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08-05-13, 17:23
http://www.businesstimes.com.sg/archive/tuesday/premium/top-stories/iskandar-loses-its-champion-keeps-its-appeal-20130507
Published May 07, 2013
Iskandar loses its champion but keeps its appeal
Analysts mull impact of Abdul Ghani's defeat on project
By Lee U-wen
[SINGAPORE] The man who oversaw the development of the Iskandar region in Johor is on his way out following his defeat in Sunday's general election, but observers say the Malaysian special economic zone - in which Singapore is the top investor - is unlikely to be affected for the time being.
One reason is that Iskandar Malaysia is governed by the Iskandar Regional Development Authority, a federal statutory body headed by a chief executive whose appointment must first be approved by the Prime Minister.
Iskandar - a region spanning 2,217 hectares, about thrice the size of Singapore - lies within Gelang Patah.
It was in that very constituency where opposition veteran Lim Kit Siang, the leader of the Democratic Action Party (DAP), defeated long-time Johor Menteri Besar Abdul Ghani Othman by a majority of 14,762 votes.
With the fallout of the result still uncertain, there are some question marks over whether there could be changes down the road when it comes to Iskandar's future.
Mr Lim, 72, has already indicated that his party plans to solicit views and ideas from residents about Iskandar's future development.
Nusajaya - the new state administrative centre of Johor - also falls within Gelang Patah's boundaries and is an important component of Iskandar.
It is also unclear at this point as to how the Barisan Nasional (BN) ruling coalition - which saw its dominance in Johor reduced to 21 out of 26 parliamentary seats, down from 25 previously - might react to the results, especially after seeing Mr Othman, who had helmed the state for the past 18 years, ousted.
"I think that, presumably, the BN will still pick a new chief minister that will very much support Iskandar and see the plans through," said Bank of America Corp economist Chua Hak Bin, noting that many major investments there have been driven by Malaysia's sovereign wealth fund Khazanah Nasional.
Iskandar has secured RM6.32 billion (S$2.61 billion) in investments from Singapore as of last December, largely from the manufacturing sector. In total, Iskandar has received RM106.3 billion in cumulative committed investments from around the world since its inception in 2006.
"Given that the incumbent coalition still won the majority of seats in Johor, our preliminary assessment is that there should be economic policy and business continuity even if some investors may continue to be a little cautious in the near term," said OCBC Bank's head of treasury research and strategy Selina Ling.
David Teoh, a Singaporean who lives in Iskandar where he runs a small packaging business, told BT that he wasn't overly concerned by the opposition making inroads into Johor.
"It's perhaps too early to predict what may or may not happen. There are many Singapore investors here. We all hope that things remain as they are and that we continue to get the necessary support from the state for us to run our operations smoothly," he said.
In a report yesterday, Citi Research wrote that, notwithstanding the gains by DAP in several key parliamentary seats within Iskandar, the Johor state government remains under BN control overall. BN won 37 out of the 56 seats in the Johor state legislatively assembly.
The report noted that Singapore investors could choose to move ahead with their plans faster now that the outcome of the election has been made clear.
"Political continuity should also bode well for the improving momentum in the bilateral relationship with Singapore, expediting the implementation of projects involving government-linked companies from both sides," it said.
Among the many projects in the works is a high-speed rail link linking Singapore to Kuala Lumpur via Johor that is expected to be completed by 2020. A rapid transit system between Johor Baru and Woodlands is also on track to be ready by 2018.
Keith Martin, chief executive of Global Capital and Development, the company tasked with building Iskandar's flagship Medini zone, said he expected to see "continued interest" from Singapore and regional investors alike, with strong direct investment and upcoming projects scheduled for completion in and around Medini soon.
"Overall, Medini looks poised for growth and we are confident in its long-term success as a choice destination for business, lifestyle and living," he added.
Published May 07, 2013
Iskandar loses its champion but keeps its appeal
Analysts mull impact of Abdul Ghani's defeat on project
By Lee U-wen
[SINGAPORE] The man who oversaw the development of the Iskandar region in Johor is on his way out following his defeat in Sunday's general election, but observers say the Malaysian special economic zone - in which Singapore is the top investor - is unlikely to be affected for the time being.
One reason is that Iskandar Malaysia is governed by the Iskandar Regional Development Authority, a federal statutory body headed by a chief executive whose appointment must first be approved by the Prime Minister.
Iskandar - a region spanning 2,217 hectares, about thrice the size of Singapore - lies within Gelang Patah.
It was in that very constituency where opposition veteran Lim Kit Siang, the leader of the Democratic Action Party (DAP), defeated long-time Johor Menteri Besar Abdul Ghani Othman by a majority of 14,762 votes.
With the fallout of the result still uncertain, there are some question marks over whether there could be changes down the road when it comes to Iskandar's future.
Mr Lim, 72, has already indicated that his party plans to solicit views and ideas from residents about Iskandar's future development.
Nusajaya - the new state administrative centre of Johor - also falls within Gelang Patah's boundaries and is an important component of Iskandar.
It is also unclear at this point as to how the Barisan Nasional (BN) ruling coalition - which saw its dominance in Johor reduced to 21 out of 26 parliamentary seats, down from 25 previously - might react to the results, especially after seeing Mr Othman, who had helmed the state for the past 18 years, ousted.
"I think that, presumably, the BN will still pick a new chief minister that will very much support Iskandar and see the plans through," said Bank of America Corp economist Chua Hak Bin, noting that many major investments there have been driven by Malaysia's sovereign wealth fund Khazanah Nasional.
Iskandar has secured RM6.32 billion (S$2.61 billion) in investments from Singapore as of last December, largely from the manufacturing sector. In total, Iskandar has received RM106.3 billion in cumulative committed investments from around the world since its inception in 2006.
"Given that the incumbent coalition still won the majority of seats in Johor, our preliminary assessment is that there should be economic policy and business continuity even if some investors may continue to be a little cautious in the near term," said OCBC Bank's head of treasury research and strategy Selina Ling.
David Teoh, a Singaporean who lives in Iskandar where he runs a small packaging business, told BT that he wasn't overly concerned by the opposition making inroads into Johor.
"It's perhaps too early to predict what may or may not happen. There are many Singapore investors here. We all hope that things remain as they are and that we continue to get the necessary support from the state for us to run our operations smoothly," he said.
In a report yesterday, Citi Research wrote that, notwithstanding the gains by DAP in several key parliamentary seats within Iskandar, the Johor state government remains under BN control overall. BN won 37 out of the 56 seats in the Johor state legislatively assembly.
The report noted that Singapore investors could choose to move ahead with their plans faster now that the outcome of the election has been made clear.
"Political continuity should also bode well for the improving momentum in the bilateral relationship with Singapore, expediting the implementation of projects involving government-linked companies from both sides," it said.
Among the many projects in the works is a high-speed rail link linking Singapore to Kuala Lumpur via Johor that is expected to be completed by 2020. A rapid transit system between Johor Baru and Woodlands is also on track to be ready by 2018.
Keith Martin, chief executive of Global Capital and Development, the company tasked with building Iskandar's flagship Medini zone, said he expected to see "continued interest" from Singapore and regional investors alike, with strong direct investment and upcoming projects scheduled for completion in and around Medini soon.
"Overall, Medini looks poised for growth and we are confident in its long-term success as a choice destination for business, lifestyle and living," he added.