1. Iskandar Malaysia
Strong Sustainable Metropolis of International Standing
Strong Sustainable Metropolis of International Standing
Presentation by:
MOHAMMED ASHRIL
Vice President, Investor Relations
Iskandar Regional Development Authority
3rd December 2009
2. Presentation Outline
1. Iskandar Malaysia Overview
• Strategic Location
• IRDA Roles & Responsibility
• Investment Opportunities
• Progress Update of Projects
2. What can Iskandar Malaysia offer
to Investors?
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
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4. Iskandar Malaysia Is Strategically Located
• Iskandar Malaysia lies at the heart of South East Asia
at the southern tip of West Malaysia within minutes
from Singapore
• Strategically located at the cross roads of East-West
trade lanes
• Centrally located in the heart of East Asia
Source : The Economist Intelligence Unit
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5. Geographical Coverage of Iskandar Malaysia
• Area:
2,217 km2 / 550,000 ac.
• 3 times the size of
Singapore
• Population: 1.4 million
• Five PBTs and 3 districts
Region Area (km2) Population (million)
Iskandar Malaysia 2,217 1.4 (Projected 2025: 3.0 million)
Singapore 690 4.1
Dubai 3,885 1.2
Hong Kong 1,095 6.9
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6. The Iskandar Malaysia Vision
Economic Growth
“To develop Iskandar Malaysia into a strong and
sustainable metropolis of international standing”
Year 2005 Projected (2025)
GDP (RM) 70 billion 325.5 billion
Per capita GDP (RM) 51,765 108,850
Employment 0.610 million 1.428 million
Population 1.4 million 3.0 million
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7. Iskandar Malaysia’s Development Strategy
Vision A Strong Sustainable Metropolis
of International Standing
Economic Institutional
Five International Drivers Socio Framework Infra-
Strategic Rim & Economic & structure
Positioning Catalyst Equity Regulatory Enablers
Pillars Projects Authority
Equitable & Fair Distribution Among Stakeholders
Three Growth and Value Creation
Foundations
Nation Building
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8. Facilitating Regulatory Authority (IRDA)
IRDA was established through an Act of Parliament
to deliver on the Iskandar Malaysia vision.
“IRDA Act 2007 (Act 664) empowers IRDA to
IRDA facilitate the promotion, planning, processing and
infrastructure development.”
Supported by the Prime Minister and Chief Minister of Johore,
both Joint Chairmen of the IRDA Members of Authority and
esteemed Advisory Council
Integrated planning to ensure world-class benchmarks are
adopted in development, for example in transportation, urban
design, safety and security etc.
Collaboration with relevant authorities ensuring seamless
service delivery to investors (example: one-stop-centre to fast
track approval and provide customer service)
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
9. Iskandar Malaysia’s Economic Thrusts
offers Investment Opportunities
Iskandar Economy
“Strong, Diversified, Dynamic and Global”
Services
Educational
Services
Health
Services
Financial
Industries
Creative
Petro
Electrical & chemical Food & Logistic &
The Main Agro
Electronics & related Tourism
Pillars Oleo Processing Services
chemical
Five Main ‘Pillars’ to be reinforced Four New Service-Based Pillars’ being added
Strong Supporting Industries ( Metal Products, Engineering, Non-metallic, Manufacturing Related Services (MRS))
Support
System Strong Supporting Institutions (Education, R&D, Government, Private & social institutions, communication &coordination system)
World-class Professionals and Technical Work Force
Excellent Physical, Infrastructures, including IT
Basic
Foundation Excellent Working & Living Environment
Stable Political, Social Environment
The well-established sectors which are manufacturing-based will be reinforced while
giving new emphasis on new sectors which are services-based
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10. Investments in Iskandar Malaysia
To date investments are
primarily from the private
sector, domestic and
internationally; with the
Government contributing to
infrastructure enhancements
and social welfare.
From the promotional activities including trade missions Iskandar Malaysia has
attracted over 500 site visits from potential investors, domestic and internationally.
Catalyst and new key investors includes Iskandar Investment (IIB), Mubadala, Kuwait
Finance House, Millennium, UEM/Limitless Asiatic (Genting), Central Malaysian
Properties, JCorp, Malaysia Mining Corporation, Malaysia Pacific Corporation etc.
