Iskandar malaysia

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Progress Report - Iskandar Malaysia

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Iskandar malaysia

  1. 1. Iskandar MalaysiaStrong Sustainable Metropolis of International StandingStrong Sustainable Metropolis of International Standing Presentation by: MOHAMMED ASHRIL Vice President, Investor Relations Iskandar Regional Development Authority 3rd December 2009
  2. 2. Presentation Outline 1. Iskandar Malaysia Overview • Strategic Location • IRDA Roles & Responsibility • Investment Opportunities • Progress Update of Projects 2. What can Iskandar Malaysia offer to Investors? ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 2
  3. 3. The Economic CorridorsEstablished: 2006 Established: 2007 Established: 2007Focus areas: Focus areas: Focus areas:Iskandar Malaysia’s 9 Pillars Agriculture, Manufacturing Agriculture, Biotech, Tourism & Tourism & Logistics Established: 2008 Established: 2008 Focus areas: Focus areas: Oil-based, Aluminum, Steel, Glass, Oil & Gas, Tourism Tourism, Palm Oil, Timber, Petrochemical, Manufacturing, Livestock, Aquaculture, Marine Education, Agriculture Engineering ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 3
  4. 4. Iskandar Malaysia Is Strategically Located • Iskandar Malaysia lies at the heart of South East Asia at the southern tip of West Malaysia within minutes from Singapore • Strategically located at the cross roads of East-West trade lanes • Centrally located in the heart of East AsiaSource : The Economist Intelligence Unit ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 4
  5. 5. Geographical Coverage of Iskandar Malaysia • Area: 2,217 km2 / 550,000 ac. • 3 times the size of Singapore • Population: 1.4 million • Five PBTs and 3 districts Region Area (km2) Population (million)Iskandar Malaysia 2,217 1.4 (Projected 2025: 3.0 million)Singapore 690 4.1Dubai 3,885 1.2Hong Kong 1,095 6.9 ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 5 5
  6. 6. The Iskandar Malaysia VisionEconomic Growth “To develop Iskandar Malaysia into a strong and sustainable metropolis of international standing” Year 2005 Projected (2025) GDP (RM) 70 billion 325.5 billion Per capita GDP (RM) 51,765 108,850 Employment 0.610 million 1.428 million Population 1.4 million 3.0 million ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 6 6
  7. 7. Iskandar Malaysia’s Development Strategy Vision A Strong Sustainable Metropolis of International Standing      Economic Institutional Five International Drivers Socio Framework Infra-Strategic Rim & Economic & structure Positioning Catalyst Equity Regulatory Enablers Pillars Projects Authority Equitable & Fair Distribution Among Stakeholders Three Growth and Value CreationFoundations Nation Building ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 7
  8. 8. Facilitating Regulatory Authority (IRDA) IRDA was established through an Act of Parliament to deliver on the Iskandar Malaysia vision. “IRDA Act 2007 (Act 664) empowers IRDA to IRDA facilitate the promotion, planning, processing and infrastructure development.” Supported by the Prime Minister and Chief Minister of Johore, both Joint Chairmen of the IRDA Members of Authority and esteemed Advisory Council Integrated planning to ensure world-class benchmarks are adopted in development, for example in transportation, urban design, safety and security etc. Collaboration with relevant authorities ensuring seamless service delivery to investors (example: one-stop-centre to fast track approval and provide customer service) ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
  9. 9. Iskandar Malaysia’s Economic Thrusts offers Investment Opportunities Iskandar Economy “Strong, Diversified, Dynamic and Global” Services Educational Services Health Services Financial Industries Creative Petro Electrical & chemical Food & Logistic & The Main Agro Electronics & related Tourism Pillars Oleo Processing Services chemical Five Main ‘Pillars’ to be reinforced Four New Service-Based Pillars’ being added Strong Supporting Industries ( Metal Products, Engineering, Non-metallic, Manufacturing Related Services (MRS)) Support System Strong Supporting Institutions (Education, R&D, Government, Private & social institutions, communication &coordination system) World-class Professionals and Technical Work Force Excellent Physical, Infrastructures, including IT BasicFoundation Excellent Working & Living Environment Stable Political, Social Environment The well-established sectors which are manufacturing-based will be reinforced while giving new emphasis on new sectors which are services-based ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 9
