Iskandar Malaysia secures investments of RM172.2b in 1H2019

KUALA LUMPUR (Oct 9): Iskandar Malaysia, the southern economic corridor in Johor, remains on the radar of investors with investments of RM172.2 billion of the overall total having been realised as of the first half of 2019 (1H2019).

Knight Frank Malaysia managing director Sarkunan Subramaniam said since its inception in 2006 till 1H2019, it recorded a cumulative committed investment of RM302.09 billion.

“With its current performance pace, Iskandar Malaysia is expected to exceed the targeted investment sum of RM383 billion by 2025,” he said in a statement today.

In 1H2019, 39% were foreign direct investments, mainly from China (RM40.65 billion) and Singapore (RM20.57 billion).

“The Chinese have been investing heavily into property developments, while the Singaporeans continued to eye the manufacturing, as well as logistics sectors,” Sarkunan said.

He also said various organisations, namely the Iskandar Regional Development Authority, Malaysia Digital Economy Corporation and Malaysian Investment Development Authority, had initiated incentives to encourage investments from both local and foreign investors in the region.

“Foreign investors have shared that they were most concerned with the possibility of lower operation costs, strategic location and talent pool, as well as skilled labour in making decisions to invest into the region.

“The availability of such factors are attractive to foreign investors as the impact of lowering operating expenses in the supply chain flow on a long-term basis is essential for businesses to remain competitive,” he added.

Meanwhile, Knight Frank Singapore, Head of Consultancy, Tay Kah Poh said Singaporean investors are certainly positive towards the healthcare sector in Iskandar Malaysia, with the advantage being its proximity to the country, favourable exchange rate, and quality healthcare that is comparable to that of the republic.

“Major healthcare players such as Thomson Medical and Gleneagles have built and operated quality healthcare facilities in Johor and the clustering will act as a huge draw for patients from Singapore,” he said.

Source : Edge Prop