Property News

[ECboy]

Our company has set-up a manufacturing facility in Iskandar. We get a few skilled managers (Malaysians & Singaporeans) to manage the plant, while the remaining positions are filled up by unskilled labour. Materials, labour, utilities and more importantly, setup cost (land and reno) are significantly lower than SG.

Does that answer your question?

Yup, do you know how much is rental in Tuas area? My client got kicked out by his previous tenant due to some new policy by JTC. They found a facility in Pioneer for S$1.2mil/month and the MD was like, "this is considered cheap", i was like wtf!

I said why not move to JB which is like few mins away, he said he's considering moving his storage yard there, coz he has many industrial vehicles and maybe a workshop as well. But he say SG got a lot of tax benefit as it's a regional office.

I agree with you that all you need is a few key people to run the show, the difficult part is finding the key ppl (not impossible), not the manual labor.

 

[cybermad]

Yup, do you know how much is rental in Tuas area? My client got kicked out by his previous tenant due to some new policy by JTC. They found a facility in Pioneer for S$1.2mil/month and the MD was like, "this is considered cheap", i was like wtf!

I said why not move to JB which is like few mins away, he said he's considering moving his storage yard there, coz he has many industrial vehicles and maybe a workshop as well. But he say SG got a lot of tax benefit as it's a regional office.

I agree with you that all you need is a few key people to run the show, the difficult part is finding the key ppl (not impossible), not the manual labor.

pay the mgrs well, they will go JB . The rest of the manual labour can be from the less skilled local populace. with land n utils so cheap , who say Iskandar cannot succeed using this model ?

 

[tstar]

Definitely he is not from manufacturing.

In 90s, sg produced more than 70% percent of hard disk drives in the world. the industry employed hundreds of thousands of commoners.
now most of the industry moved to penang and thailand and china. also in future to jb. because of high production costs and rental force the MNCs to do so. they are the MNCs and the most important thing for the MNC is to make money. they do not have to stay put in sg and do not hesitate to movd to somewhere else as long as their cost can be reduced significantly.

 

[mpan12]

Hmmm... doesn't really answer my question completely.

That's what I thought should be the reason for Iskandar thriving. If it's cheaper to rent or buy land there, and cheaper to get labour, it's common sense to go there. That's what I would think as a business owner.

But why are there still reports telling us companies are not attracted to move to Iskandar? Getting skilled labour is one of the issues. I'm still guessing there are perhaps other issues not mentioned? Or the move to Iskandar is attractive only specific to certain business sectors?

Our company has set-up a manufacturing facility in Iskandar. We get a few skilled managers (Malaysians & Singaporeans) to manage the plant, while the remaining positions are filled up by unskilled labour. Materials, labour, utilities and more importantly, setup cost (land and reno) are significantly lower than SG.

Does that answer your question?

 

[xebay11]

Hmmm... doesn't really answer my question completely.

That's what I thought should be the reason for Iskandar thriving. If it's cheaper to rent or buy land there, and cheaper to get labour, it's common sense to go there. That's what I would think as a business owner.

But why are there still reports telling us companies are not attracted to move to Iskandar? Getting skilled labour is one of the issues. I'm still guessing there are perhaps other issues not mentioned? Or the move to Iskandar is attractive only specific to certain business sectors?

No need to care, if property prices really rise like what our esteem investors here predict, Johor would join the ranks of uncompetitive Singapore.

 

[mpan12]

No need to care, if property prices really rise like what our esteem investors here predict, Johor would join the ranks of uncompetitive Singapore.

Haha....!

 

[freekazoid]

No need to care, if property prices really rise like what our esteem investors here predict, Johor would join the ranks of uncompetitive Singapore.

Care? These xebay and mpan....after months of self professed they are rich and astute investor. And everyone else are dumb. Which part is the caring?

After so long....both guys are dumbfounded for alternative invest location for same price segments. That's speak loud and clear for the astute claimed....LOL

 

[Manhattan]

PM Najib has spoken, Johor will be an economic power house. What are you waiting for? Next time don't say people never tell you to buy.

http://www.straitstimes.com/asia/se-asia/johor-to-be-new-economic-powerhouse-malaysian-pm-najib

 

[toyohon]

Care? These xebay and mpan....after months of self professed they are rich and astute investor. And everyone else are dumb. Which part is the caring?

After so long....both guys are dumbfounded for alternative invest location for same price segments. That's speak loud and clear for the astute claimed....LOL

LOL, really kind of them to show so much 'care and concern' to anyone remotely interested to buy or had bought anything in Johor in this forum.

 

[freekazoid]

LOL, really kind of them to show so much 'care and concern' to anyone remotely interested to buy or had bought anything in Johor in this forum.

yeah lor...show much care and concern...please guide us to light...budget SGD300k. Very certain st.xebay and st.mpan knowledge span the globe will give us a good pick....

