Alternative to HSR KL – SG is not High Speed Rail KL – JB yeah.

I think if you are interested with the HSR KL – SG news, you would have read many news, many GREAT comments and even lots of those saying that Malaysia IS THE ONLY SIDE who stands to lose everything if they cancel this HSR KL – SG. I do not think this is true yeah.

Let us understand again, IF HSR KL – SG benefits only Malaysia or benefits Malaysia MUCH MUCH more than Singapore, do we believe it would have been agreed by our neighbour? Erm… I think even Singapore believes that this will benefit them greatly okay.

This HSRKL- SG was definitely not agreed just because of any CLOSE friendship between the two governments (whichever you think is / was the one) yeah. So, since we now know that BOTH sides would lose something, let’s move on.

Photo by Albin Berlin on
Pexels.com

If HSR KL – SG starts operating, we would have gotten so many multiplier effects, especially from people travelling between KL – SG and all the stops along the way. Both countries could even be more competitive since the foreign companies thinking of setting up either in KL or SG can now set up their operations in KL AND SG. This is positive for both countries yeah, since that foreign company could also choose between Bangkok and Jakarta too…

Actually, now that it is officially cancelled, we would need a plan moving forward. We can continue debating on why cancel, why not discuss more, why Malaysian government cancel, why Singaporean government did not agree to the changes and WHATEVER. It’s cancelled. Period. Now, the alternative / replacement to this HSR KL – SG is NOT a HSR KL – JB yeah. Definitely no-go for a bullet train from KL to JB.

Just need an alternative plan
 (better come out with one soon)

No Bullet Train, however, we already have an existing train track yeah. All over Peninsular Malaysia, really. Some parts of it have the ETS. My parents take that everytime they come visiting me. I have also taken it a few times too. Anyone who’s been on a ETS train would also sing praises too about it’s quietness as well as speed, if compared to driving above the 110km per hour speed all the way from Ipoh to KL for example.

ETS the whole track instead

I do think somewhere along the discussions, someone mentioned that instead of High Speed Rail, we can do a HIGHER Speed Rail instead. (Go google who said that as well) Making the whole line an ETS line will be much cheaper BUT of course, the travel time is now longer. ETS’s top speed is 140km per hour.  KL to JB is around 350km. Thus, if we take the ETS, we could arrive in JB in slightly less than 180 minutes, non stop. I know, this is much slower than the 90 minuteKL – SG trip yeah. We are already talking about two different things here.

Conclusion

I do have a lot more thoughts on this but I guess let’s see what is the next few announcements to get a bit more idea. By the way, anyone thinking that with this cancellation, Malaysia will be GREATLY affected but NOTHING happnes to Singapore at all, happy thinking. It’s not true. Together, we would have been more formidable versus all other ASEAN members. Meanwhile if separated, we will just have to make sure JB – SG is very well connected. That’s the most vital part if we are talking about JB – SG multiplier effects. HSR was not meant to be a Iskandar catalyst. It’s a KL and SG catalyst yeah.

Happy New Year and I personally do not think this decision will cause us too much changes in economic growth because this was actually DELAYED for 5 years previously versus starting in 2026 as per originally planned. Remember? Stay safe and social distancing remains compulsory even if your state is under RMCO currently.

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HSR KL – Singapore. Yes, it’s finally confirmed.

Someone forwarded the news in Facebook. Yes, according to a report in The Malaysian Reserve, the High Speed Rail (KL – Singapore) has already been approved last Friday. This is a significant news for both Malaysia and Singapore no matter WHICH country is said to benefit more and which would benefit less. Truth is, without it, BOTH countries have zero benefits from it. That’s more important. Of course this piece of news gives more positive sentiment to Iskandar even if it has always been assumed to be a sure project from the beginning.

My personal thinking however would be that it would help Greater KL a lot as well. The reason is because currently it is just not attractive to drive all the way to KL. That’s the reason why majority of Singaporeans stop only at Melaka even if Melaka has her own attractions. If we consider the driving from Singapore to JB, the time needed during the holiday season would exceed the time needed for one whole family to travel from Singapore to KL, with five luggages to BUY to do lots of shopping. No joke, majority of the cars in Singapore CANNOT fit five luggages. Shopping is just one event. Staying over either in hotels or in their very own vacation home costing much lesser than their HDB flats back home is another attraction.

Tenders will start this year and construction will begin in 2016. It is indeed a tough goal to have the service operational by 2020 but as they say, aim at the sky, at least if you don’t reach it, you hit the clouds. Read here:
High Speed Rail? Completion Timeline ‘derailed’. 2020 not possible.
According to DTZ Malaysia consultancy and research head Brian Koh, “The HSR will have a significant impact on population growth in Iskandar,” He also predicted a 44% increase in the Gerbang Nusajaya township once HSR is completed. Datuk Ismail Ibrahim, CEO of the Iskandar Regional Development Authority said HSR would be complemented with a bus rapid transit (BRT) which allows connectivity to all areas and not just to one or two stations. Oh yeah, just a reminder. HSR allows KL – Singapore trip to be completed in 90 minutes with stops in Putrajaya, Negri Sembilan, Malacca and Johor.

I have written earlier that I think one of the two ASIAN rail companies would win this instead of the Europeans one. I still firmly believe in this. Happy waiting to ride it in 2020. I know I would be one.

written on 14 Apr 2015

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HSR KL – SG could be continued but only if …

HSR – KL – SG continuous news update. Okay, is it now a YES or was it still a NO, it will not proceed. It was a NO (cost is just too high, benefits may not meet those investments), then followed by an alternative; probably a slower connection at much lower cost. Here’s that article:
40 minutes extra, RM50 billion lower. Alternative HSR plan.Viable?

Then, it was announced in the media that Singapore has yet to be informed formally about this cancellation. Earlier article here:
HSR’s RM864 million expenditure by Singaporean side by Dec 2018
  Today, we have this title greeting us in an article in
TheEdgeMarkets:  HSR could be revived if cost is cut: Malaysia finance minister Lim Guan Eng.

kopiandproperty.com supports the HSR KL – SG and has also provided our personal views here as well:
Focus on the new demand, not just the existing. That’s the key to HSR’s attractiveness.

I know, it’s best to only proceed if the country could afford it. This is why the IF here is very important. What if the country really could afford it?

As per TheEdgeMarkets article,
 our Finance Minister Lim Guan Eng said, “The project by itself makes some sense, but not at the exorbitant cost.” He shared that ever since news of the cancellation was out there has been people who proposed that the project be continued but at half the cost. He added, “We don’t know whether that’s serious… (but) that means the whole thing was way overpriced and that raises more questions.”  When asked if there could be an alternative plan, he replied replied that discussions will be held in Singapore and it will be led by Economic Affairs Minister Azmin Ali and also Transport Minister Anthony Loke. This was what Singapore’s Foreign Minister told the Singapore parliament earlier. He said, “Should Malaysia cause the HSR project to be terminated, we will deal with the question of compensation from Malaysia for costs incurred in accordance with the bilateral agreement and international law.”

There you have it. Another latest piece of news and this one has sort of clarified that cancellation is not a final decision yet. Many would hinge on whether the overall cost of construction could be reduced. Perhaps this should be the main pointto be discussed instead of whether it should or should not be cancelled. We can conclude that the HSR KL – SG is definitely beneficial to both sides. Anyway, if the costs are cut, it is also beneficial to both sides, not just Malaysia. As for the viability of the alternative plans, we should be very objective because cutting costs should only be about getting similar quality at lower prices. Oh yeah, I remember much earlier on that the Chinese (China) has often said that the construction of such a high speed rail line would take no more than 5 years. In other words, who knows, the HSR could even be completed earlier? (and cheaper… perhaps). Happy following.

written on 11 July 2018

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HSR KL – SG: Taking steps in the right direction

Okay, when it comes to implementation, not many country in this world could beat Singapore. Whatever the government aspires to achieve, it would most probably be able to achieve it. Just look at their cooling measures. The government is still holding it tightly because they want property prices to be under their control. So, what does their action of acquiring the The Raffles Country Club site in Tuas tells us? They are SERIOUS with the Kuala Lumpur – Singapore high-speed rail (HSR). In brief, it’s very certain, from the Singapore’s side. The club said in its website that it will be required to hand over the 143 ha site to the Singapore Land Authority (SLA) by July 31, 2018. (This is just 1.5 years away.)  It currently has 2,650 members whom I think would need to find some other clubs to go to or perhaps even join the golf courses in Johor Bahru. 🙂

Full article in
 Singapore TodayOnline
 here. According to the Singapore’s Land Transport Authority and SLA in a joint statement on Wednesday, the country club site was the most suitable location to run at-grade tracks immediately after the bridge. The site would also hold the tunnel portal leading to the underground tunnels that will take the high-speed rail to the Jurong East terminus, as well as crossover tracks and a siding facility to temporarily house trains near the border. Mr Chua Chong Kheng, Deputy Chief Executive, Infrastructure & Development, LTA, said: “This, we feel, is the optimum site in terms of location, the size, and orientation. There are not a lot of options where we can actually site, without having to make a lot of land acquisition.” The Singapore government would be acquiring the land based on market value as at acquisition date which was 5th January 2017.  Raffles Country Club is the second country club to be acquired by the Singapore Government for the 350km-long HSR project. Jurong Country Club in Jurong East has also been acquired as it  will become the Singapore terminus for the HSR.

