTORS TO IDR

Mubadala, KFH and Millennium Development will respectively lead a consortium each and collectively invest more than US$1.2 billion in land and infrastructure to build three clusters, namely a lifestyle and leisure cluster, a cultural cluster and a financial district, in Node I.

Ali Hassan said Saraya representatives would be available to complement the services provided by other financial markets in the region, especially with Malaysia being the hub of Islamic finance.

He listed the key factors which attracted the group to the region.

As a real estate developer, he said it was important for the company to work hand in hand between the public and the private sector.

"And what attracted us here is the infrastructure that is provided by the government... that's number one... the incentives, taxation and legislation... to allow us to proceed with the plans which are to be introduced in the district," Ali Hassan said.

"All these are provided for by the Malaysian government to attract potential investors," he said.

A tour of the IDR on Tuesday lifted his confidence further of the region's potential to succeed in drawing investors, especially the infrastructure, road networks and incentives provided for by the government.

"The zone that we have chosen will ultimately be the zone that will be primarily focusing on attracting financial institutions to make their presence, plus support services that will be required as a result of the financial institutions that will be in the district," Ali Hassan said.

"So there will be a residential community, other primary services, as well as other services to be offered by our colleagues and other investors who signed the agreements today (yesterday), to enable any financial institution to have a presence in our zone," he said.

The financial district will be equipped with other amenities such as residential units, medical and hospital facilities, schools, and entertainment outlets.

"I truly believe that all these together, will make this a truly successful development masterplan that will attract a lot of investors ultimately," Ali Hassan said.

"So we will act on our behalf as a real estate developer, we will also bring in co investors to develop specific zones or to be part of the masterplan," he said.

BULLISH OF ISKANDAR DEVELOPMENT REGION

Ali Hassan remains bullish of Johor, specifically the Iskandar Development Region. The IDR, a brainchild of Prime Minister Datuk Seri Abdullah Ahmad Badawi, was launched late last year and is being designed as a new growth centre for the country.

When completed in 20 years, it will become a landmark development with top-class lifestyle and leisure enclaves and is expected to create some 800,000 new jobs.

The IDR, covering 2,217 sq kilometres, is nearly three times the size of Singapore. It is an ambitious plan aimed at making the region bigger than China's Shenzen, which has benefited greatly from Hong Kong.

"Every site is unique with its own heritage and architecture. We don't want to compare one location to the other. We are not developing Johor (IDR) so that it is in competition with any place, but to complement with what is out there," Ali Hassan said.

"As we were looking to expand into this part of the world, we found Malaysia to be our first opportunity to invest in such a mega-size real estate," he said.

"As a group, we have a presence in the Middle East and Europe, and this represents our first opportunity in the region," he added.

KEY TO SUCCESS IS TO ATTRACT ANCHOR TENANTS

"The most important challenge has been overcome, that is the fact there is already infrastructure in place. Our job is to start developing the zone until it is completed so that it harmonises with the rest of the masterplan and infrastructure that is provided," Ali Hassan said.

"Very soon we have to finalise our masterplan. We have to present the final concept to the government and ultimately commence marketing the zone for potential tenants. The key to the success of this project is to attract anchor tenants, that is, international financial institutions that will establish a presence in this district," he said.

To put the plan into action, the company will mobilise a full team who will be present in the IDR to expedite work on the project.

"It is part of our strategy... we have done this before... we truly believe this will be a good challenge InsyaAllah (God willing), it will be successful," Ali Hassan said, highlighting the company's wide international exposure in real estate development.

Saraya specialises in hospitality and mixed use real estate development, land development and property development.

Millennium Development covers a broad range of large scale projects, such as the reconstruction of Beirut Central District (Solidere) in Lebanon, a new downtown in Jeddah and the strategic planning for the Al-Abdali project, a new downtown in Amman, Jordan.

Currently, the company is responsible for the development of a US$40 billion (RM1,400 billion) new city in Aktau on the Caspian Sea in Kazakhstan. Its construction partner is Saudi Oger, a prominent construction company in Saudi Arabia.

DRAWING INVESTORS TO THE FINANCIAL DISTRICT

"We have done various types of real estate initiatives, such as hospitality and resorts, and we have also developed urban downtowns. We have a very diversified expertise in real estate. We know what it takes to develop financial districts, and we are affiliated to major estates and major banks," Ali Hassan said.

"We hope to ultimately attract other investors to the (financial) district (IDR). IDR is our first investment in Malaysia. Next, we would be interested to develop some kind of resorts," he said.

Ali Hassan said the financial district was expected to draw investors such as banks, investment houses and private equity funds.

"All will come as a result of the incentives, infrastructure, tax incentives, provided for by the IDR. Key to having them operate is the benefits provided. The incentives provided by the Malaysian government will position Johor on a very competitive edge with the rest of the world," he said.

"I think they (the government) have truly put in the initiatives to make the IDR attractive to investors."

Ali Hassan was also full of praises for Khazanah Nasional, the government's investment arm which is spearheading the IDR.

"Malaysia is always on our radar screen. Khazanah has done a good job in promoting the IDR overseas. That's how we came across the IDR. Malaysia as a country has a success track record for the past two decades," he said.

