Iskandar as Shenzhen

The Straits Times, May 17, 2007


THE Iskandar project figured large in the free-and-easy Langkawi 'retreat' that brought together the prime ministers of Malaysia and Singapore, assisted by large contingents of ministers. Not for the first time did Datuk Seri Abdullah Badawi liken the south Johor development enclave a strip of water away from Singapore to the Hong Kong-Shenzhen catalytic effect.

In making the comparison, PM Abdullah would have pondered deeply the cooperative interplay of forces. This is important to Singapore businesses wanting to get a fix on the project's realisable prospects and how welcoming the Malaysians will be of Singaporean money.

Shenzhen was a hamlet grown into a modern commercial city in a matter of years. Hong Kong next door provided critical stimulus. The Malaysians are pitching Iskandar at an international audience of investors. For a multi-sectoral project scaled at US$100 billion (S$152 billion) of investments over a period of two decades, drawing innovators and funds from the Middle East, North Asia, India and further afield is essential to success.

But getting 'seeded' early with quality Singaporean investments, aside from indigenous Malaysian funds, would give Iskandar the confident start that will help it get noticed internationally. Like Shenzhen, Iskandar will enhance its appeal greatly if it would willingly feed off Singapore's energy and creative input. This will benefit both countries.

The process has to be accepted by Malaysian politicians, chiefly from Umno, and ground opinion in Johor. It is a barrier to cross. There should be no illusions about it. The warm words heard in Langkawi mean that the leaders are willing, but winning over sceptics fearful of Singaporean business dominance is another matter.

A strong Singaporean presence in targeted investments will be seen as an endorsement of Iskandar's investible assets. Foreign money does pay attention to Singaporean evaluations, just as the Singapore-initiated Suzhou industrial park in China quickly gained international recognition.

In this connection, the joint ministerial committee agreed it will serve the process better if its functions go beyond that of a facilitator, such as devising a smart card for easier border crossings between Singapore and the Iskandar Development Region. It need not confine itself to technical matters. If it morphs into an investment evaluation panel, so much the better. Singapore should be ready to share with Johor its expertise in river cleansing anytime it is asked. This is in the committee's brief.

Over time, the nature of the panel's work can change. It should be as flexible as Iskandar's investment projections are flexible.