Business Today
13 October 2025
Iskandar Investment Supports Budget 2026: Driving Johor’s Growth Through JS-SEZ, Talent Development And Green Innovation
Iskandar Investment Berhad (IIB) welcomes and expresses its full support for Budget 2026, tabled by YAB Dato’ Seri Anwar Ibrahim, Prime Minister and Minister of Finance, with a total allocation of RM470 billion.
IIB recognises the Government’s strong commitment to strengthening fiscal fundamentals, which is expected to enhance investor confidence in long-term projects in Johor, particularly those involving high-impact investments and sustainable development. As a key catalyst for the development of Iskandar Puteri, IIB remains committed to driving the aspirations of Budget 2026 through strategies that advance regional economic growth, strengthen the talent ecosystem, and expand green and digital innovation initiatives.
The Government’s emphasis on developing southern Johor through the Johor–Singapore Special Economic Zone (JS-SEZ) is a timely and strategic move that positions the region as a vital driver of Malaysia’s economic growth. The implementation of the Invest Malaysia Facilitation Centre – Johor (IMFC-J) and the Johor Super Lane is expected to accelerate investment approvals, enhance governance efficiency, and streamline investor facilitation, aligning with the vision of positioning Johor as Malaysia’s dynamic international investment gateway.
The JS-SEZ has recorded approved investments of RM37.1 billion in the first half of 2025, representing 66% of Johor’s total investments. This reflects strong investor confidence in the region’s economic potential. Johor also emerged as the state with the highest approved foreign direct investment (FDI) in Malaysia for the same period, totalling RM25.5 billion, accounting for more than one-third of the nation’s total FDI in the first half of 2025. This achievement reinforces Johor’s position as a strategic investment hub, driven by investor-friendly policies and the close collaboration between the Federal and State Governments. IIB will continue to play an active role in supporting the implementation of high-impact projects under JS-SEZ to ensure that economic benefits are distributed inclusively to the people and surrounding communities.
IIB also welcomes the RM200 million allocation by Khazanah Nasional Berhad for the implementation of the K-Youth Programme, which will provide work-based training for 11,000 non-degree youth in strategic sectors such as semiconductors, digital technology, engineering, and maintenance, repair and overhaul (MRO). As a strategic implementation partner, IIB will work closely with Khazanah Nasional to ensure the effective rollout of the K-Youth Programme in Johor through an integrated approach involving industry players, training providers, and educational institutions within the state’s talent development ecosystem.
This initiative complements the efforts of the Johor Talent Development Council (JTDC), co-led by IIB, in enhancing graduate employability and developing high-value career pathways through stronger collaboration between academia and industry.
In addition, IIB sees potential to collaborate with the Universiti Teknologi Malaysia (UTM) and the Malaysian Investment Development Authority (MIDA) on Artificial Intelligence (AI) and Research & Development and Commercialisation Innovation (RDCI) initiatives under the National Innovation Agenda. This collaboration will further strengthen Johor’s position as a leading digital development hub and centre for technological innovation in southern Malaysia.
In line with the Government’s sustainability commitment, IIB supports the introduction of the Green Investment Tax Allowance, consistent with the company’s aspiration to encourage low-carbon investments, energy efficiency, and innovative, sustainable urban development across Iskandar Puteri.
IIB also supports the Employees Provident Fund (EPF) initiative to develop student accommodation in collaboration with Universiti Malaya (UM), which reflects the proactive role of Government-Linked Companies (GLCs) in strengthening the rental market and providing affordable housing solutions for students and young Malaysians. IIB applauds the Government’s First Home Buyer Initiative for homes priced below RM500,000, which directly supports the development of Wawari West Park Homes in offering affordable living solutions in Iskandar Puteri.
To ensure long-term financial resilience, IIB is also prepared to leverage Federal incentive frameworks such as GEAR-Up and SJPP guarantees as part of its capital recycling strategy, enhancing investment capacity and sustainable growth.
Aligned with Budget 2026’s Third Pillar – “Championing a High-Value Economy”, IIB aims to position itself as the “Southern Engine for National Rejuvenation”, playing a pivotal role in advancing innovation-driven growth, strengthening cross-border investment networks, and contributing to Malaysia’s overall economic prosperity.
Dato’ Idzham Mohd Hashim, President/Chief Executive Officer of IIB, said:
“Budget 2026 reflects the Government’s determination to enhance the nation’s economic competitiveness through a balanced approach between physical development and human capital growth.
As the master developer of Iskandar Puteri, IIB remains committed to supporting the implementation of JS-SEZ, strengthening the local talent ecosystem through initiatives such as JTDC and K-Youth, and advancing green and innovation-led investments across southern Malaysia.
We believe that the synergy of strategic investments, talent development, and green technology empowerment will accelerate Johor’s progress as a resilient, sustainable, and competitive regional economic hub.”
IIB believes that Budget 2026 not only reinforces the foundations of Malaysia’s economic growth but also accelerates sustainable and inclusive development in Johor. With the strong support of both the Federal and State Governments, IIB will continue to play a leading role as a key driver of Iskandar Malaysia’s economic transformation through high-impact investments, community development, and talent empowerment.