- The Star reported that the Medini region in Nusajaya, Iskandar Malaysia is set to continue enjoying special tax holidays and other incentive packages. They include zero restrictions on foreign ownership, exclusion from the RM1mil threshold for foreign property buyers as well as the Real Property Gains Tax (RPGT).The new extension will see such benefits - originally due to expire on 31 December 2015 – being extended by another 10 years.

- To recap, the 902ha Medini region was conceptualised in 2007 as part of the 9712 ha Nusajaya zone – one of five flagship development zones in Iskandar Malaysia. Medini itself is broken down into three developments clusters; i.e. the financial district, Medini Central and lifestyle & leisure.

- The Star report quoted Iskandar Region Development Authority (IRDA) CEO Datuk Ismail Ibrahim as indicating that three new growth nodes have also being identified to accelerate the development potential of Iskandar Malaysia.

- With a focus on more services-orientated industries, the new growth nodes are Pinewood Iskandar Malaysia Studios (PIMS) that adjoins Medini as well as Danga Bay and Vantage Bay in JB city centre. As such, new incentives would be dished out to PIMS for creativity related projects, Danga Bay (tourism-related) and Vantage Bay (healthcare-related).

- The RM400mil-PIMS (32 ha) is a JV between Khazanah Nasional and UK-based Pinewood Shepperton. This integrated studio is to create over 10,000 jobs by 2020. PIMS is set to enjoy special benefits from now until 31 December 2020.

- The Danga Bay waterfront starts from Lido Boulevard up to Skudai Kiri and the Coastal Highway – and will enjoy incentives from 1 September 2013 until 31 December 2020.

- The incentives for Vantage Bay – fronting Stulang Laut and the Eastern Disperal Link (EDL) – would commence from 1 September 2013 until 31 December 2020. Vantage Bay (a JV between the Johor royal family and Singaporean billionaire Peter Lim) would be spearheaded by Thomson Medical – with components to support the healthcare sector.

- We are not surprised by this latest news, given Medini’s strategic importance to the overall development of Iskandar Malaysia. More importantly, this would provide a renewed kick to existing developers in Medini, namely Mah Sing Group, E&O, Sunway and WCT. Such a move is timely, sentiment on the Johor market has generally been muted in recent months following the government’s cooling measures.

- Similarly, we see some potential spill-over benefit to MRCB’s EDL – particularly with the upcoming Vantage Point project, which is located close by its highway.

Source: AmeSecurities