Of course, for the HSR to proceed, we would also need to see what’s happening in Malaysia right. Not too long ago, the land along the HSR line can no longer be transacted, as per MYHSR. Read here:
MYHSR Corp: Freeze! Can’t sell

Besides that, there are many join stuffs by both countries too.

High Speed Rail KL – Singapore. MOU ended, Agreement signed. 🙂

Of course, the most recent news that has started to gain a bit more attention would be between Bangkok and KL. Yes, another High Speed rail project which will eventually link
 Bangkok all the way to Singapore.
So, are you excited yet? Well, the date when it will actually start is still pretty far away. That’s 2026. For now, just enjoy shopping loh. Shopping can be for anything okay, need not just for clothes or handbags. Haha. Cheers.

written on 6 Jan 2017

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HSR KL – SG: Win-Win, Joint Statement soon.

Remember the saga of High Speed Rail KL – SG (HSR)? My views much earlier:
Focus on the new demand, not just the existing. That’s the key to HSR’s attractiveness.
 There’s no need to think too much on the negative side for now. Both of them (the men) were smiling. Take a look at the image.  Frankly, if the meeting was merely to say, ‘I want to cancel but don’t charge me (Malaysia side) or If you dare to cancel or postpone, I will have to charge you (Singapore side), these two ministers surely cannot be smiling for the camera. Okay, perhaps the smile happened before the start of the meeting? Haha. Anyway, the photo is from the Facebook post of Singapore’s Coordinating Minister for Infrastructure and Minister for Transport Khaw Boon Wan for the KL-Singapore HSR project. I think he (Khaw) had posted a photo reflecting the situation after the meeting.

This was what was reported in
Straits Times SG: Joint Singapore-Malaysia decisions on HSR and RTS link to come soon: Khaw Boon Wan
.
Singapore’s Minister for Transport Khaw Boon Wan said that Malaysia and Singapore are likely to come to decisions on both the KL-SG HSR and the JB-SG Rapid Transit System (RTS) soon. He further shared that both he and Economic Affairs Minister Azmin Ali were “brainstorming ideas on how to further our bilateral relationship”. He added, “We should be able to announce our joint decisions on RTS and HSR soon.”
Reported in TheStar.com.my: Closer to win-win,

Azmin tweeted this, “We are inching closer towards a win-win deal on HSR, thanks to the hardwork of officials from both sides.”  Perhaps even more positive would be remarks in an article in NST which is said to be from Khaw. He wrote, “Always delightful meeting Minister Azmin Ali, brainstorming ideas on how to further our bilateral relationship. There is so much we can do together, for mutual benefits. He is an inspiring leader.”
Here’s that NST article.

I think beyond the meetings and the smiles, it’s about time that the joint statement comes in the near future. No timelines were stated but if they say soon, surely it should be in September and not in January 2019. It’s not going to help both countries if the uncertainties persist without clear information. Google about this issue and we will all agree that it’s usually confusion or negative. Yes – No – Maybe – Yes – No and Maybe. Sigh… If I am a foreign investor, it will not just affect my investment decision along the HSR Line. It will affect my decision on any investment into Malaysia and Singapore because previously, the HSR KL – SG was touted by both countries as another economic catalyst. Happy following.

written on 30 Aug 2018

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HSR KL – SG is changed? (not officially mentioned by any minister yet). What has happened?

News about HSR KL – SG

This was reported in an
Article in stratistimes.com
.  In the article which it has referred to an article in The Malaysian Insight (TMI), the following were some of the important latest updates. Malaysia is said to be continuing the High Speed Rail (HSR) without Singapore. Nevertheless, a Singapore Ministry of Transport has commented this, “As communicated in the Dec 2 joint statement by both prime ministers, we will announce further details on the HSR project through a joint statement in due course.”

TMI reported that Malaysia had asked to build a HSR station at the Kuala Lumpur International Airport, which Singapore had rejected, with the source claiming that the Republic perceived this as a threat to its aviation industry. The new targeted targeted completion date for the HSR is 2029, while the number of expected passengers has been revised downwards to 4.2 million from 8.4 million previously.  Please do read more details in the article here:
Article in stratistimes.com
.

If you like to read the article in TMI, it is here.
 Just need to make sure you are already a subscriber yeah.

Conclusion

We still have no formal announcements or in this case, supposed to be a joint statement by both countries and this is supposed to be announced before end of 2020. Thus, whatever is being reported needed to be treated as unconfirmed news. While that link to KLIA was mentioned as one of the show stopper, I think there are definitely more reasons too. As for now, just note that if this does not proceed, Malaysia would need to pay a compensation of S$104.67 (RM317 million) to Singapore for the all the work done thus far.

I just hope both countries can look at this as a long term project for the benefit of both countries even if analysts have said that one country stands to benefit more. While Singapore’s Changi airport is the busiest here in ASEAN, the HSR will be a game changer because China has continued to pursue the Belt and Road Initiative (BRI) and this is said to already cover the routes from China until Thailand. Just have to wait for the formal joint announcement?

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High Speed Rail KL – Singapore, missing the deadline.

Actually this was already rumoured or reported earlier but today, in Singapore’s Business Times, it was reported again. Instead of the planned 2020, it will now be delayed by 2 years to 2022. Again, it cited ‘unnamed sources’ for its reports. The reason for this is because there are way too many unresolved issues for it to be fast-tracked. It also said that the engineering, procurement and construction (EPC) contract for the project may be awarded on a negotiated basis though this has yet to be confirmed. This high speed rail (HSR) was supposed to shorten the travelling time from up to eight hours to 90 minutes.

It was also just reported recently that MyHSR Corp Sdn Bhd which is tasked with the project has just been approved by the cabinet. This also explains another reason for the delay. How fast can a newly approved company start its work. Construction is expected to start in 2016. There are seven stations identified thus far. They are Kuala Lumpur, Putrajaya, Seremban, Ayer Keroh, Muar, Batu Pahat and Nusajaya. Of course before everyone starts buying because of this reason, please wait for the signing of the track between both countries. Nothing is certain and anything can still happen. Do note all the recent online news for what I meant.

Actually two years is not considered a long delay for such a project. With its scale and the fact that this is the first time for two countries to agree on all the terms so that both can benefit as much as possible, I think this is worth the time. Let’s not assume that everything is fine just because both Prime Ministers seem to have a cordial working relationship currently. When it comes to national interests, I think both would still have to be firm. Overall cost is also huge and I think for Malaysia, one major concern would be to control its budget deficit. If the budget deficit is prolonged and continuous, do rest assured that the ratings downgrades are really coming. One, Fitch Ratings has already informed that it is putting Malaysia under its negative watch and the potential for downgrade is 50% or higher.

On a personal note, please do not buy Iskandar simply because of this HSR. If the sole reason is only due to HSR, then you should be ready to be very accurate and quick to take action because as soon as everyone starts buying for the same reason, you better be ready to sell. HSR should at best be one major reason for buying. All other developments both commercial as well as infrastructure should be as major if not more major than this HSR. Be reminded that if none of these supportive industries are happening, whether there is HSR or not, it is very risky to buy. Happy reading or buying.

written on 27 Apr 2015

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HSR: KL – Singapore, 7 stops in Malaysia, buy, buy and buy now?

The 7 stops in Malaysia includes Kuala Lumpur, Putrajaya, Seremban, Ayer Keroh, Muar, Batu Pahat and Nusajaya. This has been confirmed by Malaysia’s Land Public Transport  Chairman, Syed Hamid Albar. As written earlier, the meetings were as frequent as monthly. Constrcution could even begin within 2015. Possibly as soon as third quarter of next year! Malaysia has completed its feasibility study and this has been shared with Singapore and is now waiting for Singapore’s own feasibility study for the 320km – 340km rail. International tender will be called next year and a few countries including Japan and China has expressed interest in delivering the project. I think the possibility of China taking the project is going to be high due to a host of reasons but we shall see. I prefer an Asian partner to do it. Sorry, Europeans….

The question on everyone’s mind is, ‘buy, buy, buy’ in all the 7 stops? Wait a minute. Do you know anything about Ayer Keroh or Batu Pahat? I thought some said Putrajaya is a dead city at night? Come on, even with this train, it’s not going to just stop in Putrajaya at night, ok? So, even with a stop, it will be almost the same. I have just been to Putrajaya and I like the overall environment, the buildings, the roads, the lakes and even the mall. However, to buy Putrajaya because of a high speed rail stop? Please think again. To me, without more details or more readings, my concentration would only be for Kuala Lumpur beginning stop and the Nusajaya final Malaysian stop. We shall see in a few more months when more details are out and how the developers would start planning their property developments around the stops.

There were many questions as to how much benefit would Malaysia get for this high speed rail versus Singapore. It was said that Singapore would ultimately benefit more. Today, when 100,000 Malaysians cross the link into Singapore for work, do you think Malaysia benefit more or Singapore benefits more? Without working in Singapore, these 100,000 Malaysians would earn a salary which is 2.6 times lower (currency basis) if they work in Malaysia. However, without these Malaysians working in Singapore, what do you think would happen to many of the industries, shops and retail outlets in Singapore? I did not say majority. I said many. So, do you think we should close the first link and the second link then? Haha. To me, as long as it benefits both parties, who are we to argue that the benefit is 50:50.

Sometimes, it’s funny when you read all the comments. Yet, you learn more about what some of these analysts think which is good. Just remember to read more than enough so that you know more than enough and is able to think a little bit more objectively. Please do not simply buy but to anyone who still say that this HSR is not happening, you may continue investing in other things. Nothing to lose anyway. 🙂

written on 25 Oct 2014

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HSR KL – Singapore. To be continued if no government funds needed.

