ISKANDAR Malaysia, an economic zone in the southern state of Johor, has been seeing lower investor interest since June due to the global financial crisis, an official said yesterday.

"Earlier in the year until June, ...two or three groups of investors visited Iskandar from overseas on a daily basis, but now...probably in one week we receive just two or three visits," investment and business head Noor Azwa Mohd Noor said at a conference.

Iskandar Malaysia is sprawled over 2,200 sq km - three times the size of neighbour Singapore. It is Malaysia's attempt to create a business hub in the region.

But its success has been limited as investors remain cautious because of the country's political uncertainty and, more recently, the global financial crisis.

Mr Noor Azwa said Iskandar may have to ask the government for funds to help the project in the current economic conditions.

Iskandar is aiming for annual gross domestic product growth of 8 per cent till 2025, and has not revised this target, said Mr Noor Azwa.

The project saw growth of 7.1 per cent and 6.3 per cent in the first and second quarters respectively, and Mr Noor Azwa said the first half of next year would be "crucial".

He also said there was substantial investment in many Iskandar projects from the Middle East, and emerging economies may help the project even if interest from the West waned.

"There will be a slowdown in some parts, probably the United States or Europe, but China, India and the Middle East are going to be strong," he said.

"Our focus for the next six to 12 months is just going to be those that are still showing strong economic growth."

Much of the investment in Iskandar from the Gulf Arab region has gone into real estate.

Islamic lender Kuwait Finance House, Abu Dhabi investment agency Mubadala Development Co, Aldar Properties and Dubai-based Limitless are among those who have signed up for the scheme.

Malaysia's state-owned builder, UEM World, is also developing land in the area.

Iskandar, which has brought in some multi-nationals like General Electric, plans to open two or three theme parks in the region in collaboration with international operators.

A theme-park announcement could come in the first quarter of next year, said Mr Noor Azwa. In April, there were reports that the government was in talks with Walt Disney.