December 8, 2020

ISKANDAR INVESTMENT BERHAD TO ESTABLISH SOUTHEAST ASIA’S FIRST DRONE AND ROBOTICS ZONE IN ISKANDAR PUTERI – DRZ ISKANDAR

● DRZ Iskandar is part of Iskandar NEXT programme, which aims to generate RM351mil of investment and 1,000 high value jobs by 2025 in both drone and robotics industries.

● IIB, DHL and Malaysian Global Innovation & Creativity Centre (“MaGIC”) signed a Memorandum of Understanding to jointly establish the Iskandar Drone and Robotics Zone in Medini.

● DRZ Iskandar's to be recognised as the next Sandbox under National Technology and Innovation Sandbox (NTIS).

● DRZ Iskandar to leverage Iskandar Puteri’s strategic location, Medini’s ready infrastructure, and skilled talent pool.

Iskandar Puteri, 8th Dec 2020: Iskandar Investment Berhad (IIB) launched DRZ Iskandar today, placing Iskandar Puteri as the first Drone and Robotic Zone in Southeast Asia.

This is in line with IIB’s recent launch of the ISKANDAR NEXT initiative, a public-private partnership programme with the Johor state government to support the State’s digital economy agenda to accelerate growth towards becoming a Regional and Global Business Hub. The DRZ Iskandar aims to create a drone and robotics eco-system in Iskandar, which would become a growth engine, technology leader and talent hub for Malaysia and APAC. DRZ Iskandar is projected to bring in RM351mil of investment and generate 1,000 high-value jobs by 2025 in drone and robotics.

DRZ Iskandar was jointly launched by Khairy Jamaluddin, Minister of Science, Technology and Innovation (MOSTI) via virtual platform from Putrajaya and YAB Datuk Haji Hasni Mohammad, the Chief Minister of Johor in Medini, Iskandar Puteri, Johor. Also witnessing the official launch are YB Datuk Mohd Izhar Ahmad, the Johor State EXCO of Investment, Entrepreneur, Cooperative and Human Resource together with representatives from DHL, MaGIC and IIB Group of Companies.

The Minister, who jointly officiated the launch of DRZ Iskandar with the Chief Minister of Johor said, “The Asian drone market revenue is expected to grow from USD8.6 billion in 2020 to USD17.9 billion in 2025 according to the 2020 industry report produced by Drone Industry Insight. Malaysia aspires to be the frontrunner in the drone-tech industry. I am confident that through the National Technology and Innovation Sandbox (NTIS), we will be able to realise this goal.”

The NTIS is an initiative under MOSTI that was launched on 19 August 2020 by YAB Prime Minister of Malaysia to allow innovators and startups to stress-test their products, services, business models and delivery mechanisms in a secure and live environment, with some relaxations from all or selected regulatory requirements. During the event, DRZ Iskandar announced its intention to be the nextrecognised as a NTIS Sandbox partner and to further support NTIS in accelerating Malaysia into a high-tech and high-income nation.

According to Khairy Jamaluddin, “The DRZ Iskandar and NTIS share the same aspirations in our effort to upskill local talents and move them higher up in the technology value chain, thus creating greater socio-economic impact. Through this partnership, NTIS will be able to connect our local technology companies to bigger industry players and multinational companies such as DHL.”

Recently, NTIS through MaGIC collaborated with the country’s largest plantation operator, FELDA, to deliver social impact and create economic value using technology such as drones and robotics.

He added, “NTIS will continue to establish good relations with the players in this ecosystem as we believe the process of recovery and economic development of the country requires cooperation of all parties. As the lead secretariat, MaGIC will work hand in hand with IIB and DHL towards establishing DRZ Iskandar as the next sandbox test bed under NTIS to better funnel high potential NTIS approved startups, accelerate the creation and acceptance of local innovations through a structured framework within a controlled environment and towards commercialisation stage.”

Following the official launch, YAB Datuk Haji Hasni Mohammad commented, “The launch of DRZ Iskandar is an important milestone for Johor Digital Master Plan that brings us one step closer to creating a Digital Hub in Iskandar Malaysia as announced recently in the Johor Budget 2021. The strategic partnership and collaboration in DRZ Iskandar would position Iskandar Malaysia as the forefront in the drone and robotics industry thus creating various opportunities and job creations in Johor.”

“Medini, which has been announced as Johor Digital Hub, would be equipped with advanced digital infrastructure and attracts technologically-savvy companies to this smart city under DRZ Iskandar programs.” the Chief Minister of Johor added.