HSR KL – SG is needed. Period.

Everyday, 300,000 people travel between JB and Singapore. KL – SG flight route is the busiest in the world. Malaysia and Singapore are the two countries which when 1+1 is equal to 3. Integration always start from connectivity. Economic growth always come from closer integration and connectivity. No trade routes, no growth. So, it is a foregone conclusion that HSR KL – SG is definitely needed.

Article in nst.com.my
   Transport Minister Anthony Loke Siew Fook says that the revival of the Kuala Lumpur-Singapore High Speed Rail (HSR) project will be discussed again if it involves private investment. He said the ministry had received permission from Prime Minister Datuk Seri Anwar Ibrahim to negotiate the revival of the project as long as it did not involve government funding.

He said, “We are open to any proposal as long as it involves private investment. Currently, no specific proposal has been accepted.”

He added, “No timeline for this, because you know the bilateral agreement between Malaysia and Singapore has been terminated by the previous government. Right now there is no urgency in terms of reaching any milestones.

“We are open to a completely new funding mechanism and implementation model,” he told reporters at Invest Malaysia 2023 conference here today.  Please refer to full article here:
Article in nst.com.my

When 1 + 1 = 3 yeah. MY + SG = best proposition to any MNC with ASEAN and ASIA in focus

When WE (Malaysia and Singapore) pitch to the world to come and set up operations here, we tell them we have the best of both worlds. They have access to talents from two markets which would be linked an hour by flight or 90 minutes by High Speed Rail. Simple fact yeah. I do hope someone high up in the government understands this and do something about it. Perhaps the news that HSR KL – SG may come back if there are no government funds needed could be considered a small step forward. Cannot consider it as great news but at least it is not a firm No.

All the best till th next positive news.

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High Speed Rail KL – Singapore. MOU ended, Agreement signed. :)

MOU is just a memorandum of understanding. Only this afternoon during lunch, one colleague said, ‘The signing of the High Speed Rail (HSR) between Malaysia and Singapore happening today.’ Another colleague asked, ‘Only signed today? I thought signed long time ago?’ I think we need to be very clear. Typically, for any venture to start, like the HSR, both parties would normally start with a Memorandum of Understanding. This is just to ensure that discussions can start properly. Discussions or even negotiations and other stuffs such as who pays for what would then be negotiated HARD, hopefully and once all these are finalised, then they agree on a date to sign an agreement. Just like when we buy a house, paying just the earnest deposit simply meant we are determined to proceed but it is only signing the Sale and Purchase Agreement that our purchase is formalised. Yes, I did explain this to my colleague who replied, ‘whatever.’ Haha. Ok… whatever.

Anyway, reported in many media was about the historic agreement signed between Malaysia and Singapore for the HSR which should be
 operational by 2026. (Yes, still 10 years away if everything goes according to plan.
The distance between KL – Singapore for this HSR is
350-km and it will help to reduce the travelling time to just 90 minutes. Yes, in fact faster than taking a flight. Easily half the time needed for a flight including all the transit times. It will have six transit stations in Putrajaya, Seremban, Ayer Keroh, Muar, Batu Pahat and Iskandar Puteri. It will help to enhance business ties and people to people movements. Hey, we are about to get closer. It was signed during ‘The Annual Leaders’ Retreat’ and both parties discussed on bilateral issues of mutual concern and reviewed progress of existing bilateral cooperation and building on the momentum of discussion held and initiatives agreed during the 2015 Leaders’ Retreat. In 2015, Singapore was Malaysia’s second largest trading partner globally. Last year, total trade between the two countries was recorded at US$59.5 billion (RM190.6 billion). In fact, when we combine both,
we may become a mega-city

Are you excited yet? I am supportive. In terms of excitement, I think we can reserve to when we know which country would be the technical delivery partner. Yes, I personally have a guess on which two countries have a better chance. I know, everyone would tell me there’s just one country which will win but do note that unless the agreement is signed, no one knows. The tender has to be called first. It would also be a JOINT decision. Remember all those country to country relationships that we read in all the international news. Yes, it plays an important part too. The construction time is said to be 5 years. In other words, perhaps there are still a lot more areas to cover till then. Please do not buy any homes simple because they are along the HSR route. Buy to stay is okay. Cheers.

written on 13 Dec 2016

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Updates:  HSR meeting with SG, SST’s percentage and the RM43 billion Melaka Gateway

Finance Minister Lim Guan Eng announced today that the the reintroduction of the Sales and Services Tax (SST) will see its rate set at 10% for sales and 6% for services. It should be passed in Parliament next month. He also said that the SST was expected to bring in revenue of RM4 billion while it expects to lose RM21 billion in revenue this year after zero-rating the GST on June 1. The government would however have an additional RM14.4 billion of revenues from reintroduction of the SST, rising crude oil prices and extra dividends from government-linked companies. Besides these, Lim added that the finance ministry had identified RM10 billion worth of expenditure saving measures including downsizing and abolishing overlapping and non-urgent programmes.
Here’s that article in full in FreeMalaysiaToday.com

(Personally, based on all the current articles on SST and how it will be functioning, my preference is still for GST. However, I am willing to wait and see how it works for the next 12 months before writing against it)

We already know earlier that Singapore has yet to be formally informed about the HSR KL – SG’s potential cancellation by Malaysia. Here’s that article:
HSR’s RM864 million expenditure by Singaporean side by Dec 2018
  However we have also received confirmation from Finance Minister Lim Guan Eng that the HSR KL – SG will continue should the costs could be pushed down significantly. Here’s that earlier article:
HSR KL – SG could be continued but only if …

Today, we learnt from the media that Malaysia will send an official representative to Singapore to discuss the High-Speed Rail project by the end of the month. This was announced by Economic Affairs Minister Datuk Seri Mohamed Azmin Ali. He said, “I’m in the communication with our Singaporean counterpart. Last week, I was briefed by our Attorney-General and presented the case (to the Cabinet) on Wednesday. We will meet with my counterpart in Singapore soon and will discuss the details.”
Full article in MalayMail.com here.
 (Seriously, let’s not delay this discussion. Singapore’s just next door and it’s best to work together since both of us are smaller countries than all the other neighbours.)

In 2014, Melaka Gateway was launched. This was an earlier article 3 years ago:
Melaka Gateway and RM43 billion China investment

Today, we understood from the chief executive officer and founder of Melaka Gateway Datuk Michelle Ong that they are meeting key government authorities to provide them with the latest updates. The meeting with the authorities will among others include the Transport Ministry as well as port regulator Port Klang Authority (PKA). Datuk Michelle said, “We are continuing our engagements with key stakeholders such as meeting the Chief Minister of Melaka and the Council of Eminent Persons (CEP).” She added this very important point too. “As a privately funded project, both the state and Federal government did not need to inject a single cent into the development nor provide us with any form of guarantees.”
Well, here’s that full article in NST for everyone’s reading.
 (Yes, I continue to believe in the Melaka growth story. Well, nothing much for its airport but do drive there to understand that it has really grown a lot compared to 5 or even 10 years ago. Not everything is worth investing yeah. Please do due diligence)

Happy getting updated.

written on 16 July 2018

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HSR’s RM864 million expenditure by Singaporean side by Dec 2018.

This was an earlier article on High Speed Rail KL – SG when it was first announced that it should be scrapped. (HSR)
Scrapping the High-Speed Rail: It’s not beneficial.’

It was then reported by many media that if it’s cancelled, then Malaysia would have to pay compensation as per the agreement for HSR between Malaysia and Singapore. Then, recently, there was another one on an alternative plan to the HSR. A much cheaper alternative at the expense of time. Please refer to the article here:
40 minutes extra, RM50 billion lower. Alternative HSR plan. Viable?

What’s not highlighted was Singapore’s response to the potential cancellation. The main reason that Singapore has not responded formally to this announcement because it has not received a formal response from Malaysia on the HSR cancellation.

According to Singapore’s Transport Minister, a diplomatic note was sent to
Malaysia on June 1 “to seek immediate clarification on Malaysia’s position”. He added
that public statements made by the Malaysian Ministers, and Prime Minister Dr Mahathir Mohamad – through various press interviews – on the termination of the project “have not been followed through with any official communication to us”.
Full article in businesstimes.com.sg here.
 He also shared in the Singapore Parliament that Singapore has already spent S$250m (RM745 million) on HSR project and by December, the total would be S$290 million (RM864 million)   exceeded S$250 million”.  Mr Khaw said the expenditure included land acquisition, setting up of an infrastructure company – SG HSR Pte Ltd – and the formation of a team of more than 100 specialists in the company “to build, own, fund and maintain the HSR civil infrastructure in Singapore”.

He also pointed out, “Because the costs that we have incurred will add to the total amount of compensation, it is in Malaysia’s own interest to officially inform us of its position on the HSR Project early, to minimise the amounts involved.” Singapore’s Foreign Minister Vivian Balakrishnan also told the House that if Malaysia were to terminate the HSR project, Singapore will deal with the question of compensation from for costs incurred in accordance with the binding agreement signed with Malaysia and international law. He said, “The Singapore government has a duty to safeguard public funds by recovering these costs.”  He also said that he has highlighted this consideration to Malaysian Economic Affairs Minister Dato’ Seri Mohd Azmin Ali “when he called me on June 6”.
Please do refer to this article in businesstimes.com.sg for full details of all the facts numbers quoted by both the ministers.
 Will continue following.

written on 9 July 2018

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Focus on the new demand, not just the existing. That’s the key to HSR’s attractiveness.

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HTAR: Daily admissions for Covid-19 patients down 50% versus the week before.

Good news, not many people share. Bad news, the whole world knows. It’s okay, let me share a good news for Selangor / KL. Whoever that new PIC is for the National Vaccination programme will be the one reaping the rewards of all the effort from our ex-coordinating minister for National COVID-19 Immunisation Programme. Thank you for a good job YB Khairy Jamaluddin.

Now, we start to see the light at the end of the tunnel. Not bright enough yet but yes, that sense that there’s a light at that far end of the tunnel. This is nowhere near the end though. No one is safe until everyone is safe or vaccinated in this case. Soon, we would have to move to the 12-17 year olds and perhaps in the next stage would be the younger ones too.

Article in malaymail.com
 “Admission of Covid-19 patients to Klang’s HTAR down by over 50pc, says director.”   HTAR director Dr Zulkarnain Mohd Rawi said that the number of daily admissions of Covid-19 patients for treatment at Tengku Ampuan Rahimah Hospital (HTAR), Klang has dropped by over 50 per cent since last week.

He said, “The number of Covid-19 patients at this hospital has dropped from over 1,000 at the height of the infection last July. As of 1pm today, the number of such patients is less than 900. The patient admission bubble at HTAR occurred in July until the middle of that month.”

“Alhamdulillah, the number of admissions (of patients) has decreased since last week. This situation indirectly has resulted in a drop in the number of patients in category three and above.” Please do refer to the full news here:
Article in malaymail.com

Vaccination coverage is the main reason, it’s not just Malaysia by the way

It could not happen overnight but once vaccinations start to reach a critical stage, for example, 40% or higher, then we will start to see good signs. Just look at Sarawak, Putrajaya and Labuan. Sarawak’s cases are very high but the total hospitalisations and ICU patients have dropped tremendously versus the times when vaccinations were low.

YES, I REPEAT, those people who spread news about ‘wind injections’ should apologize for spreading rumours. This lower hospitalisation and ICU numbers have happened in many European nations (with high vaccinations) and even the UK too. So, this is definitely the right way to go. The only issue is to ensure we continue to have enough doses because it does seem that not much has been said about arrival of more Covid-19 vaccination doses in September.

Image below:

Source:
https://codeblue.galencentre.org/2021/08/16/why-sarawak-cant-celebrate-low-covid-19-hospital-admissions-yet/

Keep it up and let’s have a more normal life very soon.

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The location less loved by many, perhaps.

Middle Ring Road 2 (MRR2) is a very long road. According to Wiki, it’s 65km long. Consisting of many other expressways all along and connecting to each other etc. Basically, it’s convenient if you are staying somewhere along the roads as you will be quickly connected to all other roads and expressways. Recently, one piece of news which caught my attention is that of Hua Yang purchasing a 8.09 acres of leasehold land along the MRR2 to build a high-rise MIXED development with an estimated gross development value of RM800 million. The area was announced as north of Selayang. Many would lose interest since it is Selayang. Haha. Hua Yang is not considered a huge developer, not yet anyway and they are mostly focussed on affordable units rather than high-end which I think should be the way moving forward. Malaysians just could not afford to pay ever higher for ever smaller properties in the usual popular hotspots. Greater KL is not just that few spots yeah, be reminded.

It is a sure thing, if prices are the same, I would choose Desa Parkcity over Selayang. I would also choose Kelana Jaya over Damansara Damai. In fact I would choose Mont Kiara over Sungai Buloh, anytime. Note, if the prices are the same. However, once there are prices differences, it is important for decisions to be based on what you need and not what others have determined for you. If you think location, then try to translate it into duration instead. Just look at the popular Cheras, yes, it’s nearby KL city centre and nearly everyone would tell you that but when we compare duration, is it really that advantageous? If jams are categorised on heavy, so-so and sometimes, then for Cheras and surrounding, it’s almost always under ‘heavy’. So, unless we have way too much cash, stretch that location thought into duration as well.

Thus, I think this maybe the right property for many first-time home buyers. For first-time home buyers, especially with some budget limitations, the good news is that 2015 is a year of affordability. Due to the current market sentiment, it is almost a certainty that no developers would want to go on a suicide mission by selling above what the majority could afford.The bad news remain that perception is a tough thing to get rid off. Certain areas which we would never consider. Certain areas which family and friends said is considered backwater etc. Or even those who can afford just RM600,000 but kept on thinking about landed properties and willing to buy either way too far or way too small just to keep to the mindset of landed is better. The only real ‘better’ would be that you have a property which meets majority of our expectations, not keep trying to save for some for which we can never afford.

Happy searching.

written on 31 Jan 2015

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Hua Yang ended 2016 with RM110.1 million profit (19%)

I own some units of
Hua Yang
 shares bought last year during Chinese New Year period. Prices today is still below what I bought previously. Haha. It’s okay, I intend to keep it to enjoy a local holiday perhaps next year. Hopefully my wish comes true. I think 2016 is a good year for Hua Yang Berhad considering the current property market situation. It closed its 2016 financial year (FY2016) with a profit after tax (PAT) of RM110.1 million versus RM110.6 million recorded in FY2015. Revenue for 2016 came in at RM575.7 million compared with RM583.6 million in 2015. This gave it a
healthy 19 percent profit margin.

It’s total  unbilled sales at the end of Q1 2016 stood at RM463.4 million. Net assets per share as at 31 March 2016 is at RM2.05 versus RM1.76 previous year. The earnings per share (EPS) for FY2016 is 41.71 sen. The board has also approved a proposal to undertake a bonus issue of 88,000,000 new ordinary shares of RM1 each in Hua Yang on the basis of one bonus share for every three existing Hua Yang shares. The biggest contributors to its results was Klang Valley (46 percent), Johor (32 percent), Perak (21 percent) and Negeri Sembilan (1 percent). Total undeveloped land bank of
Hua Yang

stood at 530 acres with a potential Gross Development Value of RM3.8 billion.

It’s Chief Executive Officer, Ho Wen Yan said, “We expect demand for the affordable homes segment, especially those that cater to the
middle-income and first-time home buyers
, to continue growing moving forward. Based on this, and together with our recent and soon-to-be-launched product offerings in the affordable homes segment, we are cautiously optimistic of achieving positive results in our 2017 financial year.” I think I will just look at the words, “cautiously optimistic” and believe him. Time to buy their stocks? I have no idea. Oh yeah, their motto is pretty real as well. It says, “Your Dreams, Made Affordable.” Nope, I have not bought any properties from them before. No chance yet I guess. Recent project? Zeta Residence. Take a look at the image. Happy following.

written on 16 June 2016

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Hua Yang’s FY15 net profit margin at 18.95%

Reported in a local English daily. Latest results from a medium sized developer showed that the net margin remains healthy thus far. Hua Yang reported an increase in net profit from RM82.2 million a year ago to RM110.6 million for the financial year ended March 31, 2015 (FY15). Revenue was also up by 14.5% to RM583.6 million from RM509.9 million a year ago. Earnings per share reached 41.88 sen. Total net margin is thus 18.95%. This is actually higher than the recently released results for SP Setia. Read here:
First 6 months, SP Setia’s net profit margin at 12.83%

Quite a good number and proves that building more affordable homes compared to the more luxurious ones does not mean lower margins. : )

Hua Yang’s CEO Ho Wen Yan also said that the property market for second half of 2015 should recover after the current slowdown for first half which was due to the GST impact as well as tightening measures by Bank Negara Malaysia. Sentiment will improve when the actual effects from these measures becomes clearer. Their next project would be Mines South which is located opposite The Mines Shopping Centre. Total units 568 and gross development value is RM262 million. Dear everyone, another affordable project. Currently, Hua Yang’s landbank stands at 492 acres with a GDV of RM3.3 billion. The majority of its land are in Johor and Ipoh, Perak. It also has land in the Klang Valley and mainland Penang. There are no overseas plans thus far.

I seriously believe that for many years to come, affordable is the way to go. My personal belief is that no matter how established an area is, there is no way that i can go higher than what many Malaysians can afford, even if the property is in Klang Valley. You can choose not to believe me but do note that searching for more affordable new launches are far easier than 2012 or before.  In fact, if you do read latest articles about some of the focus areas in theedgeproperty, it is clear that secondary properties remain ‘underpriced’ compared to the newly completed ones. Perhaps it’s the stigma of old properties that is holding everyone back. Or perhaps no one really bothered to look and view more. Focus on having a home to call your own. Current times may be a good time indeed.

written on 9 July 2015

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Hua Yang: Manageable land cost, healthy gross margin.

If a developer tells you that any land purchase it made will be below 20% of the total gross development value (GDV) and that its gross margin is over 30%, would you buy its shares? I did not but many did. Perhaps I should just buy one thousand unit and keep as ‘fixed deposit.’ Hua Yang’s chief executive officer Ho Wen Yan said that even though there were some concerns about its purchase of a piece of Bukit Mertajam land, the purchase remains within their expectations of a lower than 20% versus GDV and gross margin remain above 30%. Hua Yang has 11 ongoing projects in Klang Valley, Johor, Perak and Negeri Sembilan. It’s project in Perak is in Iskandar and if one is looking at rental to students, it is worth a second look. I do not personally own a unit currently. The GDV for it’s Penang foray is RM313.5 million. It consists of serviced apartments, commercial shoplots as well as a condominium block.

