While it is still too early to see the effects of China’s latest policy on capital flight, Johor is keeping a close watch for any impact from the implementation of the said policy, reported The Star.
“Johor does not focus only on one country for investments, we welcome investors from all over the world,” said State Tourism, Trade and Consumerism committee chairman Datuk Tee Siew Kiong.
The state does not also depend on a specific economic sector, like manufacturing, and had, in fact, diversified its economic portfolios in the last 10 years by shifting its attention from labour-intensive investments to more capital-intensive and high-technology investments.
“This is in tandem with our vision to turn Johor into the new economic powerhouse in the region,” noted Tee.
As the country’s top destination for the manufacturing sector, Johor received about RM86.3 billion in investments from 2010 to 2015. The southern state registered the highest investment figures in the country over the last six years, leaving Selangor and Penang far behind.
Based on data from the Malaysian Investment Development Authority, Johor received RM14.4 billion in investment in the manufacturing sector in 2013, with the figure rising to RM21.2 billion in 2014 and RM31 billion in 2015.
Johor posted a steady growth in gross domestic product at 6.1 percent on average from 2012 to 2014, up from the 5.4 percent nationally.
“We are confident of maintaining the momentum this year despite challenges and uncertainties in the global economic growth,” shared Tee.
He revealed that Johor had identified six new economic sectors – logistics, oil and gas, biotechnology, the halal industry, services and green technology – to spearhead the economic growth of the state in the coming years.
Tee added that 45 percent of the foreign and domestic investors looking to invest in Malaysia preferred Johor for its good infrastructure as well as proximity to Singapore.
“They (investors) did not only look at cheap land premiums like what other states are giving, but they are weighing other factors too,” he said.
Johor is in a unique position. The state’s transformation is massive and its future plans are ambitious. Hence, foreign investors are the likely people to ensure plans that are set are being executed. And China is a major player. Among the developments under China’s helm are:
1. R and F Princess Cove Phase 1 Residence, Johor Bahru
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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