Things you didn't know about how Iskandar, Malaysia became investors' craze

And why it hasn't died off yet.

According to the DBS Asian Post Conference Report 2013, in 2006, when Iskandar Malaysia was unveiled, many did not know what to make of the ambitious master plan.

Pioneer investors then committed to spend RM11 billion on the new development three times the size of Singapore. Fast forward to 2013, Iskandar
Malaysia has now become a buzzword for many investors in Singapore, making it the biggest foreign investor in the area.

Latest data show that as of the ﬁrst quarter of this year, Iskandar Malaysia has attracted RM111.4 billion in cumulative committed investments. In the past year, the excitement over Iskandar Malaysia has been fuelled by catalytic developments such the LegoLand Theme Park, the Coastal Highway and the Johor Premium Outlets.

The buy-in from the Singapore government together with heavyweight investors such as CapitaLand and Singapore tycoon Peter Lim have also added more cheer to the party.

Sharing his insights on Iskandar Malaysia at the DBS Asian Insights Conference, Nor Hisham Mohd Yusof said: “Our vision has always been to have a strong and self-sustaining metropolis of international standing”.

Apart from the clamp down on crime, Hisham said the warming relationship between Singapore and Malaysia has strengthened the investment climate in Iskandar Malaysia.

Today, with the Malaysia Automated Clearance System, Singaporeans can now cross the causeway with much ease as custom forms are no longer needed. Also, in February this year, Singapore and Malaysia launched the KhazanahTemasek Wellness Centre in Medini, he noted.

“In terms of investments, Singapore is still the biggest investor. But there has also been interest from Spain, Japan and the Netherlands,” he said. Visible projects such as LegoLand and EduCity, as well as the booming residential property sector, have contributed to Iskandar Malaysia’s success. Upcoming projects, including Pinewood Studios, Fast Track Motor City, Gleneagles Medini and the LegoLand Water Park will only add to the excitement, he added.

Six years on, the outlook on Iskandar Malaysia still looks bright, said Amy Wong, Senior Vice-President at CB Richard Ellis Malaysia. “Supply growth has been picking up since 2011 and is expected to grow in tandem with high construction activity”.

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