IT`S ALL ABOUT `MAKING THINGS HAPPEN` IN ISKANDAR MALAYSIA

By Muin Abdul Majid

DUBAI, Oct 7 (Bernama) -- Many development projects may not see the light of
day due to the current tough economic and financial climate, but the promoters
of Iskandar Malaysia say it's full steam ahead for the planned metropolis in
southern Malaysia.

Iskandar Regional Development Authority (IRDA) chief executive Harun Johari
signalled to prospective investors who had gathered here for the Cityscape Dubai
2009 real estate exhibition, that things were gaining momentum on the ground.

Speaking to Bernama on the sidelines of the event, he said: "We've had good
investment commitments for the past two-and-a-half years. The focus for us now
moving forward is to make things happen on the ground while at the same time
working on getting new investments."

Launched in November 2006, the Iskandar Malaysia special economic corridor
spans across 2,217 square kilometres, about three times the size of neighbouring
Singapore.

Harun said of the US$13.6 billion committed by investors so far, 32 per cent
of the investments were already being ploughed into areas like infrastructure
works and the development of industrial, commercial as well as residential
areas.

According to him, Iskandar Malaysia is a holistic long-term scheme that will
be ideal for long-term investors looking for consistent returns.

Middle Eastern investors who are already on board include Mubadala
Development Company of Abu Dhabi, Kuwait Finance House and Millenium Development
International.

"I suppose our challenge is to get more (investments), in getting more,
first we look at the global market, we look at whether there are interested
parties from, say, the United States for example in the IT (information
technology) industry," Harun said in between interviews with local as well as
international media outlets covering Cityscape Dubai.

He said IRDA, the planning and implementing agency of Iskandar Malaysia, was
also monitoring recent developments regarding proposed investments in Malaysia
involving parties in Saudi Arabia and Abu Dhabi, in the hope that some of the
funds would go to the special economic corridor.

Harun will also be travelling to Egypt and other countries to scout for
possible investments.

Besides property and real estate, Iskandar Malaysia touts investment
opportunities in health services, education, finance, information and
communications technology and creative industries, electrical and electronics,
petrochemical and oleo-chemical, food and agro-processing, logistics and related
services, and tourism.

According to Harun, the global financial crisis had prompted Dubai developer
Damac Properties to pull out of a waterfront and marina project valued at over
RM300 million in Nusajaya which forms part of Iskandar Malaysia.

"But there are interested parties to take over. Furthermore, we have a
similar value of investment (coming in) but in the manufacturing sector, from
Korea," he said.

"So if you look at the overall picture, the investment is still strong. At
the ground level, specific sectors may have their ups and downs but overall
we're quite happy," he added.

"In fact, this is actually where our strategy works because when you have
the nine economic clusters being developed in Iskandar, it makes for a robust
environment should there be any changes in economic demand."

On whether he expected Singapore to be coming in with more investments for
Iskandar, Harun said IRDA would welcome all investors as long as they were able
to contribute to the development of the economic zone, leading to job creation
and business opportunities.

He said the third largest investor in Iskandar Malaysia for the past couple
of years comprised low-profile Singaporean small and medium enterprises (SMEs).

"They're not in the same league as Mubadala, for example, but they're
already there taking advantage of the cost-effectiveness and proximity of
Iskandar Malaysia to the island state," he added.

"Furthermore, quite a number of people who work with Singapore's SMEs are
Malaysians, so expanding into Iskandar Malaysia is really a logical and
commercially sound (move)."


Harun believed that the basic value proposition offered by Iskandar Malaysia
would be attractive to all investors.

The IRDA chief executive also said that currently 55 per cent of investors
in the economic corridor were foreigners "but we see a lot of potential among
local investors to actually grow in Iskandar Malaysia".

He pointed out that IRDA had been focusing on big investors for the past
years, but now local SMEs had come on its radar.

"The big investors in Iskandar Malaysia will require SMEs to operationalise
their investments. Therefore at the local level we're working with the SMEs to
partner them with the larger investors," he said.

Harun said IRDA was also taking steps to ensure that more Malaysians,
including those in the Klang Valley, were able to keep abreast with developments
surrounding Iskandar Malaysia.

And Iskandar Malaysia, he stressed, would continue to be promoted abroad,
hence its presence at the four-day Cityscape Dubai which opened Monday at the
Dubai International Convention and Exhibition Centre.

Being such a holistic development scheme, Harun reckoned that Iskandar
Malaysia was able to differentiate itself from other development projects
featured at the show.

"The event is very much property-heavy. By being different, we actually
stand out. It gives us ample opportunity to get noticed," he said.

Besides consistently building the Iskandar Malaysia brand, Harun said IRDA's
presence in Dubai was also aimed at reinforcing its partnership with Middle
Eastern investors in Iskandar.

"We want to show that we're together with them in going through the ups and
downs of the property sector," he said.

-- BERNAMA