RM300,000 property versus just increment

At the recent
South East Asia Property Awards (Malaysia)
, I was seated at the media table with a few big names in the media arena. As usual, property is what they love to talk about. One editor from a well-known business magazine told me that she is looking to buy a property next year. She said she is saving money currently. I told her that as soon as she is
financially ready, she should take the plunge.
 In fact first property is just a roof over ones head. Property investment actually start from the second property onwards. She laughed and said she will do her best.

Another young lady from a big media organisation said that she was still saving for her first RM300,000 home. I told her to work hard because there are not enough editors in the property field today. The awesome ones are too expensive and the average ones may not know enough about property investment. She laughed and agreed. I also shared with her a
simple reason why a property investment
 is much more lucrative than the usual yearly increments. Following was the calculation that I shared.

Salary: RM10,000 per month an increment of 3% per year is an additional RM600 per month. Unfortunately, NOT many are currently earning RM10,000 per month.

Once she could afford a RM300,000 property and this property increases in value by only 3% per year, this is already RM9,000 per year or RM750 per month. This is still higher than even someone earning RM10,000 salary and an increment of 6% per year.

This showed that even when both are increasing on a yearly basis, property is definitely faster. That’s why they call property investment a hedge against the inflation. She said the simple calculation motivated her and she would definitely read and learn more. Property investment is definitely must for all young people. I agree. Happy reading.

written on 12 Aug 2016

Next suggested article:
Fear of price increase, thus buy quickly?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RM4.2 billion GDV of launches in 2019 by Land & General Bhd (L&G)

If property market is slow, transactions are reduced. This has been the case since 2013. Due to the mismatch in the type and price of properties launched, the number of unsold units have continued to climb. Recent article here:
Unsold units are up. Now at 146k
 There has even been some recent predictions about property bubble bursting for example.
Here’s one such prediction by an academician.
  Just a very short while later however, another media outlet quoted another expert who said property bubble may burst
but only after 2019. Here’s that prediction as well.
  Well, the property market is always about sentiment and whether developers are doing well or not really depends on their product offerings. During a booming period, NEARLY everything can be launched to a good response but currently, perhaps developers are only launching projects selectively. Here’s one looking to launch RM4.2billion worth of GDVs next year.

In an article in Edgeprop.my
, property developer
Land & General Bhd (L&G) will be launching developments with an estimated GDV of RM4.2 billion next year in the Klang Valley. Its
managing director Low Gay Teck said these projects are Aria Rimba at U10, Shah Alam, a serviced apartment project at The Mines Resort in Seri Kembangan and a high-rise residential development in Bandar Sri Damansara. The 120-acre Aria Rimba township development will have residential and commercial offerings. It has a GDV of RM1.1 billion and comprises terraced homes, semi-dees, Rumah Selangorku and commercial developments and will be developed in four to five phases over the next five to six years. There will also be a serviced apartment project in The Mines Resort, which is located close to the South Lake of the resort and will have an estimated GDV of RM1.6 billion. He said, “This leasehold development will have 2,222-unit serviced apartment housed in six blocks. This project is now pending for authority’s approval, we also plan to launch it next year.” Besides these two, there is also another high-rise residential development on Sri Damansara Club’s land in Bandar Sri Damansara, which carries an estimated GDV of RM1.5 billion. It soft launched the Seresta @ Bandar Sri Damansara project recently offering 452-unit of service apartment housed in two 47-stoey towers with built-ups ranging between 1,300sq ft and 1,800sq ft.

I guess this is a sign that some property developers continue to have confidence on the market. There is a huge number of unsold units but I will share this scenario again. Assume we went to view project X last year and we dislike everything about the project, from its location to the connectivity to the design and even the price. This year, the developer RELAUNCHED the project but has changed NOTHING of the things we dislike; exactly the same as last year. Don’t you think this unit will remain UNSOLD? New launches will thus continue to happen while some unsold units will remain unsold forever unless there are some changes to its features. Evaluate all projects objectively based on its own merits instead of what is the number of unsold units. Happy choosing. A video about whether Unsold Units would cause the property market to crash as below.

written on 14 Sept 2018

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RM4 million digital marketing for ONE project?

Perhaps it’s just me but I think RM4 million from a developer for one (1) project and only on digital marketing is very good news for the
“new mainstream media”

I have been told by some “senior” marketing managers that posting only in newspaper is enough and that online is nothing more than just for branding or even for fun. I think the below is worth reading as a gentle reminder that online will only grow stronger and bigger and not the other way around. A summary of what PropertyGuru term as “biggest digital spend reported by any property development company in Malaysia thus far.”

Malaysian Resources Corporation Berhad (MRCB), one of Malaysia’s leading property developers, has entered into a partnership with PropertyGuru, Asia’s leading property portal, to develop an exclusive digital campaign for the marketing and promotion of MRCB’s Sentral Suites, Kuala Lumpur Sentral CBD, which is slated for launch in September this year.

The deal will see PropertyGuru develop a customised digital marketing and branding plan specifically for Sentral Suites, Kuala Lumpur Sentral CBD worth RM4 million – the biggest digital spend reported by any property development company in Malaysia thus far.

The investment by MRCB also marks its biggest digital marketing and branding spend to date, and is in tandem with its strategy to better target home buyers, who largely use digital mediums for property search and research. This was validated by a PropertyGuru and Google survey which found that 90% of property buyers had moved online for their property search and research needs.

Sharing his optimism on this ground-breaking digital campaign, MRCB’s Group Managing Director, YBhg Tan Sri Mohamad Salim Fateh Din said, “Leveraging on a digital online campaign is a step in the right direction for MRCB, as we want to adopt a more interactive and engaging approach in capturing our target audience”.

“We are confident PropertyGuru’s established regional presence and its extensive marketing platform comprising portals, publications, events, awards, project marketing solutions and more will not only enable us to reach a more relevant demographic, but also at a lower cost per reach” he said.

“It is also an efficient and focused way of engaging with our target customers, who actively utilize digital platforms and will find Sentral Suites, Kuala Lumpur Sentral CBD a very appealing residential development well suited to their active lifestyles,” added YBhg Tan Sri Mohamad Salim.

Sentral Suites, Kuala Lumpur Sentral CBD is the last remaining residential plot within the Kuala Lumpur Sentral CBD vicinity, benefitting from its world class mass transport hub. With an indicative price of RM1100 psf, the exclusive apartments are centrally located, with a dynamic contemporary building design.

Comprising of three 43-storey towers, the development offers a total of 1,434 apartments and 41 retail units. The serviced apartments available are one to three bedrooms, ranging from 651 sqft to 1166 sqft. This strategically located residence offers the best of cosmopolitan living in a self-sustaining city, complete with lifestyle-centric amenities – all conveniently close by. Amenities include: two floors of retail shops at street level, 15 sky gardens, 15 sky pods, gymnasium, an infinity pool, a family fun pool, Jacuzzi, a dance studio, sauna and a games room. For more information on Sentral Suites, please visit:
http://www.sentralsuites.com.my/

Happy marketing all your projects my dear marketing professionals from all developers. Current times allow you to use different media and really get to know what works better today and what was working well previously. Cheers.

written on 17 August 2016

Next suggested article:
Adding colour to life with KL Sentral

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Average of RM419,000 is indeed quite high, actually.

The average price of properties in KL is RM655,000. I consider this to be quite high when I look at the typical salary of majority of my colleagues. Fortunately, the average price in Selangor is just RM430,000 which I consider as acceptable as long as one does not simply spend all his salary on useless luxuries. Do note that the average price meant that there is the lower half and the upper half and not every property being priced near the average. What the senior managers would buy would be those which are much higher than average while for those who just could not afford at the average price level, manage your expectation and go for lower priced ones first. Upgrade few years later is much easier than trying to buy a few years later.

In Sabah, the average price is RM419,000. Personally I think this is considered high. The reason is because my wife was a HR and I know what’s the typical salary of office workers there. For a similar position, most of the time, the pay is lower by a few hundred ringgit easily. In a report in propertyhunter.com.my, Bank Negara’s Deputy Governor Marzunisham Omar said that one main reason why it’s difficult for low income groups in Sabah to own a house was because the house prices are very high. He said that as long as buyers fulfil the criterias they would get their loan applications approved.

Meanwhile on the other side, the President of Sabah Housing and Real Estate Developers’ Association (SHAREDA), Datuk Francis Goh said that one major reason for the rejections of loan applications was because banks were way too strict with its lending policies. If the banks do not loosen their loan requirements slightly, the chance of a low-income buyer to actually own a house is nearly nil. He said that property developers can continue to build affordable houses but if the banks are not going to lend, it will not help even if more of these affordable units were built.

I think one more information is really needed. A report on the rejection of loans. It would help both sides to sit down once they have an idea about the type of loans which are being rejected. If it is true that majority of all rejections are for the affordable units, then SHAREDA is right. If however majority of the loans are for units which are priced above the average for Sabah, I think you get the answer already. The prices are simply a tad too high for the buyers. Housing is a basic need. I seriously do not think Bank Negara would like to deny this basic right. However, since this is a public need, it is also very important for developers to build really affordable ones by working closer with the state government. RM419,000 on average is really not that affordable for workers in Sabah, not even Kota Kinabalu.

written on 9 Apr 2015

Next suggested article:
Double storey terrace in Kota Kinabalu outskirt is now RM450,000

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RM5.7 billion for the PR1MA loan scheme for 2017

Some years back, a developer in Johor told me this, ‘Many times it is those people with low income that finds it hard to get a loan. The reason is because the banks are very stringent with them.’  That was the major reason why if we would like to help the lower-income households own a home, end-financing is very important. Simply building such units is still not going to enable them to get one because they could not get their loans approved! Another developer told me that for his affordable project of nearly 200 units, he had to sell it 600 times because the buyers just could not get the loans approved and he had to sell the same unit again and again. I think this one reason why PR1MA announced the arrangement of end-financing with 4 banks just days ago.

