The response from the foreign investors to our Iskander Development Region project is quite evident. After a few months of its launching, it has received lukewarm response from foreign investors.

This prompted Musa Hitam, a member of the Iskandar Development Region Authority (IRDA) advisory council to say unequivocally that it was time to give up the New Economic Policy (NEP) for the success of the Iskander Development Region (IDR). Following this, our PM declared that six sectors would not have to have bumiputera equity participation.

For 50 years, our Malay political masters have deemed it fit to cling to the NEP policy and now - without much persuasion - they have willingly relinquished that condition for the Iskandar Development Region. Why?

The simple reason is that Malaysia has missed the boat. Most of the FDI that we are targeting has taken flight to China's economic region of Shenzhan, Hangchou and to India's Mumbai and Bangalore. Of late, whatever FDI left has gone to Vietnam. So who are we trying to attract to the IDR? In order to answer this question, let us examine the profile of investors to Malaysia.

For the last 10 years, the main investors in Malaysia have been the US and Singapore. Both their investments in Malaysia constitute almost 50 percent of all investments in the country. Therefore, based on historical statistics, it would be safe to assume that this would be the same category of investors targeted.

But would Singaporeans be keen to invest in the Iskandar Develoment Region? Obviously not. Why would they want to invest in a country that seem to treat their presence with utter disdain and contempt? The scenic bridge, the sand issue, the use of Malaysian air space and a host of other minor irritants have seen the relationship between the two countries at their lowest level.

No matter what the incentives offered by Malaysia, the Singapore government is definitely not going to take the bait. Further, a successful Iskandar Development Region would be at the expense of Singapore's own development. So logically, it would be in Singapore's interest for the IDR to fail.

As for the Americans, would they want to pour their investment dollars in the Iskandar Development Region? Definitely not, especially when their president was recently charged under a 'war crimes tribunal' held in Kuala Lumpur and presumably under the patronage of the government.

By our own volition, our government has foolishly offended the two most likely investors to the country and any amount of incentives or cajoling is unlikely to have any positive impact. Without the participation of these two major investors, the Iskandar Development Region is destined to falter.