Iskandar Malaysia : Good practice for Special Economic Zone in Thailand.

Iskandar Malaysia : Good practice 

for  Special Economic Zone in Thailand.

The special economic zone of Iskandar Malaysia grew out of a 2005 government requested feasibility study by the Khazanah Nasional which found that the development of such a zone would be economically, socially and developmentally beneficial.^[3] The National SJER Planning Committee (NSPC), hearing Khazanah's findings, put it in charge of developing a sustainable, holistic approach to development in the region.^[3] Iskandar Malaysia was singled out as among the high-impact developments of the Ninth Malaysia Plan, put into action by the then Prime Minister of Malaysia (Abdullah Badawi) in March 2006 to cover the period of 2006 to 2010.^[4] In November 2006, the Prime Minister, Chief Minister of Johor,Abdul Ghani Othman and Khazanah revealed the Comprehensive Development Plan (CDP).

Iskandar Malaysia is modelled after the Pearl River Delta Economic Zone, it is envisaged to capitalize on its current synergies with Singapore as it aims to complement each other as an economic hub.

The development region encompasses an area of 2,217 square kilometers covering the city of Johor Bahru and the adjoining towns of Pontian, Senai, Pasir Gudang and the construction of a new administrative capital in Nusajaya. Johor Bahru District is included in its entirety, as are parts of the district of Pontian. Five local planning authorities have jurisdiction over the covered area, including Majlis Bandaraya Johor Bahru (Johor Bahru City Council), Majlis Perbandaran Johor Bahru Tengah (Johor Bahru Tengah Municipal Council), Majlis Perbandaran Pasir Gudang (Pasir Gudang Municipal Council), Majlis Perbandaran Kulai (Kulai Municipal Council), Majlis Daerah Kota Tinggi (Kota Tinggi District Council), and Majlis Daerah Pontian (Pontian District Council).

Flagship A: Johor Bahru City

Johor Bahru is the Central Business District and the State Capital of Johor. It is also the main gateway into and out of Singapore (via the Causeway).

The current key economic activities in Flagship A are financial services, commerce and retail, arts and culture, hospitality, urban tourism, plastic manufacturing, electrical and electronics (E&E) and food processing.

As of February 2008, land prices in Flagship A range from RM30 to RM150 (US$9 - US$45) per sq ft for residential use, and RM70 to RM280 (US$20 - US$45) per sq ft for commercial use.

In the future, a multi-modal terminal will be developed in Flagship A, as well as an MRT/LRT system connecting Johor Bahru City Centre to other areas in Iskandar Malaysia.

Key players in Flagship A include global financial institutions - Citigroup, HSBC and Kuwait Finance House, major manufacturers - YKK, Celestica, Lion Group, Sumitomo and Kerry’s Ingredients as well as local developers - Danga Bay Holdings, Pelangi, Mah Sing and Crescendo.

Flagship B: Nusajaya

Current key economic activities in Flagship B are focused on mixed property development, state & federal administration and logistics. Going forward, Flagship B would be the hub for creative arts and entertainment, medical facilities, educational institutions, tourism, biotechnology and hi-tech manufacturing. Hence, Flagship B offers a wide range of investment opportunities for investors to participate in the development of Iskandar Malaysia, either by embarking in joint-venture developments or acquiring parcels of prime development land in Nusajaya.

Key players in Nusajaya are property developers including UEM Land, Iskandar Investment Berhad and Mulpha International Bhd, SP Setia, to name a few. In August 2007, the Middle Eastern Consortium (Mubadala, Kuwait Finance House and Millennium Development) and Iskandar Investment Berhad had signed a MOU to develop a RM4.2 billion (US$1.2 billion) integrated international city development, referred to as Medini (formerly known as Node 1).

Most land banks in Flagship B are Residential (freehold and leasehold) and Industrial types (freehold or 20+40-year leasehold)

Flagship C: Western Gate Development

The key economic activities in Flagship C are port and marine services, warehousing, logistics, engineering, hi-tech manufacturing, food production, petrochemical industry, entreport trade. Flagship C boasts a logistic centre, regional distribution centres, regional procurement centres and utilities (power).

MMC Corp Bhd, a public-listed company in Bursa Malaysia, is the main player in Flagship C via its shareholdings in the Port of Tanjung Pelepas (PTP) and the Tanjung Bin Power Plant.

Most of the land banks in Flagship C are agricultural lands and mangrove forests.

In terms of land bank availability, about 700 acres in the Free Trade Zone in Port of Tanjung Pelepas (PTP) are still available for development in various sectors including warehousing, international procurement and more. The proposed 2,215 acres of the Maritime Centre at Tanjung Bin also offer investment opportunities to players in oil and gas industry.

As of February 2008, land prices in Flagship C ranged around RM18 (US$5) per sq ft (for industrial/commercial use).

Convenient expressways connect the area to Johor Bahru and Kuala Lumpur. It takes only 30 minutes to drive from Flagship C to Johor Bahru and the Senai Airport. In the future, there will be a MRT/LRT system connecting Flagship C to the Johor Bahru City Centre and elsewhere.

Flagship D: Eastern Gate Development

As one of the key components of Iskandar Malaysia, the industrial and manufacturing hub in the southern region of Peninsular Malaysia encompasses 31,132 ha of the Pasir Gudang area. Flagship D covers Pasir Gudang Port, Pasir Gudang Industrial Park, Tanjung Langsat Port and Tanjung Langsat Industrial Complex.

Current key economic activities in Flagship D are focused on heavy industries and logistics, including electrical and electronics (E&E), chemical, oleochemical, food and engineering-based industries as well as ports and logistics and warehousing. Flagship D has the largest concentration of palm oil refining industries and downstream activities in the world.

Key players in Pasir Gudang include both local and international companies such as Bahru Steel, Panasonic, Titan, Kiswire, Western Digital and IOI Loders.

Most land banks in Flagship D are industrial zone (leasehold: '30+30'-year lease or 60-year lease) and residential-type (freehold and leasehold).

As of 15 February 2008, the price of industrial land in Pasir Gudang ranged between RM14 - RM20 (US$5 - US$7) per sq ft for a '30+30'-year lease and RM17 - RM30 (US$6 - US$10) per sq ft for a 60-year lease.

Flagship E: Senai - Skudai

Current key economic activities in Flagship E are airport services, engineering, electrical and electronics (E&E) and education. Going forward, Flagship E would also be the hub for agro and food processing, ICT and retail tourism.

With more than 1,000 acres of available land bank within the vicinity of Senai Airport, investors will have the advantage of setting up large-scale commercial and airport-related enterprises at attractive low rates. Other strategic land banks owned by developers also offer various investment opportunities.

As of February 2008, land prices in Flagship E ranged from RM4 to RM19 (US$1.5 - US$6) per sq ft for industrial/commercial use and RM80 to RM300 (US$18 - US$90) per sq ft for residential use.

Flagship E is synonymous with Senai International Airport and Universiti Teknologi Malaysia (UTM). Other key players include Lee Rubber, Boustead, Genting Property, IOI Properties and Johor Corporation.

Senai Airport is envisaged to be the No. 2 airport in the region after Changi Airport by 2025. It takes only 30 minutes to drive from Johor Bahru to Senai Airport. In the future, a multi-modal terminal and cyber city will be developed in Flagship E. There will also be an MRT/LRT system connecting Flagship E to the Johor Bahru City Centre and elsewhere.

Resource from :

http://www.iskandarmalaysia.com.my/the-5-flagship-zones