"I think the story will always be bright for Malaysia and will continue to be brighter, especially with the country dominating the tourism market from the GCC," Ali Hassan said, noting that in the past few years, most hotels in Kuala Lumpur were operating on a 100 percent occupancy, including service apartments.

MALAYSIA TRULY ASIA

"More tourists are coming from the Middle East to Malaysia. They feel very comfortable coming here... the culture, religion, acceptance and hospitality," Ali Hassan said.

"From the financial perspective, whenever you have a government offering incentives, giving comfort and security to investors, that is what it takes for them to come here," he said.

"There's the financial and political risks to be considered. Once these two factors are addressed, which is not an issue here, I truly believe more investors will come here."

Ali Hassan attributed the large influx of Middle East tourists who spent longer duration in Malaysia to the excellent job of Tourism Malaysia, which has been aggressively promoting the country in that part of the world.

He noted that the slogan "Malaysia Truly Asia" could be found everywhere in the Middle East.

Other plus factors also contributed to Malaysia's ability to attract investors from the Middle East, Ali Hassan said, noting that Malaysia offered an attractive package for people from the Middle East.

They are Malaysia's role as chairman of the Organisation of Islamic Conference (OIC), its position as an economic power in the region, a halal hub, and a combination of all types of tourism, that is sun and sea seekers, city tourism, shopping experience and entertainment.

"All these elements are available. You cater to people who want to come to the beach too. KL visitors can enjoy a variety of shopping outlets and amusement parks for the kids. Of course, halal food available here, which is an acceptable choice for the Middle East people," he said.

On Saraya's foray in Malaysia, Ali Hassan said: "We always consider ourselves as a long-term investor. It is the responsibility of a developer to invest and create a track record."

-- BERNAMA

[nazrey]

UEM Builders seeks more jobs in Malaysia
By Sharen Kaur
September 1 2007
BusinessTimes

Preparations are being made to win construction jobs in Nusajaya and the Iskandar Development Region as well as looking at opportunities in Penang, Kedah, Melaka and Terengganu, says UEM managing director

UEM Builders Bhd, which expects to double its order book to RM5 billion this year, is looking for more jobs in Malaysia.

Managing director Ridza Abdoh Salleh said UEM is gearing to secure infrastructure projects like rail, road and water, and development of buildings in Nusajaya, Johor, and those under the Ninth Malaysia Plan (9MP).

"We are monitoring the development. Preparations are being made to win construction jobs in Nusajaya and the Iskandar Development Region (IDR) such as phase 2 of the Johor State New Administrative Centre (JSNAC) and Waterfront Development projects, and phase 1 of the Medical City, valued at more than RM500 million collectively," Ridza told Business Times in an interview.

UEM has contracts for Phase 1 of the JSNAC and Waterfront projects worth RM230 million and RM45 million respectively.

Ridza said UEM is also looking at opportunities in Penang, Kedah, Melaka and Terengganu, where projects are in preliminary stages of evaluation.

"If given the opportunity, we will be interested in participating in the Penang Outer Ring Road project and the Penang International Airport extension works. However, our primary focus is on the Second Penang Bridge project," Ridza said.

UEM's construction unit has a joint venture with China Harbour Engineering to construct the RM1.5 billion bridge that will open in 2011.

The group is actively looking for infrastructure development jobs in the Middle East, India and Indonesia, where it has RM1.2 billion, RM154 million and RM233 million worth of jobs respectively.

"UEM hopes to participate in a highway project undertaken by Projek Lebuhraya Utara-Selatan Bhd in Indonesia," Ridza said.

On another note, Rizda said UEM is diversifying its role and expanding its earnings via multi-prong initiatives like exploring regional development projects and opportunities independently or through joint ventures with local and foreign partners.

"We are not limiting ourselves to infrastructure works only. We are exploring new ventures such as property development, industrialised cleaning and shutdown maintenance, oil and gas, and industrialised building system," Ridza said.

He said UEM will be able to optimise and generate revenues and profits from projects it secures. It is targeting more than 10 per cent growth in profit margin from projects recently secured.

According to UEM's key performance indicator, the group's revenue this year could surge 55 per cent.

It posted a net loss of RM21.5 million on revenue of RM1.8 billion for the year ended December 31 2006.

"Being a government-linked company may have its advantages, but UEM prefers to compete on a level playing field. The industry requires players to be competitive locally and internationally, and we will instill the values such as competitiveness and enterprising among our staff," he said.

[nazrey]

Envoy: Start investing in IDR
Sunday September 2, 2007
By NELSON BENJAMIN
TheStar



Lim (centre) having a discussion with Parameswaran during the reception
at Sentosa Island on Friday as Singapore Red Cross chairman Lt-Gen (Rtd)
Winston Choo looks on.

SINGAPORE: Singaporeans should make their move now to invest in the Iskandar Development Region (IDR), especially with the recent announcement of USD$1.2bil (RM4.1bil) in investments from West Asia.

Malaysian High Commissioner to Singapore Datuk N. Parameswaran said Singaporeans should start moving as the IDR was an ideal hinterland for the island republic as it had vast opportunities for carrying out business and was also a place to stay.

“There is a natural symbiosis that we can build together. Do not sit down and think about it too long.

