Johor to gain most of investment flow with improved Malaysia-Singapore ties

18 June 2010 , By The Star

Johor will benefit the most in terms of direct investment flows from Singapore to Malaysia following the improvement in bilateral ties between the two countries.

Malaysian Investment Development Authority (Mida) senior director (investment) Phang Ah Tong said Johor would always be the preferred destination for Singaporean investors due to its close proximity with the republic.

He said of the total RM14.95bil investments by Singaporean investors to date, RM6.9bil was invested in Johor.

“We are likely to see more investments from Singapore in Johor in the coming years especially within Iskandar Malaysia,’’ Phang told a press conference after a joint briefing with Iskandar Regional Development Authority on investment opportunities in Iskandar for a 90-member delegation from the Singapore Business Federation.

The delegation, which was on a one-day visit to Iskandar, was led by council member Robert Yap, who is also chairman of Asean Business Group.

Phang said while the manufacturing sector currently comprised 70% of Singapore’s total investment in Johor, Mida would like to see the republic invest more in the services sector, notably in the healthcare, finance, logistics and creative industries in Iskandar.

Yap said many Singapore companies had in the past 10 to 15 years “skipped” Malaysia for several reasons including concerns regarding safety and security, and flocked to other countries such as China, Indonesia, India and Vietnam.

He said now was the best time to come to Malaysia following the serious commitment shown by Prime Minister Datuk Seri Najib Razak and Singapore Premier Lee Hsien Loong to improve relations between the neighbours.

Yap said their joint announcement that Khazanah Nasional Bhd and Temasek Holdings Ltd would form a 50:50 joint venture company to undertake an iconic wellness township project in Iskandar augured well for the investment climate between Malaysia and Singapore.

“We believe many big investors from Singapore are taking the cue from the Khazanah-Temasek joint-venture and will invest in Malaysia,” he said.