Official Launch KL Wellness City with a GDV of RM11 billion

Media Release: Official Launch of KL Wellness City: The First Purpose-Built Healthcare and Wellness City in Southeast Asia

Kuala Lumpur, 1st June 2023 – KL Wellness City (KLWC), the first purpose-built township project in Southeast Asia to cultivate a lifestyle fully integrated with healthcare and wellness, marked its official launch today at the KL Wellness City Gallery in Bukit Jalil. The ceremony welcomed the Minister of Health, YB Dr Zaliha Mustafa as its Guest of Honour to officiate the momentous occasion.

With a gross development value (GDV) of RM11 billion and spanning over 26.49 acres, the development is a world-class medical and wellness living at its core. The project features a well-rounded ecosystem primed for wellbeing and health – The Nobel Healthcare Park, the KL International Hospital (KLIH), innovation laboratories, clinical R&D facilities, healthcare company office towers, a retirement resort, a Healthcare Hub, wellness-centric serviced apartments, a fitness-based Central Park, and more.

For the past few years, during the pandemic, Malaysia has been fighting hurdles in keeping up infrastructure development with patient load, retaining our medical talents, maintaining continuance of care in preparation for an ageing nation and a continuous war against Non-Communicable Diseases (NCD).

Positioning Malaysia as a hub for Medical Tourism

“In full support of Malaysia’s national plan to be recognised as one of the best places for medical tourism, KL Wellness City is designed to provide and prioritise health and wellbeing as the heart of its development, through its vision of a 360-degree wellness hub centred around its township which encompasses all aspects of medical care, health, wellness, fitness, and business, complete with residential, retail, and commercial offerings,” said KL Wellness City Managing Director, Dato’ Dr Colin Lee.

In line with the national vision of solidifying Malaysia’s position and track record as the top destination for medical tourism in mind, KL Wellness City will serve as the ultimate one-stop oasis for the body and mind for both domestic and international travellers.

Preparing for an Ageing Nation

Other than being a cornerstone for healthcare travel, according to Dato’ Dr Colin, the KLWC project is also an initiative that is built with an ageing nation in mind. Malaysia, having attained its status as an ageing nation, has an ageing population growing at a faster-than-expected rate where more than 15% of its population will be above the age of 65 by 2050.

Dato’ Dr. Colin Lee, Managing Director of KL Wellness City, expresses gratitude by presenting a token of appreciation to YB Dr. Zaliha Mustafa, Minister of Health.

In response to this shift in population demographics, Malaysia is currently in pursuit of WHO’s Universal Health Coverage and Sustainable Development Goals, that is to provide equitable healthcare and wellness for all. “The KL Wellness City master plan incorporates thousands of facilities and residences. This township is a significant step towards embracing an ageing nation, with facilities for comprehensive healthcare dedicated to wellbeing through elderly care, retirement resorts, as well as independent and assisted living.” Dato’ Dr Lee added.

Retaining and Cultivating Local Medical Talents

The flagship KL International Hospital (KLIH), approved as a tertiary hospital with 624 beds and scalable to 1,000-bed capacity, will be on the same ranks as renowned institutions like Thailand’s Bumrungrad International Hospital, as well as Mount Elizabeth Novena, Singapore.

Some of the of medical equipment and facilities to be equipped in the KL International Hospital will be amongst the first in the Southeast Asia region, offering a fully comprehensive and integrated ecosystem of healthcare services including wellness and fitness facilities across diverse areas, including cardiology, spine health, neuro health, sports medicine, cosmetic surgery, and fertility, with R&D laboratories and facilities for clinical studies.

With the support of the Malaysian Investment Development Authority (MIDA) towards the KLIH, the new private hospital will be built within the mixed development of KL Wellness City in Kuala Lumpur with proposed investment of RM860 million. The project, set to be in operation in the first half of 2026, will create over 3,000 job opportunities for medical professionals, including medical specialists, doctors, nurses, pharmacists, technicians, and others.

VIPs pose for the photo album to commemorate the successful official launch ceremony of KL Wellness City.

“The commitment of KLWC to raising the bar for healthy living and wellbeing resonates with the Ministry of Health’s whole-of-system approach. It aligns perfectly with our national vision and the direction set forth in the 12th Malaysia Plan.

