Iskandar Malaysia draws major investments

Iskandar Malaysia, the southern economic corridor in Peninsular Malaysia, is drawing major investments as reflected in six collaborative deals with total estimated value of RM28 billion.

Prime Minister Datuk Seri Najib Tun Razak, who officially opened the 8th World Islamic Economic Forum (WIEF) yesterday, witnessed the exchange of documents for the six tie-ups in nano-technology, property development, information communication technology (ICT) services as well as a proposed exhibition centre, innovation centre and a motorsport city.

Malaysian Industry Government Group for High Technology (MIGHT) and NanoMalaysia Bhd signed a memorandum of understanding (MoU) to jointly identify potential offset programme recipients for nano-technology-based industries from various sectors.

A nano-technology-based industries centre in Nusajaya is expected to generate some RM1 billion in business opportunities.

Sunway City Sdn Bhd and Iskandar Assets Sdn Bhd signed a subscription and shareholders' agreement to form a joint venture company to undertake the development of the Sungai Pendas project with a potential gross development value (GDV) of RM12 billion.

The other four agreements were linked to UEM Land Holdings Bhd.

UEM Land Bhd, a wholly-owned subsidiary of UEM Land Holdings had inked a deal with Chinamall Holdings Pte Ltd to develop a RM562 million trade and exhibition centre with a 1.4 million sq ft gross floor area on a 12.9ha in Nusajaya.

The China Mall is expected to house some 3,000 traders from China while at the same time creating 3,000 jobs.

UEM Land also signed a pact with Iskandar Investment Bhd (IIB) and Telekom Malaysia Bhd TM on the provision of communication and ICT infrastructure and telecommunication services to make Nusajaya among the leading global interconnected smart communities.

UEM Land, IIB, TM, Centios Co Ltd (South Korea) and Cisco System International had agreed to set up a global innovation centre and to provide smart city and smart building infrastructure and services in line with the smart and connected Nusajaya Master Plan.

Fastrack Autosports Pte Ltd and UEM Land had also tied up to develop Motorsport City in Gerbang Nusajaya via a 70:30 joint-venture.

Work on the project valued at over RM3.5 billion would commence within six months and is expected to be completed in 2015 or 2016, Managing Director and Chief Executive Officer, Datuk Wan Abdullah Wan Ibrahim said.

The Motorsport City covering an area of 109.26ha and located near to the Second Link, will be an integrated mixed development which will also include a 4.5km long test track to be designed by a renown F1 track designer and Asian-based motor sport research and development facilities.

Singapore's Peter Lim, the major shareholder of Fastrack Autosports, who is instrumental in bringing the project to fruition, said the cost of doing business in Singapore is higher and Iskandar Malaysia is attractive.

The good potential and opportunities in the economic corridor make it the right time to invest here, he added.

Meanwhile, China's Country Garden Holdings Co Ltd, which was among the top 50 companies in Asia named by Forbes last year, has invested RM900 million to build a prime waterfront integrated development project in Iskandar Malaysia.

Yesterday, Country Garden Properties (M) Sdn Bhd signed a sales and purchase agreement with Iskandar Waterfront Holdings Sdn Bhd for land in Danga Bay, witnessed by Datuk Seri Najib.

China's Ambassador to Malaysia, Datuk Chai Xi, who was present at the event, said the investment by Country Garden would be an impetus for other Chinese developers to invest in the economic corridor, particularly noting the well-developed infrastructure and growth prospects in the region.

Iskandar Malaysia is expected to surpass its RM100 billion investment target this year, as it has already secured some RM99.79 billion up to the third quarter of the year.

Source: New Straits Times and the Star