GEORGE TOWN: Kuala Lumpur Metro Group, developer of water chalets and water homes in Port Dickson and Malacca, is planning to develop a RM200-million water homes resort project in Teluk Kumbar on Penang island.
KL Metro Group managing director Datuk Low Tak Fatt said on March 6 the project, comprising 326 water chalets and sky pool villas, was scheduled to start by year-end and to be completed in 2012.
KL Metro said the project would be self financed and have three designs while the land area would range from 800 sq ft to 1200 sq ft. Prices start from RM500 to RM600 per sq ft.
The 80 water chalets would have a jacuzzi on the balcony, 166 water chalets a private pool and another 80 sky pool villas (multistorey) would each have a private pool.
"We are hoping to sell 75% of the units, which wouldl be leased back to us. The rest of the units will be run as a resort with five-star facilities," Low said at a press conference.
Low said all the units would be furnished and KL Metro targeted 80% to 90% of the buyers to be foreigners. "So far, we have attracted buyers from over 27 countries," he said.
Out of the total area of the project, 18 acres would be above water while only two acres will be on land.
Chief Minister Lim Guan Eng, who was at the press conference, said the state government will fast track the approvals for the project.
"This project will benefit the tourism sector and we will ensure that all conditions and specifications are met by the developer before approvals are given," Lim added.
The project involves sea reclamation of 2.5 acres to build the club house, swimming pools, podium car park and other facilities.
KL Metro Group won CNBC's international property award (2007) in London for the current project, Legend International Water Homes under the category "best architecture and best development".
Touted to be the largest water chalet developer in the country, the developer completed 392 units of water chalets and service suites, now managed by The Legend Group of Hotels and Resorts.
Phase Two of the project, the Legend International water Homes is expected to be completed by May this year.
By The EDGE Malaysia (by Regina William)
Saturday, March 7, 2009
Cement makers pin hope on stimulus package
Listed cement companies appear to be doing well based on their latest quarterly results but analysts and industry association agree that it could be quite a different scenario this year.
Cement producers, like its construction peers, are counting on the Government stimulus packages to provide growth.
There is also the issue of rising costs for the industry.
The demand for cement is expected to drop this year as the construction sector slows down.
While there is hope that quick project implementation could help boost the industry in the second-half year, analysts and the industry association, however, expect demand to likely rise only in early 2010.
Cement and Concrete Association of Malaysia executive director Grace Okuda says the 5% electricity tariff reduction effective March 1 will not be enough to reduce the cost of production for the industry.
Cement producers are still absorbing the 26% electricity tariff hike announced in August last year, Okuda says.
“The industry was hard hit by the hike as it is a major user of energy and a 5% reduction is not much compared with the previous hike,” she says.
Agreeing with similar sentiments by stock analysts, Okuda says: “We expect cement demand to drop in 2009.”
However, if the implementations of the Government’s stimulus packages are quick, it could help boost cement demand for the year, she says.
Okuda also confirms that construction activity has slowed down.
An analyst with a bank-backed brokerage says her firm has a “trading buy” on the construction and related sectors, in the hope of a higher amount from the mini-budget stimulus package to be announced on March 10.
Cement makers such as LaFarge Malayan Cement Bhd are waiting for the Government package despite the fact that it exports 30% of production.
“But the RM7bil stimulus package announced earlier is not enough to help the construction sector and thus, the cement manufacturers,” she says.
The next package will have to be bigger to boost demand for cement, the analyst adds.
AmResearch analyst Mak Hoy Ken says even with the fiscal pump-priming, there will be an “implementation lag”. “A boost in demand will be seen by the first month of next year,” he says.
Mak points out that unlike steel, cement prices has only recently (in the past six months) shot up, which further put a dampener on demand.
Following the liberalisation of the sector on June 5 last year, there have been two rounds of price hikes for cement by 15% to 20% in June and about 8% in August the same year due to an unprecedented 63% hike in diesel price and 26% rise in electricity tariffs respectively.
Cement price currently stands at about RM275 per tonne from RM220 in early 2007.
However, rebates are often given to customers for the sale of cement, so the real price is hard to determine, Mak adds.
The country’s largest cement manufacturer, LaFarge Malayan Cement, reported a 79.5% jump in pre-tax profit to RM129.4mil for its fourth quarter ended Dec 31 compared with the previous corresponding period.
The company, in its Feb 18 announcement, said the huge gain was mainly attributable to higher revenue, lower maintenance costs due to the timing of scheduled plant shutdown as well as the non-recurring gain on the sale of certified emission reductions of RM29.6mil.
Smaller but also main board-listed Tasek Corp Bhd did not report year-on-year quarterly performance due to a change in financial year-end but posted a pre-tax profit of RM28.3mil for the fourth quarter ended Dec 31 on a revenue of RM143.2mil.
Tasek recorded a slight rise of 0.2% in revenue to RM143.25mil in the fourth quarter compared with RM142.96mil in the preceeding quarter.
However, pre-tax profit fell to RM28.3mil against RM34.1mil in the third quarter, “affected by lower demand for local cement and higher operating costs,” the company said in its Feb 23 announcement.
YTL Cement Bhd, a major local cement producer which analysts estimated as being larger than Tasek but smaller than LaFarge, posted 11.3% growth in pre-tax profit to RM69.9mil and 55.9% jump in revenue to RM492mil for its second quarter ended Dec 31 compared with a year ago.
“The increase in revenue and pre-tax profit were substantially attributed to overseas operations and better selling prices,” it said.
By The Star (by Loong Tse Min)
Cement producers, like its construction peers, are counting on the Government stimulus packages to provide growth.
There is also the issue of rising costs for the industry.
The demand for cement is expected to drop this year as the construction sector slows down.
While there is hope that quick project implementation could help boost the industry in the second-half year, analysts and the industry association, however, expect demand to likely rise only in early 2010.
Cement and Concrete Association of Malaysia executive director Grace Okuda says the 5% electricity tariff reduction effective March 1 will not be enough to reduce the cost of production for the industry.
Cement producers are still absorbing the 26% electricity tariff hike announced in August last year, Okuda says.
“The industry was hard hit by the hike as it is a major user of energy and a 5% reduction is not much compared with the previous hike,” she says.
Agreeing with similar sentiments by stock analysts, Okuda says: “We expect cement demand to drop in 2009.”
However, if the implementations of the Government’s stimulus packages are quick, it could help boost cement demand for the year, she says.
Okuda also confirms that construction activity has slowed down.
An analyst with a bank-backed brokerage says her firm has a “trading buy” on the construction and related sectors, in the hope of a higher amount from the mini-budget stimulus package to be announced on March 10.
Cement makers such as LaFarge Malayan Cement Bhd are waiting for the Government package despite the fact that it exports 30% of production.
“But the RM7bil stimulus package announced earlier is not enough to help the construction sector and thus, the cement manufacturers,” she says.
