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Iskandar Malaysia – in the southern state of Johor – was conceptualized in 2006 as a high-impact project by Malaysian economic planners. However, its development has generally been uneven, with centre–state governmental discoordination a constant flashpoint. This dynamic, as the paper argues, is manifested through the federal and Johor governments’ facilitation of capital to push their respective real estate projects, thereby exerting economic and political control. Although Putrajaya enjoyed a slight upper hand in the early stages (2006–12), the Johor state soon levelled the playing field. From 2013 to 2017, the Johor state aggressively recruited several well-capitalized Chinese real estate transnational corporations as an economic tool with which to regain dominance in its own turf. The centre–state competition for capital and physical space continued unabated as both sides promoted projects that are priced out of reach of the majority of the local populace. This groundswell of discontent was then exploited by the opposition, Pakatan Harapan, who harped on it and several socio-economic issues to challenge the United Malays National Organisation-led government. This explosive mix eventually created a ‘perfect storm’ that brought down one of Asia’s longest-ruling administrations in the May 2018 general election.

Capital mobility and centre–state relations: unpacking the spatial configuration of real estate investment in Iskandar Malaysia