Thursday, March 15, 2007

Malaysia to Singapore investors: Be early birds in Johor

The Straits Times, March 15, 2007
By Warren Fernandez & Carolyn Hong


Hishamuddin urges S'pore to give early support for special economic zone


'If we do not do it now, when Pak Lah is the Prime Minister, I do not know when we can do it. Pak Lah is very genuinely interested in getting bilateral relations on a good footing. Never, never, underestimate Pak Lah.' - Datuk Seri Hishamuddin, on improving Singapore-Malaysia ties.



PUTRAJAYA - COME join in, and do so sooner rather than later to signal Singapore's support.

Malaysian Education Minister and Umno Youth chief Hishamuddin Hussein made this call to Singapore, urging it to 'come in early' on the ambitious plans to develop a special economic zone in southern Johor.

Doing so, he argued, would signal Singapore's support for the project, which has the backing of Malaysia's top leadership, and would help strengthen bilateral ties.

Giving an overview of the project, which some have dubbed Malaysia's biggest mega-project yet, he told The Straits Times: 'We need to show that it is going to be done professionally, and Singapore is most welcome to come in.

'But come in early. Wait-and-see, that does not create the atmosphere of trust.

'It is the same when you are in politics. Once I am a minister, there are a lot of people who want to be my friend. But the true friends are those who were there during the difficult times.'

He was speaking about the plans for the Iskandar Development Region, a 2,217 sq km zone stretching north from the Singapore-Malaysia border.

Plans for the project, launched last November, include a new administrative centre for Johor, new industrial zones, education, medical and tourism hubs, a waterfront development and luxury residential areas.

Tax breaks and other incentives to woo investors have pulled in RM20 billion (S$8.7 billion) so far, including the luxury Aman Resorts and no-frills Tune Hotel.

Malaysia's top leaders have been keen to woo Singapore investors as well, and several delegations of Singapore leaders are reported to have been briefed on the plans.

Set against this, however, have been somewhat conflicting signals from local Johor leaders, who have voiced concerns about Singaporean involvement and whether this would end up benefiting Singapore more than Malaysia.

Datuk Seri Hishamuddin, 45, coming from a prominent family of Johor Umno leaders - he is the son of Malaysia's third prime minister Tun Hussein Onn and grandson of Datuk Onn Jaafar, a founder of the ruling Umno - sought to put these in context.

He said: 'I do not blame the Johor politicians because they have to live with their constituents. Singapore has to understand that. But the corridor initiative is a national initiative chaired by the PM himself.'

Strong political will was needed to manage tensions on the ground, and the right signals would have to be sent to the people to show that the project had top-level backing.

The fact that a prominent panel of advisers had been set up, including South-east Asia's richest man, Johor-born Robert Kuok, and former deputy prime minister Musa Hitam, also a Johorean, showed that Malaysia was serious about the project and welcomes partners from abroad, including Singapore, he said.

During the wide-ranging 75-minute interview last Thursday at his office in Putrajaya, Malaysia's administrative heart, he also answered questions on his plans to reform the education system as well as on race relations in Malaysia, which marks its 50th year of independence this year.

He was also at pains to explain his controversial brandishing of the keris at last year's Umno general assembly, arguing that he had done so to motivate Malays and draw attention to the need for them to keep pace with other races. He did not want his community to be unprepared when the country declared itself a developed nation in 2020, he said.

Sounding generally upbeat about strengthening ties between Singapore and Malaysia, he referred to Prime Minister Abdullah Badawi by his nickname and said: 'If we do not do it now, when Pak Lah is the Prime Minister, I do not know when we can do it.

'Pak Lah is very genuinely interested in getting bilateral relations on a good footing. Never, never, underestimate Pak Lah.'

Asked if he would play an active role in promoting the Johor project, he replied: 'It is a national project decided at the highest level. Every minister in the Cabinet has the responsibility...

'Of course, being a Johorean, it is even more of a responsibility for me to convey the national aspirations to the Johor leaders, and that is my role.'

Noting that there had been previous proposals for the two countries to work together on projects in Johor, he said: 'We have been talking about this for so long, now I think let's not talk anymore, let's do it.

'Prove to the people that at the end of the day, we can.'

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