©New Straits Times
(Used by permission)
by Sim Bak Heng
JOHOR BARU: Three major business associations are rolling out the red carpet
for four Middle East consortiums which have set the ball rolling at the Iskandar
Development Region (Iskandar) by agreeing to pump in RM4.1 billion.
They are of the view that the confidence shown by the Arabs
in the southern growth corridor will help pull in more foreign investors.
Johor Malay Chamber of Commerce chairman Syed Ali Alattas said both the
government and the people had to be prepared as the Arabs were bound to have
high expectations of the country’s governance and delivery system.
"Our implementation of plans will have to be on par with world standards which
the Arabs are already used to when investing or doing business in any part of
the world," he said.
"We are good enough to cater to their needs but we must be prepared to move
faster in tandem with their pace in every aspect including management and
financial services.
"It is crucial to know that we provide more than just land
for their investment. Our manpower has to be geared towards their standard. This
means no more red tape, poor maintenance culture, or any hanky–panky."
The funds pumped in by the four consortiums represent the largest foreign real
estate development in Malaysia’s history, but more are coming in within the next
20 years.
The four are Aldar Properties PJSC (Aldar), Mubadala Development Company (Mubadala),
Kuwait Finance House (KFH) and Millennium Development International Company
(MDI).
They would develop an area covering 892ha in Nusajaya, between the new Johor
State Administrative centre and the Second Link, dubbed Node 1.
Johor Baru Chinese Chamber of Commerce and Industry deputy chairman Wong Ton
Yang said the RM4.1 billion was an investment of confidence by the Arabs.
He said the strategic location of Iskandar in Southeast Asia as well as the
political stability in the country were two major attractions for foreign
investors.
"Their confidence will spur others to come in too, be they locals or foreigners,
and this will be good news for the future growth of Iskandar."
Of the investment by the Arabs, Mubadala will pump in RM1.8 billion for the
lifestyle and leisure cluster comprising a city centre, golf village, amusement
bay, residential district and a medical and wellness village in an area of
496ha.
Al Nibras 2 Ltd, a fund managed by KFH, will invest about RM1.2 billion for the
cultural cluster comprising a logistics village, creative park and heritage
district covering 248ha.
MDI will put in RM1.1 billion in land concessions for an international financial
district zone over 146ha.
The launch of Node One was expected to serve as a catalyst for the entire
region, with the consortium members using their connections in Singapore, China,
India and Indonesia to bring in more investments to the IDR.
Johor Indian Chamber of Commerce and Industry Abdul Wahid Syed Ghani said the
RM4.1 billion investment reflected the degree of confidence the Arabs had in
Malaysia and its people.
"But what is more significant is the multiplier effect the investment will
bring. I am sure other foreign investors will take the cue," he said.