It had recently bought a piece of land in Selayang too, another area which I think will continue to grow as it is definitely not considered a premium hotspot yet. Read here:
The location less loved by many, perhaps.

Note, when an area is not yet considered a hotspot, the best action would always be to buy for own stay. If you intend to buy for investment, there are many other choices too, not just these cheaper areas. Oh yeah, since it is Selayang, the prices should be within the affordable category. I term affordable as anything below RM500,000, irregardless of size. Digress a little. If you stay there and your wife is pregnant, you can also go to Selayang hospital’s Full Paying Patient wing. For half or less than half of the usual delivery cost, you get the usual personalised doctor just like the usual private hospitals too. Yes, you can choose the doctor too. I stay a little too far for this. Read here if you really do have a pregnant wife and wants to consider:
FPP Scheme, personal experience.

Oh yeah, last but not least, before you buy their stocks do note that their net gearing is considered on the high side. According to Kenanga Research, it will reach up to 0.84 times and will still be at 0.7 times by end 2016. Gearing meant the level of debts for the company versus it’s equity capital. Very briefly, the higher, the worse because it meant the level of debt is very high. Note though that if you are buying property developer’s stocks, you also do not want the gearing too be very low because it may also meant that the developer is just not having enough projects or not aggressive enough. For any development to happen, land acquisition has to be done well in advance. Thus, the gearing would normally go up. The sales numbers are also not yet profits until the very end because they have to continue paying for the construction stage till completion.

So, what’s the decision? Buy their project or buy their shares instead? I think buying 1,000 unit seem like an easier option for me. Perhaps have to hold for some time under current market condition. Happy deciding.

written on 25 Feb 2015

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Hua Yang terminated Penang land buy, still loves Penang

Many years ago, I heard a story from an agent friend that the land prices in Penang increased suddenly when the KL based developers started to focus on Penang. The prices offered by Penang based developers and KL based developers showed such a huge gulf that suddenly many developers woke up and quickly try to secure more lands before even more ‘invasion’ from these land hungry KL developers. I think due to the size of the lands, China based developers still do not see Penang as big enough for them compared to Iskandar or KL. For many mid-tier developers, Penang represents an opportunity for future growth. One of the developer is Hua Yang.

It has recently announced that it has aborted a land deal to acquire two parcels of freehold land in Bukit Mertajam, Penang measuring 3.14 acres. This is the second deal that they are terminating after an earlier termination of a piece of 8.09 acres in Selayang. Read here:
I lost a Selayang opportunity by Hua Yang

In case some readers are wondering why I try to follow Hua Yang, well, a few years ago, two of their marketing managers told me this, ‘the management wants marketing department to use ONLINE instead of print media. They believe it’s better and more cost efficient too.’ That’s when I follow news from Hua Yang. I think their management have a good foresight OR they are just trying to manage costs. Haha. Both ways are fine.

According to
StarBizWeek
, Hua Yang’s chief executive officer Ho Wen Yan (
pic
) said, “Our current landbank stands at 468 acres with an estimated gross development value (GDV) of RM3.36bil. Any potential acquisitions must meet the criteria set by the company and must be able to deliver tangible value to our shareholders in a long-term and sustainable manner.” Kenanga Research said that Hua Yang’s management has indicated that Penang mainland is one of its preferred choices. It expects Hua Yang’s gearing to stay at 0.6 times levels in FY16 as Hua Yang looks for another piece of land similar to the aborted Selayang land deal. Most of Hua Yang’s remaining landbank was in Puchong West, Selangor and Bandar Universiti Seri Iskandar, Perak.The remaining GDVs are RM1.35bil and RM850.5mil respectively.

Based on the latest numbers, Hua Yang is one of the cheapest property developer stocks on the Bursa Malaysia. It is only trading at 4.12 times of FY2015 and this is actually less than half of the valuations forEco WorldDevelopment Group Bhd, at 11.5 times. Gross yield based on current share price is 7.1%. Dear all, this is VERY high though the current slowdown may also affect some of its financial results. Yes, I currently own some Hua Yang stocks which I have bought since beginning of 2015. Hopefully by the end of the next financial year, it can give me some decent dividends to treat my whole family to a seafood dinner. All the best to me and Hua Yang too.

written on 2 Dec 2015

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Huan choo leng – what’s that?

Look at the photo. For those who know what it is, congratulations. You have tasted something much nicer than the typical pau. For those who has yet to, quickly show this photo to your pau vendor and buy one. If you pau vendor does not have one, time to look for a new one. 🙂  Just kidding. The name however may be different for many people. The name I stated is for those who buy in Sitiawan, my father’s hometown. It is still the biggest in terms of size and the cheapest in terms of price even till today compared to Ipoh and also Penang. In terms of taste, it is so hard to be objective because you have tasted the Sitiawan first. Haha. However, I think majority of all the pau vendors who is selling this are quite good.

There is however one which Sitiawan beats all, the fried ground nut one instead of the usual ‘tau sa’. It is very delicious and I can easily finish three in a few minutes. After writing this article, I feel hungry yet again and will eat another one. Huan Choo Leng, anyone? Oops, how come I did not mention about kopi? Ah, yes, if you eat Huan Choo Leng with a glass of Kopi O, that would be the greatest pleasure in life. I ate mine with Classno Instant Coffee, considered oklar, perhaps 8.5/10.

Remember, go try one asap and comment.

written on 4 jan 2014.

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Hua Yang: Revenues are up, profits too.

Another good news from a not so good property market. We should keep noting all these because there are always developers whose products are somehow less affected or even still doing fine. Hua Yang’s pre- tax profit for the second quarter ended Sept 30, 2015 has increased to RM38.2 million versus RM35.2 million in the same period last year. Revenue rose from RM139.5 million to RM150.6 million too. This gives it a margin of 25 percent which is considered healthy. The fact that revenue is increasing is already a very good result especially when there are so many unsold units since last year. Read here:
More below RM500k units but unsold units at 78 percent

One major reason for this improved performance according to its Chief Executive Officer Ho Wen Yan was  because of their focus on quality and affordable homes while at the same time managing their development cost in effective and efficient manner. Hua Yang added that it still has a total undeveloped land bank of 471 acres (190.6 hectares) with a potential gross development value (GDV) of RM3.4 billion. For  the huge developers, this may seem small but I think for Hua Yang, this GDV number is enough as they continue to look for new landbanks. Their previous purchase of a piece of Selayang land was aborted. Read here:
I lost a Selayang opportunity by Hua Yang

Actually the current market is an opportunity to developers who are pricing their developments close to what the people see as good value. If the price is low but the product is deemed to be of lower standard, it will definitely affect the sales. Buyers should really buy objectively because slow times do not last forever. Read here:
How long can ‘good time’ lasts?

Having said that I seriously do think that there are still many developers who are very bullish about the market and are still launching so-called lifestyle products. Perhaps they could identify a target market which I am personally not aware of. Oh yeah, if you are happy with Hua Yang’s performance, you can also think of its stocks too. Happy deciding.

written on 26 Oct 2015

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Consolidation is good. Huge debts means high risks. (Always a balance)

I am a conservative person. (Nope, nothing to do with wearing something less sexy etc. Haha) Conservative with my views about money. If I can afford a RM100k car, I would think for a very long time, evaluate all cars and then buy a RM80,000 car instead. I think my parents gave me this kind of ‘training’ since young. Same applies to buying a home. The home in Penang? RM123k even though my wife and I agreed that the budget would be up to RM200k. (15 years ago lah). The condo which I upgraded to from my first apartment in Penang? We were ready to sell my first apartment if we really could not afford the second one. Yes, the calculations after calculations took 2 months. Here’s that story:
My first condo buy – Regency Heights

Anyway, rather than looking at it as a sign that I would never become a billionaire in another 100 years,I prefer to look at it positively. I should be able to provide enough for my kids to complete their studies. Then, my wife and I can have vacations. Not too bad lah.
Retire in hometowns and working in KL today

When I buy shares in listed companies, I would only look at those with minimal debts instead of those which has growing debts year after year. That’s why I really dislike online companies which is still not profitable after 8 years?
Internet stocks? However high, watch for profitability first

Personal preference lah, no need to debate whether more debts also mean higher growth probability… There’s one company which is also trying to reduce its debts so that it can strengthen its balance sheet for potential future deployment of those resources into identified projects and investments. Here’s the full article about E&O Berhad.
TheStar: E&O sells Lone Pine Hotel
 Lone Pine Hotel is a very nice hotel. It fronts the beach and the cost to stay per night? I would say not too bad actually. Do refer to image. As per E&O’s announcement to Bursa Malaysia, the buyer is duty-free goods trader Langkawi Saga Shopping Centre Sdn Bhd and liquor and cigarette wholesaler Lubritrade Trading Pte Ltd. (Langkawi Saga, I have shopped there many times before. Wow.. cash-rich company)

Coming back to the thought that more debts may mean the company is aggressively growing and thus potentially the capital appreciation in terms of share price should be higher. Potentially, true. However, if the company has cash in hand, it also meant that the company can take advantage of potential deals in the future. This is especially when the
market is slow and everyone wants to sell.
Anyway, not all business deals would use the cash reserves. Even for companies with lots of cash in hand, it may still choose to take up debts instead because the cost of debts is still not that high actually. Especially when compared to the potential returns. Low returns? Use cash reserves lah. Happy staying at Lone Pine Hotel or buying shares that you love ok. Cheers.

