Iskandar Malaysia, the special economic zone that was earmarked as a high-impact development in the Ninth Malaysia Plan courted many foreign developers as well as buyers when it launched.
Iskandar Malaysia, the special economic zone that was earmarked as a high-impact development in the Ninth Malaysia Plan courted many foreign developers as well as buyers when it launched. Singaporeans and mainland Chinese began lapping up units as the region was set to flourish according to the impressive Comprehensive Development Plan (CDP).
But the 2008 financial crisis and economic volatility that followed in the subsequent decade put progress in the region on a bumpy path.
Astronomic growth in property prices fueled by increasing demand prompted the government to instil property cooling measures such as setting floor prices for foreign buying. Developers have had to change their strategies and plans but under all the buzz, Iskandar looks set to arrive at its intended destination on its own terms.
Some of us will remember that back when Putrajaya and Cyberjaya were mooted, many saw it as a white elephant project. This was due to the perceived distance from Kuala Lumpur City Centre.
The billions that went into building a futuristic administrative capital and the local equivalent of "Silicon Valley", were scoffed at. Labels like ‘ghost town' and "never amounting to anything" were also often heard. However, both Putrajaya and Cyberjaya are still standing today, and residents much prefer their haven away from the noise and congestion of KL that is still not too far a drive to get to.
Likewise, while industry experts have expressed concern about the progress of the project thus far, they have also opined that it is too early to call Iskandar Malaysia "a failed project".
The CDP for Iskandar Malaysia was revealed by the then Prime Minister, Chief Minister of Johor and Khazanah Nasional in 2006. Eight years later, in 2014, it was announced that it has secured RM156.51 billion in committed investments. By 2018, RM272.9 billion was achieved, which theoretically puts it ahead of the targeted RM383 billion by 2025.
Perhaps the pace at which Iskandar grew outran the demand and influx of businesses required to sustain its growth. Developers seemed overeager on development which led them to build ‘for the future at a fast pace' and that led to oversupply in the Johor market.