Clever Bulletin: Iskandar Malaysia projects aim to enhance connectivity between Malaysia and Singapore.

CHINESE developer Zhuoda Real Estate Group likens the combination of Iskandar Malaysia and Singapore to the successful Shenzhen-Hong Kong model.

When China first opened up in the late 1970s, the southern city of Shenzhen, just across the Hong Kong border, was handpicked by Deng Xiaoping to jumpstart the country’s economic reforms.

The unknown city flourished together with Hong Kong, and Zhuoda Real Estate Group hopes that Iskandar Malaysia, where it intends to invest, will be as successful as Shenzhen.

“Malaysia and Singapore are only separated by the Straits of Johor,” Zhuoda Real Estate Group vice-chairman Wang Binwu said.

“In future, hundreds of thousands of Singaporeans will make Iskandar Malaysia as their first choice living destination. I have confidence in Malaysia and our investment there.”

On Sept 23, in Beijing, the company based in Shijiazhuang, Hebei province, and Iskandar Investment Bhd signed two memorandums of understanding (MoU) on their strategic partnership in Iskandar Malaysia.

The first MoU will see the formation of a joint-venture company between Iskandar Investment Bhd and Zhuoda to develop a RM158mil residential project on a 72,850sq m site in Medini North.

The second MoU is for the sale of a land in the Medini business district at a cost of RM70.8mil to the Chinese developer.

Wang said, upon the completion of future projects in Iskandar Malaysia such as subway and tunnels, the connectivity between the two nations would be further enhanced.

Zhuoda chief operating officer Yang Hanqing said Iskandar Malaysia could depend on the strong economic fundamentals of the developed state of Singapore.

Zhuoda will be the first Chinese company to invest in Medini, which is earmarked to be a lifestyle and residential district in Iskandar Malaysia.

Iskandar Malaysia is the catalyst development region in Johor drawn up by the Government to spur new economic growth in Malaysia.

Iskandar Investment Bhd president and CEO Datuk Syed Mohamed Syed Ibrahim said the agreement reached between both parties was a testament of the value Iskandar Investment could provide to its international partners.

Good partnership: Syed Mohamed (right) shaking hands with
Wang during the signing of the memorandums on their partnership.

He said the project undertaken by Zhuoda would add vibrancy to Medini North’s property market which would probably take shape by next year with the opening of the Legoland Malaysia, a retail shopping mall and other properties.

Iskandar Investment and Zhuoda should be signing the definitive agreements on the projects at the Third World Chinese Economic Forum in Kuala Lumpur on Nov 3.

Malaysian Investment Development Authority (Mida) Shanghai office director Simon Lee said Chinese businessmen had not shown keen interest in investing in the property market in Malaysia.

“Generally, they think that the property market is not so vibrant. But, we told them that our market is more sustainable and stresses long-term returns,” he said.

Among the common questions raised by Chinese companies at investment forums organised by Malaysian authorities in China are about land ownership by foreigners, property prices and business equity, he said.

Lee said Iskandar Malaysia was one of the five economic corridors that the Government was promoting vigorously to attract investments from China.

According to the Iskandar Regional Development Authority, Iskandar Malaysia has recorded a total investment of RM75.96bil from November 2006 to June 30 this year, with foreign investments accounting for 40% of them.

Last month, Malaysia Property Inc (MPI), in collaboration with Malaysian Chamber of Commerce and Industry Shanghai chapter, organised a property investment forum in Shanghai which attracted more than 200 participants.

“We have good enquiries on the property price trend and homebuyers wanted to find out more on the areas where the projects of the five participating Malaysian developers are located,” said MPI vice-president (I) Chan Tze Wee.