Cluster upgrading and development is therefore a major objective of Iskandar Malaysia development policy and strategy. The main thrust is the transformation of truncated and embryonic clusters into a dynamic set of clusters able to generate its own innovation and increase productivity.

The main strategic component of this thrust is the enhancement of the network cohesion in each cluster so that all firms and institution in the private and public sectors connect and coordinate smoothly their demand and supply requirements.

An important initiative to attain this systemic cohesion is the formation of cluster associations for each of the major industrial clusters.