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Monday, August 27, 2012

Demand for industrial properties on the rise in Iskandar Malaysia

JOHOR BARU: Demand for industrial properties in Johor is likely to remain positive based on the state's position as one of the top investment destinations in the country.

Iskandar Regional Development Authority (Irda) chief executive officer Datuk Ismail Ibrahim said the current situation would create demand for industrial properties especially in Iskandar Malaysia.

“Property developers should venture into industrial park projects to cater for the demand apart from the residential properties,” he told StarBiz.

Ismail said Johor was still strong in the manufacturing sector and remained one of the top three destinations for foreign direct investments (FDI) in Malaysia.

Statistics from the Malaysian Industrial Development Authority showed that it had approved 929 manufacturing-related activities for Johor from 2007 until April this year with RM41.48bil in investment.

Of the figure, RM14.99bil (14.4%) came from the domestic investors and RM26.49bil (15.3%) from foreign investors.

He said the manufacturing sector was the top recipient of the cumulative committed investments in Iskandar Malaysia from 2006 until June 30.

It received RM32.71bil contributing 34% out of Iskandar Malaysia's total cumulative committed investments of RM95.45bil.

The property sector came in second with RM29.80bil followed by utilities (RM9.52bil), government (RM7.31bil) and petrochemicals (RM5.10bil).

Other sectors are ports and logistics (RM3.74bil), tourism (RM2.30bil), healthcare (RM1.60bil) education (RM1.55bil), creative (RM0.40bil) and others (RM1.69bil).

“With Iskandar Malaysia moving on the right direction, local and foreign investors are now turning their gaze on us,” added Ismail.

Johor's proximity to Singapore was an added advantage as many of the small and medium enterprises (SMEs) and multinational corporations (MNCs) were looking elsewhere to relocate their operations.

“Logically, Johor Baru is the best choice for many of them as they could have the best of both worlds in two countries,” he said.

He said new industrial parks within Iskandar Malaysia such as Senai Hi-Tech Park, Setia Business Park, Tanjung Langsat, IOI Kempas Utama and Southern Industrial Logistics and Clusters@Nusajaya were doing well.

Ismail said to-date Singapore was the largest foreign investor in Iskandar Malaysia with total cumulative investments of RM4.56bil as at Dec 2011.

Ismail said SMEs from Japan and MNCs from Europe, the United States and those based in China also had shown interest to relocate their operations to Iskandar Malaysia.

He said Johor's manufacturing sector received a shot in the arm with the Government planning to transform Johor into a leading electronic manufacturing services hub in the country and the region.

By The Star

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