PM Lee, Najib laud progress in Iskandar

PUTRAJAYA — About eight years after it was established, Iskandar Malaysia is shaping up to be an important jigsaw piece in the joint effort by Singapore and Malaysia to drive their respective economies forward.

Yesterday, as they underscored how Iskandar could complement Singapore’s economic activities, Prime Minister Lee Hsien Loong and Malaysian Premier Najib Razak declared their satisfaction with the progress of joint projects and initiatives in the economic region. They also reiterated its strategic importance to both countries and contribution to bilateral cooperation and economic integration.

Noting the tangible benefits that Iskandar will bring to both countries, Mr Lee said: “The great advantage of Iskandar is that it’s across the Straits of Johor, and that means you can tap on what Singapore offers, in terms of infrastructure, in terms of financial services, in terms of industrial base and in terms of complementarity.”

He said the economic region provides options for firms based in the Republic but are looking to expand, as well as those that Singapore cannot accommodate due to its land constraints.

“We are upgrading our manufacturing (sector), ... our economy, but there are many projects which want to come, which we are not able to accommodate in Singapore,” he said. “When we have a good project, we can talk to Iskandar or talk to MIDA (Malaysian Investment Development Authority) and they can look at it and see whether it fits into Malaysia’s plans.”

Agreeing, Mr Najib said: “(To) put it simply, businesses will decide on the basis of the most competitive place to invest in and to do business ... and if we can offer the advantages at more competitive rates, certainly it will be more attractive (for Singapore businesses).”

He added: “From our perspective, certainly, it’s going to stimulate investment ... It’s going to be good for Iskandar’s development and Malaysia as a whole. So, it’s what you would call a classic win-win situation.”

The economic region’s development is closely watched by investors. The Industrial Cooperation Work Group under the Malaysia-Singapore Joint Ministerial Committee for Iskandar has been developing industries with synergistic activities on both sides of the Causeway.

A statement issued by Mr Lee and Mr Najib following their meeting cited the decision of United Kingdom-based metal-stockist Howco Group to build a US$20 million (S$25.2 million) heat-treatment facility in Iskandar to complement its Singapore operations.

The two leaders also welcomed the development of the new Nusajaya Tech Park, which is a joint venture between Ascendas and UEM Sunrise. The 210ha facility will cater to both multinational corporations and local small and medium enterprises in industries such as precision engineering, electronics, light and clean manufacturing, as well as warehousing and logistics. The tech park is expected to create jobs in high-tech industries.

Singapore and Malaysia have also embarked on iconic projects spearheaded by Temasek Holdings and Khazanah Nasional. The Marina One and DUO integrated projects in Singapore are on track for completion in 2017, while the Afiniti Medini project in Iskandar is expected to be completed by the end of next year. The leaders noted that the market response to these projects has been very encouraging.