Five year-progress-report iskandar

CHAPTER 2 - STRATEGIC POSITioning

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ISKANDAR MALAYSIA - FIVE Year Progress Report 1

1 ISKANDAR MALAYSIA - 5 Year Progress Report

AcKnowledgements

YAB Prime Minister, Malaysia
YAB Chief Minister, Johor

Prime Minister’s Department
Prime Minister’s Office
Chief Minister of Johor’s Office

Johor Corporation Berhad
MMC Corporation Berhad
UMLand Berhad
Iskandar Regional Development Authority
Khazanah Nasional Berhad
UEM Land Holdings Berhad
Iskandar Investment Berhad

Ernst & Young Advisory Services Sdn Bhd
X2 Sdn Bhd
Text 100 Pte Ltd
Salt Media Consultancy Sdn Bhd
DC Print Sdn Bhd
Amir Hafizi

The people of Johor Darul Ta’zim

11 DECEMBER 2011


Foreword from
the Prime Minister of Malaysia

W hen the Government
of Malaysia set out
to transform southern
The rakyat is the ultimate
beneficiary of Iskandar
Malaysia, and even in the
Johor by tapping into the five short years since its
region’s strategic location, launch, the benefits from
its vibrant population the changes for the good
and strong logistical that have been set in
infrastructure, it was with motion can already be felt
the idea of developing a through improved public
world-class and dynamic infrastructure, thousands
metropolis that would be a of new jobs, and enhanced
key growth corridor for the safety and security, to
country. name a few.

Today, five years on, Alhamdulillah, the progress
Iskandar Malaysia has that has been achieved so
made great strides towards far in Iskandar Malaysia
achieving that goal. The is highly laudable but it is
region is a manifestation of just the beginning, with
the Government’s plan to more key developments “The development in Iskandar
decentralise development to be launched next year
and spread it out to all and many others over the
Malaysia is geared towards
corners of Malaysia, duration of the region’s being inclusive and sustainable,
thereby helping to ensure 20-year development
that no Malaysian is horizon. The Government
providing a multitude of
left behind in reaping of Malaysia for its part is prospects for growth and
the benefits from, and committed to ensuring
seizing the opportunities the continued progress
prosperity to be enjoyed by all
generated by, our nation’s and ultimate success of stakeholders.”
economic growth. Iskandar Malaysia.

In line with the principles As co-chairman of
of Malaysia’s on-going the Iskandar Regional
transformation into a Development Authority
high-income economy, (IRDA), I would like to take
the development in this opportunity to thank
Iskandar Malaysia is geared everyone involved for their YAB Dato’ Sri Mohd Najib bin
towards being inclusive passion, perseverance and Tun Abdul Razak
and sustainable, providing hard work that has brought Prime Minister of Malaysia
a multitude of prospects Iskandar Malaysia this far
for growth and prosperity and undoubtedly will take
to be enjoyed by all it further.
stakeholders.


Message from
the Chief Minister of Johor
Iskandar Malaysia is of huge significance and importance
to the socioeconomic progress of Johor, with
development in the region founded upon fundamental
principles that will have a positive impact on the people in
the state.

Through Iskandar Malaysia, Johor is given a key role in
nation-building, which is a natural role for a state that has
a rich, centuries-old history and tradition in being at the
forefront of social, economic and political development in
the Malay Peninsula.

The factors of growth and value creation lie at the heart
of the development of an internationally-competitive
Iskandar Malaysia, with strong regional and global linkages
that together with domestic strengths and advantages will
drive creativity and innovation.

Most important of all, the development of Iskandar
Malaysia is anchored upon the fair and equitable
distribution of the fruits of our collective labour among
stakeholders, so that the value and wealth generated is “Through Iskandar Malaysia,
shared across all segments of society. This principle is
paramount as the final outcome sought is for the rakyat to
Johor is given a key role in
enjoy an enhanced standard of living, with good access to nation-building, which is a
quality education, high-value employment and business
opportunities, and an enriched quality of life.
natural role for a state that has
a rich, centuries-old history
It is indeed heartwarming and encouraging to see the
growth of Iskandar Malaysia thus far, with good progress
and tradition in being at the
made in areas such as its physical and soft infrastructure, forefront of social, economic
key catalytic projects and social development initiatives.
and political development in the
The Government of Johor remains steadfast in its efforts Malay Peninsula.”
towards Iskandar Malaysia’s success and is continuously
committed to working hand-in-hand with the Federal
Government, the private and public sectors, and most
importantly, the people of Johor in ensuring the region’s
further growth. The state government is grateful to all
who have contributed through this collaborative approach,
which is pivotal to Iskandar Malaysia’s achievements to Dato Haji Abdul Ghani Othman,
date and in the future. YAB Menteri Besar Johor

As co-chairman of the Iskandar Regional Development
Authority (IRDA), I would like to say that truly, the rakyat,
both in Johor and throughout our nation, have much to
look forward to in Iskandar Malaysia, Insya-Allah.

5 ISKANDAR MALAYSIA - FIVE-Year Progress Report

Message from
the Chief Executive of IRDA
Iskandar Malaysia is well and truly off the ground and
we are now starting to see growth and development
throughout the region.

Much has been done in the five years since the launch of
Iskandar Malaysia and several important milestones that
were set for the development of the region have been well
met. Key road infrastructure projects have been completed
or are nearing completion, as are several catalytic projects
that will further spur growth and investment.

Cumulatively, Iskandar Malaysia has recorded a total
committed investment of RM77.82 billion, surpassing the
target set for the first phase of development. About 40%
of the total is from foreign investment and more than
RM30 billion have been realised.

Iskandar Malaysia is now into the second phase of its
20-year development period, with 2012 set to be a tipping
point for the region as several catalytic projects are set to
come on stream.
“Iskandar Malaysia has recorded
In this context, this report is timely as a progress update of
what has been implemented and achieved in the five years
a total committed investment of
of Iskandar Malaysia. RM77.82 billion, surpassing the
Indeed, these achievements were a result of tight
target set for the first phase of
collaboration and cooperation from many parties involved development”
in bringing the Iskandar Malaysia vision closer to reality.
The Federal Government and Johor State Government
have been pivotal in the progress of Iskandar Malaysia we
see so far, and on behalf of IRDA, I would like to record our
gratitude to them.

