A model of the Danga Bay waterfront development

New power corridor is a giant vision in every sense
Iskandar

The Iskandar Development Region (IDR) in Johor is set to become one of southern Malaysia’s most prized assets, a thriving conurbation for people to live in, work in and enjoy. Three times the size of Singapore, the scale of this multi-billion pound development project reflects the country’s global ambition and will help solidify Malaysia as an important business hub in the dynamic Asia-Pacific region.

Less than an hour by car to Singapore’s Changi International Airport and three hours from Kuala Lumpur, IDR will become a strategic gateway to the entire region. The area is less than eight hours flying time away from the likes of Dubai, Bangalore, Hong Kong, Seoul, Shanghai, Taipei and Tokyo. This means easy access to one of the world’s richest and fastest growing markets.

It is a big vision in every sense. Covering a land area of some 2,217 square kilometres, the IDR is home to more than 1.3 million people – about 43 per cent of Johor’s current population – with around two-thirds at working age. With a total GDP of over $20 billion, it already represents roughly 60 per cent of the state’s prosperous economy. This is dominated by manufacturing and services. Close by are key port facilities such as Senai, handling 1.25 million visitors and over 7,500 tons of cargo in 2005, and the world-class transshipment hubs of Port of Tanjung Pelepas and Pasir Gudang.

Johor’s Chief Minister Abdul Ghani Othman says the response to the IDR has been overwhelmingly positive. “Since its announcement, IDR has attracted a lot of interest from different parties from various parts of the world,” he says. “We have been approached by potential investors, both locally and overseas.”

Key industries will include education, medicine, recreation, finance and logistics. The IDR is split into distinct economic zones: the JB City Centre, including a financial district and the prime Danga Bay waterfront development; Nusajaya, poised to become the nucleus economic zone, at the tip of southern Peninsula Malaysia; the Western Gate Development, the trading and export hub on the western coast; and the Eastern Gate Development on the eastern shore. Future plans include a vast eco-tourism centre, covering 2,000 acres and including housing and resorts.

A primary attraction is the cost-competitiveness of the area for residential and commercial development in comparison to neighbouring Singapore. At the same time all of the basic infrastructure – road, rail, air and sea links – is firmly in place. The government is even offering a range of incentives to get the ball moving.

Mr Ghani believes the IDR will continue to grow to become an important development pole within Malaysia. “IDR is one of the best places for investment in the region,” he says. “Consider IDR not only as a place of investment but as a venue for a second home where you can live, work and play.”