Why Foreign Investors Love Iskandar

No doubt, the Iskandar Special Northern Development Corridor has become a a favorite amongst foreign investors. Already investment properties in the region have started to see returns that are very lucrative, some even before they have been completed.

Ever since its inception in 2006, the Malaysian government has made every effort to attract wealthy foreign investors, in particular those from Singapore to invest in Iskandar by offering excellent tax as well as other bonuses.

Currently, not only are Singaporeans keen to invest, but investors from China, Taiwan, Japan, Europe and the United States have been coming in droves to check out the prime investment possibilities in Iskandar.

There are many of reasons why Iskandar is such an appealing investment for foreigners.

1) Cheap Land

If there is one thing readily available around the Iskandar Region by the boat loads, it's land - virgin land that the government has delineated as freehold. With land becoming very scarce and more costly in Singapore, it’s a good idea for Singaporean firms to expand to Iskandar which is just across the Straits of Tebrau rather than to other regions like China. More Singaporeans are also taking up holiday or weekend homes in Iskandar as well. Again, it’s a good idea simply because they can get a landed property in Iskandar when it's even difficult to get a low-cost HDB flat in Singapore.

2) Cheap Labor

There is unquestionably talent aplenty in Iskandar. Businesses have the luxury of picking from the local talent at a very reasonable price. The local talent has the competence and knowledge which is comparable to Singaporeans as well. A number of them are even trained in  Singapore. And if there are any jobs that snobbish Singaporeans consider below them to do, such as manual labor and odd jobs, well there are many people who are willing to do it in Iskandar too.

3) Competitive Advantage In Exchange Rates

With the exchange rate in most countries is at least double the Malaysian Ringgit, it is just a no brainer that foreigners can invest at half the price of what they ordinarily would pay in their own countries and get double the earnings. They will save on their operational costs as well, therefore it is quite sensible for them to move their operations to Iskandar. For residential properties, foreigners could get world class landed properties as well as high end condos that come complete with the lifestyle suitable for the wealthy at a very affordable price.

4) Future Infrastructure Projects

Construction is already under way to build a high speed rail link that connects Singapore to Kuala Lumpur and it will run through Iskandar. This makes it quite convenient for people from either side of the causeway to travel. And since the link goes all the way to Kuala Lumpur, Malaysia's capital city, this makes it very convenient for business people to go for meetings.

Already new projects being proposed in Iskandar are getting excellent response from foreign investors. But what of the local investors? This is a big question mark on the minds of local investors as they don't see any competitive advantages for them to give some thought to Iskandar as a possible investment, in spite of the potentials that are available there. In addition to know what to invest in property in Iskandar, you also have to know where to invest.

If you would like to know more about how you too can be a part of the Iskandar opportunity, acclaimed Property Guru Milan Doshi and a panel of illustrious speakers will have a talk on the topic of property investment in Iskandar for local Malaysians. Organized by Wealth Mastery Academy, the talk aims to make Malaysians aware of the great potential that is in their own backyard. Click here for further details.