It was reported recently that PR1MA is looking at assisting buyers further through end-financing which it will arrange with four local banks. They are Malayan Banking Bhd, CIMB Group Holdings Bhd, Ambank Group and RHB Banking Group. Earlier article:
Not just building but end-financing as well
The total loans that they would be disbursing to the 15,000 first-time home buyers this year would be up to RM5.7 billion. According to Kenanga Research in a
NST article
, it said as the target for this year involved 15,000 houses at an average price of RM350,000 to RM400,000 per unit with 95 per cent financing, the banks would fork out between RM4.9 billion and RM5.7 billion in new loans. Kenanga also shared that CIMB will acquire the most of the loans. It said, “CIMB’s exposure to the residential property segment is the highest among them, increasing by 13 basis points (bps) since the first quarter of last year, although its average lending yields (ALR) is the highest in the industry, standing at 5.16 in the third quarter of last year (versus the industry’s 4.55 per cent), implying higher appetite for mortgage loans.”

Here’s where you can get information on where the units to be built are as well as to apply for a unit.
http://www.pr1ma.my/
Qualification for a unit is as per the image beside. A friend asked me before if he should get a PR1MA unit if he can also get other units from private developer. I think the answer remains the same. PR1MA is just another property that we can buy.  Look for the usual reasons to buy and choose the one meeting most of our expectations, regardless of whether they are PR1MA or other units. As for whether these units can double in price in future, let’s just focus on getting a decent home of our own first. On an overall basis, a home will always be a good hedge against inflation. There is no way that majority of buyers can save fast enough while we continue to pay our rental every month. Happy choosing the best, whether PR1MA or other local government or private schemes.

written on 16 Feb 2017

Next suggested article:
ABM: No reason to reject your first time home loan, IF..

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


It’s RM500,000 down. It’s not RM500,000 as the final price. Oops.

I was having a coffee break with a bunch of good friends when one of them mentioned that the Malaysian property market seems to be very slow. That was why the government announced that the threshold for foreigners to buy a property in Malaysia is lowered. I reminded them that the threshold is only for Kuala Lumpur at the moment and this is also only applicable for overhang properties and not just any unsold ones.

Another friend then casually mentioned that Selangor has just announced that the threshold property price for the foreigners have been lowered to RM500,000. I asked where did he see it. He said somewhere online. I quickly texted two VIPs; one from MIEA and another from FIABCI Malaysia and both of them replied in the negative. They did not know of such an announcement yet. After an hour, that friend sent the online news he read over to me. Please look at the image as below. “Selangor Turunkan Harga Rumah Untuk Warga Asing RM500,000.” No wonder my friend was ‘tricked.’

The article however started with the right line. It says the Selangor state government has reduced the threshold of property price for strata units for foreigners from RM2 million down to RM1.5 million. This is a reduction of RM500,000. Haha.

Article in malaysiagazette.com
  (translated)  Selangor MB Amirudin Shari said that this reduction will help to reduce the unsold luxury units and to help to encourage the construction industry as well. This decision is ONLY for overhang properties which were unsold as at 2018. Thus far, Selangor is among states which has put in the highest threshold for foreign ownership of homes in Malaysia.
Article in malaysiagazette.com

By the way, overhang is defined as unsold properties which has been completed and keys to units sold handed over to buyers. The remaining unsold units will continue to be marketed and will only go into the overhang list once it reaches 9 months or higher. This is why the number of unsold units will be far higher than the number of overhang properties. Anyway, just note that Selangor property price threshold for foreign buyers is not RM500,000 but it is still at RM1.5 million. Happy understanding.

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market.

Next suggested article:
RM600k threshold for foreigners, not even a unit in Selangor, yet

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RM543 Billion to be paid as bonuses.

How would you feel when someone is paid a bonus which you may never earn in your lifetime? Actually if you happen to work in a plantation company and it was a good year, a 12 month bonus is not uncommon. This is true even for banks. Of course, the basic would not as high as a typical MNC but then again a typical MNC would never give you a 6 months or a 12 months bonus. In Britain, the bonus payout for ONLY the bankers and insurers are expected to exceed £100bn by the end of March 2015. That’s ONLY about RM543 billion. This is as per analysis by the Robin Hood Tax campaign on the data from Office for National Statistics.

This bonus number is equal to £1,500 for every man, woman and child in the UK. Some of these investment bankers actually earn more than what most people could ever do in their lifetime. Robin Hood Tax campaign is a group of 119 UK organisations including Barnardo’s, Comic Relief, Oxfam, Friends of the Earth, Stamp Out Poverty and the TUC. In a statement issued by David Hillman of the Robin Hood Tax campaign, he said, “This eye-popping sum is evidence we live in a two-tier Britain where an unreformed financial sector continues to pocket huge rewards while the rest of us are left to clear up their mess.”

Actually, what he said is quite true. The reason why some of these financial pay so much bonus is because it does not want to lose key talents who helped them to earn extraordinary profits. To earn extraordinary profits year after year, it is obvious that the risks taken would be higher every year. That one particular year where everything went wrong would be the year the government would have to step in to rescue these institutions failing which the whole country goes into trouble. It is not too far-fetched to imagine this happening in the near future. Perhaps Britain may still be doing okay because due to public pressure, some of the banks are reducing the payout and some banks which were bailed out previously would be announcing even smaller bonuses. There’s no need to ask me which country may have the highest risk for this to happen. Read here:
USA: 48% of banks lower lending standards

In another statistics for UK, the financial sector makes up about a 10th of the UK economy, but accounts for well over a third of all bonuses paid out. Awesome right? For those who worked in sectors which contributed so much more to the economy but getting lesser bonuses, I seriously think that you should encourage your children to go into the financial sector. Skip the doctor or engineer mindset. They really do not earn anywhere near these bankers as shown by the stats. Too bad, I am also not part of the financial sector. I think I should be able to do well enough to get a huge bonus every year. During a bad year? Well, my bonuses on the good years would have easily covered that one year. Okay, back to reality. Happy investing.

written on 27 March 2015

Next suggested article:
Standard & Poor’s rating for Malaysia, subsidy and competitiveness

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RM55 billion for East Coast Rail Line from China

Today when I was having lunch with my colleagues, one of them said, ‘Malaysia is asking China for more money. Now they will build the East Coast Rail Line for Malaysia.” I just smiled and continue enjoying my lunch. Just wanted to let everyone know that today, leaders of ANY country in the world whose economy is smaller than China would definitely want investments from China.  Yes, that includes every other neighbouring countries in ASEAN including the most advanced nation as well. Just look at the founding members of
Asian Infrastructure Investment Bank (AIIB)
 to understand why MANY of the advanced countries are joining. Do we want to conclude that these countries would still join if AIIB was not an initiative by the mighty China?

With regards to the East Coast Rail Line (ECRL) which will help to connect the east coast states in Malaysia, it will be built and financed by China. The deal was signed China Communication Construction Company Ltd (CCCC), with financing via soft loans from Export-Import (Exim) Bank of China. The estimated cost is RM55 billion and it will be one of the high-impact projects under the 11th Malaysia Plan. The length is 620km and it will connect Port Klang to the Integrated Transport Terminal (ITT) in Gombak; from ITT Gombak to Dungun; and from Dungun to Tumpat. Project will most probably start in early 2017 and will be build in three phases. The railway link would ensure travelling time, transportation costs are down while connectivity is up. More connections equals to more business linkages and subsequently more growth which is good for the few states. Of course, the prices of properties would also rise in tandem with economic activities.

In the near future, most probably some of these financing options can be through AIIB too and not just with China directly. It would be great if India or Tokyo can provide similar arrangements for any catalytic projects. Borrow from the U.S.? Well even the largest economy in the world is borrowing from China. Something I found on google. Please refer to image. Yes, I noted Federal Reserve’s optimism with the U.S. economic growth. As I have written before, I really
hate it if there are bad news about the U.S. economy.

Thus, I hope their economy does well so that there’s less uncertainty and the currency movements become more volatile which is disadvantageous to the ringgit. Happy following and yes, the household Debt to GDP for Malaysia is considered very high today. Do watch out for all other nations with high household debt vs GDP. Happy following.

written on 1 Nov 2016

Next suggested article:
Household Debt Malaysia vs assets, as per Allianz Global Wealth Report

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RM585k? No problem, sold out within the same day of launch

Most people would look at me strangely when I tell them that the current slowdown is not because everyone is

poor (Crisis?)

or the property prices are way too high
(Totally unaffordable)

but one where the mood is a little negative coupled with some
mismatch in expectations.

By the way, just within the first month of January, there are already a few launches and I think the Chinese New Year would bring even more events. Perhaps two better questions to ask ourselves before we buy for own stay would be: (1) Do we like the area where the homes are located (familiarity helps a lot usually).  (2) Do we like the design of the home (usually about the availability and usage of space.) Only when we have answered these two fundamental questions do we move on to the price. The reason is simple. Just because we could afford do not mean we must buy…. YES, this is the reason why there are many cheap homes which remain unsold

contributing to the oversupply situation currently.