Undoubtedly, I have faith that KLIH will attract multidisciplinary leading specialists to practice in a single hospital location, shortening turnaround time for both local and foreign patients, optimising patient care and experience.

We foresee KLIH filling in that gap for Malaysians, and we stand in support of KLWC resonating with their purpose. The Ministry applauds the efforts of the tertiary hospital to maintain our leading position in this region and globally. We will continue to endorse KL International Hospital’s commitment,” said YB Dr Zaliha Mustafa, Minister of Health Malaysia.

Dato’ Dr Colin also expressed his gratitude for the support of the Malaysian Government for the ground-
breaking project. “We are honoured by the presence of the esteemed Minister of Health, YB Dr Zaliha

Mustafa, which further exemplifies our shared commitment to make Malaysia stand among the best in
the SEA region.”

— end of media release —

If you like to understand in more detail about the potential of property investment and healthcare demand, here’s an earlier article:
Dynamic Duo: Property Investment and Healthcare Demand

To read a review of KL Wellness City, here an article:
9 Important Things about KL Wellness City

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Yes, it’s officially BREXIT instead of BREMAIN

My article on this earlier.
Brexit and UK property market – Wall Street journal
.

It has ended. Nope I am not talking about the UK economy. I am talking about the referendum. It’s over, the people have voted and the UK will exit European Union. By the way, it will not be happening next week. It may happen within the next 2 years, from the date that a notification is sent to the EU HQ of the intention to exit. There would be much more negotiations before anything is cast in stone. I do not think both EU or the UK favours any huge and radical sudden changes. For the sake of both sides, better be rational. It’s just a decision and the effects are not likely to be felt for years to come.

Then, are the stock markets down? Why is the Pound so volatile and down the most since 1985? Come on, the expectations would be that the UK would lose access to its largest market, the EU. Plus the financial markets are always short term anyway. By the way, that’s how the “investors” in these financial markets earn some pocket money. If the market does not move much, I don’t think there’s a need for stock markets. Haha. Then why is the Ringgit down even though the UK is not even a top 10 trading partner to Malaysia? As usual, when the market is uncertain, investors prefer ‘stronger’ currencies. Ringgit is not considered a major currency, thus it will keep moving when the market moves.

Some friends said, better buy Pound because it is down by so much. Yeah, that’s a possibility but as long as it’s just to ensure a cheaper holiday when we visit London soon then it’s ok. Do not buy huge amounts of foreign currency as a form of diversification. It’s just too volatile and seriously, can anyone predict what will happen to the UK in the next 2-5 years? Just look at the movement today, absolutely nothing has changed, just a vote. Yet the movement down has been extremely sudden for the Pound and the stock market. Perhaps the parents with kids in London would be very happy.

Happy reading and understanding.

written on 24 Jun 2016

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Oh dear, 18 levels of car park. What the …

Do you love to drive up 18-levels of car park before reaching your home somewhere in greater KL / Selangor?

When we write something interesting, surely the follow up comments will also be interesting and this time, it’s factual too. I wrote this article recently about that possibility to buy just one acre of land (43,560 sq ft) and building a total of 1,000 units of homes on it. Get real, the size cannot be 1,000 sq ft per unit, okay. Please do read if you like to know more yeah.
Can we build 1,000 units of homes on a 1-acre land?
The following is a response from my good friend who is full of numbers, statistics and well, figures too. He is
Dr. Daniele Gambero, the only Propenomist I know in the world.

He wrote, “43,560 sq ft, after setbacks would leave the owner with just 28,000 / 32,000 sq ft. The plot ratio of 10 for example is calculated with the remaining land in sq ft x 10. Thus, it is no longer 1-acre of land”  (Yes, this is what happens when the land is just 1-acre yeah. So, if we intend to develop any piece of land, perhaps good to buy a bigger piece yeah. Then, give me a call so that we can have a cup of coffee and think about what to build yeah)

Dr. Daniele then explained the part about car parks which I did not write because I estimated the car parks to be 10 levels. His numbers are much more realistic. He wrote, “Beside this have to consider current rules and regulation on car park. In KL we still have 2 car park per unit plus 10% for visitors and OKU. Which bring in a whopping total of 2,200 car park lots @ 350 sqft each (inclusive of circulation and so on) comes to a total GFA (gross floor area) for car park alone of 770,000 sq ft.”

