Thursday, August 11, 2011

Unexpected Iskandar effect?

Malaysia's ambitious Iskandar development in southern Johor may just have an unexpected spin-off effect that could eventually help ease Singapore's property market woes and ease its labour issues.

Ms Tan Ting Min, an analyst at Credit Suisse, said that, currently, the land price arbitrage between Singapore and Johor is 1:16. "How quickly this land price arbitrage narrows depends very much on how quickly Singaporeans adopt the idea of moving their manufacturing bases to Johor," she added (Amended 11 Aug 2011, 3.36 pm) s

Already, Singapore has invested about US$153 million into the services, education and health sector of the Iskandar Malaysia development.

Further down the line, this is expected to have a positive impact on the Singapore economy.

CIMB Research economist Song Seng Wun said: "If we have at our doorstep an increased pool of qualified knowledge base labour force, we may be able to tap on that pool, bring them to Singapore and add to Singapore's productivity growth prospect going forward."

More details at http://www.todayonline.com

Source : MediaCorp Press Ltd by Rachel Kelly 

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