A region of hope?

There is potential for the southern region to explode and transform itself into a new and exciting place.

The average growth rate of Johor State’s economy was 4.5% for the first 9 months of 2005 and projected to grow by 5.0% for the entire 2005. In 2006, a growth rate of 5% to 6% would be achievable if the global economy grew at 4.3% as expected. (Source: Economic Report 2005/2006, Stock Economic Planning Unit)

At the national level, the economy grew at an annual rate of 5.2% in the fourth quarter of 2005, i.e. at about 5.3% growth in real Gross Domestic Product (GDP) for the entire 2005, as against 7.1% in 2004. GDP growth is forecast to expand at 5.5% in 2006. (Bank Negara Malaysia Press Release). The Malaysia Institute of Economic Research forecasts the growth to be 5.5% in 2006 and 5.8% in 2007.

The near to mid term future presently a challenging environment for the property sector. The “Draf Rancangan Struktur Negeri Johor 2020” has outlined the Federal and State Governments intentions to earmark Johor Bahru District generally and Kulai-Senai specifically, as a Transportation and Logistic Hub, which amongst others comprise the following components.

i. Johor Bahru Sentral Station (transportation hub).
ii. Sultan Ismail Airport in Senai as a cargo centre and regional logistics centre.
iii. The building of a highway from Senai to Port of Tanjung Pelepas, Pasir Gudang and Johor Bahru Sentral.
iv. Dual track electric train and monorail from Johor Bahru Sentral to Sultan Ismail Airport, Port of Tanjung Pelepas and Pasir Gudang.

Since late 2005, there had been an air of expectation that the Southern Johor region, will come under special focus of the Federal Government. The recently announced 9th Malaysia Plan has specifically targeted the South Johor Economic Region, which covers an area bounded by Kulai at the north, and Mukim of Serkat (Port of Tanjung Pelepas) and Pasir Gudang on the western and eastern flanks, and Johor Bahru in the south, to expand the services sector from the highly developed Klang Valley. The region contains Johor’s logistic hub, which included two international seaports and an international airport.

The state’s new administrative centre will be relocated to Bandar Nusajaya in a few years while the RM7.8 billion coal-fired power plant at Tanjung Bin is under construction and slated to begin partial operations in August 2006.

There is also the impending major involvement of Khazanah into the Danga Bay project. Not to mention the casino and mega entertainment projects planned in Singapore.

The region has the potential to be substantially transformed. Yet, at the back of my mind, the fear is the region has also the potential to be permanently scarred by ad-hoc decisions, bad implementation and lack of long term comprehensive planning. Not the mention the long list of the usual crowd waiting for handouts.

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