He added, “If your land is 1 acre it means your developer will have 18 floors of carpark, minimum ????It might be taking you 20 minutes to go from the entrance to your carpark at level 18 lol .”

WOW… suddenly I think no one is interested anymore? Well, we will have to see what the next generation think about convenience and what’s their lifestyle is like. Imagine the millennials of today staying in a bungalow when they are old? You get my meaning… Anyway, if we look at Hong Kong or Singapore where the number of cars were controlled, then all these super high density developments are possible, especially if it’s connected to the MRT station. My thinking is a simple one. There are already so many good examples which we could learn from.

In fact, it need not be ever higher density, it could even be legislation for re-development of old / dilapidated / insufficient occupancy developments. All these would happen before that conversation about the potential for underground developments can start too. Not everyone likes to drive 50km to work everyday… Not every generation anyway. Happy reading and please do tell us your thoughts too.

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Oh no, 15% over 60 by 2035

Remember this earlier article about Malaysia becoming an ageing nation? Read here:
Malaysia – Ageing population – Stats and steps
  It’s always good to prepare ahead even if this ageing population statistics do not include me yet. According to local media report, Malaysia is expected to have 15% of its population aged 60 or older by 2035. This is just 19 years away. By 2035, it would still NOT include me. Haha. However, following would be what I believe would happen by then. Lifestyle can change with changing circumstances.

The smaller units that is so loved by the younger generation today would most probably be a favourite to the older generation too. Many of these seniors may be currently staying in landed or bigger condos today but it’s not going to be an ideal choice when they get older. Moving out of these bigger units may be a better option too. Staying in just one room out of a home with 3-4 rooms is not a great feeling to have actually. This is also supported by a study by the Malaysian National Population and Family Development Board which estimated that more than half a million of the 2.4 million senior citizens suffered from the “empty nest syndrome” As per wikipedia, “
Empty nest syndrome
 is a feeling of grief and loneliness parents or guardians may feel when their children leave home for the first time, such as to live on their own or to attend a college or university. It is not a clinical condition.”

For those staying in bigger condos, should they choose to stay with their children on and off, it’s definitely better to sell their bigger units for good profits and buy / rent a smaller unit instead. For those staying in a landed property, they may not feel safe enough and maintenance is also extremely tough as just the cleaning alone would already take up lots of time, effort and even money. That’s the reason why I do not believe landed property prices can keep rising higher than the sky, especially for the older areas which are not favoured by the younger generations of today and tomorrow.

Oh yeah, an ageing population would exert huge pressure on the nation for the socio-economic and health problems. According to the National Union of Bank Employees (NUBE) deputy secretary general A. Karuna, this group is economically unproductive and lacks the financial means to lead a simple and decent lifestyle. Assuming what he predicted is true, it’s time we do something about it. Read here:
Save one-third to have two-third when we retire

 If we do nothing, we may fall into the 90% of the EPF contributors who could not sustain their usual living standards beyond five years after retirement. To those who are aged 41 or higher this year, it’s time to be serious about this serious issue come 2035. Happy reading and taking actions.

written on 15 Jan 2016

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Take note of these retirement issues

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Oh No! Oil prices falling means Bursa stocks and Ringgit will fall too!

Oh no! Bursa Malaysia as well as the Ringgit is falling because of oil prices which has sunk below US$70 per barrel. This was the title of many articles about the current state of Bursa Malaysia as well as Ringgit. The stock market is at its lowest point since mid-October while the Ringgit is now at a level unseen for the past 4.5 years ago. So, is it true that oil price was the main cause for the fall? I am no analyst but I can tell you, they just need a reason and somehow oil price is the best. Go and take a look at all the stocks for which price has fallen, some are real estate related, some are food, some are manufacturing, some are pharmaceutical and many other industries. What has oil price got to do with it, suddenly? If it’s real estate related, shouldn’t they benefit a bit from falling oil prices? The sentiment is negative, many people starting selling and more joined and the whole market fell. The Ringgit fell ONLY versus US$. Please take a look at Ringgit versus other currencies and you would see that it is up against some and down against some. Think objectively please.