“As you can see with the recent announcement of West Asian investors, the IDR is not dependent on Singapore,” he pointed out.

Parameswaran said the latest announcement only represented about 1% of the IDR’s total area, which was three times the size of Singapore.

“This is a 20-year project. Surely, there will be other major announcements soon, maybe involving another area or even a theme park,” he said.

Parameswaran urged Singaporeans to disregard the “small voices” as the voices from the top wanted everybody to be there, including Singaporeans.

“The synergy between Malaysia and Singapore has already existed as we are natural partners. Even Malaysia’s International Trade and Industry Minister Datuk Seri Rafidah Aziz has given the assurance that our ties in trade, investment and tourism cannot be cut,” Parameswaran added.

He was speaking to reporters after hosting a reception to mark Malaysian’s 50th anniversary in Sentosa Island here on Friday.

More than 500 dignitaries and guests attended the event including Singapore Trade and Industry Minister Lim Hng Kiang and Attorney-General of Singapore Chao Hick Tin.

“Someone told me that we need some big American companies to come into IDR. We already have companies like Flextronics, Evergreen and Seagate operating in Malaysia,” Parameswaran said.

He said Singapore should now take the first step to discuss about having a better link between Malaysia and Singapore as the causeway was becoming too congested.

“We tried before and failed. Now the Singaporeans should try and let's see how it goes,” he said, adding that there was no point in trying to have a third link when the problems about the causeway have not been resolved.

“No point having easy access cards or a thumbprint biometric system for both countries when you still get caught in the traffic jam at the causeway,” Parameswaran said.

[pedang]

US$10b Mideast investment for Iskandar

September 4 2007

MORE than US$10 billion (RM35.1 billion) will be spent by Middle East investors over the next few years to develop the tract of land that they recently bought in the Iskandar Development Region.

Officials familiar with the transaction said that this amount will be pumped in to turn Node 1 of the project into a world-class lifestyle and leisure cluster; a cultural cluster and a financial district.

Last week, four agreements were signed between the South Johor Investment Corp Bhd (SJIC) and investors from the Middle East.

Mubadala Development Co, Kuwait Finance House and Millennium Development International Co committed US$1.2 billion (RM4.21 billion) to buy 892ha of land in the area. Aldar Properties PJSC will be managing the development of the project.

In each of the consortia, SJIC will be a strategic partner with a 30 per cent stake.

It is learnt that the investors have to begin developing the area as soon as possible. And the target is to get cracking by 2008.

Lawyers and bankers familiar with similar scale development in the Middle East say that agreements usually have a clause requiring investors to complete a certain percentage of the project within a specified timeframe.

The US$10 billion to be spent to turn Node 1 into a world-class masterpiece will spark off a construction boom in the south.

The main beneficiaries are likely to be construction companies like Putrajaya Perdana which signed an agreement with Aldar Properties last week to provide consulting and construction services for the Iskandar region projects.

But the inflow of funds is also going to have a significant multiplier effect and will impact on the lives of everyone from property agents to those involved in the retail and cottage industries.

Mubadala and Aldar are involved in some of the most ambitious projects in the Middle East, arguably in the world.

They are developing islands off Abu Dhabi into top-class cultural and lifestyle enclaves.

[pedang]

Mubadala group may invest RM21bil in IDR

By YAP LENG KUEN

PETALING JAYA: Of the three consortia coming in a big way to invest in the Iskandar Development Region (IDR), Mubadala Development Co is expected to come up with more than half of the almost US$12bil (RM42bil) to be pumped in.

Sources indicated that last week’s signing involved only the purchase of land for US$1.2bil. The entire development spans three nodes in the IDR which involves the development of a financial district, an entertainment and cultural centre and a commercial centre.

The Mubadala group appeared to have the most ambitious plan for the IDR, said sources close to the three investors. In fact, real estate is one of the upcoming areas of focus at Mubadala, which is a wholly-owned, principal-investment vehicle of the Government of the Emirate of Abu Dhabi.

According to its managing director and chief executive officer Khaldoon Khalifa Al Mubarak, healthcare and real estate offered significant opportunities in the future. The group is currently involved in the energy, infrastructure and motor vehicle sectors.

Among its notable investments of 100% are in the Abu Dhabi Future Energy Co, Abu Dhabi Knee & Sports Medicine Centre, Abu Dhabi Terminals, Horizon International Flight Academy and Imperial College London Diabetes Centre.

Its other investments include Dolphin Energy Co (51%), listed company Emirates Ship Investment Co (32.9%), Ferrari (5%), and Piaggio Aero Industries (15%). It also has between 5% and 15% on a project basis in the Mukhaizna oil field in Oman, as well as oil explorations in Libya and Oman.

Besides Mubadala, the other consortia at the IDR are Saraya Holdings, via urban development arm Millenium Development International Co, and Kuwait Finance House.

Putrajaya Perdana Bhd, which inked a memorandum of understanding last week with Aldar Properties (the master planner for the consortium’s IDR project) to provide construction, consultancy and a range of services, is expected to be the main contractor for most of the jobs at the three nodes in the IDR.

Sources indicated Putrajaya Perdana, in its aim to be an international construction house, was likely to invite Malaysian and Singaporean companies with expertise in civil engineering, water and electricity to complement its niche in the commercial sector.

