Posts tagged development
In a first-ever joint venture between the neighboring sovereign wealth funds, Singapore’s Temasek Holdings Pte Ltd and Malaysia’s Khazanah Nasional Bhd are planning RM30 billion (US$9.86 billion) worth of cross-border development projects in Singapore and the Iskandar Malaysia region.
Business Times reports a large portion of the money invested will be in Singapore, with Khazanah owning 60% of a new joint venture project called M+S Pte Ltd with a Gross Development Value (GDV) of RM27 billion ($8.87 billion). The development, in Marina South and Ophir Rochor, will be a mixed-use residential, office, retail and hotel complex of over 500,000 square meters in gross floor area.
On the Malaysian side, Khazanah and Temasek will be equal partners in a RM3 billion ($986 million) GDV project named Pulau Indah Ventures Sdn Bhd with a gross floor area of 1.37 million square meters starting in Johor’s Medini North and the Heritage Cluster at Medini Central. The project, in the vast Iskandar Malaysia development region bordering Singapore, will “build on the momentum” of the development’s existing and planned projects with commercial, retail, health and residential facilities, many of which Khazanah has played a part in since the beginnings of Iskandar in 2006.
The two government-controlled companies will work closely with established real estate development firms in both countries, like Malaysia’s UEM Land Holdings Bhd (Khazanah’s property arm) and Singapore’s Mapletree (part of Temasek’s portfolio) and CapitaLand.
source & article: Business Times
Cashed-up emirate Abu Dhabi will invest over RM18 billion (US$5.9 billion) in the Malaysian aluminum industry, building a new and advanced aluminum smelter for RM12.7 billion ($4.17 billion) and investing a further RM5.4 billion ($1.77 billion) developing downstream industries. Abu Dhabi’s Mubadala Development Company will form a joint venture corporation with Malaysia’s 1Malaysia Development Berhad (1MDB) to complete the projects.
Abu Dhabi has shown a lot of interest in Malaysia lately and this week’s announcement came as members of the emirate’s government and Royal Family visited to discuss potential new agreements. Malaysian Prime Minister Najib Razak said Abu Dhabi saw “abundant economic opportunities” in Malaysia’s Economic Transformation Programme (ETP) and that Crown Prince Sheik Mohamed Zayed Al-Nahyan had reiterated a commitment to invest in Malaysian projects.
Abu Dhabi is also cooperating with Malaysia on an oil block development in Sarawak, and Mubadala has invested RM1.2 billion ($394 million) in the Iskandar Malaysia project. Not to mention the 34-hectare Kuala Lumpur International Financial District (KLIFD), which is another Malaysia-Abu Dhabi joint venture costing around RM25 billion ($8.2 billion) to house the city’s financial services sector.
source & article: The Star Business
The Institute of Public Affairs (IPA) is an Australian think-tank with a focus on economic and political freedom. In operation since 1943, it has long taken an interest in the emerging markets of its immediate Asian neighborhood. Last week it published this 15-page report entitled Innovating Indonesian Investment Regulation: the need for further reform, examining Indonesia’s progress and politics since the Asian Financial Crisis of the late 1990s.
Indonesia is symptomatic of the challenges facing developing countries” and “a model for governance reforms”, the report claims. Economic progress has been stunning in the past decade, after the full restoration of democracy and a succession of market liberalizations. GDP growth is currently at 6.5% per year, there was only minimal exposure to US and European markets during the financial crisis, and foreign direct investment (FDI) has flowed in, particularly from Singapore. Further reforms in 2007-09 opened up more sectors to foreigners and saw a scramble to invest in mining and energy, among others.
While the report claims all this is a good foundation for growth, further liberalization and continued vigilance is needed to compete with other Asian countries and improve Indonesians’ livelihood. The oft-heard transport and infrastructure inadequacies are addressed. Government ownership requirements are still a hindrance to FDI, while increasingly assertive local administrations contribute to unpredictability with new licences, taxes and conflicting regulations. Foreign investors in Indonesia’s future will need a clearer understanding of their obligations and further signs of the national government’s commitment to reform.
source: Institute of Public Affairs
CEO of Malaysia’s Iskandar Regional Development Authority (IRDA) Ismail Ibrahim says the Iskandar Malaysia development region can achieve its target of RM73 billion (US$24.6 billion) in new investments between January 2011 the end of 2015, despite additional challenges.
In fact it’s already ahead of projections, with RM69.48 billion in new investments by December 2010 beating the RM47 billion target. Add figures from this year and Iskandar Malaysia has brought in RM73.24 billion since the project’s genesis in November 2006. 59% are domestic investments and 41% from foreign sources, with 41% of the foreign pledges already spent.
Ismail said IRDA would focus on big regional investors like Japan, South Korea, China, India and Asean, rather than early targets Europe and the Middle East. He added the global investment climate was ever-changing, though, so there were “no hard and fast rules” for IRDA in its quest for foreign investment.
Main industries committed to Iskandar Malaysia are the manufacturing sector (RM28.25 bil/$9.5 bil), properties (RM24.26 bil/$8.17 bil), and government (RM6.28 bil/$2.1 bil). Smaller contributors were utilities and tourism. IRDA, in partnership with the government-backed Iskandar Investment Bhd (IIB) is chasing ‘quality investments’ in tune with Malaysia’s development ambitions for the 2,217 sq km special economic zone in Southern Johor. Industries of particular interest are electronics, healthcare, higher-end manufacturing, R&D and tourism.
source & article: The Star Online
The New York Times has another piece on Malaysia’s Iskandar economic development zone, this time focusing on EduCity@Iskandar. EduCity is the 123 hectare proposed home to at least seven higher education institutions, with professional sports facilities and housing for over 4,000 international students.
