Industrial property in Singapore among sectors likely to take a hit from JS-SEZ, analysts say

WHILE some industries in Singapore, such as banks and gaming, are poised to benefit from the establishment of the Johor-Singapore Special Economic Zone (JS-SEZ), some industries may not have it as easy.

Market watchers who spoke to The Business Times identified the industrial property segment in Singapore as one that could be hit. They added that retail properties could see more limited impact.

Wong Xian Yang, Cushman & Wakefield’s head of research in Singapore and South-east Asia, noting the major implications of the SEZ for the industrial sector, said that those industries that are manpower- or space-intensive could achieve significant cost savings by relocating there, he said.

Fears that the SEZ may hurt certain industries in Singapore were raised in Parliament this week, with Member of Parliament Saktiandi Supaat citing the local transport and logistics sector as one that might be affected by the entry of Malaysian logistics into Singapore.

Minister of State for Trade and Industry Alvin Tan responded, saying that the government is aware of the concerns that it might hurt certain industries, and that it is monitoring the impact.