According to the annual Economist Intelligence Unit (EIU) for the best place to do business in the world, the top country is Singapore. It is ranked ahead of Switzerland, Australia, Hong Kong and Sweden. I love this ranking very much and hopefully this list is referred by all multinationals when they think of a new base here in Asia or at least ASEAN. Singapore is top because of its “efficient and open economy”. This is similar to another World Bank survey which placed Singapore on top out of 189 countries examined. Oh yeah, Singapore should also win as an Asian representative because Asia is on a growth path. 15 more years, China may already surpass USA as the largest economy in the world. Already, the signs are there as China is also trying to promote Yuan a currency of trade instead of US$.
How does this benefit the Malaysian property market you may ask. Well, a lot. Perhaps not directly but the spillover effects would be good. Many of these international companies, when they are looking for a base in Asia will give a higher preference to Singapore. The more they come, the merrier it would be and the fact is, the best place to do business does not mean its cheap. The best place to do business also do not mean that their workforce is at a price which is competitive enough for a long term huge base. The best place to do business however do mean that the business environment is definitely very conducive and perhaps the government support is high or that all the necessary legislations are in place. Fast approvals, one stop centres and most probably accessible into from other countries and out to other countries. In this case, well within the heart of Asia.
2014 has not been a great year for Singapore where the property market is concerned. Nevertheless, everyone knows that a breather is needed if the property market is to consolidate for another growth ahead. When more businesses come to Singapore, more would be hired and without any doubt one main supply would be Malaysians, especially Johoreans and even if not, these Malaysians would more often that not stay in Iskandar. Not many would love to stay in Singapore with a rental of a small room as S$700 – S$800 right? After a few years of working, a property is needed and the natural choice would of course be the cheaper side. I seriously do hope that this EIU list will be referred to by all the European investors before they decide which country to put their base in.
written on 17 Dec 2014
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