UOB Economic-Treasury Research Company Reg No. 193500026Z Jimmy Koh
[email protected] Lena Tan
[email protected] Tuesday, 17 June 2014 Flash Notes Iskandar Malaysia: Treading The Extensive Journey Investments have been steadily streaming into Iskandar with total cumulative investments reaching MYR131.6bn by end-2013, a strong increase of 24% from the previous year. The JB-Singapore RTS link will serve the needs of increasing demand from individuals traveling between the two countries for work, especially with the continued growth of Iskandar Malaysia. Indeed, this will help to ease up the traffic along the causeway and potentially reduce traveling time. New supply is huge, representing more than 20% of existing residential stocks in Iskandar. We believe these residential units will be completed before the occupancy rate in Iskandar reaches its potential. We expect more Singaporeans, especially the lower-to-middle income group, seeking medical help in Malaysia as medical costs in Singapore continue trending higher. We believe the region will continue to grow as more catalytic projects are being unveiled gradually. Time is of the essence for Iskandar to bear fruits while the successful collaboration between the two countries is also critical. Background It has been more than seven years since Iskandar Malaysia (IM) was incepted in November 2006. A myriad of developments have since sprung across the 2,217 sq km land. A Comprehensive Development Plan (CDP) was developed to steer the overall development framework with special