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12. Investment Updates :
Committed vs. Actual Investment
Cumulative Cumulative Actual Investment as
Committed Committed at Sep ’09
Sectors Investment Investment (RM bln)
as at Dec ‘08 Jan’ 09 – Sep ‘09
(RM bln) (RM bln)
Manufacturing 21.70 1.58 10.81
Utilities 2.90 - 0.47
Tourism 0.75 - 0.04
Property 8.17 4.90 2.35
Government 6.83 -0.56 * 1.63
Others 1.40 1.40 0.48
Subtotal 41.75 7.32 15.78
Total Committed 49.07
Investment
* To reflect RMK-9 ceiling reduction of RM557 million
32.2% of the total committed investment have been spent to-date
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
13. Iskandar Malaysia: Geographical Area
• Focused Development at Five Flagships
• 2,217 km2 or 550,000 acres
• 3 times the size of Singapore
Senai – Skudai • 1.4 million population
(Kulaijaya)
Flagship
Flagship
Flagship
Flagship
Johor Bahru
Flagship Eastern Gate Development
City Centre
Nusajaya (Pasir Gudang – Tanjong Langsat)
Singapore
Western Gate Development
(Port Tanjung Pelepas)
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
14. Project Progress Update – Flagship A
Johor Bahru
• Gerbang Sultan Iskandar
City Centre
9 Dec 2008
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: IRDA 14
15. Project Progress Update – Flagship B
Key Projects Location in Nusajaya
SiLC
Horizon
Hills
Educity
Kota
Iskandar
East
Ledang Puteri
Harbour
Medini
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16. Developments in Flagship Zone C
Western Gate Development (Port of Tanjung Pelepas)
PTP expansion (MMC Corp) (RM1.5bn)
• RM1.5 bn
• Berth 11, 12, 13 and 14
• Capacity to increase by 3.2mn TEUs to 11.2mn TEUs by 2010
• Expected to attract additional FDI of RM5bn by 2010
Completed Asia Petroleum Hub : KIC - Bunker Terminal in Tanjung Bin
In Progress • GDV: RM1.4 billion
Planning Stage • Built on manmade island
• located 700m from PTP
MMC Corp: Maritime Centre at Tg Bin
• Initial investment of RM2.0-RM2.3bn,
• Total expected FDI of RM17-20bn
• Total area of 2,255 acres
Zone
C 16
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
17. Developments in Flagship Zone D
Eastern Gate Development (Pasir Gudang)
Pasir Gudang Industrial Park Johor Port – Multi Purpose Port facilities Tanjung Langsat Port (sub. of Johor Corp )
(Johor Corp) - 3,764 acres 1000 acres of land with 600 acres of FZ 3rd port - LPG, petrochemicals (750 acres)
Completed
In Progress
Planning Stage Tanjung Langsat Industrial Complex
Bahru Stainless (M) Sdn Bhd
(subsidiary of Johor Corp)
RM 5bn steel plant inTanjung Langsat
Light, Medium & Heavy Industries
4,198.52 acres
Zone
D
LakeHill Resort City (MPC)
Integrated Resort Development - 500 acres
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
18. Developments in Flagship Zone E
Senai - Skudai
Hi-Tech Park Senai (MMC Corp Bhd ) Johor Technology Park & Sedenak Senai Airport (sub. of MMC Corp Bhd)
1,000 acres Industrial Park Integrated Airport City in Senai
(Johor Corp.)
Completed
In Progress
Planning Stage
Zone
E
MSC Cyberport City (MSC Cyberport ) Johor Premium Outlets
130 acres Genting & Chelsea Property
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19. Project Progress Update – Flagship E
Senai - Skudai • Senai International Airport – Airside
Development
May 2009
Runway extension 446m –
100% Completed
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: Senai Airport Terminal Services 19
21. Presentation Outline
1. Iskandar Malaysia Overview
2. What can IM offers to Investors?
• Excellent Logistics
• Choice Locations
• Quality Human Capital
• Incentives
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22. Excellent Logistics in Iskandar Malaysia
• Six to eight hours flight radius from Asia's
burgeoning growth centres such as Bangalore,
Dubai, Hong Kong, Seoul, Shanghai, Taipei and
Tokyo.
• Within reach of a global market of some 800
million people.
• Accessible by air, land, rail and sea.
• Flanked by three major ports, the Pasir Gudang
Port, Port of Tanjung Pelepas and Tanjung Langsat
Port
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
23. Choice of Locations
Flagship B Southern Industrial
Logistics Cluster
Flagship C Pelepas Free Zone (next
– to Port of Tanjung
Pelepas)
Flagship D Pasir Gudang Industrial
Estate
Tanjung Langsat
Industrial Estate
Flagship E Senai High Tech Park
Sedenak Industrial Park
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
24. Flagship B – Southern Industry Logistics Cluster (SiLC)
Nusajaya • Choice for High Tech Industries &
Logistic
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
25. Flagship B – Southern Industrial Logistics Cluster
Nusajaya • Southern Industrial Logistics Cluster
(SiLC)
• 1,300 acre industrial park.
• Planned to be a clean and green-managed industrial
park
• Excellent connectivity with proximity to Singapore
and Port of Tanjung Pelepas
• Provides opportunities for long term operational
expandability
• Land price starts from RM 26 sq ft
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
26. Flagship C – Port of Tanjung Pelepas and the Pelepas
Free Zone
Western Gate
• Choice for Logistics Hub and
Development
Manufacturing
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: PTP 26
27. Flagship C – Port of Tanjung Pelepas and the Pelepas
Free Zone
Western Gate • Port of Tanjung Pelepas
Development
• One of the fastest growing container port in the world
(ranked 18th in the world)
• Four new berths will be added to increase the port’s
capacity up to 11.2mil TEUs by 2010.
