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The Case for Iskandar Malaysia Malaysia’S Corridor Development Strategy

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The Case for Iskandar Malaysia Malaysia’S Corridor Development Strategy The Case for Iskandar Malaysia Malaysia’s Corridor Development Strategy ADB-CIMT Economic Corridor Development Training 30 Aug 2015 Presentation Outline • Laying a strong foundation • Planning towards sustainability • Gaining international standing • Realising the vision • Conclusion Presentation Outline • Laying a strong foundation • Planning towards sustainability • Gaining international standing • Realising the vision • Conclusion From Iskandar Puteri… Temenggong Ibrahim founded the Iskandar Puteri at Tanjong Puteri in 1855. As such, it can be said that the modern Johor Sultanate was established by Temenggong Ibrahim and further consolidated by Sultan Abu Bakar Old photos of Johor Bahru, then known as Iskandar Puteri, the transportation hub for Agriculture Produce and commercial activities since 1855 …To Iskandar Malaysia Iskandar Malaysia – started with a dream in 2005 Presentation Outline • Laying a strong foundation • Planning towards sustainability • Gaining international standing • Realising the vision • Conclusion 5 Economic Corridors JOHOR 19,210 sq km (4,744,670 acres) SINGAPORE Senai Airport Central Business District – Johor Bahru: Port of Johor Port Tanjung ISKANDAR MALAYSIA Langsat • 2,217 km2 or 550,000 acres • Strategically located at the cross roads of East- Port of Tanjung Pelepas Changi Airport • 3 times the size of West trade lanes Jurong Port Singapore Central Business District • Within minutes to Singapore • 1.74 million population Singapore (2012) The Business Model Supply Side – Planning and Regulatory Demand Side – Commercial Development The Business Plan – Comprehensive Development Plan Master Developer Nine Focus Sectors + The Authority – Catalyst Initiatives Iskandar Region Development Authority Plan Promote IRDA ACT Facilitate 667 ENABLERS: Government funding on important infrastructure (roads, access etc), Government support to improve ease doing business (regulatory processes) IRDA GOVERNANCE STRUCTURE OF Blueprin Sector Incenti ISKANDAR REGIONAL DEVELOPMENT ts Development ves AUTHORITY Set out the Roadmap for Develop parameters the key incentive PLANNING for a economic s sustainable sectors specific development for sectors Investment 9 Promoted Destination Sectors Brand Guardian of Promote private Iskandar Malaysia as and public Investment investments in PROMOTION Destination Iskandar Malaysia Iskandar Service Investment Center Monitoring Advisory and Monitor & Align Assistance on sector development, completion of enabler development FACILITATION documents and and investment expedite processes & development approvals Our Vision “To be A Strong and Sustainable Metropolis of International Standing” 2025 Annual rate of Indicator 2006 (CDP) change (%) Population (mil) 1.4 3.0 4.63% GDP per capita 14,790 31,100* 5.78% (PPP) in USD Labour Force 0.62 1.46 7.00% (mil) Employment 0.61 1.43 7.00% (mil) *Annual growth of minimum of 8% y-o-y (at constant 2005 price) Projected Growth 2006 to 2025 Source : Iskandar Malaysia Comprehensive Development Plan Iskandar Malaysia targets Populationto grow in Iskandar Johor’sMalaysia in GDP by 4.5 times2012 : 1.7 mil and create up to 817,500Source : Statistics employment Department of Johor opportunities Comprehensive Development Plans CDP CDPii 2006 - 2025 2014 - 2025 The Vision The Vision A STRONG, SUSTAINABLE METROPOLIS OF A STRONG, SUSTAINABLE METROPOLIS OF INTERNATIONAL STANDING INTERNATIONAL STANDING Physical Economic Social IM Holistic Eco-System Wealth Sharing Development Development Development Wealth Resource Creation & Inclusiveness Optimisation Promoted Community Well- Optimum use of Economic Clusters being & Equity land and resources The 9 Economic Pillars (Promoted Economic Clusters) STRATEGIC KEY INITIATIVES THRUSTS DIRECTIONS Logistic Creative Tourism Financial Financial Education Electronics Processing Electrical & Electrical Healthcare & Oil Oil & & Gas Food & Agro Food& Petro Chemical Chemical Petro Transformative Interventions 5 BIG MOVES Inclusive Greening Destination Port of IM ENABLERS IM IM IM IM Urban Observatory Social Equity Greening Tourism & Livable Logistics and Collaboration & Communities and Quality Potential Infrastructure Integration Five (5) Flagship Zones Key Targets & Performances Flagship A Flagship B Flagship C Flagship D Flagship E JBCC Nusajaya Western Eastern Senai- SPATIAL MANAGEMENT PLAN Gate Gate Skudai Five Flagship Zones, Environmental Sensitive Areas (ESA), Zoning Plan and Use Class Framework, Regional Development Intensity, Transit Oriented Developments IMPLEMENTATION & MONITORING FRAMEWORK Comprehensive Development Plan ii Targeted Economic Indicators, Iskandar Malaysia, 2025 Iskandar Malaysia GDP