Shopping, Medical, and in future, Retire in Johor too
Saturday, April 3rd, 2010It’s mainly shopping and medical for now, but I foresee, in future, middle and low-wage Singaporeans earners who have fallen behind may also find it necessary to retire in Johor too. For the price of a 2-room HDB flat in Singapore,
one can get a 2-3 bedroom terrace house in Johor, just 15 minutes north of Tuas.
It does make some sort of sense really, since now we are suppose to consider our HDB flats as part of our retirement funding, should the time come for those have all their money tied up in their flat, with no money to retire, they can just sell it off, get a house in Johor and retire.
IT’S MORE THAN JUST SHOPPING IN JOHOR
Insight Down South by SEAH CHIANG NEELIVING in one of the most densely-populated and expensive cities in the world has led to greater Singaporean dependency on Johor for cheaper necessities.
Traditionally, Johor has always meant cheaper shopping and chilly crabs for Singaporeans. But these days as Singapore becomes more affluent (it ranks 6th globally on per capita GDP) and embraces the cost structure of a global city, this attitude is changing.
The Malaysian state no longer just represents a few bargains for a small number of people. For a segment of the population, mostly middle and low-wage earners who have fallen behind, the frequent trips to Johor have become a necessary feature to combat high costs.
This trend has become more prevalent in recent years as a result of relentless price spirals and higher unemployment.
Last year, the average household income fell by 2% just as Mercer Consultancy was ranking Singapore as the 10th most expensive of 143 global cities.
Increasingly, Singapore “heartlanders” are making frequent trips to Johor to buy cheaper household goods, groceries, baby products and other family essentials that could cost 50% higher back home.
“We buy only what is necessary for the home and provided if there is savings,” said a taxi-driver, a frequent shopper with his wife. It is a big help to his family budget.