Our "invasion" of Johore has begun. Soon Singaporeans will own southern Johore
Rise in Singapore's investments in Iskandar Malaysia
SINGAPORE'S cumulative investments in Iskandar Malaysia increased by more than a third in just over the first half of this year. The republic remains the leading foreign source of capital for the Johor-based economic zone with one out of every six dollars of foreign capital that flows in there coming from Singapore.
As at July this year, Singapore's total cumulative investments in Iskandar Malaysia were at RM6.15 billion (S$2.46 billion), compared to RM4.56 billion as at December 2011, the Iskandar Regional Development Authority (IRDA) told BT yesterday.
The latest figures show that Singapore's total committed capital flow into Iskandar Malaysia grew by RM1.59 billion, or 34.9 per cent, in the first seven months of this year. The bulk of Singapore's investments were in traditional sectors, as IRDA reported that 77 per cent of Singapore's total cumulative investments in the zone were in manufacturing alone. The rest of the capital from Singapore went into the healthcare, education and property sectors.
The significant increase in Singapore's investments in Iskandar Malaysia from January-July 2012 is in line with the region's strong showing in attracting capital this year. Ismail Ibrahim, chief executive of IRDA, announced yesterday that Iskandar Malaysia recorded a total cumulative investment of RM15 billion this year alone.
Nearly a third of this amount came in the third quarter of 2012 itself, as BT's earlier reports show that in the first six months of the year, Iskandar Malaysia had secured RM10.67 billion of new committed investment.
Overall, Iskandar Malaysia recorded a total cumulative investment of RM99.79 billion in various sectors, IRDA reported yesterday, with 42 per cent of the total committed investment being realised as at September this year.
"We have been very aggressive in our promotional efforts to attract more investors into Iskandar Malaysia. I am very happy to note catalytic projects such as Legoland Malaysia have also helped reinforce the value proposition of Iskandar Malaysia on the global platform," said Mr Ismail. "We are confident that we will soon breach the RM100 billion mark."
Of the total cumulative committed investment mentioned, 63 per cent or RM62.7 billion are domestic investments, with the remaining 37 per cent coming from outside Malaysia. This means that Singapore's investments in Iskandar Malaysia account for 16.58 per cent, or one-sixth, of the total RM37.09 billion of foreign investments there.
According to IRDA, this made Singapore the largest foreign investor in the economic region as at July 2012, beating Spain and Japan respectively.
The latest data, according to Mr Ismail, also reflected the growing confidence of the local investments towards Iskandar Malaysia.
"In 2008, the ratio was 45 per cent domestic (sources of investment) and 55 per cent foreign (sources of investment). We see this shift as something positive and encouraging because while foreign investments continue to flow in, the domestic players are also ensuring they are not left behind," he said.
Out of the RM99.79 billion of cumulative investments, the manufacturing sector was the largest recipient of capital at RM33.36 billion, while the property sector was a close second with RM32.94 billion.