 

[xebay11]

Care? These xebay and mpan....after months of self professed they are rich and astute investor. And everyone else are dumb. Which part is the caring?

After so long....both guys are dumbfounded for alternative invest location for same price segments. That's speak loud and clear for the astute claimed....LOL

Looks like you are the dumb one who cannot understand English, I have been saying all along, no money don't invest in property. ...Hey wait a minute I thought all of you buy for own stay, not investors or is it always roti prata according to which way the argument goes. Pathetic.

 

[freekazoid]

Looks like you are the dumb one who cannot understand English, I have been saying all along, no money don't invest in property. ...Hey wait a minute I thought all of you buy for own stay, not investors or is it always roti prata according to which way the argument goes. Pathetic.

Wah the elite attitude show already LOL.

See same can be said this way - Looks like you are the dumb one who cannot understand English, I have been saying all along, my budget SGD300k....where you reckon to invest? (dont choke...its okay to have empty brain)

 

[Investor888]

We seriously no need Najib to come tell us Johor will be an economic powerhouse. Last weekend I drove to Desaru with a group of friend who are doing business with plants in Kulai and I gota huge huge shock. The development is astonishing since my last visit 5 years ago. According to real statistics and my experience on the ground YES, Johor is going to be an economic powerhouse. Whether or not it will makan Singapore in 10-20 years time is yet to be seen but they have attracted huge international companies to set up shop over there over Singapore. Statistics will never lie but the providers will. Just look at Singapore. Can you even trust those statistics when they say FT population are little? Cmon! 40% of my neighbours in Singapore are PRCs!

The good thing is one no need to go Chinatown to find PRC. PRC has come to your enclaves. Lizard Long ask you guys to embrace and hug them daily.

PM Najib has spoken, Johor will be an economic power house. What are you waiting for? Next time don't say people never tell you to buy.

http://www.straitstimes.com/asia/se-asia/johor-to-be-new-economic-powerhouse-malaysian-pm-najib

 

[Investor888]

We don't even need to look at those MNCS. Local companies like mine are screwed and that is why we are pushed to Johor Bahru to stay and plant our roots within huge acres of jungles. Those were the days, hardwork forever pay. We bought properties for own stay and use cos its bloody cheap compared to Singapore which pushed us out. Can you imagine some of my cilents are paying up to S$900 a month just on levy? WTH? Its almost RM 3000 just on levy ! Many closed shop of course. But of course if your company is big shot like Sheng Shiong or Old Chang Kee you probably can survive.

Definitely he is not from manufacturing.

In 90s, sg produced more than 70% percent of hard disk drives in the world. the industry employed hundreds of thousands of commoners.
now most of the industry moved to penang and thailand and china. also in future to jb. because of high production costs and rental force the MNCs to do so. they are the MNCs and the most important thing for the MNC is to make money. they do not have to stay put in sg and do not hesitate to movd to somewhere else as long as their cost can be reduced significantly.

 

[Tekkun]

We don't even need to look at those MNCS. Local companies like mine are screwed and that is why we are pushed to Johor Bahru to stay and plant our roots within huge acres of jungles. Those were the days, hardwork forever pay. We bought properties for own stay and use cos its bloody cheap compared to Singapore which pushed us out. Can you imagine some of my cilents are paying up to S$900 a month just on levy? WTH? Its almost RM 3000 just on levy ! Many closed shop of course. But of course if your company is big shot like Sheng Shiong or Old Chang Kee you probably can survive.

It is the same with any factory. You have limited factory space and you had expanded to its limit. Overheads is fixed and turnover is capped as you do not any space for expansion. What do you do? You go into high value added products and cut off those low value products and farm them out. Or you move those low value items to low cost country while you keep high value items back home.
This what Singapore is doing. They throw out those low value items and move into high tech items. And who benefits? Iskandar. It is nearby and companies can afford to keep dual factories with a main admin office. If there's any problems, it is only a 2 hr drive away. Have you guys ever thought all those precast concrete panels for the HDB come from where? And they are produced specifically for HDB. The main point is Iskandar will not fail. It may not be producing high tech super biomedical products, but it does have factories all over and they are relocated from Singapore.

 

[xebay11]

Wah the elite attitude show already LOL.

See same can be said this way - Looks like you are the dumb one who cannot understand English, I have been saying all along, my budget SGD300k....where you reckon to invest? (dont choke...its okay to have empty brain)

Ok tell you one more time, the simplest and easiest thing to do, if you have $300k is better to put in RM FD and compound growth at 4%. No need to invest in property. Easy enough to understand?

 

[mpan12]

Hey I never said I am rich or astute. I only came here to understand better and learn why you guys invested in Iskandar when I have heard so many things negative about it. Even my friend who has bought a unit in Medini is having doubts now.

