IRDA: Iskandar Malaysia Updates
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ISKANDAR MALAYSIA UPDATES Iskandar Regional Development Authority (IRDA) Engku Ahmad Kamel Director, Economic Prosperity 24 August 2020 GOVERNMENT OF MALAYSIA Introduction Iskandar Malaysia - The Potential & Opportunity GOVERNMENT OF MALAYSIA • Iskandar Malaysia is located at the southernmost tip of the Asian continent. • Located near international centres and major cities such as Singapore, Jakarta, Shanghai and New Delhi with a combined population of 4.64 billion (Asian) • Iskandar Malaysia’s population is 2.23 million (2019). Dynamic, young and multilingual. • Excellent connectivity by road, rail and easy access to two international airports of Senai and Changi, and the three seaports in Iskandar Malaysia and two in Singapore. Centre of East and West Bound Trade Shipping Lane 3 Developing A Sustainable Iskandar Malaysia GOVERNMENT OF MALAYSIA Supply Side Demand Side Planning and Regulatory Commercial Development The Business Plan The Prime Movers Comprehensive Development Plan Nine Focus Sectors The Principal Coordinator – IRDA Catalysts & Drivers ✓ Plan ✓ Promote ✓ Facilitate IRDA ACT 664 ENABLERS Government funding on important infrastructure (roads, access etc) Government support to improve ease doing business (regulatory processes) 4 Comprehensive Development Plan GOVERNMENT OF MALAYSIA (CDP : 2006 - 2025) The CDP formulates the overall Under Planning development framework, vision and key directions in order to strengthen • Review of Iskandar the physical, economic and social Malaysia’s boundary. development of • Drive economic growth Iskandar Malaysia beyond Iskandar Malaysia. • Recalibrate future investment post Covid 19. 5 Big Moves Bold, tangible and result-oriented plans that are intended to drive new agendas and transformation Circle of Sustainability Adoption of a holistic and resilient ecosystem 5 Invest and grow your business in Iskandar Malaysia GOVERNMENT OF MALAYSIA M A L AY S I A New 667.3 mil. J o h o r Developments ASEAN inhabitants [June 2020] ▪ Pengerang Integrated Petroleum Complex ▪ Desaru Coast Kota Tinggi 2 E ▪ BioDesaru – Johor Food 2,217km - area District Valley ▪ Agro & Historical Tourism Pontian 2.23mil. - population District D [2019] A E Senai - Skudai B ▪ Electrical & Electronics ▪ Transportation, SINGAPORE Distribution & Logistics ▪ Education Pengerang C ▪ Creative Johor Bahru Western Gate Eastern Gate Iskandar Puteri A City Centre B C Development. D Development ▪ Tourism ▪ Tourism ▪ Transportation ▪ Electrical & Electronics ▪ Financial & Business ▪ Healthcare ▪ Distribution & Logistics ▪ Transportation, Services ▪ Education ▪ Petrochemical, Oil & Distribution & Logistics ▪ Education ▪ Creative Gas ▪ Petrochemical, Oil & Gas ▪ Healthcare ▪ Financial & Business ▪ Food & Agro-processing ▪ Creative Services 6 Performance, Progress And Outcome GOVERNMENT OF MALAYSIA Where are We Now? Next 5 Years 2025 Target Supporting Resilient Economy Entrepreneurship (SMEs) RM316 bil @ RM383 bil Dec 2019 Promoted Sectors TERAJU TEKUN Investments TERAS CDPii Roll-out Biotechnology Halal & Alignment Digital and Smart Green Increasing 6.5% Economy Growth Connectivity & Accessibility GDP growth Sedenak 