iskandar development region (idr) - Centre for Public Policy Studies

ISKANDAR
DEVELOPMENT REGION
(IDR)
International Positioning of IDR
•
•
•
The IDR lies at the heart of south east asia
at the southern tip of West Malaysia within
minutes from Singapore
Strategically located at the cross roads of
East-West trade lanes
Londongrowing
Docklands, UK
Mid-way between the rapidly
Chinese and Indian Markets
Shenzen, China
DEVELOPMENT
REGION
2
2
Geographical Coverage
‰ Singapore
Area - 690 km2.
Population - 4.1 M
Density - 6003
‰ Dubai
Area - 3,885 km2.
Population – 1.2 M
Density - 309
‰ Hong Kong
Area - 1,095 km2.
Population - 6.9 M
Density - 6301
‰ Iskandar Development Region
Area – 2,217 km2
Population – 1.4 M Density - 631
Estimated Population 2025: 3 mil
Geographical facts:
Area of Coverage:
¾ Area – 2,217 sq km
¾District of Johor Bahru
¾ Part of the District of Pontian
- Mukim of Jeram Batu
- Mukim of Sg. Karang
- Mukim of Serkat
- Pulau Kukup (in Mukim
Ayer Masin)
@ 547,821 acres
¾ >3 times size of Singapore
¾ 48 times size of Putrajaya
Local Authorities:
¾ Majlis Bandaraya Johor
Bahru
¾ Majlis Perbandaran Johor
Bahru Tengah
¾ Majlis Perbandaran Kulai
¾ Pihak Berkuasa
Tempatan Pasir Gudang
¾ Majlis Daerah Pontian
3
Strategic Thrusts
Development of IDR will be guided by 5 strategic pillars anchored by 3
key foundations
A strong and sustainable metropolis of
international standing
International
Rim
Positioning
Creation of
Catalyst
Projects
Establish
Hard & Soft
Infrastructure
Enablers
IRDA a
Strong
Regulatory
Authority
Balanced
SocioEconomic
Equity
Equitable and Fair Distribution Among Stakeholders
Growth and Value Creation
Nation Building
4
5 Flagship Nodes
JB CITY CENTRE
New Financial District
Danga Bay Integrated Waterfront City
Upgrading of CBD
Tebrau Plentong Mixed Devt.
Causeway
NUSAJAYA
Johor New State Admin Centre
University Park
Medical Hub
International Destination Resort
Southern Industrial Logistic Clusters
WESTERN GATE DEVELOPMENT
Tanjong Pelepas Port
2nd Link Access
Free Trade Zone
RAMSAR World Heritage Park
Tanjung Piai – Southernmost tip of Asia
EASTERN GATE DEVELOPMENT
Tanjong Langsat Technology Park
Kim-Kim Regional Distribution Centre
Pasir Gudang Port
Tanjung Langsat Port
SENAI-SKUDAI
Senai International Airport
Senai Cargo Hub
Senai Multimodal Centre
Skudai Knowledge Hub
Hi-Tech Park
The Primary Focus of Development will be concentrated in the 5 Nodes
5
JB City Centre
Johor Bahru City Center
Causeway to Singapore
Node AA
Node
Danga Bay Integrated
Waterfront City.
Financial District
Nusajaya
SiLC
Destination Resort
• Thematic Industrial Park
• GDV: RM 1.8bil
• Theme Park
• GDV: TBD
EduCity
JSNAC
Node BB
Node
• Education Hub
• State Admin. Centre
• GDV: RM 2bil
• GDV: RM 1.5bil
Medical Hub
Waterfront
• Medical centre of excellence
• Integrated lifestyle destination
• GDV: TBD
• GDV: RM 1.5bil
Western Gate Development
RAMSAR
Heritage Park
Node C
C
Node
2nd Link to Singapore
Port of Tanjung Pelepas
Eastern Gate Development
Pasir Gudang Port
Node D
D
Node
Kim Kim Regional
Distribution Centre
Tanjung Langsat
Technology Park
Senai-Skudai
Senai International
Airport
Node EE
Node
Senai Cargo Hub
Multimodal
Center
Hi-Tech Park
Special Economic Corridor
DANGA BAY
INTEGRATED WATERFRONT
CITY
Danga Bay
Tg Pelepas Port
SINGAPORE
SEC - 44,990 hectares of land
Nusajaya-Johor Bahru-Pasir Gudang Corridor –
will be the premier zone for development and investment.
