Singapore Malaysia mega hub: 3 sectors, before and after
Have you ever heard of Singapore Malaysia mega economic hub?.
Many investors and corporate strategists thought good opportunities for business can be found within one single nation. However now it might not be the case. There is one “mega hub” that exists between the two countries above, and this region has been solidifying its status as a strong location for investment. Located between two countries, this integrated ecosystem offers what was deemed impossible, Johor’s cost-effective scalability, manufacturing muscle, vast talent pool and Singapore’s global connectivity, financial clout and innovation power.
With the benefits of this location, there are three areas that emerged as potential sectors for strategic investment: logistics and supply chain, tourism and hospitality, and healthcare.
Supply Chain and Logistics
Before this hub began to take shape, businesses operating in both countries faced their own struggles and problems. The primary constraint was space and cost. Singapore’s ports, known for its commitment to world-class services, come with high cost for warehousing and storage. With this price tag, companies can only maintain minimal, expensive inventory or face crippling overheads. On the other hand, air freight, which is often used for high-value electronics or perishable goods, is very expensive, which makes product shipping a difficult challenge for supply chain companies.
On the other hand, utilizing larger, cheaper warehouses in distant parts of Malaysia has other problems a swell: delays, customs clearance and inability to track movement of shipment. This results in a problem for large automotive parts, bulky furniture, or high-volume but low-margin goods, as neither expensive air freight nor unpredictable land shipping are optimal.
Now with the establishment of this mega hub, it is expected that the challenges will soon find their solution. Imagine world class port and customs clearance, combined with cost-effective land for storage and affordable services serving to eliminate the need for expensive air freight rush or slow, unpredictable warehouse shipping. Now it is not impossible to distribute high-value semiconductors, bulky automotive components, furniture with more efficiency and lower costs.
Tourism
Historically, visitors could only pick either of two countries to visit. This resulted in competition rather than fostering collaboration. With the Woodlands Causeway being crowded on long weekends, traveling between two countries seems like a hassle for many. Before Singapore’s role as a short-stop MICE and urban tourism hub, and Johor’s attractive location for brief getaways were combined, there were a lot of obstacles visitors had to face.
Thanks to this special economic zone, visitors will no longer have to face these problems. One of the elements in this transformation is the Joho Bahru-Singapore Rapid Transit System (RTS) Link, a train that can shorten grueling cross-border commute into a reliable sub-30-minute journey. Now MICE attendees in Singapore can take a short escape to Johor for leisure golf or spa trips. Perhaps a trip to Legoland Malaysia and Universal Studios Singapore might become a possibility soon. Streamlined immigration and shared digital payment system will reduce hassle of payment, encouraging tourism in both areas.
Healthcare
While Singapore established itself as a premium global hub for excellent medical treatment and cutting-edge research, most people are troubled by the high medical expenses that comes with it. Conversely, Malaysia had significantly more affordable price point, thought they might be comparatively lacking in R&D and innovation. Not only patients, but also investors needed to choose between one of the two. This might cause problem especially for those who commute between Johor and Singapore, and also need to monitor their health regularly.
However, with the establishment of this special zone, these problems might not become an issue anymore for them. This seamless integration might support high-tech treatment backed up with affordable price and world-class research and development. For regular commuters, this means they can monitor their check-ups and reduce their medical expenditure.
The Singapore-Johor mega hub is not just a geographical concept; it is a transformative economic strategy that can change the future of ASEAN investment. A seamless integration between Singapore’s global hub status, financial prowess, and high class research and innovation with Johor’s scalability, cost-efficiency and growth potential might come to fruition. Investors and corporations might engage with agencies from both sides now to secure a strategic position in the area.
At Vintage Management, we provide consultation services to business owners, including those who want to make advantage of this Singapore Malaysia hub. If you are one of them, please contact us here for a private discussion: https://seeandconnectsg.com/contact/
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