ISKANDAR MALAYSIA

BRIC & Mortar - Investment Opportunities in Emerging Market

August 5, 2008
Presented by :

Dato Ikmal Hijaz Hashim | CEO
Iskandar Regional Development Authority (IRDA), Malaysia

AGENDA
No. 1. 2. AGENDA Introduction to Iskandar Malaysia Investment Opportunities

2

INTERNATIONAL POSITIONING OF ISKANDAR MALAYSIA
ƒ At the heart of South East Asia and within minutes from Singapore ƒ Strategically located at the cross roads of East-West trade lanes ƒ Midway between the growing economy of China and India

GEOGRAPHICAL COVERAGE

Region Iskandar Malaysia Singapore Dubai Hong Kong

Area (km2) 2,217 690 3,885 1,095

Population (million) 1.4 (Projected 2025: 3.0 million) 4.1 1.2 6.9

Density 631 6,003 309 6,301

LONG-TERM ASPIRATIONS 2005 Projected (2025)
Population Size GDP (PPP) in USD bn GDP (PPP) in £ bn GDP per capita (PPP) in USD GDP per capital (PPP) in £ Labour Force Employment Unemployment 1.4 million 20.0 10.1 14,790 7,469 0.62 million 0.61 million 3-4% 3.0 million 93.3 47.1 31,100 15,706 1.46 million 1.43 million 1.8%

Private and social institutions. Social Environment The well established sectors which are manufacturing based will be reinforced while giving new emphasis on new sectors which are services based . Infrastructures. Manufacturing Related Services (MRS)) Strong Supporting Institutions (Education. including IT Excellent Working and Living Environment Stable Political. Diversified. R&D. Engineering. Government. communication and coordination system) World-class Professionals and Technical Work Force Basic Foundation Excellent Physical. Non-metallic.PRESENT & FUTURE STRUCTURE OF ECONOMY FOR ISKANDAR MALAYSIA The Vision “Strong. Dynamic and Global” Iskandar Economy Educational Services Health Services Financial Services Creative Industries The Main Pillars (Drivers) Electrical and Electroni cs Petro chemical and Oleo chemical Food and Agro Processin g Logistic and related Services Tourism ( Five Support System Existing “Pillars” shall be reinforced ) ( Four New “Pillars” to be added ) Strong Supporting Industries ( Metal Products.

physical and social development • Coordinating agent • To receive.my Process 7 . direction and strategies Integrate and coordinate Identify and recommend new policies Undertake social and infrastructure projects Promotio n • Promote and stimulate investments • Facilitate economic.com.IRDA KEY FUNCTIONS A Statutory Body by Act of Parliament – IRDA Act 2007 Plannin g • • • • Establish policies. process and expedite approvals Iskandar Service Centre Toll free: 1-800-88-3010 enquiries@irda.

Nov 2006. ƒ Focus development in ƒ Expand development ƒ Achieve strong and Iskandar is 22 months old. selectively into of international ƒ Secured selected master selected nodes to control neighbouring nodes. 9 2006. we are entering Phase 3 – Catalytic Development and Building Momentum . ƒ Established IRDA & IIB 9 ƒ Launched Iskandar 9 9 and CDP .Sep 2005. ƒ Announced incentives & to induce demand. 9 9 9 ƒ Passed IRDA Bill -Dec 9 Completed sustainable metropolis and built capacity. investors in selected ƒ Enhance soft and hard standing. development blueprint. support package in Node ƒ Develop hard 1. infrastructure in impact catalytic projects enhance image and Iskandar. ƒ Implement 2-3 high ƒ Expand efforts to nodes. implementation of selected RMK-9 projects. supply. ƒ Build human capital to ƒ Commenced support catalytic projects.2005 2006 Phase 1: Planning 15 months 2007 PROGRESS OF ISKANDAR Now 2015 2020 MALAYSIA Phase 2: Mobilisation & Transition 12 months 7 years 2025 9 9 08 Phase 3: Catalytic Development Phase 4: Widening the Development Phase 5: Realising the Vision 9/2005 2/2007 12 years onwards 17 years onwards Outcomes: ƒ Completed concept 9 plan . infrastructure in selected ƒ Developed social nodes. ƒ Complete JSNAC. value of Iskandar.

