Mid-East corporations to invest USD1.2 billion in Nusajaya, IM

Three Middle Eastern Investors have signed an agreement with Iskandar Investment Bhd or IIB (formerly known as the South Johor Investment Corporation – SJIC) for an initial investment of USD1.2 billion (RM4.2 billion) in an area of the Iskandar Malaysia (IM) spread across 2,225 acres called Medini.

The three firms are Mubadala Development Company, Kuwait Finance House (M) Bhd and Millennium Investment Company – the urban development arm of Jordan based business conglomerate Saraya Holdings.

Mubadala will lead a consortium as the master concessionaire and land developer (MCLD) to develop a lifestyle and leisure cluster comprising a city centre, golf village, amusement bay, residential district and medical wellness village. This development will take up some 1,240 acres and would see investments amounting to RM1.8 billion.

The second consortium, led by KFH’s unit called Al Nibras 2 Ltd as the MCLD, will invest RM1.15 billion in a 620-acre site for a logistics village, creative park and heritage district.

The third consortium has Millennium as the MCLD for a 365-acre International Financial District, investing RM1.1 billion, turning Iskandar Malaysia into a model for smart growth and a global destination for commercial and financial services.

A memorandum of Understanding was signed between IIB and Abu Dhabi-based Aldar Properties PJSC. Aldar will serve as the master development manager for Medini.

Investors	Mubadala Development Company	Al Nibras 2 Ltd – a unit of Kuwait Finance House	Millennium Development Investment Company - urban development  arm of Saraya Holdings.
Land Area	1,240 acres	620 acres	365 acres
Investment RM	USD 0.5 billion (RM 1.8 billion)	USD 0.33 billion (RM 1.15 billion)	USD 0.31 billion (RM 1.1 billion)
Development	Lifestyle and leisure cluster: City Centre Golf village Amusement bay Residential district Medical wellness village	Logistics village Creative park Heritage district	International Financial District
	Aldar Properties PJSC Master Development Manager - Medini

The IRDA Incentive & Support Packages - Medini
Announced 9th October 2007

There are 4 available packages announced:

1. IDR-status companies
   
2. Approved developers
   
3. Approved development managers
   
4. Foreign knowledge workers

Item	Details
Package 1: Incentives for IDR-status companies	10 year income tax break from commencement of operations in respect of income from qualifying activities in the approved node and outside Malaysia or wholly outside Malaysia provided these operations start before the end of 2015 Exemption from withholding tax on payments for services and royalties to non-residents for a period of 10 years from commencement of operations
Package 2: Incentives for approved developers	Income tax break up to year of assessment 2015 on statutory income from the disposal of any right in or over land within the approved node Income tax break up to year of assessment 2020 on statutory income from the rental or sale of buildings within the approved node Exemption from withholding tax or payments made to non-residents services, interest and royalties, up to December 31, 2015
Package 3: Incentives for approved development managers	Exemption from payment of income tax on statutory income from the provision of management, supervisory or marketing services to an approved developer until year of assessment 2015 Exemption from withholding tax on payments made to non-residents for services up to December 31, 2015
Package 4: Foreign knowledge workers	Allowed to import or purchase a duty-free car for their personal use

Item	Details
Non-fiscal incentives	Exemption from Foreign Investment Committee rules Flexibilities under foreign exchange administration rules make and receive payments in foreign currency with residents borrow any amount of foreign currency from licensed onshore banks and non-residents invest any amount in foreign currency assets onshore and offshore Retain export proceeds offshore Unrestricted employment of foreign knowledge workers Exemption from statutory rules that state companies must have Bumiputra participation of at least 30% equity
Incentives for local and foreign investors: Qualifying sectors and activities Note: Not exhaustive. May be reviewed and revised from time to time	1. Creative and related services industries creative and design services talent management services film and television games and animation online and mobile content generation and advertising online and mobile content aggregation and enablers creative research and development distribution and marketing of creative content integrated media and content services visual and performing arts 2. Educational Services universities colleges skills training institutions R&D institutions Regional-based centres for training 3. Financial advisory and consulting services Islamic financial services Business process outsourcing or offshoring Corporate consultancy and advisory services 4. Healthcare and related services hospitals and alternative medicine centres integrated dental and orthodontic services healthcare R&D integrated lab services 5. Logistics integrated supply chain services high value supply chain services and solutions 6. Tourism hotels theme parks, amusement and family entertainment centres and cultural centres conference centres and exhibition centres regional operation of hotel and leisure services