Johor Umno 'welcomes Singapore investors'

RESPONSE TO MM LEE'S REMARKS ON IDR
Najib says division backs Iskandar Development Region's growth

The Straits Times, July 2, 2007

KUALA KANGSAR (PERAK) - JOHOR Umno fully supported the growth of the Iskandar Development Region (IDR), said Malaysian Deputy Premier Najib Tun Razak yesterday.

He told reporters after opening an Umno divisional meeting here: 'As such, it isn't true if anyone says that there is no support (for the IDR) from Johor Umno.

'In planning for the development of the IDR, we certainly take into consideration the interest of all parties.'

After all, he pointed out, the man co-chairing with Prime Minister Abdullah Badawi in the decision-making IDR committee was none other than Johor Menteri Besar and Johor Umno liaison head Abdul Ghani Othman.

'And, Singapore investors can be accepted and we welcome them as investors in the development planning framework for the IDR which had already been drawn up,' he added.

His assurance came a day after Minister Mentor Lee Kuan Yew told Singapore's Berita Harian that, among others, Umno leaders in Johor saw Singapore as always acting in its own interests as well as threatening Malaysia's sovereignty.

As MM Lee put it: 'Potential investors from Singapore must seriously ask themselves when these attitudes will change, and how welcome their investments will be.'

Indeed, right after Datuk Seri Abdullah and his Singapore counterpart Lee Hsien Loong agreed in mid-May to set up a joint ministerial committee to smoothen bilateral cooperation in the IDR, some Malaysians groused long and loud that the committee meant that Singapore could dictate how the IDR was to grow and exploit it for its own ends.

Noting that many among the dissenters were Johoreans, Datuk Seri Abdullah has had to reassure Malaysians repeatedly that Malaysia alone will decide what the IDR would be.

Nevertheless, some were now taking issue with MM Lee's mention of Umno Johor as being cautious of Singapore investors.

Yesterday in Kluang, Johor, Umno Youth chief and Education Minister Hishammuddin Tun Hussein said of MM Lee's remarks: 'To say that we (Johor Umno leaders) do not welcome (Singapore's investment in the IDR), I feel is purely his personal perception and his (MM Lee's) perception is influenced by history.'

Relations between the two countries have been tetchy at best since Malay-dominant Malaysia expelled Chinese-dominant Singapore in 1965, although they have thawed a bit since Datuk Seri Abdullah and Prime Minister Lee took over the respective reins in 2003 and 2004.

Opposition from Umno Johor matters because Johor is Umno's birthplace and stronghold.

Last April, for example, bilateral talks on replacing the Causeway with a new bridge were scuppered apparently after protests from Umno Johor over Singapore's requested trade-offs, that is, permission to buy Malaysian sand, and use Malaysian airspace.

It was left to Foreign Minister Syed Hamid Albar to sound a conciliatory note yesterday.

After reiterating that the IDR welcomed all foreign investors, including Singaporeans, he said: 'The government cannot give special treatment to any country including Singapore.

'We want all countries including Singapore who are interested to invest in IDR, they are welcome and don't misconstrue as if we don't want investment from that country (Singapore).'

MM Lee had told Berita Harian that the 2,217-sq-km IDR will put pressure on Singapore, just as China's new economic zone of Shenzhen had done to Hong Kong.

But, he pointed out, unlike Hong Kong which got leg-ups like tourism boosts and business opportunities from China, Singapore could not expect such generous treatment from Malaysia.

To that, Datuk Seri Najib said yesterday that Singapore investors who were keen on the IDR would be given the same terms and treatment as investors from other countries.

For example, he said, if the IDR was 'exempted' from Malaysia's usual affirmative action policies for businesses, Singapore companies in the IDR need not comply with such policies.

But, he stressed, that did not mean the government would exclude totally bumiputera interests in the IDR.

BERNAMA