Coming back to our story about a major developer and a popular area.
Reported in NST:

 SP Setia has just launched Careya which they term as Setia Alam’s Starter Homes series. There were a total of 93 units and prices start from RM585,000. Total gross development value is thus RM58 million. Queues started forming the night before apparently. Careya is due to be completed in 2 years and the sizes are 20ft x 65ft double-storey houses with built-ups starting from 1,677sqft.  “The objective of the Starter Homes series is to give both first-time buyers and those looking to upgrade the chance to own a freehold landed residence in a thriving community, usually only found in new developments located far off from central Kuala Lumpur or Petaling Jaya,” said general manager of Bandar Setia Alam Sdn Bhd Tan Siow Chung in a statement. After this successful launch, the next phase of the Starter Homes series, according to Tan, will feature 18ft by 65ft double-storey houses.

Homes which are made for families at a price which could be made affordable enough for the husband and wife (both working professionals) will continue to be snapped up, actually. This is especially landed ones where the demand is far greater compared to the supply of good and affordable ones. To put things in perspective, Setia Alam is slightly lesser than 40km away from the KL city centre. Google map on your left. I have many friends who enjoys their much bigger space and price advantage compared to similar sized but far more expensive homes much nearer to the KL city centre. Always note that

urbanisation is continuing

and there’s no way that everyone would be able to keep paying ever higher even if they have the advantage of distance. Oh yeah, a good friend’s currently renovating her new landed home in Semenyih and she intends to move in just after Chinese New Year. Happy loving your home, anywhere they are.

written on 2 Feb 2018

Next suggested article:

When developers continue to focus on Klang Valley

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RM6 billion GDV to be launched in Johor: One Bukit Senyum

I must admit that while I know of a property developer called Astaka, I have no idea about their RM6 billion gross development value (GDV) “One Bukit Senyum” which will be launched in 2016. RM6 billion is huge and if the sales go well would meant Astaka’s total sales for 2016 should propel it to the front of the pack besides the usual few names that we use to read all time. It was reported in Bernama a few days ago. The size of the project is 4.8 hectare (11.9 acres) and it will comprise signature Grade-A offices, high-end retail, 5-star hotels and serviced residences. It includes The Astaka @ One Bukit Senyum which will be the tallest residential building in Malaysia and Singapore. (WOW).

How’s Iskandar or Johor Bahru recently? I got a prominent property guru Khalil Adis to tell me a little bit about it under kopiandproperty.com’s Expert Series. Read it here:
Expert Series with Khalil Adis: Iskandar, still attractive or totally negative?
  According to the developer as per the article in Bernie, it’s anticipating a bullish time ahead forIskandar Malaysia property sector. It’s Chief Executive Officer, Datuk Zamani Kasim, said “When a number of developments come on-line and are sales-ready at the same time, this spike can look hyper-inflated. He revealed that The Astaka @ One Bukit Senyum has already achieved 70 per cent sales currently.

Some time back, I wrote this:
Nothing in Iskandar yet for me but does not mean it’s nothing to me

My views remain the same. Iskandar would have to be successful because Singapore is right next door and vice-versa. It (relationship) has to be a fruitful relationship because there is just no way that Singaporean businesses can stay competitive if their manufacturing operations are operating from within Singapore itself. Of course, one may argue that Singapore does not need to build their manufacturing hub in Iskandar, it could be in some other places or country. Okay, I wish them all the best then. Oh yeah, do not forget that Singapore has this goal too.

Not 6.9 million please. Plan for 10 million

One point to note, there are still lots of things that must happen for Iskandar to continue to grow. One major one?

More Links Please

Happy investing.

written on 17 Apr 2016

next suggested article:
11,900 into Singapore and 50,000 out to Iskandar everyday

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RM8, the right price for Eco World and other picks

Don’t worry if you can’t afford Eco World’s project. If you really like this company which is being looked upon as potentially a new world class developer company, then buy their stocks. Fancy a return of 72% based on the price you pay? You may get it if what CIMB says come true. Recently, CIMB Research has given Eco World an “add” call and an implied target price of RM8 , saying that the recently announced acquisition of landbank worth RM3.8bil as the main reason for this re-rating. CIMB Research also said that Eco World is their top picks in the property sector. On 5th May, CIMB Research said their top pick was Mah Sing. 🙂   RHB Research’s top picks are Sunway and IJM Land. Maybank KE Research’s top pick is Glomac.  Do you see a relevance now? Yes, the relevance of all these top picks meant that there’s no relevance. Every analyst has their own way of analysing the company and thus the results are different.

How about kopiandproperty.com? My pick remain same, first choice is buying the actual property itself. Second choice, safer and still twice or slightly more than twice would be REITs. Nevertheless, I think Eco World does have emotional appeal this time due to all of the attention that it has been getting. In fact just recently, they took up another four pages in newspaper to tell everyone about their projects. As much as stocks analysis are number based, the stock prices are many times, emotional based. Look at the PER for some traditional stocks, it’s normally much higher than PER for a newer or less renowned stocks. So, don’t tell me it is based on just numbers. I don’t believe so.

Last but not least, always remember that ECO World is now the new ‘SP Setia’, from the top management down to the managers, many if not majority were from Malaysia’s most high profiled developer thus far, SP Setia. All these mean a lot because in the property market, the right branding sells at a premium which allows the company to offer better quality (actually you are paying for it). Right branding also help in stock price even if your profits are still not enough to justify such a high share price. Look at all the giant online firms in USA and you would see why. For example, Facebook. No huge profits but share price meant that its price is now, based on a forward PE until end of 2015 of 34 times! If you know about stocks, here in Malaysia, not many have such PER. Cheers.

written on 24May 2014

Next suggested article:
Property Investment? You better have TIME.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


LRT3 is important. Please manage it well.

Connectivity enhances productivity and economic activity. This is why countries like Singapore continue to enhance theirs. Its transport minister Khaw Boon Wan said, ““The Government will continue to heavily subsidise public transport – S$5 billion for buses, S$4 billion for rail renewal and S$20 billion for expanding the rail network in the next five years.”
Article in channelnewsasia.com here.

LRT3 (earlier article here)
 was one of the major projects which was renegotiated. Instead of MRCB and George Kent as the Project Delivery Partner model, it is now based on a fixed price contract regime. In July, Finance Minister Lim Guan Eng had said that the cost of the LRT3 was reduced by 47 per cent from RM31.65 billion to just RM16.6 billion. Five stations were shelved until it is deemed necessary to be built. They include Lien Hoe, Temasya, SIRIM, Bukit Raja and Bandar Botanic.

A 2km tunnel for the LRT together with an underground station at Persiaran Hishamuddin, Shah Alam was also cancelled. When completed, LRT Line 3 is a 37km line which will serve the most important and densely populated economic development corridors in the Klang Valley, from Klang to Petaling Jaya. It is expected to serve an area with a population of two-million people, with the capacity to transport 36,700 passengers per hour each way.
Reference article in NST here.
 We have a latest development, not so positive it seems.

Article in Edgeprop.my here.
As per reported in the article, Prasarana Malaysia Bhd has not yet paid contractors of the light rail transit 3 (LRT 3) for work done up to Sept 30 last year worth RM800 million, sources told
The Edge
. Due to this non-payment, several smaller subcontractors are on the brink of bankruptcy. A source said, “Prasarana had stopped paying us for the work done since February last year. When we requested a meeting with them, Prasarana went silent,.”  Another source said, “We are really hard-pressed in the current situation. How are we going to continue with the work if we are not paid? Some of the smaller subcontractors are saying that they are on the brink of bankruptcy as they don’t have enough cash to roll over.”

The article also said that Prasarana had been raising bonds to fund the project and according to Bond Pricing Agency Malaysia’s Bond and Sukuk Almanac 2017, Prasarana had RM24.7 billion worth of outstanding debt papers as at the end of 2017, while in September last year, it issued a further RM1 billion in sukuk bonds. At the time of this article, the joint venture company for LRT3, MRCBGK has not yet signed the fixed-price contract with Prasarana. A Bursa Malaysia filing shows that the contract was supposed to be executed by Dec 12, 2018.
The full article in Edgeprop.my here.
F

Hopefully everything goes well because this is a public infrastructure project. Any cost reduction must be managed well because this affects many stakeholders including future users of the LRT3. Connectivity enhances economic activity. In fact connectivity enhances the Klang Valley property market. Everyone has more choices of potential areas to stay. Perhaps can help manage the property prices too. Hopefully the government’s fiscal position is improved and we have some good news about LRT3 being brought forward instead of remaining 4 years behind the original schedule. As we could see it today, LRT lines are already extremely busy. Happy following.

written on 13 Jan 2019

Next suggested article:
Here’s one project just metres away from the LRT

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RM800 per month, enough to live on?

The answer is a pretty certain, NO. Not even a single person whom you ask today would say yes but if you do not have much expenses and house is fully paid for plus you do not fall sick all the time, RM800 can still allow you to live a very frugal life in a smaller secondary town. By then, you are mostly paying for your food anyway. However, according to
Employee Provident Fund
,

80% of all 55 year olds today have less than that in their account to even live with RM800 in their account for the next 20 years.

Wait a minute, I think some of these people would still have a bit of savings, some other assets possibly too. Thus, it would be above the RM800 stated. Of course, at 55, majority are still fit to work. In Singapore,
the usual retirement is at 65 years of age,
 another 10 strong years to go when compared to 55. I have seen many of our seniors working in McDonalds here in Malaysia. In Singapore which I go to at least twice every year, I could see the seniors in food courts and some in supermarkets, working as cashiers. Personally, I hope to still be active in some kind of work till I really feel too tired or when I am way too old to work. Hopefully by then, I would have enough money to last my wife and I till the day we leave the world. Yes, it would most probably be in Ipoh, my favourite city.

