Malaysia unveils US$105b project to turn Johor into thriving economic hub
By Channel NewsAsia's Malaysia Correspondent Melissa Goh | Posted: 04 November 2006 1840 hrs


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Prime Minister Abdullah Ahmad Badawi



Southern Johor, Malaysia: Malaysian Prime Minister Abdullah Badawi has unveiled an ambitious US$105b blueprint to turn its southern Johor state into a prosperous Asian metropolis.

The Southern Johor Economic Region (SJER) is the brainchild of Mr Abdullah and the country's single largest development project.

Spanning over 2,200 square kilometres, the mammoth SJER is set to become Malaysia's second metropolis after the capital Kuala Lumpur, on par with the Chinese cities of Hong Kong and Shenzhen.

The zone - also known as the Iskandar Development, after Johor's Sultan Mahmud Iskandar - will be two-and-a-half times the size of neighbouring Singapore when completed in 2025.

It is a joint initiative of the federal and state governments that aims to create 800,000 jobs and double the income of Johor's residents in 20 years.

Unveiling the project's blueprint at the new waterfront development of Danga Bay, PM Abdullah promised investors big returns.

He said: "We mean business. Our vision is to make South Johor the new international address for business, investment and leisure. Our vision is for SJER to showcase all that Malaysia can be."

The government plans to turn South Johor into not just a logistical hub, but also a centre for medical, educational as well as financial services.

So far, government investment arm Khazanah has signed letters of intent worth almost US$3 billion with investors, mostly from the Middle East and Asia-Pacific.

This is in addition to the US$1.2 billion already committed by the federal government under the Ninth Malaysia Plan.

The South Johor Economic Region will also include passport-free zones to attract not only tourists but also foreigners to stay and work there.

Prime Minister Abdullah believes that the relatively cheaper land prices in Johor compared to those across the Causeway in Singapore will be a major draw for investors.

To improve the quality of life in the area, over US$1 billion will be spent in the next five years on river cleaning, drainage and in particular, security.

The police chief says fighting crime will be his priority.

Musa Hassan, Malaysia's Inspector-General of Police, said: "It's a challenge. That's why I request for more manpower. I have asked the officers to be close to the public so that intelligence can be gathered."

To ensure the smooth implementation of the ambitious project, a statutory body - called the South Johor Authority - has been set up to monitor its progress. - CNA/ir