The next package will have to be bigger to boost demand for cement, the analyst adds.
AmResearch analyst Mak Hoy Ken says even with the fiscal pump-priming, there will be an “implementation lag”. “A boost in demand will be seen by the first month of next year,” he says.
Mak points out that unlike steel, cement prices has only recently (in the past six months) shot up, which further put a dampener on demand.
Following the liberalisation of the sector on June 5 last year, there have been two rounds of price hikes for cement by 15% to 20% in June and about 8% in August the same year due to an unprecedented 63% hike in diesel price and 26% rise in electricity tariffs respectively.
Cement price currently stands at about RM275 per tonne from RM220 in early 2007.
However, rebates are often given to customers for the sale of cement, so the real price is hard to determine, Mak adds.
The country’s largest cement manufacturer, LaFarge Malayan Cement, reported a 79.5% jump in pre-tax profit to RM129.4mil for its fourth quarter ended Dec 31 compared with the previous corresponding period.
The company, in its Feb 18 announcement, said the huge gain was mainly attributable to higher revenue, lower maintenance costs due to the timing of scheduled plant shutdown as well as the non-recurring gain on the sale of certified emission reductions of RM29.6mil.
Smaller but also main board-listed Tasek Corp Bhd did not report year-on-year quarterly performance due to a change in financial year-end but posted a pre-tax profit of RM28.3mil for the fourth quarter ended Dec 31 on a revenue of RM143.2mil.
Tasek recorded a slight rise of 0.2% in revenue to RM143.25mil in the fourth quarter compared with RM142.96mil in the preceeding quarter.
However, pre-tax profit fell to RM28.3mil against RM34.1mil in the third quarter, “affected by lower demand for local cement and higher operating costs,” the company said in its Feb 23 announcement.
YTL Cement Bhd, a major local cement producer which analysts estimated as being larger than Tasek but smaller than LaFarge, posted 11.3% growth in pre-tax profit to RM69.9mil and 55.9% jump in revenue to RM492mil for its second quarter ended Dec 31 compared with a year ago.
“The increase in revenue and pre-tax profit were substantially attributed to overseas operations and better selling prices,” it said.
By The Star (by Loong Tse Min)
Friday, March 6, 2009
YNH Property eyeing premium clients
An artist's impression of the Fraser Residence Kuala Lumpur.
GEORGETOWN: YNH Property Bhd aims to tap companies on the Fortune 500 and Forbes lists for its RM550mil Fraser Residence Kuala Lumpur mixed-development project to be managed by world-renowned hospitality service provider, Fraser Hospitality Pte Ltd.
Group executive chairman Datuk Dr Yu Kuan Chon told StarBiz the group was launching the project because it believed there was room for a premier international serviced residence brand in Malaysia.
“We engaged Fraser Hospitality as management service provider because more than 80% of its guests are on Fortune 500 and Forbes’ lists,” he said, adding that the agreement to engage Fraser Hospitality was inked on Wednesday.
The 446-unit Fraser Residence will be constructed next to Renaissance Hotel, facing both Jalan Ampang and Jalan Sultan Ismail. The project comprises two towers with one-and-two-bedroom serviced apartments.
There will also be office suites, a retail mall, a sky gymanasium, infinity lap pool and whirl pool sauna. Construction work is expect to start this year and scheduled for completion in four years.
YNH has also engaged Fraser Hospitality to manage Fraser Place Kuala Lumpur, which is scheduled for completion in the third quarter of 2009. “This project offers gold-standard serviced residences comprising studios, one-and-two-bedroom units and luxurious penthouses,” Yu said.
On a separate matter, Yu said YNH had on Feb 19 entered into a memorandum of understanding with Pantai Holdings Bhd to jointly build, lease and operate a private hospital in the Manjung Point township development in Sri Manjung, Perak.
“A Pantai hospital will add value and provide first-class medical facilities and services in our existing and future developments in the Manjung Point township. Pantai, with its experience and expertise, sees Sri Manjung as a very attractive investment,” he added.
By The Star (by David Tan)
RM650m development to take shape soon in Danga Bay
The Oakwood serviced apartments in Danga Bay, a RM650 million project under Iskandar Malaysia in Johor, is expected to kick off next month and be completed in 2012.
The project will be developed by Global Corporate Development Sdn Bhd, a joint venture between Iskandar Waterfront Development Sdn Bhd (IWD) and Danga Bay Sdn Bhd (DBSB).
The serviced apartments will be managed by Oakwood Asia Pacific (OAP) Pte Ltd.
The project, with 230 fully-furnished luxury units, is the crown jewel flanked by two 38-storey towers of residential units, called Iskandar Residences. The latter comprises 523 units on 2.5ha.
While the Oakwood apartments are for lease to locals and expatriates seeking mid- to long-term accommodation, the Iskandar Residences units are up for sale from RM450 per sq ft for early birds.
Johor Menteri Besar Datuk Abdul Ghani Othman, who is the Iskandar Regional Development Authority co-chairman with Prime Minister Datuk Seri Abdullah Ahmad Badawi, witnessed the signing of the joint-venture agreement between IWD and DBSB in Danga Bay yesterday.
IWD was represented by its chairwoman Arlida Ariff, and DBSB by its director Johar Salim Yahaya.
The management agreement appointing OAP as the operator of the Oakwood serviced apartments was signed between Arlida and OAP managing director P.G. Matthew.
Ghani, who is spearheading the rollout of the Iskandar Malaysia development blueprint, said the launch marked the first among a host of signature waterfront developments in Danga Bay, ranging from affordable to high-end homes such as the Danga Villa Island project.
Other highlights include hotels, no-frills to six-star, and a water theme park.
By Business Times (by Chuah Bee Kim)
Danga Bay to draw global attention
JOHOR BARU: Danga Bay is set to transform itself into one of the most sought after waterfront development addresses in the world in the near future, with several up-scale waterfront property development projects to be launched soon, said Johor Mentri Besar Datuk Abdul Ghani Othman.
The upcoming projects are three hotels, including a six-star hotel, a marina, an international convention and exhibition centre, office towers and another wet-and-dry theme park.
“These projects reflect a strong confidence on the growth prospect in Iskandar Malaysia despite the global economic slowdown,” he told reporters yesterday, referring to Danga Bay’s location in the special economic zone of Iskandar Malaysia.
“The Danga Bay waterfront project site has an excellent road and highway connectivity to major destinations,” he said, adding that the bay area would also benefit from water taxi and ferry services to Nusajaya, the Johor State New Administrative Centre, Singapore and nearby Indonesian islands.
Ghani said investor confidence in the economic growth corridor remained strong and that the stakeholders were fully committed to deliver all planned projects under Iskandar Malaysia.