How low can the oil price fall to? According to the WTI technical analysis, the support level for the oil is at US$64 per barrel. This meant that the sentiment has to be really negative for oil price to fall below this level. If it does, then the analysis showed that it can fall all the way to US$32.40 per barrel. Ok, if oil price falls to this level, what should happen to Ringgit and Bursa stocks? I think everyone is now sweating? As explained earlier, the current oil price is because of demand not as high versus supply as well as the fact that OPEC does not like US for producing so much oil from its shale productions. I seriously do not think oil will fall to anywhere near the so called lowest level. The reason is because before it falls to that level, OPEC would have had to make a decision and many of the current US producers would have stopped production. Of course, I am only speaking about the potential that may happen, just like any other analysts which are trying to scare the market. They can profit from all these volatility. If it’s stable all the time, they have nothing to do. I do not.

For those who continue to think that Bursa and the Ringgit will be tracking the oil price movement, I wish you the best. I think one day when the oil price rises to US$120 per barrel, and Bursa is also falling and Ringgit happened to also fall, they would again attribute it to the high oil price. Haha. Always, understand what you are buying. Just like property, you buy with the intention to keep. That’s how you ensure you think objectively and buy the best. When we buy stocks thinking to sell the next day for huge profits, that’s not investment. That’s just gambling. For gambling, I wish you will be lucky. That’s all. Happy buying when markets are down and happy selling when markets are up.

written on 2 Dec 2014

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OPEC vs US oil producers. Who’s going under first?

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Oil and gas, hard time continuing

It was on the main page of a newspaper I saw yesterday. Petronas will cut RM50 billion spending over the next 4 years. Of course the most should come sooner because the spending may be increased again when the oil and gas prices recover, if they recover. Today, in Facebook, someone shared news about Schlumberger cutting 10,000 staffs. The firm suffered its first quarterly loss in 12 years and the net loss amount is US$1 Billion. This was not all, Bank Simpanan National (BSN) explained that as part of the bank’s on-going risk management measure, it is implementing a tighter lending rules for customers working in the oil and gas sector who are applying for new loans and credit products.

Before we believe everything is bad, well there are also the following few predictions. Recently, Goldman Sachs predicted that oil prices would end at US$40 per barrel within H1 2016. Today, the oil price is at US$30.95. Based on the current price, this represents potential upside of nearly 30 percent! Warren Buffet did not say what he think the oil prices should be but he bought lots of shares in an oil related counter. Read here:
Falling oil price and actions of Warren Buffet
.
Lastly, reported in BBC News just days ago, according to the boss of British Petroleum (BP), “We could see a price $30 to $40 by the middle of the year and I think towards the end of the year it could be into the $50s.”

In one article we have learnt that there are so many bad news and some potentially bullish predictions for oil price recovery. I am of the opinion that there is still oversupply and with such a bad ‘mood’ prevailing in the market, all of us should be enjoying cheaper petrol prices at the stations for many more months. Oh yeah, this is what chairman of Saudi Aramco, Khalid al-Falih said during a forum panel session in CNNMoney, “If the prices continue to be low, we will able to withstand it for a long long time…obviously we hope it will not happen.” An extremely strong statement indeed which meant that they will not take any action at all to help oil price recovery. Happy pumping.

written on 23 Jan 2016

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100 Billion barrels of oil in London??

London is a world city. It’s huge property market is participated by players from all over the world and you may not be considered a super-wealthy person unless you own something in London. Well, in the near future, perhaps you can fly there for an ‘oil bath’? Haha. Just joking but it has been recently reported that a small British oil producer has found a huge oil reserve in London. In fact this reserve may be up to 100 billion barrels of oil which meant this is a world class oil reserve when developed. Of course, the said company, UK Oil & Gas Investments (UKOG) said that perhaps only a fraction could be recovered.

