Malaysia’s ambitious regional economic and entertainment hub that aims to rival Hong Kong and Singapore hopes to attract more international interest with the opening of Asia’s first Legoland theme park.

The RM720 million (US$240 million) park is the first high-profile investment in the Iskandar Malaysia, a development corridor in the border town of Johor Baru, across the narrow strait from Singapore.

Iskandar Malaysia spans 220,000 hectares, about three times the size of Singapore and twice the size of Hong Kong.

Founded in 2006, it offers infrastructure and generous incentives for foreign and local investors in tourism and entertainment, finance, manufacturing, logistics and education.

Siegfried Boerst, chief of Legoland Malaysia, which will open on Saturday, said his company was very optimistic of the prospects of the theme park and Iskandar Malaysia.

He dismissed suggestions that it is in the middle of nowhere, insisting that the area will be the next big thing in Asian business and entertainment.

“We are really convinced that this project of Iskandar Malaysia is a very good concept that we feel would be very successful,” he told dpa. “We don’t see it as a risk. We see it as an opportunity.”

Boerst expressed satisfaction with infrastructure development including well-lit, wide roads and the newly rehabilitated Senai International Airport nearby.

“The infrastructure is very good, we have very good road access, people can easily find us,” he said. “What we would like to see is more entertainment development in the area, especially hotels where people can stay overnight.”

The Iskandar Regional Development Authority (IRDA) said several foreign and local investors have settled in the area, including the first overseas branch of British school Marlborough College.

The school, which opened last week in the Nusajaya area, was scheduled to be visited later in the week by Britain’s Prince William and his wife Kate.

The 12.5-hectare campus was expected to attract students from Malaysia, Singapore and nearby Asian countries.

“This is a genuine expansion of one of England’s finest schools. We are thrilled to be part of the Iskandar development,” said Robert Pick, the college’s master.

A Puteri Harbour family theme park, which features the Japanese cartoon character Hello Kitty, is set to open in November.

Singaporean firms largest investors

The development agency said Iskandar Malaysia has drawn investments worth about US$30 billion since 2006. It set a target of US$120 billion of investment by 2025.

Singaporean companies have so far been the largest foreign investors in Iskandar Malaysia with investments totaling RM4.5 billion as of December 2011.

Singapore companies were keen to invest in the manufacturing and service sectors, especially in education and health care.

Ismail Ibrahim, chief executive officer of the IRDA, conceded that global economic uncertainty and the protracted eurozone crisis have affected efforts to attract more investments.

He stressed the need to be more creative in tailoring packages for specific investors to compete with economic zones in nearby nations.

“Iskandar Malaysia has always been enjoying a lower cost of doing business all these years, why not capitalise on that?” he said.

Ismail also underscored efforts to upgrade infrastructure in telecommunication, roads and security as well as a ready pool of skilled workers.

The business magazine fDi has ranked Iskandar Malaysia as the fourth-best international investment destination, behind the Dubai Airport Free Zone, the Dubai International Financial Centre and Shanghai’s Waigaoqiao Free Trade Zone.

- dpa