1 CONTRIBUTION OF FDI IN ISKANDAR MALAYSIA IS HIGHER THAN MALAYSIA RM billion Malaysia Iskandar Malaysia Iskandar FDI has surged in Iskandar. accounted for 80% of manufacturing investments in 2007 (up from 70% in 2006). vs Malaysia of only 55% .

3bn (2006-2010) .INVESTMENT TARGET FOR ISKANDAR MALAYSIA IS WELL ON-TRACK Source: IRDA. representing 76% of total investment target of RM47bn or £7. Khazanah. SJIC. MIDA and various corporate announcements Investments already committed to date in Iskandar: RM36bn (£$5.5bn).

FLAGSHIP ZONES JB CITY CENTRE 1 NUSAJAYA WESTERN GATE DEVELOPMENT EASTERN GATE DEVELOPMENT SENAI-SKUDAI Catalyst development to complement existing strategic industries in Johor 11 .

2 ha open car park -Start nov07.7bn Danga Bay .Lido Boulevard •GDV: RM2.INVESTMENTS IN FLAGSHIP A 3 Johor Corp – upgrading KOMTAR .Oakwood Service Apartments • GDV: RM200 million Gerbang Perdana/JKR CIQ To commence in July 08 (light vehicle) A A CMP . complete 2009 Danga Bay -Tune Hotels 1 Iskandar Investment .Casa Almyra GDV RM125mn Target for completion 2009 2 Danga Bay .Danga Island •GDV: RM790 million •Target sales launch April 2008 Danga Bay – Promenade Danga Bay Grand Siam Hotel Cost: RM120mn Start (April 2008)Target for completion 2010 12 .RM55mn -1.

EduCity • GDV: >RM1 bn over 7 years.321 acres Target to announce by Dec 08 4 B B Iskandar Investment .Centre (JSNAC) • GDV: RM1.Johor State New Admin. Jurong Tech 5 6 Iskandar Investment – International Destination Resort GDV: USD1.Node 1 GDV : RM42bn • Thematic Industrial Park Mixed Urban Development • GDV: RM1.Southern Industrial Logistics Clusters Iskandar Investment.5-2.8bn • Key signings: HG Metal. Dubai World JV KST (60%): Symphony Int (40%) Aman Resort (46 acres) Cost: RM58mn.Puteri Harbour • GDV: RM13bn • Key signings: Limitless.INVESTMENTS IN FLAGSHIP B UEM Land .0bn 3. 2008-2010 . area: 305 acres • Newcastle Univ invited to set up medical faculty in educity 1 3 UEM Land . UEM Land .Afiat Healthpark • Signed BLA with Columbia Asia for 70-bedded hospital.5bn • Won M’sian Institute of Planners • Excellence Award 2008 2 UEM Land .

INVESTMENTS IN FLAGSHIP C 1 MMC Corp PTP – expansion (RM1.2mn TEUs by 2010 •Expected to attract additional FDI of RM5bn by 2010 C C Asia Petroleum Hub – KIC Bunker Terminal in Tanjung Bin •GDV: RM1.3bn.0-2.000 14 .5bn) •Berth 11. • Total expected FDI of RM17-20bn •Total area of 2. 12.2mn TEUs to 11. tank farms and processing plants •Employment of > 3. 13 and 14 •Capacity to increase by 3.255 acres •Key activities: •Port-related Industrial & Commercial activities • General Cargo Terminal suitable for noncontainerized cargo.4 billion •Built on manmade island •located 700m from PTP 3 2 MMC Corp/Dubai World Maritime Centre at Tg Bin •Initial investment of RM2. heavy cargo & ro-ro • Liquids Terminal with jetties.