The construction giant is expected to initially undertake jobs in the IDR and move on to the Middle East.

[pedang]

Ekovest may secure RM1.6b IDR jobs

Email us your feedback at fd@bizedge.com

EKOVEST Bhd has the potential to secure RM1.6 billion of orders out of the total RM4.3 billion worth of projects in the Iskandar Development Region (IDR), CIMB Research said.

The research house said: “We think this is achievable as the company is already the main contractor with exclusive rights for Danga Bay Sdn Bhd and has already been involved in several developments via Limbongan Ekovest since 2000.”

It reiterated a “trading buy” on Ekovest with an unchanged revised net asset value (RNAV)-based target price of RM4.40.

“Ekovest is our top pick for a direct play on property and infrastructure in IDR via Danga Bay. Our unchanged FY08-10 forecasts have already factored in the potential new orders,” it said.

CIMB Research said potential catalysts for further re-rating include the latest news flow on the IDR and acceleration of property developments in Danga Bay which will provide a new benchmark for land valuations.

The research house said Ekovest’s FY07 net profit came in 24% above its forecast and 14% above consensus because of stronger-than-expected margin expansion and lower tax rates.

While its top line notched up a scorching 55% growth rate due to the recognition of new contracts, net profit more than doubled as earnings before income tax margin widened from 6.3% to 7.5%, and tax rates came off.

According to CIMB Research, the growth achieved at the top line was primarily driven by three main projects recognised during the period such as the RM600 million Duta Ulu Kelang Expressway, the RM500 million Kolej Universiti Teknologi Tun Hussein Onn and the RM366 million Universiti Malaysia Sabah.

“These projects are still at the early stages and should contribute to its construction earnings over the next 1-2 years.” it said.

The research house also said Ekovest’s order book is good for another two years as its outstanding order book of RM2.5 billion still had scope for expansion.

“The next big project, which is yet to be rolled out, is the RM1.2 billion National Institute for Natural Products, Vaccines and Biologicals, However, the structure is still being finalised and is expected to be firmed up by year-end,” CIMB Research said.

[alsen]

Gulf firms in $1.2bn Malaysia deal



Investors from the Middle East have agreed to invest about $1.2bn in the Iskandar development zone in southern Malaysia.

This is the first big foreign investment in a government plan to develop the country’s south.

The investors are led by Mubadala Development Company, the investment arm of Abu Dhabi, which has committed $520m.

The rest of the money is coming from Al-Nibras 2 Limited, a subsidiary of Kuwait Finance House, and Abu Dhabi's Millennium Development International Company.


The project will be managed by Aldar Properties PJSC, an Abu Dhabi-based developer.

The government is reportedly relying on Middle Eastern investors to help fund a plan to turn an area three times the size of Singapore, into an Asian metropolis.

A Malaysian state agency that manages the Iskandar zone said in a statement: "This is a historic and strategic landmark transaction between our two regions."

The group will partner the South Johor Investment Corporation (SJIC), to develop 2,230 acres into an "international city", a global hub for trade, commerce and education.

SJIC would hold 30 per cent of the venture.

Foreign focus

The southern state of Johor lies about 1km away from Singapore, with $147bn in foreign reserves, but has a reputation among Singaporeans for street crime and cheap goods.

Malaysia has invited Singapore investors to join the Iskandar development, but federal and local politicians in Johor do not want to rely too heavily on Singapore money due to decades of suspicion and strained ties between the two nations.

The SJIC, which is controlled by Khazanah, a state investment arm, said the Middle East group would spend the $1.2bn to acquire land and develop infrastructure.

The SJIC has also said that the Gulf investors would make "further development investments of several multiples over the initial investment of $1.2bn over a 20-year period".

Investment declining
Late last year, Abdullah Ahmad Badawi, the prime minister, has said that roughly $105bn in mostly private investment would be needed over 20 years to develop Iskandar into a regional centre for industry, tourism, entertainment and luxury accommodation.

The 2,200sq km development area will include a high-tech park, logistics and industrial precincts, educational park, regional hospitals, marina, waterside villas, theme parks and exclusive, gated residential communities.

But analysts have said that Malaysia will struggle to lure the dollars away from other nearby growing economies like Thailand, Vietnam, India and China.

Foreign direct investment in Malaysia has steadily declined. In 2006 it amounted to an estimated $3.9bn, compared to $5.5bn in 2001.

http://english.aljazeera.net/NR/exer...E47147D072.htm

[pedang]

September 05, 2007 17:15 PM

IDR Continues To Draw Mid-East Investors

By Salbiah Said

PUTRAJAYA, Sept 5 (Bernama) -- Last week's injection of investments worth RM4.1 billion from the Middle East to the Iskandar Development Region (IDR) in southern Johor is set to be just a foretaste of more investments from that part of the world to the IDR.

"I'm confident we will see more large investments from the Middle East to the IDR within a month," Johor Menteri Besar Datuk Abdul Ghani Othman told Bernama here recently.

He declined to elaborate as this is still at the discussion stage, as with proposed investments from Japan and China. wowow.. can't wait

"They are not yet in a form that can be surmised as finalised, perhaps they all will be finalised before year end," he said.