This find is in an area near Gatwick airport (second largest airport in Britain) and it is a huge significance to Britain because all these while Britain has always been relying on North Sea for oil but the output is declining since the start of the century. Of course, would the company be rushing towards production? Perhaps not yet when we look at the current oil price which is still declining and showing little sign of any recovery to the three digit numbers of just 2 years ago. In fact in some reports, it was said that many of the high cost oil fields in America are producing at a loss and may not be able to keep it up. Of course, this also meant that should majority of all these high cost oil fields shut down, the total production would also reduce and perhaps signalling a slow increase in world oil price.

The development should be a long time to come but if this do happen, it will be positive for London too. After all, the production site would definitely needs more highly skilled professionals and these people are definitely not working in London today. Will it cause huge jump? I think as a property market, London is too huge to be affected by just one oil discovery. The only plus point I think would be this oil production site would also be accompanied by many other secondary accompanying services too and thus, the number of new jobs created should be substantial compared to just the usual organic growth currently. Not so soon, just follow the news for now.

written on 13 Apr 2015

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Jobs in oil and gas? Lost and never coming back?

Remember many months ago, some banks internal memo was leaked out on loans to people from the oil and gas industry? Well, before the downturn in oil prices, these oil and gas people were the ones being paid so high they could buy any of the usual luxury condos in KL. I read a long article about the oil industry a few days ago in The Star. Read it
here
. In brief, it said that the current retrenchments in the oil and gas industry is very bad and it is unlikely that the jobs lost will ever be back. The article gave many examples of why and they include even the fact that production of shale oil is a new phenomenon that will ensure oil prices remain low. Some oil producers however expressed confidence that when they need these people, they will be able to hire them back.

The reason why oil prices went up has always been due to the expectations of demand. You expect demand to go up higher than production and thus prices go up. It was not because of the cost of production. In other words, the costs of production could continue to go up as long as the oil prices continue to move upwards. To me, this is a little absurd. Yes, this same thing is also happening to some smartphone brands but that’s another story.

Today, let’s focus on why so many people are paid so highly in the oil and gas industry. During sudden booms, the need for people is immediate and thus everyone would be paying ever higher just to attract the same calibre of people needed by other industries. Let’s not look too far, an engineer in the oil and gas industry is definitely going to be paid much higher than the same person in the manufacturing industry. My colleague (programmer) told me that his classmate was paid nearly three times his pay when they both graduated at the same time many years ago. His friend joined a famous oil and gas brand and was RETRENCHED end of 2015. As at August 2016, his friend was still jobless.

I do hope that the
crazy prices of yesterday
 would not return. Anyone want to pay high petrol prices in Malaysia? As for the jobs in the oil and gas, I hope they will be back soon. However, the salaries should no longer be at those premiums of yesterday. Let’s have a more normalised pay scale? Of course, if the jobs involve being stationed in oil rigs, then they should be paid premiums but look around. Many are working in safe and awesome working environments and yet being paid by far higher than everyone else. That’s the only reason why when the industry suffers a downturn, the retrenchments and closure of offices are fast and furious too. Remember, high pay means
high leverage to invest and not high EXPENSES
…   Happy following.

written on 13 Sept 2016

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Oil price demand? The World. Oil supply? 2 big sides. (not just OPEC by the way)

Frankly, I have not been following the petrol price for a long time. However, I do know that it’s now higher than the times when it was below RM2. We can choose to wait for the petrol price announcement or we could also read a bit about how the oil market is really moving currently. This is one website where one could read anything about oil. The market, the players, the manoeuvres, the predictions and many more.
oilprice.com
.
 Today, let’s just run through two piece of news which I have written about before but now we have some updates. To start, let’s get to know OPEC and shale oil producers in brief.

OPEC stands for Organization of the Petroleum Exporting Countries and it is an intergovernmental organization of 13 countries who are all producing and exporting petroleum. It  is considered a powerful organisation because it controls the oil supply in the world UNTIL the arrival of the US shale oil producers.

US shale oil producers are producers who extract oils from rock. Rock? Haha. As per wikipedia, this is the process: “Shale oil is an unconventional oil produced from oil shale rock fragments by pyrolysis, hydrogenation, or thermal dissolution. These processes convert the organic matter within the rock (kerogen) into synthetic oil and gas.”
Read more here.

