JOINT MINISTERIAL COMMITTEE ON ISKANDAR DEVELOPMENT

JOINT MINISTERIAL COMMITTEE ON ISKANDAR DEVELOPMENT

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(Update): **

51.

Mdm Ho Geok Choo asked the Minister for National Development (a) what were the issues discussed at the Fifth Meeting of the Joint Ministerial Committee for Iskandar Malaysia on 4th November 2009; (b) what is the latest update on Singapore’s investment in this project; and (c) what is the breakdown of industries and businesses from Singapore operating there or committed to operating there.

Mr Mah Bow Tan: The Joint Ministerial Committee (JMC) for Iskandar Malaysia (IM) was set up in 2007 to promote bilateral cooperation on the IM.

Since 2007, Work Groups were formed under the JMC to promote bilateral co-operation in four areas, namely enhancing transportation connectivity, facilitating immigration clearance, promoting joint tourism development and promoting environmental co-operation.

At its fifth meeting held on 4th November 2009 in Singapore, the JMC agreed to double the number of cross-border bus services by January 2010 as a means of enhancing transport connectivity. The meeting also noted that the Malaysian Automated Clearance System (MACS) that provided frequent travellers to IM access to "fast track" lanes was extended to all frequent travellers to Malaysia in September this year. A joint study has also been commissioned to assess the feasibility of twinning Sungei Buloh Wetland Reserve with nature sites in IM as a joint tourism product. In addition, environmental agencies on both sides have continued to exchange expertise in areas such as river cleaning.

As a follow-up to the discussion between the two Prime Ministers in Singapore in May this year, both sides also agreed at the fifth JMC meeting to form a new Work Group to study the joint development of an iconic economic project in IM. The JMC will meet again in the first half of 2010 to review the progress of the Work Groups.

In the meantime, the private sector has actively seized the economic opportunities that IM presents. According to data from Malaysia, Singapore is among the top three investors in IM. Most of Singapore’s investments in IM are in manufacturing, particularly by the small and medium enterprises. Between 2006 and May 2009, Malaysia approved 178 manufacturing projects with Singapore participation in IM. The total approved investment was 2.64 billion ringgit or around 1.1 billion Singapore dollars. The majority of these manufacturing projects were in the plastics, electronics and electrical, and fabricated metal products industries. Based on industry feedback, Singapore companies have also been actively exploring investment opportunities in IM outside of the manufacturing sector. These include companies from the healthcare services and real estate sectors, amongst others.

We will continue to collaborate with Malaysia under the JMC framework to forge a productive partnership. By working together on various proposals in IM, we seek to achieve a win-win outcome that would benefit both Singapore and Malaysia.