JOHOR BAHRU (Aug 27): Iskandar Malaysia has secured committed investments of RM16.75 billion for the first half of this year (1H 2019), contributing to the RM302.09 billion total cumulative committed investments from 2006 to June 2019.
The latest investment figure translated into an impressive compound annual growth rate (CAGR) of 9.7 percent for the past five years, Iskandar Regional Development Authority (IRDA) chief executive Datuk Ismail Ibrahim said.
“The region recorded RM116.7 billion of foreign investment from 2006 to June 2019, of which 47 percent come from the manufacturing sector and 53 percent from the services and other sectors.
“China is the lead country in terms of foreign investment with RM40.65 billion worth of investment, followed by Singapore and the United States with an investment of RM20.57 billion and RM8.11 billion, respectively,” he said in a statement, here today.
Ismail said the manufacturing sector, comprising electrical and electronics, food & agro-processing, and petroleum & chemical products once again remained the leading sector and continued to be the backbone of the promoted sectors with a total cumulative committed investment of RM71.9 billion or 24 percent of the total investment.
The services sector contributed RM27.65 billion or 9 percent to the total cumulative committed investment in Iskandar Malaysia with a CAGR of 13.12 per cent for five years.
“Logistics is the leading sector with RM8.56 billion cumulative committed investment followed by tourism at RM7.86 billion and healthcare at RM4.41 billion,” he added.
Ismail said it has been 12 years since its inception in 2006 and Iskandar Malaysia grows closer to attaining its vision of becoming a strong and sustainable metropolis of international standing.
“In achieving this vision, the rakyat must be the ultimate beneficiary economically, socially and environmentally. That is why proposals such as reducing congestion at the Causeway is key and a present priority of the government,” he added.
Ismail said social development and inclusiveness have become more important to the government, especially with the ‘Shared Prosperity 2030’ economic model, that issues such as Technical and Vocational Education and Training and financial literacy were also discussed at a recent meeting.
He attested that it requires the support and teamwork from all stakeholders — the government and the private sectors plus the community to power and build a strong and sustainable region and expressed his gratitude to Prime Minister Tun Dr Mahathir Mohamad and Johor Menteri Besar Datuk Dr Sahruddin Jamal, as well as all the parties for their continuing support.
At IRDA’s Members of Authority meeting recently, Dr Mahathir pointed out that Iskandar Malaysia continued to rake in strong foreign and domestic investments due to its geographical and economic advantages despite various global and local challenges.
Dr Mahathir, who is also the co-chairman of IRDA, strongly believed that further improvements in connectivity between the region and neighbouring Singapore plus nurturing a new promoted sector such as aerospace could further boost Iskandar Malaysia’s economic and social growth.
According to IRDA, more than 300,000 people cross the Johor-Singapore Causeway every day and by having better connectivity that reduces traffic congestion, it could help increase investments from Singapore, quality of local talents, opportunities for local SMEs, and the number of ‘higher spending’ tourists, besides enhance safety and security.
Ismail said the Iskandar Malaysia Bus Rapid Transit is another important project reflecting the region’s shared prosperity effort.
“Reaching 90 percent of the area in Iskandar Malaysia, once completed, this public transportation system will not only address the issue of connectivity but also support towards improved quality of living and managing cost of living,” he added.Source : Bernama