Projection (RM billion) 2013-2025 (CDPii) (CDPi) CDPii 2025 Achievements as at 2005 2012 Target Estimated GDP (at RM 34.3 RM 52 billion a constant 2005 RM120 billion billion (Year 2013 price) GDP Per Capita RM 25,626 RM 27,025 RM 42,631 4.1% 6.8% 7-8% Growth Rate (2006- (2010-2012) (2005-2025) 2010) 1.7 million Population 1.4 million 3.0 million (58% of target) 0.8 million Employment 0.6 million 1.31 million (56% of target) RM 131.64 Investment RM384 N/A Billion Achieved billion Iskandar Malaysia shall continue to grow towards (Year 2013) achieving its planned growth path and become an internationally competitive and resilient region Comprehensive Development Plan ii A vision towards becoming a A Strong, Sustainable Metropolis of International Standing This vision, as envisaged in the first CDP, will be uphold and carried forward in CDPii Measures to strengthen the region shall be implemented to ensure a region that is resilient and able to withstand threats and challenges. Vision of CDP CDPii continues the Vision for Iskandar Malaysia and drives towards a Self-Sustaining and Resilient Region. Comprehensive Development Plan ii HOLISTIC ECOSYSTEM Iskandar Malaysia Holistic Eco-system A resilient ecosystem, anchored by wealth generators, creating regional wealth that is to be shared equally among communities. Wealth generation and wealth sharing, balanced by optimal use of ecological assets, would enhance the Quality of Life in Iskandar Malaysia, turning it into a leading global region. Alongside this, spatial management and good governance would enable the realization of its vision and goals by 2025. Presentation Outline • Laying a strong foundation • Planning towards sustainability • Gaining international standing • Realising the vision • Conclusion Economic drivers for growth • Logistics • Manufacturing E (esp. high tech and aerospace related) • Financial, A • Tourism (Luxury • Manufacturing D Cultural and Urban Destination (Electronics, Tourism Shopping) petrochemicals, oleo chemicals etc) • CybercitySENAI- SKUDAI JB CITY CENTRE JB • Oil Storage Terminals • Education & PASIR GUDANG / TANJUNG SENAI - SKUDAI Medical Tourism B LANGSAT • Entertainment & Recreation E • State Administration • Finance JB CITY CENTRE • Biotechnology EASTERN GATE DEV NUSAJAYA NUSAJAYA A • Logistics • Free Zone D Industrial Area C B Regional • WESTERN GATE DEV Distribution, International C Procurement • Oil storage TerminalsTANJUNG PELEPAS Investment Incentives in Iskandar Malaysia Standard Incentives Pre-packaged State Incentives Incentives Pioneer Status and A special package of Special flexibilities Investment Tax Allowance incentives can be may be granted to (ITA) for promoted sectors considered, on a qualified developers / areas - MIDA. case by case basis, for high-impact for high-impact projects from Package of fiscal and non projects. compliance with State fiscal incentives for development sector specific activities Jointly evaluated by guidelines. e. g. MSC Status, BioNexus MIDA and IRDA Status Jointly evaluated by State UPEN and IRDA IRDA processes the following: 1. Incentive Support Package (ISP) 2. Flagship Incentives IM (FIM) 3. 15% tax rate scheme (TRS) for knowledge workers in IM Strong Government Support in Infrastructure Enablers Hard Infrastructure Soft Infrastructure Safety & Security RM8.31 billion Government PUBLIC TRANSPORTATION 25 Community Police Posts Investment in Iskandar (CPPs) completed 54 Bus Iskandar Malaysia Malaysia 2006 - 2012. 210 Auxiliary Police serving 27 social routes RM 2.6 billion recruited 38 Bus Express Transit managed by IRDA as the 415 CCTVs installed. implementing Agency. commenced 9 Focus Economic Sectors Financial Tourism Education Logistic Healthcare Creative •ServicesIslamic banking & • Theme parks • Private basic •sRDC, IPC, ILS • Specialist •Film, television, Services finance, retail and • Family education • IILS medical games, animation wholesale banking. entertainment school • Oil storage service •Online mobile • FSSO, financial and center • Private higher and trading • Diagnostic content generation other professional • Food, dining & education hub medical •Integrated media & services shopping institution • Halal logistic service content services • Offshore financial • MICE & • Specialized hub • TCM, wellness service accommodation skills training center Electrical & Electronics Oleo- & Petrochemicals Food & Agro-Processing • Advance E&E • Aerospace • Aromatics & Olefins • Palm oil based products • Renewable Energy • Security & Defence • Polymer production • Cocoa based products • Automotive & Rail• Medical Devices • Oleochem based products • Halal derivatives Manufacturing • O&G processing, support • Agriculture biotechnology industries • Healthcare biotechnology • Industrial biotechnology Investment Update 2006 to June 2015 [CATEGORY Utilities Emerging NAME] Tech 1% 5% 7% RM’bil
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