The Puteri Harbour International Ferry Terminal in Iskandar Puteri, developed by UEM Sunrise, allows for travel to Batam and Tanjung Balai in Indonesia.

Positive momentum from JS-SEZ strengthens and development track record boosts confidence 

By Yip Wai Fong

The city of Iskandar Puteri has always been endowed with expectations. 

First launched by the late Tun Abdullah Ahmad Badawi as Nusajaya in 2007, it was one of the five flagship zones of the Iskandar Development Region (IDR), occupying 24,000 acres out of IDR’s 550,000 acres.  

Nusajaya was designated to be Johor’s new administrative centre as well as the hub for medical services, higher education and high-tech industries. Development boomed in the few years that followed – the new state administrative centre Kota Iskandar was completed in 2009, Educity’s first foreign university opened in 2011, Puteri Harbour’s and Medini’s first residential project was launched in 2012 and Nusajaya Tech Park in 2014 – among other landmark developments that generated much excitement for Nusajaya, which was later renamed Iskandar Puteri in 2016. 

Eventually, the highs of the booms later descended into cycles that included changes in governments, the outbreak of the Covid-19 pandemic as well as over-development. For a few years, Iskandar Puteri witnessed property prices plummeting, negative returns and the closure of businesses such as the Sanrio Hello Kitty Town, Somerset Puteri Harbour and the exit of Pinewood Group, the former partner in Iskandar Malaysia Studio. But during the same period, new townships such as Eco Botanic and Sunway City Iskandar Puteri emerged and over time grew vibrant alongside more established ones such as Bukit Indah and Mutiara Rini, banking on developed amenities such as the EduCity and proximity to the Second Link. 

The changing tide is now gaining accelerated momentum. Under the JS-SEZ, Iskandar Puteri is re-designated as a flagship zone, with focus sectors such as manufacturing, business services, digital economy, health and tourism. There are new expectations for Iskandar Puteri again but this time, it is based on the sure footing of existing infrastructures and developments that have been slowly but surely generating value as well as the government’s continued support. 

For instance, Iskandar Puteri is now one of the major destinations for data centres, located at the Nusajaya Tech Park as well as the Nusa Cemerlang Industrial Park. The former also now houses the regional production facility for South Korea’s SPC Group, the parent company of Paris Baguette.

“What’s particularly exciting about Iskandar Puteri right now is the growing interest in industrial developments. In our original master plan, the industrial component was relatively modest. However, due to strong market demand, we’ve increased its allocation to approximately 28% of the current master plan,” said UEM Sunrise officer-in-charge and chief financial officer Hafizuddin Sulaiman. UEM Sunrise, part of the UEM Group, is the master developer of Iskandar Puteri. 

He hopes that the industrial components would attract more manufacturers and not just the data centres.

“Yes, we are seeing a lot of attention around data centres. But we like to think beyond just building data centres. Real manufacturing activity brings about the need for a supporting ecosystem: residential areas, services, amenities and so on,” said Hafizuddin. 

An aerial impression of the Gerbang Nusajaya Industrial Park. Picture courtesy of UEM Sunrise.

Magnet to workers across the border

While proximity to the Second Link has been Iskandar Puteri’s strength, it has been further enhanced with the recent opening of the Gerbang Nusajaya Interchange constructed by UEM Sunrise. The interchange would reduce the travel time to the Tuas Link from about 30 minutes to just 15 minutes. 

The cross-border population is very drawn to the connectivity factor in Iskandar Puteri. Recent launches by Sunway Property, such as Sunway Aviana Residence, which offer a total of 239 landed strata units, have been sold out within nine months while the Sunway Maple Residence, with a total of 156 landed units, have been sold out within just two hours of their launch in late 2024. Similarly, all 272 landed units of Aspira Hills were also fully taken on its first launch day, following in the footsteps of the strong response for its earlier launches of Aspira LakeHomes. The launch of DiReka Square, comprising 67 units of two- and three-storey shop offices in Puteri Harbour, also witnessed full bookings. Tropicana Corporation Bhd’s Tropicana Uplands at Gelang Patah, also a landed home development, registered 76% take-up at its first phase launch.

Citing Napic, Knight Frank Malaysia director for Johor, Lee Kun Thye said landed property is the most in-demand type in the Johor district, which includes Iskandar Puteri. 