There is more to be done and IRDA is unwavering in its
commitment to ensuring the success of Iskandar Malaysia. Ismail bin Ibrahim
Chief Executive of Iskandar Regional
Development Authority (IRDA)

ISKANDAR MALAYSIA - FIVE-Year Progress Report 6

mEssAgE FRom THE mAnAgIng dIRECToR
oF KHAZAnAH nAsIonAl BERHAd
F ive years have passed since the launch of the
Comprehensive Development Plan (CDP) for what was
then known as the South Johor Economic Region. the CDP
guides the holistic development of Iskandar Malaysia over
a period of 20 years from 2006 to 2025.

Covering a multitude of aspects including socioeconomic,
physical, legal and institutional, as well as environmental
planning, the CDP envisaged the creation of a solid and
sustainable conurbation of international standing that
would also ensure fair and equitable distribution of
benefits to its stakeholders.

Alhamdulillah, we have witnessed much progress not
only in terms of investments that have been made and
the physical development that is evident on the ground
but also in efforts to ensure that the people of Johor, the
ultimate beneficiaries of Iskandar Malaysia, would fully
share in its growth and progress.

Khazanah is very honoured to be given the opportunity to
participate in this landmark development of the shaping of “There is more to be done and
not just Iskandar Malaysia but indeed the future landscape
of Malaysia itself.
we must double our efforts to
make it a magnet for investment,
I would like to thank and congratulate all who have been
involved in transforming Iskandar Malaysia from the idea
talent and economic activity,
that it was into the reality that it is today, in particular regionally and internationally.”
the Federal government and the Johor State government
for the strong and solid support that has been extended
throughout.

these achievements however should not be a reason
for us to rest on our laurels but rather serve to motivate
and drive us further to ensure that Iskandar Malaysia
continues to progress as planned. there is more to be Tan sri dato’ Azman Hj. mokhtar,
done and we must double our efforts to make it a magnet managing director, Khazanah nasional Berhad
for investment, talent and economic activity, regionally
and internationally. god-willing, through our continuous
commitment and endeavor, Iskandar Malaysia will succeed.

7 ISKANDAR MALAYSIA - FIVE-YEAR PRogRESS REPoRt

TABLE OF CONTENTS

CHAPTER 1:
12 ISKANDAR MALAYSIA – CONTINUATION OF A
HISTORY AND TRADITION OF PROGRESS
Johor: At the Forefront of Change
The Iskandar Malaysia Premise

CHAPTER 2:
22 FIVE YEARS OF ISKANDAR MALAYSIA –
HIGHLIGHTS AND MILESTONES

CHAPTER 3:
26 THE FLAGSHIP ZONES – A PROGRESS UPDATE
Overview of Progress
Flagship Zone A: Johor Bahru City
Flagship Zone B: Nusajaya
Flagship Zone C: Western Gate Development
Flagship Zone D: Eastern Gate Development
Flagship Zone E: Senai-Skudai

TABLE OF CONTENTS
CHAPTER 4:
58 SOCIAL DEVELOPMENT –
GROWTH THROUGH INCLUSION
I. Human Capital Development
II. Social Inclusion
III. Economic Inclusion
IV. Housing and Spatial Development
V. Safety and Security

CHAPTER 5:
66 WAY FORWARD
Strategies for the Next 5 Years

APPENDIX
72 Acronyms & Abbreviations

Chapter 1:
ISKANDAR MALAYSIA -
CONTINUATION OF A HISTORY
AND tRADITION of progress

Iskandar Malaysia is situated in south Johor, which has a centuries-old tradition of being at the forefront
of social, economic and political developments in Peninsular Malaysia and the region. Through its
strategic location, abundant resources, strong leaders and progressive communities, the great strides
made by Johor throughout history have generated waves of impact and influence on its surroundings. A
prime example is the Johorean influence in language: before the standard use of Bahasa Baku, it was Johor
Malay that was the lingua franca both in British Malaya and the Dutch East Indies, and it was Johor Malay
that would become the national language of independent Malaya.

In this context, Iskandar Malaysia is the continuation of the open and outward-looking spirit that has
characterised centuries of Johor’s history. It is the extension of the innovation and imagination that
moved celebrated sons of Johor the likes of Temenggong Ibrahim, Sultan Abu Bakar, Dato’ Abdul Rahman
Yassin, Dato’ Onn and Tun Dr Ismail to undertake great and ambitious tasks for the public good with
practicality, wisdom and principle. It is the enterprise of Wong Ah Fook and the Kuoks, the hard work and
the commitment of the Alsagoffs and other Hadhrami families, and it is the courage and conviction of the
Puthuchearys. Above all, it is the evolution of the deep and binding friendship of once-different peoples
from many lands and of many faiths.

It is this tradition of leadership and dynamism has put Johor at the forefront in the past, and provides the
seeds of great potential for its success in the future. Knowingly or not, the leaders of Johor in its early
history were building the foundations of a state based on the modern economic principle of generating
GDP by employing the productive use of labour and capital. Through being open and welcoming
of external talent and investment, armed with foresight and vision, and boldly exploiting Johor’s
comparative advantages, they put into practice a formula for economic growth and prosperity that
remains valid to this day.

The legacy of Johor’s political, social and economic leadership provides both a challenge and an
opportunity for the people of Johor to continue this tradition and realise the potential that is
Iskandar Malaysia.


