Five year-progress-report iskandar


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5 Year Progress Report On Iskandar Malaysia

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Five year-progress-report iskandar

  2. 2. 1 ISKANDAR MALAYSIA - 5 Year Progress Report
  3. 3. AcKnowledgementsYAB Prime Minister, MalaysiaYAB Chief Minister, JohorPrime Minister’s DepartmentPrime Minister’s OfficeChief Minister of Johor’s OfficeJohor Corporation BerhadMMC Corporation BerhadUMLand BerhadIskandar Regional Development AuthorityKhazanah Nasional BerhadUEM Land Holdings BerhadIskandar Investment BerhadErnst & Young Advisory Services Sdn BhdX2 Sdn BhdText 100 Pte LtdSalt Media Consultancy Sdn BhdDC Print Sdn BhdAmir HafiziThe people of Johor Darul Ta’zim 11 DECEMBER 2011 ISKANDAR MALAYSIA - FIVE Year Progress Report 2
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  5. 5. Foreword fromthe Prime Minister of MalaysiaW hen the Government of Malaysia set outto transform southern The rakyat is the ultimate beneficiary of Iskandar Malaysia, and even in theJohor by tapping into the five short years since itsregion’s strategic location, launch, the benefits fromits vibrant population the changes for the goodand strong logistical that have been set ininfrastructure, it was with motion can already be feltthe idea of developing a through improved publicworld-class and dynamic infrastructure, thousandsmetropolis that would be a of new jobs, and enhancedkey growth corridor for the safety and security, tocountry. name a few.Today, five years on, Alhamdulillah, the progressIskandar Malaysia has that has been achieved somade great strides towards far in Iskandar Malaysiaachieving that goal. The is highly laudable but it isregion is a manifestation of just the beginning, withthe Government’s plan to more key developments “The development in Iskandardecentralise development to be launched next yearand spread it out to all and many others over the Malaysia is geared towardscorners of Malaysia, duration of the region’s being inclusive and sustainable,thereby helping to ensure 20-year developmentthat no Malaysian is horizon. The Government providing a multitude ofleft behind in reaping of Malaysia for its part is prospects for growth andthe benefits from, and committed to ensuringseizing the opportunities the continued progress prosperity to be enjoyed by allgenerated by, our nation’s and ultimate success of stakeholders.”economic growth. Iskandar Malaysia.In line with the principles As co-chairman ofof Malaysia’s on-going the Iskandar Regionaltransformation into a Development Authorityhigh-income economy, (IRDA), I would like to takethe development in this opportunity to thankIskandar Malaysia is geared everyone involved for their YAB Dato’ Sri Mohd Najib bintowards being inclusive passion, perseverance and Tun Abdul Razakand sustainable, providing hard work that has brought Prime Minister of Malaysiaa multitude of prospects Iskandar Malaysia this farfor growth and prosperity and undoubtedly will taketo be enjoyed by all it further.stakeholders. ISKANDAR MALAYSIA - FIVE Year Progress Report 4
  6. 6. Message fromthe Chief Minister of JohorIskandar Malaysia is of huge significance and importance to the socioeconomic progress of Johor, withdevelopment in the region founded upon fundamentalprinciples that will have a positive impact on the people inthe state.Through Iskandar Malaysia, Johor is given a key role innation-building, which is a natural role for a state that hasa rich, centuries-old history and tradition in being at theforefront of social, economic and political development inthe Malay Peninsula.The factors of growth and value creation lie at the heartof the development of an internationally-competitiveIskandar Malaysia, with strong regional and global linkagesthat together with domestic strengths and advantages willdrive creativity and innovation.Most important of all, the development of IskandarMalaysia is anchored upon the fair and equitabledistribution of the fruits of our collective labour amongstakeholders, so that the value and wealth generated is “Through Iskandar Malaysia,shared across all segments of society. This principle isparamount as the final outcome sought is for the rakyat to Johor is given a key role inenjoy an enhanced standard of living, with good access to nation-building, which is aquality education, high-value employment and businessopportunities, and an enriched quality of life. natural role for a state that has a rich, centuries-old historyIt is indeed heartwarming and encouraging to see thegrowth of Iskandar Malaysia thus far, with good progress and tradition in being at themade in areas such as its physical and soft infrastructure, forefront of social, economickey catalytic projects and social development initiatives. and political development in theThe Government of Johor remains steadfast in its efforts Malay Peninsula.”towards Iskandar Malaysia’s success and is continuouslycommitted to working hand-in-hand with the FederalGovernment, the private and public sectors, and mostimportantly, the people of Johor in ensuring the region’sfurther growth. The state government is grateful to allwho have contributed through this collaborative approach,which is pivotal to Iskandar Malaysia’s achievements to Dato Haji Abdul Ghani Othman,date and in the future. YAB Menteri Besar JohorAs co-chairman of the Iskandar Regional DevelopmentAuthority (IRDA), I would like to say that truly, the rakyat,both in Johor and throughout our nation, have much tolook forward to in Iskandar Malaysia, Insya-Allah.5 ISKANDAR MALAYSIA - FIVE-Year Progress Report
  7. 7. Message fromthe Chief Executive of IRDAIskandar Malaysia is well and truly off the ground and we are now starting to see growth and developmentthroughout the region.Much has been done in the five years since the launch ofIskandar Malaysia and several important milestones thatwere set for the development of the region have been wellmet. Key road infrastructure projects have been completedor are nearing completion, as are several catalytic projectsthat will further spur growth and investment.Cumulatively, Iskandar Malaysia has recorded a totalcommitted investment of RM77.82 billion, surpassing thetarget set for the first phase of development. About 40%of the total is from foreign investment and more thanRM30 billion have been realised.Iskandar Malaysia is now into the second phase of its20-year development period, with 2012 set to be a tippingpoint for the region as several catalytic projects are set tocome on stream. “Iskandar Malaysia has recordedIn this context, this report is timely as a progress update ofwhat has been implemented and achieved in the five years a total committed investment ofof Iskandar Malaysia. RM77.82 billion, surpassing theIndeed, these achievements were a result of tight target set for the first phase ofcollaboration and cooperation from many parties involved development”in bringing the Iskandar Malaysia vision closer to reality.The Federal Government and Johor State Governmenthave been pivotal in the progress of Iskandar Malaysia wesee so far, and on behalf of IRDA, I would like to record ourgratitude to them.There is more to be done and IRDA is unwavering in itscommitment to ensuring the success of Iskandar Malaysia. Ismail bin Ibrahim Chief Executive of Iskandar Regional Development Authority (IRDA) ISKANDAR MALAYSIA - FIVE-Year Progress Report 6