Interest from foreign universities has begun to flow in to the fledgling zone. Already the University of Newcastle is setting up a medical school due to open September 2011. The Netherlands Maritime Institute of Technology and the Management Development Institute of Singapore are also due to open campuses at EduCity over the next few years. Raffles Education, a huge private Asia-Pacific education group, has also expressed an interest.
Khairil Anwar Ahmad is the CEO of Education@Iskandar and he hopes the multi-varsity collection will act as a feeder to the new businesses coming to the zone. Although the initial plan was for 12,000 students the actual number could reach 16,000 if the level of interest was any indication, he said. The range of vocational education choices will hopefully match the diversity of business the Malaysian government is aiming to attract to the Iskandar Malaysia development, which is three times the size of Singapore in physical area and seen as a vital component in Malaysia’s Economic Transformation Programme. Total investment in the region has already topped RM63.77 billion (US$20.26 billion).
source & article: New York Times
Another proposed development has been added to the Iskandar Malaysia project near the southern border in Johor state. A Singapore-Malaysia partnership called Azea Properties has announced plans for a RM500 million (US$158.8 million) waterfront and commercial project at Danga Bay, one of Iskandar Malaysia’s ‘key flagship zones’.
The RM150 million Singapore portion of the investment will come from Imperial Marina Pte Ltd., a firm created especially to explore opportunities at Iskandar. A joint venture named Para Impiana Sdn Bhd will include Malaysian developers Danga Bay Sdn Bhd (37%) and civil engineers Pembinaan Sahabatjaya Sdn Bhd (33%). Both companies have participated in more than RM1.3 billion ($413 million) worth of projects in the past decade.
Azea Properties will consist of 700 serviced apartments in several tower blocks over 1.68 hectares. There will also be room for retail space.
source & article: PropertyGuru via Yahoo! Singapore
New Special Economic Zones (SEZs) and industrial clusters based around regional commodity centers will take Indonesia’s GDP up to US$1 trillion and over by 2014, says the government. They also want to boost Indonesians’ per capita share of Gross National Product (GNP) from the current $3,000 to $5,000 or $5,500.
New economic policies aim to attract yet more overseas investment through the creation of Special Economic Zones. The department of Coordinating Economic Minister Hatta Rajasa is scouting the country’s regions to identify potential ‘growth centers’ and so far, they have marked five regions: Riau, North Sumatra, East Kalimantan, East Java and Merauke based on their respective strengths. The first three show potential for the crude palm oil industry, while the latter two show promise in oil, gas and agriculture development.
The government has calculated Indonesia’s current GDP at $700,000 and the economy is growing at a rate of 5.8% to 6.1%. Indonesia has set a target of up to 7.7% growth by 2014, and wants the country to take its place among the four so-called ‘BRIC’ economies of Brazil, Russia, India and China, often predicted to be the world’s largest by 2050.
source & article: The Jakarta Post
Indonesian President Susilo Bambang Yudhoyono says his government wants to focus on welfare and development in Papua and West Papua rather than security issues, calling for the completion of draft plans for ‘mega-projects’ in the region designed to build the local economy.
These mega-projects include establishment of a ‘green economy zone’ in Embrano and Jayapura, and an ‘integrated agribusiness zone’ in Merauke, as well as electricity generators in Manokwari, Fak fak and Sorong and a cement factory and husbandry in West Papua. Yudhoyono, visiting the region this week, said he would like to see the completed proposals by the end of December or early January.
The far eastern Indonesian provinces of Papua and West Papua, which occupy the western half of New Guinea, are vast and resource rich but underdeveloped, and usually appear in the international media for their security problems and secessionist activity. The government hopes stability and development in the region could provide benefits for both the local and national economies.
source & article: The Jakarta Post
New theme parks may be a sign of increasing affluence in Asia’s burgeoning middle class. Despite Hong Kong Disneyland’s relative lack of success, other ventures like Universal Studios Singapore and Tokyo Disneyland/Disney Sea are attracting millions of visitors from around the region. Disney is going ahead with plans to open another Asian park in Shanghai, and Denmark’s Legoland will open its first Asian location in Malaysia’s Johor state, near Singapore.
Asia’s middle class is growing exponentially and will soon become the world’s largest consumer group, according to a report by the Asian Development Bank (ADB). It is currently 1.9 billion strong, triple its 1990 number. Much of this increase is happening in China and India, and Southeast Asia’s economies are benefiting through increased tourism and retail spending. A record 1.1 million tourists entered Singapore in July 2010 (Universal Studios itself has enjoyed over a million visitors in its six months since opening) with Malaysia and Indonesia among the top five places of origin.
article & source: AFP via Yahoo!
The Malaysian government may expand its support of sustainable technology development with another RM1.5 billion (US$470 million) fund to provide soft loans to companies supplying and using it, especially in the energy, water and waste management industries. An initial RM1.5 billion fund was set up as part of the 2010 Budget as the Green Technology Financing Scheme (GTFS) and 10% has already gone to projects like a mini-hydro plant, waste water management, and projects not directly involved with green tech development such as paper, electronic ribbon and even cake manufacturing.
Energy, Green Technology and Water Minister Peter Chin Fah Kui said over 60 GTFS applications had been received since early this year, with 43 approved and awarded the ‘green certificate’ for financing. As well as having ecological credentials, companies also needed to have their economic viability assessed by banks. Mr. Chin said he would talk to Treasury about a second fund next year, and hoped to speed up the approval process.
Green technology development in Malaysia was lagging behind Singapore and Thailand, he said, possibly due to a lack of awareness about inefficient energy usage and carbon emissions. Meanwhile, the Malaysia Energy Centre COO Ahmad Zairin said estimates showed the sustainable technology industry could be worth over RM100 billion ($31.6 billion).
source & full article: Business Times