So, in actual fact these two huge oil producers are determining the supply across the world. Both are not good friends by the way. Beyond these two, we also have other nations which are also producing oil but are not part of these two yeah. They include Canada, China, Brazil, Norway, UK, Qatar.
Malaysia is a member of OPEC+ which are new members of OPEC. Read here for full details.

Article in oilprice.com
.
 Renewable energy will continue to be a hot topic for many more years to come. However, it is oil which will determine the oil price and there are many reasons for that to continue happening. This is what it says about why this transition is likely to be very hard to do. “Embedded power structures and support for a dying industry.” Briefly, the players in this industry are very powerful even if the future is definitely about renewable energy since oil will run out one day in the future.

Article in oilprice.com
  This article talks about how the recovery in the shale oil production may spark an increase in oil production and this may happen next year. When this happens, then another price war will happen and of course when a price war happens, it also meant that the price would fall as well. Current oil price at US$60 a barrel makes boosting production extremely tempting.

Some knowledge about cost of oil production

As US$60 per barrel, some shale oil producers are able to earn good profits. It is said that the cost of production for shale producers range from US$40 – 90 per barrel. This is why the number of bankruptcies for shale oil producers would start going up if oil prices fall below US$40 for example. This is because if they (shale oil producers) do not produce, they have no revenue. If they produce and sell, they may be selling their production at a loss. This is why at US$60, the ones who are able to earn profits would definitely be trying to increase its production. It’s hard to predict what will happen in the near future with regards to oil price.

Thanks for reading and learning about oil price too.  Now you are able to share this knowlewdge with your friends too.

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When the oil price is moving up … again

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When oil price is moving up… again.

I believe some of us may have read that the oil price is moving up… again.

Any news at all, if it’s a little negative about the oil supply will boost that price a little higher. Never mind that the sales of electric cars was a record high in 2020 despite COVID-19. Yeah, cars do CONSUME lots of oil… Never mind that the flights have reduced tremendously because no one could fly. Yeah, planes do CONSUME lots of oil too. Never mind that the SUPPLY remains elevated when we compare that versus the DEMAND.
Here’s that latest news about oil price.

Photo by Andrea Piacquadio on
Pexels.com

Oil price moving up is positive news, actually

Anyway, when the oil price is again moving up, there are positive signs too. It meant that people start to believe that consumption will again move upwards. It means they believe economic activity will be increasing. This is good as it also meant people would feel more confident and generally they may spend more.

When they spend more, the demand for goods will increase and this will fuel the production of more and with a higher production, employment would go up. With more people having a job, or changing jobs for a higher pay (in the oil industry for example), this meant that people would have even more money to spend and this would continue to propel the economy forward. So, oil price going up may not all be bad. Maybe bad for the drivers who could not afford an electric car yet.

The stock market has also shown more vibrancy too, especially the stocks related to oil… from logistics related to oil transport to piping companies related to oil to drilling companies related to oil and even any supporting companies to these oil industry supporting companies too. For example, the shipbuilding company if they happen to be building the oil tankers which the logistics company needs for their oil transport.

Just need to know that oil price is volatile

The reason why oil price started their downtrend was because the world felt that the supply of oil (from the Middle East and even the U.S.) was way higher that the demand for the oil. This has not entirely changed because the consumption has not recovered to pre-COVID19 levels yet.  The oil producing nations still need to produce them because if they stop production, many people would lose their jobs. There’s just too many fixed costs which needed to be paid.

Travel bubbles may start to happen in the second half of this year. This may push the oil prices even higher as this would show demand moving up. More flights means more oil is needed. Just remember that the oil supply could also quickly be raised because many countries could raise their production quickly BUT that’s not a relevant because when people love the news they hear, then oil prices would continue it’s upward movement.

Happy understanding that oil price movement really does NOT adhere very closely to the demand and supply theory. It adheres more to the POTENTIAL story and the story could be written in both ways; positive or negative. Come to think of it, even the property market and the stock market does not follow the demand and supply that closely too. Sentiment and emotion are both major players in determining the movement of the prices too.