  8. 8. mEssAgE FRom THE mAnAgIng dIRECToRoF KHAZAnAH nAsIonAl BERHAdF ive years have passed since the launch of the Comprehensive Development Plan (CDP) for what wasthen known as the South Johor Economic Region. the CDPguides the holistic development of Iskandar Malaysia overa period of 20 years from 2006 to 2025.Covering a multitude of aspects including socioeconomic,physical, legal and institutional, as well as environmentalplanning, the CDP envisaged the creation of a solid andsustainable conurbation of international standing thatwould also ensure fair and equitable distribution ofbenefits to its stakeholders.Alhamdulillah, we have witnessed much progress notonly in terms of investments that have been made andthe physical development that is evident on the groundbut also in efforts to ensure that the people of Johor, theultimate beneficiaries of Iskandar Malaysia, would fullyshare in its growth and progress.Khazanah is very honoured to be given the opportunity toparticipate in this landmark development of the shaping of “There is more to be done andnot just Iskandar Malaysia but indeed the future landscapeof Malaysia itself. we must double our efforts to make it a magnet for investment,I would like to thank and congratulate all who have beeninvolved in transforming Iskandar Malaysia from the idea talent and economic activity,that it was into the reality that it is today, in particular regionally and internationally.”the Federal government and the Johor State governmentfor the strong and solid support that has been extendedthroughout.these achievements however should not be a reasonfor us to rest on our laurels but rather serve to motivateand drive us further to ensure that Iskandar Malaysiacontinues to progress as planned. there is more to be Tan sri dato’ Azman Hj. mokhtar,done and we must double our efforts to make it a magnet managing director, Khazanah nasional Berhadfor investment, talent and economic activity, regionallyand internationally. god-willing, through our continuouscommitment and endeavor, Iskandar Malaysia will succeed.7 ISKANDAR MALAYSIA - FIVE-YEAR PRogRESS REPoRt
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  10. 10. TABLE OF CONTENTS CHAPTER 1: 12 ISKANDAR MALAYSIA – CONTINUATION OF A HISTORY AND TRADITION OF PROGRESS Johor: At the Forefront of Change The Iskandar Malaysia Premise CHAPTER 2: 22 FIVE YEARS OF ISKANDAR MALAYSIA – HIGHLIGHTS AND MILESTONES CHAPTER 3: 26 THE FLAGSHIP ZONES – A PROGRESS UPDATE Overview of Progress Flagship Zone A: Johor Bahru City Flagship Zone B: Nusajaya Flagship Zone C: Western Gate Development Flagship Zone D: Eastern Gate Development Flagship Zone E: Senai-SkudaiTABLE OF CONTENTS CHAPTER 4: 58 SOCIAL DEVELOPMENT – GROWTH THROUGH INCLUSION I. Human Capital Development II. Social Inclusion III. Economic Inclusion IV. Housing and Spatial Development V. Safety and Security CHAPTER 5: 66 WAY FORWARD Strategies for the Next 5 Years APPENDIX 72 Acronyms & Abbreviations
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  12. 12. Chapter 1:ISKANDAR MALAYSIA -CONTINUATION OF A HISTORYAND tRADITION of progressIskandar Malaysia is situated in south Johor, which has a centuries-old tradition of being at the forefrontof social, economic and political developments in Peninsular Malaysia and the region. Through itsstrategic location, abundant resources, strong leaders and progressive communities, the great stridesmade by Johor throughout history have generated waves of impact and influence on its surroundings. Aprime example is the Johorean influence in language: before the standard use of Bahasa Baku, it was JohorMalay that was the lingua franca both in British Malaya and the Dutch East Indies, and it was Johor Malaythat would become the national language of independent Malaya.In this context, Iskandar Malaysia is the continuation of the open and outward-looking spirit that hascharacterised centuries of Johor’s history. It is the extension of the innovation and imagination thatmoved celebrated sons of Johor the likes of Temenggong Ibrahim, Sultan Abu Bakar, Dato’ Abdul RahmanYassin, Dato’ Onn and Tun Dr Ismail to undertake great and ambitious tasks for the public good withpracticality, wisdom and principle. It is the enterprise of Wong Ah Fook and the Kuoks, the hard work andthe commitment of the Alsagoffs and other Hadhrami families, and it is the courage and conviction of thePuthuchearys. Above all, it is the evolution of the deep and binding friendship of once-different peoplesfrom many lands and of many faiths.It is this tradition of leadership and dynamism has put Johor at the forefront in the past, and provides theseeds of great potential for its success in the future. Knowingly or not, the leaders of Johor in its earlyhistory were building the foundations of a state based on the modern economic principle of generatingGDP by employing the productive use of labour and capital. Through being open and welcomingof external talent and investment, armed with foresight and vision, and boldly exploiting Johor’scomparative advantages, they put into practice a formula for economic growth and prosperity thatremains valid to this day.The legacy of Johor’s political, social and economic leadership provides both a challenge and anopportunity for the people of Johor to continue this tradition and realise the potential that isIskandar Malaysia. ISKANDAR MALAYSIA - FIVE-Year Progress Report 12