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written on 17 June 2017

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Huge interest with KL – SG High Speed Rail. Good sign.

Okay, it will be 2026 before the high speed rail (HSR) Kuala Lumpur – Singapore (KL-SG HSR) is completed. This is assuming everything goes as per plan. Yes, there were some comments from the Chinese companies that if they are the ones building it, then the time needed can be shortened. That’s later perhaps since we do not know yet know who would win or who is bidding. Interested parties however was in full force during the industry briefing for the KL-SG HSR project conducted today.
Full article in TheStar here.
A total of 165 international and local companies came for the briefing by Malaysia’s MyHSR Corporation Sdn Bhd (MyHSR)  and the Land Transport Authority of Singapore (LTA). These participants include suppliers and integrators of rolling stock and systems, network operators, engineering and legal consultants, financiers and investors, operators as well as construction companies.

LTA Chief Executive, Ngien Hoon Ping said, “We are pleased with the strong interest from companies all over the world for the Industry Briefing and to take the opportunity to reaffirm both the governments’ strong commitment to make this project a success.”  MyHSR chief executive officer Mohd Nur Ismal Mohamed Kamal said “The project will be implemented in phases.This current phase focuses on the AssetsCo tender. Other tenders such as the Civil and Operating Company (OpCo) will be developed according to the project timeline and an announcements will be made in due course.” In brief, The KL-SG HSR will open with eight stations, namely Bandar Malaysia, Putrajaya, Seremban, Melaka, Muar, Batu Pahat and Iskandar Puteri stations in Malaysia and the Jurong East station in Singapore. An earlier article about those stations here:
Benefits to cities along the line

Total length of the HSR is 350-kilometre and it will link KL – SG within 90 minutes. The commencement date is Dec 31, 2026. (It should be earlier, my personal belief, unless both countries have some political issues)

I just had a delicious dinner with a Hong Konger guest here in KL. He said he heard from many friends that Iskandar would have a huge oversupply. He also asked about the ‘bullet train.’ I told him that based on the current situation, it does seem like there’s an oversupply.
Is Iskandar getting better? Or worse? Media report

There’s a huge supply of newly completed units coming too.
Earlier article quoting CBRE-WTW here.
I told him that should the connectivity between Iskandar and Singapore becomes better, say a Rail Transit System is built somehow, then we can see the real potential of Iskandar as a place to stay and Singapore as a place of work. I am not talking about Malaysians. We are looking at some Singaporean families who may prefer condos with facilities instead of flats. As of now, there’s no way for this to happen because travelling during peak hours would be 2 hours. Nothing changes as at now but KL-SG HSR is a piece of good news. I have no property in Iskandar yet. Hopefully, I can save enough and the market can wait for me for a while. 🙂 Happy following.

written on 4 July 2017

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Huge salaries mean bigger commitments, that’s dangerous.

It’s sad to note that these days many are spending beyond their means. My parents belonged to a generation that believe savings would be the only thing that would provide a better future as well as for rainy days. When I was a young boy, we (my brother, my sister and I) were given ONE glass of iced Milo for sharing. Somehow, that glass of iced Milo seemed bigger then? Well, I belong to a generation who still believe saving is important but is also torn between material wants. Well, these days, looking at
the bankruptcy numbers

would reveal that savings matters little. It’s all about looking great today. Worrying about tomorrow should be saved for tomorrow. Just look at the sales number for cars here in Malaysia to
 understand what I meant.
Unfortunately, it’s not applicable ONLY to luxury cars. The sales of the more expensive cars are rising and if it’s true that Malaysian professionals are earning low salaries, then it meant that everyone is now stretching themselves to the limit? Here’s the
latest
numbers for car sales.

It’s dangerous when we do not earn enough for a living. It’s equally as dangerous to earn MORE but our commitments go up in-tandem. The reason is simple. Once we spend more, it’s harder to rein in the spending while our salary may change suddenly. For example when some economic boom has passed. One example of such a city would be Perth, Western Australia. After the mining boom has passed, the economy is now struggling.
Read the full article in news.com.au here.
 Within the article was the story of a project engineer who used to earn A$250,000 (RM811k) per year. After the mining boom has passed, he lost his job and is now working as a part-time security guard, struggling to dig himself out of a financial difficulty. He shared that when times were good, his loan applications were approved easily. It’s like ‘buying an ice-cream!’ (I still remember when many people were buying properties like buying vegetables during those booming years. Fortunately, getting a loan even then was not as easy as ABC or buying an ice-cream.)

If I earn A$250,000 per year one day in future (HIGHLY UNLIKELY), I will only spend 10% of it, A$25,000 (RM81k) and save as much as I could. This is because based on the history of economic ups and downs, good times do not last forever. Just look at the oil and gas industry, even when the whole world needs it. Many have lost their high paying jobs which is not likely to come back while other industries are unable to offer such pay. We can also look at the manufacturing sectors in many advanced nations which has become too expensive versus other lower-cost countries. These days,
smaller malls start to face closure pressure

and many retail organisations have already gone under. Just a reminder. When we earn high salaries but we have huge commitments, we are basically ‘gambling’ away our future. Let’s learn from all those around us and keep ourselves away from the debt hole.

written on 27 April 2017

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Huh? 128km bridge between Malacca and Dumai?

I am always for development. The more linkages that we can have with Singapore and Iskandar, the better. The bigger Penang airport, the better. The more world class universities opening in Malaysia, the better. The more private hospitals built, the better. However, a 148km bridge? It stopped me as I try to make sense of why is such a bridge needed. There were not a lot of arguments put forth for the bridge apart from the huge potential economic growth between the two ends of the bridge; Malacca and Dumai. Ok, let me say this first, IF the bridge can be built without using public funds, I am up for it. However, I feel the following must be answered first.

Funding. Who will fund it? Assuming Malacca really can build the 49km on its side but how would Dumai be able to afford the remaining 79km? The second Penang bridge costs RM4.5 Billion and is 24km. The toll has to be collected over a period of nothing less than 30 years. The Malacca-Dumai bridge toll alone may reach into RM100? I think it will be higher!

Tourism? I seriously and sincerely do not believe tourists would drive into Malacca from Dumai by the hundreds of thousands. In fact flights would be even better because it may be faster and more convenient not to mention cheaper with so many low-cost airlines competing against each other today.

Economic activity? Dumai residents to buy properties in Malacca and vice-versa? Oh yeah, there are just 16,000 population in Dumai. Majority of them live in villages. I am very sure they may want to do their shopping for branded goods in Malacca. 😛

Unless more concrete plans are put forth, I think it is best that Malacca think on expanding its airport and get more tourists to fly in and enjoy its UNESCO CITY status as well as thinking of ways to reduce the jams during holidays. Many may have been put off due to this. The last time I went to Malacca, it took me 5 hours to reach KL from Melaka!

Having said that, if indeed a bridge is built, and even if the toll is RM200, I would love to drive from Malacca into Dumai just for the experience. Come on, be honest, how many places in the world that you can drive over a real sea from one country to another? Perhaps seafood in Dumai is also cheap. Hey, that might be it. Buy enough seafood to save enough to cover the cost of the toll. Why not?

written on 15th Jan 2014

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When household brands start to show signs of stress.

This was a dessert chain which I spent RM35 for one big bowl of mango dessert a few years ago in Hong Kong. We went into the shop in Tsim Sha Tsui after walking for a while and feeling tired. My mistake was I asked my daughter what she wanted. She pointed to one attractive bowl of dessert with lots of mango pieces. Fortunately, that one bowl was shared by my wife and I too. My son is not a fan of fruits. This dessert chain is Hui Lau Shan. It is now being served a winding-up petition.

Article in South China Morning Post
   Creditor Kuen Kee Trading Company on Tuesday filed a petition to the High Court seeking to wind up Hui Lau Shan Holdings Company. On the same day, Bansque was also filing a separate legal action alleging the chain had not paid its rent for a Lam Tin store since last October, accumulating a debt of more than HK$195,000 (RM106,715).

Hui Lau Shan is fresh fruit dessert specialist with 260 stores worldwide since it was founded in the 1960s by Hui Chi-Yuk who was selling traditional herbal jelly and tea in trolleys before he opened the first store in Yuen Long and ventured into sweets and innovative snacks. Its later acquired by Royal Dynasty International Holding. There are more details in the
Article in South China Morning Post

I think it’s also very appropriate to understand that all businesses continue to face competition and not just challenges such as coronavirus, trade wars, never ending standoffs in the streets of Hong Kong for the last many months. Hui Lau Shan could have been an innovator but the truth is, there are now far more choices and ever more choices are continuously popping up too. This is not about Hui Lau Shan yeah, it could even be applicable to people too. Do we change and improve or do we allow others to catch up and soon overtake us?

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[Sponsored Review]

Inspecting our most expensive purchase properly and professionally. Hopefully it’s a property and not a car. 😊

One particular property inspection

A property is always the most expensive thing we would buy, unless of course we prefer to pay more for a car versus a house. I would prefer to pay more for a house than a car yeah. A property appreciates while a car depreciates as soon as drive it home from the showroom.

I still remember one particular unit my wife and I bought in Penang. Frankly, we did not really know what to look, where to look and even how to look for all the issues which we would need to write down into the inspection form so that the developer could then do any rectification work necessary. We did found some and we informed the developer whatever we found. We learnt much later that there was a lot more defects that we missed out but unable to claim from developer as we have already started renovation.

