Malaysia has unveiled an ambitious plan to turn Johor, which lies next to neighbouring Singapore, into a hub for business, tourism and education, a report said today.

The "master plan" involving the federal government's investment arm, Khazanah Nasional, will coordinate a series of high-profile development projects including an RM800 million Customs, Immigration and Quarantine complex.

Prime Minister Abdullah Ahmad Badawi said a plan was needed to ensure that no facilities would be duplicated and that there would be no unnecessary competition among projects, the New Straits Times reported.

"What is happening here should complement any new developments in Singapore," said Abdullah, referring to Singapore's plans to develop two casino resorts.

The Singapore government announced plans in April to construct the two resorts to spice up its staid image and attract more tourists despite strong domestic opposition to new gambling operations.

The integrated resort projects, which should be operational around 2009, will also offer convention facilities, hotels, theaters, museums and theme parks.

State capital to shift

Abdullah said the Johor scheme was not just a reaction to Singapore's plans, insisting it was designed "in the best interests of the people of Johor."

Development of Johor's waterfront properties, as well as the customs and immigration complex, has been underway for the past few years. The state is linked with Singapore by road and rail.

The state's administrative capital will also shift from Johor Baru to Bandar Nusajaya in the southern tip of Johor, closer to neighbouring Singapore.

Development of the capital, which will feature Moorish architecture with Islamic elements, is expected to be completed by 2007 at the cost of RM1 billion, the New Straits Times reported.