Abdul Ghani described the RM4.1 billion investment from four Middle East companies last week as the initial round of investments but still the largest amount so far in foreign direct investment since the IDR was launched last November, and said this reflects the confidence foreign investors have in Malaysia.

He believed that this momentum will prompt investments from other sources as well due to the multiplier effect.

According to him, the RM4.1 billion investment is for land and infrastructure and will be spent in about six months.

"Locals are being contracted to undertake the infrastructure work, and after this is completed in the next six months, this will be followed by investments in three clusters - lifestyle and leisure, cultural, and financial - which will consist of nine themed zones," he added.

Last week four agreements were signed between South Johor Investment Corporation Bhd (SJIC), which coordinates the development of IDR, and consortiums from the Gulf Cooperation Council states.

The consortiums are led by Millennium Development International Company (MDIC) which is the urban development management arm of Saraya Holdings, Mubadala Development Company (MDC) and Kuwait Finance House (KFH).

Aldar Properties PJSC, a leading Abu Dhabi-based developer, is the master development manager of IDR's first international integrated city development, known as Node I, which encompasses 892 hectares in Nusajaya including Johor's new administrative centre and the Second Link to Singapore.

Abdul Ghani said activities to be developed in the three clusters are city centre, golf village, amusement bay, residential district, medical and wellness village, logistics village, creative park, heritage district and financial district.

According to him, an important aspect of this investment is that the Middle East companies involved have a good track record and have been successful in real estate development throughout the world.

"They in fact chose the IDR as their first investment destination in Southeast Asia," he added.

Abdul Ghani outlined the factors which are drawing Middle East investors to the IDR.

These include the IDR's central location in Southeast Asia, the confidence-instilling infrastructure, the government's various attractive investment incentives, a welcoming environment including rivers, lakes and natural resources, land size, and cost-competitiveness for investors.

"We have given an assurance that we will consider all their applications speedily, probably within a month with the setting up of a one-stop centre, so that they won't be dragged down by exacting procedures," he added.

IDR's development comes under the Iskandar Regional Development Authority (IRDA), a statutory body co-chaired by Prime Minister Datuk Seri Abdullah Ahmad Badawi and Abdul Ghani, which will ensure that plans and proposals which are submitted are processed efficiently.

On tourism, the Menteri Besar believed that most of the tourists will come from within Southeast Asia as well as China and India.

"We hope to realise the vision for the IDR to have explosive economic growth in the global sense," he said. "We also hope the Prime Minister's push for the IDR to be the ideal planned development location will be realised."

The IDR sprawls over 2,217 sq km - three times the size of Singapore - and is an ambitious effort to best China's Shenzen special economic zone, whose success has been largely attributed to its location as the hinterland to Hong Kong, as the IDR is to Singapore.

The government wants the IDR to be the region's largest growth centre, and the government's investment arm, Khazanah Nasional Bhd, is the primary driver of this vision.

The IDR, originally conceptualised as the Southern Johor Economic Region (SJER), is expected to draw huge multinationals in the course of its 20-year development, especially with Senai Airport, Port of Tanjung Pelepas and Johor Port, which are already serving Southeast Asia and beyond.

[emzeti]

lucky..johor..IDR lucky..hmm, not sarawak

[TWK90]

September 10, 2007 19:43 PM

Iskandar Incentive Details By Month's End


By Tham Choy Lin

URUMQI (China), Sept 10 (Bernama) -- Incentives for the Iskandar Development Region (IDR) will be fleshed out in detail and announced by the end of this month, said Johor Menteri Besar Datuk Abdul Ghani Othman who is also expecting IDR to rein in several more investments before year-end.

"They will be made more clear and precise. I would imagine some investments would be tailor-made for the incentives," he told Bernama.

The full perks will be laid out for all six service sectors -- creative industries, education, financial advisory and consulting, healthcare, logistics, and tourism.

The IDR board co-chaired by Prime Minister Datuk Seri Abdullah Ahmad Badawi and Abdul Ghani is scheduled to meet on Sept 24.

Abdul Ghani is here for a three-day business and cultural mission with the Malaysia-China Business Council to enhance links with the Xinjiang region. In his delegation is Iskandar Development Region Authority (IDRA) chief executive officer Datuk Ikmal Hijjaz Hashim.

Stretching across the southern tip of Johor, IDR is three times the size of neighbouring Singapore and is being developed as the region's most dynamic economic hub.

It made headlines recently by attracting RM4.1 billion from a Middle East consortium for the first of three nodes of the project and more investments are tipped in view of the keen interest expressed by international investors.

Asked when he expects the next tranche of overseas investment, Abdul Ghani said: "We should be able to have more conclusive discussions, another few more before the end of the year from the Middle East and other parts of the world."

He said a mission would be sent to China, most likely to Shanghai, because the IDR has caught the eyes of tourist related and real estate developers, including the Shimao Group owned by China's ninth richest tycoon Hui Wing Mau who made a special trip to Johor to size up its potential.

"We would love to have the Chinese to come to IDR. We had very positive feedback from them after the Malaysia-China Business Council meeting in Johor Baharu, where they saw the potential for themselves," Abdul Ghani said.

He also urged Malaysian investors to make their moves on the IDR, especially in developing properties to meet the demand of professionals and multinational companies moving to the region.