Iskandar Malaysia, launched on Nov 4, 2006 was the first in a series of economic growth corridors; as at today, it had received RM43bil worth of investments, from the RM47bil targeted by 2010. Ghani was speaking at the launch of a RM650mil integrated mixed development project at Danga Bay, near here, by Global Corporate Development Sdn Bhd.
The project is a joint-venture project between Iskandar Waterfront Developments Sdn Bhd (IWD), a company majority-owned by Iskandar Investment Bhd (IIB) and Danga Bay Sdn Bhd.
Khazanah Nasional Bhd is the largest shareholder in IIB with a 60% stake while the Employees Provident Fund and the Johor government-linked entity Kumpulan Prasarana Rakyat Johor Bhd, hold 20% stake each.
Meanwhile, IWD chairman Arlida Ariff said work on the Oakwood serviced apartments and other residential units at Danga Bay would start next month and was expected to be completed in 2012.
Located on a 2.5ha site, the Oakwood project is made up of three towers - the 28-storey Oakwood Residence tower and two 38-storey towers known as Iskandar Residences.
The Oakwood Residence has 230 fully furnished serviced apartments which will be leased out and managed by Oakwood Asia Pacific Pte Ltd while the other two towers will have 523 apartments for sale.
By The Star (by Zazali Musa)
The upcoming projects are three hotels, including a six-star hotel, a marina, an international convention and exhibition centre, office towers and another wet-and-dry theme park.
“These projects reflect a strong confidence on the growth prospect in Iskandar Malaysia despite the global economic slowdown,” he told reporters yesterday, referring to Danga Bay’s location in the special economic zone of Iskandar Malaysia.
“The Danga Bay waterfront project site has an excellent road and highway connectivity to major destinations,” he said, adding that the bay area would also benefit from water taxi and ferry services to Nusajaya, the Johor State New Administrative Centre, Singapore and nearby Indonesian islands.
Ghani said investor confidence in the economic growth corridor remained strong and that the stakeholders were fully committed to deliver all planned projects under Iskandar Malaysia.
Iskandar Malaysia, launched on Nov 4, 2006 was the first in a series of economic growth corridors; as at today, it had received RM43bil worth of investments, from the RM47bil targeted by 2010. Ghani was speaking at the launch of a RM650mil integrated mixed development project at Danga Bay, near here, by Global Corporate Development Sdn Bhd.
The project is a joint-venture project between Iskandar Waterfront Developments Sdn Bhd (IWD), a company majority-owned by Iskandar Investment Bhd (IIB) and Danga Bay Sdn Bhd.
Khazanah Nasional Bhd is the largest shareholder in IIB with a 60% stake while the Employees Provident Fund and the Johor government-linked entity Kumpulan Prasarana Rakyat Johor Bhd, hold 20% stake each.
Meanwhile, IWD chairman Arlida Ariff said work on the Oakwood serviced apartments and other residential units at Danga Bay would start next month and was expected to be completed in 2012.
Located on a 2.5ha site, the Oakwood project is made up of three towers - the 28-storey Oakwood Residence tower and two 38-storey towers known as Iskandar Residences.
The Oakwood Residence has 230 fully furnished serviced apartments which will be leased out and managed by Oakwood Asia Pacific Pte Ltd while the other two towers will have 523 apartments for sale.
By The Star (by Zazali Musa)
Malaysia property outlook worsens: Survey
A survey by thinkproperty.my shows Malaysia's negative property outlook has deteriorated further, now at 51 per cent, the lowest since the survey began in May 2008.
"Clearly we saw a sharp drop in the index in February.
"With unemployment rising and Malaysia's trading partners suffering from the economic slowdown, we believe the index will possibly fall further before it rises again," said Think Media Sdn Bhd chief executive officer Asim Qureshi.
The survey also showed the popularity of fixed deposits has fallen to a 10-month low at 27 per cent.
"Most investors will look for alternative investment opportunities to fixed deposits given that fixed deposits yield around two to 2.5 per cent," he said in a statement.
[The survey, however, showed there has been a continued shift in preference to landed property.
Thirty per cent of the respondents favoured link houses in February while the retail and office sectors were less favoured with eight per cent compared to 21per cent in June 2008.
Some 1,500 participants responded to the survey which provided the current status of the property market and revealed some interesting trends.
Thinkproperty.my is a property related content website owned by Think MediaSdn Bhd.
By Bernama
"Clearly we saw a sharp drop in the index in February.
"With unemployment rising and Malaysia's trading partners suffering from the economic slowdown, we believe the index will possibly fall further before it rises again," said Think Media Sdn Bhd chief executive officer Asim Qureshi.
The survey also showed the popularity of fixed deposits has fallen to a 10-month low at 27 per cent.
"Most investors will look for alternative investment opportunities to fixed deposits given that fixed deposits yield around two to 2.5 per cent," he said in a statement.
[The survey, however, showed there has been a continued shift in preference to landed property.
Thirty per cent of the respondents favoured link houses in February while the retail and office sectors were less favoured with eight per cent compared to 21per cent in June 2008.
Some 1,500 participants responded to the survey which provided the current status of the property market and revealed some interesting trends.
Thinkproperty.my is a property related content website owned by Think MediaSdn Bhd.
By Bernama
I&P targets fewer projects this year
Property developer Island & Peninsular Sdn Bhd (I&P) expects revenue this fiscal year to decline as much as 36 per cent to RM500 million as it plans fewer launches.
I&P, a wholly-owned unit of Permodalan Nasional Bhd, posted revenue of RM780 million in its fiscal year ended December 31 2008.
Group managing director Datuk Jamaludin Osman said that I&P will continue to offer homes that are "packaged tastefully" and within the price range sought by buyers in choice locations.
"We will be more cautious during the current economic downturn, releasing a smaller number of units at all our projects at any given time,"he told Business Times after signing a pact with Universiti Teknologi Mara (UiTM) to incorporate artistic features at its Alam Impian development in Shah Alam, Selangor, yesterday.
I&P has a landbank of 5,263ha, with eight ongoing township projects in Selangor and Kuala Lumpur that are worth a few billion ringgit.
The developments are Alam Impian, Bandar Kinrara in Puchong, Alam Sari in Bangi, Alam Damai in Cheras, Bayuemas in Klang, Alam Sutera in Bukit Jalil, Seri Beringin in Bukit Damansara, and Taman Setiawangsa in Kuala Lumpur.
Jamaludin added, however, that all was not doom and gloom as I&P houses continued to sell even with the weak market sentiments.
He cited its Bandar Kinrara development: 60 per cent of the 160 two-storey link-houses costing more than RM400,000 each and 100 per cent of the 22 semi-detached homes of over RM1.2 million each have been sold since their launch in December last year.
Jamaludin also said that I&P had no plans to acquire more land as its landbank was sufficient to keep it busy for the next few years.
However, he did not rule out acquiring land in the Klang Valley that could be developed immediately.
