Malaysia will work out various incentives to attract local and foreign investors to the South Johor Economic Region (SJER), Prime Minister Abdullah Ahmad Badawi said Friday.

The SJER, also known as "Iskandar Development Region" (IDR), encompasses 2,217 square kilometers of land in the southernmost state of Johor. It is envisioned to be the leading new growth engine in Malaysia.

Badawi said the Iskandar Regional Development Agency (IRDA), a body responsible for carrying out the development plan of the IDR, will draw up various incentives.

He made the remarks at a news conference after chairing IRDA's inaugural meeting and IRDA Advisory Council meeting in Johor Bahru, the state capital.

"There will be incentives. It is being drawn up at the moment. We must be competitive if we want to draw investors and investment to the place," Badawi was quoted as saying by the national news agency Bernama.

The IDR targets a total investment of 50 billion ringgit (13.89 billion U.S. dollars) in the first five years, according to Khazanah Nasional Berhad, the investment holding arm of the Malaysian government.

"For over 20 years, we expect total investment in IDR to be around 105 billion U.S. dollars," said Khazanah Managing Director Azman Mokhtar, who also attended the press conference.

Last November, Badawi officially launched the SJER, planing to develop the southernmost region into a metropolis of international standing.

Source: Xinhua