IDRA chief Datuk Ikmal Hijjaz Hashim said details of the incentives were being finalised.

"We have already announced the broad and general incentives and now we are working out the details like with the tax authorities, Bank Negara and non-fiscal aspects like with immigration," he said.

He welcomed the 25 per cent single tier corporate tax announced in the recent national budget, saying that it would encourage foreign investors in the IDR to stay for the long term after the 10-year tax-free status lapses.

It was announced earlier that investment projects approved by the IDRA in designated zones will be eligible for a 10-year corporate tax exemption as well as waiver of the withholding tax on specific payments, provided the projects are implemented by 2015.

The companies undertaking these projects are free to source their capital globally as well as employ foreign staff without restrictions, within approved zones.

-- BERNAMA

[nazrey]

Tech Savvy Cops For IDR
September 10, 2007 17:15 PM


JOHOR BAHARU, Sept 10 (Bernama) -- The search for the best possible security system for the Iskandar Development Region (IDR) has taken the authorities to France, China, Singapore and the United Kingdom.

And the Police are convinced that the answer lies in modern technology and computer savvy cops.

Royal Malaysia Police director of logistics Datuk Zainal Mohd Tahir said that while there is no one perfect system which Malaysia could copy in it's bid to provide the best security system for the IDR, there are certain elements that need to be incorporated.

"Our officers have gone to France and the United Kingdom and also to China and Singapore to look into the security systems employed by these countries. We can never copy wholesale the system and the methods they use because no two countries are alike.

"But we are convinced that using modern technology and the right people are key to providing the best security system for the region," said Zainal after the official opening of the RM2.4 million Taman Ungku Tun Aminah police station here Monday.

The IDR which spreads over an area of 2,240 square km lies on the southern tip of Johor and is touted as the new growth corridor where multi- billion ringgit investments are expected.

"The surveillance of the entire region can than be monitored from a central control room and according to recommendations, police patrol cars for the IDR will be equipped with computers and cameras, which are all linked to the control centre.

"Therefore we need trained police personnel, officers who know how to operate the new technological tools in their effort to combat crime," said Zainal.

"Possibly by the end of next year we can see the new system being implemented for the IDR," he added.

-- BERNAMA

[skyscraperboy]

Malaysia Developers Attract Fans
By Attempting Johor's Makeover

JOHOR BAHRU, Malaysia -- Investors take heed: Property prices in Johor Bahru, the sprawling urban area on the southern tip of the Malayan peninsula, are as much as 30 times lower than those across the narrow sliver of water, in neighboring Singapore.

That's a bargain that won't last much longer, many analysts say.

With the Malaysian government set to transform Johor Bahru into a major metropolis by feeding off Singapore's prosperity -- a plan similar China's Shenzhen with Hong Kong -- property prices could soon be soaring.

The plan represents an opportunity for investors in Malaysian stocks that are most exposed to the Iskandar Development Region, or IDR, as the project is known.

With the government's prestige on the line, "Malaysia has no choice but make the IDR project succeed," says Dr. C.K. Lee, chief executive of Alpha Asset Management in Kuala Lumpur. "The price of land there is very cheap. So, from a property-play viewpoint, you just sit and wait, and the government will pump in the money."

Malaysian officials estimate that tens of billions of dollars will be invested in the IDR project as the population of the area -- three times the size of Singapore -- doubles to some three million people by 2025.

In the first sign of large-scale international interest in the plan, Abu Dhabi's state investment company Mubadala Development Co., the Kuwait Finance House, and a unit of Saraya Holdings, which is an investment company headed by the son of the late Lebanese Prime Minister Rafik Hariri, this month announced they will invest an initial $1.2 billion in IDR projects, building new infrastructure and a financial-services hub.

UEM World, a listed Malaysian state-controlled land and development company, is already building Johor's new administrative capital, the city of Nusajaya; it is also one of the biggest land owners in the area. Dr. Lee says his fund holds UEM World shares, and is considering buying stock in Gamuda, a construction company that is building an extensive road network in Johor. According to Dr. Lee, UEM World offers investors a double play of value increases from land appreciation and money it makes in actual construction.

Citigroup also views UEM World as the "key beneficiary of the uptrend in land prices" in the IDR, with a "buy/high risk" rating and a target price of five ringgit ($1.43), up from its current price of 3.96 ringgit. Kuala Lumpur-based Citigroup analyst Penny Yaw calculated in a recent note that every ringgit-per-square foot rise in Johor property prices would lift UEM World's revalued net asset value by 5%, or 23 sen a share.

Credit Suisse is even more bullish on the Malaysian company, initiating coverage in August with an "outperform" rating and a 12-month target price of six ringgit. "UEM is foremost an exposure to Johor property...and provides the property inflation angle," said analyst Hon Sze Leong in an August note to investors.

The analyst estimated that the value of UEM World's landbank, which includes high-end residential developments that are already being snapped up by Singaporean investors, will rise more than 50% to 31 ringgit per square foot from the current 18 to 20 ringgit. UEM World's share price has more than doubled this year.