Johor: At the Forefront of Change
It is often said in Peninsular Malaysia that the people of
Johor are “a little different”: highly refined, educated and The Golden Chersonese
fiercely independent.
When thinking of the early
Johor is, after all, the birthplace of the post-war Malay trading kingdoms of the Malay
nationalism that would lead quickly to the independence world, the Srivijaya Empire with
of Malaya, and even today it is regarded as the last and its capital at Palembang, or the
greatest bastion of that political tradition. At the same later Sultanate of Malacca from
time, however, Johor enjoys a liberal and cosmopolitan which the state of Johor is
reputation unrivalled either in the peninsula’s long history directly descended, often
comes to mind. And yet, early
or in the glittering landscape of modern Malaysia.
Western maps such as the
Geographia attributed to
It was a Johorean, Dato’ Onn Ja’afar, who founded the Claudius Ptolemy, suggests
United Malays National Organisation (UMNO), and it was something quite different. Compiled under various hands in the
also he who first demanded that the party open its doors to first millennium of the Common Era, it is in this work that the
all Malayans regardless of creed or colour. It was another Chersonesus Aurea or Golden Chersonese – “Chersonese”
Johorean, Tun Dr Ismail Abdul Rahman, who would agitate meaning “Peninsula” – is first mentioned (Wheatley, P., The
in favour of citizenship for all those resident in Malaya to Golden Khersonese, University of Malaya Press, Kuala Lumpur,
make them loyal citizens of the new independent nation. 2010). The name has long been considered to show how
important the Peninsula’s gold trade had been to the West, and
Such sentiments did not emerge overnight nor were they especially to the Roman Empire.
peculiar to a handful of individuals who existed in isolation There are some recognisable names: on the northwest of the
or happened by accident to be Johorean. Indeed it is Golden Chersonese the compilers of the Geographia identified
possible—even likely—that the historical inhabitants of a city called Cocconagora, which might correspond to the lost
Johor have had as much close contact with other peoples kingdom of Gangga Negara (what is now thought to be Beruas
and cultures as anyone in the Peninsula. and Manjung in Perak), while further north is the town of Kalonka
on what might be the lower Pahang River today.
A jewel in the south To the south, however, there is a major river, the Palandas, that
ran north through the peninsula from what is today the Tebrau
In the Sejarah Melayu (the Malay Annals) of 1612, Tun Sri Strait. On the banks of this river, just inland from the sea, was
Lanang tells of the land of Gangga Ayu and its great fort a city of the same name, and nearby was the market town of
of black stone on the banks of the Johor River. Ruled by a Sabanda. These names and cities are lost to us, but nonetheless
certain Raja Chulan, Gangga Ayu was thought by Tun Sri scholars believe that Palandas is the Johor River and that the
Lanang to have been the Malay equivalent of an ancient city of Palandas was established on the site of what is now Kota
Tinggi. The market of Sabanda might well have been a trading
Siamese expression (khlang khiaw) signifying “the Treasury
post on the island of Singapore—its specific designation as an
of Jewels”. This is borne out by the old Javanese name for emporium on the map implied that it was operated by non-
Johor—Galuh—which in literary Javanese today still means Roman authorities who charged non-Roman levies.
“diamond” or “jewel”. Also, contemporary Arabs referred to
Gangga Ayu as Jauhar (Arabic for “jewel”), and it is entirely Scholars generally accept that the cartographers of the
possible that Jauhar gives us the modern name “Johor”. Geographia marked only the waterways that featured
prominently in trade—in this case, the gold trade—and if the
Many historians believe that the Arab community, Golden Chersonese was indeed the Malay Peninsula, then the
originally merchants and teachers from Hadhramaut in ancient peoples of Johor and Rome (whether the Western Empire,
Yemen, began to settle in Johor in the 14th century. It which fell by the end of the fifth century CE, or the Eastern
was through this community that the Johorean artistic Byzantine Empire, which fell in 1453) were almost certainly
known to each other.
traditions of the zapin and hamdolok, as well as the use of
the gambus in music, first took root. There are still Arabic
place-names in Johor Baru today, such as Wadi Hana
and Wadi Hassan, and there is also a strong Hadhrami


ISKANDAR MALAYSIA - CONTINUATION OF A HISTORY AND TRADITION OF PROGRESS CHAPTER 1

community in Batu Pahat. was given written authority to establish and supervise the
Early Recognition The Javanese, meanwhile, plantation and to collect taxes for the state. In this way
influenced the development the system promoted both infrastructural development
Johor was known to the of kuda kepang, as well as and trade as more and more Chinese workers established
Chinese at least as early Johorean cuisine in delicacies tax-exempt shops and services for the residents of the new
as the middle of the Tang such as nasi ambeng, lontong, settlements. Temenggong Ibrahim first put the kangchu
dynasty (around the ninth and ungkep. system in place at the settlement of Kangkar Tebrau
century CE), and there are in 1844, and by the 1860s there would be some 1,200
map references to a kingdom
By far the most obvious kangchu plantations employing 15,000 workers.
the Chinese knew as Lo-Yue,
corresponding to the location
example of Johor’s outward-
of Palandas in Ptolemy’s looking spirit can be seen in Moving forward
Geographia. It is in Lo-Yue, the commerce and industry
for example, that Prince of the mid-19th century, and In 1855 Temenggong Ibrahim shifted his capital from
Takaoka (799CE–865CE), the it has been said by historians Teluk Belanga to what was then the small fishing village of
third son of Emperor Heizei that the best examples of Tanjung Puteri, but it was his son Temenggong Abu Bakar
(773CE–824CE) of Japan, is Malay co-operation with (the great-great grandfather of the present ruler, Sultan
recorded in official Japanese Chinese investors and labour Ibrahim Ismail) who would build on these early foundations
annals to have been killed by was undoubtedly in Johor. to make the state of Johor what it is today.
a tiger while en route to India.
A memorial to Prince Takaoka
Welcoming to all It is a testament to the rule
stands today in the Japanese
cemetery at Jalan Kebun Teh
of Sultan Abu Bakar, as he “A Man of Exceptional
in Johor Baru, and this and The state’s first Chinese would later become, that at Intelligence”
other factors give credence settlers arrived in the early various times the Chinese
to the idea that Johor was the 1840s. They were Teochew subjects in his state would Described by the English
site of the lost city of Kota from Swatow (now Shantou) outnumber the Malays by as “a man of exceptional
Gelanggi. and Chaozhou in China and as much as four to one, and intelligence”, Sultan Abu Bakar
they arrived when the young yet—unlike the experience was born on 3 February 1833
Raja Temenggong of Johor, of other Malay states—there in Teluk Belanga, Singapore.
The Governor of the Straits
Tun Daeng Ibrahim Abdul Rahman (1810–1862), had just were almost no instances
Settlements, William
been appointed officially to his post. The Temenggong was of friction (although there Butterworth, suggested that
a high political office within the Majlis Orang Kaya, and the were cases where different the young boy be sent to
Temenggong of Johor, centred in Teluk Belanga, Singapore, Chinese dialect groups England for his education but
held as a personal fiefdom what is today effectively the fought each other). Quite the Temenggong Ibrahim replied
state of Johor and the island of Singapore. This excluded contrary: it was under the with a firm “no”. Instead, Abu
Muar, which was held by its own Temenggong centred in rule of the Father of Modern Bakar would learn Islam and
Segamat, while Pahang was held by the Bendahara, Riau by Johor, as Abu Bakar would adat (Malay customary law)
the Yam Tuan Muda, and the rest of the Empire of Johor by be known, that the state from private tutors before
the Sultan who resided in Linggi (in Negri Sembilan today). leapfrogged economically, being sent to the local mission
socially and politically into school, the Teluk Belanga Malay
School. The school was run by
Sir Stamford Raffles had taken control of Singapore the modern world, and it did
the Rev Benjamin Keasberry,
for the East India Company in 1819, and what began as so comparatively free from an expert in Malay and whose
experimental pepper and gambier plantations had, by colonial interference. Johor staff included Munshi Abdullah
the time of Temenggong Ibrahim’s accession, resulted was the only state to maintain Abdul Kadir.
in a shortage and exhaustion of land on the island. its complete autonomy even
Temenggong Ibrahim persuaded the Chinese to open up as late as the end of the 19th
more plantations in the dense jungle along the rivers of century when the British administration sought to promote
Johor, and here he devised an innovative system in which a direct control over the Malay states. How Johor achieved
senior Chinese, called a kangchu (head of the river), would all this is a testament to the skill and wisdom of Abu Bakar
be given charge of a particular river where the plantation and the multiracial officers of his Government.
was to be established. With what were effectively a
renewable tenancy and a business licence, the kangchu


