Iskandar Economic Zone – early signs of things to come

Iskandar Economic Zone could be a very compelling story for Sinkie companies to relocate with abundant cheaper land and labour cost. Both factors were right up in the list of potential investors. Sinkies also could buy up big landed properties that they cannot afford in Sin City. Many have made the move and are happy with their decisions.

When these comparative advantages are gone, or even close to the Sin level, there is no reason to risk life and investment in Johore.

Just as the attractive story of Iskandar is capturing the imagination of Sinkies, all the signs of greed and impatience are rising to undermine this great potential. New rules and regulations, higher taxes and cost, higher land prices etc etc are oozing out from all the orifices. The risk of these getting out of hand and becoming incompetitive when the funds are sunk in is so high that many new and potential investors and Sinkie home buyers are getting cold feet.

What assurance that things will not go against these investors when the comparative advantages are wiped away in due time and the investments become sunk negative assets that can only be gotten rid of at huge losses like what happened a few years back?

Would the Johore govt think long term and make Johore a desirable alternative to the outrageously expensive Sin City? Or would greed and impatience and a short sighted policy kill the golden goose? Would history repeat itself and prove that Sinkies are just willing suckers that never learnt?

A property seminar was conducted last Saturday byMyPaper with three Malaysiann property experts giving tips on buying properties in Malaysia. Malaysia by all counts is a very attractive place to buy properties for own use or for investments. The only thing missing in the formula is political risk. This is getting more treacherous by the day.

In Today paper on 17 Feb there is an article on Utusan Malaysia warning the non Malays about crossing their limits for ‘insulting Islam, Muslims and Malay rulers…. It is because we are…too afraid to take action against those who have insulted Malays and Islam…it appears as if non Malays are the landlords and Malays are the tenants, immigrants and the minority in our own country….It is just a matter of time before the hornets who are attempting to defend their nerst against intruders will retaliate…Malays will not be so tolerant anymore.’

Though there were contrarian views by other Malay leaders about this paranoid and the fact that Malays are the absolute majority, controlling all the powers in govt and the military, such paranoid views are very emotional and can be hysterical and mobilized to turn the country upside down, with threats of bloodshed like in May 13.

Property hunters must not ignore this political risk if buying properties or investing in Malaysia. This political risk and threat are very real and imminent.


Anonymous said...

"Property hunters must not ignore this political risk if buying properties or investing in Malaysia."

Tiok lah. Precisely because of this that's why there are still Sinkies remaining in Sinkieland and supporting PAP. Or else a lot would have made Malaysia their 2nd or even retirement home, or instead of migrating going to faraway places.

Anonymous said...

If Malaysia is a real good place, Sinkieland may not even exist as it is but remain a barren island (LKY ever used this term on Sinkieland)

Anonymous said...

SInkieland has a lot of political talents of Malaysian origin, like minister in charge of HDB Khaw Boon Wan, MPs Irene Ng, Lee Bee Wah, Foo Mee Har, Puthucheary etc.

virgo49 said...

Bro, all these talents bushwacked by the Bumis.

So have to come here and seek their fortunes.

Now not only found their fortunes but also their heavens.

Sinkies found only HELL

Anonymous said...

don't worry. may 13 threats are all bluff talk. they just want money. give them some money and you can do whatever you like. just act servile on the outside. just ask the big shot chinese towkays in malaysia. they even do business with ibrahim ali. you only worry if anuar ibrahim and the dap take over. anuar doesn't like the pap as they have sabotaged him many times before and the dap chinese won't give chance to s'pore chinese. they admire s'pore but they don't like s'pore.

The said...

Yup, those who can't remember history are condemned to repeat it. Malaysia is famous (or infamous) for their flip-flopping policies.

agongkia said...

Dun be jealous lah.Why bother where one wish to place his wealth or investment?Please do not be a loser if one does not dare to take risk.
I am a pokkai ,but if kenna Magnum jackpot and given a chance I am willing to find a place there to plant vegetables and do poultry and retire there.

At least I can find a peaceful place to lay my body permanently when I kick the bucket.
Our neighbor are very more friendly,truthful and warmth than my Sinkie buddies.I love Malaysia.

Anonymous said...

Peaceful place? Everyday got threaten by May 13. Now Penang Chief Minister got accused of being spy to Singapore.

Why would you want to put money in a place when your life is being threatened as and when they like it?

You try threatening a minority here and see what will happen to you. Here only minority threatens majority.

Ⓜatilah $ingapura⚠️ said...

I smell rats when people extol the "virtues" of committing hard-earned money into Iskandar in Johor. The smell becomes even more odious when I hear of Malaysian banks lending 90-95% of the value of properties. The word "bubble" comes immediately to mind.

Those who got into Iskandar years ago got in for around RM400k. Now to get in, you'll need around RM 1 million, and the banks are all too willing to lend.

However, there is no doubt that your living costs will drop dramatically.

You can buy a Mercedes for around SGD100k, employ a Mat driver for SGD 1k per month and buy cheap petrol. Your mat driver can drive the Malaysian registered car into Singapore for SGD 20 per day, and drive you around Singapore in style-butoh all day. If you work it out this is not only way cheaper than owning a car in Singapore, but also way cheaper than taking cabs, or hoofing it and sharing public transport with all those smelly "poor people" on the trains and buses.

So you can be a bungalow-dwelling towkay living on an "estate" as if you were in Tanglin, action-borak to your heart's content. Singaporeans love to action-borak to make their fellow Singaporeans envious. This is the national cultural pastime.