By Business Times (by Sharen Kaur)
I&P to set more moderate pace for launches amid slowdown
ISLAND & Peninsular Sdn Bhd (I&P) will launch new houses this year, albeit at a more moderate pace, as recession looms.
Group managing director Datuk Jamaludin Osman said that I&P was well aware that the property market had softened and would introduce more affordable homes pegged at below RM400,000 each.
I&P will launch the houses at its Alam Sari project in Bangi, flagship Bandar Kinrara development in Puchong, and Alam Impian township in Shah Alam, Selangor, he said.
"If the market feels that products in this price range will move faster, we will call to it. If people are willing to invest their money in houses, we will launch more units then," he added.
According to Jamaludin, I&P has a few launches on the drawing board but is studying the economic situation before moving ahead with its plans.
"Some say we are in recession, but people are buying our properties in Alam Impian and Bandar Kinrara. The market is no doubt slow, but it is still a good time to buy. Prices will escalate when the economy recovers," he said.
Jamaludin was speaking to reporters in Kuala Lumpur after signing a pact yesterday with Universiti Teknologi Mara (UiTM) to bring the concept of "Township of the Arts" to life at Alam Impian.
I&P, a wholly-owned unit of Permodalan Nasional Bhd, has eight projects in hand in Selangor and Kuala Lumpur that are worth a few billion ringgit.
Its more exciting project is Alam Impian, launched in December 2006.
The 494ha RM4.5 billion township will offer 10,000 homes for a population of 50,000 upon completion in 2024.
To boost sales, I&P is considering developing a hypermarket and commercial lots after building 600 homes, Jamaludin said.
It has launched 308 houses, of which 257 have been built and sold.
By May, it will launch Canting 2 featuring 103 super link-homes that cost below RM400,000 each.
It may launch more, and bigger, super link-homes by the year-end, priced at RM400,000 to RM500,000 each.
Next year, I&P intends to launch semi-detached houses and shoplots, subject to approval and demand.
Central to Alam Impian's concept of "Township of the Arts" is the assimilation and application of arts and cultural characteristics in all aspects of the development.
Jamaludin said that I&P was considering building an art gallery, theatre and pavilion in the near future.
By Business Times
Group managing director Datuk Jamaludin Osman said that I&P was well aware that the property market had softened and would introduce more affordable homes pegged at below RM400,000 each.
I&P will launch the houses at its Alam Sari project in Bangi, flagship Bandar Kinrara development in Puchong, and Alam Impian township in Shah Alam, Selangor, he said.
"If the market feels that products in this price range will move faster, we will call to it. If people are willing to invest their money in houses, we will launch more units then," he added.
According to Jamaludin, I&P has a few launches on the drawing board but is studying the economic situation before moving ahead with its plans.
"Some say we are in recession, but people are buying our properties in Alam Impian and Bandar Kinrara. The market is no doubt slow, but it is still a good time to buy. Prices will escalate when the economy recovers," he said.
Jamaludin was speaking to reporters in Kuala Lumpur after signing a pact yesterday with Universiti Teknologi Mara (UiTM) to bring the concept of "Township of the Arts" to life at Alam Impian.
I&P, a wholly-owned unit of Permodalan Nasional Bhd, has eight projects in hand in Selangor and Kuala Lumpur that are worth a few billion ringgit.
Its more exciting project is Alam Impian, launched in December 2006.
The 494ha RM4.5 billion township will offer 10,000 homes for a population of 50,000 upon completion in 2024.
To boost sales, I&P is considering developing a hypermarket and commercial lots after building 600 homes, Jamaludin said.
It has launched 308 houses, of which 257 have been built and sold.
By May, it will launch Canting 2 featuring 103 super link-homes that cost below RM400,000 each.
It may launch more, and bigger, super link-homes by the year-end, priced at RM400,000 to RM500,000 each.
Next year, I&P intends to launch semi-detached houses and shoplots, subject to approval and demand.
Central to Alam Impian's concept of "Township of the Arts" is the assimilation and application of arts and cultural characteristics in all aspects of the development.
Jamaludin said that I&P was considering building an art gallery, theatre and pavilion in the near future.
By Business Times
Atis buys Mutiara Goodyear shares for RM15mil
KUALA LUMPUR: Atis Corp Bhd has acquired 15 million RM1 shares in property developer Mutiara Goodyear Development Bhd for RM15mil.
In a circular to Bursa Malaysia, Atis said the investment represented a strategic opportunity to strengthen its financial position.
“The growth of the property development sector is expected to continue, albeit at a slower pace, given the uncertainties surrounding the current
economic condition and softer demand due to weak sentiment,” it said.
Atis said the investment would not have any effect on the issued and paid-up share capital and shareholdings of its substantial shareholders.
It expects the investment to contribute positively to its earnings for financial year ending March 31, 2010 and beyond.
By Bernama
In a circular to Bursa Malaysia, Atis said the investment represented a strategic opportunity to strengthen its financial position.
“The growth of the property development sector is expected to continue, albeit at a slower pace, given the uncertainties surrounding the current
economic condition and softer demand due to weak sentiment,” it said.
Atis said the investment would not have any effect on the issued and paid-up share capital and shareholdings of its substantial shareholders.
It expects the investment to contribute positively to its earnings for financial year ending March 31, 2010 and beyond.
By Bernama
US mortgage problems hit new peaks
NEW YORK: A stunning 48 per cent of America's homeowners who have a subprime, adjustable-rate mortgage are behind on their payments or in foreclosure, and that's not the worst of it, new data yesterday showed.
The reckless lending practices in states like Florida, California and Nevada that were the epicentre of the housing crisis are no longer driving up the nation's delinquency rate. Instead, the foreclosure crisis now is being fuelled by a spike in defaults in states like Louisiana, New York, Georgia and Texas, where the economies are rapidly deteriorating and thousands are losing their jobs.
A record 5.4 million American homeowners with a mortgage of any kind, or nearly 12 per cent, were at least one month late or in foreclosure at the end of last year, the Mortgage Bankers Association reported. That's up from 10 per cent at the end of the third quarter, and up from 8 per cent at the end of 2007.
Prime and subprime fixed-rate loans saw sharp increases in the fourth quarter, a sign that the problem is now the economy.
Duress is no longer isolated to borrowers with lower credit quality. As joblessness grew, so did late payments on prime fixed-rate loans that represent two-thirds of mortgages.
"We're seeing increases in fixed-rate categories and that's where the problems are coming from," said Jay Brinkmann, the association's chief economist. "The foreclosure picture is more clearly driven by the jobs market."
That trend highlights one of the biggest challenges confronting the Obama administration's mortgage relief plan launched this week. While the US$75 billion plan could help change the loan terms or refinance up to 9 million homeowners, unemployed borrowers will have a hard time qualifying.
Yesterday, the Labour Department said new unemployment claims last week totalled 639,000, lower than expected, but still at elevated levels.