  10. 10. Investments in Iskandar Malaysia To date investments are primarily from the private sector, domestic and internationally; with the Government contributing to infrastructure enhancements and social welfare. From the promotional activities including trade missions Iskandar Malaysia has attracted over 500 site visits from potential investors, domestic and internationally. Catalyst and new key investors includes Iskandar Investment (IIB), Mubadala, Kuwait Finance House, Millennium, UEM/Limitless Asiatic (Genting), Central Malaysian Properties, JCorp, Malaysia Mining Corporation, Malaysia Pacific Corporation etc. ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 10
  11. 11. Investment Updates : Cumulative CommittedInvestment Cumulative Committed Investment RM RM (bln) Year-on-Year Billion Target 2009 RM 44.75 bln 52 49.07 50.0 50 48 45.0 46 44 41.76 6.28 42 40 40.0 24.31 38 6.8 35.0 18.92 36 13.07 34 32 8.17 30.0 50% 30 28 25.8 45% 26 6.44 25.0 24 5.8 5.1 22 20 20.0 18 16 11.3 7.1 15.0 24.76 14 22.83 12 1.0 23.28 10 21.7 10.0 55% 50% 8 5.8 6 4 11.9 5.0 2 5.5 0 0.0 2006 2007 2008 YTD Sep 09 2008 YTD Sep 09 Manufacturing Utilities,Tourism & Others Properties Government Foreign Local Committed Investment To ensure committed investments are delivered ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: IRDA, Khazanah, IIB , MIDA &corporate announcements
  12. 12. Investment Updates :Committed vs. Actual Investment Cumulative Cumulative Actual Investment as Committed Committed at Sep ’09 Sectors Investment Investment (RM bln) as at Dec ‘08 Jan’ 09 – Sep ‘09 (RM bln) (RM bln) Manufacturing 21.70 1.58 10.81 Utilities 2.90 - 0.47 Tourism 0.75 - 0.04 Property 8.17 4.90 2.35 Government 6.83 -0.56 * 1.63 Others 1.40 1.40 0.48 Subtotal 41.75 7.32 15.78 Total Committed 49.07 Investment* To reflect RMK-9 ceiling reduction of RM557 million 32.2% of the total committed investment have been spent to-date ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
  13. 13. Iskandar Malaysia: Geographical Area • Focused Development at Five Flagships • 2,217 km2 or 550,000 acres • 3 times the size of Singapore Senai – Skudai • 1.4 million population (Kulaijaya) Flagship Flagship Flagship Flagship Johor Bahru Flagship Eastern Gate Development City Centre Nusajaya (Pasir Gudang – Tanjong Langsat) Singapore Western Gate Development (Port Tanjung Pelepas) ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
  14. 14. Project Progress Update – Flagship A Johor Bahru • Gerbang Sultan Iskandar City Centre 9 Dec 2008 ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: IRDA 14
  15. 15. Project Progress Update – Flagship BKey Projects Location in Nusajaya SiLC Horizon Hills Educity Kota Iskandar East Ledang Puteri Harbour Medini ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 15
  16. 16. Developments in Flagship Zone CWestern Gate Development (Port of Tanjung Pelepas) PTP expansion (MMC Corp) (RM1.5bn) • RM1.5 bn • Berth 11, 12, 13 and 14 • Capacity to increase by 3.2mn TEUs to 11.2mn TEUs by 2010 • Expected to attract additional FDI of RM5bn by 2010 Completed Asia Petroleum Hub : KIC - Bunker Terminal in Tanjung Bin In Progress • GDV: RM1.4 billion Planning Stage • Built on manmade island • located 700m from PTP MMC Corp: Maritime Centre at Tg Bin • Initial investment of RM2.0-RM2.3bn, • Total expected FDI of RM17-20bn • Total area of 2,255 acresZone C 16 ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
  17. 17. Developments in Flagship Zone DEastern Gate Development (Pasir Gudang) Pasir Gudang Industrial Park Johor Port – Multi Purpose Port facilities Tanjung Langsat Port (sub. of Johor Corp ) (Johor Corp) - 3,764 acres 1000 acres of land with 600 acres of FZ 3rd port - LPG, petrochemicals (750 acres) Completed In Progress Planning Stage Tanjung Langsat Industrial Complex Bahru Stainless (M) Sdn Bhd (subsidiary of Johor Corp) RM 5bn steel plant inTanjung Langsat Light, Medium & Heavy Industries 4,198.52 acres Zone D LakeHill Resort City (MPC) Integrated Resort Development - 500 acres ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
