EXCLUSIVE REPORT

ISKANDAR A CITY OF FAST MOVING DEVELOPMENT

Iskandar Malaysia is the main southern development corridor in . With a target achievement of 2025, plans to become an internationally competitive and resilient region.

Positioned as South East Asia’s premier specialty terminal, Flagship D is home to Port and – boosting trades with the likes of and other countries.

In this issue, Property Hunter highlights the prominence of flagship zones A & D in Johor.

Aerial view of Sultan Iskandar CIQ, photo courtesy of IRDA

www.PropertyHunter.com.my 1 EXCLUSIVE REPORT

ISKANDAR MALAYSIA THE MAIN SOUTHERN DEVELOPMENT CORRIDOR IN JOHOR Iskandar Malaysia is set to become Southern ’s most developed region where living, entertainment, environment and business impeccably converge within a bustling metropolis. View of , photo courtesy of Iskandar Waterfront Holdings

FLAGSHIP A: JOHOR Flagship A covers 18,433 acres, , originally called Tanjung to the present Johor Bahru railway with its vicinity, makes it one of the 2018) and Iskandar Malaysia. Another CENTRAL BUSINESS confined by highway Puteri was founded in 1855 by station has strengthened its function fastest growing cities of Malaysia. Light Rapid Transit hub (serving fast up north, Sungai to the east, Temenggong Daeng Ibrahim. The city as the southern gateway of Malaysia, and light mass transport) is also DISTRICT (CBD) Sungai to the west and the centre is now the primary area for making it the largest custom and In 2015, an influx of approximately scheduled to be built at . Other than Johor commercial and trading activities. Its immigration centre in the country. twenty million visitors were anticipated Interchange to serve as the transport Johor Bahru City Centre is Flagship Bahru city centre, the key areas in role as an administrative centre is to visit Iskandar. It is also anticipated hub for Southern Johor and Iskandar Zone A, a development of a new Flagship A are the industrial area of shared with , the new Johor Bahru City, also known as JB, is a that there will be further development Malaysia. financial district, the central business Tampoi, and the mixed residential and state administrative centre for the quarter size of neighboring Singapore of a rapid transit hub at the doorsteps district, the waterfront city of Danga commercial areas of Pelangi, Larkin, state of Johor. The completion of and has about a million residents. of the CIQ to be a connection point Bay, a mixed development in Tebrau Majidee, Tebrau and Danga Bay. Sultan Iskandar Customs, Immigration There are about another two million between the Singapore Mass Rapid and the Malaysia/Singapore and Quarantine Complex in 2008 next staying in its outskirts and together Transit (scheduled to be operational by Causeway.

2 www.PropertyHunter.com.my www.PropertyHunter.com.my 3 EXCLUSIVE REPORT

KEY LANDMARKS in addition to supporting the water international and local products all Airport and Singapore Airport, which are For Flagship A: cargo imports and exports via pipeline system into Singapore. On a compete for attention. also major entry points into Malaysia Rapid Transit System (RTS) is the Airport. Danga Bay typical day, it carries approximately and Singapore, respectively. hero. Forget High Speed Rail (HSR). Danga Bay or Teluk Danga is the largest 60,000 vehicles. , Bukit RTS is expected to operate in 2019, There are speculations on a recreational park in the city of Johor Timbalan The CIQ, which was unveiled to the meanwhile citizens will see the development of an internal bridge from Bahru. Many interesting events are held Constructed in the 1940s, the Sultan public in 2008, is a very large complex completion of HSR in 2026, some 10 somewhere within close proximity of there especially during festive seasons. Istana Bukit Serene in Johor is the Ibrahim Building dominates the Johor at the causeway to Singapore that years from now. The RTS will see Bukit Tanjung Langsat to the West-East sea Danga Bay is also sometimes referred to palace of the Sultanate of Johor. The Bahru skyline. The Japanese army used accommodates Malaysian customs Chagar as the terminating station, across, to link and , as the “Vision City of the South”. Danga palace is located on high ground and it during World War II in their final checks for cars, trucks, buses and the which links Johor Bahru and Singapore. ensuring better and easier accessibility. Bay Phase 1 makes up 240 acres of an has a 35-metre high tower. The Istana assault on Singapore. The Saracenic JB Sentral train station. CEO of Ho integrated Waterfront Development Bukit Serene was built in 1938 and is the character and mosaic detail make this Chin Soon, Ishmael Ho, said “since For Flagship D: comprising financial, commercial, of the . one of the most interesting buildings in time immemorial, human beings were Many forgotten that several months residential, lifestyle, leisure and family- Johor Bahru. inclined towards places of livelihood. ago in a Star Interview, the Sultan Sources: City Centre oriented tourism development. In today’s milieu, people gravitate to himself, Sultan Ibrahim Ismail, hinted of Given city status in 1994, Johor Bahru Customs, Immigration and economic activity areas”. a 3rd bridge, connecting a district from 1. https://iskandardevelopment. wordpress.com/2013/07/09/ The Causeway is a fast growing city. Latest census Quarantine Complex (CIQ) Laut Johor towards Changi flagship-a-iskandar-malaysia/, The Johor-Singapore Causeway is a figures indicate that it is fast becoming Located at Bukit Cagar, the Customs, As Iskandar Malaysia’s economy is Airport. Having a 3rd bridge will pose a 2. http://www.iskandarproject.com/ 1,056 metre causeway that links the Malaysia’s second largest city, with a Immigration and Quarantine Complex tied closely with Singapore, proximity great deal of advantages for example: flagshipa.html, city of Johor Bahru in Malaysia across population of over 1 million. Shopping (CIQ), occupies an area of 232,237 is important. Distance and travelling the Straits of Johor to the town of opportunities flourish in Johor Bahru. square metres. It is the largest of its kind period play an important role in terms 1. Better land connectivity 3. https://iskandardevelopment. Woodlands in Singapore. It serves Modern malls, arcades, handicraft in Malaysia. Comparisons have been of proximity. wordpress.com/2013/07/09/ flagship-a-iskandar-malaysia/ as a road, rail and pedestrian link, centres, bazaars and markets offering made to International 2. Benefit industrialists for their air

