Why Iskander Development Region Will Fail

The response from the foreign investors to the Iskander development Region is quite evident.After few months from its launching, the Iskander Development Region has received lukewarm response from the foreign investors.This prompted Tun Musa Hitam,amember of the Iskander Development region Authority(IRDA)advisory Council to say unequivocally that'it was time to give up the New Economic Policy(NEP) for the success of the Iskander development Region(IDR).'On 22nd March 2007, our P.M declared that six sectors would not have to have Bumiputra equity participation.
For 50 years our malay political masters have deemed fit to cling to the NEP policy and now without much persuasion they have willingly relinquish that condition for the Iskander development Region.Why?
The simple reason is that Malaysia has missed the boat.Most of the FDI's that we are targeting have taken flight to China's economic region of Shenzan,Hangchou and to India's Mumbai and Bangalore region.Of late whatever FDI left have gone to Vietnam.So who are we trying to attract to the IDR? In order to answer this question let us examine the profile of the investors in Malaysia.
For the last ten years, the main investors in Malaysia have been the U.S and Singapore.Both their investments in Malaysia constitute almost 50% of all investments in the country.Therefore based on historical statistic it would be safe to assume that this would be the same category of investors targeted.
But would Singaporeans keen to invest in the Iskander develoment Region?Obviously not.Why would they want to invest in a country that seem to treat their presence with utter disdain and contempt.The scenic bridge, the sand issue, the use of Malaysian air space and a host of other minor irritants have seen relationship between the two countries at their lowest level.No matter what the incentives offered bythe Malaysian counterparts, the Singapore govt is defintely not going to take the bait.Further, a successful Iskander Development project would be at the expense of Singapore's own development.So logically it would be in Singapore's interest for theIDR to fail.
As for the Americans, would they want to pour their Investment dollars in the Iskander development region.?Definetely not, especially when their President was recently charged under the war crimes tribunal held in kuala Lumpur and presumably under the patronage of the govt.
By our own volition, our govt have foolishly offended the two most likely investors in the country and any amount of incentives or cajoling would unlikely to have any positive impact.Without the participation of these two major investors the Iskander development Region is destined to fail.