  18. 18. Developments in Flagship Zone ESenai - Skudai Hi-Tech Park Senai (MMC Corp Bhd ) Johor Technology Park & Sedenak Senai Airport (sub. of MMC Corp Bhd) 1,000 acres Industrial Park Integrated Airport City in Senai (Johor Corp.) Completed In Progress Planning Stage Zone E MSC Cyberport City (MSC Cyberport ) Johor Premium Outlets 130 acres Genting & Chelsea Property ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 18
  19. 19. Project Progress Update – Flagship E Senai - Skudai • Senai International Airport – Airside Development May 2009 Runway extension 446m – 100% Completed ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: Senai Airport Terminal Services 19
  20. 20. Iskandar Malaysia Investors ProfileNAIGAI NITTO ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
  21. 21. Presentation Outline 1. Iskandar Malaysia Overview 2. What can IM offers to Investors? • Excellent Logistics • Choice Locations • Quality Human Capital • Incentives ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 21
  22. 22. Excellent Logistics in Iskandar Malaysia • Six to eight hours flight radius from Asias burgeoning growth centres such as Bangalore, Dubai, Hong Kong, Seoul, Shanghai, Taipei and Tokyo. • Within reach of a global market of some 800 million people. • Accessible by air, land, rail and sea. • Flanked by three major ports, the Pasir Gudang Port, Port of Tanjung Pelepas and Tanjung Langsat Port ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
  23. 23. Choice of Locations Flagship B Southern Industrial Logistics Cluster Flagship C Pelepas Free Zone (next – to Port of Tanjung Pelepas) Flagship D Pasir Gudang Industrial Estate Tanjung Langsat Industrial Estate Flagship E Senai High Tech Park Sedenak Industrial Park ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
  24. 24. Flagship B – Southern Industry Logistics Cluster (SiLC) Nusajaya • Choice for High Tech Industries & Logistic ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
  25. 25. Flagship B – Southern Industrial Logistics Cluster Nusajaya • Southern Industrial Logistics Cluster (SiLC) • 1,300 acre industrial park. • Planned to be a clean and green-managed industrial park • Excellent connectivity with proximity to Singapore and Port of Tanjung Pelepas • Provides opportunities for long term operational expandability • Land price starts from RM 26 sq ft ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
  26. 26. Flagship C – Port of Tanjung Pelepas and the PelepasFree Zone Western Gate • Choice for Logistics Hub and Development Manufacturing ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: PTP 26
  27. 27. Flagship C – Port of Tanjung Pelepas and the PelepasFree ZoneWestern Gate • Port of Tanjung PelepasDevelopment • One of the fastest growing container port in the world (ranked 18th in the world) • Four new berths will be added to increase the port’s capacity up to 11.2mil TEUs by 2010. • 400 acres designated as Free Commercial Zone (FCZ) for logistic activities. • 600 acres of Free Industrial Zone (FIZ) for light, medium and heavy manufacturing industries. • Land leased price starts from RM 26 sq ft ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: PTP 27
  28. 28. Flagship C – Port of Tanjung Pelepas and the PelepasFree Zone • Global Players in PTP PFZ Western Gate Development ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: PTP 28
  29. 29. Flagship D - Pasir Gudang & Tanjung Langsat Eastern Gate Development • Choice for Heavy Industries ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 29
  30. 30. Pasir Gudang & Tanjung Langsat– Flagship D Eastern Gate Development • Choice for Heavy Industries • Suitable for heavy industries, petrochemicals and oleochemicals projects • Close to the international shipping lane and the availability of the other modes of transport. • Vast industrial land of about 4,000 acres located next to Port of Tanjung Langsat • Leasehold land price starts from RM 15 sq ft ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 30
