Exactly.
I can tell you from a business point of view, why not I hire 3x Malaysians for 1/3 salary. Station 1 manager here to manage them?
Reduce cost, reduce office rental. Same productivity. And can change new car more often
singapore scholars must have calculated the risks and rewards.. probably...
maybe they thinking pushing all the lower value added activities in the food chain to Johor..
then all the corporate HQ will be in Singapore..
So it becomes easy for manufacturing biz units to be based there.. but the SEA regional HQ will be here.
Singapore has been pursing this strategy all along..since LKY time.
always dropping lower value activity ... and pushing for higher value activity in singapore.
And developing singapore into a financial hub for the region. (I would think Financial hub here is more suitable than the surrounding regions due to our low crime rate and mild crime(very seldom got kidnapping and guns involved).
It could be the govt already did the risk assessment ..that to be relevant as a regional HQ, this is the last step liao. If not, people moved out.
But this should be the last ditch effort liao.
coz once the biz units are settled down there... and the free trade zone culture starts to form .... (workers who choose to work inside adopt to the international biz miindset , not the lepak mindset) ... then slowly .. the regional HQ might feel comfortable in moving more corporate functions there.
So I forsee... these culture and willingness to shift more corporate functions inside .. will take place in 10 years time.
then singapore.. really only can rely on very strong financial hub and entertainment hub to retain the main critical corporate functions (usually the C_suites would like to be here) here...
and the entertainment hub will be probably a "las vegas" strip style island or the whole stretch facing the sea at the marina ... where striptease, recreational drugs etc can be done. while the kids and family can go to more shopping and theme parks created here. Casino was the first phase.