Abu Bakar’s vision kangchu system, and it was through this that luminaries
such as Muhamad Salleh Perang (1841–1915) helped to
Abu Bakar ascended as Temenggong on the death of his transform the state economically. Muhamad Salleh was
father on 31 January 1862. He was just 29 years old but fluent in both written Chinese and spoken Teochew, as
immediately set about developing the kangchu system well as Chinese traditions, and was so close to the Chinese
into a legal contract based on a European model. Under community that he is credited with the establishment
the new rules, a contract would be issued to individual of Batu Pahat and its development as a trading and
merchants living in Singapore or else to combines (or agricultural centre. He accompanied Abu Bakar to China
kongsi) of several merchants who could raise the capital in 1880 and rose to the position of Dato’ Bentara Luar of
for developing their plantations and the necessary the royal court, and there were often times when the Court
infrastructure. The kangchu himself became a site of Johor had more Chinese-speakers than the Colonial
supervisor reporting to the concessionaire or kongsi, and Government in Singapore.
the Chinese community as a whole were represented by a
Kapitan Cina, of which there would eventually be three Abu Bakar also struck a close friendship with a young
in Johor. contractor called Wong Ah Fook, who left his home in
Taishan County, Guangdong, as a result of the clan wars
The leading concessionaire and Kapitan at the time was of the time. As a young builder in Singapore he earned the
Tan Hiok Nee (1827–1902), a Teochew. In his early years notice of Hoo Ah Kay (better known as Whampoa, the
as a cloth peddler, he was a frequent visitor to Abu Bakar’s Anglicisation of Huangpu, the district in Guangzhou where
house and became his friend. Tan grew to be a prominent he was born) who was a prominent merchant—the only
cloth merchant with businesses in Johor by the time he Asian chandler to the Royal Navy—and Consul of Russia,
received his first kangchu contract in 1853, and eventually China and Japan in Singapore. As a result of Whampoa’s
he rose to become the leader of the Ghee Hin (or Ngee patronage, Wong received his first major commission in
Heng) Kongsi around 1964. Tan grew to become one of the 1863 building godowns for the firm Paterson & Simons
wealthiest and most influential Chinese in Johor with the on behalf of the Johor Government. Abu Bakar was so
largest number (nine) of kangchu concessions and a post of impressed with the work that he commissioned Wong to
Kapitan created especially for him. This post in Johor was build the new palace, the Istana Besar, at Tanjung Puteri
a civil service appointment assisted by a treasurer, a chief (which would soon be renamed Johor Baru). With Abu
clerk, and a chief inspector. Under Abu Bakar’s leadership Bakar’s trust, Wong rose to become the main Government
and through combined effort, the people of Johor, both contractor and he completed at least 20 major public
old and new, grew the 1,200 plantations and 15,000 works projects, including the splendid state mosque (now
workers of the 1860s to some 100,000 Chinese working on the Sultan Abu Bakar Mosque) as well as other landmark
plantations that together accounted for the largest supply buildings that have since come under heritage protection.
of pepper and gambier in the world by 1911.
Abu Bakar was careful to cultivate friendships with other
Abu Bakar also created a local civil service staffed by communities as well, the most notable of which was
prominent Malay meritocrats, which would set the the influential Hadhrami community. Syed Mohammed
foundation for Johor’s domination of Independence politics Alsagoff (1836–1906) was a key member of this group.
later, and it was through this system that the families of The grandson of the patriarch Syed Abdul Rahman, who
Onn Ja’afar, Dr Ismail Abdul Rahman and others would came out to Singapore as a spice trader in 1824, Syed
rise to prominence. However, Abu Bakar remained acutely Mohammed was a wealthy member of the colonial upper
aware of the importance of the Chinese community in the class, a great philanthropist, and Consul-General for Turkey
development of his state, and so he included two Chinese in Singapore. The trust Abu Bakar placed in him brought
in his 24-member Council of State, one of whom was his him land concessions in Nong Chik, Johor Baru, and some
trusted official Tan Hiok Nee. 14 square miles at Kukup where on his newly established
Constantinople Estate Syed Mohammed would cultivate
Forging collaborations rubber, sago, pepper and more, as well as print his own
banknotes which uniquely featured lettering in Jawi,
Abu Bakar also encouraged the involvement of many Chinese and English.
Malays in partnership with the Chinese in developing the