7-8% GDP Iskandar Data Managed Parks Growth Rate 2011 - 2018 Hub Bus Rapid 5 Big Moves & Wealth Generation Wealth Ports & Medini Smart Transit Airports Programs City RTS & ETS ASEAN 798,848 Jobs Human Capital / Talent Community creation @ Dec 2019 Development Programs Cohesion Programs 1.31 mil Employment IM Employment Grant Village Enhancement Wealth Sharing Avg. household income Program & Inclusiveness 2012 : RM4,463 TVET Avg household income 2016 : RM7,959* Kawan Iskandar Inclusiveness Affordable Housing Youth Malaysia Wealth Sharing & Wealth RM10,000 Iskandar Malaysia Socio Development Economic Survey 2012 LCS Blueprint Balancing Conservation & Smart City 12.9%% GHG Action Plans Development Initiatives emissions 50% Reduction Water Mgmt Futuristic Iskandar reduction in 2017 Malaysia Advisory Council IM3 in GHG emissions (vs 2010) i Resource Resource RAMSAR Renewable Energy 7 Optimisation & Energy Efficiency GOVERNMENT OF MALAYSIA Promoted sectors and investment performance Promoted Economic Sectors GOVERNMENT OF MALAYSIA 9 ECONOMIC SECTORS SERVICES Financial Logistics Education Tourism Creative Healthcare MANUFACTURING Property is not a promoted Halal Economy Halal sector in IM Electrical & Petrochem & Food & Agro Electronics Oil & Gas Processing EMERGING TECHNOLOGY Green Technology Biotechnology Shift Towards Service-based Economy To Help Propel Malaysia Towards Becoming A High-income Developed Nation Opportunities & Intervention Required GOVERNMENT OF MALAYSIA Major Impacted Sectors during Pandemic in Iskandar Malaysia − Tourism (Hotels, Theme Parks) Covid Healthcare (Medical tourists) (Immediate) − Education (Students, Teachers) Requires Increased − Creative (Cast, crews, SMEs) Mobility of − Business Services (FKW) Visitors, Investors & − Logistics (Workers & Cargoes Knowledge Workers Malaysia/Singapore) (from safe countries) − Malaysians working in Singapore 19 continuum 19 - Opportunities (Covid-Push) • Enhanced (customised) incentives1 The COVID The 2 • Malaysia-Other Key Countries travel ¹ e.g. Corporate tax breaks for bubble hotels/Theme parks, Airline Covid Push • Need for Speed: Decentralize investment incentives, FIMI, Retuning (6-24 mths) approval process to Regional Agencies skilled Malaysians from Singapore, Relocation of • MRO @ Senai (e.g. Relocating from Industries from China, etc Singapore) ² e.g. Singapore, China, Japan & Korea Investment Update 2019 GOVERNMENT OF MALAYSIA Industrial Utilities 4% 6% Government 6% Residential 17% Emerging RM316.09b Tech 1% Total Cumulative Investment 2006 to 2019 Manufacturing 24% Mixed Development 32% RM30.75b 59% Committed Investment Total Cumulative RI/CI Jan-Dec 2019 62% Logistics 4% Domestic Investment Creative 0.5% Tourism 3% Healthcare 1% Finance 1% Education 1% 316.09 10.70% CAGR Promoted Sector RM’Bil Other Sector RM’Bil 285.34 Manufacturing 75.10 Mixed Development 101.53 or 5yrs f 253.10 Realised 222.44 Logistics 11.06 Residential Properties 54.14 Investment 190.29 Tourism 8.59 Industrial Properties 19.84 Committed Healthcare 4.41 Government 17.53 186.78 Investment 162.55 Finance 3.45 Utilities 12.97 140.52 119.50 98.47 Education 3.29 Emerging Technologies 2.74 Creative 1.45 Source: MIDA Q2’2019 & Audited Corporate Announcements 34% 