Credit Suisse cautioned, however, that the land in the area where UEM World concentrates, Nusajaya, should be at a discount to Danga Bay, the adjoining part of Johor Bahru that has been designated as a financial and commercial center, with higher property valuations. The company with the biggest exposure to that development is Ekovest, a small-cap stock listed on the Kuala Lumpur exchange. Ekovest shares are have nearly doubled in value for the year.

Another property play on Johor, analysts say, may be SP Setia, one of Malaysia's biggest developers. In July, Credit Suisse raised SPS's rating to "buy," with a 12-month target price of 11 ringgit per share. "With a strong brand name and Johor projects accounting for 30% of its land bank, is well-positioned" to benefit from the area's growth, Credit Suisse equity strategist Soek Ching Kum wrote in a note to investors. SPS closed at 8.1 ringgit yesterday and is up 59% so far this year.

Still, not everyone is convinced that the IDR project will deliver on its promise. The doubters point to Malaysia's ambitious plan to create a global information-technology hub, Cyberjaya, near Kuala Lumpur in the 1990s. After an initial buzz, that development project has proceeded slowly.

"The trouble with Malaysian projects is that they look very good on paper, but when it comes to execution and implementation, it looks quite different," says Tan Teng Boo, chief executive of the Kuala Lumpur-based Capital Dynamics Asset Management. He says his fund doesn't own UEM World, which is 53% state-owned, because of difficulties in properly analyzing government-controlled companies, and doesn't hold SPS because of its current high valuation.

Moreover, talk of development in Johor, skeptics like Mr. Tan point out, isn't exactly new: Plans to integrate the area with Singapore date back to 1989, and have consistently fallen victim of perennial tensions between the Singapore and Malaysian governments.

But these tensions, embodied in deep personal antipathy between former Prime Ministers Mohamed Mahathir of Malaysia and Lee Kuan Yew of Singapore, have largely eased nowadays, as the two countries enjoy one of the warmest spells in their relationship since separating in 1965. Malaysia's Prime Minister Abdullah Badawi and Singapore's Lee Hsien Loong met early this year to discuss the IDR project, and agreed to work together on implementing it.

"You have a new leadership now, not just in Malaysia, but in Singapore, too," says Mark Matthews, chief Asia strategist at Merrill Lynch in Hong Kong who predicted that "Johor will be a success" in a report earlier this year. While Malaysia needs access to Singapore's capital, he noted, the island-state is also running out of space.

Manufacturing still accounts for 27% of Singapore's gross domestic product, compared with just 3% in Hong Kong, even as the island-state is transforming itself into private-banking and entertainment hub. "If Singapore really wants to be the Zurich and Monaco of Asia, then there is no space for manufacturing there," Mr. Matthews says. The most convenient solution, he adds: transforming Johor into Singapore's "back office" and manufacturing outlet.

[skyscraperboy]

What its mean by, transforming Johor into Singapore's "back office" and manufacturing outlet????

[patchay]

Originally Posted by skyscraperboy

What its mean by, transforming Johor into Singapore's "back office" and manufacturing outlet????

i think like Shenzhen for Hong Kong...

[nazrey]

Rohde & Schwarz opens HQ in Malaysia
By Zuraimi Abdullah
September 12 2007
BusinessTimes

In addition, the German technology specialist could open a new production facility in either Penang or the Iskandar Development Region in Johor

GERMAN technology specialist Rohde & Schwarz GmbH has made Malaysia its operational headquarters for the region and could subsequently open a new production facility in the country, company officials said.

Penang and the Iskandar Development Region in Johor have been identified as the possible location for the proposed production plant.

Rohde & Schwarz Malaysia Sdn Bhd's office at Glenmarie, Shah Alam will oversee the operations of sales, services, engineering and support of the parent company's products and services after establishing its presence in the country for more than 20 years.

Rohde & Schwarz is one of the world leaders in the fields of professional radio communications, test and measurement, broadcast transmitter, radio monitoring and encryption technology.

Established over 70 years ago, the Munich-based company has a presence in 70 countries and achieved a revenue of 1.3 billion (RM6.37 billion) in the year ended June 30 2006.

"Malaysia has been a home ground for us for more than 20 years," Rohde & Schwarz president and chief operating officer Christian Leicher said at the opening of the Malaysian office by International Trade and Industry Minister Datuk Seri Rafidah Aziz yesterday.

"The new office marks another new chapter for us. We are here to share and transfer the knowledge and technology knowhow to Malaysian companies, institutions and universities," he added.

Rohde & Schwarz Malaysia managing director Joseph Soo said the proposed factory will initially produce broadcast transmitters for television operators in particular.

"We are the biggest supplier of broadcast transmitters in the country," he said.

Rohde & Schwarz Malaysia's revenue more than doubled last year to 30 million (RM147 million). Its biggest customers include Telekom Malaysia Bhd and the Malaysian Armed Forces.

The company's number of exployees is expected to increase to 50 by year-end, from 40 presently.

"Every five years, we have to double our growth. Every year, Rohde & Schwarz Malaysia has been targeted to grow by at least 15 per cent," Soo said.

Rohde & Schwarz Malaysia has spent RM10 million on its Glenmarie facility including RM5 million for a fully-automated calibration system.