4 www.PropertyHunter.com.my www.PropertyHunter.com.my 5 EXCLUSIVE REPORT

FLAGSHIP D: EASTERN linkages and a complete ecosystem warehousing. Johor Port is a subsidiary The 1,000-acre port, operated by Other Key Developments for This is the core of Johor Bahru and is GATE DEVELOPMENT with high value added and employment of MMC Corporation Berhad. Sdn. Bhd. (TLP), Flagship A a prime location for Residential and contribution to the region. Not all a wholly owned subsidiary of JCorp, is Commercial properties. Furthermore JB’s Flagship D covers Pasir Gudang Port, core sectors are strong and vibrant, The port itself was established in 1977 a dedicated and steadfast port with Ibrahim International Business first Grade A office building at Komtar Pasir Gudang Industrial Park, Tanjung thus further actions are needed to under a government authority and all the ability to meet the demand for District (IIBD): JBCC will be available soon. Langsat Port and Tanjung Langsat strengthen them. operations were fully privatized in 1995 , petrochemical, edible oil Regeneration project for the Johor Industrial Complex. under JPB. Being a part of the MMC and bulk dry cargo handling facilities. Bahru CBD. Including the Sungai Flagship D however sees Mah Sing’s EMERGING SECTORS group of companies, the company Endowed with a 4.5-kilometre shoreline Senget Transformation project, and the Meridin East and EcoWorld’s Eco Tropic This township is set to be a high managed to prove itself as a capable ideal for O&G and marine-related development of Coronation Square, developments popular with the market. growth region driven by the services Finance, Insurance, operator and a profitable venture. The industries, the port’s development a RM3 billion GDV mixed residential, These project have products in a more Real Estate & Business reasons behind its success are: affordable spectrum and is seeing a sectors and with continuous support Services (FIREBS) is divided into four zones – storage commercial and medical suite from selected manufacturing sectors terminals, oilfield services & equipment development. good response. Located between the • Customer Focus. JPB uses every especially the existing key economic Creative (OFSE), regional marine supply base and business district of Flagship A and the drivers, namely electrical and electronics new requirement as a catalyst for offshore fabrication maritime hub. High Speed Rail and Rapid Transport RAPID development over in Pengerang, (E&E), oleochemical, petrochemical and the further development of its System: Flagship D is in a strategic position food processing. Flagship D has the Health Services infrastructure. Every new customer Property Outlook Both are vital infrastructure upgrades Sources: largest concentration of palm oil refining entering the port becomes part of a As quoted on the Iskandar Malaysia aimed at improving travel between industries and downstream activities in valued community working towards website, “Iskandar Malaysia houses are Singapore, Iskandar Malaysia and 1. http://iskandarmalaysia.com.my/ Education Services the world. their shared development. generally built with the greening nature Kuala Lumpur. These projects when promoted-sectors/, in mind because we know, you just completed will be greatly beneficial to 2. http://www. • Diversity of Services. JPB provides With state-of-the-art-facilities to revel love nature. We make the best of living the region and property located in the worldwidepropertyinvestment.com/ in, Iskandar Malaysia is a destination Contrariwise, Emerging Sectors are facilities for the handling of many environment to flaunt our beautiful sunny vicinity to station locations can expect to flagship-d.html types of cargo and provides be hotly contested. filled with infrastructure and one-stop newly induced. Their horizontal and and breezy tropical climate.” 