RISING COSTS GIVE ADDED PUSH
While Singapore firms shifting manufacturing to Malaysia is not new, analysts say the trend is accelerating as global pressures mount.
Rising costs linked to the Middle East crisis, coupled with generous tax incentives under the JS-SEZ, are pushing more companies to rethink where they produce goods.
The blueprint and masterplan for the JS-SEZ have not been launched but some Singapore companies are already moving operations across the Causeway and enjoying incentives that have been announced.
The trend of Singapore firms moving to Malaysia is part of “Singapore companies right-sizing their geography”, said Lennon Tan, president of the Singapore Manufacturing Federation (SMF).
It was “not a vote of no-confidence in Singapore” but, rather, how F&B players are restructuring their business, he said.
Read Full Article At Source
