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Investors should not worry about on-going tension between Malaysia and Singapore

ISKANDAR PUTERI (Dec 11): Existing and potential investors in Johor should not be concerned about the on-going tension between Malaysia and Singapore with regards to airspace and maritime boundaries.

Johor’s International Trade, Investment and Utilities Committee Chairman Jimmy Puah Wee Tse said he is confident that both Governments are striving to solve the matter.

“I think this (the on-going tension) is being dealt with and we are confident that the Federal government and Singapore can resolve this matter amicably soon. I do not think it would affect any investor, especially those from Singapore,” he told reporters after the opening ceremony of the DHL Global Centre of Excellence (GCOE) here today.

Also present were Iskandar Malaysia GCOE Managing Director Philip Chu and Iskandar Investment Bhd (IIB) President and Chief Executive Officer Datuk Ir Khairil Anwar Ahmad.

Puah said Johor is still the preferred destination for Singapore investors.

“This is clearly because Johor has become a regional hub for logistics. You just imagine, if you have so many goods and products (to sell), one of the factors you should take into account is the cost (of shipping to other countries).

“Johor is close to the Straits of Malacca and with our well-developed interconnecting infrastructure such as transportation network, port and others, we are en route to becoming a regional hub for lots of things,” he said.

Over the past weeks, relations between Malaysia and Singapore have been rocked by disputes over air and maritime boundaries.

However, Malaysia said yesterday that the country would take effective measures to de-escalate tensions with Singapore.

On another note, Puah said the logistics sector is a way for Johor to develop its economy and complements the strategic collaboration between DHL and IIB in setting up the GCOE in Iskandar Puteri.

The companies have invested over US$2 million in the centre.

“The Johor State government will continue to support and encourage more public and private corporations to support the GCOE in the future, thus making Johor an attractive investment destination,” he said.

The GCOE, which started operating today, will provide supply chain consultancy services and support businesses in designing tailored logistics solutions for some of Iskandar’s key industries, including automotive, energy, engineering, manufacturing, life sciences, healthcare and technology.

The centre is also capable of powering the region’s logistics ambitions through networking sessions and workshops where companies and industry experts come together to share best practices and brainstorm innovative ideas that will form the future of Iskandar Malaysia.

Source: TheEdgeMarkets