Existing Growth Nodes – will spearhead regional growth and
be enhanced to entice and attract investors
The main thrust of Development will begin in the Special Economic Corridor
11
9 Economic Drivers
to
Creative
Educational
Services
( Four New “Drivers”
Financial
Services
( Five Existing Economic “Pillars” shall be reinforced )
Support
System
Healthcare
Services
Tourism
Logistics
Services
Petro & Oleo
Chemicals
Electrical &
Electronic
The Main
Pillars
(Drivers)
Food &
Agriculture
Processing
IDR Economy
“Strong, Diversified, Dynamic and Global”
The Vision
be
added )
Strong Supporting Industries ( Metal Products, Engineering, Non-metallic, Manufacturing Related Services (MRS))
Strong Supporting Institutions (Education, R&D, Government, Private and social, communication and coordination system)
World-class Professionals and Technical Work Force
Basic
Foundation
Excellent Physical, Infrastructures, including IT
Excellent Working and Living Environment
Stable Political, Social Environment
12
Investment Opportunities
Tourism
Education
Logistics
•
•
•
•
Luxury Resorts
Hotels
Theme Parks
Eco-Tourism
•
•
•
•
• Conventional
Financial Advisory
& Services
• Islamic Financial
Advisory
Financial
Services
Universities
Institutions of Higher Education
International Schools
Research & Development
Facilities
• Training Centres
• Specialist Hospitals
• Alternative Medical
Therapies
• Nursing Homes
• Medical R&D
• Spas
•
•
•
•
•
•
• Computer Animation
• Video and Audio
Post Production
Creative
• Sound Stages for
video/film production
• Training facilities for
creative arts and sciences
Warehousing
3rd & 4th Party Logistics
Haulage
Air Cargo
Regional Distribution Centres
International Procurement
Centres
Healthcare
FAST FACTS ON IRDA
Background
• Iskandar Regional Development Authority (“IRDA”) is a Federal statutory
body responsible for realising the vision and objectives of IDR, i.e. to be a
metropolis of international standing
• IRDA was established by a Federal Act of Parliament – IRDA Act 2007 (Act
664)
• It is a single authority or single reference point for promotions, approvals,
implementations and regulations, aspires to carry best practices
benchmarked against world standards
• The only agency that reflects a joint-commitment from Federal and State
• A Comprehensive Development Plan (“CDP”) has been developed to steer
the overall development framework for IDR, which include strategies for the
physical, economic and social development as well as environment
15
IRDA Key Functions
• Establish national policies, direction and strategies for IDR
Planning
• Integrate the planning policies and strategies of the Federal
Government, State Government of Johore and local authorities
applicable or relevant to IDR
• Identify and recommend new policies, laws and actions to enhance the
competitiveness of IDR
• Promote and stimulate IDR as a trade, investment and logistics centre,
duty free area and tourist destination
Promotion
• Promote private sector investment in the targeted sectors
• Facilitate and undertake economic, physical and social development in
IDR
Process
• Act a principal coordinating agent on behalf of relevant Government
agencies in relation to receiving, processing and expediting the requisite
approvals – “One-stop Centre”
• Render administrative services and assistance to facilitate the requisite
approvals in connection to matters within IDR
16
Organisation Structure
(Co-Chairmen)
Prime
Minister
Chief
Minister of
Johor
Board Members
of IRDA
17
DEVELOPMENT OF IDR IS
GUIDED BY CDP
DS 1 – Ensure balanced development within the IDR by focusing
development in certain corridors and nodes.
19
DS 2 – Protect and conserve natural, historic
and open space resources to improve the quality
of life.
DS 3 – Focus development in areas where
existing and adequate infrastructure exists.
20
DS 4 – Promote in-fill and redevelopment in
existing communities, including brownfield sites.
DS 5 – Enhance accessibility by improving
Regional and East-West linkages as well as
provide alternative modes of public
transportation.
21
DS 6 – Create key economic initiatives that will
become focal points for growth within the region.
