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Johor is a key battleground in Malaysia's 14th General Elections. The state is economically vital to the country: it is the birthplace of the United Malays National Organization (UMNO); and it has a large number of parliamentary seats. Johor-specific dynamics that have worked to the advantage of the ruling coalition include: UMNO's unique links with the state; the tight control over religion; and the phenomenal scale and success of the Federal Land Development Authority (FELDA) scheme. Despite these advantages, support for the ruling coalition has been slipping across the state. Furthermore, the emergence of new parties such as Parti Pribumi Bersatu Malaysia (PPBM) will challenge Barisan Nasional's control over Johor's rural and Malay heartland. The redelineation of parliamentary and state constituencies now underway is however likely to benefit BN, and recent survey data indicate that Johoreans are yet to be attracted to the reconfigured opposition coalition, Pakatan Harapan. Thus, while BN may suffer a drop in support, it is likely to retain power in Johor.

Despite its good infrastructure and proximity to Singapore, Batam's economic performance has taken a turn for the worse, with declining levels of foreign direct investment (FDI) and exports. Well-known firms in the electronics sector have closed shop, the shipping industry is in the doldrums, and unemployment rates have begun to climb. The environment for business is not as conducive as it used to be, with bureaucratic overlaps, persistent red tape, and shortages of land for investors. And, rather than seeking to attract large-scale investments in manufacturing or services, government campaigns have focussed on traditional economic activities such as fishing and farming. There are three reasons for this state of affairs. First, Indonesia's decentralization reforms have made doing business in Batam much more complicated than it used to be. Rather than dealing with one all-powerful central government agency, investors need to deal with three levels of government -- each with veto power. Second, Batam's economic transformation over the past quarter-century has attracted large numbers of migrants from other parts of the country. This has engendered a cultural sub-nationalist movement, which has sought to protect local interests and identities -- to the detriment of the economy. Third, structural changes in Indonesia's economy and changing corporate strategies have meant that investment into the country seeks to tap its domestic market -- as opposed to producing for export. In this context, Batam is not a viable destination due to its distance from large population centres, bad connectivity, high labour costs, and unattractive tax framework. While recent measures have sought to reduce red tape, fight corruption, and improve the island's infrastructure, it is possible that Batam needs to re-orient its business model away from producing for export and towards enabling firms on the island to also cater to Indonesia's burgeoning domestic consumer base.

The term 'Middle-Income Trap' refers to countries which stagnate economically after reaching a certain level of per capita income on the basis of labour- and capital-intensive growth, and are struggling to transition towards more skill-intensive and technology-driven development. It has resonance for the increasing number of countries in Asia who have either languished in middle-income status for extended periods of time, or are worried about growth slow-downs. This book sets outs the conceptual underpinnings of the Middle-Income Trap and explores the various ways it can be defined. It also focuses on the debate surrounding the Middle-Income Trap which questions the appropriate institutional and policy settings for middle-income countries to enable them to continue past the easy phase of economic growth. The book engages with this debate by investigating the role of institutions, human capital, and trade policy in helping countries increase their income levels and by highlighting factors which enable the shift to higher and qualitatively better growth. It questions how the large emerging economies in Asia such as China, Indonesia, and India are currently grappling with the challenges of transitioning from labour-intensive to technology- and knowledge-intensive production, and discusses what can be learnt from the countries that have been able to escape the trap to attain high-income status.

Mirror images in different frames? Johor, the Riau Islands, and competition for investment from Singapore -- Contents -- List of Tables -- List of Figures -- Editorial Note -- Acknowledgements -- About the Author -- List of Acronyms -- Chapter 1. Introduction -- Chapter 2. Theoretical Framework -- Chapter 3. "Internal State Architecture" and Incentive Structures for Meso-Level Leaders -- Chapter 4. The Cases:Johor and the Riau Islands -- Chapter 5. Conclusion -- Endnotes -- References.

