It is true that as cost gets higher in SG, more high level staff/bosses set up operations in Msia, usually within close proximity to sg. It is not a new trend, it has been happening all the while. All companies big and small. Small printing firms, also larger listed firm like venture. It is not unique to SG/Msia, it happens also Taiwan/China, HK and shenzhen, etc etc
(26-08-2015, 12:52 PM)Big Toe Wrote: [ -> ]It is true that as cost gets higher in SG, more high level staff/bosses set up operations in Msia, usually within close proximity to sg. It is not a new trend, it has been happening all the while. All companies big and small. Small printing firms, also larger listed firm like venture. It is not unique to SG/Msia, it happens also Taiwan/China, HK and shenzhen, etc etc
stable govt policies - is what JB dont have. The car registration policy is one. Dont know if they want to track or want to see how to extract more money out of Singaporeans.
No companies would want to invest long term in a flip flop govt.
HK and Shenzhen is bad comparison. SZ has a pool of 1bn to choose from. The good ones in Msia already run to SG or OZ already.
It is true that many brighter Msians are working abroad as Msia offers limited opportunities.
As for the Singapore companies invested in Msia now, well, they did not have have much of a choice.
It's more of a forced decision rather than a choice. The choice is to close down or to head north where it is still possible to sustain operations which is lower margin and is labor/land intensive. Especially true for companies involved in manufacturing.
But what about the higher value add manufacturing? Put it this way, even premium medical equipment is slowly being shifted to china for assembly/manufacturing. The $1M bentley car you are driving maybe assembled in Europe, from sub assemblies manufactured in china.
This is a real danger, that a split similar as Yellow/Red in Thailand. If it is messed with religious and races differences, than it might become what's happening in South Thailand...
Johorean are one of the key supporters, which means Singapore isn't too far from the mess...
Malaysians split over Bersih rally, survey finds
(Aug 28): Malaysians are split in their opinions of tomorrow's Bersih 4 rally, a recent survey by independent pollster Merdeka Centre has found, with 43% viewing it favourably as opposed to 47% who do not support the assembly.
The survey found that while 48% of the men surveyed were in support of Bersih 4, only 39% of women had the same opinion. Fifty-one percent of urban voters viewed the rally favourably but among the rural folk, only 31% supported it.
Similarly, 57% of those from households earning more than RM3,000 a month were supportive of Bersih and only 28% of those who come from households earning less than RM3,000 were in favour of the rally.
But the disparity between those who were in support of Bersih 4 was more evident in the race category, where it was found that Chinese supporters of Bersih made up more than three times the percentage of Malays who were in favour of the rally.
"Perhaps the most marked finding was that the rally was supported by 81% of the ethnic Chinese respondents and 51% of the ethnic Indian respondents but only favoured by 23% of the ethnic Malay voters interviewed," Merdeka Center said in a statement today.
The 1,010 people surveyed were randomly selected from Peninsular Malaysia along the lines of ethnicity, gender, age and parliament constituencies and were interviewed between August 15 and August 21.
...
http://www.theedgemarkets.com/sg/node/225667
Economic woes weigh on Najib
Published
2 hours ago
Shannon Teoh Malaysia Correspondent In Kuala Lumpur
The ebbing confidence in Malaysia's economy, with the ringgit sliding to 18-year lows against the United States dollar, has forced Prime Minister Najib Razak to take emergency measures.
The embattled Malaysian leader will announce these steps today, just weeks after forming a "Special Economic Committee" that includes his brother and CIMB chief Nazir Razak, as well as Tan Sri Nor Mohamed Yakcop, famed for the currency peg and capital controls that were put in place following the 1997 Asian financial crisis.
But the Najib administration has vowed not to return to those measures. It insists economic fundamentals are solid but external forces are being felt more deeply because the the market is more liberalised than before.
The ringgit - Asia's worst-performing currency this year - traded at over 4.3 to the greenback all of last week and ended last Friday at 3.05 to the Singdollar, with analysts expecting it to slip further.
The net outflow of foreign funds from Malaysian equities for the first eight months of the year stood at RM16 billion (S$5.3 billion), more than twice the RM6.9 billion for the whole of last year. Malaysia's central bank last Friday kept its benchmark interest rate unchanged at 3.25 per cent, as was widely expected with the ringgit continuing to slide and the global economic outlook remaining uncertain.
Datuk Seri Najib has often sold his leadership on sound economic growth and desperately needs a turnaround amid growing political uncertainty.
The controversy surrounding political funding and continued doubts over state investor 1Malaysia Development Berhad's RM42 billion debt pile have resulted in growing calls for him to step down, even from within the ruling party. He has so far weathered the storm largely by using his executive power to eliminate threats from within the government. But an increasingly bearish market may force his colleagues and allies to turn against him instead of having to explain a tanking economy to voters.
The daily average trading value of KLCI is around RM1.9 billion (based on AR 2013). The RM20 billion injection, should be significant enough, to create an impact...
Malaysian PM Najib announces $6.6 billion boost for stock market
KUALA LUMPUR (Sept 14): The Malaysian government will inject RM20 billion ($6.6 billion) into a state equity investment firm to shore up the stock market, Prime Minister Najib Razak said on Monday, in a bid to boost confidence in a country reeling from a political scandal.
Datuk Seri Najib told a news conference that the equity investment firm, ValueCap, will invest in undervalued Malaysian companies.
...
http://www.theedgemarkets.com/sg/article...ock-market
KLCI need rescue meh? Maybe EPF with its huge holdings of Bursa stocks.
EPF goes down > People savings > Msia goes down
(14-09-2015, 04:29 PM)CityFarmer Wrote: [ -> ]The daily average trading value of KLCI is around RM1.9 billion (based on AR 2013). The RM20 billion injection, should be significant enough, to create an impact...
Malaysian PM Najib announces $6.6 billion boost for stock market
KUALA LUMPUR (Sept 14): The Malaysian government will inject RM20 billion ($6.6 billion) into a state equity investment firm to shore up the stock market, Prime Minister Najib Razak said on Monday, in a bid to boost confidence in a country reeling from a political scandal.
Datuk Seri Najib told a news conference that the equity investment firm, ValueCap, will invest in undervalued Malaysian companies.
...
http://www.theedgemarkets.com/sg/article...ock-market
Did a quick readup on ValueCap. It is wholly owned by Khazanah Nasional (Msian SWF), KWAP (pension retirement fund) and PNB and its previous mandate was to manage 3rd party funds by attracting mainly shariah funds. It is purely a fund manager.
Sceptics/critics are going to have the usual suspects - (1) Is this going to smoothen the path for 1MDB's proposed IPO (part of najib's rationalization plan)? (2) So who is going to provide the 20bil rm of funds?