INVESTMENTS IN FLAGSHIP D Johor Corp RM500mil plant to make flexible pipes in Tanjung Langsat Industrial area – Technip Group (France) Johor Corp Acerinox and Nisshin RM5 bil steel plant inTanjung Langsat D D Johor Port and Pasir Gudang Industrial Area Johor Corp Pacific Oleo chemical (subsidiary of Lam Soon) to construct a RM300mil oleo chemical plant in Tanjung Langsat 15 .

INVESTMENTS IN FLAGSHIP E 1 2 Johor Premium Outlets MMC Corp Bhd •Intergrated Airport City in Senai 3 MMC Corp Bhd Senai Hi-Tech Park 1.000 acres Submission of masterplan in June E E Johor Corp Johor Technology Park & Sedenak Industrial Park MSC Cyberport Johor Cybercity in Senai 148 acres Cost : RM400mn (phase 1) .

UK INVESTORS IN ISKANDAR Vita 17 .

AGENDA Introduction to Iskandar Malaysia Investment Opportunities in Iskandar Malaysia 18 .AGENDA No. 1. 2.

broadband.ISKANDAR MALAYSIA OFFERS THE RIGHT INGREDIENTS: Strategic Location • Leveraging on the close proximity to Singapore to tap business opportunities & established infrastructure • Midway between China and India • Sustainable economic growth for ASEAN region • 3 world-class ports and 1 international airport • Connectivity – highways. train. availability support services • Competitive incentives • Availability quality skills/manpower • • • • Consistent Government policy Creation of IRDA to facilitate businesses & investments Public funding on upgrading infrastructure Ease of capital & goods. Infrastructur e: Soft & hard Strong Government support Returns • Attractive upside potential • Inter and Intra business opportunities • Cost competitiveness .

INVESTMENT OPPORTUNITIES IN ISKANDAR MALAYSIA • Purchase land/property for development/investment Real Estate • Joint-ventures with key landowners/developers • Invest in property companies/ REITs Operations • Set up new business in one of the 9 promoted economic clusters • Relocation of existing operations Finance • Offer innovative financing for developers and investors .

iskandarmalaysia.com.THANK YOU Iskandar Service Centre Toll free: 1-800-88-3010 enquiries@irda.my Main Office: Level 8 Menara MSC Cyberport 5 Jalan Bukit Meldrum 80300 Johor Bahru Tel: + 607 218 3010 Fax: + 607 218 3111 Satellite Office: Suite 5-3 5th Floor Block 3B Plaza Sentral Jalan Stesen Sentral 5 50470 Kuala Lumpur Tel: + 603 2260 6777 Fax: + 603 2260 7999 .my www.com.

GDP GROWTH % 2008 2009 Source: EIU .

KEY DEVELOPERS IN ISKANDAR MALAYSIA .

CONCEPTUAL MASTERPLAN Estimated RM2 Billion (£0.3bn) Development Cost and Potential to Attract RM16 Billion (£2.5bn) in Foreign Direct Investments .

JOHOR STATE NEW ADMINISTRATIVE CENTER (JSNAC) • Phase 1 – Overall Progress at 96.0% • Phase 2B – Layout plan approval pending • Phase 3 – Approval of Cabinet Paper pending .2% • Phase 2A –Earthworks at 88.

One six (6) storey podium block 2. Project Duration : Aug 2008 – Aug 2011 5. Two (2) blocks 0f 33 storey residential apartments (Tower A 261 units) (Tower B . One (1) block of 22 storey tower service residence (Tower C – 267 units) 4.262 units) 3. GDV : RM 592 mil (£91mn) .OAKWOOD SERVICE APARTMENTS 1.

Estimated Cost of RM 250 mil (£39mn) 2. Boutique Hotel for Holiday Makers and Investors in Iskandar Malaysia 3. State of the art Fitness Centre and SPA .PROMENADE 1.

5bn) investments. significant contributor to Johor’s FDI .GLOBAL PLAYERS IN PTP Tiong Nam Attracting global brands worth more than of RM3 billion (£0.

ASIA PETROLEUM HUB .

EDUCITY .

838 ac Aman Resorts Proposed Aman Resorts at Sungai Kemudi Proposed Aman Resorts at Sungai Kemudi . Kemudi 188.AMAN RESORT Sg.

