After the formation of the Federation of Malaysia in 1963 , Johor Bahru continued as the state capital and more development was carried out , with the town 's expansion and the construction of more new townships and industrial estates . The Indonesian confrontation did not directly affect Johor Bahru as the main Indonesian landing point in Johor was in Labis and Tenang in Segamat District as well Pontian District . There is only one active Indonesian spy organisation in the town , known as '' Gerakan Ekonomi Melayu Indonesia '' ( GEMI ) . They frequently engaged with the Indonesian communities living there to contribute information for Indonesian commandos until the bombing of the MacDonald House in Singapore in 1965 . By the early 1990s , the town had considerably expanded in size , and was officially granted a city status on 1 January 1994 . Johor Bahru City Council was formed and the city 's current main square , Dataran Bandaraya Johor Bahru , was constructed to commemorate the event . A central business district was developed in the centre of the city from the mid-1990s in the area around Wong Ah Fook Street . The state and federal government channelled considerable funds for the development of the city — particularly more so after 2006 , when the Iskandar Malaysia was formed . However , more than 10 years of unbridled building construction in Iskandar , especially of higher end high-rise apartments and commercial property , has led to a serious glut of such property in the region . Occupancy of high-rise accommodation has been predicted to fall to 50 percent , and commercial property to 65 percent , by the end of 2019 due to continued incoming supply
bombing of the MacDonald House
MacDonald House bombing
Johor Bahru