Published November 6, 2009

Khazanah in RM1.8b of projects

Half a dozen leisure developments aimed at boosting tourism

By PAULINE NG
IN KUALA LUMPUR

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MALAYSIA'S state investment agency Khazanah Nasional is planning another half a dozen leisure projects worth some RM1.8 billion (S$733 million) to enhance the country's destination appeal and to increase the amount that tourists spend while in the country.

This is in addition to the RM800 million investment that Malaysia recently announced in two developments - Legoland in Iskandar Malaysia (under Iskandar Investment Bhd) and Kidzania in the Klang Valley - which are slated to be completed in 2011 and 2012 respectively.

The focus of the projects would initially be centred around Iskandar Malaysia and the Klang Valley, said Tunku Ahmad Burhanuddin, chief executive and managing director of Themed Attractions & Resorts (TAR), the wholly owned subsidiary of Khazanah that was established this year to implement the 'catalyst' developments.

At a media briefing yesterday, TAR indicated that it was only getting started and is eyeing another six leisure parks averaging RM200-300 million each.

Over the weekend, it would be inking an agreement with three 'global brands' to build an indoor family theme park at Puteri Harbour in south Johor.

In recent years, Malaysia's tourism sector has expanded significantly; last year, it attracted 22 million visitors who spent nearly RM50 billion. Even so, the average amount a tourist spends in Malaysia is much lower than in neighbouring Thailand or Singapore, owing apparently to a lack of attractions.

TAR is banking on the planned 'iconic' attractions to enhance Malaysia's appeal as a destination and prolong tourist stay by a few days; its approach especially directed at the target markets of China, India and the Middle East, which are more family-oriented.

It believes that there is a huge gap in the under-12 segment and its family theme park in Johor would be designed to cater to this market.

Concentrating on 'more nature-based attractions' such as health farms, agricultural parks or cultural-based attractions are other areas that Malaysia could differentiate itself, said Mr Ahmad.

'Singapore will be very big in MICE (meetings, incentives, conventions and exhibitions) in the next couple of years,' he added.

Tourism continues to grow in importance to the Malaysian economy, spurred by the rapid liberalisation of air travel and AirAsia's role in establishing Kuala Lumpur as a regional hub for low cost travel.

Khazanah is also hoping to leverage on the sector to provide business opportunities and employment to the thousands of unemployed graduates.

But socio-economic objectives notwithstanding, Mr Ahmad maintained that every project was sustainable and expected to be profitable in two to three years, or TAR would not embark on it.

'People will be comparing you with others, so it can't be half-baked.'