Khazanah has invested over RM6 bil in developing Medini Iskandar, Desaru Coast—MOF

• "Khazanah's investment is based on the government's mandate to develop Iskandar Malaysia as a special economic corridor and this effort has been extended to Desaru Coast in line with the broader development efforts in Johor.”

KUALA LUMPUR (Oct 28): Khazanah Nasional Bhd has invested over RM6 billion in the development of Medini Iskandar and Desaru Coast in Johor to date, according to the Ministry of Finance (MOF).

The MOF said in a written reply at the Dewan Rakyat on Tuesday (Oct 28) that the amount was aimed at attracting more investments and creating job opportunities for Malaysians, especially in the property development, housing, education and tourism sectors in the two areas.

"Khazanah's investment is based on the government's mandate to develop Iskandar Malaysia as a special economic corridor and this effort has been extended to Desaru Coast in line with the broader development efforts in Johor.

“In general, the development of areas such as Medini Iskandar and Desaru Coast requires a long maturity period (30 to 40 years) as well as catalytic investments to develop optimally,” said the MOF in reply to a question from Yeo Bee Yin (PH-Puchong) regarding the development status and investment amount for Medini Iskandar and Desaru Coast.

The ministry said Medini Iskandar has been categorised as Zone B in the Johor-Singapore Special Economic Zone (JS-SEZ), while Desaru Coast is part of Zone G.

In this regard, the MOF stressed that efforts will continue to be strengthened to ensure that both destinations continue to contribute to the country's economic growth and strengthen Malaysia's position as an investment destination.

Meanwhile, the MOF said in reply to a separate question that the total dividend from Petroliam Nasional Bhd (Petronas) for 2026 is projected to decrease to RM20 billion compared to an estimated RM32 billion in 2025, according to the MOF.

The MOF said petroleum-related revenue for 2026 is projected at RM43 billion, a decrease of 24% compared to the estimated RM56.6 billion in 2025.

"The government remains committed to reducing its dependence on petroleum-related revenue due to the risk exposure factor of global crude oil price volatility.

"From a fiscal management perspective, the federal government will continue to focus on expenditure optimisation measures, ensuring the sustainability of the country's revenue and strengthening the implementation of a comprehensive economic plan to drive the country's economic growth," it said in reply to a question from Hassan Abdul Karim (PH-Pasir Gudang) regarding the government's realistic approach for Budget 2026 without relying on Petronas dividends which are facing the challenge of declining world crude oil prices.

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