One the move Left: Johor’s two ports have a vital role to play. Right: The Johor Bahru Central Business District - the southern gateway to Malaysia

A magnet for foreign investment with ambitions to rival neighbours
The first state to launch one of the new economic development corridors, Johor has become a hub of investment and growth

One of the largest and most developed states in Malaysia, Johor is going places fast with plans to become one of the most important strategic hubs in the whole of southeast Asia. Located at the southern end of Peninsular Malaysia, it sits close to Singapore, but boasts land aplenty and natural resources that its more famous rival can only dream of.

Johor was chosen by the federal government to be the first Malaysian state to launch one of several new economic development corridors. The Iskandar Development Region (IDR, see below) foresees a large area of Johor being transformed into a giant business and industrial hub and eco-tourism centre, just a stone’s throw from Singapore.

In terms of generating investments, Johor has become one of the most successful states in Malaysia, for the last three years or so being the main recipient of foreign direct investment in terms of manufacturing and services. Between January and August last year it accepted 125 projects worth more than RM7 billion – most of it foreign investment. “Southern Johor is a natural area for growth,” says Abdul Ghani Othman, Johor’s Chief Minister. “We account for almost a third of the investment flow into Malaysia.”

Abdul Ghani Othman Chief Minister of Johor

With a population of 2.7 million, Johor’s economy is strong, driven by activity within the IDR, as well as by key industries such as palm oil, fruit and vegetables and food production. The state is the nation’s top producer of bananas, rubber and pineapples.

Services and other more advanced industries are expanding as the IDR takes off. ICT is one area that is growing swiftly, with the development of a cyberport and cybercity part of a plan to position Johor as one of the top multimedia super corridor sites in the country. Other industries that have stirred interest among investors include biotechnology and a shift to higher value organic food production.

Around the state capital, Johor Bahru, and other major towns, industrial estates produce electronic components, appliances, furniture, textiles and petrochemical products for local consumption and for export. A new administrative capital for the state is being built at Nusajaya.

Tourism is another area that the authorities are keen to promote. The state received a record 15.5 million tourists between January and August last year, an increase of almost 20 per cent on the same period in 2006.

Johor offers traditional villages, beautiful waterfalls and a breathtaking national park in Endau-Rompin. With a number of quiet golf resorts and picturesque beaches, it is the perfect antidote to its hectic neighbour for those looking to unwind. Kota Tinggi is a venue for some of these resorts, just 30 miles north-east of Singapore. The area attracts scores of visitors looking to catch a glimpse of fireflies in their thousands lighting up the night sky.

Johor has a rich history too. The word Johor is derived from the Arabic word Jauhar – literally “precious stones” – highlighting the influence of the early Arab traders who traded spices in the area. The country’s first links with Portuguese colonists centuries ago can also be seen in some of the local architecture.