“For two- to three-storey terraced houses, a significant share of new launches in 2022 were priced between RM600,000 and RM800,000 per unit, representing a notable 37.5% of total launches in this category. However, there has been a noticeable upward shift in pricing, with a significant portion of units launched within the RM700,000 to RM900,000 price range, accounting for 52.5% and 43.0% of launches in 2023 and 2024 respectively,” she shared.

“We expect that with the rising prices for properties located in Johor Bahru city centre area, there will be spillover effects to city fringe and suburb areas, including Iskandar Puteri, which is located near the Second Link to Singapore. Notable township developments like Horizon Hills, Eco Botanics, Sunway Iskandar, Nusa Idaman and East Ledang offer a variety of landed residential properties including terraced, cluster, semi-detached, detached and bungalow lots, targeting different segments of purchasers,” she pointed out. 

Sustainable city

According to the Iskandar Puteri City Council (MBIP), the city spans 338.5 sq km and has a population of 525,351 people. It is also one of the few that received two five-diamond awards from Malaysian Green Technology and Climate Change Corporation (MGTC) at the Low Carbon City Awards 2024, partnering with Sunway City Iskandar Puteri (SCIP). 

SCIP chief executive officer Gerard Soosay said several measures were taken at the township, spread across 2,000 acres and with 7,000 residents, to secure its low-carbon city status.

“Firstly, all buildings in the township are designed to meet green building certification requirements. For instance, we emphasise natural lighting and ventilation by strategically incorporating windows, skylights and other openings. Doing so reduces the need for artificial lighting during the day and reduces the need for mechanical cooling systems, which then saves energy.

"In the same vein, our catalytic projects including Sunway Big Box Retail Park, Sunway Hotel Big Box, Wisma Sunway Big Box and Sunway International School are installed with solar panels. We utilise the available roof area of these developments for the installation of solar panels, which help promote sustainable power generation and reduce carbon emissions,” he shared. 

“All the commercial and mixed developments in SCIP are also currently equipped with EV charging stations, in line with our efforts to encourage the adoption of electric vehicles and with Sunway’s goal of reducing carbon emissions,” he added. 

To spread community awareness of sustainable living, Soosay said the township also regularly conducts community engagement activities. 

“For example, we conduct food composting sharing sessions at Sunway Emerald Lake, SJK (C) Cheah Fah and Sunway International School to spread awareness about the benefits of composting and to foster a culture of sustainability from a young age. The community can also be involved in Sunway Emerald Lake’s maintenance by throwing mudballs – a special water treatment technique – into the lake,” he shared. 

The effort at SCIP is in tandem with the local council’s initiatives throughout Iskandar Puteri, including programmes to reduce landfill waste and promote household-level recycling. MBIP has established 11 recycling centres across Iskandar Puteri, such as at Masjid Taman Pulai Indah, Taman Impian Emas Community Recycling Centre, Sunway Boulevard and Taman Bukit Indah and Taman Mutiara Rini. In addition, the council is offering RM700,000 in grants to fund low-carbon initiatives this year. 

Iskandar Puteri City Council (MBIP) has set up a recycling centre at Taman Pulai Indah here in Johor Baru to make it easier for public to carry out recycling.

Better days are coming 

With the JS-SEZ, Soosay said SCIP is excited to be part of Johor’s transformation and looks forward to more visitors and residents.

“As one of the flagship zones within the JS-SEZ, SCIP is strategically positioned to benefit from increased economic activities and investments. We expect initiatives like the JS-SEZ and RTS Link are set to further transform the township into a highly sought-after business, residential and lifestyle destination,” he remarked.

Hafizuddin also expressed optimism for JS-SEZ and the ripple effect it will have on Iskandar Puteri, where UEM Sunrise holds 4,600 acres of land. 

“Many people ask me: How is this different from what was done before—like during the earlier initiatives? The key difference is that JS-SEZ is a joint effort with Singapore. Previous efforts, such as Iskandar Malaysia, were one-sided. Now, with bilateral commitment, the momentum is real.

Specifically, under Flagship B (Iskandar Puteri), where our developments are located, the potential to crystallise value and attract cross-border investments is higher than ever,” he said. 

Born out of a public-private partnership, Iskandar Puteri has come far and stood the test of time. As the city once again raises hopes and anticipation among locals and businesses, perhaps this time, the hopes can find assurance in the city’s resilience, having been shaped by the good hands responsible for its developments.

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