One time, during heavy rain, rainwater splashed in and damaged our timber floor and built-in cabinet. We later found out that there was a gap between the window leaf and window frame. This defects were there but we have totally missed out and we have to bear a few thousand Ringgit of rectification cost ourselves!

All these are potential issues when it comes to a property.

Property Investment involves knowing what we are buying

People say location, location and location when it comes to buying a property. I think that is true up to a certain extent. However, beyond buying that right property at the right place, do we know if the property we buy meets our expectations in terms of the build quality?

Do we know if there are potential issues waiting to happen? Beyond just identifying the property to buy, we may also think about identifying the potential quality issues with the property we are about to invest into as well. It’s a huge investment usually.

Why is property inspection necessary?

Any issues to a property we purchase which is discovered later would mean loss of opportunity to rectify it prior to moving in, loss of time because rectification work will take time and loss of peace because rectification work would definitely be an inconvenience for us and our family if we have already moved in. We have yet to talk about the loss in financial terms because the issue may be discovered much later than the warranty period.

I still remember one rectification work to a bathroom at a home we were staying in. The contractor did their very best to prevent the dust from coming out of the bathroom but at the end of the day, it took my wife and I many days to clean the whole house back to the way it was before the rectification work started. This is just one of the potential issues if we did not catch the problem in the beginning.

Your precious property inspection can now be done by professionals

This professional outfit call themselves Hurata. At the time of writing this article, Hurata has already inspected 1,091 properties and 1,233,198 sq ft.

Their motto is a simple one, “We Inspect your house like our own.” I like this motto. Hurata’s team members consist of experienced builders from management level and civil and M&E engineers. They have joined together because they want home owners to have peace of mind when moving into their valuable property.

As Hurata was formed by experienced builders, they understand every component of the property and thus is able to identify defects and provide practical solutions to homeowners. They will use the corrects tools and equipment to inspect our property beyond just using our eyes. It’s easy to miss some potential issues if we inspect only with our eyes.

What is property inspection, really?

Hurata explained that home inspection is having our property inspected by certified professional home inspectors according to the Construction Industry Standard (CIS)

When should I engage a home inspection specialist?

We could engage home inspection service after vacant possession (when you have gotten the keys), before we decide to buy a sub-sale property (this is the most expensive purchase yeah, so decide with all the necessary information) and lastly, if you want to know the property you currently staying better.

What is the standard which Hurata uses when conducting the inspection?

The inspection is done following the Construction Industry Development Board (CIDB) Construction Industry Standard, Quality Assessment System for Building Construction Works (QLASSIC) (CIS 7: 2021)

What is the scope of the inspection service?

The scope includes the inspection of structural cracks, architectural and M&E items, preparation of a detailed report and then an explanation together with practical recommendations to the owner.

What inspection services does Hurata provide?

They provide New Residential Inspection Services, Commercial Unit Inspection Services, Sub-Sale Pre-Purchase Inspection Services, Thermal Imaging and Scanning Services, Roof Inspection Services, Post Defect Inspection Services,  and even useful recommendation on rectification work.

Do they have satisfied customers?

A picture tells a thousand words. Here are some of them. Do look at their website for more customer reviews. Here’s their website:
https://huratahomeinspection.com.my/our-service/

According to Hurata, not only does house buyers recommended them, even top developers glad to work with them to resolve the issue for their customer.

Conclusion

There are things we can do well. For example, staying trendy with the latest smartphones or scouting for the best food to enjoy. We could spend time to buy the best sofa set for the living room or the best LED TV for the new home. For the things we may not have the expertise, let the experts handle it.

Do contact them for more information on home inspection.

Fill up this simple form and let them explain to you all the things that matters to you when it comes to inspecting your home sweet home.
Form is here (linked to:

https://huratahomeinspection.com.my/contact-us/
)

Tel: 011 – 1129 9323

Email:
huratahomeinspector@gmail.com

Office: 67-1B, Jalan Puteri 5/7, Bandar Puteri, 47100 Puchong, Selangor.

Follow them on FB and Instagram too!

https://www.facebook.com/HurataHomeInspection

https://www.instagram.com/huratahomeinspection/

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Hypermarkets are still competing strongly

Recently I wrote about another new hypermarket chain starting up in Malaysia. Read here:
Lulu and Malaysia, RM1.3 billion investment for retail

In fact I seriously do think hypermarkets are gaining in strength simply because they are normally located within a mall. Thus, after my usual meal, I may just drop by to buy groceries. Of course, urbanisation and growing population also meant that the Klang Valley can still absorb more of these hypermarkets, especially those which are able to offer great choices at attractive prices.

I interpret the following as a good news to retail Malaysia. Reported in a local media. Instead cutting costs, the Giant hypermarket chain would be setting a maximum of RM2.5 million to refurbish and relaunch 28 stores. These are Giant stores nationwide. This does not include the 6 new stores that will be opened next year. Actually, just weeks ago, a colleague said her friend, a vendor to Giant just informed her that Giant was not doing very well. No idea how true or how false but RM2.5 million per store for 28 stores do seem to indicate otherwise.

According to the article, Giant serves 2.3 million customers every week. Within the month of December 2015, two new outlets opened in the Petra Jaya store in Kuching, Sarawak, and Star Avenue in Subang. More outlets are opening in Setapak, Kuala Lumpur, Kangar, Kota Baru and Jerteh in 2016. In many of these smaller towns, sometimes the opening of these bigger brands would spell the end of many of the smaller hypermarket chains. I think you would have noticed if you also have a hometown which is not a city.

I do grocery shopping on a weekly basis. Yes, I do it together with my wife and not let her do it alone. Based on just prices without looking at the environment, generally, Econsave is cheaper than Giant or Tesco’s. No idea if this is because the items that I normally buy is different from the majority. NSK is okay too, depending on items. Let’s not talk about the slightly upper-end ones yeah. For those, I love to stroll but perhaps buying urge is lower. Even the price of bananas or papayas are always higher most of the time. Example, for bananas, some of these stores are selling at RM3.99 per kg to RM4.49 per kg. For the upper-end ones, it’s normally higher.

So you see, every hypermarket tend to have their own supporters. That’s why more and more of those higher-end ones are opening. For me, I support variety first, followed by attractive prices. So, if the hypermarket carries too few varieties, I do not rank it high. Yes, I also like Jaya Grocer because it stocks many brands and items which I could not find in places like Giant or Tesco’s. Hypermarkets are definitely another benchmark that we can look for signs of economic distress. During bad times, these hypermarkets better cut costs and not expanding. Happy shopping.

written on 1 Jan 2016

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I am not using my EPF for Unit Trust. My view.

Over past few years, at least 10 friends have asked me about withdrawing EPF either for housing or unit trust. For the housing ones, I would normally ask if they are really so burdened they needed it. If the answer is no, then I would suggest not to withdraw. Then, there are those who come and tell me that the unit trust agents showed them charts showing
EPF’s dividends are much lower than what the unit trusts
 are getting. First few times, I told them I would keep my money in EPF instead of the transferring it into the unit trust investment schemes. None agreed as their unit trust agents are definitely more professional than me. Then, why ask me? Recent few times, I told them to go ahead if they believe what the agents are showing.

I have withdrawn EPF for the very first property I bought in Penang, an apartment of RM123,0000. Ever since then, I have left my EPF money remain my EPF money. As for unit trust, I buy 6 funds on a monthly basis, from the safest bond funds to the most aggressive equity based funds. Now, you may ask me why am I buying unit trust when I do not believe in withdrawing EPF for unit trust? Am I not having the mindset that
EPF is better than Unit Trust?

One word, objectivity. I think unit trust is a great tool to continuously enhancing the value of your money over the long run. However, unit trusts also have it’s rainy days. Oh yeah, please note the following.

Charts presented by the agents showed EPF dividends lagging the unit trust funds. Did they show you the chart when you bought equity funds and the market dived? I know, they would say, on a
longer term it will go up
. However, imagine you have invested a huge amount in equity just few months back and the market dived and you saw your fund value dropped 20%, how would you feel? Of course, after 1 year, the value goes back up to what you bought and then you are happy. Haha. Charts are made by people to show other people. No one would make the charts look negative.

My friend is the agent. Surely he would not cheat me. Hello, from the first word until now, have I ever said unit trust is bad? I have huge amounts in unit trusts, ok? Your friend is the agent because he needs to make a living. If you think his explanation is good, you have extra cash and you want to buy for a very long term, please use your own money today to invest. Just like property, just like stock market and just like decision of not investing in anything, there are risks.
Equity funds are aggressive
, thus when markets are good, it is not unreasonable to expect your fund value to go up over 20% within few months. But….. you can guess too.

One day, you will need your EPF money, at that time, enjoy it. For now, just let it earn it’s usual dividends year after year without fail thus far. Low, medium, high? Which investments gives you high all the time? If you know one, don’t tell me. Keep it to yourself. If too many people knows, then it will no longer be giving you high returns every year. Yes, I am serious.

written on 11 Oct 2014

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I am poor, so I buy an ‘affordable’ home

A friend who’s just starting his corporate career climb once told me that the reason why he was buying an affordable home was because he was poor. Well, in Malaysia, there are still
Nearly one million civil servants without a home .
 Besides that, with a typical starting pay of lower than RM2,500 per month and perhaps rising to RM3,500 in 5 years with typical increments or RM4,500 with excellent performance and promotion, not many are going to be able to afford anything in the hotspots yet.
For example, inside PJ?

