TOP 10 REASONS WHY SINGAPORE SMEs SHOULD RELOCATE TO ISKANDAR

In One Past Article We Posted – “ASCENSION OF ASCENDAS  – THE SALVATION OF SINGAPORE SMEs”

It is a Do or Die Mission for Many Singapore SMEs. It has to be – sooner or later. Just like the phasing out of  Polluting Pig Farms From Singapore; the phasing out of low end jobs to other third world nations – the relentless push up in the Value chain will make all uncompetitive  SMEs obsolete one day. Unless?

Unless these SMEs Upgrade Its Technology & Go Into High Value Manufactures like Monaco. Or else it is “Close Shop Time” or “Relocation to Iskandar”.

THESE ARE THE TOP 10 REASONS WHY SINGAPORE SMES SHOULD SHIFT TO ISKANDAR

1) ISKANDAR HAS VAST LANDS FOR SINGAPORE SMES

IN THE UPWARD MARCH OF PROGRESS AND WITH LAND CONSTRAIN ONLY THE MOST PRODUCTIVE INDUSTRIES THAT CREATE THE HIGHEST VALUE CAN SURVIVE IN SINGAPORE.

2) INDUSTRIAL FACTORIES IN ISKANDAR COST ABOUT 30% IN SINGAPORE

This morning I called a tyre  Company to get a quote for Falken Tyres made in Indonesia. The required size was 175X65X14. The sales lady gave a quoted price of S$78 per tyre. 4 tyres work out to be S$312 or Rm926. Then I picked up the phone and called Chan Auto Motor Workshop in Johor. For the same Falken tyres imported from Indonesia he quoted rm155 each. That’s  Rm620.  Just half hour away in Johor I could save Rm306

3) MAN POWER CONSTRAIN IN SPORE WHILE IMPORTATION OF FOREIGN LABOUR IS MORE LIBERAL IN ISKANDAR

While Labour Cost In Shenzhen Kept Increasing higher and higher Malaysia open wide its doors to thousands and thousands of foreign workers from Nepal, Bangladesh, Myanmar & Vietnam. So Malaysia can compete against higher wage China.

 

4) CHEAP UTILITIES ALL ROUND

Electricity in Iskandar is 40% cheaper than Singapore, water is 37% cheaper. The surprise is natural gas! It is cheaper than Singapore by up to 88% These Savings can add up to hundreds of thousands each year.

 

5) EASE OF ACCESS

With the 2nd Link Bridge & The Causeway A Singapore SME can have its HQ in Singapore while using Iskandar as a production base. This is the Best of Both Worlds – Commanding First World Prices With Third World Cost following the HK – SHENZHEN Example.

6) SIMILAR LANGUAGE, FOOD & CULTURE

SPORE SMEs’ BOSSES NEED NOT SET UP FACTORIES IN NATIONS WHERE LANGUAGE & CULTURE IS A HANDICAP. EVERY SINGAPOREAN IS FAMILIAR WITH THE LANGUAGE, CULTURE & FOOD OF JOHOR

 

7) SINGAPORE GOVT INITIATIVE

THIS IS THE MOST IMPORTANT FACTOR WHY SMES MUST EITHER UPGRADE, CLOSE SHOP FOR GOOD OR RELOCATE. THE WRITING IS ALREADY ON THE WALL. AS SUCH THE GOVT OF SINGAPORE IS GIVING TAX INCENTIVE FOR SMES THAT RELOCATE THEIR OPERATIONS ABROAD

8) SINGAPORE GOVT POLICY TO RESTRAIN LOW END LOW SKILL EMPLOYMENT

FOR THE SAME REASON IT IS GETTING HARDER AND HARDER FOR SMES WHICH EMPLOY LOW END LOW SKILL FOREIGN LABOUR. IF SMES DO NOT TAKE HEED IT IS ONLY A MATTER OF TIME WHEN THEY FIND THEMSELVES STRANDED AND LEFT BEHIND IN A SEA OF PROGRESS.

9) ASCENDAS TECHNOLOGY PARK IN GERBANG NUSAJAYA – COMPLETION IN DECEMBER 2015 & LAUNCHING SOON!

THIS NEW & SPANKLING CUTTING EDGE INDUSTRIAL PARK IS ONLY 10 MINUTES FROM TUAS, SINGAPORE. 20 FACTORY UNITS WILL BE READY IN THE FIRST PHASE. A JOINT VENTURE BETWEEN SPORE ASCENDAS  & MALAYSIAN UEMS – BOTH GOVT OWNED. A TESTAMENT TO THE TWIN INITIATIVE OF A WIN-WIN PARTNERSHIP!

10) LONG TERM VALUE OF ISKANDAR INDUSTRIAL ASSETS

IN SINGAPORE INDUSTRIAL LANDS WERE FIRST SOLD AS 99 YEARS LEASEHOLD LOTS, LATER IT DROPPED TO 60 YEARS. AND THEN FURTHER REDUCED TO ONLY 30 YEARS. WHILE IN ISKANDAR INDUSTRIAL LANDS ARE ALMOST ALL FREEHOLD.

THIS IS WHERE GREAT RESIDUAL VALUE LIES.

LONG AGO IN SINGAPORE – YEO HIAP SENG BUILT ITS SOFT DRINK BOTTLING FACTORIES  ALONG BUKIT TIMAH ROAD. AS CITY PROGRESSED IN THE DIRECTION OF BKT TIMAH THESE FACTORY LANDS WERE SO VALUABLE THAT YHS DECIDED TO CONVERT THEM INTO HIGH END CONDOS. THESE ASSETS MADE MORE MONEY FOR YHS THAN BOTTLING SOFT DRINKS.

SAME FOR F & N INDUSTRIAL LANDS IN CHAN SOW LIN, KL. AS KL DEVELOPED

F & N CHAN SOW LIN LANDS BECAME TOO VALUABLE FOR INDUSTRIAL USAGE – SO F & N BUILT MAIN ROAD FRONTAGE SHOPHOUSES & REAPED A HUGE FORTUNE FROM ITS ASSETS.

TODAY IN SINGAPORE THESE LEASEHOLD LANDS WITH ONLY 30 YEARS ARE OF LITTLE USE ONCE THEIR LIFE SPAN IS UP.

HOWEVER, THERE IS STILL IMMENSE OPPORTUNITY AND VALUE IN ALL INDUSTRIAL LANDS WITH GREAT POTENTIAL IN ISKANDAR. AFTER THE OPERATION OF FACTORIES HAVE RUN OUT THEIR USEFULNESS. WHO KNOWS? YOUR INDUSTRIAL LANDS MIGHT BE SITTING ON A POT OF GOLD.

ACT NOW. ACT FAST TO SECURE YOUR BEST INVESTMENT IN ISKANDAR!