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Reme Ahmad
Assistant Foreign Editor
M'sia pins big hopes on Iskandar
November 21, 2008 Friday, 03:28 PM
Reme Ahmad ponders why Singaporeans aren't investing in Iskandar Malaysia.

PUTERI Harbour, Ledang Heights, Educity, Afiat Healthpark.

These names don't ring a bell to Singaporeans, or even to most Malaysians. But the developers of Johor's Iskandar Malaysia hope these will be as popular as Johor Baru malls and hypermarkets in coming years.

These projects are part of the southern Johor economic zone. Just drive past the Second Link bridge at Tuas and you can see a whole lot of earth being dug up at various places. 

Although the Iskandar Malaysia project - previously called Iskandar Development Region - consists of the whole of southern Johor, the jewel of the development, in my view, are those projects centred around Nusajaya near Tuas.

Iskandar, named after the Sultan of Johor, covers 2,217 square kilometres, about three times the size of Singapore. The Nusajaya area could be attractive to Singaporeans because it is closer to home, and one can (mostly) escape the traffic madness of using the Causeway to get across the border.

Another reason is that, Nusajaya and its surrounding areas will have well-planned roads and other infrastructure - unlike Johor Baru which grew organically over the decades, and thus haphazardly, like most big cities.

Iskandar will, among other attractions, have Puteri Harbour, a marina for yachts and sea-facing villas (the houses face green trees of the fenced-up Kranji shoreline).

Puteri Harbour Iskandar Malaysia by Nusajaya Malaysia.
(Damac Properties, a Dubai real estate organisation is developing land as wide as 43.6 acres for commercial development in Puteri Harbour.)
Source: Nusajaya Malaysia

Ledang Heights is being sold as a bungalow enclave for the rich and famous. There's a golf course nearby.

Educity will consist of specialised university faculties and private boarding schools. The promoters see costs being lower than in Singapore. 

And then there is Afiat Healthpark which Johor wants to raise as a healthcare hub. There is also a theme park and a financial centre in the works.

Officials say RM40.25 billion (S$17 billion) worth of investments have been committed for Iskandar - nearly half from private sector funds. But Iskandar officials privately ask the same question: Why the limited numbers of Singaporean investors? The lack of interest from major Singapore government-linked companies has been quite pronounced.

I was privately asked yesterday the same questions by the officials when I turned up at the update briefing on Iskandar. My answer was to refer them to what former premier Tun Dr Mahathir said when he was in Johor in March last year, when he was on the attack against the policies of Prime Minister Abdullah Badawi. 

I was at that function in Kulai when he spoke to a pro-Umno crowd, expressing his fear that Singaporean Chinese investors will buy up land in Iskandar. Speaking about the British rule over Malaysia before it gained independence, Dr Mahathir had said: "We became slaves in our country because we gave it to others."

He added that "Malays will be enslaved again by foreigners" if the Iskandar plan is followed through. In May this year, the former premier said the same thing when speaking in Johor about Iskandar:  "After the land is sold, the Malays will be driven to live at the edge of the forest and even in the forest itself."

"In the end, the area in Iskandar Malaysia will be filled with Singaporeans and populated with only 15 per cent Malays." 

He was inferring to Singapore where Malays form 15 per cent of the population. I told these Iskandar officials that except a few, Singaporeans fretted about investing in Johor where they are worried about getting the wrong reception after announcing an investment deal.

True, Dr Mahathir is not in power anymore. But he still wields a big influence among Malays. And then there is another matter that Singaporeans are much worried about when it comes to Johor - crime.

Johor crime rate is "high", people say. Although few Singaporeans figure in the crime statistics, the few horrific stories published in the papers about what happened to those Singaporeans who are crime victims scare many people - be it snatch thefts, car jackings, or house break-ins. 

To its credit, the Iskandar Regional Development Authority is working hard to ensure the security of property and people in the development zone. And the developers are upfront about the crime problem. 