...and then one day, the mat government led by UMNO changes the law, and you will be nicely fucked up in Iskandar.

Anonymous said...

Would the housing agents, property developers and experts tell you the dangers of owning properties or investing in Malaysia?

jjgg said...

Risks are everywhere..frankly there are more risks in buying properties in Singapore ..property prices controlled by whims n fancies of politicians..u figure...)))

Anonymous said...

Malaysia is not a good place to invest especailly properties. Besides political uncertainty, policy keep changing and without much warning. Things are good now because both countries are friendly under the current governemnts. But things could change over night.Remembered we were threatened numerous times under Dr M?

Anonymous said...

Would the housing agents, property developers and experts tell you the dangers of owning properties or investing in SINGAPORE?

Anonymous said...

Over a recent CNY dinner, a friend who is an expert in properties told me to be careful and think 5 times before investing in properties there.

He can see the reasons why SMEs set-up plants there.

But, he see very very little reasons why we want to invest in properties there especially with the security/safety issues and the rapid changing political environment.

Beware, Beware, Beware.....cheers

Anonymous said...

Political risk exists in every country including Spore, and neighbor may be higher than ours.

In addition, leadership risk is another factor. May be we will see another "Dr P" who may just change all policies over night - similar to one which hit Singapore stock market decades ago.

So be wary....

Anonymous said...

Malaysians of all Races know to live well and prosper, everyone should respect each other. They also know that their Rulers have to be fair and honest.
Every rally against the Malaysian Regime was participated by Malaysians of all Races and they are all sensible people. Please do not portray others as senseless and backward racist and or religious fanatics. There was unfortunate events in the past due to ignorance and lack of exposure. People around the World now cherish peace and progress. The Malaysians of ALL RACES know they are well endow by nature and are among the most lucky beings. They know to enjoy living, peace must prevail and the only people they have to rid off are those corrupted by money and in the mind such as religious extremist and racist.
Malaysia boleh and will prosper for many centuries. Malaysia is fully endowed including Malaysians themselves endow with sensibility and ability to check the abuses of their rulers and leaders.
Many Singaporeans are envious of Malaysians, however, there is no need for any to throw mud or insinuate any untoward event.

Anonymous said...

Even Malaysian EPF is an envy of many a sinkie.
Find out more about living in Malaysia from those that have moved over there. They provide more accurate information than those talking about Malaysia with visits there once in a while.

Chua Chin Leng aka redbean said...

I must agree that Malaysians of all races will love to live well and are living well. All you need is a handful of leaders who have other ideas and the country can turn into a turmoil. In Malaysia, the risk is that much higher for Sinkies.

We can only wish Malaysia and Malaysians well.

For Sinkies to want to invest there, you have to do your homework and make your calculations. No one can make you invest there or not to invest there.

Good luck.

jjgg said...

The way I see it re. Singapore properties..lky demise. -5%..after 2016 elections-10%...after Singapore clamps down on hot money -20%...all this without considering interest rate factors???so.. Singapore properties still safe, secure? Hehe

Anonymous said...

If you are a malay, have relatives there who can look after your property in some way, the risk is much lesser. But for Chinese, do not put too much faith in what the Bumis tell you.

There is nothing sure even if you do your homework. Najib and his gang promise one thing today, they change face the next day. You never know.

Anonymous said...

Tiok. Our Malay brothers have the best of both worlds. They can feel very secure over there.

b said...

Actually malays are no more than asians being taken in follow the islam way of living. The right way to live peacefully is for the whole world to understand that race and religion are manipulation tools rulers used to control the people aka their own population. We are all from one single ancestor. Do not be manipulated by the rulers to turn against each other. God is great but race and religion should be abolished.

Anyway, malaysia cannot survive without selling their properties to foreign investors. Their currency will continue to free fall, tax will be raised until someone else take over and amend the policy. Land is abundance so what is the problem with them.

Anonymous said...

Does the PAP government have a share in the profits of the property development in Iskandar?

b said...

So long as it is loss making, pap related investment arm sure have a share. thats called karma.

Anonymous said...

'...until someone else take over and amend the policy'

But it will still be another Bumi from the same UMNO who will have to tow the UMNO line. The whole UMNO gang, like the PAP, is still playing the same game - you watch my back, I watch yours and we both benefit in every way. When every one drinks from the same trough, would they want to change? They would probably be shouting 'more good years to us'.

Anonymous said...

The biggest LAND LORD on the island is _______.
No prize for guessing.

Anonymous said...

The richest POLITICIAN on the island is _______.
No prize for guessing.

Anonymous said...

Fuck lah... y u all so bothered?

using your money?

red eyes monsters?

have a break.... have a kit kat

Knnccb.... y singaponang like tits? Kaypoh chee

Anonymous said...

Is it true that the PM wife is also a former Malaysian...he he

Anonymous said...

/// Knnccb.... y singaponang like tits? Kaypoh chee ///

If did not do anything wrong ... why so scared?

Anonymous said...

Fuck hsien loong n his running dogs n bitches

May the e'er fruits of their actions ripen upon their descendants

Like what is happening to the royal familee

Knnccb... long live kuanyew

Chua Chin Leng aka redbean said...

Hi anon 11:39,

You have been repeating your curses almost daily. My friendly advice, it is not good to curse people.


Anonymous said...

Omfg... truths hurt???

some love to be explicit

Some like it subtle

WaT ever, knnccb, how can it be cursing, if events lie b4 us?
human in ape-form? A man who waddle like a duck, a discolor skin? U did more?