Currently, over 75 percent of the 14 million
EPF contributors are earning less than RM2,000 per month.
 Another 15 percent earns between RM2,000 and RM5,000 a month and the top 10% earns more than RM5,000. Please do our best to aim to be within the top 10%. Actually, it’s not that tough. Get a degree, work hard, slowly climb the career ladder and by the time you are a manager, your salary would be easily higher than RM5,000. Many professionals achieve this even before they reach thirty. It is very important to also invest and save whatever you have during your working years. Doing these (invest and save) later would mean that you may need to take much higher risks and it is not something advisable when you are older and harder to restart all over. PROPERTY is one very important asset class to have. Most of the time, it appreciates enough so that by the time you have fully repaid and wants to sell, the money you get would really be higher than your typical EPF savings.

written on 16 Mar 2015

next suggested article:
Can you retire with just RM900,000?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RM8434 per sq ft? Let’s ‘Tok’ about it.

80% of Singapore’s population live in HDB flats. It’s built on demand, it’s usually clean and well maintained and the price is very affordable for the citizens. There are HDB flats which are now changing hands at over SGD1 million but those are the special ones. For the rest, a HDB is a home sweet home.

According to estimate, there are around
2,800 Good Class Bungalow (GCB) in Singapore.
Well, it seems that buying a Good Class Bungalow (GCB) in Singapore is a trend among the super-wealthy. Good news for Singapore I think when so many of these super-wealthy people want to own a piece of real estate and are willing to pay a premium for it.

The two words that come to mind is always safe-haven. Coupled this with financial safe-haven and suddenly it makes financial sense to hedge the value of money by putting it into real estate in a country which is already considered an advanced nation today.

We have another news in an
Article in theedgemarkets.com
.  Chinese video-sharing app TikTok’s newly-minted CEO Chew Shou Zi could be in the early stage of buying a property in the Queen Astrid Park Good Class Bungalow (GCB) Area (pictured) for S$86 million (RM269 million) or S$2,700 psf based on land area, reported the Business Times today. The 999-year leasehold property has a land area slightly over 31,800 sq ft, with an old bungalow on site. There are a lot more details in the
Article in theedgemarkets.com

L
easehold is perfect okay because it’s 999 years

When it comes to property purchase and the property title, many have questioned why leasehold, why not buy freehold. Truth is, 999 years is considered quite forever. It will be at least be within the owner’s possession for more than 10 generations, depending on when the owner bought into it.

As for that reason to buy, let’s just agree that for many people, the reason to buy has got nothing to do with the number of rooms, the size of the tiles or even whether there is a sunrise / sunset view. Most probably the reason to buy is just because they could afford it and they think it’s worth buying. Period.

I will not be thinking about how to buy a property in Singapore lah. Just too expensive for me. However, visiting Singapore can happen a few times every year once all these Covid-19 issues really do move on to the next phase which is the endemic phase; living with it. Hopefully that comes sooner than later. Middle 2022 perhaps. Cheers.

Love news like this and more?
Sign up for daily investment news updates.
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article:
SGD30 million? It’s okay because the property is a nice one

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RM941.73 million profits PER QUARTER. Good or bad?

If you were to ask most of the companies which are listed in Bursa exchange whether they would love to be earning RM941.73 million per quarter, the answer is a resounding yes. By the way, even the largest glove company in Malaysia, Top Glove’s super unbelievable quarterly profit for Q2 2020 is at only at RM422 million. Maybank’s Q2 2020 net profit came in at RM941.73 million. Quarter vs Quarter, Maybank’s net profit is still more than double that of Top Glove.

Then again, if compared to the time before COVID-19 and of course before the current moratorium, Maybank’s net profit has fallen by more than half. In Q2 2019, its net profit was RM1.94 billion. Let’s get to know a little bit more about what Maybank says about its latest results yeah.

Article in themalaysianreserve.com
    Maybank’s revenue for Q2 2020 has declined from RM13.05 billion in Q2 2020 to RM11.79 billion. It says that the weaker performance was because of the movement restriction order as well as reductions in interest rates across most of its regional markets due to COVID-19 pandemic.

The bright spot includes higher loan drawdowns, strong growth in current and savings accounts (CASA) deposits and the funding relief plans for the SME segment. Cost control was a main feature and it has managed to reduce this by 4.1% from RM2.82 billion in Q2 2019 to RM2.71 billion in Q2 2020. Net impairment losses for Q22020 rose to RM1.74 billion versus RM452.3 billion a year ago. This is a prudent stance based on forward looking assumptions. Do read the comprehensive report here:
Article in themalaysianreserve.com

Banks reflect the economic condition of a country, especially if it is the largest bank in the country. When times are good, more people borrow, they earn higher profits. When times are bad, fewer people borrow and of course the profits will dip. What’s important is that the bank is pro-actively managing it. The question on everyone’s mind should be when would the recovery start and if it does start, would the profit numbers go back to pre covid-19 time. Happy thinking yeah. Nope, I do not own any Maybank shares currently.

Love to be updated on all investment news?
Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Next suggested article:
When banks refuse to lend you or lends you less than what you applied for, what does that mean?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


The road to millions, or billions, please be alert

In Facebook and everywhere online these days, many ‘sponsored ads’ appear and tells us how we can be millionaires if we click on the link or attend some workshops and seminars. Let me be very direct on these adverts. IF the person advertising can
become millionaires easily
, then why advertise in anymore? Come on, the first person that he is able to turn into a millionaire would tell his whole family. When his whole family becomes millionaires, then news can spread like wild fire and after some time, this advertiser actually have way too many students that he may not want to advertise anymore or at all. Not true?

The younger generations of today seems to like everything fast. Faster phones, faster cars, faster recognition (even if bought ones) and perhaps faster to be super rich.
Working hard for a few years to afford one tiny apartment?

Not a great choice. It’s best with a little investment but with a huge return. It’s even better if one does not have to start with any savings at all. Come on, there are lots of advertisements out there teaching one how to buy anything and everything without a downpayment. Yes, I am not just talking about property but also electrical goods, smartphones, branded handbags and more. Do note that none of the advertisements would tell you ‘no debts’. It tells you ‘no downpayment.’ This is one major reason why bubble will always build up.

Yes, I agree,
I am from the older generation
 where before you expect the company to treat you well, you may well have to work hard and perform FIRST. I am also one who believes that investment would give me good returns but only after a few years and certainly not immediate. I am also one who would rather buy a little far away with a calculated risk and perhaps a lower return BUT I would not buy any hotspot properties at a premium with the thought of earning even more because its already a hotspot. Remember, when
we are greedy, we can be cheated easily.

Note though that I am not from a too old generation where one home is all that’s needed. I no longer believe that we should have just one home. At least 2. One for own stay, one for investment so that when we need money at the end of our working lives, we do have one asset which we can sell and use the proceeds to live almost the same as before we retire. Stop hoping, start investing.

written on 2 May 2015

Next suggested article:
Plain unlucky or just simply no planning?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Roadside megastore by Uniqlo. Definitely worth a visit.

Latest Update. It’s OPEN yeah. HOWEVER, visiting next week is okay too. It will still be around yeah.

— endof update —

Original article:   Before COVID-19 arrived, I visit Uniqlo often. Usually it’s in the mall. Now there’s a roadside megastore by Uniqlo in progress. I have many Uniqlo branded clothing. Probably 20 or more over the years. I think it’s comfortable even if the price is very slightly higher than the usual local brands we see in malls. By the way, if you still do not know this brand, it’s okay to skip this article yeah. This roadside megastore by Uniqlo will be the FIRST in Malaysia, fifth in the world and third in ASEAN.

From
Uniqlo Malaysia’s FB page, this is their message:

As we mark UNIQLO’s 10th anniversary in Malaysia this November, we are happy to announce that our FIRST roadside store at DA Square @ Damansara Avenue will be opening soon! This UNIQLO store will be a roadside, community-based store in Bandar Sri Damansara, surrounded by residential townships, schools and office buildings.

It has been carefully designed to ensure enough space and accessibility for all, including families with children, elderly people and people with disability, and will feature its own car park for our customers.Stay tuned for the launch in December 2020.*Images shown of UNIQLO Roadside Store at Bandar Sri Damansara are artist impressions only.

— end of message —

Click here to go to their FB page.

Yes, it’s in Sri Damansara. I think they have chosen an area where there’s already a big population and still growing. So, once it opens, Sri Damansara would have two megastores. The other one is for sports equipment which I frequent often before COVID-19 arrived.
That store is Decathlon. (earlier article here)
.  Now, everyone could come to one place and visit their favourite megastores.
By the way, there’s no need to buy a property nearby just so you could visit this new roadside megastore by Uniqlo yeah. If you happened to like Sri Damansara, then by all means buy one. Else, anyone staying nearby within a few km could drop by to this Uniqlo at anytime. One of the most important thing about megastore would be the choices available. Perhaps some exclusive items could also be sold only in this megastore to get even more people to visit. It’s just one month away. Happy waiting!

Love to be updated of investment news?
Sign up for KopiWeekly. (once per week for property, finance, investment news and more)

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Next suggested article:
Property price based on inflation. Why not?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Have a ROARing 2022 everyone

Have a ROARing 2022 everyone. It’s 2022, the Year of the Tiger.

I am super grateful that I am able to spend the CNY with my family. This was something I was not able to do despite distance being just a 2 hour drive away. My wish is a simple one. That we will always get to meet our family and loved ones anytime we think of them. Happy Chinese New Year and Happy Holidays to everyone.