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The largest oil producing country in the world? No, not that country you are thinking

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They say, this is also because of COVID-19

I have not pumped fuel from before the Movement Control Order (MCO) until today. I have driven one car out for grocery shopping a few times and the only thing I needed to pump was air… Needed to ensure the tyres are inflated properly. So, I have not enjoyed the low fuel prices which has been happening during the MCO period. Not even once. What about you guys?  Managed to somehow pumped in and enjoy savings of a pack of instant noodle per tank?

You must have read somewhere, somehow and someone would have alerted you. Oil price is now so low that it’s unbelievable. More about that shortly. These days, anything which is not doing so well, it must be due to the COVID-19 pandemic. There were some hotels said to be closing due to COVID-19. Property prices are also said to be falling because of COVID-19. Article here:
Housing prices expected to fall 10-15% because of COVID-19
 Okay, back to the price of oil.

Article in cnbc.com
  The article says that the price for May contract for West Texas Intermediate crude futures dropped to US$14.80 per barrel. (approximately 159 litres) This is the lowest level since mid-March 1999.  (Yes, that’s over 20 years ago.)  Two reasons were mentioned for the current price.  ANZ’s Daniel Hynes said, “This was caused by a combination of a “collapse in demand and a subsequent lack of storage.”

The article pointed out that the coronavirus has stopped economic activities and this reduced the demand for energy. OPEC and its oil producing allies did agree to cut production by 9.7 million barrels per day but this may not be enough to offset a severe plunge in oil demand. Demand is also near-paralysis while oil and fuel tanks around the world are close to brimming (means nearly no more storage space). Please do read the full article here:
Article in cnbc.com

For some of us, we may not know this but the U.S. is the world’s largest
oil producer yeah. They are followed by Russia and then only followed by 3rd ranked Saudi Arabia.
 The U.S oil production is due to shale oil producers.
“Shale oil extraction is an industrial process for unconventional oil production.
 This process converts kerogen in oil shale into shale oil by pyrolysis, hydrogenation, or thermal dissolution.”  Briefly, the cost of production for shale oil is much higher than oil fields in Saudi Arabia for example. To breakeven, some estimates say that the oil price needs to be at least
US$40 per barrel. (read here for the source)

As for the cost of production for oil fields in Saudi Arabia,
let’s just say that they are not yet affected by the current low oil price. Here’s one such report.
 In other words, if the current oil price remains for a long time to come, the shale oil producers in the U.S. would not be able to continue their production. Still believe that the oil price is solely due to COVID-19? Do remember yeah, the oil storage is already near brimming… In other words, the more production of oil, the lower the prices would become because storage is running low even if buyers want to buy and keep them and only selling when prices recover. Happy understanding.

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Oil price is up suddenly. Good news or bad news?

I know, if we drive cars, we simply hate it when petrol prices go up. However, rising petrol prices do signal something positive in the world economy yeah. Unless of course, all these prices going up was triggered by speculation and speculation alone. Haha. Yes, there are a lot of speculation at play when it comes to oil price yeah.

When people EXPECT demand to move up, the prices move up FIRST. Note, they expect does not mean demand has already risen to a level warranting the price increase yet. It’s the potential future demand which people expect which is driving up the prices instead. Yes, this is why oil prices (which will impact petrol prices) has risen to a new high. This is the highest in three years which is really high…

Article in nst.com.my
   The price of Brent crude oil jumped Tuesday above US$80 for the first time in almost three years on expectations for surging demand and concerns about supplies as the world slowly emerges from the pandemic crisis.

With the rollout of vaccines and easing of lockdowns this year, bets on demand for the black gold have surged, while an energy crunch in the northern hemisphere has sent natural gas prices to a seven-year high leading to a spillover into the oil market.

At the same time crude stockpiles have shrunk, while increases in output by OPEC and other major producers including Russia have been unable to temper the rally in the commodity. Please do read the full article with a lot more details here:
Article in nst.com.my

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Oil prices, as usual.

