Johor Bahru is no stranger to the business, investment and manufacturing industry. Being at the border connecting Malaysia with Singapore and its strategic location, Johor has a lot to offer as a Gateway to ASEAN Market. Based on a report by the Johore Factory, Johor is set to become Southern Peninsular Malaysia’s most developed region where living, environment and business seamlessly cover within a bustling metropolis while gaining attention and attracting enormous investments from both local and global investors. Johor is advantageous than Singapore in its natural resources, land size and strategic functionality.
Strategic Location for Various Manufacturing and Production Industry
According to a report by the Malaysian Investment Development Authority (MIDA), Johor has been ranked number one in terms of investment in the manufacturing sector with total investments worth RM30.5bil last year. Johor Menteri Besar Datuk Dr Sahruddin Jamal said the investment figure was an increase of RM8.6bil from 2017 and has become the highest achievement in the country’s history. With a much lower cost compared to Singapore, many other countries are willing to carry out production at Johor for convenience and mediator reasons.
Higher Supply Than Demand
Research by Alpha marketing stated that since mid-2013, property supply has grown faster than demand in Iskandar Malaysia. This has resulted in a drop in rental yields and price weaknesses across the board. For the high-end luxury segment that most Singaporeans are invested in, rental yields have dropped to as low as 2% p.a. and that is dismal since mortgage rates are about 4.4% or higher.
If we critically think about it, if a Singaporean or a Singapore-based company would like to save much more in acquiring & operating a factory-based business, it would make total sense for them to seriously look for factories in Johor to open a new business, if not to expand their production facilities. So, why wait for them to appreciate what we have in Malaysia when we could have capitalized on first?
Involvement and Increase in Foreign Population
Key suburbs such as Mount Austin, Taman Molek, Bukit Indah, Nusa Bestari, and Puteri Harbour are seeing strong expatriate population growth from Asian countries. These expatriates maximise the opportunity of getting high standard education for their children while living in a lower-cost area and with businesses in hands, the profit margins are always higher than any loss. Factories in Johor Bahru have a high quality of operation due to the involvement of foreign business which also aids in the development of the economic growth of the country.
Edge Prop shows that the established overseas development companies like China-based Greenland Group, Country Garden, R&F Properties Co Ltd and Singapore-based Hao Yuan Pte Ltd, have rolled out developments in Johor as well as Toppen Shopping Centre by Ikea Southeast Asia, Legoland, Marlborough College and Hello Kitty theme park. Despite all these and IRDA’s impressive figures, Johor’s property developers fail to see a spillover onto the property development sector as many still have high inventory levels which explain the many vacant factories and why it is a good opportunity to grab the factories in Johor Bahru.
Overall Johor Bahru shows positive turnout and a visibly good prospect for investors. It is believed that the positive prospect of Johor Bahru will keep increasing over the next few years especially while the economy is having a gradual growth in industrial sectors.
In capitalizing the opportunity to secure a highly strategic factory between Port of Tanjung Pelepas and Singapore, i-Parc from Mah Sing is a collection of the premier status factory, combining the advantages of a 4-in-1 centralized function factory, office, showroom and warehouse with modern, robust corporate outlook. Log on to www.mahsing.com.my/properties/iparc-johor now to find out more about i-Parc.
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i-Parc Tanjung Pelepas: Industrial park situated 1km away from Port of Tanjung Pelepas