Few economists expect a turnaround in the battered labour market anytime soon with companies laying off thousands of workers weekly.
The tally of initial requests for unemployment benefits fell to 639,000 from the previous week's figure of 670,000, the department said. Analysts expected a smaller drop to 650,000.
By AP, Reuters
The reckless lending practices in states like Florida, California and Nevada that were the epicentre of the housing crisis are no longer driving up the nation's delinquency rate. Instead, the foreclosure crisis now is being fuelled by a spike in defaults in states like Louisiana, New York, Georgia and Texas, where the economies are rapidly deteriorating and thousands are losing their jobs.
A record 5.4 million American homeowners with a mortgage of any kind, or nearly 12 per cent, were at least one month late or in foreclosure at the end of last year, the Mortgage Bankers Association reported. That's up from 10 per cent at the end of the third quarter, and up from 8 per cent at the end of 2007.
Prime and subprime fixed-rate loans saw sharp increases in the fourth quarter, a sign that the problem is now the economy.
Duress is no longer isolated to borrowers with lower credit quality. As joblessness grew, so did late payments on prime fixed-rate loans that represent two-thirds of mortgages.
"We're seeing increases in fixed-rate categories and that's where the problems are coming from," said Jay Brinkmann, the association's chief economist. "The foreclosure picture is more clearly driven by the jobs market."
That trend highlights one of the biggest challenges confronting the Obama administration's mortgage relief plan launched this week. While the US$75 billion plan could help change the loan terms or refinance up to 9 million homeowners, unemployed borrowers will have a hard time qualifying.
Yesterday, the Labour Department said new unemployment claims last week totalled 639,000, lower than expected, but still at elevated levels.
Few economists expect a turnaround in the battered labour market anytime soon with companies laying off thousands of workers weekly.
The tally of initial requests for unemployment benefits fell to 639,000 from the previous week's figure of 670,000, the department said. Analysts expected a smaller drop to 650,000.
By AP, Reuters
Thursday, March 5, 2009
Yen So Park project to kick off by year-end
A artist's impression of the Yen So Park integrated development in Hanoi, Vietnam. Inset Chow Chee Wah.
PETALING JAYA: Gamuda Land Sdn Bhd’s maiden overseas project in Vietnam, the 500-acre Yen So Park integrated development in south Hanoi, will be launched later this year after a delay of about six months from its initial June launch.
The project was delayed after Vietnam succumbed to inflationary pressures and its currency fell last year, and more recently, the impact of the US-led global financial crisis.
Touted to be the most ambitious in Hanoi so far, the project has a gross development value of RM8bil. To be completed in 10 years, it comprises high-rise office towers, four-and-five-star international hotels, a convention centre and waterfront retail cum shop offices.
The initial launch will consist of the commercial components, including a high-rise office tower with retail podium, an international hotel and shop offices, complete with an urban park.
The first phase of landed residences comprising semi-detached houses, terrace houses and mid-range apartments will be launched in mid-2010.
“We are putting in the final touches for the project and are excited over what it can do to raise the profile and name of Gamuda Land in the regional market,” managing director Chow Chee Wah told StarBiz.
Work on the park and upgrading of the existing Yen So lake was underway, he said. According to Chow, the property market in Hanoi has stabilised from the impact of the global financial meltdown.
“Unlike Ho Chi Minh City, there is less property speculation in Hanoi and prices have not come off much. Having done the due feasibility studies, we are confident the project will go down well with the buyers there. It has been our focus from the very beginning to plan according to the actual stable demand of the market,” he added.
Gamuda Land will be investing up to RM1.4bil to design and build Vietnam’s largest modern sewage treatment plant capable of treating half of Hanoi’s wastewater; upgrade and clean the existing Yen So lake; and build a world class public park on the site.
These are in exchange for development rights on the project site. Chow said from 2010, the project would be able to contribute close to 50% of Gamuda Land’s earnings with the other half coming from projects in Malaysia.
“The project will offer the company a cushion to fall back on should our main traditional market in Malaysia go into low gear like what is happening now,” he said.
Gamuda Land’s local projects have not been spared from the weakening market sentiment caused by the global financial crisis that has resulted in weaker property sales since the third quarter of last year. The company’s monthly sales had slumped 30% since last August.
It recently launched the Gamuda Land Investment Scheme where buyers for selected products in Horizon Hills in Nusajaya, Johor and Jade Hills in Kajang need only to make a 10% deposit while the buyers’ banks will release the progressive payment to the developer during the construction period.
Gamuda will bear all legal fees, stamp duty on the sale and purchase agreement, fees on loan agreement and memorandum of transfer and also service the interest during the construction period.
Even after the property has been granted vacant possession, Gamuda will bear the payment of the loan principal and interest for 12 months. The other housing schemes available in the market now only cover up to the point of vacant possession.
By The Star (by Angie Ng)
Atis buys 15m Mutiara Goodyear shares
ATIS Corporation Bhd has acquired 15 million ordinary shares of RM1 each in property developer, Mutiara Goodyear Development Bhd for RM15 million.
In a circular to Bursa Malaysia, Atis said the investment represented a strategic opportunity to strengthen its financial position.
"The growth of the property development sector is expected to continue, albeit at a slower pace, given the uncertainties surrounding the current economic condition and softer demand due to weak sentiment," it said.
Atis said the investment will not have any effect on the issued and paid-up share capital and shareholdings of its substantial shareholders.
It expects the investment to contribute positively to its earnings for financial year ending March 31, 2010 and beyond.
By Bernama
In a circular to Bursa Malaysia, Atis said the investment represented a strategic opportunity to strengthen its financial position.
"The growth of the property development sector is expected to continue, albeit at a slower pace, given the uncertainties surrounding the current economic condition and softer demand due to weak sentiment," it said.
Atis said the investment will not have any effect on the issued and paid-up share capital and shareholdings of its substantial shareholders.
It expects the investment to contribute positively to its earnings for financial year ending March 31, 2010 and beyond.
By Bernama
Mid-2009 launch for Southbay Penang
GEORGE TOWN: Mah Sing Group Bhd expects to launch its RM1.35bil Southbay Penang by mid-2009.
Group managing director and chief executive Datuk Seri Leong Hoy Kum told StarBiz the launching of the project would coincide with the completion of Southbay Penang’s showhouses.
Leong said Southbay Penang had attracted more than than 3,000 prospective buyers, of whom 70% had registered interest for Residence@Southbay’s superlink homes and the rest for Legenda@Southbay’s designer bungalows and Southbay City, the commercial precincts.
“Of this number, close to 80% are from Penang island, about 9% from Penang mainland and the rest from other states and overseas,” he said.
Leong said Southbay Penang’s innovative design, its low density and guarded features, private clubhouse facilities and the smart home features of the residential units contributed to the favourable response to the project so far.
