Iskandar Malaysia’s economic corridor could see tremendous growth, as Singapore appears to be serious about investing in the special economic zone.
According to a report by The Business Times, Iskandar Malaysia, pitched to investors as a great alternative to Singapore, is looking at approximately S$1.2 billion (US$989.28 million) in future investments from a partnership between Singapore’s Temasek Holdings and Malaysia’s Khazanah Nasional.
Despite its proximity to Singapore, most investors of the economic zone are European. However, experts noted that this series of investments could mean a long way towards providing future Singaporean investors confidence in the corridor.
“Their interest in Iskandar Malaysia indicates their confidence in the development so we can expect a new wave of investments, boosting land and property prices in the region,” said Yee Mei Hui, an analyst at HwangDBS Vickers Research, in an interview with The Business Times.
These investments are slated to be mostly in commercial and residential developments.
Iskandar Malaysia is about triple the size of Singapore and although it was only launched five years ago, the area has already attracted around US$13 billion in total investments so far.
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