During his welcoming speech, President/ Chief Executive Officer of IIB, YBhg Datuk Ir. Khairil Anwar Ahmad mentioned, “IIB is proud to announce the Launch of Drone and Robotic Zone (DRZ) Iskandar, following our launch of the Iskandar Next programme last month. Staying true to the tenets of an innovative leader, the launch of DRZ Iskandar will boost digital innovation in Iskandar Puteri. We are also proud to collaborate with esteemed partners, DHL, MaGIC and MDEC and the network of 46 international companies to jointly grow and develop the DRZ Iskandar ecosystem. These will form the pioneer alliances under the DRZ Iskandar banner which we hope will grow further in 2021 and beyond to realize the vision we have for Medini in Iskandar Puteri.”

At the launch, DRZ Iskandar also welcomed new partners and stakeholders into the ecosystem. MaGIC signed Memorandums of Understanding with IIB Ventures, a wholly- owned subsidiary of Iskandar Investment Berhad and with DHL in Iskandar Malaysia, to establish the first Drone and Robotics Zone in Southeast Asia. With the Drone and Robotics Zone strategically situated in Medini @ Iskandar Puteri, the partners, together with the Civil Aviation Authority of Malaysia (CAAM) aim to develop a robust ecosystem where talents for the DroneTech industry are trained and certified, world-class drone events are hosted, and start-ups network with incubators, accelerators and innovators congregate to test and commercialize their drone and robotics innovation. CAAM will provide technical, regulatory framework and parameters for drones to operate efficiently and safely. This will not only fast-track the testing of the locally developed drone powered solutions in the NTIS Sandbox but will also elevate Malaysia’s visibility in the regional and global drone-tech industry.

Medini, which is located within Iskandar Puteri has been identified as the location for the DRZ Iskandar based on existing infrastructure and amenities which are constantly being improved and upgraded, making it suitable for identified activities including as a Drone Test Zone (DTZ), Design and Development Centre, Talent Development and Training Centre, offering Assembly, Aftermarket & MRO Facilities as well as to hold Drone & Robotics events. Its livability factor has increased significantly over the past recent years offering quality yet affordable and balanced lifestyle that will appeal to millennials and technocrats.

Global logistics company DHL is supporting the initiative with its experience in robotics and drone deliveries. In 2018, DHL partnered Iskandar Innovations Sdn Bhd to launch GCOE, which has been instrumental in developing the strategy behind the Iskandar Drone and Robotics Zone as part of its ongoing efforts to promote Iskandar’s catalytic initiatives around Industry 4.0.

“DHL Express has been serving a broad spectrum of customers across the financial, healthcare, technology and retail industries in Malaysia since 1973. We are excited to be part of the Iskandar Drone and Robotics Zone, and look forward to test solutions for different industries across our diverse customer base,” said Matthias Heutger, Global Head of Innovation and Commercial Development at DHL. “By drawing on our technological experience and logistics expertise, which will prove valuable in the shipment and customs clearance of drone components, I am confident that DHL Express will help IIB Ventures create a world-class sustainable drone and robotics ecosystem in Iskandar.”

Malaysia announced its interest in becoming a drone hub in Southeast Asia, providing an ideal test site for drone solution providers and users in the region due to the country's diverse geography and varied terrain. The Asia drone market is expected to grow from $8.6 billion in 2020 to $17.9 billion in 2025 in revenue” according to the 2020 industry report produced by Drone Industry Insight. Other than the consumer and defense markets, there is a large commercial potential for drones in the logistics, construction, agriculture, mining, and healthcare sectors. Collectively, IIB has created close to 10,000 job across five promoted sectors and created an estimated RM400 millions of total revenue for the government.

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About Iskandar Investment Berhad (IIB)

Iskandar Investment Berhad (IIB) is a Catalyst of Change and a key player in Iskandar Malaysia’s transformation into a regional metropolis of international standing. Incorporated in November 2006, IIB is tasked to ensure Iskandar Malaysia continues its successful trajectory into an attractive investment destination and a vibrant liveable region via catalytic and high impact projects. IIB focuses on the development of Iskandar Puteri in the education, creative, tourism and leisure, as well as health and wellness sectors. IIB’s prominent accomplishments include the successful joint ventures and investment partnerships in LEGOLAND® Malaysia Resort, Iskandar Puteri, Medini and infrastructure projects under the 9th Malaysia Plan in Iskandar Malaysia.

For more information on IIB, please visit www.iskandarinvestment.com

DHL – The logistics company for the world

DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail,DHL is decisively positioned as “The logistics company for the world”.

DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 63 billion euros in 2019. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. Deutsche Post DHL Group aims to achieve zero-emissions logistics by 2050.

About the National Technology and Innovation Sandbox (NTIS)

National Technology and Innovation Sandbox (NTIS) is a facility that allows researchers, innovators, startups and high-tech entrepreneurs to test their products, services, business models and delivery mechanisms in a live environment.

The Ministry of Science, Technology and Innovation spearheads the NTIS which aims at addressing societal and sectoral issues, in which the Malaysian Global Innovation and Creativity Centre (MaGIC) is the lead secretariat.

For more information on NTIS and for further inquiries, please visit https://sandbox.gov.my/en/home