  13. 13. Johor: At the Forefront of ChangeIt is often said in Peninsular Malaysia that the people ofJohor are “a little different”: highly refined, educated and The Golden Chersonesefiercely independent. When thinking of the earlyJohor is, after all, the birthplace of the post-war Malay trading kingdoms of the Malaynationalism that would lead quickly to the independence world, the Srivijaya Empire withof Malaya, and even today it is regarded as the last and its capital at Palembang, or thegreatest bastion of that political tradition. At the same later Sultanate of Malacca fromtime, however, Johor enjoys a liberal and cosmopolitan which the state of Johor isreputation unrivalled either in the peninsula’s long history directly descended, often comes to mind. And yet, earlyor in the glittering landscape of modern Malaysia. Western maps such as the Geographia attributed toIt was a Johorean, Dato’ Onn Ja’afar, who founded the Claudius Ptolemy, suggestsUnited Malays National Organisation (UMNO), and it was something quite different. Compiled under various hands in thealso he who first demanded that the party open its doors to first millennium of the Common Era, it is in this work that theall Malayans regardless of creed or colour. It was another Chersonesus Aurea or Golden Chersonese – “Chersonese”Johorean, Tun Dr Ismail Abdul Rahman, who would agitate meaning “Peninsula” – is first mentioned (Wheatley, P., Thein favour of citizenship for all those resident in Malaya to Golden Khersonese, University of Malaya Press, Kuala Lumpur,make them loyal citizens of the new independent nation. 2010). The name has long been considered to show how important the Peninsula’s gold trade had been to the West, andSuch sentiments did not emerge overnight nor were they especially to the Roman Empire.peculiar to a handful of individuals who existed in isolation There are some recognisable names: on the northwest of theor happened by accident to be Johorean. Indeed it is Golden Chersonese the compilers of the Geographia identifiedpossible—even likely—that the historical inhabitants of a city called Cocconagora, which might correspond to the lostJohor have had as much close contact with other peoples kingdom of Gangga Negara (what is now thought to be Beruasand cultures as anyone in the Peninsula. and Manjung in Perak), while further north is the town of Kalonka on what might be the lower Pahang River today.A jewel in the south To the south, however, there is a major river, the Palandas, that ran north through the peninsula from what is today the TebrauIn the Sejarah Melayu (the Malay Annals) of 1612, Tun Sri Strait. On the banks of this river, just inland from the sea, wasLanang tells of the land of Gangga Ayu and its great fort a city of the same name, and nearby was the market town ofof black stone on the banks of the Johor River. Ruled by a Sabanda. These names and cities are lost to us, but nonethelesscertain Raja Chulan, Gangga Ayu was thought by Tun Sri scholars believe that Palandas is the Johor River and that theLanang to have been the Malay equivalent of an ancient city of Palandas was established on the site of what is now Kota Tinggi. The market of Sabanda might well have been a tradingSiamese expression (khlang khiaw) signifying “the Treasury post on the island of Singapore—its specific designation as anof Jewels”. This is borne out by the old Javanese name for emporium on the map implied that it was operated by non-Johor—Galuh—which in literary Javanese today still means Roman authorities who charged non-Roman levies.“diamond” or “jewel”. Also, contemporary Arabs referred toGangga Ayu as Jauhar (Arabic for “jewel”), and it is entirely Scholars generally accept that the cartographers of thepossible that Jauhar gives us the modern name “Johor”. Geographia marked only the waterways that featured prominently in trade—in this case, the gold trade—and if theMany historians believe that the Arab community, Golden Chersonese was indeed the Malay Peninsula, then theoriginally merchants and teachers from Hadhramaut in ancient peoples of Johor and Rome (whether the Western Empire,Yemen, began to settle in Johor in the 14th century. It which fell by the end of the fifth century CE, or the Easternwas through this community that the Johorean artistic Byzantine Empire, which fell in 1453) were almost certainly known to each other.traditions of the zapin and hamdolok, as well as the use ofthe gambus in music, first took root. There are still Arabicplace-names in Johor Baru today, such as Wadi Hanaand Wadi Hassan, and there is also a strong Hadhrami13 ISKANDAR MALAYSIA - FIVE-Year Progress Report
  14. 14. ISKANDAR MALAYSIA - CONTINUATION OF A HISTORY AND TRADITION OF PROGRESS CHAPTER 1 community in Batu Pahat. was given written authority to establish and supervise theEarly Recognition The Javanese, meanwhile, plantation and to collect taxes for the state. In this way influenced the development the system promoted both infrastructural developmentJohor was known to the of kuda kepang, as well as and trade as more and more Chinese workers establishedChinese at least as early Johorean cuisine in delicacies tax-exempt shops and services for the residents of the newas the middle of the Tang such as nasi ambeng, lontong, settlements. Temenggong Ibrahim first put the kangchudynasty (around the ninth and ungkep. system in place at the settlement of Kangkar Tebraucentury CE), and there are in 1844, and by the 1860s there would be some 1,200map references to a kingdom By far the most obvious kangchu plantations employing 15,000 workers.the Chinese knew as Lo-Yue,corresponding to the location example of Johor’s outward-of Palandas in Ptolemy’s looking spirit can be seen in Moving forwardGeographia. It is in Lo-Yue, the commerce and industryfor example, that Prince of the mid-19th century, and In 1855 Temenggong Ibrahim shifted his capital fromTakaoka (799CE–865CE), the it has been said by historians Teluk Belanga to what was then the small fishing village ofthird son of Emperor Heizei that the best examples of Tanjung Puteri, but it was his son Temenggong Abu Bakar(773CE–824CE) of Japan, is Malay co-operation with (the great-great grandfather of the present ruler, Sultanrecorded in official Japanese Chinese investors and labour Ibrahim Ismail) who would build on these early foundationsannals to have been killed by was undoubtedly in Johor. to make the state of Johor what it is today.a tiger while en route to India.A memorial to Prince Takaoka Welcoming to all It is a testament to the rulestands today in the Japanesecemetery at Jalan Kebun Teh of Sultan Abu Bakar, as he “A Man of Exceptionalin Johor Baru, and this and The state’s first Chinese would later become, that at Intelligence”other factors give credence settlers arrived in the early various times the Chineseto the idea that Johor was the 1840s. They were Teochew subjects in his state would Described by the Englishsite of the lost city of Kota from Swatow (now Shantou) outnumber the Malays by as “a man of exceptionalGelanggi. and Chaozhou in China and as much as four to one, and intelligence”, Sultan Abu Bakar they arrived when the young yet—unlike the experience was born on 3 February 1833 Raja Temenggong of Johor, of other Malay states—there in Teluk Belanga, Singapore. The Governor of the Straits Tun Daeng Ibrahim Abdul Rahman (1810–1862), had just were almost no instances Settlements, William been appointed officially to his post. The Temenggong was of friction (although there Butterworth, suggested that a high political office within the Majlis Orang Kaya, and the were cases where different the young boy be sent to Temenggong of Johor, centred in Teluk Belanga, Singapore, Chinese dialect