Architects of Growth? : sub-national governments and industrialization in Asia -- Contents -- SECTION I: Introduction and Industry Overview -- Chapter 1. Introduction -- Chapter 2. Harnessing Asian Capabilities for Transforming the Electronics and IT Sectors: Recent Trends, Challenges and A Way Forward -- SECTION II: Cases from Industrializing Southeast Asia -- Chapter 3. A Relational View on Regional Development: The Case of the Electronics Sector in Cebu, Philippines -- Chapter 4. One Priority Among Many? The State Government and Electronics Sector in Johor, Malaysia -- Chapter 5. Why Sub-National Governments in Thailand are not Creating Electronics Industry Clusters -- Chapter 6. Regional Economic Development and Perspectives for the Electronics Sector in Vietnam: The Case of Da Nang -- Section III: Cases from China and India -- Chapter 7. The Evolution of Chengdu as an Inland Electronics "Base" in China and Its Local State -- Chapter 8. The Electronics Industry in Tamil Nadu. India: A Regional Development Analysis -- SECTION IV: Cases from Industrialized Countries -- Chapter 9. The Development of Singapore's Electronics Sector -- Chapter 10. The Evolution of an Industrial Cluster and Its Policy Framework: The Case of Gumi City, Korea -- Chapter 11. The Case of the Electronics Sector in Kaohsiung Municipality, Taiwan -- Chapter 12. Sub-national Policy and Industrial Transformation in North Brabant. Netherlands -- SECTION V: Conclusion -- Chapter 13. Sub-national Governments and Industrialization: Some Conclusions -- Index.

AbstractDuring the 1990s, Singapore, the Malaysian state of Johor and the Riau Islands in Indonesia marketed themselves as a single investment destination. Due to its capital, technology, and superior logistics, Singapore was the "gateway"; Johor and the Riau Islands were the hinterland—supplying land, labour, and resources. Since then, production networks between the three territories have deepened. Interactions with Singapore have also catalysed connections between Johor and the Riau Islands. To date, research has focussed on the city‐state as the gateway and/or linkages between it and one of the two hinterlands. This emphasis is inherent in the "Gateway City" framework, which focusses on the primary city at the expense of its hinterlands and also overlooks mediating influences such as borders and border regimes. This article proposes complementing the Gateway City with the Cross‐Border Region framework to gain stronger purchase on the unit of analysis and focusing on inter‐hinterland dynamics to gain a more complete picture of how gateway cities affect their surrounding areas. Through applying this expanded theoretical framework to study the interactions of Johor and the Riau Islands, this article seeks to shed light on an under‐theorised and under‐studied aspect of gateway cities.

The results of Malaysia's 14th General Elections held in May this year were unexpected and transformative. Against conventional wisdom, the newly-reconfigured opposition grouping Pakatan Harapan decisively defeated the incumbent Barisan Nasional. Despite a long-running financial scandal dogging the incumbents, an opposition victory had been all but discarded due to the advantages of incumbency, a deep fissure amongst opposition ranks, and a favourable economic outlook. Notwithstanding this, deeply-rooted political dynamics and influential actors came together, reconfiguring the country's political landscape in the process. In order to understand the elections and their implications, this article sets out the country's institutional context and then identifies key drivers and agents of change. From there, it assesses the conduct of the elections, analyses their results, and explores implications for the future. (Asian Aff/GIGA)

In 1990, the Malaysian state of Johor-along with Singapore and the Indonesian island of Batam-launched the Growth Triangle to attract foreign direct investment. For Johor, this drive was very successful, transforming its economy and driving up income levels. Today, Johor is one of Malaysia's "developed" states, housing large clusters of electrical and electronics, food processing, and furniture producing firms. While welcome, this structural transformation has also entailed important challenges and strategic choices. After three decades, Johor's manufacture-for-export model is under question, as it faces increasing competition and flat-lining technological capabilities. In response, the state has sought to diversify its economy through strategic investments in new, mostly service-based activities. Yet, Johor retains pockets of excellence in traditional sectors that also require support and policy attention. The state's economic transformation has also been accompanied by far-reaching political, social, and environmental change. Not least, Johor's growing population has generated demand for affordable housing and put pressure on public services. The strain has been exacerbated by workers from other states and overseas. These demographic factors and large-scale projects have, in turn, put stress on the environment. Building on earlier work by the ISEAS - Yusof Ishak Institute on the Singapore-Johor-Riau Islands Cross-border Region, this book focuses on this important Malaysian state, as it deals with important domestic challenges on one hand and strives to engage with international markets on the other.