DS 7 – Plan and develop IDR as one integrated
global node of Singapore and Indonesia.
22
DS 8 – Manage Regional Growth Especially in
the Periphery of IDR
DS 9 – Plan for innovative and sustainable
infrastructure and utilities.
23
DS 10 – Encourage Planned Communities
within a liveable neighbourhood.
24
INCENTIVES IN
IDR
Types of Incentives in IDR
Existing Incentives
Customised Incentive
• These are existing tax
incentives offered to various
industries and approved
activities
• For investors who meet prerequisite criteria set out by
MIDA and/or MOF
• These incentives are
enacted in the Promotion of
Investments Act (PIA) 1986
as well as through various
gazette orders pursuant to
Section 127 of Income Tax
Act
• Common ones are
Investment Tax Allowance
(ITA), Reinvestment
Allowance (RA) and Pioneer
Status, etc
• Bilateral in nature (based on
request and consultation)
with no specific guidelines
• Customised based
ultimately on the projected
net economic benefit
enjoyed from the investment
Initial ISP in IDR
• Recently announced by
YAB Prime Minister
• Designed to encourage or
kick-start early investment
into IDR focusing on the
targeted 6-services based
sectors at designated nodes
• Incentives are:1. Corporate tax exemption
for 10 years
2. Exemption from FIC
ruling
3. Allow to source capital
globally
4. Can employ foreign
workers without
restrictions
26
How to Qualify for ISP in IDR?
=
IRDA-Status
Company
6-services Sectors:•Education
•Healthcare
•Creative
•Financial advisory &
consulting
•Logistics
•Tourism
Details To Be Announced By Q3 2007
27
SJIC
Khazanah
EPF
KPRJ
Iskandar Regional
Development Authority
(IRDA)
Contributions
Manages
SJIC
Investments in Strategic Initiatives
Planning Function
One-Stop Processing Centre
Economic & Social
Development
Social Projects Fund
Projects Level
PDV1
PDV 2
Kota Selat Tebrau (KST)
PDV 3
PDV 4
Lead Sponsor / Developer
Develop, own and implement Business Plan
Land owners, private
Developers, operators,
Local and foreign
Investors
- Development of Waterfront City
Source: SJER CDP
IN SUMMARY
Four Key Components of IDR
1
The Business Plan – Comprehensive Development Plan
3
– Supports the existing development
planning system
– Serves as a guide for future economic,
social, environmental and physical
development
– Contains policies and strategies for
implementation
– Plan for growth and sustainable
development
2
The Super Authority –
Iskandar Region Development Authority
Super Developer – South Johor Investment Corporation
– Supports catalytic and sustainable
development
– Identifies and creates demand
– Fills the gap between public funding and
investment of private companies
– Undertakes large long term high value
investments in partnership with others
– Main contractor for Government
infrastructure projects
4
Catalyst Initiatives
– To promote, stimulate and facilitate all
economic development
– To perform certain planning functions
within existing the framework of the Federal
and State Governments
– To function as a one stop centre in relation
to approvals for trade, investments and
development
– Includes, but is not limited to the following :
- Waterfront Development
- Theme park
- International Mixed Commercial and
Residential Development
- Leisure and Tourism Development
- Education and Healthcare Based
Developments
Supply Side – Planning and Regulatory
Demand Side – Commercial Development
Long-Term Aspirations
Without IDR Initiatives
With IDR Initiatives
Current
(2005)
Projected
(2025)
Projected
(2025)
1.4 million
2.3 million
3.0 million
GDP (PPP) in USD billion
20.0
64.1
93.3
GDP per capita (PPP) in
USD
14,790
26,694
31,100
Labour Force
0.62 million
1.16 million
1.46 million
Employment
0.61 million
1.0 million
1.43 million
3 – 4%
5.2%
1.8%
Population Size
Unemployment
31
For Enquiries
Please contact:Satellite Office
Main Office
Level
8,
Menara
Cyberport
5 Jalan Bukit Meldrum
80300 Johor Bahru
Tel : +607-218 3000
Fax : +607-218 3001
MSC
Level 53, South Wing
Menara TM
Jalan Pantai Baru
59200 Kuala Lumpur
Tel : +603-2240 6699
Fax : +603-2240 7999
www.irda.com.my
32