Iskandar Development Region, the Malaysian US$ 105 billion mixed-use economic zone was unveiled during the inaugural Cityscape Asia exhibition and conference, which is taking place at the Suntec Singapore International Convention & Exhibition Centre. The event which runs until Thursday 12 April, is currently hosting a major delegation consisting of local government officials and industry experts from the economic zone which is planning to become the future financial heartbeat of Malaysia, upstaging Kuala Lumpur.
Commenting at Cityscape, a spokesperson for the project said, “Our strategic location on the border with Singapore is integral to the success of the project. Singapore is expecting 17 million visitors by 2015 this and with improved transportation links we can offer eco-tourism for example complementing their tourism initiatives. In addition investors can buy commercial and residential freehold for a quarter of what it costs in Singapore at the moment.”
In addition to the financial centre, the development will consist of an educational zone, creative and design centre, theme park, hotels and other tourism-related projects. Danga Bay, the US$ 8 billion integrated waterfront development in the Johor Bahru region of Southern Malaysia, is one of the flagship developments within Iskandar Development Region. Situated close to the border with Singapore, it is more than twice the size of the island state and has already attracted more than US$ 5 billion through public-private partnerships and other near government organisations (NGO). In addition the Malaysian government has committed US$ 1.5 billion to hard and soft infrastructure projects.
Under the prospectus, investors will be offered corporate tax exemption, free-flow of capital and labour, and freehold status for office and residential property. The master plan will take 20 years to be realised. Already a favourite destination for many visitors from the Middle East region, it is thought that investors will be attracted not only by the strong business case but also the close cultural ties.
Throughout SE Asia, almost 300 major public and private property developments are in progress and growing at a rate of over ten per cent annually. It is also estimated that there is over US$ 16 billion in available capital for such projects.
“Not that foreign investment in Asian real estate projects is a problem,” commented Neil Hickman, Exhibition Director, Cityscape Asia. “Vietnam’s FDI in 2006 was over US$10 billion rivaling that of India and only yesterday Mah Bow Tan, Singapore Minister for National Development, announced that Singapore had realised more than US$ 5.4 billion during the same period. “
Exhibitors from Singapore, Australia, Malaysia, India, Thailand, Vietnam, Indonesia, China and the Middle East, are participating at the maiden event which according to IIR Middle East, organiser of Cityscape Asia was sold out months before the opening, underscoring the strength of the regional real estate market. The three-day event highlights regional investment opportunities, iconic architecture and development best practice to global investors through a world-class conference and up to a total of 8,000 square metres of exhibition space.
