wealthwire.com / by Adam English / Tuesday, October 23rd, 2012
China and Singapore built their competitive edges in the global economy through manufacturing goods for more developed nations.
Now the workforces in both countries are facing the same problem Americans faced as jobs moved overseas.
Costs, shipping distances and regulations are increasingly pushing companies to move into Malaysia.
Iskandar, an 850 square mile zone, is just across a narrow strip of water from Singapore. Malaysia is pushing its many advantages for factories looking to relocate.
Land prices are far lower and electricity costs are about half of Singapore’s rates. Tax incentives are also abundant.
Singapore has shifted to high-wage, high-skill manufacturing, along with banking and other financial services. However, China is exposed to a loss of business.
China once provided a significantly cheaper labor, but after explosive wage growth over the last decade, it is now on par with Malaysia: