ISKANDAR MALAYSIA Sustainability and Innovation 10 Years and Beyond
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MALAYSIAISKANDAR 2015 MALAYSIA GLOBAL ISLAMIC FINANCESUSTAINABILITY AND INNOVATION: 10 YEARS AND BEYOND CONTENTS ISKANDAR MALAYSIA SUSTAINABILITY AND INNOVATION 10 YEARS AND BEYOND 4 ISKANDAR Malaysia 36 BUSINESS INTELLIGENCE: IN NUMBERS INVESTING IN DEVELOPMENT AND GROWTH Rhizophora Ventures is committed to modernising the creative and media sector in Iskandar Malaysia, and the wider region, via an extensive and long-term investment programme. 39 CASE STUDY: IKEA SOUTHEAST ASIA 40 FOCUS: Strategic DIRECTIONS: CDPii 6 The CDPii spells out in detail the holistic and multifaceted strategies devised for the next decade of 6 OVERVIEW: A CATALYST FOR Iskandar Malaysia’s exciting journey. STRONG AND SUSTAINABLE GROWTH Iskandar Malaysia has grown steadily and impressively since its launch. All the ingredients are in place to continue and expand this success as it maximises its strengths and reaps the benefits of meticulous planning. 36 44 PERSPECTIVE: MOHAMED KHALED NORDIN, CHIEF MINISTER OF JOHOR The momentum of growth in the state of Johor is aiding development in Iskandar Malaysia, backed by the state’s rising 11 investment in manufacturing and increasing investor confidence. 11 ROUNDTABLE: INCLUSIVE PROSPERITY AND A 46 BUSINESS INTELLIGENCE: sustainable FUTURE DRIVING Sustainable The ten-year anniversary of Iskandar PROPERTY DEVELOPMENT Malaysia provided a perfect Sunway Iskandar is pursuing opportunity for industry leaders to responsible property development and come together and exchange opinions constructing world-class infrastructure on the key issues that will shape the in Iskandar Malaysia via an innovative economic region to 2025 and beyond. sustainability framework. 61 FOCUS: INFRASTRUCTURE 74 BUSINESS INTELLIGENCE: AND CONNECTIVITY Galvanising multi-sector Publisher and Editor-in-Chief Cory D’Abreo The success of a modern world city GROWTH IN ISKANDAR is increasingly dependent on its level Property, healthcare and industry Managing Editor of connectivity and infrastructure. development form the constituent Thomas Michael Edwards Iskandar Malaysia has designated parts of Johor Corporation’s Director, Research and Analysis these areas as a priority for growth. wide-ranging growth plan for Kuhan Balasegaram Iskandar Malaysia. Editors 65 BUSINESS INTELLIGENCE: Alexis Psarras Haley Moncrief A PRIME CONDUIT FOR EAST- 77 PROMOTED sectorS: to-WEST TRADE The development of Iskandar Production and Design Editor Izabela Austin 52 Johor Port’s strategic location, high Malaysia as a global economic region levels of connectivity and excellent is built on the back of its promoted Project coordinator efficiency are strengthening Iskandar sectors: nine key industries that are Tihitina Getachew Malaysia’s position as a regional providing new job opportunities and Publishing Assistant 49 CASE STUDY: BMW GROUP transport hub. sustainable growth. Roselin Banu Photographer 50 PERSPECTIVE: ISMAIL John Poh IBRAHIM, ISKANDAR REGIONAL 78 FINANCIAL & BUSINESS Services DEVELOPMENT AUTHORITY The Iskandar Regional Development 80 Creative Authority is acting as a vital anchor for This publication is copyright protected. Copying any part of International Investor is unlawful all stakeholders in terms of planning, 82 PETROCHEMICAL AND OIL without the prior written permission of Capital promoting and facilitating growth in the & GAS economic region. Knowledge (Hong Kong) Limited. No part of this publication may be reproduced or transmitted 84 Education in any form or by any means nor held in any 52 BUSINESS INTELLIGENCE: information storage or retrieval system. REALISING THE VISION OF 86 LOGISTICS ISKANDAR malaysia 58 Disclaimer: whilst information in this document 88 TOURISM Iskandar Investment Berhad is playing has been processed from various sources a fundamental and ongoing role in believed to be reliable, no warranty or 90 HealtHCARE ensuring that Iskandar Malaysia 68 BUSINESS INTELLIGENCE: guarantees, expressed or implied, is made by becomes a world-class destination in DEVELOPING A CENTRAL 92 ELECTRICAL & ELECTRONICS Capital Knowledge Limited, Capital Knowledge which to live, work and invest. BUSINESS DISTRICT Sdn Bhd and International Investor regarding Thanks to the application of Medini 94 FOOD & AGROPROCESSING accuracy, adequacy, completeness, legality, 54 FOCUS: EQuitable WealtH Iskandar Malaysia’s master plan, the reliability or usefulness of the information in DISTRIBUTION township of Medini is set to become this document. All users of information in this Stakeholders in Iskandar Malaysia the central business district in document agree to indemnify and not to hold must continue to ensure that local Iskandar Puteri. Capital Knowledge Limited, Capital Knowledge communities benefit from the wealth Sdn Bhd and International Investor liable for any generated within the region. 70 FOCUS: AN IDEAL GBS direct, indirect, incidental, special, exemplary, or LOCATION consequential damages or losses resulting from 58 BUSINESS INTELLIGENCE: The rise of global business services is the use of the information. LEADING GROWTH IN ISKANDAR a tremendous stimulus to the growing PUTERI industry in Iskandar Puteri. The The leading Malaysian property flagship zone is positioning itself to developer, UEM Sunrise, take advantage of this trend. is gradually helping to transform +44 (0)20 7193 2965 Iskandar Puteri into a true global 73 CASE STUDY: FROST & [email protected] model of a sustainable city. Sullivan 70 sector data iskandar malaysia ISKANDAR Malaysia IN NUMBERS International Investor’s summary of the key data and quantitative dynamics in the Iskandar Malaysia regional development corridor. Please contact International Investor for more detailed information. KEY ISKANDAR MALAYSIA STATISTICS GDP (MYR in billions)(1) 65.4 Projected GDP by 2025 (MYR in billions) 120.4 GDP per capita (MYR)(1) 33,634 Projected GDP per capita by 2025 (MYR) 42,631 Cumulative committed investment (MYR in billions)(2,3) 218.84 Realised cumulative committed investment(2) 51% Share of local investors contributing to cumulative committed investment(1) 60% Share of foreign investors contributing to cumulative committed investment(1) 40% Population (in millions)(1) 1.95 Estimated population by 2025 (in millions) 3 No. of students in EduCity(1) 4,100 No. of people in employment(1) 916,700 Projected no. of jobs created by 2025 817,500 Workforce participation rate(1) 67% Share of highly skilled knowledge workers by 2025 45% Unemployment rate(1) 2.9% Total land area (square kilometres) 2,217 No. of international airports 1 No. of passengers at Senai International airport (in millions)(1) 2.58 Tonnes of cargo handled at Senai International Airport (tonnes)(1) 5,272 No. of ports 3 Targeted reduction in greenhouse gas emissions by 2025(4) 50% Targeted share of green buildings in Iskandar Malaysia by 2025 70% (1)2015 (2)2006-September 2016 (3)as share of overall investment target (4)from 2005 levels Source: Iskandar Regional Development Authority (IRDA); Malaysian Investment Development Authority (MIDA) CUMULATIVE COMMITTED INVESTMENT GROWTH, 2006-2016(1) (MYR IN BILLIONS) 230 218.84 220 210 200 190.29 190 180 170 158.13 160 150 140 131.36 130 120 106.31 110 100 84.78 90 80 69.48 70 55.56 60 50 41.76 40 25.80 30 20 11.30 10 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 09/2016 Manufacturing Others Residential Government (1) until 30 September 2016 Source: IRDA 4 INTERNATIONAL INVESTOR iskandar malaysia sector data CUMULATIVE COMMITTED INVESTMENT ESTIMATED POPULATION OF JOHOR AND ISKANDAR MALAYSIA, 2010-2025 (IN THOUSANDS) BY SECTOR, 2006-2016(1) (%) 4,500 3,901 4,000 3,743 3,554 3,500 3,348 2,942 3,000 3,000 2,344 TOTAL 2,500 INVESTMENT 1,946 2,000 1,615 MYR219 billion 1,500 1,340 1,000 500 0 2005 2010 2015 2020 2025 Johor Iskandar Malaysia Retail / Mix. Dev (27) Tourism (2) Source: IRDA Manufacturing (26) Healthcare (1) Residential Properties (20) Emerging Technologies (1) Industrial Properties (9) Education (1) Utilities (6) Finance (1) GDP GROWTH COMPARISON BETWEEN MALAYSIA, JOHOR AND ISKANDAR MALAYSIA, 2006-2014 (%) Government (6) Creative (0.5) Logistics (3) 8 (1) until 30 September 2016 Source: MIDA; IRDA 7 6 TOP 10 FOREIGN INVESTORS, 2006-2016(1) (MYR IN BILLIONS) 5 China 4 Singapore USA 3 Japan 2 Spain South Korea 1 Australia Germany 0 UAE 2006-2010 2011 2012 2013 2014 India Malaysia Johor Iskandar Malaysia Source: IRDA; UPENJ 0 5 10 15 20 25 (1) until 30 September 2016 Source: MIDA; IRDA ANNUAL AND CUMULATED INVESTMENT PROJECTION (MYR IN BILLIONS) 200 176.0 GDP GROWTH PER CAPITA, 2011-2015 (MYR) 180 157.4 160 35,000 32,745 33,634 31,807 140 30,000 27,269 24,722 120 109.5 25,000 100 20,000 78.8 80 15,000 52.3 60 45.6 47.9 10,000 24.2 35.3 40 30.8 5.7 10.6 13.6 5000 15.7 16.5 18.6 20 5.7 4.9 11.1 11.3 0 2011^ 2012* 2013# 2014# 2015 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ^ at 2000 price * at 2005 prices # at 2010 prices Cumulated investment Annual investment Source: IRDA; Johor Economic Planning Unit (UPENJ) Source: IRDA ISKANDAR MALAYSIA 5 overview iskandar malaysia ISKANDAR MALAYSIA Iskandar Malaysia has achieved notable economic, social and environmental progress since its inception. Moving towards 2025, the economic region’s prime geographic location, strong institutional backing and long-term development planning are contributing to a growing sense of optimism about its long-term prospects. A CATALYST FOR STRONG AND SUSTAINABLE GROWTH of the world’s busiest shipping routes, its proximity to the nearby international hub of Singapore and other large markets such as Indonesia, China and India, as well as its rich endowment of natural and human resources, have all underpinned southern Johor’s past successes and underscore its future potential. It is with this context in mind that, fol- lowing the proposal under the Malaysian Government’s Ninth Malaysia Plan 2006-2010 to develop five regional economic corridors to catalyse national growth, the South Johor Economic Region was earmarked as the southern development corridor.