While I realize there are some issues in Singapore now related to a very strong economy and largely a limited amount of space, I think sometime people forget how good the last several decades have been for Singapore. Yes, I realize that good fortune can bring along new challenges. And it seems maybe Singapore hasn't quite been doing as well on those new challenges as they have growing the economy (but honestly it would be hard to do so - they did close to perfect on growing the economy, even if they do great in other areas they won't be as good as the economic growth has been). And those familiar with the success Singapore has had economically shouldn't think this is just what happens. If Iskandar can do even 50% as well it will be a great success.
So while we look at the benefits and investment potential of Iskandar here is a bit of history on economic growth per capita. I am pulling this data from a post I wrote on my blog:
http://investing.curiouscatblog.net...wth-for-selected-countries-from-1970-to-2010/
In 1970 Singapore GDP per capita was similar (a bit ahead) of Panama - a county that had as its main competitive advantage the same thing Singapore did - a good location for international shipping.
GDP in 2010 USD
Singapore__1970__$4,260___2010_$42,650
Panama____1970__$3,480___2010__$7,700
Singapore grew GDP per capita by 901% in 40 years. I didn't look at every country, but the only 2 that I found that beat that performance: Korea (up 1,430%) and China (up 1,217%). Indonesia increased 543%, Thailand 441% and Malaysia 308%. See more on the blog post. Indonesia, Thailand and Malaysia have all actually done very well. But compared to Singapore the difference is pretty obvious just walking around in the streets (and more so if you dig into the macroeconomic data).
Singapore also went from poor (maybe mid level) to rich. In 2010 GDP per capita was $42,600 (above Germany, France, UK and Japan). The USA was at $47,100. There are many good things that happen when such wealth is available (like a good MRT system [even if people complain, everywhere people complain about the subway they have - it seems to me Singapore's can, even should, be better, but it is also better than most others]).
Malaysia has to the potential to do very well economically in next 20 years. And I think the Johor area has the best prospects in Malaysia. From the investment point of view, probably the greater the GDP growth the more money will be made (other factors matter: urban planning, safety, good mass transit and education... but with strong GDP growth investments will likely be very profitable) by investors. But if Iskandar is successful there will also be new problems that need to be dealt with.
