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Investment & Expansion

Iskandar Malaysia targets high-value investment after RM525.26 billion inflow

IRDA says its next development phase will emphasise productivity, with efforts aimed at retaining investment benefits in the local economy.

Industrial buildings and transport infrastructure in Johor
Photo: The Edge Malaysia

Iskandar Malaysia is prioritising higher-value investment after attracting RM525.26 billion over 20 years, exceeding its original target of RM383 billion, according to the Iskandar Regional Development Authority (IRDA). The authority said development in the region had created over a million jobs while average household income had more than doubled.

Productivity will be a priority in the coming development phase, IRDA said. Its focus spans advanced manufacturing, industries centred on digital technology and data, logistics, and financial and business services. It aims to keep investment benefits within the local economy through Malaysian enterprise development, domestic supply chains, innovation and technology transfer.

Separately, the Johor-Singapore Economic Zone (JS-SEZ) registered approved investments totalling RM76.98 billion in 2025. Deputy Prime Minister II and Minister of Energy Transition and Water Transformation, Datuk Seri Fadillah Yusof, said the zone offered opportunities for greater regional economic integration and high-value investment.

Fadillah said the next phase should be judged on the opportunities it creates, the strength of its economic ecosystem and enduring benefits for businesses and communities, rather than investment totals alone.

IRDA said competition within Asean meant land and cost considerations were insufficient on their own. Investors also weigh infrastructure, energy, workforce skills, digital connections, transport efficiency and regional market access. Realising the JS-SEZ’s potential would require coordination across infrastructure, energy and talent development, as well as customs, immigration and cross-border connections, it said.

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