Miti to create special SME unit to woo investors to Iskandar

06 August 2010 , By Business Times

THE International Trade and Industry Ministry will create a special unit for small- and medium-sized enterprise (SME) investors to attract their investments in Iskandar Malaysia.

Its minister Datuk Seri Mustapa Mohamed said Singapore-based SMEs are also important for Iskandar Malaysia, besides the larger companies from the island republic.

"There have always been Singapore-based SMEs that have operated in Johor and because of this we need to have a specialised unit in dealing with them.

"The ministry will focus its efforts in strengthening the SME investments, especially in Iskandar Malaysia to make it more systematic for both sides," he told reporters during the Malaysia Investment Development Authority (Mida) trade and investment mission in Singapore yesterday.

About 400 participants who were mainly Singapore Chinese Chamber of Commerce members, businessmen, investors as well as Malaysian government agencies attended the one-day event to explain on investment opportunities in Johor especially Iskandar Malaysia.

Mustapa said his ministry is eager to attract more Singaporean investors.

"By next year, we will see Singapore investments gaining momentum based on several concrete proposals that we already have.

"2010 is the year that we start planning and by next year (2011) we will implement the plans," he added.

He is upbeat about Singapore-based investments by then, which will also see Khazanah Nasional Bhd and Singapore's state investment arm Temasek Holdings working together.

Mustapa said the seminar was well-received especially after Malaysians had explained on the current political and economic changes in the country such as the New Economic Model (NEM), Government Transformation Plan (GTP) and also several bi-lateral issues that have recently been settled.

He said some Singaporeans are still unaware about changes that have taken place, but is confident they will be better focused towards trade and investments in Malaysia.

Meanwhile, Iskandar Regional Development Authority (Irda) chief executive Ismail Ibrahim said the definition of SMEs in Malaysia and Singapore are different. Hence, there is a need to standardise its application to attract investments from the island republic.

Ismail assured present and prospective Singapore SME investors that Irda will initiate certain measures to ensure that such investments in Johor will be done in a systematic manner.

On the overall investments in Iskandar Malaysia, he said as of the first five months of this year, the total figures stood at RM741 million, with RM221 million contributed by Singapore investors.