Major theme park players are keen to invest in Malaysia except for Universal Studios which is involved in a US$3.4 billion resort project in Singapore, a top Khazanah Nasional official said today.

Azman Mokhtar, managing director of state investment arm Khazanah Nasional, said the theme park that will be built in southern Johor state will complement Universal in neighbouring Singapore.

"All the the major names in the theme park business - all the major brands - are talking to us with the exception of Universal," he said.

"We have taken into account the developments in Singapore in the integrated resort and we believe there is very much room for both parks," Azman told reporters.

"In fact, not only room - I think they will actually be reinforcing each other."

Steady progress

The theme park in Malaysia's southern-most Johor state is part of the RM17.7 billion Iskandar Development Region (IDR) where cash-rich Khazanah is a major investor.

Azman did not name the interested parties but said talks were in the early stages. "Suffice to say ... we are making steady progress."

The IDR, which was launched in November last year, also includes exclusive residential homes, a logistics hub, a waterfront city, a medical hub and an educational city.

The development will be 2.5 times the size of Singapore when completed and Prime Minister Abdullah Ahmad Badawi has refered to it as Malaysia's most important and ambitious initiative.

Malaysia has long dreamed of turning Johor into a major metropolis to rival gleaming Singapore which lies across a narrow waterway.

Singapore's Universal Studio's theme park is part of the casino resort being developed on Sentosa Island.