AIRPORT DEVELOPMENT LAYOUT PASSENGER TERMINAL SENAI CARGO CENTRE New Road Access Cargo Apron Passenger AIRSIDE INFRASTRUCTURE Apron SENAI AIRPORT AEROSPACE DEVELOPMENT SENAI AIRPORT LOGISTICS & FREE Cargo ZONE Senai DEVELOPMENT Hub SENAI COMMERCIAL DEVELOPMENT (Starts 2007) .

000 acres COMPREHENSIVE MASTER PLAN CURRENTLY BEING DEVELOPED BY INTERNATIONAL CONSULTANTS .CONCEPTUAL MASTERPLAN OF HITECH PARK INTEGRATED COMPONENTS ƒ Techno-centre Zone ƒ R&D Zone ƒ Communication and Call Centre Zone ƒ High Tech Manufacturing and Assembly Cluster ƒ Business and Commercial District Rail Port 1.

Convention Centre & 4star Hotel Precinct A Retail & Residential Inner Lagoon Public Marina Precinct B Hotel & Service Apartments Precinct A1 Retail & Residential .PUTERI HARBOUR Progress Photos PROGRESS PHOTOS Precinct C Waterfront Villas Commercial South Precinct D Transport Hub.

TUNE HOTEL IN ISKANDAR MALAYSIA ƒ 6 storeys ƒ 220-room Budget Hotel ƒ Owner : Tune Hotel Sdn Bhd (Subsidiary of Air Asia) ƒ Project Duration : June 2008–June 2009 ƒ Estimated Development Cost : RM20mn .

GLOBAL PLAYERS IN FLAGSHIP D NAIGAI NITTO .

Creative Park. Medical & Wellness Village. Golf Village.230 acres in Nusajaya GFA 183 million sq ft Initial investment of US$1. Mubadala and Millennium Development 97 million sq ft / 2.1 billion) Expected GDV = US$ 20billion over 15-20 years (25% within 7 years) 1 2 37 37 .NODE 1 International Mixed-used Development City Centre. Logistics Village. Financial District. Heritage District Key Players : Kuwait Finance House. Amusement Bay. Residential District.2 billion (RM4.

and total GDV of US$20bn (£10.240 365 Cultural Village Lifestyle Centre Financial District Zone . Company Millennium Development Total Value (US bln) 0.33 0.33 1. Investments breakdown: Investors Kuwait Finance House Mudabala Devt.1bn).6bn).20 Area (acres) Development Type 620 1.2bn (£0.52 0.MIDDLE EAST INVESTMENTS IN ISKANDAR The biggest single investments in Malaysia with initial investment of US$1.

MIDDLE EASTERN COMPANIES IN ISKANDAR MALAYSIA .

INTERNATIONAL DESTINATION RESORT 40 .

FLAGSHIP ZONES 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 Logistics Clusters WESTERN GATE DEVELOPMENT (PTP) •Port Tanjong Pelepas •Free Trade Zone •2nd Link Access •RAMSAR World Heritage Park •Tanjung Piai – Southernmost tip of Asia EASTERN GATE DEVELOPMENT (PASIR GUDANG AREA) •Tanjong Langsat Industrial Park •Pasir Gudang Port •Tanjung Langsat Port 41 SENAI-SKUDAI •Senai International Airport •Senai Cargo Hub •Senai Multimodal Centre •Skudai Knowledge Hub •Hi-Tech Park .

amusement and family entertainment centres etc • conference and exhibition centres • regional operation of hotel and leisure services • creative and design • film and television • games and animation • content generation • creative R&D • visual and performing arts Financial. advisory and consulting services • Islamic financial services • SSO/BPO • corporate consultancy and advisory Healthcare and related • hospitals and alternative medicine • integrated dental and orthodontic services • healthcare R&D • integrated lab services Logistics and related • integrated supply chain services • high value supply chain services and solutions Educational Services • universities • colleges • skills trainings institutes • R&D institutions • regional training centres .Creative Industries SIX SELECTED Tourism CLUSTERS • hotels • theme parks.

