Johor Maha Menteri Besar Calls for Decentralised Approval Powers to Unlock RM10 Billion in Stalled Projects

2025-06-22
Johor Maha Menteri Besar Calls for Decentralised Approval Powers to Unlock RM10 Billion in Stalled Projects
Malay Mail

Johor Bahru – Menteri Besar Johor, Datuk Onn Hafiz Ghazi, has strongly advocated for greater decentralisation of project approval powers, specifically requesting that the federal government grant Johor the authority to expedite the approval and implementation of development projects within the state. This call comes amidst a concerning backlog of approximately RM10 billion worth of stalled developments that are hindering economic growth and investment in Johor.

Speaking recently, Datuk Onn Hafiz highlighted the significant delays experienced in securing approvals from federal agencies, often citing bureaucratic hurdles and lengthy processing times. He argued that empowering the state government to handle these approvals would significantly reduce the timeline, attract more investors, and ultimately boost Johor's economy.

“We have a significant amount of investment interest in Johor, but many projects are being held back due to the slow approval process at the federal level,” he stated. “Granting us more autonomy in this area would allow us to move forward more quickly and capitalize on these opportunities.”

The RM10 billion figure represents a substantial amount of potential investment that is currently frozen, impacting various sectors including property, infrastructure, and manufacturing. These stalled projects not only affect developers and investors but also have a ripple effect on job creation and the overall economic well-being of the state.

Datuk Onn Hafiz’s proposal isn't about circumventing federal oversight, but rather about streamlining the process and ensuring that decisions are made efficiently. He suggested a collaborative approach where the state government works in tandem with federal agencies, maintaining transparency and adhering to all relevant regulations.

Benefits of Decentralisation:

  • Faster Approvals: Reduced bureaucratic delays leading to quicker project commencement.
  • Increased Investment: Attracts more investors due to a more predictable and efficient approval process.
  • Economic Growth: Stimulates economic activity and job creation within Johor.
  • Improved Coordination: Allows for better alignment of development projects with state priorities.

The Menteri Besar’s call has been met with cautious optimism from various stakeholders, including business associations and the Real Estate and Housing Developers' Association (REHDA). Many believe that decentralisation could be a key step in unlocking Johor’s full economic potential.

The federal government is yet to formally respond to Datuk Onn Hafiz’s request, but the issue is expected to be a key point of discussion in upcoming meetings between state and federal officials. The outcome of these discussions will be crucial in determining whether Johor can gain greater control over its development destiny and unlock the billions of ringgit currently tied up in stalled projects. The hope is that a pragmatic and collaborative solution can be found that benefits both the state and the nation as a whole.

Ultimately, Datuk Onn Hafiz's plea speaks to a broader need for greater responsiveness and efficiency in Malaysia's development approval processes, ensuring that the country remains an attractive destination for foreign and domestic investment.

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