Theme Park Land In Johor Could Be Free

Source : The Business Times, April 17, 2008

Johor exploring possibility of S'pore-Iskandar train link

Iskandar Malaysia, the mega development region in Johor, may yet steal an edge over Singapore, especially if it offers choice development sites for free.

Khazanah Nasional Bhd managing director Azman Mokhtar said that the option to offer land to build an anchor theme park for free is a 'possibility'.

Speaking at the Iskandar Malaysia pavilion at Cityscape Asia 2008 yesterday, Mr Azman said: 'The economics of something like that will be taken in toto. You don't just look at it narrowly. Whether it is a loss leader or zero leader is another matter.'

Mr Azman did, however, say that there are many 'permutations' to how a deal with a potential theme park operator could be drawn and explained that this could see Khazanah 'staple' the theme park site together with other development sites as a condition. '(Free theme park land) is a possibility but it will not be a zero,' he added.

Mr Azman also took the opportunity to say reports that Khazanah was talking to theme park operator Walt Disney were inaccurate as the process of selecting an operator was an ongoing process.

He said: 'We have issued memorandum of information to main branded theme park players except for Universal, and this does not preclude local operators.'

The theme park will sit on more than 890ha of land in Iskandar. Giving an indication of a possible theme to the theme park, Mr Azman said it could be an 'eco or nature-based theme park' with no casino component. He added that 'a handful of players' have shown interest.

While the investment value of the anchor theme park has not been revealed, Mr Azman said that since Iskandar (formerly Iskandar Development Region) was relaunched 18 months ago, it has already attracted RM33 billion (S$14.14 billion) worth of investments, representing 70 per cent of its initial five-year target of RM47 billion.

So it is perhaps safe to say that the investment value of the theme park development together with other possible 'stapled' components is not expected to be more than RM14 billion.

Being able to spend capital otherwise set aside for land cost could potentially make the Iskandar theme park competition to be reckoned with. Mr Azman said as much when he noted that the Universal Studios theme park at Singapore's Resorts World at Sentosa is 'relatively small'.

Singapore is nevertheless one of Johor's top three international investors, and Mr Azman reiterated that the plans for Iskandar should be 'complementary'.

Plans to link Johor with Singapore via a rail network further underscores the possible synergy between the two cities.

Also speaking at the Cityscape Asia event was Johor Chief Minister Abdul Ghani bin Othman who said that the state has been exploring the possibility of connecting a mass transit system in Iskandar with the Singapore MRT network.

Adding that it would be 'mutually beneficial', Mr Abdul Ghani revealed that the next ministerial-level meeting on this is likely to take place next month.

Iskandar is expected to be 2.5 times the size of Singapore when completed and investors from Abu Dhabi, Lebanon, Spain and Singapore have already been roped in, while it is also in discussions with investors from India, China and Indonesia.

Some Singapore-based brands that have ventured there include it is JTIC (Jurong Technologies Industrial Corp).