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| Puan Arlida Ariff, CEO, IIB |
Malaysia celebrates 52 years of independence this year. Its phenomenal growth and development is reflected in the ambitious Iskandar Malaysia that's taking shape only a short drive from Singapore.
The woman who's working to help transform this region into a vibrant city by bringing in catalytic projects is Puan Arlida Ariff, the affable CEO of Iskandar Investment Berhad (IIB). In an exclusive interview with PropertyGuru, she talks about a myriad of issues, including the benefits of investing in Iskandar and why you shouldn't worry about security.
Q. Can you tell us more about Iskandar Investment Berhad and its objectives?
A. In November 2006, two agencies were set-up, the Iskandar Regional Development Authority (IRDA), which is the regional development authority for Iskandar and Iskandar Investment Berhad (IIB).
IIB works in close partnership with IRDA to drive investment into Iskandar Malaysia. IIB specialises in developing catalytic projects which stimulate and sustain long-term growth for the region by investing in selected strategic initiatives through shareholding stakes in joint ventures or contribution of land, either through sale or lease, or granting of a concession or development rights.
IIB comprises shareholders from both the federal and state levels. Our objectives are not commercially based only. As an investment-holding company, IIB is a commercial entity and will ensure a continuous return for shareholders while maintaining sustainable growth and international positioning of Iskandar Malaysia.
The intention is that IIB forges ahead and constructs the catalytic and strategic projects within Iskandar, allowing the area to grow and develop further. The reason being that normal private developers would find it difficult to set-up greenfield sites and new industry clusters on their own.
Q. What are the benefits of living in Iskandar?
A. Johor has always been a place where cost-conscious Singaporeans come to enjoy a better quality of life, invest in spacious properties and buy cheaper products.
In the region of Medini, a foreign knowledge worker will be able to enjoy the ease of employment. We have collaborated with IRDA in setting-up the Iskandar Services Centre, a one-stop shop for employers and employees to get their work permits quickly. They won't have to go through a number of organisations or go to Kuala Lumpur, which makes life a lot easier.
If you want to drive a car, you won't have to pay import duties. In Malaysia, import duties are almost 300% for luxury vehicles! This is what we're offering, only in Medini, and if it's successful, then we will offer it in other parts of Iskandar.
Of course, there are some outstanding issues that need to be settled, like easing the traffic flow at both causeways. Discussions are ongoing between Singapore and Malaysia to provide frequent travellers with a special access card. With this access card, you can drive through a special lane where you don't need to show your passport or fill-up immigration forms.
Q. What is the current state of the housing market in Iskandar – ie. demand versus supply?
A. There has been a slight property overhang in the state of Johor over the last five years, because of the location of some residential projects. We've also seen more homes in the single and double storey segment doing well.
The situation now is that we want to create new exciting projects where there is a demand, and where we can create demand and bring in new investors. We want to encourage both foreigners and locals to come and invest in Iskandar.
Q. What advice would you give someone who's considering making an investment in Iskandar?
A. With regards to what type of properties to invest in, I would advise homebuyers to look at properties in the mid to high-end price range. There are also a number of luxury projects that will be ready soon as well. When it comes to our luxury projects, you should not only look at the unit itself, but the environment that the property is going to be built in.
Medini, our flagship development, makes use of the very latest advancements, whether it’s green technologies or the development of facilities that have good energy management systems. Investors should consider those types of projects because they will give you better returns on investment.
Q. It's fair to say that many Singaporeans have security concerns when it comes to staying in Johor. So, how safe is Iskandar?
A. Security is a pervasive issue that we have to look at for the whole of Iskandar. In our role as a catalytic developer, we work closely with IRDA and the local police force for the overall security blueprint of Iskandar. We offer our investors a level of security that’s not available in other parts of Johor, such as an enhanced police force and the latest in crime fighting technology.
How we enforce security in our projects can be used as an example for IRDA and the local police to establish their own security framework, which could include the setting up of an auxiliary police force and the implementation of newer technology.
Q. How has the global economic slowdown affected Iskandar?
A. We have been very fortunate. As a result of the global economic crisis, property hunters and business owners are being more analytical, and are taking time to consider other investment options. Those who never thought of investing in Iskandar in the past are now coming to look at what we have to offer.
The economic crisis has also forced investors to look at places which have less cost of entry, and that’s something Iskandar offers. The cost of entry into our projects is lower than in Singapore or Hong Kong. I believe astute investors who are looking for safer and longer term investment opportunities will find Iskandar to be a much more viable option.
Q. Looking ahead, what is the 3 to 5 year growth plan for Iskandar?
A. We have now started the business cycle plan for 2010, and I’ve given the CEO address to the rest of the team members. The next couple of years will be a busy time as we continue to build up our infrastructure and put new strategies in place to help investors who are moving into Iskandar.