4 73.3 94.7 66.1 63.5 80.5 77.028 75.0 64.2 60.9 82.7 84.6 59.7 73.9 70.5 82.9 83.2 72.COMPETITIVENESS OF MALAYSIA IMD WORLD COMPETITIVENESS YEARBOOK 2008 Country/Economy Rank Score United States Singapore Hong Kong SAR Switzerland Luxembourg Denmark Australia Canada Sweden Netherlands Norway Ireland Taiwan Austria Finland Source: IMD International Country/Economy Rank Score 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 100 99.9 89.4 75.1 62.8 73.6 77.0 69.025 Germany China New Zealand Malaysia Israel United Kingdom Japan Estonia Belgium France Chile Thailand Czech Republic India Slovak Republic 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 74.4 Malaysia’s competitiveness in the region augurs well for the development of Iskandar .6 68.4 83.4 71.5 79.

4. 2. 3.AGENDA No. 1. 5 AGENDA Challenges & Opportunities What Iskandar Malaysia can offer to Japanese investors? Incentives Capital Appreciation Investment Opportunities 44 .

Reinvestment Allowance (RA) and Pioneer Status. etc 45 . 1986 and • Bilateral in nature (based on various gazette orders request and consultation) pursuant to Section 127 of with no specific guidelines Income Tax Act • Customised based on the projected net economic • Examples include Investment benefit from the investment Tax Allowance (ITA).AVAILABLE INCENTIVES Existing Pre-Package Existing Customised Incentives • Tax incentives as offered by MIDA and MITI Incentives • Investors who meet prerequisite criteria set out by MIDA and/or MOF • Incentives as in Promotion of Investments Act.

ISKANDAR MALAYSIA’S Where’s the Who will be What are the INCENTIVES location? eligible? incentives? Fiscal • exemption from income tax up to 10 years • exemption from withholding tax for payments to non residents Non-Fiscal • exemption from FIC Guidelines • flexibility to source capital/financing globally • unrestricted employment of foreign knowledge workers 46 New incentives for Iskandar Malaysia • Applicable for 6 selected clusters Node 1 and any other designated nodes Approved Developers Approved Developme nt Managers IDR-Status Company Foreign Knowledge Workers .

Investors in Iskandar INVESTORS IN ISKANDAR MALAYSIA NAIGAI NITTO 47 .

COMPARISON OF PROPERTY PRI 48 .

5 per sq ft (Gamuda JV. others) UK£20 per sq ft (Nusa Idaman) Node 1 (Aug 2007) 99 year lease UK£7 per sq ft N/A UEM Land sales (Dec 2007 to Feb 2008) Freehold UK£8 per sq ft (Limitless) UK£35 – 40 per sq ft (East Ledang) .SIGNIFICANT INCREASE IN LAND VALUE Comparison of Land Value Pre and Post Iskandar Malaysia UK£7 psf UK£8 psf UK£1 psf UEM Land sales (Prior to 2005) Land tenure Land price (RM per sq ft) Development price (RM per sq ft of GFA) Freehold UK£1 – 1.

96 (£0.05) 6.20 (£0.459 Malaysia Ringgit (as at 31 July 2008) 4.77) 1.48 (£1.33 (£0.01) 50 .Government Investments: Major Projects in ISKANDAR (2006-2010)) Projects *Cost (RMbn) Roads and Highways Environmental Projects: River Cleaning.19) 0. Sewerage and Flood Mitigation Security Total * 1 £: 6.

Premium Outlet offers discount of 25%-75% . with interests in 46 Premium Outlet Centers located in the United States. Korea and Mexico. Japan. owner and operator of outlet shopping centers. Chelsea is the world’s largest developer.WORLD’S LEADING BRANDS IN ISKANDAR MALAYSIA • • • Genting has signed an MOU with Chelsea Property Group to jointly study the establishment of Premium Outlets branded centers in Kulai.

FDI BETWEEN STATES IN 2007 % of FDI Total FDI (RM’bln) ISKANDAR is ranked high in terms of FDI in Malaysia .