Can Iskandar succeed without being right next to Singapore? Will it be successful faster by being right next to Singapore? Definitely. If it does not do well, would Singapore continue to do well, moving forward? When we look at how Singapore needs to continue growing its GDP (which is already slowing as it is considered a developed nation), it would be foolish to say that Singapore can continue reclaiming all the land it needs to propel its way to succeed. Read here for latest about reclamation. Reclamation done with less sand and lower upfront construction costs Population growth is a critical factor and with population growth comes the need for more homes. Singapore government in a white paper has forecasted a population of 6.9 million by 2030 in its “Population White Paper (PWP)”. Without population growth, creation of new jobs are not possible and without new jobs there is little growth.
Singaporean Prime Minister Lee Hsien Loong said this, “Singapore will also prosper if Iskandar Malaysia region succeeds.” Read here for full article in a Singaporean mass media Asia One. In brief, the article said since its launch, Iskandar Malaysia has attracted a committed investments of more than RM200 million of which a sizeable amunt is from Singaporean companies. Singapore is currently the second largest foreign investor in Iskandar Malaysia and Johor. Singapore has always been one of the most expensive cities in the world when it comes to the cost of living. It would be good to have another cheaper option right next door. Mr. Lee said that the joint-venture projects between Singapore’s Temasek Holdings and Malaysia’s Khazanah Nasional are making good progress. They include Afiniti Medini and Avira Medini. Temasek and Khazanah also have a joint-venture company in Singapore called M+S Pte Ltd, which are developing two major mixed-use developments – Marina One in Marina South and Duo in the Ophir-Rochor area.
Actually, both countries do not have that many options. All other neighbouring nations are by far larger in terms of population even if they are less advanced in terms of economy. It’s best to work together and strive for a win-win situation as per advocated by Mr. Lee in another earlier article too. So, is this the time to buy? Well, the question remains the same. Why are you buying? To wait for capital appreciation in a few years’ time? Well, there are really many people having the same thoughts as you. Haha. The catalyst is still connections. The more connections, the more Iskandar can gain. High Speed Rail is still a long-term thingy as at now. Happy following yeah.
written on 17 Dec 2016
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