On whether the global recession would delay the completion of Southbay Penang, Leong said the group was committed to completing all its projects on schedule.
On the future of the property market in Penang in view of the global recession, he said the group expected the non-speculative range of properties to hold up well.
“We expect the medium-to-high-end landed property segment to continue to yield decent long-term positive capital appreciation in the foreseeable future.
“We can still see transactions, albeit at a slower pace, as this segment attracts buyers who are more affluent and tend to hedge their wealth in this segment during uncertain times.
“These people have a wider savings/expense ratio and generally look to invest their excess funds in properties as there are limited investment options now,” he said.
Comprising 376 units of landed residential properties and an integrated commercial hub, Southbay Penang is scheduled for completion within seven years.
By The Star (by David Tan)
Group managing director and chief executive Datuk Seri Leong Hoy Kum told StarBiz the launching of the project would coincide with the completion of Southbay Penang’s showhouses.
Leong said Southbay Penang had attracted more than than 3,000 prospective buyers, of whom 70% had registered interest for Residence@Southbay’s superlink homes and the rest for Legenda@Southbay’s designer bungalows and Southbay City, the commercial precincts.
“Of this number, close to 80% are from Penang island, about 9% from Penang mainland and the rest from other states and overseas,” he said.
Leong said Southbay Penang’s innovative design, its low density and guarded features, private clubhouse facilities and the smart home features of the residential units contributed to the favourable response to the project so far.
On whether the global recession would delay the completion of Southbay Penang, Leong said the group was committed to completing all its projects on schedule.
On the future of the property market in Penang in view of the global recession, he said the group expected the non-speculative range of properties to hold up well.
“We expect the medium-to-high-end landed property segment to continue to yield decent long-term positive capital appreciation in the foreseeable future.
“We can still see transactions, albeit at a slower pace, as this segment attracts buyers who are more affluent and tend to hedge their wealth in this segment during uncertain times.
“These people have a wider savings/expense ratio and generally look to invest their excess funds in properties as there are limited investment options now,” he said.
Comprising 376 units of landed residential properties and an integrated commercial hub, Southbay Penang is scheduled for completion within seven years.
By The Star (by David Tan)
MBAM to propose guide on green construction
KUALA LUMPUR: The Master Builders Association Malaysia (MBAM) will suggest that the International Federation of Asian and Western Pacific Contractors’ Association (IFAWPCA) set up a working committee to produce a guide on “Construction for a Greener World”.
MBAM president Ng Kee Leen said the association would make the suggestion at the IFAWPCA convention that started yesterday in Bangladesh, and ends on Saturday.
“This will provide IFAWPCA members an advantage to move the green construction process by working together to ensure joint success in the future,” he said in a statement.
Ng said the MBAM would also raise the importance of having the Construction Industry Payment and Adjudication Act, whereby payment to main contractors were honoured and this, in turn, would assure sub-contractors and suppliers of their payments.
He said the association would raise the issue of the Industrial Building Systems and the efforts to promote and grow its use.
Ng is leading a five-man MBAM delegation to the convention.
By Bernama
MBAM president Ng Kee Leen said the association would make the suggestion at the IFAWPCA convention that started yesterday in Bangladesh, and ends on Saturday.
“This will provide IFAWPCA members an advantage to move the green construction process by working together to ensure joint success in the future,” he said in a statement.
Ng said the MBAM would also raise the importance of having the Construction Industry Payment and Adjudication Act, whereby payment to main contractors were honoured and this, in turn, would assure sub-contractors and suppliers of their payments.
He said the association would raise the issue of the Industrial Building Systems and the efforts to promote and grow its use.
Ng is leading a five-man MBAM delegation to the convention.
By Bernama
Wednesday, March 4, 2009
KL property market to continue falling
KUALA LUMPUR: The property market in Kuala Lumpur could depreciate as much as 10% to 15% going forward, while the prices of high-end condominiums in the Kuala Lumpur City Centre (KLCC) area may fall up to 30% in the next two to three months, said property consultant Rahim & Co.
The rest of the property market in Malaysia was expected to remain stable, it said.
“The drop in prices will be more drastic in the KLCC area due to higher price escalation that (it had enjoyed) from 2005 to 2008,” said Datuk Abdul Rahim Rahman, executive chairman of Rahim & Co.
“We are beginning to feel the impact on property in KLCC that depends on foreign buyers.”
He said there had been indications that the asking price for high-end condominiums in the KLCC area had fallen by 30% from the RM2,000 per sq ft they fetched last year.
The foreign buyers that had supported property sales in KLCC “are now beginning to reduce and Malaysian buyers are adopting a wait and see attitude,” he said.
“Sellers have started to offer lower prices (and the prices) have dropped 10% to 15% in the KLCC area,” Abdul Rahim told reporters during the one-day seminar aimed at updating participants on property trends and issues in Malaysia.
However, it was unlikely that the domestic real estate market would drop as much as 45% as had happened in Hong Kong, London and Singapore, he said, adding that real estate prices in those cities were expected to further depreciate by 50% or 60% in the next few months.
Abdul Rahim said Malaysian office spaces still enjoyed 90% occupancy rates and rental prices had not dropped as there was no oversupply and many of the leasing contracts were not expiring.
Currently, office rental rates in KLCC fetch between RM6 and RM8 per sq ft, while rates in the rest of KL are going for RM4 to RM6 per sq ft.
“However, we know that it is going to be an additional 8 million sq ft of office space in 2011 and 2012, and we expect because of this, there will be downtrend in rental rates even without this economic crisis,” Abdul Rahim said.
By The Star
The rest of the property market in Malaysia was expected to remain stable, it said.
“The drop in prices will be more drastic in the KLCC area due to higher price escalation that (it had enjoyed) from 2005 to 2008,” said Datuk Abdul Rahim Rahman, executive chairman of Rahim & Co.
“We are beginning to feel the impact on property in KLCC that depends on foreign buyers.”
He said there had been indications that the asking price for high-end condominiums in the KLCC area had fallen by 30% from the RM2,000 per sq ft they fetched last year.
The foreign buyers that had supported property sales in KLCC “are now beginning to reduce and Malaysian buyers are adopting a wait and see attitude,” he said.
“Sellers have started to offer lower prices (and the prices) have dropped 10% to 15% in the KLCC area,” Abdul Rahim told reporters during the one-day seminar aimed at updating participants on property trends and issues in Malaysia.
However, it was unlikely that the domestic real estate market would drop as much as 45% as had happened in Hong Kong, London and Singapore, he said, adding that real estate prices in those cities were expected to further depreciate by 50% or 60% in the next few months.
Abdul Rahim said Malaysian office spaces still enjoyed 90% occupancy rates and rental prices had not dropped as there was no oversupply and many of the leasing contracts were not expiring.