1. Asia and the middle-income trap : an overview / Francis E. Hutchinson and Sanchita Basu Das -- 2. The middle-income trap turns 10 / Indermit Gill and Homi Kharas -- 3. Resilience and escaping development traps : lessons for Asian-Pacific economies / Alla Myrvoda, Malhar Nabar and Changyong Rhee -- 4. Can China rise to high income? / Yiping Huang -- 6. Is Indonesia trapped in the middle? / Haryo Aswicahyono and Hal Hill -- 6. India : escaping low-income traps and averting middle-income ones / Shekhar Shah and Rajesh Chadha -- 7. Institutional quality and growth traps / David Dollar -- 8. Avoiding "tiger" traps : how human capital can propel countries beyond middle-income status in East Asia / Emmanuel Jimenez and Elizabeth M. King -- 9. Escaping the middle-income trap : trade, investment and innovation / Shiro Armstrong and Tom Westland.

Foreword -- Introduction -- 1. The SIJORI cross-border region : more than a triangle / Francis E. Hutchinson & Terence Chong -- section I. Understanding the Whole -- 2. The population of the SIJORI cross-border region / Aris Ananta -- 3. The SIJORI cross-border region as an economic entity in 1990 and 2012, and perspectives for 2030 / Toh Mun Heng and Jiang Bo -- section II. Policy and politics -- 4. The social construction of comparative advantage and the SIJORI growth triangle / Benjamin Loh -- 5. The political economy of closer relations : a perspective from Singapore / Manu Bhaskaran -- 6. A periphery serving three cores : balancing local, national, and cross-border interests in the Riau Islands / Mulya Amri -- 7. Political contestation in Iskandar Malaysia : views on economic integration during Malaysia's 13th general election / Khor Yu Leng -- 8. Johor survey : interethnic dissonance / Terence Chong -- section III. Cross-border social and cultural communities -- 9. The significance of Riau in SIJORI / Vivienne Wee -- 10. Singaporeans living in Johor and Batam : next-door transnationalism living and border anxiety / Su-Ann Oh and Reema B. Jagtiani -- 11. Singapore Malay family businesses : negotiating Malaysian and Singapore citizenship and national identities / Rizwana Abdul Azeez -- 12. Imaginary frontiers and deferred masculinity : Singapore working-class men in Batam / Terence Chong -- section IV. Formal and informal economies -- 13. The airport and the territory : transnational flows in the Singapore-Johor-Riau cross-border region / Anna Gasco -- 14. Revisiting industrial dynamics in the SIJORI cross-border region : the electronics industry twenty years on / Leo van Grunsven and Francis E. Hutchinson -- 15. Development in Johor and Singapore's water access : challenges and opportunities / J. Jackson Ewing and Pau Khan Khup Hangzo -- 16. The role of ethnic Chinese business networks in the regionalization strategy of Singaporean fish farming firms / Guanie Lim -- 17. Pirates and law enforcement agencies : complex relations across the Malacca Straits / Eric Frécon -- Conclusion -- 18. The SIJORI cross-border region : the whole and sum of its parts / Francis E. Hutchinson.

However impressive the economic success of Penang has been over the past four decades, structural conditions in the region call for a fundamental reconfiguration of this Malaysian state's competitive advantage. In the 1970s, the ageing entrepôt transformed itself into a manufacturing hub for the electronics industry and a well-known tourist site. This outward-looking model of economic growth has underpinned Penang's economic development up until the present. The question that now arises is whether Penang's present mode of development will continue to be effective, or whether it will have to transform itself. First, Malaysia in general, and Penang in particular are caught in a middle-income trap. Second, while the evolving weight of the global economy is shifting towards Asia, many of its emerging powers are competing with Penang in areas where it formerly excelled. Third, Penang is a state within a federation, and its capital, George Town, is a secondary city. Neither can rival Kuala Lumpur in terms of size or facilities, and thus must offer investors other attributes. Effectively meeting these challenges while retaining Penang's vibrant and living culture are the key issues that are dealt with in this second volume of the Penang Studies Series