http://www.channelnewsasia.com/palmnews/afp_asiapacific/view/227428/1/.htmlMalaysia may reveal details of South Johor Economic Region on Friday29 August 2006 1902 hrs (SST) 1102 hrs (GMT)
SINGAPORE : Malaysia may reveal preliminary details about its plans for a huge, special economic zone in southern Johor this Friday when Prime Minister Abdullah Ahmad Badawi presents the national budget.
That is according to Minister for International Trade and Industry Rafidah Aziz, who is in Singapore on a business visit.
She also adds that the recent proposal to levy a RM20 tax on foreign cars entering Johor has been scrapped. Earlier this year, Malaysia announced plans to build a special zone in south Johor as part of efforts to transform the state into an economic hub.
As much as RM15 billion worth of developments may be earmarked to develop the South Johor Economic Region.
But the Malaysian trade minister says the government is committed to making Johor a special area, one that is capable of competing with regional leaders such as Singapore.
"The Malaysian government is committed towards promoting Johor as an economic hub. With the announcement of the South Johor Economic region, which encompass the districts of Johor Baru, Pasir Gudang and Kulai as well as Jeram Batu, Sungai Karang and Serkat, we will see contiguous to Singapore a new hub," says Malaysia's Minister for International Trade and Industry Rafidah Aziz.
The special zone is expected to cover a 2,217 square kilometre area, and Malaysia is widely expected to announce a raft of incentives to get foreign firms to come on board.
And businesses in Singapore have been urged to explore the new opportunities it offers.
"We are looking forward to the details of the South Johor Economic Region plans being released. When that is released, of course, we'll study it in detail and like what Minister Rafidah said, Malaysia wants to publicise it and Singapore companies will see how we can fit the plans of the two countries working together," says Singapore's Minister of Trade and Industry Lim Hng Kiang.
"This is natural because of the proximity, the lower land cost and lower wage cost. Johor's economy complements very well with Singapore's economy," he added.
Minister Rafidah says the much-awaited details of the special zone could be announced this Friday.
"I think in the budget it might come out. Wait for (another) three days," says the Malaysian trade minister.
She also adds that plans to introduce a RM20 levy on foreign cars entering Johor, with effect from September 1, has been scrapped.
"Johor says 'tak ada', otherwise there will be an announcement, " said Minister Rafidah. Singapore investments in Malaysia totalled RM2.9 billion last year - up by more than 50% - with more than half going to Johor state.
- CNA /ls