Syed Mohammed was not the only member of the Arab his greatest contribution, however, was the state’s 1895
community to help develop Johor. For example, Syed Constitution—the first in Malaya—which established
Abdullah Umar, Syed Junid Umar and Syed Abu Bakar of a constitutional monarchy. This development was
the al-Junids, together with Syed Salim Mohsain al-Attas particularly noteworthy in that it bucked the trend of the
were licensed and provided tax incentives to mine tin in other Malay states, which went deeper into Muslim and
Ayer Puteh. There is also record of an al-Tawi being granted customary law in response to increasing British influence.
a kangchu concession to open up plantation land in Skudai Indeed the Constitution would prove so successful that
Ulu, and an al-Khatib likewise in Tebrau. While the 1911 it would later serve as the model for the other states
Census placed the Arab community in Johor at a small of Malaya—but even here Johor remained different:
the Undang-Undang Tubuh Negeri Johor (literally, Laws
Embodying the State of Johor), unlike the conventional
The Maharaja of Johor term “Perlembagaan”, showed Johorean nationhood to
be legitimate only under the operation of law. Drafted by
As Sultan Abu Bakar registered success Dato’ Amar diRaja Abdul Rahman Andak at the command
after success, his political influence grew of the Sultan, the Constitution also declared that no
not only within the colonial community subject of Johor should be bound to any Sultan who ceded
but throughout the world. In the course of
the integrity of the state to a foreign power. This implied
his reign he became a close personal friend
of Queen Victoria and leading English
a contractual duty that was to become a major point of
nobles, and elsewhere he was very contention during the Malayan Union protests after the
welcome in the courts of Emperor Meiji of end of the Second World War.
Japan, Emperor Franz Josef of Austria, Pope
Leo XIII, Sultan Abdulaziz of Turkey, King Kalakaua of Hawaii, and The people of Johor argued that entering the Union
most of all Guangxu the Emperor of China, who was strongly would, according to the Constitution, endanger the
impressed by Abu Bakar’s support for the Chinese of Johor.
sovereignty of the state. It would be leading Johoreans
This aroused the professional jealousy of the Sir Frederick Weld, such as Dato’ Abdul Rahman Yassin (the father of Dr
the Governor of the Straits Settlements, and Weld sought Ismail), Dato’ Sulaiman Abdul Rahman (Dr Ismail’s
hard to bring Johor into the colonial fold by imposing on her a brother), Dr Awang Hassan (later Tun and Governor
British Resident who would be in complete control of the state’s
of Penang), and Dato’ Onn Ja’afar who would organise
administration. Abu Bakar resisted this move through skilful
manoeuvring: proclaimed Maharaja of Johor in 1868, he was now
the first resistance to the Malayan Union. And it
(in 1885) recognised as Sultan of all Johor by Queen Victoria. This would also be in Johor Baru—at the Istana Besar of
masterstroke gave him considerable moral authority and allowed Sultan Ibrahim (the son of Sultan Abu Bakar)—that
him to maintain the state’s sovereignty and independence from UMNO would come into being on 11–12 May 1946.
Britain. It is noteworthy that Johor, the Malay kingdom closest to
the seat of British colonial power in the region, managed to resist Open to all
incorporation into British Malaya until 1914, and it was the last
state to do so.
And yet these leaders were not motivated merely by
narrow considerations of nationalism. The young Dr Ismail
699 people, they more than made up for that in industry, wrote at the time that “Johor, I suppose, is still under
enterprise, hard work and success. Several families, such Military Occupation. When the Civil Administration takes
as the Alsagoffs, al-Attas’ and Alaydrus’, would over time its place again, the old order must go. People, irrespective
become connected to the royal family by marriage, and of nationality and colour must be judged according to their
many, such as Datuk Sheikh Abdullah Ahmad Bakhbereh own ability and only then can peace be assured.”
(popularly known as Datuk Shake), would make strong
marks Malaysian on culture and society later in history. Dr Ismail’s family possess the values and outlook typical
of Johoreans. The best friend of his father, Dato’ Abdul
Driven by innovation Rahman, was the Chinese medical doctor Cheah Tiang
Eam, and it would be through Cheah’s daughters Eileen and
As Sultan, Abu Bakar quickly instituted several innovations Joyce that Dr Ismail would in turn meet his best friends
such as postal and judicial systems as well as the Royal Philip and Robert Kuok (who married the two sisters).
Johor Military Force (or Timbalan Setia Negeri). Perhaps The Abdul Rahmans, Cheahs and Kuoks were in turn close