Property News Malaysia?
Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER).
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Next suggested article:
I am happy with 1% return every year

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


My portfolio, my roboadvisor and my returns after 12 months.

I have started a ‘forced savings’ with Stashaway about a year ago. Forced savings means I will not look at it until after some time. Today, I suddenly remembered and I logged in to take a look. The roboadvisor has helped me to adjust how my portfolio. Take a look at the image below. Slightly more are into government bonds (this meant the market is rather volatile). International equities have gone down, indicating that the volatility may be hard to predict, better stay safer. I think commodities have dropped in price and perhaps this is a good time to buy. Thus, they have increased the weight for me. How apt, I think the roboadvisor thinks like me!

How would this help me maximise my returns? Well, the returns after 1 year is slightly below 4%. Exact number is 3.69% and this is after deducting the roboadvisor’s fee yeah. Not awesome but if I did not do this ‘forced’ saving, I might have used what I invest on a monthly basis into more cups of lattes or even make me start thinking about a new smartphone with one whole row of cameras at the back? Haha. My Oppo R9S has just ONE camera.
 Still works well. (click here for the phone detail)

By the way, if you like to start a
forced savings like me, here’s that link yeah. (click here)
 For those who invest, moving forward we have another common topic too. Whatever I earn, if you have the same risk appetite as me, we could be earning the same %! Please do not borrow to invest lah. Just forget a small part of your salary every month. Even if it’s just RM250, you will feel very happy when you look at the total amount again after 3 years, even if the returns is just 3.68% per year, you will be very near a 5-figure amount. Yeah, that’s called compounded returns.

By the way, in case you have forgotten, the Fixed Deposit rate is 2% or lower currently. With the potential further cut in rate by our Bank Negara Malaysia this year, perhaps good to also think about diversifying. Not take all out of FDlah, too high risk. So, you see, it’s not all about property. Yes, I am still a Public Mutual Gold member as at today. Happy investing yeah. Cheers.

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market. Else,
follow me on Twitter here.

Next suggested article:
Investing should be as exciting as watching the grass grow

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Robotics in JB, with help of Siasun from China

If we type ‘robots replace humans’ in Google search, we can find unlimited Youtube videos about it. If we google for news, these are some of the articles:
‘Will robots replace human drivers, doctors and other workers?’
 or this
“Rise of the robots, what advances mean for workers.”
 Basically, the theme is the same. Robots will replace us in many jobs in the future. From the articles, it is NOT just the manual jobs in factories or plantations. Those are already being replaced even as we continue to drink of Starbucks today. The robots may replace even medical staffs. Okay, sounds pretty scary at this moment. I would prefer to see a smiling human face greeting me in a hospital and not a robot, unless of course I could no longer tell the difference! As of now, this is not so near future but robots and by extension, the robotics industry is really going to be around for the foreseeable future. Johor may now play a part too.

Do refer to the latest business joint-venture between
Malaysia-China reported in Astro-Awani.
 It says that Johor Corporation (JCorp) has signed a Cooperation Intention Agreement with Siasun Robot Investment Co. Ltd to develop 404 hectares of land for the Robotic Future City in Johor worth RM15 billion. This is an extension to an earlier MOU a month earlier. JCorp released a statement saying that the project would produce and attract high-skilled talents to create high-income employment opportunities and accelerate the region”s economic growth. Who is Siasun?As per the article, “Siasun is the largest organisation for robotics development in China and the third largest in the world. It is listed on the Shenzhen Stock Exchange with a market capitalisation of 40 billion yuan (RM25 billion).” As per Forbes, it has ranked Siasun as Asia’s top 200 best companies under a billion. (US$1 billion). Here’s
the link @ Forbes.
In brief, JCorp has found a good technology partner. As for how far and how fast the deal would go, let’s keep following.

The debate about the oversupply of residential homes in Iskandar / JB should not just be about how many new homes were built or completed. Or even
some scary articles here.

It should be about whether there are enough employment opportunities created from more high-tech companies. It should also be about how many
Singaporean SMEs are relocating or adding to
their production sites in Iskandar. As long as these new jobs are being offered in Iskandar, it meant that the number of people employed would increase. When this happens, more homes are needed. The best focus is thus to keep getting more of these high-tech companies wishing to invest and build in Iskandar. In the beginning, let’s get more expats to move here while the locals are being trained. If however, all these new investments are not forthcoming, then there is no need to debate if there is an oversupply because once these new homes are completed and no one stays in them, it will be eerie and scary. Please work harder, dear authorities and of course the private sectors too.

written on 15 May 2017

Next suggested article:
Who says don’t buy Johor’s property? You should buy

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Malaysia’s robust macroeconomic conditions supportive to banks

Is the property market still getting the right support from the banks? Well, it’s vice-versa too because the question can also be if the property market is still supporting the banks’ bottomline. A huge percentage of banks’ profits come from property loans. If everyone stops buying, then the profit stops too. 🙂  Personally, I hope the bank do not simply support every potential property buyer though. Earlier article here:
Lending to everyone is not helping the borrower, actually

Anyway, my views are irrelevant. Let’s listen to Moody’s Investors Service’s views about Malaysia’s banking system outlook.
Full article in nst.com.my
 here. It said that Malaysian banks are seen to to be stable (A3 stable) over the next 12-18 months. This view is supported by robust macroeconomic conditions within and outside the country. Moody’s Vice President and Senior Analyst, Simon Chen shared that having such an environment is favourable to Malaysian banks. At the same time, this helps to stabilise asset quality and profitability.

Moody’s conclusions were based based on its assessment of six drivers, namely operating environment (stable), asset quality (stable), capital (improving), funding and liquidity (stable), profitability and efficiency (stable) and government support (stable). It thinks policy uncertainty poses a risk but has forecast Malaysia’s real Gross Domestic Product to expand by 5.4 per cent in 2018, and loans growing 6-7 per cent in the same period. It said that corporate profitability will be improving and growth in risky household loans eases.It also said that local banks are well positioned to comfortably meet minimum requirements under Basel III liquidity and funding rules.
(
Briefly, Basel 111 requires banks to maintain proper leverage ratios and meet certain minimum capital requirements.
Please read more details here.
)
 There would be faster loan growth too which will continue to help in the profitability profiles of the banks too. Moody’s currently rates 11 banks in Malaysia – eight conventional commercial, one investment, one Islamic and one government-owned development financial institution.It has maintained a stable outlook on the Malaysian banking system since 2010.
Full article in NST for reference here.

Regardless of what some well-known property experts say, always remember to look for an overview sign provided to all of us by the banks. When the banks’ start showing slower loans growth as well as profits which were lower than previous year, this is already a sign of a slowing down market. When the market slows down and we still pay at the higher end of the scale for the property, then it’s our fault for failing to see that the market has already slowed down for the past 1 year. Market recovery takes time too. It’s also now possible for me to say more loudly that Malaysia is not about to fall into a financial crisis too. By the way, the economy has not SUDDENLY changed within the past 1 month yeah. However, the sentiment has indeed turned positive which is a good thing. Perhaps it’s time to wait for more assessments from the other two international rating agencies; Fitch Ratings as well as Standard & Poors. Happy reading ratings.

written on 18 June 2018

Next suggested article:
Not going to invest, regardless of the government of the day

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Roof over your head and ever smaller sizes? Hmm.

No matter how rich or poor you are, you need a roof over your head, true? True. Next question, buy something within your budget but where? Far away and be jammed when it rains heavily or buy much nearer and closer but much smaller units? Walking distance to the new future MRTs. Prices in Hong Kong has always been way above what their typical household can afford. Do not be fooled by the typical series you view on TVB. Not many of them are staying in those big units. Majority, since my university days stays in apartments / flats for which if one person has to sit inside the toilet for a mahjong session. Today I read in therakyatpost.com about newly built studio flats of 177 sq feet veing sold for HK$1.5 million or RM621,000. 177 sq feet is around 10% of my current condo here in Damansara Damai.

There’s no need to wonder too much about how big is 177sq feet. Just go to AGODA, look at the hotel room sizes. It’s a typical room, with a bed, small toilet and a super small simple kitchen for you to cook your instant noodle or heat up pre-packed soups. That’s 177 sq feet. They call these high end micro-flats. There was even a comparison of the size with Hong Kong’s prison cell which is only 3 times smaller! The marketers said that these units are hip and caters to the singles and that it’s better than those in New York which is not just small but old. The campaigners against them said that these units are inhumane and that “You lose your dignity even though you have the bricks and mortar.”

Personally, if you have been following kopiandproperty.com, you would know that I have always been against SOHO / SOVO / SOFO units which are smaller units but sold at a comparable price of a further away apartment / condo which is more suitable for families. However, I have to say that these units are really more practical if you are single and would just want a roof over your head instead of a unit which you would want your family to grow in. Furthermore, how many times would you be entertaining your family members who visits you in a year, if that happens, sleeping on the floor can always be a viable option. This does not mean however that the units should be priced ever higher because I do not believe even a rational single may want to part with RM500,000 or higher just to own a 600sf unit no matter what you promise them. To me, Malaysia is not going to reach the levels of Hong Kong anytime soon, not even by 2020 if you ask me in terms of property market development. Stay with units which will be preferable to more people and understand that there are limits to the prices increase to these units.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Roubini: No 2008 global financial crisis BUT ….

