More Malaysian firms to set up in Singapore

31 May 2010 , By Business Times

TAN SRI Azman Mokhtar, managing director of Malaysian state investment company Khazanah Nasional Bhd, comments on plans to develop a rapid transit link between his country’s southern state of Johor and neighboring Singapore.

He also comments on an agreement between the two countries’ prime ministers to jointly develop land. Malaysia agreed to relocate its Singapore train station in exchange for land in the island-state that will be developed by their government investment companies, Khazanah and Temasek Holdings Pte.

Azman made these comments to reporters in Kuala Lumpur today.

On a planned rapid rail link by 2018:
“The issue of connectivity is a very important one because when communities and cities start to connect, then you can start to get all the benefits at various levels - at the people level, at the business level and at the government-to-government level.

“At least about 80,000 Johoreans or Malaysians travel every morning and come back every evening to go to work and to go to school. These people will also benefit. In the immediate term, I think there are increased bus services. Taxi services are also greatly liberalized, for example.”

On Singapore investment in Johor:
“With this breakthrough, we are already seeing investments from Singapore into Iskandar Malaysia. I think Singaporean companies see the strong economic logic of moving to Iskandar Malaysia. The whole thing will be complementary.”

On Malaysian investment in Singapore:
“On some of the sites of these developments I think there will be a Malaysian visible presence. Already in Singapore you can see Menara Maybank, for example. It is very appropriate for our largest bank. After that our other companies which are starting to become regional companies will be rightly placed in a regional center like Singapore.”

On reaching this agreement:
“The leaders have been careful. The discussions have taken quite some time over the last one or two years. It is over the last one year that it has accelerated to the point where we are able to land without compromising on any position in particular. Recognize that this is a positive-sum game. This is a very important point. It is not a case you win I lose, or I win you lose.”

On joint land development:
“Those lands are very valuable. We have to develop it sensitivity, properly and commercially.”

On agreeing a valuation on the land:
“The public really wants to know more details. Within a month, Prime Minister Lee will come to Kuala Lumpur. I have already sat down with my counterparts in Temasek. Both sides have a strong desire to move forward, while respecting the sovereignty of both sides. The proof of the pudding will be when we strike the deal within a month. I think the sense of urgency is very clear.”

On the benefits of closer cooperation:
“Once we have cross-investments in a proper way where there is respect on both sides and it is complementary, this will help with the regional integration. In Asean as whole, we cannot afford to have our head in the sand when the world is moving. China and India are great opportunities for us. We are in the right neighborhood. We shouldn’t be looking at small petty things.”