Malaysia's Iskandar project attracts $10.5 bln

Wed Apr 16, 2008

SINGAPORE, April 16 (Reuters) - Malaysia's plans to develop a special economic zone in the country's southern Johor state are on track with investment commitments of 33 billion ringgit ($10.5 billion) to date, officials said on Wednesday.

"In two years, we have attracted 70 percent of our target for five years," Azman Mokhtar, the managing director of state investment arm Khazanah Nasional, told reporters on the sidelines of a property exhibition in Singapore. The target is 47 billion ringgit.

Investors in the Iskandar Malaysia project, just a few minutes drive from the two bridges linking Malaysia to Singapore, include parties from the Middle East, Lebanon, Spain and Singapore, said Johor chief minister Abdul Ghani Othman.

Malaysia announced in 2006 plans to set aside 2,200 square kilometres (850 square miles) of land in Johor for a special economic zone.

Among the projects Malaysia hopes to attract is a theme park.

But reports that the government was talking to Walt Disney (DIS.N: Quote, Profile, Research) about a proposed theme park was premature, Khazanah said. Malaysia has issued information to a number of international operators but it was too soon to announce specific partnerships, Azman said.