friends with the Puthuchearys (two of whom, James and Continuing the tradition
Dato’ Dominic, were founders of the People’s Action
Party), as well as Dato’ Onn. It was Onn, for example, Therefore, it can be argued that Iskandar Malaysia is a
who tipped off the third Kuok brother, William, that the continuation of Johor’s history of being at the forefront
British authorities were after him, and it would be James of change. Nearly half a century after Merdeka, it
Puthucheary who would bring the sad news of his death represents a significant thread to be added to Johor’s rich
back to the Kuok family. socioeconomic tapestry, tapping into the state’s heritage
of openness as well as leveraging on South Johor’s strategic
Philip Kuok (later Tan Sri) would serve as the Malaysian location at the southernmost tip of continental Asia.
Ambassador in Germany, the former Yugoslavia,
Netherlands, Belgium, Luxembourg and Denmark. Tan Clearly, it is well-positioned to take advantage of global
Sri Robert Kuok—long before he became the “Sugar developments since the new millennium. The world has
King”—would serve his nation in many capacities, come full circle over the past millennia. From 10th to the
helping to establish the Malaysian International the 15th century AD, China was the economic powerhouse
Shipping Corporation and Malaysian Airlines, amongst of the world until its position was usurped by the Western
other things. The two brothers built a massive world due to the isolationist policies pursued during the
worldwide business conglomerate and both would Qing Dynasty. Today, China, along with India – the two
remain deeply committed to a multiracial Malaysia. countries with more than one billion in population and
a history of great empires behind them – are reclaiming
At the forefront of change their global economic and political leadership. At the
same time, the West is imploding in the aftermath of
Regardless of their accomplishments, these individuals the worst financial crisis since the Great Depression.
are but threads in the great tapestry that is the social
and cultural milieu of Johor. The state has produced The centre of economic gravity is shifting inexorably
generations of Malayan and Malaysian leaders in politics, to the East, along with the formation of a ‘New Silk
government, commerce, society, sports, academia and the Road’ stretching from the Philippines to Africa. The
arts, and they have been able to do so because of a breadth New Silk Road is based on maritime, rather than the
of vision formed over centuries of embracing difference overland routes of old, and Johor (through Iskandar
for the common good. Throughout history, and even in Malaysia) with its maritime trading history, has the
the “pre-history” of the Malay Peninsula, Johor has been potential to be a significant part of this new route.
a gateway to international trade and cultural exchange. Regionally, Iskandar Malaysia is at the centre of Southeast
Whether it was known as Palandas, Gangga Ayu, Lo-Yue, Asia, located in between the Malacca Straits and the
Galuh or Jauhar, the state has been at the forefront of the South China Sea, with links to the Indian Ocean.
Peninsula’s social, political and economic development. It
is this unique perspective that continues to enrich Johor’s Indeed, Iskandar Malaysia possesses strategic positioning
strong traditions of openness and understanding. and economic potential. Johor has strong economic and
historical links with neighbouring Singapore, and this
Sultan Abu Bakar and those like him could not have can be seen in the 50,000 commuters who travel from
existed in isolation, and even if they did the measures they Johor Bahru to Singapore daily for work and education.
introduced—revolutionary at the time—could not have Together, Iskandar Malaysia and Singapore form a
taken root in unfertile soil. In more modern times, the birth conurbation of six million people, three maritime ports,
of Malay nationalism was already tempered by Johorean two airports as well as overland links to the rest of Asia.
maturity when it spread to the rest of the country, and it
is this Johorean maturity and welcoming of difference that With these key advantages, Iskandar Malaysia has
gave momentum to the multiracialism that has formed the opportunity to re-establish Johor’s economic and
the bedrock of all Malaysian politics even to this day. In historical leadership within the region, by keeping to the
Iskandar Malaysia today, as in Johor throughout the ages, it traditions of openness and pragmatism and leveraging
is the diversity of the many that gives strength to all. on existing strengths as well as develop complementary
advantages with Singapore and the rest of the region.



THE ISKANDAR MALAYSIA PREMISE
Iskandar Malaysia, with an area of 2,217 square-kilometers, These foundations for development are:
is three times the size of Singapore and is the single largest
development project ever to be undertaken in the region. 1. Nation Building

As envisaged by the Comprehensive Development Plan Development is consistent in spirit with national and
(CDP) launched in 2006, Iskandar Malaysia will be a place state level plans and aspirations while aspiring to drive
where living, entertainment and business would seamlessly further innovation and reforms in the nation building
converge in a vibrant and sustainable metropolis of process.
international standing. A great deal of careful planning
has also gone into ensuring that the development would 2. Growth and value creation
be sustainable, taking into consideration the direct and
indirect needs of its respective stakeholders. Development emphasises growth, productivity and
value creation in line with globalisation and increased
As part of the Indonesia-Malaysia-Singapore Growth competition.
Triangle, Iskandar Malaysia’s strategic location and
proximity to some of the world’s most dynamic economies 3. Equitable and fair distribution among
is a key differentiating factor for the development. Located stakeholders
at the cross-roads of the important East-West trade
routes, it is mid-way between the region’s two economic Development is consistent with the tenets of growth
power-houses, China and India, and is easily accessed by with equity, to ensure that the local and Bumiputera
air, land and sea. Other advantages include a multi-lingual population in particular participate in the growth and
and educated work-force and a vast land-bank. It is also value creation in a meaningful manner.
positioned as an international metropolis to decrease trade
barriers and increase human mobility. The five pillars in the strategic framework for Iskandar
Malaysia is a broad-based approach that encompasses
Since its official launch in November 2006, the vision the regulatory, social, physical, infrastructure and
of Iskandar Malaysia has gone off the drawing board commercialisation areas.
and is rapidly being transformed into a next generation
metropolis. With Phase 1 (2006-2010) completed, a 1. International Rim Positioning
critical mass has been established with the timely delivery
of major infrastructure and several iconic investment The development of a regionally and globally-
projects. Iskandar Malaysia has now progressed into Phase competitive Iskandar Malaysia propelled by efficiency
2 of the Comprehensive Development Plan. and innovation besides being factor and investment-
driven.
Consistent with the Iskandar Malaysia vision of becoming
“A Strong, Sustainable Metropolis of International 2. Establishing hard and soft infrastructure
Standing”, the development of the region is being enablers
undertaken upon five strategic pillars anchored in three
foundations, as identified by the CDP. The required infrastructure includes physical
infrastructures such as roads, airport and ports, and
public utilities, as well as security, river cleaning and
proper sewerage. In addition, soft infrastructure such as
fiscal and financial incentives, human capital, efficient
and business friendly institutions are necessary.


3. Investment in catalyst projects
CHART 1.1:
Catalytic projects to help spur further economic TRAVEL TIMES BETWEEN Iskandar Malaysia
activities in the region. This encompasses projects AND REGIONS
in logistic services, financial services, health and
education services, agricultural, manufacturing,
leisure and tourism, creative services and emerging
technologies.

4. Establishing a strong institutional
framework and the creation of a strong
regulatory authority

The creation of an Authority to plan, facilitate
approvals through a one-stop centre and address
social development. The Authority is also tasked to
ensure that approval times and government delivery
systems especially in respect to investments are to be
significantly improved in order to be internationally
competitive.
Over a 20-year period until 2025, the region is expected to
5. Ensuring socio-economic equity and buy- record Gross Domestic Product growth of 8% per annum,
in from the local population resulting in nominal GDP of USD93.3 billion in 2025 and
GDP per capita of USD31,100. A total of 1.43 million jobs
The people in Iskandar Malaysia fully benefits from will be created for a population that is expected to reach
the region’s development, through property and three million in 2025. The rest of Johor will also benefit
equity ownership, local and Bumiputera participation with significant spillover effects.
in various business and economic activities, income
generation programmes for the youth and abundant The successful development of Iskandar Malaysia will
employment opportunities generated from the enable the people within the region and its surroundings
development within the region. to enjoy a better quality of life, with environmental
preservation, learning and knowledge, social cohesion,
Via a development approach that is consistent with better income and wealth distribution, and greater
the five strategic pillars and grounded upon the opportunities for future generations to advance through
three foundations, it is envisaged under the CDP that better education, healthcare, employment and
Iskandar Malaysia will make a significant impact on business potential.
several key economic fronts.


