Iskandar Investment attracts RM4.7b

DUBAI: Malaysia's Iskandar Investment Berhad secured five billion dirhams (RM4.67 billion) investment for the country's Iskandar zone, and is accelerating work on what is planned to be the country's largest economic zone.

Chief executive Arlida Ariff told Reuters in an interview there were no cancellations within the project and the total investment for Malaysia Iskandar zone since its launch in 2006 had reached US$13 billion (RM44.46 billion), with around 15% coming from Middle Eastern investors.

The investments are in areas of property, hospitality, retail, manufacturing and petrochemicals.

The Iskandar Malaysia zone, three times bigger than Singapore, would be Malaysia's largest economic zone upon completion in 2025. The government expects it to create 800,000 jobs and attract around US$100 billion in investment over 25 years.

Iskandar Investment Berhad, a government-owned company, is the main developer of the project.

Islamic lender Kuwait Finance House, Abu Dhabi investment arm Mubadala Development Co, Aldar PROPERTIES [] and Dubai-based Limitless, state-owned Dubai World, are among the names that have signed up for the multi-billion dollar scheme.

"The advantage we have with the crisis is that CONSTRUCTION [] costs have gone down so we are now taking advantage of lower prices," said Ariff. "The government of Malaysia announced a stimulus package... and we were asked to accelerate some of our projects."

Ariff said Iskandar Investment awarded all infrastructure contracts worth over 1 billion dirhams in July 2009, and hopes to complete infrastructure works in Medini, one of the first areas to be completed, by the end of 2011.

The Iskandar project will also house the fifth Legoland themepark in the world and the first in Asia, with an opening deadline of April 2012. The project is worth 700 million dirhams, said Ariff.

Gulf Arab investors have suffered from the downturn in global financial markets, causing cancellations and delays of many real estate projects and bringing numerous expansion plans to a halt.

Ariff said Middle Eastern investors have not delayed their projects in Iskandar and remained on schedule to meet delivery dates. She said she hoped to attract further investment from the region within days. — Reuters