Iskandar prices rising – but where’s the queue?

Iskandar prices rising – but where’s the queue? 

:Investors are said to be worried over future of the project should Malaysian PM fall from power

 

 

ESTHER FUNG

 

 

esther@mediacorp.com.sg

 

 

.

SINGAPORE investor response to the Iskandar development region may have been lukewarm, but that hasn’t stopped UEM Land from raising asking prices for industrial land.

.

Average prices have progressively risen from20 ($8.40) to 26 ringgit per square foot for phase one of southern cluster in the Johor special economic zone since January last year. Future sites may also be offered on less favourable terms — leasehold instead of freehold.

.

All this at a time when investors are already worried about Malaysia’s development track record and the future of Prime Minister Abdullah Badawi’s pet project should he fall from power.

.

“We expected queues of investors, but honestly, there were no queues,” said Mr Wan Abdullah Wan Ibrahim, UEM Land’s managing director, who was in Singapore yesterday to give an update on the Southern Industrial and Logistics Clusters in Iskandar Malaysia.

.

Since January last year, 130 acres of freehold land in the southern cluster has been bought by22 Singapore companies :— less than expected.

.

“We had to go and harass them to get them to look at us”, he joked at a briefing for around 400 businessmen. “The general feeling that I get from Singaporean investors whether they are buying a house or industrial land is that they want to see delivery.”

.

Among those investing so far are advanced technology firms such as Yong Nam Holdings, HG Metal Manufacturing and Jurong Technologies. Yong Nam is constructing a fabrication factory and plans to soon start production.

.

They were attracted by its proximity to Singapore and cost-savings, said Mr Wan Abdullah.

.

Mr Wan Abdullah conceded that the first 300 acres of the Iskandar industrial park was perhaps not yet as good as those in Jurong or Suzhou. However, he said improvements would be made and a different business model adopted for sales of the next 400 acres of land in Phase 2, which are due to kick off late this year.

.

At yesterday’s briefing, some potential investors asked about green initiatives such as shoreline protection, waste management and air pollution control.

.

While environmental policies were not established yet, Mr Wan Abdullah assured investors that there will not be any polluting industries there.

.

A recent Reuters report also raised investor concerns about political instability given the ruling party’s waning popularity.

.

Malaysian High Commissioner to SingaporeN Parameswaran dismissed the report as “frivolous”, saying: “Investors need not be concerned about this as Johor has not fallen into opposition hands.”

:Investors are said to be worried over future of the project should Malaysian PM fall from power

 

 

ESTHER FUNG

 

 

esther@mediacorp.com.sg

 

 

.

SINGAPORE investor response to the Iskandar development region may have been lukewarm, but that hasn’t stopped UEM Land from raising asking prices for industrial land.

.

Average prices have progressively risen from20 ($8.40) to 26 ringgit per square foot for phase one of southern cluster in the Johor special economic zone since January last year. Future sites may also be offered on less favourable terms — leasehold instead of freehold.

.

All this at a time when investors are already worried about Malaysia’s development track record and the future of Prime Minister Abdullah Badawi’s pet project should he fall from power.

.

“We expected queues of investors, but honestly, there were no queues,” said Mr Wan Abdullah Wan Ibrahim, UEM Land’s managing director, who was in Singapore yesterday to give an update on the Southern Industrial and Logistics Clusters in Iskandar Malaysia.

.

Since January last year, 130 acres of freehold land in the southern cluster has been bought by22 Singapore companies :— less than expected.

.

“We had to go and harass them to get them to look at us”, he joked at a briefing for around 400 businessmen. “The general feeling that I get from Singaporean investors whether they are buying a house or industrial land is that they want to see delivery.”

.

Among those investing so far are advanced technology firms such as Yong Nam Holdings, HG Metal Manufacturing and Jurong Technologies. Yong Nam is constructing a fabrication factory and plans to soon start production.

.

They were attracted by its proximity to Singapore and cost-savings, said Mr Wan Abdullah.

.

Mr Wan Abdullah conceded that the first 300 acres of the Iskandar industrial park was perhaps not yet as good as those in Jurong or Suzhou. However, he said improvements would be made and a different business model adopted for sales of the next 400 acres of land in Phase 2, which are due to kick off late this year.

.

At yesterday’s briefing, some potential investors asked about green initiatives such as shoreline protection, waste management and air pollution control.

.

While environmental policies were not established yet, Mr Wan Abdullah assured investors that there will not be any polluting industries there.

.

A recent Reuters report also raised investor concerns about political instability given the ruling party’s waning popularity.

.

Malaysian High Commissioner to SingaporeN Parameswaran dismissed the report as “frivolous”, saying: “Investors need not be concerned about this as Johor has not fallen into opposition hands.”

 

Source: Today Newspaper

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s