Minister in the Prime Minister's Department Effendi Norwawi will lead a joint ministerial committee that will oversee co-operation with Singapore over the Iskandar Development Region (IDR) project.

The committee will have four members and will be chaired by cabinet ministers from both sides, said Prime Minister Abdullah Ahmad Badawi in a written response in Parliament today.

According to media reports in Singapore, Effendi's Singaporean counterpart is National Development Minister Mah Bow Tan.

In the written reply to Salahuddin Haji Ayub (PAS - Kubang Kerian), Abdullah said the committee's main task was to speed up the development of IDR.

"This special committee would serve to improve the decision-making processes between both countries ... it will not decide policies or be used as a negotiating tool in regards to the development of IDR," he said.

The committee was announced during informal talks between the premier and the Singaporean Prime Minister Lee Hsien Loong in Langkawi last month.

He said the committee would first look into improving the immigration process to ease movement between the two countries.

Malaysia is targeting Singapore, in addition to China, Korea, Japan, the Middle East and Europe as foreign direct investment sources.

Early stages

The government is expected to offer incentives in six sectors innovative industries, education, financial services and consulting, health services, logistics and tourism.

Abdullah said the joint ministerial committee will not supercede Iskandar Regional Development Authority (IRDA) advisory council, which oversees the overall development of region. IRDA is chaired by former deputy premier Musa Hitam.

"We are in the early stages of mutual co-operation ... our primary concerns is to improve transportation and mobility between IDR and Singapore and to promote the tourism sector," he said.

The IDR covers approximately 2,217 sq km from Senai-Kulai in the north to Pasir Gudang-Tanjung Langsat in south-east Johor.

Foreign companies investing in IDR can have 100 percent ownership of their businesses there, a departure from the affirmative action policy that requires all public businesses in Malaysia to be 30 percent owned by bumiputeras.

Former premier Dr Mahathir Mohamad is one of IDR's strongest critics, saying that the initiative would result in the country losing its sovereignty.