107.34 66% 208.74 2015 2016 2017 2018 2019 *All in Ringgit Malaysia (RM) 11 Foreign Investments in Iskandar Malaysia GOVERNMENT OF MALAYSIA Manufacturing, Services, Properties & Others (2006- Dec’19) China 41.67 EU 6% 13% 21.25 ASEAN 8.21 7% ASEAN 23.18b Malaysia Singapore 21.25bil Others 62% 5.66 12% Indonesia 1.86 bil Myanmar 22.39mil 4.91 % Manufacturing 47 Thailand 14.27mil Philipines 3.65 mil RM’ Billion 4.27 53% Services & Others 4.16 4.06 Manufacturing 56.68bil 3.87 Properties 49.39bil 3.65 Tourism 2.44bil EU 19.39b Logistics 2.17bil Netherlands 4.90b Education 2.11bil Spain 4.16b Finance & Biz Services 2.04bil United Kingdom 3.65b RM120.64b Healthcare 1.99bil Germany 2.41b Foreign Investments (2006-2019) Sweden 1.65b Creative 837.52mil France 1.01b Others 3.00mil Others 1.60b Source: MIDA Q2’2019 & Audited Corporate Announcements *All in Ringgit Malaysia (RM) 12 Investment from all over the globe GOVERNMENT OF MALAYSIA ▪ Palsgaard ▪ Orgkhim ▪ D&Y Textiles ▪ BASF ▪ Biocon ▪ Phoenix Hotel CG ▪ EEW ▪ Aegis ▪ Greenland ▪ Daichi-Seiko ▪ BMW ▪ Sumitomo ▪ Hirata ▪ Dyson ▪ Synthomer ▪ Celestica ▪ CIBA Vision ▪ Akzo Nobel ▪ KPMG ▪ Hershey ▪ Columbia Asia ▪ Acerinox ▪ Kiswire ▪ Frost & Sullivan ▪ Lotte Chemical ▪ Seagate ▪ Evyap ▪ Musim Mastika ▪ Super Food ▪ Sinarmas ▪ Econ Medicare ▪ Raffles AS ▪ AccoBiotech ▪ SRX Global ▪ Walker Group 13 GOVERNMENT OF MALAYSIA Creating a sustainable environment Enablers - Hard and soft infrastructures GOVERNMENT OF MALAYSIA Hard Infrastructure Soft Infrastructure Safety & Security High Speed Rail Electric Train Service River Cleaning Human Capital & R&D (HSR) (ETS) 2023(f) Sg Segget Road Connectivity Affordable Housing Bus Rapid Transit (BRT) Safety & Security 2022(f) PRISMA 15 Improving the Connectivity & Mobility GOVERNMENT OF MALAYSIA Double Tracking Gemas - JB Senai International Airport Proposed RTS route Kempas West Coast expressway Transport Hub CIQ JB Sentral Rapid Transit High Speed System Rail (HSR) (RTS) Terminal CIQ 2nd Link IMBRT will be the backbone of public PRIME MINISTER’S DEPARTMENT transportation in Iskandar Malaysia 44 Direct Lines and 55 Feeder Lines connected to 3 Trunk Lines with 3 Hubs and 38 Stations IMBRT Fleet BRT Operation and Management System 17 The IMBRT Structure sets out the rules governing the Network PRIME MINISTER’S DEPARTMENT IMBRT Structure encompasses the institutional framework, business model and procurement strategy with all 3 elements interdependent on each other. Institutional Framework Legend Supervising/regulatory bodies Funding agency APAD Project entities Tender packages IRDA These are illustrative only Business Model BRTIM (SPV / InfraCo) Technical, SystemsCo VehicleCo OpCo financial and legal inputs required Civil Infra work packages Systems Vehicles Bus Service (i.e. busways, hubs & Procurement stations) Strategy 18 GOVERNMENT OF MALAYSIA Iskandar Malaysia moving forward GOVERNMENT OF MALAYSIA Year 2025 Targets The next 5 years RM 383 bil RM 10,000 Investments Avg. household income Where are we now? 1.31 mil Employment RM 316.09 bil RM 7,959 58% Reduction in @ 2019 Avg. household GHG emission income intensity 0.8 mil 16.5% GHG emission Jobs creation intensity reduction (2019) ! 20 GOVERNMENT OF MALAYSIA Thank you.