Why Singapore investors are not jumping on the Iskandar craze yet

There are only 15 major developments.

According to UOB Kay Hian, its discussions with the majority of Singapore developers reveal that most are warming up to the IM idea but are not jumping on the bandwagon just yet, citing perceived security risks and the absence of a critical mass despite cost advantages and better affordability.

It further noted that investors are adopting a cautious wait-and-watch approach, observing the performances of state-linked companies that have taken the lead. 

Here's more:

Singapore is the largest foreign investor in IM with Singapore investors accounting for about 16% of total foreign investment spread across over 300
manufacturing projects and other developments as at Sep 12, according to the IRDA.

There are about 15 major developments by Singapore investors in IM with most in Zone B (Nusajaya and Medini) due to its close proximity to Singapore, according to Knight Frank and various media sources. 

Singapore companies form the majority of those setting up factories in IM. The tightening of foreign labour policies and increasing industrial land prices in Singapore have led some SMEs to consider relocating to IM, especially for heavy industries, food manufacturing and power plants with land-intensive requirements. 

The government also announced assistance to businesses relocating some operations offshore in 2013 Budget. Singapore real estate investors have been key investors in Malaysian property, especially high-end properties in Kuala Lumpur, IM and Penang. In IM, 

Singaporeans and other foreigners accounted for almost 80% of the purchasers at UEM Land’s developments Imperia at Puteri Harbour and Impiana at East Ledang.

The seven rounds of property cooling measures in Singapore’s residential segment and the more affordable options in IM are prompting many

Singaporeans to consider IM as an investment option. However, security remains a key concern, though it has reportedly improved significantly.