Currently, office rental rates in KLCC fetch between RM6 and RM8 per sq ft, while rates in the rest of KL are going for RM4 to RM6 per sq ft.
“However, we know that it is going to be an additional 8 million sq ft of office space in 2011 and 2012, and we expect because of this, there will be downtrend in rental rates even without this economic crisis,” Abdul Rahim said.
By The Star
Developers to roll out new, innovative financing packages
KUALA LUMPUR: Developers, hit by fallen sales, are scrambling to roll out new and innovative financing packages to move units, especially those already launched but not sold.
Sime Darby Property Bhd will up its ante on the competition with the offer of yet another round of attractive schemes under its third Parade of Homes campaign to be launched in conjunction with its participation at the three-day Malaysia Property Expo (MAPEX) beginning on March 6.
In addition to a “guarantee buy back” scheme, first introduced and for a limited period under its second Parade of Homes held last year, Sime Darby Property is going further this time round with the offer of a “special down payment scheme”.
Under the “guarantee buy back” scheme, the developer will buy back properties bought at 95% of its cost with no questions asked. The scheme will go on till June 15 this year, managing director Datuk Tunku Putra Badlishah tells The Edge Financial Daily.
With the special down payment scheme, buyers can pay the balance of the purchase price less the loan amount, in interest-free installments of up to 12 months. The special down payment scheme, however is also for properties that have already been launched, except land, industrial and low-cost properties.
Early bird rebates, on a declining scale, will also be offered for all properties purchased during the campaign period. Other offerings include free stamp duty on memorandum of transfer, free legal fee on loan documentations and sales and purchase agreements (SPA) and free stamp duty on loan documents.
The developer says they have managed to negotiate for the lowest interest rate with CIMB Bank, Malayan Banking Bhd and HSBC, at BLR –2.3%.
“We need to be better than what others are offering and are optimistic of good response given the success of the previous two Parade of Homes,” says Tunku Badlishah.
The first two campaigns raked in some RM392 million worth of sales. The first Parade of Homes, held last June, generated RM246 million sales over a 10-day period.
The month-long second Parade of Homes in November 2008, showcasing the developer’s 10 townships in the Klang Valley and Negri Sembilan chalked up RM146 million in sales.
Meanwhile, more than 40 developers are expected to showcase their properties at the coming MAPEX, organised by the Real Estate and Housing Developers Association Malaysia (Rehda) at the Mid Valley Exhibition Centre.
By The EDGE Malaysia (by Rosalynn Poh)
Sime Darby Property Bhd will up its ante on the competition with the offer of yet another round of attractive schemes under its third Parade of Homes campaign to be launched in conjunction with its participation at the three-day Malaysia Property Expo (MAPEX) beginning on March 6.
In addition to a “guarantee buy back” scheme, first introduced and for a limited period under its second Parade of Homes held last year, Sime Darby Property is going further this time round with the offer of a “special down payment scheme”.
Under the “guarantee buy back” scheme, the developer will buy back properties bought at 95% of its cost with no questions asked. The scheme will go on till June 15 this year, managing director Datuk Tunku Putra Badlishah tells The Edge Financial Daily.
With the special down payment scheme, buyers can pay the balance of the purchase price less the loan amount, in interest-free installments of up to 12 months. The special down payment scheme, however is also for properties that have already been launched, except land, industrial and low-cost properties.
Early bird rebates, on a declining scale, will also be offered for all properties purchased during the campaign period. Other offerings include free stamp duty on memorandum of transfer, free legal fee on loan documentations and sales and purchase agreements (SPA) and free stamp duty on loan documents.
The developer says they have managed to negotiate for the lowest interest rate with CIMB Bank, Malayan Banking Bhd and HSBC, at BLR –2.3%.
“We need to be better than what others are offering and are optimistic of good response given the success of the previous two Parade of Homes,” says Tunku Badlishah.
The first two campaigns raked in some RM392 million worth of sales. The first Parade of Homes, held last June, generated RM246 million sales over a 10-day period.
The month-long second Parade of Homes in November 2008, showcasing the developer’s 10 townships in the Klang Valley and Negri Sembilan chalked up RM146 million in sales.
Meanwhile, more than 40 developers are expected to showcase their properties at the coming MAPEX, organised by the Real Estate and Housing Developers Association Malaysia (Rehda) at the Mid Valley Exhibition Centre.
By The EDGE Malaysia (by Rosalynn Poh)
Glomac plans to sell selected assets
PROPERTY developer Glomac Bhd is planning to sell several commercial property assets in Selangor, sources said.
It is learnt that the company is talking to foreign funds and potential buyers from the Middle East, Pakistan, Europe, Australia and Malaysia.
Sources said Glomac is looking to sell a 12-storey office tower in Glomac Business Centre for RM25 million to RM30 million, and a commercial block in Kelana Business Centre for RM30 million. Both buildings are currently tenanted.
A company source said Glomac will plough back the sales proceeds for new developments to expand its business.
"Despite the gloom and doom, there are people keen to buy properties to build their investment portfolio. At a time like this, en bloc deals are more suitable. So as a developer, we will continue to look for buyers and build," the source told Business Times.
In January, Glomac had inked a deal with Perbadanan Nasional Bhd to sell its 13-storey fully-tenanted Wisma Glomac 3 in Kelana Centre Point for RM50 million.
Glomac is also looking for buyers for its yet-to-be-built properties along Jalan Damansara, in Mutiara Damansara and Kelana Jaya.
At Jalan Damansara, it plans to sell 10 units of five-storey and two units of eight-storey commercial blocks, and a 15-storey corporate tower for RM140 million.
They form part of its RM800 million Glomac Damansara project. The properties will be constructed upon signing sales and purchase (S&P) agreements with the respective buyers.
It is learnt that Glomac had signed several S&Ps with local individual investors for a few of the five-storey blocks.
Glomac is negotiating with foreign firms to sell the remaining blocks and tower.
In Mutiara Damansara, Glomac is planning to sell a 150,000 sq ft corporate tower and office suites with 120,000 sq ft of space, and retail lots covering 40,000 sq ft worth a combined RM250 million.
It also wants to sell a 20-storey office tower, a 10-storey office suite and a three-level mall worth RM250 million in Kelana Jaya, on land previously used by Kelana Seafood Centre.
By Business Times (by Sharen Kaur)
Bina Puri bags RM693m Brunei housing contract
CONSTRUCTION outfit Bina Puri Holdings Bhd has bagged a RM693 million contract in Brunei.
In a statement yesterday, the builder said it secured the contract to build 2,000 houses for the National Housing Scheme of Brunei from the Brunei Economic Development Board.
"The construction period is 24 months. With the new job, our current order book has increased to RM2.7 billion, enough to keep us busy for the next two years," it said.
Executive chairman Datuk Mohamed Feisal Ibrahim said the company gave the lowest tender bid price, adding that the award is a testament of its capability in venturing into the overseas construction market, especially Brunei.