Roubini is a famous person when it comes to crisis predictions. He is also known as Dr. Doom and was one of the few who gave strong warnings for the 2008 crisis before it happened. The below is a sharing from him which I read in an online media when he was asked if the world would soon be going back to 2008 with another global financial crisis and recession. His first answer was a straight forward no. However, he then shared SEVEN potential causes instead of just single factors. They include the following, in brief and explained a little for easy to understand reading.

Worry #1 – Potential for a hard landing in China. He believes China would have a bumpy landing versus a hard landing.

We should always be reminded that China has the largest foreign reserve in the world and is also the world’s engine due to the huge demand and manufacturing which feeds the world

Worry #2 – Emerging markets are in serious trouble. Many have macro imbalances where they run current account and fiscal deficits, rising inflation and slowing growth.

Please note the three items closely; fiscal deficits, rising inflation and slowing growth. Always look into these three at all times. Of course during good times, nobody notices much.

Worry #3 – Federal Reserve probably made a mistake in ending its zero-interest rate policy in December. This is because weaker growth, lower inflation and even tighter financial conditions may now tamper with US growth.

Let’s hope US will still be growing instead of causing uncertainty to all the emerging markets due to the stronger dollar versus the world.

Worry #4 – Many global conflicts are happening. One of the most certain is the proxy conflicts of Middle East’s regional powers, particularly Sunni Saudi Arabia and Shia Iran.

I think the most recent heightened tension closer to home would be North Korea who continued to show defiance even as the US continuing with its warnings to them.

Worry #5 – Declining oil price is actually due to weak global demands and not due to rising supply. Growth in China, emerging markets and the US slows.

Haha. I told my colleague just a few days ago. Based on only the cost of production, I seriously wonder why should the price rise back to the US$100 levels. Demand has always been lower than the supply all these while, even when oil prices were extremely high.

Worry #6 – Global banks face pressure of lower returns with new regulations since 2008. This is coupled with rise of financial technology that threatens to disrupt their already-challenged business models and more.

I think everyone should also note the cost of these global banks. Clearly those bonuses to the top management are unsustainable too. More pressure may mean better efficiency? Let’s hope.

Worry #7 – The European Union and the eurozone could be ground zero of global financial turmoil this year. One huge crisis would be the migration crisis. Besides, Britain will most probably be exiting the EU. Greece is still in trouble. Briefly, EU is facing its biggest challenge currently.

I hope Germany is able to keep EU members together and Britain stays within EU. I do not think they would benefit more by exiting.

Personally, I do not believe another 2008 or worst case, 1998 is coming back when we look at all the current set of numbers. However, someone told me that the slowdown currently will last at least the next 2 years. I think she is quite right. In fact, after the crazy years of 2009 – 2012 for the property market in Malaysia, I told her that I am hoping that people become a little more objective. Oh yeah, even for 2016, Malaysia is not likely to slip into a recession. Many countries close to us may have to slip into one first including that developed neighbour should China stays in trouble and oil prices drops again continuously. Happy reading.

written on 11 Apr 2016

Next suggested article:
Low petrol prices and the property market, not easy

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Never ending rows of children books and NO baby chair?

I wrote about my personal requirements for malls, both new and old earlier. You can read here:
My must have for malls, both old and new

Today, I want to share a recipe for failure for any restaurants operating in a mall today. Before that, let me tell you that my wife and I spent over 3 hours in Big Bad Wolf and we still could not finish looking through all the good books for our kids. As soon as you go in, you see ‘Children’s Books,’ followed by more rows of Children Books and then a sign right in front that says ‘More Children Books.’ Want to take a guess, what books did I buy most? Yes, children books! The demographics have shown that we have a huge young population and with even more marriages for the late GEN-XERS AND more Gen-Yers, get ready for even more. Next time, Big Bad Wolf can start another “Big Baby Wolf” book fair specialising in just baby and children books! Now comes the awesome part.

After the visit, we walked over to The Mines mall for an early dinner. We chose a familiar Korean restaurant, went in and asked for a baby chair. The waiter said, ‘I am sorry, we only have two and both are taken.’ I think the owner is extremely LOST in this plot of getting more patrons to spend more means to welcome those with families! Needless to say, my wife and I enjoyed Nando’s and spent nearly RM100 there. Assuming only 3 families were pushed away per day and they spend RM100 each, that’s RM300 x 30 days = RM9,000.  More than enough to pay for a few waiters! Well, let’s hope this Korean restaurant learns and all the other restaurant owners who are reading this understands too. If business is not easy, then why are you saving RM55 for an IKEA baby chair? Come on, once bought, you can use it for many years.

Okay enough of ranting. I think it’s savvy to note that as families grow, even if just 3 or 4 members, the type of homes they need would need to grow too. Definitely not a 550 sq ft SOHO but perhaps a landed property may be too out of reach by then since the prices today are already on the higher end while those dilapidated or extremely old ones are shunned upon. A young guy who’s an assistant manager just asked me the other day, if he wants to buy a landed property in Sungai Besi, would it be a good buy. I laughed and replied, ‘If you can afford it today and the width is good enough for two proper cars, of course it’s good buy. Surely, there are richer professionals out there who may buy it from you in future.” He drives a Passat and his wife a Myvi I think. I told him that it’s either a 22 feet width landed or he may opt for a high-rise (bigger units) instead. Buy what we like but just note, the number of families are still getting bigger currently. Cheers

Written on 14 Dec 2016

Next suggested article:
It’s a renter’s market. Thats why best to buy

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RPGT – 30% flat rate for properties sold within 10 years.

Don’t sweat, yet. This was proposed by the National House Buyers’ Association. It’s honorary secretary-general Chang Kim Loong said that further tightening is necessary despite the falling transaction numbers. This is because there are still property speculation. His opines that if the buyers are really buying for own stay, none of them would sell within 10 years. This is because speculators normally hold it for 3 years (construction stage) or up to 6 years to escape RPGT. Thus, if RPGT is set at 30% for properties sold within 10 years from data of acquisition, this would deter speculators. He is proposing this for 3rd property onwards. genuine long-term investors who buy for their children  would not normally sell so soon; within 10 years. Thus, ONLY those who sells their properties after 10 years can be exempted from RPGT.

CB Richard Ellis Malaysia group executive director Paul Khong is however on the other end versus Chang. He hopes that there would be some relaxation of the property cooling measures since the tightening from 2012/2013. Instead of increasing the RPGT from currently, he suggested that RPGT be reduced instead. He said this will will enable the investment market to move up but still be healthy. Some suggestions included an easier financing to low to mid priced properties and reintroduction of DIBS for first time house buyers. I do agree on the last part. However, only for FIRST TIME home buyers.

Personally, I do not think increasing the number of years from 5 to 10 would curb speculation. In fact I think this will mean that property investment would be less viable. As soon as this is implemented, the overall market would be dampened even further. Looking at the transactions today, do you think there’s no demand or people are still waiting for more affordable properties? I think it’s more of the latter. If RPGT is extended, the current buyers may choose to do two things. One, continue holding until the property itself becomes OLD. Second, sell it higher due to the RPGT. In both instances, the first time home buyers do not benefit. As for new properties, even first time home buyers would be thinking twice because as soon as they buy, they could not upgrade the property without paying a huge RPGT for ten years. From the day I graduated till today, I have worked over 16 years. During this period, I have moved homes 8 times. Not many of my friends have stayed in the same property that they bought for over 10 years yet. Majority of whom have upgraded after a few years.

I WANT RPGT to stay. I hate speculations. It destabilises the market and may cause bubble to build fast. However, I do not think 10 years is a wise suggestion for the overall market for the sellers, buyers and even developers. Perhaps even the government does not benefit from this.

written on 8 Oct 2014

Next suggested article:
With RPGT, no more property investment

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RPGT is to be calculated based on value from year 2000, not before.

I think my good friend in Penang will be slightly happier. He was asking me about the properties he acquired long ago which he needed to dispose now for his daughter’s tertiary education. He will ‘lose’a lot due to the sudden announcement of the 5 percent Real Property Gains Tax regardless of how long one has kept the property. Before this, RPGT will no longer be charged as long as one has held the property for over 5 years. It was a cooling measure to keep speculators out of the property market previously.
Here’s how you calculate the RPGT

Article in NST here.

Finance Minister Lim Guan Eng said that the RPGT valuation on property would only be calculated from the year 2000 onwards, says Finance Minister Lim Guan Eng. He said, “There were parties that raised concerns that if the property was bought since 1960 and later sold, how much is the tax that they need to pay. Therefore, the ministry had set the date of valuation to begin from the year 2000 despite the land being owned since 1960. It would only be valued from 2000.” This was to provide clarity to all the feedback from concerned property owners who have bought and owned land extending decades before 2000.

By the way, this is NOT for properties bought BEFORE 2000. This meant that all properties regardless of when they were bought will use year 2000 as the valuation year for the RPGT calculation. Technically, one should ‘save’ a lot from this versus if year 1988 was used for example. Although this does not take away the thinking that the government is doing this for more revenue (SST vs GST), it’s important to note that this may also be done in conjunction with the measures to reduce the current unsold properties which are in the market. Owners who decided not to sell may also be reducing the supply of available units for sale in the market. Personally, I hope this is NOT going to be forever because there is really no justification to this. Many investors may now stop buying properties because now there’s an extra hurdle that will never go away. Happy buying.

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market. Else,
follow me on Twitter here.

written on 23 Nov 2018

Next suggested article:
Stamp Duty for unsold property and RPGT for all

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Stamp Duty on unsold properties and the RPGT for all

National House Buyers Association (HBA) says this in their website, “We are a voluntary, non-political, non-governmental, non-profit organisation manned by volunteers.”  Over the many years that I have been reading their comments, I think they are pretty serious in doing what they do. I may not agree with their views all the time but I think the government should engage them for their views too before any big announcements for the property market. Here’s their latest
Comments HBA in NST here.
  This was in response to the recent Budget 2019. My personal comments in brackets.

