The Iskandar Development Region (IDR) in south Johor will not succeed even with the deep pockets of Petronas and the cheaper labour and land across the causeway if the concerns of investors such as us in Singapore are not properly addressed and resolved. These include:
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Crime - Johoreans and foreigners alike have fallen victims to robberies, car thefts, housebreaking, sexual molestations, drug addicts, et al. Lawlessness in the streets of JB must be stopped.
Failed projects - Half completed buildings abandoned by developers. Shopping complexes in disuse after two or three years in business. Dilapidated shops without occupants. It is depressing.
A lack of discipline and integrity in the police force.
Conflicting signals from the authorities - nobody is sure if Singaporeans are really welcome. The signals change from day to day from the mentri besar, and from other politicians. One day it is 'keep the causeway', the next 'get rid of it'.
Lack of follow through - projects are started with a lot of fanfare and two years on, roads are in disrepair, public phones vandalised, electric cables ripped off, drains are choked, water pipes leak.
Traffic management - Traffic jams on highways, on approaches to the CIQ.
Bureaucracy - Buildings completed but sitting idle for months and months awaiting for occupation licences to be approved.
Transparency - Many things are exceptionally transparent to some but totally opaque to others.
Property glut - Many Johor properties marketed in Singapore 10 years ago have suffered a loss in value. Some are of negative net worth. Local property owners suffer the same fate. Where is the reason for others to put money into property? Property returns are dismal compared to countries elsewhere.
Yes, the country south of the causeway is expensive but the infrastructure works and the administration is efficient. Investors are prepared to pay more for a place they can count on to deliver the promises.
It is my opinion that if the IDR Big Bang is not to become a sad testimony of an inefficient administration five years on, the Malaysian and Johor state government should address the above issues as a matter of top priority. These are more urgent than issuing permits to build more shops and condos.
