Malaysia is turning to Middle East investors to boost investments in a special economic zone in the south of the country as financial turmoil in the US slows interest from overseas. The Iskandar Malaysia zone, three times bigger than Singapore, would be Malaysia's largest economic zone. The government says it should create 800,000 jobs and attract US$100 billion (Dh367bn) in investment over 25 years.
Arlida Ariff, managing director of Iskandar Investment, said the project was on track, having secured 39bn ringitt (Dh41.77bn) so far, 80 per cent of a 47bn ringitt target by 2015. "It's a new market (Middle East) for us and an area Malaysia had not really tapped in the past," she said. "Those markets are not as affected by the financial crisis in the US and Europe." Its proponents say it could be Southeast Asia's answer to China's Pearl River delta, a manufacturing heartland that turns out more than a quarter of China's worldwide exports.
The mostly Muslim Malaysia has been a magnet for Middle Eastern investors flush with petrodollars who have been snapping up banks, hotels and malls. So far, much of the investment in Iskandar from the Gulf Arab region has gone intoproperty. Islamic lender Kuwait Finance House, Abu Dhabi investment agency Mubadala Development, Aldar Properties and Dubai-based Limitless are among the names that have signed up for the multibillion dollar scheme.
* Reuters