  31. 31. Flagship E - Senai High Tech & Aviation Park - • Choice for High Tech Manufacturing, Logistic & Senai - Skudai Aerospace Industries ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: Senai Airport Terminal Services 31
  32. 32. SENAI AIRPORT CITY OVERVIEW Development Master Plan The Senai Airport City consists of an integrated 2,718.68 acres of free zone and mix industries development located adjacent to the Senai International Airport. The Senai Airport City will be developed as a premier development with an integrated Work- Cargo & Live-Develop-Meet-Play environment. Logistics Park The main components of the Senai Airport City development are:Commercial i. Zone 1 - 1,138 acres will be developed& Residential Hi-Tech Park into a High-Technology Industrial Park. PHASE 3: ii. Zone 2 - 928 acres as a free zone Cargo, Senai Airport City (2,719 acres) Logistics & Aviation Park. iii. Zone 3 - 652 acres to be developed into a Commercial and Residential Park. Land leased price starts from RM 25 sq ft ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
  33. 33. Flagship E – Sedenak Industrial Park • Choice for High Tech Manufacturing, Small, Sedenak Medium & Supporting Industries ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: Senai Airport Terminal Services 33
  34. 34. Sedenak- Flagship E Sedenak • Sedenak Industrial Park • Newest industrial area in Johor • 3,000 acres dedicated for industries • Easily accessible to the North-South Highway. • Provides huge opportunity for growth and development. • Leasehold land price starts from RM 12 sq ft ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: Senai Airport Terminal Services 34
  35. 35. Quality Human Capital • Human Capital Development in IM is being supported by IRDA Human Capital Blue Print. • Three (3) Universities in Johor with strong courses for Engineering, Aerospace etc. They are University Technology Malaysia, University Tun Hussein Onn (Batu Pahat), University Institute Technology Mara and skills training institutions • Pool of engineering and technical talent from global manufacturing industries that already existed in Johor such as Flextronics, TRW, Seagate, Kiswire, Western Digital, etc. ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
  36. 36. Good Incentives for Manufacturing Activities Promoted activities High Technology National and Prepackaged (General) Projects Strategic Projects IncentivesPioneer Exemption from tax for Exemption from tax Exemption from tax 5 Exemption from taxStatus 5 years at 70% of for 5 years at 100% of years, may be up to 10 years or statutory income statutory income extendable to more at 100% of another 5 years at statutory income 100% of statutory incomeInvestment 60% ITA on qualifying 60% ITA on qualifying 100% ITA on 100% ITA onTax capital expenditure capital expenditure qualifying capital qualifying capital incurred within 5 years incurred within 5 expenditure incurred expenditure incurredAllowance to be set off against years to be set off within 5 years to be within a period up to(“ITA”) 70% of statutory against 100% of set off against 100% 10 years to be set off income statutory income of statutory income against 100% of statutory income ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)
  37. 37. In Summary  Centrally located in the heart of East Asia  Leveraging on the close proximity to Singapore with Global connectivity  Sustainable economic growth within ASEAN region  3 world-class ports,1 international airport and 2 additional ports + an international airport in Singapore  Connectivity–highways, train, broadband, availability support services  Availability of quality skills/manpower  Upgraded physical and social infrastructure  Consistent and transparent Government policies  Creation of IRDA to facilitate businesses & investments  Ease of sourcing capital, goods and resources  Attractive investor value propositions – High upside potential for investments  Overall Competitiveness – Total cost of doing business ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 37
  38. 38. Thank You“Iskandar Malaysia offering the right balanceof the right ingredients for everyone to invest, work, live and play” Contact: Mohammed Ashril Vice President Investor Relations ashril@irda.com.my ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 38

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