Go to Iskandar's website and you can click on 'Crime Statistics for Iskandar Malaysia'. The data presented showed that there is a general drop between July and August, although there is a spike in violent crime. Perhaps it would be useful if a longer term trend is shown.

Anyway, the worries about crime persist as long as there are horrible headlines in the papers. Today, I received an email reply to my article about the launch of Iskandar of its Educity education hub, someone emailed me: "You mean get educated and robbed at the same time?"

It wasn't a very fair comment but like it or not, crime and Johor has become synonymous as far as many Singaporeans are concerned. I know of Singaporeans who love to drive to Malaysia, but Johor is just an entry point. They drive quickly north and tend to buy properties in Malacca or Kuala Lumpur instead.

And then there is that old worry that investing in property in Malaysia is bad because the federal or state government, or both, often change the rules. Or that no one offers to help, and the law is seemingly lax, if a developer took their money and then ran away.

So Iskandar officials, will have some way to go to convince Singaporeans that they should invest in the upcoming facilities just across the border. Remove worries about not being totally welcomed and about crime, and then Singaporeans will come in droves as investors, not just as shoppers and food lovers. Or to drive quickly north to Malacca and KL.



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Total comments: 20
tassharos
December 09, 2008 Tuesday

Iskandar will... and Ledang Heights is being sold as a bungalow enclave for the rich and famous..fat hope, cause Leisure Farm Resort (Mulpha Holding) development there which made their present to S'porean since 1995 promised life style stay is a leading example of fail development.
The developers of the project have chosen to ignore the relevant laws and have acted irresponsibility.
Be it Strata Act or BCPA it is always in developer favour and they are in no hurry to settle any claim or to resolve issues. And since it is always on resident to prove their cases, delay tactics is the order of the day.
Developers are well aware of this situation and certainly know how to exploit it.
Laman Hijau Gelang Patah LFR (CFO since Mar 2002)
- until now Strata Title is not being distributed
- JMB was formed since early April 2008 (hand-over not being done....dispute on account) so be extra carefull with your investment ......



comment 1719 | Offensive? Report this comment
dEs
December 04, 2008 Thursday

there is jus lack of trust in whatever they are doing over there, especially more so when they are trying to sell big projects to pp here.

a fall in crime statistics means nothing. its jus a statistic. what matters is how people feel when they cross over, what they read about fellow singaporeans' mishap in jb etc.

trumpeting about the future of IDR is ineffective...rather, the powers must think how to make pp here feel safe and secure about their investment and personal safety over there.....in these, actions speak louder than words.

comment 1641 | Offensive? Report this comment
Bugis Johor
November 29, 2008 Saturday

Malays in general never been a problem, they accept Chinese from China century ago and now Singapore belong to Chinese majority. The problem is civil servant driven project..

comment 1507 | Offensive? Report this comment
jjef
November 24, 2008 Monday

The problem with malaysians is that mega projects often become derelict or white elephant. The culture to maintain and innovate seems to lack in their nation's interest. I've seen how Danga bay opened up with much fanfare but after which died down to just another lame coastline. Its also the mentality of the people there, predominantly malays. The need to strive for excellence somehow stops at being "contented". I have friends there who told me the aspirations of its government to expand like China, Dubai, even like Singapore..etc..to emulate the foreign city's successes, but they have many doubts to the govt ability. The plans will go well only if the country and its leaders embrace changes in planning,execution and mindset of how progress should be.
Not only crime rate that hampers investors and visitors but the actual trust in the the govt dealing with foreigners are one of the points that could be seen dampening the IDR. Being multi ethnic and racial nation has its good points, bringing strong traits from different people to unite.Since this year alone with international community viewing the malaysian govt skeptically as it embroils itself in scandals and injustice treatments to minorities, maybe its a good time the govt relook whether timing is right for the project..

comment 1415 | Offensive? Report this comment
kpboyz
November 22, 2008 Saturday

For those who practise IFC in SAF should know the rule, when moving, always spread out. If you cluster together, a grenade drop from the sky and we will all die together.

comment 1387 | Offensive? Report this comment

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