"We are proud to be involved in construction of the largest number of housing to be built in Brunei and, for Bina Puri, the highest project value secured in one single contract," he said.
Bina Puri group managing director Tan Sri Tee Hock Seng said the houses and supporting infrastructure will take up 150ha in Kampung Pandan, Belait.
The development will comprise 1,200 terrace and 800 semi-detached houses.
Tee said that Bina Puri's maiden project in Brunei in October 2007 involved two contracts worth RM33.6 million for the Sungai Liang Industrial Park in Belait. The project was completed in August last year.
The group is also undertaking projects in Thailand, the United Arab Emirates and Pakistan, Tee said.
Bina Puri has more than 30 years building experience, mainly civil engineering and building works for diversified multi-million-ringgit construction projects.
They include mega infrastructural works like highways, airport works, waterworks, hospital, high-rise buildings and land reclamation projects, both locally and overseas.
By Business Times (by Zaidi Isham Ismail)
In a statement yesterday, the builder said it secured the contract to build 2,000 houses for the National Housing Scheme of Brunei from the Brunei Economic Development Board.
"The construction period is 24 months. With the new job, our current order book has increased to RM2.7 billion, enough to keep us busy for the next two years," it said.
Executive chairman Datuk Mohamed Feisal Ibrahim said the company gave the lowest tender bid price, adding that the award is a testament of its capability in venturing into the overseas construction market, especially Brunei.
"We are proud to be involved in construction of the largest number of housing to be built in Brunei and, for Bina Puri, the highest project value secured in one single contract," he said.
Bina Puri group managing director Tan Sri Tee Hock Seng said the houses and supporting infrastructure will take up 150ha in Kampung Pandan, Belait.
The development will comprise 1,200 terrace and 800 semi-detached houses.
Tee said that Bina Puri's maiden project in Brunei in October 2007 involved two contracts worth RM33.6 million for the Sungai Liang Industrial Park in Belait. The project was completed in August last year.
The group is also undertaking projects in Thailand, the United Arab Emirates and Pakistan, Tee said.
Bina Puri has more than 30 years building experience, mainly civil engineering and building works for diversified multi-million-ringgit construction projects.
They include mega infrastructural works like highways, airport works, waterworks, hospital, high-rise buildings and land reclamation projects, both locally and overseas.
By Business Times (by Zaidi Isham Ismail)
Forum: We can do more to attract investors
KUALA LUMPUR: The property market in Malaysia, like much of Asia, is facing a slowdown, but the country can still use various initiatives to ride out the economic crisis and help the sector, industry players said.
Ascendas Pte Ltd, Singapore, South-East Asia operations chief executive officer Ong Beng Kheong said Malaysia could do more to make its property sector more attractive and competitive, especially in the area of image.
“Malaysia needs to improve its image abroad to make the real estate properties in the country more competitive,” he said at the property seminar
“As you can see, Malaysia has quite a number of good grade A buildings at cheap prices but why this not been much detected by foreign investors. Instead, they prefer to invest in countries like Cambodia, Vietnam and the Philippines though the prices of commercial properties there are more expensive than here.”
Beneton Properties founder and executive chairman Datuk Chan Sau Lai said some of the legislation in Malaysia had resulted in foreign investors being reluctant to invest in the country.
“Our income tax regime, for example, is much higher compared with say, Hong Kong and Singapore. Both are perceived to be friendly cities for foreign investors and we must find ways to become more friendly to woo these investors,” he said.
Hong Kong Savills Valuation & Professional Services Ltd deputy managing director Simon Smith said there were still large current account surpluses in Singapore, Hong Kong, Malaysia and China and large foreign exchange reserves in Japan and China, which meant Asia was in better shape compared with the US and Europe.
“There is still plenty of infrastructure required as targets of stimulus measures and historically, post-slump, Asia emerges with a greater share of the global growth domestic product,” he said after presenting his paper on global market changes and the perception on Malaysia.
By The Star
Ascendas Pte Ltd, Singapore, South-East Asia operations chief executive officer Ong Beng Kheong said Malaysia could do more to make its property sector more attractive and competitive, especially in the area of image.
“Malaysia needs to improve its image abroad to make the real estate properties in the country more competitive,” he said at the property seminar
“As you can see, Malaysia has quite a number of good grade A buildings at cheap prices but why this not been much detected by foreign investors. Instead, they prefer to invest in countries like Cambodia, Vietnam and the Philippines though the prices of commercial properties there are more expensive than here.”
Beneton Properties founder and executive chairman Datuk Chan Sau Lai said some of the legislation in Malaysia had resulted in foreign investors being reluctant to invest in the country.
“Our income tax regime, for example, is much higher compared with say, Hong Kong and Singapore. Both are perceived to be friendly cities for foreign investors and we must find ways to become more friendly to woo these investors,” he said.
Hong Kong Savills Valuation & Professional Services Ltd deputy managing director Simon Smith said there were still large current account surpluses in Singapore, Hong Kong, Malaysia and China and large foreign exchange reserves in Japan and China, which meant Asia was in better shape compared with the US and Europe.
“There is still plenty of infrastructure required as targets of stimulus measures and historically, post-slump, Asia emerges with a greater share of the global growth domestic product,” he said after presenting his paper on global market changes and the perception on Malaysia.
By The Star
Rehda lauds ministry’s move
KUALA LUMPUR: The Real Estate and Housing Developers’ Association Malaysia (Rehda) welcomed the announcement by the Housing and Local Government Ministry on stimulating the property market.
“The ministry’s decision to get banks to reschedule payments and reduce interest rates will make housing loans more affordable and avoid the occurrence of non-performing loans in the housing and construction sectors,” president Datuk Ng Seing Liong said in a statement.
Ng added that the move would create greater financing for the housing sector while the reduced rates would also attract potential buyers who have been adopting a wait-and-see attitude.
Meanwhile, the Government’s decision to subsidise the construction or purchase of land for building 25,000 low-cost houses, was also seen as a positive step towards providing more affordable housing for low-income earners.
Ng further stated that the revision of stamp duties and taxes for developers would ease the industry’s burden as well.
By Bernama
“The ministry’s decision to get banks to reschedule payments and reduce interest rates will make housing loans more affordable and avoid the occurrence of non-performing loans in the housing and construction sectors,” president Datuk Ng Seing Liong said in a statement.
Ng added that the move would create greater financing for the housing sector while the reduced rates would also attract potential buyers who have been adopting a wait-and-see attitude.
Meanwhile, the Government’s decision to subsidise the construction or purchase of land for building 25,000 low-cost houses, was also seen as a positive step towards providing more affordable housing for low-income earners.
Ng further stated that the revision of stamp duties and taxes for developers would ease the industry’s burden as well.
By Bernama
Subscribe to:
Posts (Atom)
Posts
