What does it all mean?

There is a Singaporean Fantasy Wish. It goes something like this:

Indonesia should just let us buy Batam. We can then build it up and solve our land scarcity problems, and all the related problems.

That is of course the simplistic view. It would solve some problems, but present others of course. But that's not relevant here.

Malaysia has unveiled a US$105b plan to develop southern Johor, and create a free access zone where Visitors from Singapore can live and work (and even retire).

This is a very clever solution to the problem of competition. Instead of competing, the KL govt has made an interesting unilateral move to allow cooperation, and spillover economic development and benefits. Think about it.

1. The two ports in Johor can better serve as support bases. Goods can enter by Singapore ports and be transferred to Johor ports for onward delivery. The disadvantage of Johor ports lacking connectivity is partially solved.
   
2. Land and homes prices in southern Johor will rise as Singaporeans consider living there and working in Singapore. Or even moving their business there.
   
3. Bridal saloons offering wedding packages to Singaporeans will see even more business. Singapore-based companies may move there.
4. Nursing homes there can have Singaporean clients and not need to send them back once a month to renew the visa. (Yes, you can leave your parents there and forget about them).
   

Of course there will be issues to resolve. It is still not going to be as convenient as staying in Singapore. The causeway may eventually need to be widen or (gasp!) be replaced by a bridge to cater for the increase in traffic. A rail system integrated with the MRT line would be very good. A third link in the east might even be needed (and linked to the NE line perhaps?)

Concerns that Singaporeans have would include crime, but there are plans to address that. Another concern is stability. With the current administration, all is fine and dandy. Cooperation is the order of the day. And we can be assured that the Free Access Zone will allow us free access.

But if nationalistic fervour erupts, if ground sentiments about rising prices, and being priced out of Southern Johor grow, if overzealous Islamic police make midnight visits to homes and rouse the "visitors from Singapore" and rallying calls for "bumiputra" (sons of the earth) destabilises the situation, there would be a lot of loss and heartache. The Malaysian foreign minister gives one pause. He blows with the wind. Under MM (Mahathir Mohd), he was stridently anti-Singapore. But with the current PM, he's all niceness and fairness. I guess he knows which side his bread is buttered.

Over time some of the competiveness will narrow. Prices in Johor will increase as wages and land costs increase (because Singaporeans always spoil the market). :-)

But never mind. For now it is a good thing. And I applaud Malaysia for their astute leaders.

Of course Mahathir will just have a field day criticising this plan. Maybe they'll shut him up if they tell him it is the grand plan to build his bridge. But of course he may choose to see it as the "kowtowing" PM selling Malaysia piece by piece to Singapore.

Oh on a side issue, Anwar says he pities Mahathir. That must really sting Dr M. :)