CHAPTER 2:
FIVE YEARS OF ISKANDAR MALAYSIA –
HIGHLIGHTS AND MILESTONES

Iskandar Malaysia has been identified as one of the key catalysts and high-impact developments under the
Ninth and Tenth Malaysia Plans. The CDP provides a framework for the comprehensive development of
Iskandar Malaysia in a holistic and sustainable fashion, placing emphasis on creating a healthy investment
climate that is attractive to local and foreign investors.

To achieve these aspirations, Iskandar Malaysia would need to generate sufficient momentum by
sustaining a GDP growth of 8.0% annually up to the year 2025. A total investment of RM383 billion
(USD115.7 billion) would be required over the 20-year period. The target of RM47 billion for first phase has
already been achieved, with total committed domestic and foreign investments amounting to more than
RM70 billion.

Since its launch in 2006, Iskandar Malaysia has progressed rapidly, with several key developments
completed and many more nearing completion. Progress is being achieved across multiple sectors
including education, healthcare, leisure and tourism, property, creative and retail. In addition, critical
enablers such as physical infrastructure, safety and security, public housing, and social development
initiatives are also moving forward.

The growth over the past five years has put Iskandar Malaysia on a strong footing in its second phase of
development (2011 to 2015), with 2012 seen as a banner year with more catalyst projects coming on
stream. While much has been achieved, more will need to be done to drive Iskandar Malaysia forward.


the following is a timeline of highlights and milestones over
the five years since Iskandar Malaysia’s inception in 2006.

Iskandar Regional New Iskandar Malaysia brand is launched
Development Authority by the Prime Minister of Malaysia
(IRDA) is established via an
Iskandar Malaysia (then known as the South Act of Parliament, New road infrastructure projects
Johor Economic Region) is officially launched IRDA ACt 2007 for Iskandar Malaysia worth a total
by His Royal Highness the Sultan of Johor of RM3 billion is announced by the
IRDA holds inaugural meeting, Menteri Besar of Johor
co-chaired by the Prime Minister of
Comprehensive Malaysia and the Menteri Besar of An allocation of RM200 million
Development Plan for Johor to implement public housing in
Iskandar Malaysia is Iskandar Malaysia is announced by
released the Prime Minister of Malaysia

the Malaysian Six Iskandar Malaysia
Iskandar government announces development blueprints out of
Investment a range of financial the 32 planned are completed
Berhad, incentives, including
the catalytic developer tax exemptions, for Medini Iskandar Malaysia
for Iskandar Malaysia, is companies that invest in is launched
incorporated specific sectors in Iskandar
Malaysia

2006 2007 2008
Phase 1 of SiLC
in Nusajaya is
launched
Agreement to develop
Newcastle University
campus is signed

Agreement
to develop
LEgoLAND
Malaysia is signed

Construction of
Coastal Highway
commences

Work on Perumahan Rakyat Iskandar
Malaysia (PRISMA) public housing
project begins

Iskandar Malaysia records RM16 billion
in committed investments; cumulatively,
more than RM41 billion in investments
have been committed since its launch

23 ISKANDAR MALAYSIA - FIVE-YEAR PRogRESS REPoRt

FIVE YEARS OF ISKANDAR MALAYSIA – HIGHLIGHTS AND MILESTONES CHAPTER 2

Agreement for University of
Southampton campus is signed

Kota Iskandar, the new Johor State EduCity stadium Five Iskandar Malaysia development
administrative centre, and sports complex blueprints are completed. In total 21
is officially opened construction begins out of the 32 blueprints planned have
been completed
Agreement to develop Agreement for
Pinewood Iskandar Netherlands Maritime Newcastle University
Malaysia Studios is Institute of Technology is campus is launched
signed signed
Johor Premium
Agreement for Marlborough Agreement for Outlets is
College Malaysia is signed Gleaneagles launched
Medini Hospital
Agreement to develop is signed PRISMA, the benchmark-
Puteri Harbour Family setting public housing
Indoor Theme park is Columbia Asia Hospital project in Iskandar
signed commences operations Malaysia, is launched

2009 2010 2011
Agreement to develop 12 Community Police
Johor Premium Outlets Posts established
signed Agreement for Raffles
University Iskandar is
Bas Iskandar signed
Malaysia service
is launched 11 drainage projects and 5 river-
cleaning projects completed
10 Iskandar Malaysia development
blueprints are completed. In total Iskandar Malaysia records RM13.92
16 out of the 32 blueprints planned billion in committed investments;
have been completed cumulatively, more than RM69 billion
in investments have been committed
Iskandar Malaysia records RM13.81 billion since its launch
in committed investments; cumulatively,
more than RM55 billion in investments Khazanah Nasional and Temasek Holdings
have been committed since its launch announce a joint-venture to develop an
iconic wellness township project


Chapter 3:
THE FLAGSHIP ZONES
A PROGRESS UPDATE

The Iskandar Malaysia region is located in south N
JOHOR
Johor and covers Johor Bahru District as well as W E

several Mukims – Jeram Batu, Sungai Karang, S
Serkat – and Pulau Kukup in Mukim Ayer Masin,
that are all within the district of Pontian. It
comprises five component areas designated
as Flagship Zones A to E, with Johor Bahru, the
state capital of Johor, located in Flagship Zone A.

The Flagship Zones were formed based on
their roles as developmental focal points, with
emphasis on further strengthening existing
economic clusters as well as diversifying and Key landmarks and developments within each ﬂagship zone are as follows:

FLAGSHIP A FLAGSHIP B FLAGSHIP C
developing targeted growth sectors. Iskandar JOHOR BAHRU CITY CENTRE NUSAJAYA WESTERN GATE DEVELOPMENT
Malaysia’s nine key economic clusters are • Central Business District
• Danga Bay Integrated
•
•
Kota Iskandar
Puteri Harbour
•
•
Port of Tanjung Pelepas
Tanjung Bin Power Plant

financial advisory and consulting, creative
Waterfront City • Medini • Malaysia - Singapore Second Link
• Upgrading of Central Business District • EduCity • RAMSAR World Heritage
• Tebrau-Plentong Mixed Development • Southern Industrial Logistic • Tanjung Piai - Southernmost Tip

industries, logistics, leisure and tourism, • Customs, Immigration and
Quarantine Complex (CIQ)
• Johor-Singapore Causeway
Clusters (SiLC)
• Aﬁat Health Park
• International Destination Resort
of Mainland Asia
• Free Trade Zone

education, healthcare, electrical and electronics, • Lido Boulevard
• Conservation and Heritage Zones
• Housing and Residential Projects

petrochemical and oleo-chemical, and food and FLAGSHIP D FLAGSHIP E
agro processing. EASTERN GATE DEVELOPMENT SENAI DAI
• Tanjung Langsat Industrial Complex • Senai International Aiport
• Tanjung Langsat Port • Senai Cargo Hub

Collectively, developments in the Flagship
• Johor Port • Senai High-Tech Park
• Pasir Gudang Industrial Park • Sedenak Industrial Park
• APTEC (Lakehill Resort City) • MSC Cyberport City

Zones provide a testimony to the progress •
•
Johor Technology Park
Johor Premium Outlets®

that has been achieved in Iskandar Malaysia
since its inception. The cumulative investments that have been committed to various projects in the
Flagship Zones have ensured that Iskandar Malaysia has exceeded the investment target set for the first
phase of its development. In addition, several key catalyst projects have been completed or are nearing
completion, while positive progress has been made on the delivery of critical enablers such as roads
and safety. Important institutional frameworks are in place and most significantly, the strengthening of
bilateral relations between Malaysia and Singapore puts Iskandar Malaysia in prime position to leverage
on its proximity and socioeconomic links with its southern neighbour.


Source: CDP 2005

RM
OVERVIEW OF PROGRESS
10,000
9,716 Billions
80
TOTAL: 27,299 69.5
9,000
Rising investments Of 70 total committed investments for the first phase,
the
8,000 59% were domestic investment while foreign direct
60 55.6

Malaysia total of over RM75 billion in investments from both
A Economy
7,000
investment (FDI) contributed to the remaining 41%,
50
26.7
domestic and foreign sources have been committed to
6,094
making for a healthy mix of sources
41.8 of funds. The
23.7
5,910 40
Iskandar Malaysia up to the first half of 2011. For the
6,000 contribution of domestic investments into Iskandar
14.5
region’s first phase of development, which ran from 2006
ICT &
Malaysia has shown25.8
30 a steady rise from 2008, when
21.7
5,000 Health Educational Financial 9.1
Tourism to 2010, cumulative services
services
committed investments of Creative
services
about it made up 45% or RM18.9 billion of the cumulative
20
RM69.5 billion were secured. This was approximately
industries 11.3 11.9
then, to 54% or RM30.1 billion5.1 2009 when it 21.8
in
4,000 1.0 16.5
3,257
148% above target of RM47 billion that had been set for 10 8.2
surpassed total cumulative foreign direct investments.
5.5 7.1
3,000 5.8 5.8 6.8 6.3 6.3
that period. It is a commendable achievement given that 0
the global economy underwent severe financial distress in
2,000 CHART2006
3.2: Breakdown2008Cumulative (Dec)
2007 of 2009 2010
2008 and 2009. During those two years, Iskandar Malaysia
967 Investments by Domestic andOthers
Government Utilities, Tourism and Foreign
) secured investment commitments to be added)
1,000 (Four new “Pillars” of RM16 billion and
129 124
600 468 Sources 2008-2010, Year-On-Year
Properties Manufacturing Committed investment
34
RM13.8 billion respectively.
0
RM
ica -

o &

Fo uris &

ro

rs
ion

l

e
tic
are

em ro

cia

tiv
Fin l

Le nic

od m

he

Billions
Ag
ctr al

To re
gis
ch Pet
at

hc

an

ea

Electric

Ot
isu

CHART 3.1: Cumulative Investments 2006-2010, 80
uc

&
Lo
alt

Cr
&
Ed

Ele
He

eo

Year-On-Year 70 Foreign
Ol

60 Local
RM 28.8
Billions (41%)
80 50
25.5
69.5 40 (46%)
70
30 22.8
60 55.6
(55%)
26.7 20
50 30.1 40.7
41.8 18.9 (54%) (59%)
23.7 10
40 (45%)
14.5 0
30 25.8
21.7 2008 2009 2010 (Dec)
9.1
20 11.9 21.8 Source: IRDA, Khazanah, IIB, MIDA & corporate annoucement
11.3 5.1
7 1.0 16.5
10 5.5 7.1 8.2
5.8 5.8 6.8 6.3 6.3
0 About RM30 billion of the RM75 billion in committed
2006 2007 2008 2009 2010 (Dec)
investments have been actualised. This has seen a number
Government Utilities, Tourism and Others of important developments getting off the ground, with
Properties Manufacturing Committed investment several completed or approaching completion, across
RM
Source: IRDA, Khazanah, IIB, MIDA & corporate annoucement
the Flagship Zones. They include catalyst projects in
Billions the education and leisure and tourism sectors, key
80
infrastructure such as upgrading works on existing roads
70 Foreign
Committed investments during the first phase went and new highways, and other projects in sectors such as
60 Local
into various sectors including manufacturing, property healthcare.
28.8
development, utilities, leisure and tourism, as (41%) as
50 well
government spending. The Federal Government has
25.5 Boost in employment
40 (46%) to December 2010,
allocated a total of RM6.3 billion up
30 22.8
specifically for key infrastructure projects in Iskandar
(55%)
The rising investments in Iskandar Malaysia have
Malaysia. For the same period, the bulk of committed
20 40.7
correspondingly generated increased economic activity
30.1
investments from the private (54%) have been in the
10 18.9 sector (59%) and hence, demand for workers. More than 20,000
manufacturing sector which drew in 38.7% and property
(45%) employment opportunities have been created over the
0
development 2008 accounted for 31.4%. 2010 (Dec)
which past five years in Iskandar Malaysia’s targeted economic
2009
sectors. Nearly 10,000 jobs are in the electrical and


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