groups England for his education but held as a personal fiefdom what is today effectively the fought each other). Quite the Temenggong Ibrahim replied state of Johor and the island of Singapore. This excluded contrary: it was under the with a firm “no”. Instead, Abu Muar, which was held by its own Temenggong centred in rule of the Father of Modern Bakar would learn Islam and Segamat, while Pahang was held by the Bendahara, Riau by Johor, as Abu Bakar would adat (Malay customary law) the Yam Tuan Muda, and the rest of the Empire of Johor by be known, that the state from private tutors before the Sultan who resided in Linggi (in Negri Sembilan today). leapfrogged economically, being sent to the local mission socially and politically into school, the Teluk Belanga Malay School. The school was run by Sir Stamford Raffles had taken control of Singapore the modern world, and it did the Rev Benjamin Keasberry, for the East India Company in 1819, and what began as so comparatively free from an expert in Malay and whose experimental pepper and gambier plantations had, by colonial interference. Johor staff included Munshi Abdullah the time of Temenggong Ibrahim’s accession, resulted was the only state to maintain Abdul Kadir. in a shortage and exhaustion of land on the island. its complete autonomy even Temenggong Ibrahim persuaded the Chinese to open up as late as the end of the 19th more plantations in the dense jungle along the rivers of century when the British administration sought to promote Johor, and here he devised an innovative system in which a direct control over the Malay states. How Johor achieved senior Chinese, called a kangchu (head of the river), would all this is a testament to the skill and wisdom of Abu Bakar be given charge of a particular river where the plantation and the multiracial officers of his Government. was to be established. With what were effectively a renewable tenancy and a business licence, the kangchu ISKANDAR MALAYSIA - FIVE-Year Progress Report 14
  15. 15. Abu Bakar’s vision kangchu system, and it was through this that luminaries such as Muhamad Salleh Perang (1841–1915) helped toAbu Bakar ascended as Temenggong on the death of his transform the state economically. Muhamad Salleh wasfather on 31 January 1862. He was just 29 years old but fluent in both written Chinese and spoken Teochew, asimmediately set about developing the kangchu system well as Chinese traditions, and was so close to the Chineseinto a legal contract based on a European model. Under community that he is credited with the establishmentthe new rules, a contract would be issued to individual of Batu Pahat and its development as a trading andmerchants living in Singapore or else to combines (or agricultural centre. He accompanied Abu Bakar to Chinakongsi) of several merchants who could raise the capital in 1880 and rose to the position of Dato’ Bentara Luar offor developing their plantations and the necessary the royal court, and there were often times when the Courtinfrastructure. The kangchu himself became a site of Johor had more Chinese-speakers than the Colonialsupervisor reporting to the concessionaire or kongsi, and Government in Singapore.the Chinese community as a whole were represented by aKapitan Cina, of which there would eventually be three Abu Bakar also struck a close friendship with a youngin Johor. contractor called Wong Ah Fook, who left his home in Taishan County, Guangdong, as a result of the clan warsThe leading concessionaire and Kapitan at the time was of the time. As a young builder in Singapore he earned theTan Hiok Nee (1827–1902), a Teochew. In his early years notice of Hoo Ah Kay (better known as Whampoa, theas a cloth peddler, he was a frequent visitor to Abu Bakar’s Anglicisation of Huangpu, the district in Guangzhou wherehouse and became his friend. Tan grew to be a prominent he was born) who was a prominent merchant—the onlycloth merchant with businesses in Johor by the time he Asian chandler to the Royal Navy—and Consul of Russia,received his first kangchu contract in 1853, and eventually China and Japan in Singapore. As a result of Whampoa’she rose to become the leader of the Ghee Hin (or Ngee patronage, Wong received his first major commission inHeng) Kongsi around 1964. Tan grew to become one of the 1863 building godowns for the firm Paterson & Simonswealthiest and most influential Chinese in Johor with the on behalf of the Johor Government. Abu Bakar was solargest number (nine) of kangchu concessions and a post of impressed with the work that he commissioned Wong toKapitan created especially for him. This post in Johor was build the new palace, the Istana Besar, at Tanjung Puteria civil service appointment assisted by a treasurer, a chief (which would soon be renamed Johor Baru). With Abuclerk, and a chief inspector. Under Abu Bakar’s leadership Bakar’s trust, Wong rose to become the main Governmentand through combined effort, the people of Johor, both contractor and he completed at least 20 major publicold and new, grew the 1,200 plantations and 15,000 works projects, including the splendid state mosque (nowworkers of the 1860s to some 100,000 Chinese working on the Sultan Abu Bakar Mosque) as well as other landmarkplantations that together accounted for the largest supply buildings that have since come under heritage protection.of pepper and gambier in the world by 1911. Abu Bakar was careful to cultivate friendships with otherAbu Bakar also created a local civil service staffed by communities as well, the most notable of which wasprominent Malay meritocrats, which would set the the influential Hadhrami community. Syed Mohammedfoundation for Johor’s domination of Independence politics Alsagoff (1836–1906) was a key member of this group.later, and it was through this system that the families of The grandson of the patriarch Syed Abdul Rahman, whoOnn Ja’afar, Dr Ismail Abdul Rahman and others would came out to Singapore as a spice trader in 1824, Syedrise to prominence. However, Abu Bakar remained acutely Mohammed was a wealthy member of the colonial upperaware of the importance of the Chinese community in the class, a great philanthropist, and Consul-General for Turkeydevelopment of his state, and so he included two Chinese in Singapore. The trust Abu Bakar placed in him broughtin his 24-member Council of State, one of whom was his him land concessions in Nong Chik, Johor Baru, and sometrusted official Tan Hiok Nee. 14 square miles at Kukup where on his newly established Constantinople Estate Syed Mohammed would cultivateForging collaborations rubber, sago, pepper and more, as well as print his own banknotes which uniquely featured lettering in Jawi,Abu Bakar also encouraged the involvement of many Chinese and English.Malays in partnership with the Chinese in developing the15 ISKANDAR MALAYSIA - FIVE-Year Progress Report
  16. 16. ISKANDAR MALAYSIA - CONTINUATION OF A HISTORY AND TRADITION OF PROGRESS CHAPTER 1 Syed Mohammed was not the only member of the Arab his greatest contribution, however, was the state’s 1895 community to help develop Johor. For example, Syed Constitution—the first in Malaya—which established Abdullah Umar, Syed Junid Umar and Syed Abu Bakar of a constitutional monarchy. This development was the al-Junids, together with Syed Salim Mohsain al-Attas particularly noteworthy in that it bucked the trend of the were licensed and provided tax incentives to mine tin in other Malay states, which went deeper into Muslim and Ayer Puteh. There is also record of an al-Tawi being granted customary law in response to increasing British influence. a kangchu concession to open up plantation land in Skudai Indeed the Constitution would prove so successful that Ulu, and an al-Khatib likewise in Tebrau. While the 1911 it would later serve as the model for the other states Census placed the Arab community in Johor at a small of Malaya—but even here Johor remained different: the Undang-Undang Tubuh Negeri Johor (literally, Laws Embodying the State of Johor), unlike the conventionalThe Maharaja of Johor term “Perlembagaan”, showed Johorean nationhood to be legitimate only under the operation of law. Drafted by As Sultan Abu Bakar registered success Dato’ Amar diRaja Abdul Rahman Andak at the command after success, his political influence grew of the Sultan, the Constitution also declared that no not only within the colonial community subject of Johor should be bound to any Sultan who ceded but throughout the world. In the course of the integrity of the state to a foreign power. This implied his reign he became a close personal friend of Queen Victoria and leading English a contractual duty that was to become a major point of nobles, and elsewhere he was very contention during the Malayan Union protests after the welcome in the courts of Emperor Meiji of end of the Second World War. Japan, Emperor Franz Josef of Austria, PopeLeo XIII, Sultan Abdulaziz of Turkey, King Kalakaua of Hawaii, and The people of Johor argued that entering the Unionmost of all Guangxu the Emperor of China, who was strongly would, according to the Constitution, endanger theimpressed by Abu Bakar’s support for the Chinese of Johor. sovereignty of the state. It would be leading JohoreansThis aroused the professional jealousy of the Sir Frederick Weld, such as Dato’ Abdul Rahman Yassin (the father of Drthe Governor of the Straits Settlements, and Weld sought Ismail), Dato’ Sulaiman Abdul Rahman (Dr Ismail’shard to bring Johor into the colonial fold by imposing on her a brother), Dr Awang Hassan (later Tun and GovernorBritish Resident who would be in complete control of the state’s of Penang), and Dato’ Onn Ja’afar who would organiseadministration. Abu Bakar resisted this move through skilfulmanoeuvring: proclaimed Maharaja of Johor in 1868, he was now the first resistance to the Malayan Union. And it(in 1885) recognised as Sultan of all Johor by Queen Victoria. This would also be in Johor Baru—at the Istana Besar ofmasterstroke gave him considerable moral authority and allowed Sultan Ibrahim (the son of Sultan Abu Bakar)—thathim to maintain the state’s sovereignty and independence from UMNO would come into being on 11–12 May 1946.Britain. It is noteworthy that Johor, the Malay kingdom closest tothe seat of British colonial power in the region, managed to resist Open to allincorporation into British Malaya until 1914, and it was the laststate to do so. And yet these leaders were not motivated merely by narrow considerations of nationalism. The young Dr Ismail 699 people, they more than made up for that in industry, wrote at the time that “Johor, I suppose, is still under enterprise, hard work and success. Several families, such Military Occupation. When the Civil Administration takes as the Alsagoffs, al-Attas’ and Alaydrus’, would over time its place again, the old order must go. People, irrespective become connected to the royal family by marriage, and of nationality and colour must be judged according to their many, such as Datuk Sheikh Abdullah Ahmad Bakhbereh own ability and only then can peace be assured.” (popularly known as Datuk Shake), would make strong marks Malaysian on culture and society later in history. Dr Ismail’s family possess the values and outlook typical of Johoreans. The best friend of his father, Dato’ Abdul Driven by innovation Rahman, was the Chinese medical doctor Cheah Tiang Eam, and it would be through Cheah’s daughters Eileen and As Sultan, Abu Bakar quickly instituted several innovations Joyce that Dr Ismail would in turn meet his best friends such as postal and judicial systems as well as the Royal Philip and Robert Kuok (who married the two sisters). Johor Military Force (or Timbalan Setia Negeri). Perhaps The Abdul Rahmans, Cheahs and Kuoks were in turn close ISKANDAR MALAYSIA - FIVE-Year Progress Report 16
  17. 17. friends with the Puthuchearys (two of whom, James and Continuing the traditionDato’ Dominic, were founders of the People’s ActionParty), as well as Dato’ Onn. It was Onn, for example, Therefore, it can be argued that Iskandar Malaysia is awho tipped off the third Kuok brother, William, that the continuation of Johor’s history of being at the forefrontBritish authorities were after him, and it would be James of change. Nearly half a century after Merdeka, itPuthucheary who would bring the sad news of his death represents a significant thread to be added to Johor’s richback to the Kuok family. socioeconomic tapestry, tapping into the state’s heritage of openness as well as leveraging on South Johor’s strategicPhilip Kuok (later Tan Sri) would serve as the Malaysian location at the southernmost tip of continental Asia.Ambassador in Germany, the former Yugoslavia,Netherlands, Belgium, Luxembourg and Denmark. Tan Clearly, it is well-positioned to take advantage of globalSri Robert Kuok—long before he became the “Sugar developments since the new millennium. The world hasKing”—would serve his nation in many capacities, come full circle over the past millennia. From 10th to thehelping to establish the Malaysian International the 15th century AD, China was the economic powerhouseShipping Corporation and Malaysian Airlines, amongst of the world until its position was usurped by the Westernother things. The two brothers built a massive world due to the isolationist policies pursued during theworldwide business conglomerate and both would Qing Dynasty. Today, China, along with India – the tworemain deeply committed to a multiracial Malaysia. countries with more than one billion in population and a history of great empires behind them – are reclaimingAt the forefront of change their global economic and political leadership. At the same time, the West is imploding in the aftermath ofRegardless of their accomplishments, these individuals the worst financial crisis since the Great Depression.are but threads in the great tapestry that is the socialand cultural milieu of Johor. The state has produced The centre of economic gravity is shifting inexorablygenerations of Malayan and Malaysian leaders in politics, to the East, along with the formation of a ‘New Silkgovernment, commerce, society, sports, academia and the Road’ stretching from the Philippines to Africa. Thearts, and they have been able to do so because of a breadth New Silk Road is based on maritime, rather than theof vision formed over centuries of embracing difference overland routes of old, and Johor (through Iskandarfor the common good. Throughout history, and even in Malaysia) with its maritime trading history, has thethe “pre-history” of the Malay Peninsula, Johor has been potential to be a significant part of this new route.a gateway to international trade and cultural exchange. Regionally, Iskandar Malaysia is at the centre of SoutheastWhether it was known as Palandas, Gangga Ayu, Lo-Yue, Asia, located in between the Malacca Straits and theGaluh or Jauhar, the state has been at the forefront of the South China Sea, with links to the Indian Ocean.Peninsula’s social, political and economic development. Itis this unique perspective that continues to enrich Johor’s Indeed, Iskandar Malaysia possesses strategic positioningstrong traditions of openness and understanding. and economic potential. Johor has strong economic and historical links with neighbouring Singapore, and thisSultan Abu Bakar and those like him could not have can be seen in the 50,000 commuters who travel fromexisted in isolation, and even if they did the measures they Johor Bahru to Singapore daily for work and education.introduced—revolutionary at the time—could not have Together, Iskandar Malaysia and Singapore form ataken root in unfertile soil. In more modern times, the birth conurbation of six million people, three maritime ports,of Malay nationalism was already tempered by Johorean two airports as well as overland links to the rest of Asia.maturity when it spread to the rest of the country, and itis this Johorean maturity and welcoming of difference that With these key advantages, Iskandar Malaysia hasgave momentum to the multiracialism that has formed the opportunity to re-establish Johor’s economic andthe bedrock of all Malaysian politics even to this day. In historical leadership within the region, by keeping to theIskandar Malaysia today, as in Johor throughout the ages, it traditions of openness and pragmatism and leveragingis the diversity of the many that gives strength to all. on existing strengths as well as develop complementary advantages with Singapore and the rest of the region.17 ISKANDAR MALAYSIA - FIVE-Year Progress Report
  18. 18. ISKANDAR MALAYSIA - CONTINUATION OF A HISTORY AND TRADITION OF PROGRESS CHAPTER 1THE ISKANDAR MALAYSIA PREMISEIskandar Malaysia, with an area of 2,217 square-kilometers, These foundations for development are:is three times the size of Singapore and is the single largestdevelopment project ever to be undertaken in the region. 1. Nation BuildingAs envisaged by the Comprehensive Development Plan Development is consistent in spirit with national and(CDP) launched in 2006, Iskandar Malaysia will be a place state level plans and aspirations while aspiring to drivewhere living, entertainment and business would seamlessly further innovation and reforms in the nation buildingconverge in a vibrant and sustainable metropolis of standing. A great deal of careful planninghas also gone into ensuring that the development would 2. Growth and value creationbe sustainable, taking into consideration the direct andindirect needs of its respective stakeholders. Development emphasises growth, productivity and value creation in line with globalisation and increasedAs part of the Indonesia-Malaysia-Singapore Growth competition.Triangle, Iskandar Malaysia’s strategic location andproximity to some of the world’s most dynamic economies 3. Equitable and fair distribution amongis a key differentiating factor for the development. Located stakeholdersat the cross-roads of the important East-West traderoutes, it is mid-way between the region’s two economic Development is consistent with the tenets of growthpower-houses, China and India, and is easily accessed by with equity, to ensure that the local and Bumiputeraair, land and sea. Other advantages include a multi-lingual population in particular participate in the growth andand educated work-force and a vast land-bank. It is also value creation in a meaningful manner.positioned as an international metropolis to decrease tradebarriers and increase human mobility. The five pillars in the strategic framework for Iskandar Malaysia is a broad-based approach that encompassesSince its official launch in November 2006, the vision the regulatory, social, physical, infrastructure andof Iskandar Malaysia has gone off the drawing board commercialisation areas.and is rapidly being transformed into a next generationmetropolis. With Phase 1 (2006-2010) completed, a 1. International Rim Positioningcritical mass has been established with the timely deliveryof major infrastructure and several iconic investment The development of a regionally and globally-projects. Iskandar Malaysia has now progressed into Phase competitive Iskandar Malaysia propelled by efficiency2 of the Comprehensive Development Plan. and innovation besides being factor and investment- driven.Consistent with the Iskandar Malaysia vision of becoming“A Strong, Sustainable Metropolis of International 2. Establishing hard and soft infrastructureStanding”, the development of the region is being enablersundertaken upon five strategic pillars anchored in threefoundations, as identified by the CDP. The required infrastructure includes physical infrastructures such as roads, airport and ports, and public utilities, as well as security, river cleaning and proper sewerage. In addition, soft infrastructure such as fiscal and financial incentives, human capital, efficient and business friendly institutions are necessary. ISKANDAR MALAYSIA - FIVE-Year Progress Report 18
  19. 19. 3. Investment in catalyst projects CHART 1.1: Catalytic projects to help spur further economic TRAVEL TIMES BETWEEN Iskandar Malaysia activities in the region. This encompasses projects AND REGIONS in logistic services, financial services, health and education services, agricultural, manufacturing, leisure and tourism, creative services and emerging technologies.4. Establishing a strong institutional framework and the creation of a strong regulatory authority The creation of an Authority to plan, facilitate approvals through a one-stop centre and address social development. The Authority is also tasked to ensure that approval times and government delivery systems especially in respect to investments are to be significantly improved in order to be internationally competitive. Over a 20-year period until 2025, the region is expected to5. Ensuring socio-economic equity and buy- record Gross Domestic Product growth of 8% per annum, in from the local population resulting in nominal GDP of USD93.3 billion in 2025 and GDP per capita of USD31,100. A total of 1.43 million jobs The people in Iskandar Malaysia fully benefits from will be created for a population that is expected to reach the region’s development, through property and three million in 2025. The rest of Johor will also benefit equity ownership, local and Bumiputera participation with significant spillover effects. in various business and economic activities, income generation programmes for the youth and abundant The successful development of Iskandar Malaysia will employment opportunities generated from the enable the people within the region and its surroundings development within the region. to enjoy a better quality of life, with environmental preservation, learning and knowledge, social cohesion, Via a development approach that is consistent with better income and wealth distribution, and greater the five strategic pillars and grounded upon the opportunities for future generations to advance through three foundations, it is envisaged under the CDP that better education, healthcare, employment and Iskandar Malaysia will make a significant impact on business potential. several key economic fronts.19 ISKANDAR MALAYSIA - FIVE-Year Progress Report
  20. 20. 21 ISKANDAR MALAYSIA - 5 Year Progress Report
  21. 21. CHAPTER 2:FIVE YEARS OF ISKANDAR MALAYSIA –HIGHLIGHTS AND MILESTONESIskandar Malaysia has been identified as one of the key catalysts and high-impact developments under theNinth and Tenth Malaysia Plans. The CDP provides a framework for the comprehensive development ofIskandar Malaysia in a holistic and sustainable fashion, placing emphasis on creating a healthy investmentclimate that is attractive to local and foreign investors.To achieve these aspirations, Iskandar Malaysia would need to generate sufficient momentum bysustaining a GDP growth of 8.0% annually up to the year 2025. A total investment of RM383 billion(USD115.7 billion) would be required over the 20-year period. The target of RM47 billion for first phase hasalready been achieved, with total committed domestic and foreign investments amounting to more thanRM70 billion.Since its launch in 2006, Iskandar Malaysia has progressed rapidly, with several key developmentscompleted and many more nearing completion. Progress is being achieved across multiple sectorsincluding education, healthcare, leisure and tourism, property, creative and retail. In addition, criticalenablers such as physical infrastructure, safety and security, public housing, and social developmentinitiatives are also moving forward.The growth over the past five years has put Iskandar Malaysia on a strong footing in its second phase ofdevelopment (2011 to 2015), with 2012 seen as a banner year with more catalyst projects coming onstream. While much has been achieved, more will need to be done to drive Iskandar Malaysia forward. ISKANDAR MALAYSIA - FIVE-Year Progress Report 22
  22. 22. the following is a timeline of highlights and milestones overthe five years since Iskandar Malaysia’s inception in 2006. Iskandar Regional New Iskandar Malaysia brand is launched Development Authority by the Prime Minister of Malaysia (IRDA) is established via an Iskandar Malaysia (then known as the South Act of Parliament, New road infrastructure projects Johor Economic Region) is officially launched IRDA ACt 2007 for Iskandar Malaysia worth a total by His Royal Highness the Sultan of Johor of RM3 billion is announced by the IRDA holds inaugural meeting, Menteri Besar of Johor co-chaired by the Prime Minister of Comprehensive Malaysia and the Menteri Besar of An allocation of RM200 million Development Plan for Johor to implement public housing in Iskandar Malaysia is Iskandar Malaysia is announced by released the Prime Minister of Malaysia the Malaysian Six Iskandar Malaysia Iskandar government announces development blueprints out of Investment a range of financial the 32 planned are completed Berhad, incentives, including the catalytic developer tax exemptions, for Medini Iskandar Malaysia for Iskandar Malaysia, is companies that invest in is launched incorporated specific sectors in Iskandar Malaysia 2006 2007 2008 Phase 1 of SiLC in Nusajaya is launched Agreement to develop Newcastle University campus is signed Agreement to develop LEgoLAND Malaysia is signed Construction of Coastal Highway commences Work on Perumahan Rakyat Iskandar Malaysia (PRISMA) public housing project begins Iskandar Malaysia records RM16 billion in committed investments; cumulatively, more than RM41 billion in investments have been committed since its launch23 ISKANDAR MALAYSIA - FIVE-YEAR PRogRESS REPoRt
  23. 23. FIVE YEARS OF ISKANDAR MALAYSIA – HIGHLIGHTS AND MILESTONES CHAPTER 2 Agreement for University of Southampton campus is signed Kota Iskandar, the new Johor State EduCity stadium Five Iskandar Malaysia development administrative centre, and sports complex blueprints are completed. In total 21 is officially opened construction begins out of the 32 blueprints planned have been completed Agreement to develop Agreement for Pinewood Iskandar Netherlands Maritime Newcastle University Malaysia Studios is Institute of Technology is campus is launched signed signed Johor Premium Agreement for Marlborough Agreement for Outlets is College Malaysia is signed Gleaneagles launched Medini Hospital Agreement to develop is signed PRISMA, the benchmark- Puteri Harbour Family setting public housing Indoor Theme park is Columbia Asia Hospital project in Iskandar signed commences operations Malaysia, is launched 2009 2010 2011 Agreement to develop 12 Community Police Johor Premium Outlets Posts established signed Agreement for Raffles University Iskandar is Bas Iskandar signed Malaysia service is launched 11 drainage projects and 5 river- cleaning projects completed 10 Iskandar Malaysia development blueprints are completed. In total Iskandar Malaysia records RM13.9216 out of the 32 blueprints planned billion in committed investments; have been completed cumulatively, more than RM69 billion in investments have been committedIskandar Malaysia records RM13.81 billion since its launch in committed investments; cumulatively, more than RM55 billion in investments Khazanah Nasional and Temasek Holdings have been committed since its launch announce a joint-venture to develop an iconic wellness township project ISKANDAR MALAYSIA - FIVE-Year Progress Report 24
  24. 24. 25 ISKANDAR MALAYSIA - 5 Year Progress Report
  25. 25. Chapter 3:THE FLAGSHIP ZONESA PROGRESS UPDATEThe Iskandar Malaysia region is located in south N JOHORJohor and covers Johor Bahru District as well as W Eseveral Mukims – Jeram Batu, Sungai Karang, SSerkat – and Pulau Kukup in Mukim Ayer Masin,that are all within the district of Pontian. Itcomprises five component areas designatedas Flagship Zones A to E, with Johor Bahru, thestate capital of Johor, located in Flagship Zone A.The Flagship Zones were formed based ontheir roles as developmental focal points, withemphasis on further strengthening existingeconomic clusters as well as diversifying and Key landmarks and developments within each flagship zone are as follows: FLAGSHIP A FLAGSHIP B FLAGSHIP Cdeveloping targeted growth sectors. Iskandar JOHOR BAHRU CITY CENTRE NUSAJAYA WESTERN GATE DEVELOPMENTMalaysia’s nine key economic clusters are • Central Business District • Danga Bay Integrated • • Kota Iskandar Puteri Harbour • • Port of Tanjung Pelepas Tanjung Bin Power Plantfinancial advisory and consulting, creative Waterfront City • Medini • Malaysia - Singapore Second Link • Upgrading of Central Business District • EduCity • RAMSAR World Heritage • Tebrau-Plentong Mixed Development • Southern Industrial Logistic • Tanjung Piai - Southernmost Tipindustries, logistics, leisure and tourism, • Customs, Immigration and Quarantine Complex (CIQ) • Johor-Singapore Causeway Clusters (SiLC) • Afiat Health Park • International Destination Resort of Mainland Asia • Free Trade Zoneeducation, healthcare, electrical and electronics, • Lido Boulevard • Conservation and Heritage Zones • Housing and Residential Projectspetrochemical and oleo-chemical, and food and FLAGSHIP D FLAGSHIP Eagro processing. EASTERN GATE DEVELOPMENT SENAI DAI • Tanjung Langsat Industrial Complex • Senai International Aiport • Tanjung Langsat Port • Senai Cargo HubCollectively, developments in the Flagship • Johor Port • Senai High-Tech Park • Pasir Gudang Industrial Park • Sedenak Industrial Park • APTEC (Lakehill Resort City) • MSC Cyberport CityZones provide a testimony to the progress • • Johor Technology Park Johor Premium Outlets®that has been achieved in Iskandar Malaysiasince its inception. The cumulative investments that have been committed to various projects in theFlagship Zones have ensured that Iskandar Malaysia has exceeded the investment target set for the firstphase of its development. In addition, several key catalyst projects have been completed or are nearingcompletion, while positive progress has been made on the delivery of critical enablers such as roadsand safety. Important institutional frameworks are in place and most significantly, the strengthening ofbilateral relations between Malaysia and Singapore puts Iskandar Malaysia in prime position to leverageon its proximity and socioeconomic links with its southern neighbour. ISKANDAR MALAYSIA - FIVE-Year Progress Report 26
  26. 26. Source: CDP 2005 RM OVERVIEW OF PROGRESS 10,000 9,716 Billions 80 TOTAL: 27,299 69.5 9,000 Rising investments Of 70 total committed investments for the first phase, the 8,000 59% were domestic investment while foreign direct 60 55.6Malaysia total of over RM75 billion in investments from both A Economy 7,000 investment (FDI) contributed to the remaining 41%, 50 26.7 domestic and foreign sources have been committed to 6,094 making for a healthy mix of sources 41.8 of funds. The 23.7 5,910 40 Iskandar Malaysia up to the first half of 2011. For the 6,000 contribution of domestic investments into Iskandar 14.5 region’s first phase of development, which ran from 2006 ICT & Malaysia has shown25.8 30 a steady rise from 2008, when 21.7 5,000 Health Educational Financial 9.1 Tourism to 2010, cumulative services services committed investments of Creative services about it made up 45% or RM18.9 billion of the cumulative 20 RM69.5 billion were secured. This was approximately industries 11.3 11.9 then, to 54% or RM30.1 billion5.1 2009 when it 21.8 in 4,000 1.0 16.5 3,257 148% above target of RM47 billion that had been set for 10 8.2 surpassed total cumulative foreign direct investments. 5.5 7.1 3,000 5.8 5.8 6.8 6.3 6.3 that period. It is a commendable achievement given that 0 the global economy underwent severe financial distress in 2,000 CHART2006 3.2: Breakdown2008Cumulative (Dec) 2007 of 2009 2010 2008 and 2009. During those two years, Iskandar Malaysia 967 Investments by Domestic andOthers Government Utilities, Tourism and Foreign) secured investment commitments to be added) 1,000 (Four new “Pillars” of RM16 billion and 129 124 600 468 Sources 2008-2010, Year-On-Year Properties Manufacturing Committed investment 34 RM13.8 billion respectively. 0 RM ica - o & Fo uris & ro rs ion l e tic are em ro cia tiv Fin l Le nic od m he Billions Ag ctr al To re gis ch Pet at hc an ea Electric Ot isu CHART 3.1: Cumulative Investments 2006-2010, 80 uc & Lo alt Cr & Ed Ele He eo Year-On-Year 70 Foreign Ol 60 Local RM 28.8 Billions (41%) 80 50 25.5 69.5 40 (46%) 70 30 22.8 60 55.6 (55%) 26.7 20 50 30.1 40.7 41.8 18.9 (54%) (59%) 23.7 10 40 (45%) 14.5 0 30 25.8 21.7 2008 2009 2010 (Dec) 9.1 20 11.9 21.8 Source: IRDA, Khazanah, IIB, MIDA & corporate annoucement 11.3 5.17 1.0 16.5 10 5.5 7.1 8.2 5.8 5.8 6.8 6.3 6.3 0 About RM30 billion of the RM75 billion in committed 2006 2007 2008 2009 2010 (Dec) investments have been actualised. This has seen a number Government Utilities, Tourism and Others of important developments getting off the ground, with Properties Manufacturing Committed investment several completed or approaching completion, across RM Source: IRDA, Khazanah, IIB, MIDA & corporate annoucement the Flagship Zones. They include catalyst projects in Billions the education and leisure and tourism sectors, key 80 infrastructure such as upgrading works on existing roads 70 Foreign Committed investments during the first phase went and new highways, and other projects in sectors such as 60 Local into various sectors including manufacturing, property healthcare. 28.8 development, utilities, leisure and tourism, as (41%) as 50 well government spending. The Federal Government has 25.5 Boost in employment 40 (46%) to December 2010, allocated a total of RM6.3 billion up 30 22.8 specifically for key infrastructure projects in Iskandar (55%) The rising investments in Iskandar Malaysia have Malaysia. For the same period, the bulk of committed 20 40.7 correspondingly generated increased economic activity 30.1 investments from the private (54%) have been in the 10 18.9 sector (59%) and hence, demand for workers. More than 20,000 manufacturing sector which drew in 38.7% and property (45%) employment opportunities have been created over the 0 development 2008 accounted for 31.4%. 2010 (Dec) which past five years in Iskandar Malaysia’s targeted economic 2009 sectors. Nearly 10,000 jobs are in the electrical and 27 ISKANDAR MALAYSIA - FIVE-Year Progress Report