Iskandar

Iskandar: CIMB has a detailed report on Iskandar-related plays and its background. House note that Iskandar has been given RM4.3b of funds by the govt and by acreage, is the largest single development in the region. Its strategic location, beside SG and between the booming economies of China and India, accessibility to leading Asian cities; excellent air, road, sea and rail connectivity; proximity to some of the world’s most rapidly growing and important economies; and a range of attractive fiscal and non-fiscal incentives position Iskandar as an outstanding investment opportunity. Iskdanar’s proximity and lower operating costs (labour, utilities, rentals etc) are its two main appeals to SG co’s. Given the ongoing restructuring of SG’s economy, SMEs have been foraging for ways to mitigate rising costs of doing business in SG. Moving at least part of their manufacturing and logistics operations across the Causeway could offer SMEs some respite, while staying within the supply chain of their customers. In SG, the Association of SMES (ASME) has been in talks with Msian developers to build an industrial park in Johor's Iskandar region. 23 SG firms have expressed interest in the project. The planned ASME industrial hub will occupy about 50 ha of land. In recent years, more than 3,500 Singapore businesses have set up shop across the Causeway in Iskandar with a total investment of more than RM5b as at Jun 12. Over 70% of the businesses are SMEs Fishing-equipment supplier.