It’s not just whether they could afford the monthly mortgage but it’s more of saving enough as downpayment. A RM500,000 home would need RM50,000 as downpayment. That’s RM10,000 of savings per year or close to RM1,000 savings per month, out of the whole month’s net salary. Yea, actually, not many could do so, unless they have the support from the
 PA MA bank. (parents lah).

When we look at my friend who is buying the RM250,000 apartment, he has to save at least RM25,000 in 5 years or RM5,000 per year or RM450 per month. After getting his pay balance every month, RM450 is easily 20 percent or more of his pay. At the same time, he would still have to pay for his car, fuel, handphone, broadband, Starbucks and more (including the other half). I think it is certainly safe to conclude that this young friend of mine is rich enough among all his peers. Generally, very few of these fresh graduates who has worked for 5 years would be able to afford even a RM250,000 property. Let’s not talk about the days when landed properties were once RM250,000. My conclusion is very simple, within the same group of people, this friend is already rich. Due to this, within the next 5 years, as long as he is still doing the same 20-30 percent savings, he will most likely start his property investment journey already. Even two properties by the time we retire is better than one property…. right?

The statement of “I am poor, so I buy affordable home’ is far from the truth. We can be poor in many ways. Poor in financial knowledge is usually the leading cause to poor in
 financial resources.

Poor in financial resources is usually the cause contributing to poor in terms of available investment opportunities. When we are poor with available investment opportunities and somehow we do not run out of this vicious cycle, I think that is when we can safely conclude that we are poor, in everything actually. There are many people, many examples of people who had very little. They have a vision, they saved enough and pursue that and well, they stop being poor. If you are a fresh graduate today, please stop whining about being poor and just save enough for that affordable property. You are not poor because you bought that property. Enjoy working!

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written on 9 Oct 2017

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I come, I see, I buy? Manage your risk please.

Julius Caesar famously said Veni Vidi Vici.  “I came, I saw, I conquered.”. Let’s see this with regards to buying a property. I have an ex colleague, a Singaporean who told me that many years ago, he bought a condo in Melaka. Many years as in 8-10 years. He could not remember anymore and no longer wanted to remember about it. He said no matter how great Malaysian property is, he would not want to buy properties in Malaysia anymore. In fact many Singaporeans bought that same property. After completion, it could not be sold because nearly everyone wanted to sell. While he did not say but I think it was possible that the majority of all the buyers were Singaporeans.

From wanting to sell, it became worse. Since they were not staying and could not sell, they stopped paying maintenance fees. They felt that since they could not sell why should they pay maintenance fee? They are not staying there anyway. Today, it is considered total loss. I would like to remind everyone again that buying a property is beyond just going to a launching, see the scale model and place deposit. In other words, I come, I see and I buy. You can only do this during a good market condition. In fact the risk is going to be high. The question is how long can such good market situation sustain itself.

These days you have to also know what you are really buying and the risks involved. If you are buying with the mindset that it will always go higher, then you are aiming for the US Mortgage crisis in the near future. However, if you check the value based on the rental it can fetch and it gives you at least a positive yield no matter how low, then at least your risk is lowered. No such thing as zero risk.

If you are buying a SOHO, be reminded that in future you are selling to single working person and not a family. In other words, can a single person buy from you in the future if the prices continue to increase? A couple would not want a SOHO. A family would not want a SOHO. A single may want a SOHO but if there are larger units nearby at almost the same price, even if your SOHO has the most modern design in the world, what are the chances that he would buy your SOHO instead of the larger units slightly further away?

Irregardless of what you intend to buy, manage your risk. A lot of it is just plain logic. If the whole block or even majority of the block is bought by foreigners, are you sure these foreigners will be staying there? Would the situation that my ex-colleague faced repeat itself? If you can barely afford the unit today and you know you are earning more than many of your friends, are you sure you can sell it even higher later? The best is always to read more, learn more before you buy but even if you know more, use your logic to think logically. Buying a property is not just I come, I see, I buy. Manage your risk please.

written on 10 march 2014.

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30 million population, urbanisation, property price and long term view

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I could not afford a house, yet.

In an article by quite a famous online news site, it gave many reasons why many
middle and low income earners could not afford a property.
 One major reason was because of the fast price increases in Malaysia for the past few years. In fact, many are postponing their house buying plans and save money for a few more years instead. Then, it said that rental in some big cities like Kuala Lumpur is high and thus this may be causing those who rent not able to buy in the future. A few questions were then asked Have the prices reached its top limit? When will prices fall? When would be the best time to buy a house and even would there be a housing bubble?

Have the prices
reached its top limit?
 This is the same question many asked about stock market. Until today, no one has ever able to answered that. Truth is, if anyone can answer this, that person would have been rich long time ago. There is no such thing as top limit. BUY when you can afford or be objective if you cannot afford the expensive areas.

When will prices fall?
 Due to the huge potential demand, any fall in price would meant that the property in question is quickly snapped up. Thus, it is not possible for property prices to fall too much. I term too much as above 15%. In hot areas, even a fall of 10 percent in a normal economic condition meant that the deposit would have been paid on the same day.

When would be
the best time to buy a house
? I quote a top management of a top 5 largest developer in Malaysia. He once said, ‘the best time to plant a tree might have been 20 years ago. The second best time is today.’ As soon as you can afford to buy one, please buy one. That ‘way too highly priced’ condo that you are aiming at will be even more ‘too highly priced’ a few years down the road.

Would there be a housing bubble?

Even though so many reports have emerged about the state of economy in Malaysia. Despite all the ratings from international rating agencies, no one is ever sure about whether is there bubble or not. Perhaps best for you to know what is a bubble and how it forms and when would it burst. Read here:
How to spot property bubble?

My personal question would be, ‘Are you able to buy objectively.’ If you are able to answer this objectively, I think you should do just fine.
Just remember, property is for the long term
. If your mind tells you that you can suddenly become millionaire by buying that one property, stop dreaming. I also do not prescribe to any property guru in the market which kept telling you that with the right strategy you can be a multi-millionaire in a few years. That’s when you are LUCKY. Of course, if you are really able to be a multi-millionaire in a few years, I would still be happy for you. Happy thinking or investing.

written on 15 Mar 2015

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Bubble is still brewing in Malaysia? – Some reasons given.

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I feel very lucky, I really do.

I saw these photos maybe a year ago. Real shots of real living conditions for the poorest segments in Hong Kong. Due to the prices being way too high for many of these poorest, their living spaces become so small, so cramped. As time passes, these people who got left behind never did make it back in front and fade even further into the background. Perhaps even forgotten. It’s a tough situation because Hong Kong is really a very small place and the population is getting bigger. Statistically 1,104 sq km and total population of over 7 million people. Singapore is 660sq km and has a population of 5.3 million. Penang is 1,048 sq km and has a population of around 1.6 million.

I feel very sad for the people who has to stay in these type of conditions. I feel so lucky because I know that even if I were to buy a small flat for RM100,000 here in KL, it would still be bigger than the photos I saw and no matter what happens, within my generation I think I would not be facing this situation. However, if there are no proper housing safety net for the poorest population segment, this may just happen for real here in Malaysia. Alternatively, reverse the urbanisation, go home and accept an easier and more relaxing life instead. Not many can do it though. Okay, enough of reality. Let’s work for the betterment of ourselves and our next generation. Always remember, home is where the heart is. Thus, if you wish to have a healthy heart, find a good home for it.

written on 10 May 2014

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I just need a RM635 million home. Cool to know.

What do we do if we need a home sweet home? We start viewing, then evaluating and finally buying one. Right? The first time I decided to buy a property, it took me a very long time to decide. The property price? RM123,000. A few years of property investments later, it took me 30 minutes to decide and tt the needed downpayment for a RM183,000 small unit in Kota Kinabalu which I still own today.

I could not afford some luxury cars but my wife’s 6-year old Proton Exora of RM70,000 was a decision decided a night before and bought the very next morning. 6 figure decisions are tough, right?  Well, what about 7-figure decisions or 9-figure ones?! Haha. Let’s understand what someone among the richest in the world just bought. In case we are wondering, it’s not even his first property…

Full article in forbes.com
 .   Amazon CEO Jeff Bezos has an extensive collection of homes across the country (United States) and he has just added another one. He is the world’s richest man worth US$131 billion (RM542 billion). He had paid for a US$165 million (RM635 million) home in Beverly Hills estate. This is a new record for a Los Angeles-area home according to
Wall Street Journal
.

The previous residential record set by Lachlan Murdoch, son of Rupert Murdoch who paid U$150 million (RM621 million) for the Bel-Air estate used as the Clampett residence in the television show
The Beverly Hillbillies
. Bezos has a real estate empire. This includes several adjacent condos overlooking madison Square Park in New York City, a nearly 30,000 acre estate in Median, Washington and a massive ranch in west Texas and two properties in Washington, D.C.  Please do read the comprehensive
Full article in forbes.com

Okay, that’s a very far and rather impossible thing to match. However, we need to learn something important from all these right? First, billionaires will have lots of choices and will be able to decide where to buy (super luxury hotspots, maybe?), what to buy (actually, most of everything) and when to buy (what’s timing???).

Second is the one applicable to most of us. Property is something needed by many of us and loved by everyone else. Who does not love to own a home where he could come home and just laze around anywhere? Or anyone of us prefer to rent the smallest room where we come back and have to watch tv shows on our smartphone inside the room everyday? Happy understanding that it does not need to be a RM635 million property yeah. However, it MUST be a property, somehow.

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