HBA disagrees with the RGPT for all sellers even if they are selling their properties only after 5 years. (I think many owners who were waiting for the 5-year period to pass would be caught by this announcement too. They have two choices; sell at a higher price to cover the 5% RPGT or stop selling but continuing to rent the property instead. First one depends on how attractive their property is to the market. Second one meant that the supply of properties for sale in the market could be stopped and perhaps the sale of the current unsold properties could move faster?)

HBA says that the stamp duty exemption which was given to unsold properties costing between RM300,000 to RM1 million is disappointing. It said, ”Extending stamp duty exemption for properties costing up to RM1 million is like extending subsidies to the wrong target group.” It added that Bank Negara Malaysia has stated that the median property price in Malaysia is already severely unaffordable and out of reach to the majority of the people. Thus, the proposal to exempt stamp duties (government revenue) will also enrich the already “rich segment” of society and developers having such stocks. ”These are finished but unsold stocks that have been classified as ‘overhang properties’, high end properties which are definitely not within the reach of the majority of middle class population.”
Here’s that full article for reference from NST.

For the duty exemption, I think what the government wants to do is to reduce the current unsold stock in the country which is the cause of concern for all the buyers currently. Everyone, especially first-time home buyers are scared every time someone forwards articles saying the super high number of unsold properties in the market. So, I think this move by the government in Budget 2019  is understandable. High unsold numbers are not healthy for the market anyway. They (government) just  need to also have measures to help the first-timers get their first home too. Our Finance Minister said that he will be engaging the HBA soon. Happy following.

written 4 nov 2018

Next suggested article:
Median property price in Malaysia is dropping. Good or bad?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RPGT of a few hundred thousand? Here’s how you calculate.

Many are worried that they will be taxed lots of money when they sell their property in the near future. After all, 5% Real Property Gains Tax (RPGT) is now applicable even if we sell the property only the end of 5 years. Assuming we sell a property for RM2,000,000 today, the 5% RPGT means we pay RM100,000 right? NO. Well, it used to be ZERO RPGT after 5 full years of holding the property, remember? Okay, so if the property price has appreciated by 10 percent from the price we paid, if we sell it now, we only get 5 percent profit? Answer is still NO.

Calculation as follows: (6th year of ownership onwards)

Price we bought: RM400,000

Price we sold: RM800,000

Gross Profit: RM400,000

RPGT of 5% = RM800,000 – RM400,000 = RM400,000 x 5% RPGT = RM20,000

RM20,000 is the MAXIMUM amount payable to the government. As we know there are also other costs such as stamp duty, legal fees, advertisement charges, etc. These are deducted from the gross profit before the RPGT of 5% is applied. To make it even simpler, here’s a RPGT calculator from LoanStreet for your perusal too.
Just click here.
 RPGT’s intention is aimed at deterring speculators from flipping properties (in the beginning). This is actually good for the market especially for most genuine home buyers as well as potential home buyers. We do not want the property prices to spiral out of control, do we?

As for RPGT in Budget 2019, there are a few key intentions which could be observed. First is to help the government in getting more revenues through taxing those who has the money (after selling…) versus taxing the B40 households. (someone has to pay the tax…)  Second is to help to reduce some incoming supply from sellers because if these sellers could hold, they will not sell so soon because of the extra RPGT which is payable. This should help to clear some of the unsold stocks in the market today. Third is well an extension of the cooling measures so that people do not simply buy any property. Now they know that even if they keep for over 5 years, they will still be charged RPGT. Happy understanding.

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market.

written on 8 Nov 2018

Next suggested article:
No SST does not mean lower property prices

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RPGT is still around, DIBS can come back.

DIBS (Developer Interest Bearing Scheme) should be reinstated for people buying their first home. Rehda Penang Chairman, Datuk Jerry Chan said that this is essential because it was so tough for genuine buyers to get a home of their own these days. DIBS makes it easy for buyers to buy because they do not need a huge downpayment. In fact, DIBS was abolished because of the view that it has encouraged too many buyers to flip which is not a healthy thing in the property market. I sort of agree with him. I think for first time home buyers, more things can be done to assist them.

Personally, I think DIBS can be revived because we still have RPGT (Real Properties Gains Tax) anyway. Majority of buyers may think twice if they wanted to flip because they really have to ensure the profit is there or else it’s a waste of time for them. However, if we are really serious that this is only to help first time home buyers, then limit it to certain types of properties only and not a blanket one across all. How about limiting it to just properties below RM500,000? This will help developers to plan their developments so that it is below Rm500,000 and actually benefitting the first time home buyers.

Anyway, the issue with all these schemes is always that the buyers / flippers may find a way around it. Malaysians are the most creative lot. Thus, if REHDA Penang is serious in helping first time home buyers, then the control should also be from the developers too. Disallow bulk buy. If this is to help genuine buyers, why should these genuine buyers buy more than one unit? Many developers have only one objective in mind, sell everything quickly. However, if this scheme is to be continued successfully, I think REHDA Penang has to send a very clear message to all its members. To me, bulk buy is one reason why speculative activities are happening and not just these loopholes etc.

There, if DIBS comes back for first time and genuine home buyers, RPGT will be a good line of defence but the first line of defence would be the developers themselves. Should it be revived for first time home buyers? Personally, yes. Even if I am not qualified.

written on 1st May 2014

Next suggested article:
REHDA – Negative and Neutral on property market

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RPGT is positive; raises revenue without taxing lower-income group

That 5% in RPGT announced in Budget 2019? Okay, most of my friends with properties said that it’s not good for them. One said, “Now I have to pay a few hundred thousand ringgit in tax?!” I laughed and said NO you will not. This is real property gains tax. So, even for a RM400,000 property which had doubled to RM800,000 the 5% RPGT is actually RM20,000. (RM800,000 – RM400,000 = RM400,000 x 5% RPGT = RM20,000) It is not RM800,000 which is selling price x 5%. Anyway, he is still unhappy that he has to pay the extra tax since he has held the property for more than 5 years from the time he bought it. Perhaps the government would also need to communicate in numbers on what would the effects be. Many remain unclear how RPGT is calculated.

According to some analysts, the RPGT can be looked at positively.
Here’s that article in TheStar.com.my
  KPMG Tax Services Sdn Bhd executive director Evelyn Lee says that the government has taken positive measures to raise revenue without taxing the lower- income group in Budget 2019. This is her comment about the RPGT. “This move is designed to increase revenue and not to curb speculation and targeted for assets held more than five years.” Meanwhile Raine & Horne Malaysia senior partner Michael Geh said the RPGT increase was slight and fair. He added, “The move will encourage more people to hold properties for their own use for a longer period.” As for the stamp duty for properties priced above RM1mil, Geh, “It won’t have a significant impact on the property market.”
The article for reference here.

Personally, I believe one strategic reason for the RPGT is also to curb some supply of properties into the market so that the transactions can be more skewed towards the unsold properties instead which is over 35,000 units for unsold and completed units. As for how bad is the unsold properties, we can look into state by state as per image. On an overall basis for Selangor and Kuala Lumpur, the unsold and completed units are not considered critical at this point in time. Nevertheless, the lower the number, the better the sentiment will be because many first-time home buyers are worried to make their decisions for fear of the unsold property news. It may be a good time to hunt for a property because even the stamp duties for SPA / Loan are now waived for properties below RM300,000.

written on 7 Nov 2018

Next suggested article:
No maintenance fee? No maintenance loh

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RPGT removal is good for the property market? After 6 years yeah.

Yes, RPGT is needed as it serve a purpose

I am someone who believes that Real Property Gains Tax (RPGT) is something beneficial for the property market. I would not want someone to come in and do excessive speculation and caused the property price to go up too fast and then when it collapses, affect everyone who owns a property.

However, it should not be forever (no matter when I sell my property)

However, I cannot accept that there is a 5% RPGT when someone sells his / her property even if the property has been owned for over 5 years! Just do not do all these because the GST was foolishly abolished okay… Bring the GST back and if necessary, start from 3 or 4%. Can definitely slowly move it up like how many other countries have been doing. Relying on SST is NOT a good decision when it’s proven that GST is a superior option even if not perfect.

So, now we have a decision on RPGT once someone has held the property for 6 years.

Article in malaymail.com
    Malaysia Real Estate and Housing Developers’ Association (Rehda) says that the removal of the Real Property Gains Tax (RPGT) will help invigorate the Malaysian property market and eventually translate into a positive multiplier effect on the economy.

Its president, Datuk Soam Heng Choon said, “The RPGT was initially introduced to curb speculation when the property market was buoyant but under the current soft market conditions, we welcome the government’s move for the removal.”

Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz, when tabling Budget 2020 in the Dewan Rakyat yesterday, said the government will no longer impose the RPGT for property disposals by individual citizens, permanent residents and other companies starting from the sixth year onwards. Please do read the full article here:
Article in malaymail.com

Yes, now I will be happier when I sell my next property

The next property I intend to sell is over 6 years, so now I can save over RM20,000 if I successfully sell it. Definitely a wise decision and a good one because RPGT is NOT supposed to be a source of income. It is supposed to deter the property market from too many speculative activities.

Yes, now everyone can visit property sales galleries again. Please keep asking a lot of questions before ever buying one okay. Happy deciding.

