1 - Situating Johor

Summary

INTRODUCTION

In the southwestern corner of Johor, Malaysia's southernmost state—a new administrative capital has shot up. Nestled amid African oil palms and pockets of red earth where the trees have been peeled away, lies Kota Iskandar. Comprising the state parliament, the offices of the Chief Minister, as well as state and federal government agencies, these buildings bring together elements of Moorish-Andalusian and traditional Malay architecture. Close by and connected via large, but rather empty, boulevards are facilities—many partly owned by Malaysia's sovereign wealth fund Khazanah—such as private hospital complexes, high-tech industrial parks, and university campuses, all expectantly open for business.

A little further south, four islands are being reclaimed in the Johor Strait, the body of water which separates Peninsular Malaysia from Singapore. Backed by a large private Chinese real estate developer and the Sultan of Johor, the Forest City project is slated to house high-end apartments and a hotel, as well as a private hospital and international school catering to an estimated 700,000 residents. The marketing centre on the first completed island receives busloads of prospective buyers from China that are attended to by Mandarin-speaking sales staff. Barges carrying sand and gravel for the reclamation work constantly ply the Strait—encroaching on traditional fishing grounds and disrupting the livelihoods of nearby coastal communities.

Further east along Johor's coastline lies Johor Bahru, the state's economic capital, which is being extensively remodelled. Led by the state government, the revitalization encompasses restoring the historic centre, uncovering and beautifying a formerly submerged river, and building ambitious mixed-use developments. Work is also underway to connect down-town Johor Bahru to Singapore via a rapid transit system, in order to ease the daily commute of the estimated 300,000 people crossing to the city-state to work. When completed, Johor Bahru's urban core will be transformed, sparking interest in potential opportunities as well as unease about rising costs among residents.

Even further along Johor's coast towards the South China Sea, a 20,000 acre project, the Pengerang Integrated Petroleum Complex (PIPC), is being developed. Led by Malaysia's state-owned oil giant, Petronas, this sprawling compound will house an oil refinery, petrochemical plants, liquefied natural gas import and regasification facilities, as well as a deep-water port. Substantial stretches of coastline were cleared and five villages relocated to make this possible. The incoming labour force for the project has increased demand for local services in the area but also driven up rental prices.