The rich will snap up the bungalows at LF in view of its proximity?
FASTrack, UEM Land in JV deal for Motorsports City
HIGHER business costs and tight labour conditions in Singapore were among the reasons Singapore's "remisier king" Peter Lim is developing a motorsports hub, valued at RM3.5 billion (S$1.4 billion), at Johor's Iskandar region instead.
FASTrack Autosports, controlled by Mr Lim, will develop the 270-acre Motorsports City at Gerbang Nusajaya with Khazanah-backed UEM Land Holdings Berhad.
FASTrack Autosports owns 70 per cent of the venture, while UEM Land owns the other 30 per cent stake.
The Johor Royal Family is a partner to Mr Lim in FASTrack Autosports.
When asked about his decision to have the project in Malaysia, Mr Lim said: "It's an interesting project, something that I love, and I think we can build a fairly sound business model from this, especially with the high costs of doing business in Singapore, and also the availability of labour."
He was speaking at a joint press conference with UEM Land on the sidelines of the 8th World Islamic Economic Forum (WIEF) in Johor Baru yesterday, after the joint-venture agreement was inked.
Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam, who was speaking at WIEF earlier in the day, commented on the deal later that day.
"Ultimately these are business decisions. I mean the job of the government is to ensure that with limited land, limited labour, limitations of resources generally, you have a level playing field and you have fair pricing," he told reporters.
"And some businesses based on their business models will find it very worthwhile to grow in Singapore, more capital intensive, more high value-add and they will train up people to make it work in Singapore, and there are some others who basically might find that they would retain some businesses in Singapore, some headquarters operations but they rather make use of opportunities in Malaysia and elsewhere, where you have labour available at a lower salary and more availability of land."
Motorsports City, which is five to 10 minutes' drive from Singapore's Second Link, will feature an array of attractions and amenities to cater to the motor enthusiast.
A central feature will be a 4.5km circuit, which will be designed by a Formula One (F1) track designer.
Barry Kan, chief executive of FASTrack Autosports, said the track is not meant to compete with the Sepang track or the Singapore street race track for F1, and will serve its own niche.
Other facilities and services on tap at Motorsports City include bonded garages - where enthusiasts can store their collections tax-free in general, car showrooms, service centres and even a luxury caravan service to fetch users from their homes and back.
There will also be a 1.5km go-kart track, as well as retail and dining options with the likes of a car-themed bar and other alfresco outlets.
Mr Lim, who sits on the board at McLaren Automotive, said there is no involvement from the British company in the project, but did not rule out the option for the future.
He also shared that he's looking at "one or two" more projects in Iskandar.
Wan Abdullah Wan Ibrahim, managing director and chief executive officer of UEM Land, said that work on Motorsports City should start in about six months, and the first phase completed around 2015 to 2016.
The entire project should bear itself out in 10 to 15 years.
But he said there are Singaporeans who are already itching to get in on the action.
"I have had some conversations with some Singaporeans who indulge in this sport, they can't wait," he said.