[nazrey]

Putting IDR in front
Wednesday September 12, 2007

Malaysia needs to be more aggressive to attract investors to the Iskandar Development Region if it does not want to lose them to neighbouring countries

COMMENT BY NELSON BENJAMIN
TheStar




Mammoth project: File photo of (from left) Abdullah, Johor Sultan Iskandar
Ibni Almarhum Sultan Ismail, Johor Tunku Besar Zabedah Tunku Iskandar and
Johor Baru Datuk Bandar Datuk Mohd Naim Nasir looking over the Nusajaya
model at the launch of the Iskandar Development Region at Danga Bay,
Johor Baru, on Nov 4.

RECENTLY, Vietnam’s Prime Minister Nguyen Tan Dung led a delegation of Cabinet ministers, senior officials and businessmen on a two-day visit to Singapore.

The premier was in the island republic to initiate the setting up of a Joint Ministerial Committee (JMC) to oversee and provide high-level political support on their joint-venture projects.

Singapore is now Vietnam’s second-largest foreign investor after South Korea with bilateral trade for the first six months of this year touching S$6.33bil (RM14.5bil). Besides Vietnam, Singapore has had similar partnerships with China since 1993 and Indonesia from 1990 through the Riau Development Framework encompassing the islands of Batam, Bintan and Karimun.

Earlier this year, Malaysia and Singapore set up their own JMC covering four areas of cooperation within the mammoth Iskandar Development Region (IDR), namely environment, tourism, immigration clearance and transport links.

The IDR was launched in November last year with much pomp with the Iskandar Region Development Authority (IRDA), South Johor Investment Corporation (SJIC), Nusajaya and Danga Bay as the pioneers of the project.

Despite many trade visits organised by many parties, including the Malaysian High Commission in Singapore, to lure Singaporean investors, the announcements have not been “attention-grabbing.”

This changed a little just before the country celebrated its 50th anniversary of Independence when investors from West Asia inked a deal to invest US$1.2bil (RM4.1bil) in the IDR.

While Real Estate and Housing Developers Association of Johor chairman Steven Shun and Small and Medium Enterprises Association of South Johor president Teh Kee Sim welcomed the announcement, Shun agrees that more such projects are needed to keep the momentum going.

Now that a mega project has been announced, IRDA – the one stop agency to cut bureaucratic red tape for the project – must be at the forefront by giving out speedy approvals.

Both the IRDA and SJIC websites should emulate that of Singapore’s Economic Development Board , which even contains photographs of its investment consultants so that investors will know the persons they will be dealing with in more than a dozen offices around the world.

Investment forms must also be readily available online to enable investors to download and prepare the necessary documentation to be eligible for the many incentives offered in the IDR.

These agencies should also employ qualified consultants who can act as frontliners able to handle the shrewdest of investors, in any language, during presentations and discussions.

Malaysia cannot just rely on funds from West Asia, but should also find ways to entice investments from across the causeway. Although Singapore has emerged as one of Asia's most aggressive investors in the last 10 years, it was only the fifth-largest investor in Malaysia last year.

Many of the projects implemented in the IDR by Middle-East investors will also serve our 4.6 million Singaporean neighbours.

One way of keeping our neighbours updated with the latest developments in the IDR is for Government officials including politicians to personally attend trade seminars across the causeway.

This years’ Business Opportunities in Malaysia seminar in Singapore on Aug 28 noted a record 992 Singaporean businessmen among the 1,224 participants.

The Chief Ministers of Penang and Malacca were actively selling their states, asking Singaporeans to buy a multi-million ringgit golf course or even drive up for durians.

The investment group from Penang even booked a special room and invited potential investors to drop by and have one-to-one discussions.

The businessmen raised many issues during the seminar including the crime situation in Johor, slow police investigation of cases, movement of lorries and mobility into the IDR, legal delays in commercial disputes, pollution and environment controls, the Port Klang Free Zone, and the Free Trade Agreement talks between Malaysia and the United States.

The presence of Johor Mentri Besar Datuk Abdul Ghani Othman at the event would have assured investors that the Johor government is fully behind the project as Ghani is co-chairman of the IDR with Prime Minister Abdullah Ahmad Badawi.

However, the Mentri Besar was unable to make it as he had to accompany the Johor Sultan to the launch of Pusat Islam Iskandar Johor and had to welcome AirAsia's inaugural flight from Macau to Senai.

The Mentri Besar is now in China with a group of about 80 businessmen, politicians and government servants to entice Chinese businessmen to invest in the IDR.

Although each of the four pioneer players (Danga Bay, Nusajaya, SJIC and IRDA) have their own way of doing business in the IDR, there should be cooperation to jointly promote and market the IDR as a package and not just confine themselves to their particular sector.

This mammoth project is expected to put Johor on the world map. A comprehensive marketing plan should be in place as would-be investors have plenty of alternatives to invest their money in.

[nazrey]

Originally Posted by nazrey

Mammoth project: File photo of (from left) Abdullah, Johor Sultan Iskandar
Ibni Almarhum Sultan Ismail, Johor Tunku Besar Zabedah Tunku Iskandar and
Johor Baru Datuk Bandar Datuk Mohd Naim Nasir looking over the Nusajaya
model at the launch of the Iskandar Development Region at Danga Bay,
Johor Baru, on Nov 4.

Tak de JB forumer ke? Datang taken pix!!!