In 2006, Johor's economy grew in line with Malaysia's economic development. Johor's GDP Growth was 6.1% whilst Malaysia's GDP Growth recorded at 5.8%.
The manufacturing sector faced tribulations and several sectors had shown sluggish performance due to a drop in export and weak local markets related to the slow development of the construction sector.
The services sector saved Johor's economy. This sector showed continuous growth at an average of 8% as a result of an increase in the transportation sector.
GDP's Performance and Yearly Growth for Johor
Sector
2005
2006
2007
Agriculture, Forestry & Fishery
9.7%
9.8%
9.6%
Rocks & Minerals
0.3%
0.2%
0.2%
Manufacturing
40.9%
40.3%
40.0%
Construction
2.7%
2.4%
2.3%
Services
46.3%
47.4%
47.9%
Annual Growth Rate
5.1%
6.1%
6.7%
Source : Economic Report for State 2000 - 2006, UPEN JOHOR
In 2006, three masterplan reports which will bring economic changes for the whole of Malaysia and Johor State were announced. The reports include :
The 9th Malaysia Plan (RMK9)
Third Industrial Master Plan
Comprehensive Development Plan for SJER or Wilayah Pembangunan Iskandar (WPI).
The Third Industrial Master Plan provides details of the 9th Malaysia Plan in the industry sector.The Comprehensive Development Plan for SJER will have a strong impact towards the growth and direction of development for the State of Johor and indicating the State Federal Government commitment to further motivate Johor's economic growth into a progressive state with IDR providing world class infrastructures (land and soft), quality of life and environmental quality.
The impact of the implementation at IDR will be felt in 2007/2008 when large projects are executed. These projects will henceforth increase the growth rate of IDR at a forecasted level of 8% and likewise the whole State of Johor will prosper via a forecasted growth rate of 7%
Investment Outlook In Johor2008
In 2008, Johor recorded a total investment of RM11.71 billion.The total Foreign Direct Investments (FDI) received amounted to RM9.4 billion, whilst domestic investments stood at RM2.32 billion.
Johor recorded the second highest recipient of FDI in Malaysia, behind Sarawak (RM13.18 billion) and followed by Selangor (RM9.0 billion), Pulau Pinang (RM5.09 billion) and Malacca (RM3.45 billion).
The FDI received in Johor, represents 20..39% of the total FDI in Malaysia at RM46.1 billion.
This has hallmarked Johor being one of the highest receiver of FDI for two consecutive years since 2005.
The total investment in Johor for the year 2008 shows increase compared to the previous year 2007, approximately 21.09% or (FDI: RM6.75 billion; Domestic: RM2.5 billion).
Approved Manufacturing Projects In Johor, January 2009
TYPE
#
EMPLOYMENT
DOMESTIC (RM)
FOREIGN (RM)
TOTAL CAPITAL (RM)
New
5
138
685,847,000
455,950,000
1,141,797,000
Expansion
3
38
0
361,767,000
361,767,000
Total
8
176
685,847,000
817,717,000
1,503,564,000
INVESTMENT TREND IN JOHOR
Expansion vs New Projects
The Investment trend in Johor for expansion projects still remained healthy, where Johor recorded RM1.61 billion (13.75%), whilst new projects recorded a total of RM10.10 billion (86.25%).
FDI vs Domestic
In terms of FDI and Domestic Investments contribution, the trend still remained the same as previous years, where FDI contributed 80.2% and domestic investment 19.8%.
As at December 2008, the largest contributor of FDI were from Spain with a total investment of RM4.16 billion, followed by Japan at RM2.44 billion, Singapore at RM0.91 billion, Switzerland at RM0.62 billion and Netherlands at RM0.59 billion.
Main Sectors of Industry
The three main sectors of industry in Johor are Basic Metal Industry at RM7.3 billion, followed by Electrical & Electronics at RM1.2 billion, Petrochemicals Products (RM912 million), Food Industry (RM888 million), Chemical & Chemical Products (RM338 million) and Fabricated Metal Industry at RM346 million.
Industry locations that received most investment
The five main industrial location in Johor that received the most investment in 2008 were Tanjung Langsat (RM7.5 billion), Pasir Gudang IE (RM905 million), Tanjung Agas IE (RM630 million), Johor Bahru (RM356 million) and Kluang RM234 million.
JOHOR STATISTICS JANUARY 2009
(all statistics are taken from Malaysian Industrial Development Authority)
APPROVED MANUFACTURING PROJECTS WITH FOREIGN PARTICIPATION IN JOHOR, JANUARY 2009
COUNTRY
#
FOREIGN INVESTMENT (RM)
Singapore
2
455,400,000
Japan
2
361,167,000
Switzerland
1
600,000
Taiwan
1
550,000
TOTAL
6
817,717,000
APPROVED MANUFACTURING PROJECTS IN MALAYSIA (BY STATE), JANUARY 2009
STATE
#
EMPLOYMENT
DOMESTIC INVESTMENT (RM)
FOREIGN INVESTMENT (RM)
TOTAL INVESTMENT (RM)
Johor
8
176
685,847,000
817,717,000
1,503,564,000
Kedah
5
1,354
33,671,781
261,592,961
295,264,742
Terengganu
1
130
0
290,300,000
290,300,000
Pulau Pinang
12
757
190,221,520
22,473,000
212,694,520
Selangor
18
845
92,294,982
98,128,872
190,423,854
Sabah
3
262
14,775,000
23,275,000
38,050,000
Negeri Sembilan
2
50
6,000,000
24,000,000
30,000,000
Pahang
2
132
15,763,350
0
15,763,350
Melaka
1
96
14,472,429
0
14,472,429
Perak
3
121
150,000
9,294,669
9,444,669
Sarawak
1
42
499,998
0
499,998
TOTAL
56
3,965
1,053,696,060
1,546,781,502
2,600,477,562
APPROVED MANUFACTURING PROJECTS IN JOHOR BY LOCATION, JANUARY 2009
LOCATION
#
EMPLOYMENT
DOMESTIC INVESTMENT (RM)
FOREIGN INVESTMENT (RM)
TOTAL INVESTMENT (RM)
Pasri Gudang IE
1
47
679,800,000
453,200,000
1,133,000,000
Sri Gading IE
2
0
0
361,167,000
361,167,000
Johor Bahru
1
20
4,607,000
0
4,607,000
Skudai
1
35
300,000
2,200,000
2,500,000
Senai I IE
1
21
550,000
550,000
1,100,000
Tebrau IE
1
38
0
600,000
600,000
Batu Pahat
1
15
590,000
0
590,000
Total
8
176
685,847,000
817,717,000
1,503,564,000
APPROVED MANUFACTURING PROJECTS IN JOHOR BY INDUSTRY, JANUARY 2009