Property News Malaysia?
Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER).
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Next suggested article:
 Due Diligence is needed, not simply trust everything people say

Header Photo by
Nataliya Vaitkevich
 from
Pexels

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RTS gets in-principle approval. 10,000 travellers in one direction / hour.

High Speed Rail KL – SG has NOT been cancelled.

Anyhow the meeting to formally talk about this between our Economic Affairs Minister Datuk Seri Azmin Ali and his Singapore counterpart has not been firmed yet; date wise. He did say however that he had a “positive meeting” with Singapore officials when he went to the city-state recently. What’s even more important to JB is the Rail Transit Link. This is where a 4-kilometre rail line will run into JB from Singapore and will be able to transport 10,000 travellers in one director every hour. Pretty awesome actually when we look at the jams on weekdays and even holidays between JB and SG. A Malay Mail Online report cited Transport Minister Anthony Loke as saying that our Malaysian cabinet has given in-principle approval for the rail project linking Johor Baru in the southernmost tip of the country with Singapore. Details are still being looked at though.
Here’s that article in The Star for reference.

This was reported in Straits Times.
  Transport Minister Anthony Loke said in JB that once the full go-ahead is given, a joint operating company involving Malaysia and Singapore would be set up. He is hopeful that the RTS project would proceed as planned. The RTS is supposed to start operating in 2024. It will be linking the Bukit Chagar station in Johor Baru, near Sentral train station, to the Singapore terminus in Woodlands North. This is where commuters can transfer to the upcoming Thomson-East Coast MRT Line (TEL). He said, “Despite the delay, the RTS project will be completed in six years’ time by 2024.” He also shared that for the delay of two months, no compensation issues would arise because the matter has been communicated to the Singapore side. The joint-venture company has also been been formally set up as at today. The joint-operator would be Singapore’s SMRT and Malaysia’s national rail operator Prasarana Malaysia.
 Do refer here for the Straits Times article.

Yes, I personally think this RTS is by far more important as a catalyst to JB versus the HSR KL – SG. Especially to the property market because there is now a much better reason to get a home in JB versus renting a room in Singapore just to avoid the morning rush hour on weekdays. Anyhow this would depend on the number of Malaysians working in Singapore currently. According to a number by
mothership.sg, as at 2012, there were 400,000 Malaysians working in Singapore. The article here.
 Assuming just 10 percent of these are renting a room in Singapore today would still be easily a demand of 40,000 homes in JB, whether it’s by renting or through buying one. Many also fail to realise that despite those crazy jams from SG to JB during the holidays, only a small percentage of Singaporeans actually own a car. As for the rest, the option to visit JB easily may soon be made available to them in the future. All the best yeah RTS.

written on 7 Aug 2018

Next suggested article:
Biggest jump in eight years. Singapore property prices. Good?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


2024 is a good year indeed. Even earlier would be even better

Actually, I finished writing this article some time back. However, the mobile app and my MacbookAir had a ‘fight’ and I ended up without an article. I am thus rewriting this. To me this is a very important piece of news, especially for both Iskandar, Malaysia and Singapore’s SMEs. I have written much earlier that I love the High Speed Rail. It has good significance to all the stops along the way and especially for KL and Singapore.
How HSR would benefit the cities along the line

However, when it comes to really directly beneficial to the local economy of JB and a catalyst for a growing pool of Singaporean SMEs, it has to be the Rail Transit System (RTS). In brief, the extension of the MRT lines within Singapore into JB and back. In this case, Bukit Chagar and back. There was an earlier
news about the Bus Rail Transit.
Can also lah, since the RTS can only be ready in 2024.

One latest article has informed everyone that the joint agreement for RTS would be signed by the end of 2017.
The full article channelnewsasia here.
Some facts quoted include following. It will be able to carry 10,000 passengers each way per hour. (Actually not a lot I think but good enough as a start) Within Singapore, the station for the RTS terminus would be Woodlands North and on Malaysia’s side would be Bukit Chagar. (The image shows where Bukit Chagar is. A very convenient location actually. If you own a piece of land there now, can keep lah. )  A joint venture company would be formed to design, build, finance, operate, maintain and renew the RTS Link operating assets like trains, tracks and systems. (No other choice lah, two countries are involved)  The jam has been bad and KTMB Tebrau shuttle has increased its initial 14 daily trips in 2016 to 26 daily trips as of June 2017. However, when the RTS is ready, KTMB Tebrau is expected to stop its operations. (Positive news lah, rejoice a bit okay.)
Oh yeah, full article here.

Hopefully, this can be expedited even more. The more connections meant the more exchange of people could happen between both countries. Business transactions can increase too. I personally think the SMEs in Singapore can benefit more from this link as they could now think about expanding their businesses and even market located within an hour away. More jobs can be created too which helps the local economy. Cooperate lah. If we (Malaysia + Singapore) are not conducive to the many multinationals, then they would just go to other countries here.

When the connections are really convenient,
 it can also alleviate some property price pressures on the property market in Singapore. Choices are now increased. Some of the richer ones could even send their kids to study at the numerous international schools with really huge fields within Iskandar. More benefits definitely but for now, let’s just keep following the happenings.

rewritten on 5 Aug 2017

Next suggested article:
More firms going under not necessarily bad for future

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RTS JB – SG has a positive update

Yes, I personally believe the Rapid Transit System (RTS) will benefit both Johor and Singapore and the speed for its implementation needs to be faster. it is NOT just to ease the traffic between both sides yeah. Without the business part of the equation, I think we do not need to do so much just to ease the traffic… So, why do I think it is important?

Any new potential foreign investors (especially manufacturing related businesses)  into Singapore will need to hire and it’s not so cost-efficient to just have 100% of all the staffs they need within Singapore. Or even having the plant within Singapore. It’s a competition versus the whole world. Let’s work together because competition is out there yeah. With a combination of having a HQ and manufacturing side by side (linked by the RTS), our story to potential FDIs will be stronger. Yes, even if we are speaking about competing within ASEAN versus much larger nations compared to around 40 million for both Malaysia and Singapore combined.

Article in theedgemarkets.com
 Johor Menteri Besar, Datuk Ir Hasni Mohammad said that the works on the Rapid Transit System (RTS) project linking Johor Bahru and Singapore are expected to begin in November since all the requirements in the agreement have been met by both parties. With all these requirements being met, he said, “Thus when it is signed, within three months we will see the commencement of the project. By November, we will see something on the ground.”  The RTS is a four-kilometre project to ease traffic congestion on the Johor Causeway.  Do read the full article here.
Article in theedgemarkets.com

Singapore’s election is over. The government before the election and the government after election remains the same even if there were minor hiccups in some loss of vote. I think the speed of how to quickly recover from COVID-19 will now be in focus. Let’s keep all these catalytic projects continuing to happen and with more connectivities, then there will be more economic activities too. Please keep giving us more good news year dear Johor government and hopefully all the Ministers who are in charge of this RTS too. Cheers.

Love to be updated of investment news?
Sign up for KopiWeekly. (once per week for property, finance, investment news and more)

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Next suggested article:
Property market recovery starts in end 2020?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


RTS Link. (RTS JB – SG). RM1 billion awarded via 9 contracts.

RTS Link. Progress is positive. RTS JB – SG’s operator announced that it has awarded nine contracts worth a total of approximately RM1 billion. This is one of those catalysts which are needed for both sides. To the ones who says that only one side benefits from this, why not give the Singapore government more benefit of doubt? I seriously doubt they would enter into any agreement which will not be positive for the country. Agree with me? Does not matter, please do read on for the latest announcements.

Article in themalaysianreserve.com
 RTS Operations Pte Ltd (RTSO), the operator of
RTS Link
, announced today that it has recently awarded nine contracts worth a total of approximately RM1 billion.

Shamsul Rizal Md Yusof, RTSO CEO said in a statement, “We are pleased with the outcome of the tender exercise. There is a good mix of local and international players working together to make the RTS Link a success.”

RTSO chairman Datuk Mohd Farid Adnan said, “We understand the strategic importance of the RTS Link in bringing about significant economic and social benefits on both sides of the Causeway, which not long ago was one of the busiest land border crossings in the world.”

RTSO is the joint venture company formed in 2020 by Prasarana Malaysia Bhd (Prasarana) and SMRT Corporation Ltd (SMRT).

RTSO vice chairman Yap Kim Wah said, “This important bilateral project will deepen the already warm and friendly commercial, cultural and people-to-people ties between our two countries. The good progress made on the RTS Link project is a testament to the close collaboration among all parties.”  Please read the full article here:
Article in themalaysianreserve.com

Details about RTS Link project

(from MYMRT.com.my)

The RTS Link Project is a railway shuttle link approximately 4km length with two stations, one in Bukit Chagar, Johor Bahru, Malaysia and one in Woodlands, Singapore. This link will be integrated with public transport systems at both stations and this will help to alleviate the congestion at immigration checkpoints for both countries. This link will have a capacity of 10,000 passengers per hour, per direction and an expected ridership of about 40,000 passengers per day upon opening.

Journey Time is 6 minutes. Get it?

Working in Singapore and staying in JB is a very tiring matter, daily. Wake up very early in the morning, before everyone else. 6am is too late and the person will most likely be late due to the jams. This is why so many are staying in Singapore and this is also the reason why many are willing to pay S$600 (RM1,858) for a small room in Singapore.

Now imagine a stable journey which takes just 6 minutes. Even if we include another 10 minutes to get to the station in JB and another 10 minutes within Singapore to reach the office, that’s still less than 30 minutes. Happy understanding all the potential yeah.

Love news like this and more?
Sign up for daily investment news updates.
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article:
RTS Link. Best station design announced

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...