“The MOF confirms Khazanah Nasional has invested over RM6 billion in Johor’s Medini Iskandar and Desaru Coast to drive long-term growth and job creation.”
Kuala Lumpur, 29th Octorber 2025, 01.00pm – Khazanah Nasional Bhd has channelled more than RM6 billion into the development of Medini Iskandar and Desaru Coast in Johor to date, according to the Ministry of Finance (MOF).
In a written reply to the Dewan Rakyat on Tuesday, the ministry said the investment aims to attract further capital inflows and create job opportunities for Malaysians, particularly in the property development, housing, education, and tourism sectors within both growth areas.
“Khazanah’s investment aligns with the government’s mandate to develop Iskandar Malaysia as a special economic corridor, and this effort has now been extended to Desaru Coast as part of Johor’s wider development agenda,” the MOF stated.
The ministry noted that large-scale developments such as Medini Iskandar and Desaru Coast typically require a long-term maturity period of 30 to 40 years, supported by catalytic investments to reach full potential.
Part of Johor–Singapore Special Economic Zone
According to the MOF, Medini Iskandar has been designated as Zone B under the Johor–Singapore Special Economic Zone (JS-SEZ) framework, while Desaru Coast falls within Zone G.
The ministry added that ongoing efforts will focus on strengthening both destinations’ contribution to Malaysia’s economic growth and reinforcing the country’s position as a regional investment and tourism hub.
Petronas Dividend Projected to Decline in 2026
Separately, the MOF said that Petroliam Nasional Bhd (Petronas) is expected to contribute a RM20 billion dividend to the federal government in 2026, compared with an estimated RM32 billion this year.
Revenue from petroleum-related sources is projected to drop 24% year-on-year, to RM43 billion in 2026 from RM56.6 billion in 2025, due to fluctuations in global crude oil prices.
“The government remains committed to reducing dependence on petroleum-related income amid volatile global oil markets,” the MOF said in response to Hassan Abdul Karim (PH–Pasir Gudang).
“From a fiscal management perspective, we will continue to focus on expenditure optimisation, ensuring sustainable national revenue and strengthening the implementation of a comprehensive economic plan to drive long-term growth,” it added.
About Khazanah’s Johor Investments
Khazanah Nasional’s involvement in Medini Iskandar and Desaru Coast reflects its ongoing role in transforming Johor into a vibrant regional economic corridor, with projects designed to stimulate tourism, urban development, and job creation over the next several decades.
Both developments are expected to play a key role in advancing the Johor–Singapore economic cooperation, boosting cross-border investments, and supporting Malaysia’s southern growth corridor vision.