3. Executive Director of Knight Frank business centres to ensure business vertical linkages with other industries services across more than one Malaysia (Johor) – Ricky Lee transactions are fast, seamless and have great potential to be developed to mode of cargo. For example, Ricky Lee, Executive Director of Knight Flagship A also sees Bukit Chagar, Bukit 4. http://iskandarmalaysia.com.my/ raw materials can be received in Frank Malaysia (Johor Head) shares Senyum and along the Tebrau Highway convenient. drive economic growth. housing/ liquid bulk form, processed in the some information about the property as one of the main hotspots as these are To achieve this target, the nine With a target achievement of 2025, Free Zone or the surrounding outlook in Johor (see table below). likely locations for HSR and RTS Stations. 5. http://www.jcorp.com.my/tanjung- langsat-port-sdn-bhd-105.aspx promoted sectors are categorized into Iskandar Malaysia plans to become industrial area, and then exported two groups namely the core sectors and an internationally competitive and via containers. Thus, there is an PROPERTY OUTLOOK IN JOHOR the emerging sectors. resilient region. They believe that the enormous potential for savings in core promoted economic sectors shall terms of cost and time to be gained FLAGSHIP A No of Floor Area Price, from Development be geared towards higher value added due to the options available for Name Location Developer CORE SECTORS Units (sq ft) (RM/sq ft) Status activities and deeper cluster linkages. cargo handling. Pinnacle Tower Jalan Dato Abdullah Tahir, Mahabuilders Berhad 273 1,115 – 1,427 800-950 Ongoing Electrical & Electronics On the other hand, the growth of Johor Bahru Tanjung Langsat Port emerging sectors shall be supported by Twin Galaxy Luxury Jalan Dato Abdullah Tahir, Golden Oriental Realty 668 560 – 3,100 800 Completed a complete ecosystem. Tanjung Langsat Port (TLP) is the third Residences Johor Bahru Sdn Bhd Petro Chemical and port in Johor, designed to complement Sky Suites Jalan Bukit Meldrum, Johor Bahru Mahabuilders Berhad 250 581 – 2,281 800 - 900 Completed Oil & Gas Transformation of Johor Port the and Johor The Wave @ Marina Sited along the IOI Properties 1,465 526 – 1,344 800 Ongoing and Tanjung Langsat Port Port in Pasir Gudang. Placing itself Cove Basin Food & Agroprocessing as ’s premier forte, it Tower B Southkey Southkey, Johor Bahru Selia Pantai and IGB 584 676 – 1,509 900 – 1,000 Ongoing Mosaic Serviced Corporation Bhd Johor Port handles bulk cargo such as liquefied Residences Johor Port Bhd (JPB) services include petroleum gas (LPG) and dangerous Logistics Paragon Residences Jalan Tenku Petri 1, Straits View, ACG Group and Joland 533 735 – 10,725 1,000-1,200 Completed cargo handling for a diverse range chemicals. Established in 1995 and Johor Bahru Group of cargo, namely, dry cargo, general begun partial operations in 2003, TLP Tourism cargo, liquid bulk and containers. They is situated 22km from the international FLAGSHIP D also include the endowment of marine shipping lane, 5km from Johor Port and No of Floor Area Price, from Development Name Location Developer services such as towage, piloting, ship- 30km from Johor Bahru. It has more Units (sq ft) (RM/sq ft) Status Core Sectors are sectors that have been to-ship transfer, bunkering and supply than 750 acres of land within the port Green Haven Kota Puteri Welton Development 1,134 698 – 1,598 503,000 Ongoing long established in Iskandar Malaysia. of fresh water. Port facility management area and a 4.5km shoreline fronting the Taman Rinting Masai I & P Group Sdn Bhd 71 2,235 – 2,384 541,000 Ongoing They are stable economic drivers, includes the running of the Johor Port Straits of Johor. Pine Signature Pasir Gudang Scientex Berhad 182 1,725 – 1,908 330,000 Ongoing with strong horizontal and vertical Free Zone, property management and The Caspian @ Masai Venice View 1,269 980 – 1,366 432,000 Ongoing Meridin Bayvue Development Sdn Bhd

6 www.PropertyHunter.com.my www.PropertyHunter.com.my 7 PROPERTY SHOWCASE

8 www.PropertyHunter.com.my www.PropertyHunter.com.my 9 EXCLUSIVE REPORT

Johor Bahru Causeway, photo courtesy of IRDA Perception & Reality of Iskandar Malaysia We have all heard about the possible best and worst of this much spoken about economic development region and still most of us do not see the long term picture. I’ve recently read an article published in a Singaporean paper recommending to avoid as much as possible Malaysian and especially Iskandar Malaysian properties as investment product. Surprisingly, the article mentioned a few unsuccessful stories and none of the real successful ones.