• 400 acres designated as Free Commercial Zone (FCZ) for
logistic activities.
• 600 acres of Free Industrial Zone (FIZ) for light, medium
and heavy manufacturing industries.
• Land leased price starts from RM 26 sq ft
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: PTP 27
28. Flagship C – Port of Tanjung Pelepas and the Pelepas
Free Zone
• Global Players in PTP PFZ
Western Gate
Development
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: PTP 28
29. Flagship D - Pasir Gudang & Tanjung Langsat
Eastern Gate
Development • Choice for Heavy Industries
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30. Pasir Gudang & Tanjung Langsat– Flagship D
Eastern Gate
Development • Choice for Heavy Industries
• Suitable for heavy industries, petrochemicals and
oleochemicals projects
• Close to the international shipping lane and the
availability of the other modes of transport.
• Vast industrial land of about 4,000 acres located next to
Port of Tanjung Langsat
• Leasehold land price starts from RM 15 sq ft
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31. Flagship E - Senai High Tech & Aviation Park -
• Choice for High Tech Manufacturing, Logistic &
Senai - Skudai Aerospace Industries
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32. SENAI AIRPORT CITY OVERVIEW
Development Master Plan
The Senai Airport City consists of an
integrated 2,718.68 acres of free zone and
mix industries development located
adjacent to the Senai International Airport.
The Senai Airport City will be developed as a
premier development with an integrated Work-
Cargo &
Live-Develop-Meet-Play environment.
Logistics Park
The main components of the Senai Airport City
development are:
Commercial i. Zone 1 - 1,138 acres will be developed
& Residential Hi-Tech Park into a High-Technology Industrial Park.
PHASE 3: ii. Zone 2 - 928 acres as a free zone Cargo,
Senai Airport City
(2,719 acres) Logistics & Aviation Park.
iii. Zone 3 - 652 acres to be developed into a
Commercial and Residential Park.
Land leased price starts from RM 25 sq ft
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33. Flagship E – Sedenak Industrial Park
• Choice for High Tech Manufacturing, Small,
Sedenak Medium & Supporting Industries
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34. Sedenak- Flagship E
Sedenak • Sedenak Industrial Park
• Newest industrial area in Johor
• 3,000 acres dedicated for industries
• Easily accessible to the North-South Highway.
• Provides huge opportunity for growth and
development.
• Leasehold land price starts from RM 12 sq ft
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: Senai Airport Terminal Services 34
35. Quality Human Capital
• Human Capital Development in IM is being supported
by IRDA Human Capital Blue Print.
• Three (3) Universities in Johor with strong courses
for Engineering, Aerospace etc. They are University
Technology Malaysia, University Tun Hussein Onn
(Batu Pahat), University Institute Technology Mara
and skills training institutions
• Pool of engineering and technical talent from global
manufacturing industries that already existed in
Johor such as Flextronics, TRW, Seagate, Kiswire,
Western Digital, etc.
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
36. Good Incentives for Manufacturing
Activities
Promoted activities High Technology National and Prepackaged
(General) Projects Strategic Projects Incentives
Pioneer Exemption from tax for Exemption from tax Exemption from tax 5 Exemption from tax
Status 5 years at 70% of for 5 years at 100% of years, may be up to 10 years or
statutory income statutory income extendable to more at 100% of
another 5 years at statutory income
100% of statutory
income
Investment 60% ITA on qualifying 60% ITA on qualifying 100% ITA on 100% ITA on
Tax capital expenditure capital expenditure qualifying capital qualifying capital
incurred within 5 years incurred within 5 expenditure incurred expenditure incurred
Allowance
to be set off against years to be set off within 5 years to be within a period up to
(“ITA”)
70% of statutory against 100% of set off against 100% 10 years to be set off
income statutory income of statutory income against 100% of
statutory income
ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
37. In Summary
Centrally located in the heart of East Asia
Leveraging on the close proximity to Singapore with Global connectivity
Sustainable economic growth within ASEAN region
3 world-class ports,1 international airport and 2 additional ports + an international
airport in Singapore
Connectivity–highways, train, broadband, availability support services
Availability of quality skills/manpower
Upgraded physical and social infrastructure
Consistent and transparent Government policies
Creation of IRDA to facilitate businesses & investments
Ease of sourcing capital, goods and resources
Attractive investor value propositions – High upside potential for investments
Overall Competitiveness – Total cost of doing business
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38. Thank You
“Iskandar Malaysia offering the right balance
of the right ingredients for everyone to invest,
work, live and play”
Contact:
Mohammed Ashril
Vice President
Investor Relations
ashril@irda.com.my
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