I'm hear to listen, raise issues, say I agree or disagree. It's through such sharing we can learn and be better investors, be it in Iskandar or elsewhere.

After several months, my conclusion is that many of you who bought properties in Iskandar in 2013 and after that have the intention of staying there. So even if there is bad news, I think you don't care much.

I'm not sure if I can label you as an "investor". If one has a lot of money, then putting it even in some lose money property doesn't matter much. Cos ultimately, if you are happy with the purchase, no one can tell you what to do.

Care? These xebay and mpan....after months of self professed they are rich and astute investor. And everyone else are dumb. Which part is the caring?

After so long....both guys are dumbfounded for alternative invest location for same price segments. That's speak loud and clear for the astute claimed....LOL

 

[mpan12]

If you qualify and still can manage, I'd say $300k can be invested in SG properties as downpayment. Yes prices are high already, but between SG and Iskandar, I am more confident in SG. Besides, you don't face currency risk.

But if you are getting old, no more direct income from work, have S$300k cash and want to retire somewhere, maybe I see your point of spending it on an Iskandar property. But I won't call that an "investment" as the time line is too long to predict what will happen and there is no clear direction where it is heading. Anyway, I'd think about the possibility of renting first and using the leftover money for other investments.

xebay11 mentioned something really good for you to think about. By putting $300k in a RM FD, you are guaranteed a good compounded growth of 4%. There is currency risk here. But even if you buy an Iskandar property, you are faced with the same situation. Actually it's worse.

With a property, there's a question of the future resale value. I know many are extremely bullish thinking their properties will fetch good money next time. I say, Don't be so quick to assume. You didn't buy it way back before 2013. The prices of Iskandar properties have inflated a lot in recent years. But salaries have not. And there is oversupply. These are all risks you have to mitigate.

In other words, you can't liquidate your property next time so easily if you need to. Making a loss is one thing. But if no one is interested to buy means you are stuck! You can kiss your S$300k goodbye and maybe ask your kids to try to sell it away after you pass on.

Of course, if like some here, you insist "I'm buying for my own stay so I don't give a damn whether I can sell or I will make a loss next time", then there's nothing worthy to discuss here. It's your money after all. But I wouldn't buy something big like property and not think about whether I can let it go even if I have the money. Or maybe I don't have that kind of big money yet to throw away like that!

Ok tell you one more time, the simplest and easiest thing to do, if you have $300k is better to put in RM FD and compound growth at 4%. No need to invest in property. Easy enough to understand?

 

[Frodo]

If you qualify and still can manage, I'd say $300k can be invested in SG properties as downpayment. Yes prices are high already, but between SG and Iskandar, I am more confident in SG. Besides, you don't face currency risk.

But if you are getting old, no more direct income from work, have S$300k cash and want to retire somewhere, maybe I see your point of spending it on an Iskandar property. But I won't call that an "investment" as the time line is too long to predict what will happen and there is no clear direction where it is heading. Anyway, I'd think about the possibility of renting first and using the leftover money for other investments.

xebay11 mentioned something really good for you to think about. By putting $300k in a RM FD, you are guaranteed a good compounded growth of 4%. There is currency risk here. But even if you buy an Iskandar property, you are faced with the same situation. Actually it's worse.

With a property, there's a question of the future resale value. I know many are extremely bullish thinking their properties will fetch good money next time. I say, Don't be so quick to assume. You didn't buy it way back before 2013. The prices of Iskandar properties have inflated a lot in recent years. But salaries have not. And there is oversupply. These are all risks you have to mitigate.

In other words, you can't liquidate your property next time so easily if you need to. Making a loss is one thing. But if no one is interested to buy means you are stuck! You can kiss your S$300k goodbye and maybe ask your kids to try to sell it away after you pass on.

Of course, if like some here, you insist "I'm buying for my own stay so I don't give a damn whether I can sell or I will make a loss next time", then there's nothing worthy to discuss here. It's your money after all. But I wouldn't buy something big like property and not think about whether I can let it go even if I have the money. Or maybe I don't have that kind of big money yet to throw away like that!

$300K can fully pay for my current landed property in JB, whereas it can be just used as down payment for SG property. Of course I never have that kind of money before in my bank account, so must take bank loan for JB house. Peasant talking

 

[RedsYNWA]

But why are there still reports telling us companies are not attracted to move to Iskandar? Getting skilled labour is one of the issues. I'm still guessing there are perhaps other issues not mentioned? Or the move to Iskandar is attractive only specific to certain business sectors?

Of course you cant expect investment banks, IT start-ups to be thriving in Iskandar due to lack of critical mass. But manufacturing is obviously an industry that can do very well there.

For that matter, global banks are more likely to choose HK as their Pan Asia regional HQ, while IT start-ups will favour Silicon Valley, and not our beloved Singapore. That's just the way it is these days.