I keep repeating in my columns and presentations that smart investors shouldn’t look at properties as something that stands on its own! Mahkamah Tinggi Johor Bahru, photo courtesy of Khalil Adis Propenomy of Iskandar Malaysia Property is the guaranteed result of a properly planned economic growth which

Is Iskandar Really in includes: 1. Master-planning of a well-diversified, in terms of industries – manufacturing – services, medium or long term growth.

“ 2. Planning and execution of major infrastructures such as roads, highways, public transportation, commercial harbours, public healthcare, public education. TroubleBy Dr. Daniele Gambero? 3. Incentive packages designed to attract FDI for a well-diversified and wide list of countries. “

Fact file about Iskandar Malaysia 4. Wealth growth and distribution as without an adequate purchasing power given Iskandar Malaysia is an economic development corridor booming in Southern Johor, to the rakyat, there will hardly be a good economic growth which is boosted Malaysia. The development region encompasses an area of 2,217 square kilometres This article is the first of mostly by domestic consumption (Malaysia stands at 60% domestic consumption which is three times the size of Singapore and two times the size of Hong Kong. a three-part series by Dr. contribution to its annual GDP grow). Iskandar Malaysia is envisaged to capitalize on its current synergies with Singapore as Daniele Gambero. In the We have all heard next issue, Dr. Gambero will it aims to complement each other as an economic hub. Meticulously planned under The Singaporean article only mentioned the MM2H about the possible explain about the economic the Iskandar Malaysia Comprehensive Development Plan (CDP), the economic region program, which, since its inception, was mostly development and identify comprises of five flagship zones. best and worst of designed to attract foreigners to reside in Malaysia at the different triggers that this much spoken the end of their working lives. Most people would call Encompassing a vast acreage of land, it is the largest single development project constitute Iskandar Malaysia about economic this retirement. If we are looking at economic growth, ever to be undertaken in the region. Because of its strategic location, accessibility There are 5 flagship as still one of the best places development region I would rather look into the statistics of TalentCorp or to leading Asian cities, proximity to some of the world’s most rapidly growing and to invest in. areas; each of them at the number of professional working visas released important economies, Iskandar Malaysia is poised to attract an exciting influx of and still most of us has been designed by the Immigration Department in the last 5/6 years foreign and high-level corporate investments as discerning investors looking to do not see the long REI Group of Companies CEO with different and, out of the total, how many are currently based in benefit from growth in Asean and Asia. term picture. and Co-Founder, Dr. Daniele Johor/Iskandar Malaysia. economic growth Gambero gives presentations Located in Johor, the southern gateway to Peninsular Malaysia, its advantages include: drivers on the Property Market Another surprise came for the fact that the author and welcomes feedback at of the article has made a mere, superficial and “visual” evaluation of how the • Six to eight hours’ flight radius from Asia’s burgeoning growth centres such [email protected] “ development of Nusajaya, now , is proceeding without looking into as Bangalore, Dubai, Hong Kong, Seoul, Shanghai, Taipei and Tokyo. actual facts and numbers. Iskandar Puteri is only a very small component of the Sources: Napic Property master-plan for Iskandar Malaysia. There are 5 flagship areas; each of them has been • Within reach of a global market of some 800 million people. Market Report, CIMB, designed with different economic growth drivers and from all the recent assessments Pemandu, Sime Darby/ done, most of the committed and non-property related investments have kicked- off or • Accessible by air, land, rail and sea. University Malaya Affordable have been completed. Housing Publication, • Flanked by three major ports, the Pasir Gudang Port, Port of Tanjung department of Statistics Pelepas and Tanjung Langsat Port. Sultan Iskandar CIQ Complex, Now, I always say in my presentations, look at numbers and facts not perceptions: to Malaysia and REI Group photo courtesy of Khalil Adis do so, let’s see together where Iskandar Malaysia is today and possibly in the next 4 to Research archives 5 years…

10 www.PropertyHunter.com.my www.PropertyHunter.com.my 11 This Special Feature is brought to you by

Log-on to www.PropertyHunter.com.my/special-features for more exclusive reports and news on property

12 www.PropertyHunter.com.my