Iskandar Regional Development Authority (Irda) chief executive officer Datuk Dr Badrul Hisham Kassim, who has spent some 100 days in office, talks to StarMetro about the third and final phase (2016-2025) of the road map for expansion in the region.
Q: The global economic outlook is still not promising due to the Covid-19 pandemic. This is likely to impact growth in most countries, including Malaysia. How will this affect the RM383bil investment target by 2025?
A: The pandemic has affected investments coming into Iskandar Malaysia, like most other places in the world. At this point, we will stick with the RM383bil total cumulative recorded investment that we have set to achieve by 2025.
We will be guided by the Comprehen-sive Development Plant (CID) and Circle of Sustainability (CIS) roadmap. However, a review of the CIS is also on the cards.
Q: Why is Irda still confident of achieving the target despite the economic challenges Johor and Malaysia will face after the pandemic?
A: We are confident of achieving this target by 2025 because we have recorded up to RM354.6bil from November 2006 to December 2021.
That’s another RM30bil to be achieved in the next four years, so we feel that it is reasonable to maintain the target.
While the pandemic is ongoing, we see the economy recovering slowly.
More importantly, I think this is the time when businesses and companies are seeking opportunities to start, expand or strengthen their operations after being hit by the pandemic.
This is when Iskandar Malaysia will open up to these keen investors.
Most of the region’s investment advantages are still intact, such as its location and logistics capability.
Iskandar Malaysia is within six hours by air from most South-East Asian cities. It has three international seaports and an international airport, which are excellent for warehousing and distribution.
We also know the rakyat in the region have been affected by the loss of jobs and closure of businesses. This means there should be ready talent and manpower to support incoming investments.
Q: How do you think that Iskandar Malaysia will remain attractive as an investment destination, since other countries in the region are also attracting foreign direct investment (FDI)? Malaysia, too, has other economic corridors. Will you adopt new strategies?
A: The Covid-19 pandemic has allowed us time to reassess and re-evaluate our strategies in achieving the investment target.
Some readjustments and enhancements have been made along the way as we transition into the endemic phase.
Iskandar Malaysia’s growth is always seen holistically.
From the time of its inception, the focus has always been on building businesses and people while safeguarding the environment.
I believe this will continue to be the region’s main selling point in drawing domestic and foreign investors.
The new low-carbon framework is meant to help businesses operate in greener ways and develop the necessary talents in the sectors promoted such as education and investment.
My role is to strengthen stakeholders’ partnership in the development of the region, and this includes bringing in investments.
So far, the government and commercial partners have been very supportive in making the region a favourable place to invest and live in, through the creation of opportunities.
These range from infrastructure, seaports, airports and industrial parks to special zones, special incentives, malls, theme parks, hospitals and hotels.
I would like to see these partners continue playing their roles in developing this region.
I also see modern farming – a newly promoted sector – as a unique proposition to investors because it deals with food security and economic opportunities for the rakyat.
Q: Do you see the last phase of Iskandar Malaysia’s development as more challenging than the first (2006-2010) and second (2011-2016) phases?
A: Phase One was about planning and building the foundation while Phase Two was strengthening and generating growth.
Phase Three, which focuses on sustaining growth and innovation, will be the toughest yet, but the most rewarding.
With most of our foundation in place and as we begin to record positive growth holistically, maintaining and enhancing these achievements remain a continuous task.
Phase Three is also when you reap the fruits of your labour in the last couple of years.
It allows us to take a breather to appreciate the acknowledgement by our peers statewide and internationally, as well as ensure that these successes are enjoyed by the most important stakeholders – businesses and the people of Iskandar Malaysia.
Perhaps one difference is that in the earlier two phases, we dealt more with foundational projects such as highways and theme parks that would take more time to deliver benefits.
Now in the third phase, we will deliver more instantaneous impact projects, such as grants and talent development.
In addition, innovative projects such as the Iskandar Malaysia Urban Observatory (IMUO), centralised sewerage treatment plant (CSTP) as well as Sungai Segget landscaping and upgrading of Jalan Wong Ah Fook are being carried out in the third phase.
We expect these projects to bring multiple benefits to the people, city, state and country.
Q: Do you foresee domestic investor confidence playing a crucial role in the development of Iskandar Malaysia in years to come? What is the difference in contributions between domestic and foreign investors?
A: At the end of December 2021, the domestic-to-foreign investment ratio was 60:40, with the total cumulative recorded investment at RM354.6bil.
The promoted sectors were mixed development, manufacturing, residential, government, industrial, logistics, utilities, tourism, healthcare, education, finance, emerging technologies and creative.
For the period under review (2006-December 2021), the countries with the highest investments were China, Singapore, the United States, Japan, the Netherlands, South Korea, Spain, India, Australia and the United Kingdom (see charts for breakdown).
Q: What is your take on the state government’s vision for a Greater Johor Baru, similar to Greater London? What are the plans that Irda and the three city councils, namely Johor Baru, Iskandar Puteri and Pasir Gudang, could do together to achieve this plan?
A: Irda will continue to play its role in planning, facilitating and promoting the region’s development by working with stakeholders.
In our planning, we have produced several frameworks and blueprints.
Some of these have been cascaded and localised to the needs of the local authorities and commercial partners such as the Low-Carbon Society Blueprint for Iskandar Malaysia, Smart City Iskandar Malaysia Framework and IMUO Framework.
We have also received support from the Federal Government to speed up certain developments, including the Iskandar Rapid Transit.
Most of the programmes and projects we have planned were delivered through collaboration with local authorities.
These include the Iskandar Malaysia Ecolife Challenge, Smart Health City, bicycle lanes and Tengku Mahkota Ismail Youth Centre.
Q: How important is Singapore to Iskandar Malaysia? Do you see the Johor Economic, Tourism and Cultural Office (Jetco) set up by the state government in Singapore further enhancing economic cooperation between Johor and Singapore? How can Irda benefit from Jetco and attract more investors from the island republic?
A: Johor and Singapore are complementing each other in many ways that will benefit those doing business in this region.
Add to that the reopening of the Malaysia-Singapore border on April 1.
Putrajaya approved the Jetco office in Singapore last October, paving the way for direct investments from Singapore as well as promoting our tourism and cultural activities there.
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