23 July 2014

Johor Seeks High-Tech Investments - July 2014

Summary of the news:

Johor state government would push for higher technology industries in Iskandar Malaysia to transform it to higher value added zone. With 2 seaports (PTP & Pasir Gudang / Tanjung Lansat) and 1 airport (Senai), the manufacturers can easily export the items to various countries. It is now E&E hub in Southern region.

It is known that with better infrastructure in place, there will be more manufacturers entering this place to create tens of thousands of jobs here.

My View

Singapore recently announced a weaker performance in E&E manufacturing sector. I believe this is part of the reasons why some manufacturers have switched their plants to lower cost place such as Iskandar Malaysia. I believe this is a good sign for Singapore government to encourage the owners to come across the borders to help solving the limited land supply issue in Singapore. I believe that both governments are trying to have a win-win situation where it is good for Iskandar Malaysia to provide cheap labors and land costs to owners in Singapore.

So far, what I have seen is just the boom in real estate market. I have seen a little changes / slow progress in other sectors such as manufacturing & high technology sectors. If more foreign direct investment comes into those sectors, I believe more "white collar jobs" would be created and it may create the real needs for people to stay here and work here (not just stay here and work in neighboring country).

A lot of Singaporean especially for those retirees who wish to enjoy lower costs may come to Iskandar Malaysia to enjoy better medical benefits here. I understand that more private schools opened in Iskandar Malaysia for expatriates' children. This is a good sign as it would definitely attract more higher income talents to stay and spend here.

The original of the articles can be found here:

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