It’s sometimes funny to read some of the news article about the declining oil prices. One latest one in a major English daily said that with the oil prices declining, some of the oil companies in Kuala Lumpur may face pressure to move out. First question, why would they move out because of low oil prices? Is it because of lower profits, therefore they could not sustain their operations and thus have to move out of Kuala Lumpur? Or moving to smaller offices? Moving to other countries? Closing down? Actually the article did not say but I seriously do not think any oil company would be moving in and out of offices with the movement of the oil price. I have personally set up a new office before. Even though it is just a 1,600sf office and with majority of everything reused, it is still very expensive. I have been to a few oil based companies before. Their offices always look impressive. For them to move such offices, would be crazy. Of course the agent would be happy and so would the renovation company. Oh yeah, shutting down today and reopening later when oil prices are up again? 🙂

These days, when the stock market is down, they said it’s because of oil price going down. When Ringgit is down, they say it’s because oil prices are down. AUD$ is also sliding down, it is even lower than November when I exchanged RM into AUD$ to travel to Perth. Until today, I did not change back because AUD$ has gone down slightly versus RM. I think this must also be due to the oil price. Oh yeah, Japanese Yen is still weak versus RM. I think this must be due oil price too. Euro is on a 9 year low versus US$. Must be oil related too. Haha. I hope you get what I mean by now. The current oil price CANNOT be affecting so many currencies and yet US$ is up because oil price is down? Ok, perhaps that’s because the US is expected to have a GDP growth for 2014 which exceeds expectations?

On the radio, it was announced that the mandarin oranges would be 10-15% more expensive this year because of many reasons. I thought oil prices are down, therefore costs of doing everything should be down. From transportation to fertilisers (yes oil is needed) and to electricity use (yes, its’ either hydro, nuclear or oil). So, why are the prices up? Have you ever gone to supermarkets to buy Mandarin oranges on the first day of Chinese New Year? Yes, the prices are down at least 20-30%. Have you ever bought mandarin oranges many days after Chinese New Year? Have you compared the mandarin orange price between different supermarkets? Yes, it can be up to 10% different at different times! Did costs come down suddenly? Nope, it’s more of realising the demand and supply equation and it went back to equilibrium. Oh yeah, Chinese Yuan has gone up versus RM, is this the reason? It has gone up by 4.5% versus 2014. Hmm…. perhaps the adjustment should have been 4-5% instead? Then again, the costs of doing everything has gone down, surely this 4-5% should have been offset by it?

When we have no answers, it’s okay, blaming is easier than researching and explaining. Happy New Year.

written on 6 Jan 2015

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The largest oil producer in the world? Nope, not that country you may be thinking.

Do you hate it when you have to pay ever higher for petrol?  I hate it too.  Especially when pumping full tank meant up to RM90 depending on your car. Now, do you also hate it when the petrol price is down so much and yet you do not have the opportunity to pump petrol?  Yeah, me too. In case you did not know the price of petrol since you have not pumped any petrol for nearly 2 months, this is the latest petrol price.
Courtesy of comparehero.my

Yeap, just like you, I have also not pumped petrol for nearly 2 months. Well, why is the price so low? That’s because the world oil price is much lower today. Some say it’s because ofCOVID-19 which has sapped away the demand for oil since everyone could not pump petrol since they are staying at home…  Actually, do you know who is the largest oil producer in the world?

I think most people would think that the country which produces the most oil in the world is Saudi Arabia, right?  Wrong. In 2019, that country which is the largest oil producer in the world is also the world’s largest economy too. The United States of America is the world’s largest oil producer.  It produces 19.5 million barrels per day (bpd). Thus, in a year, it could produce up to 7.12 billion barrels.

So, is it producing for the world or is it producing only for itself?  I am very sure you have not heard of countries in this part of the world buying oil from United States, right?  America consumes 7.47 billion barrels per year.  That’s 20.46 million bpd. So, they actually are not producing enough oil even for their own consumption yeah.  Nevertheless, this demand has definitely dropped because of COVID-19.  This was why oil price actually went berserk just over a week ago. Earlier article here:
They say this is also because of COVID-19

Number 2 oil producer in the world in 2019 is Saudi Arabia. It produces 11.8 million bpd. Most of the production is for export. As at 2018, it consumes 3.7 million bpd. Despite only being the second in oil production ranking, oil and gas alone contributes for about 50% of Saudi Arabia’s Gross Domestic Product (GDP). It is also the country for
which one of its funds is looking to buy a football club in the UK.  Read here
.

As the second largest oil producer in the world, Saudi Arabia plays an important role in the Organization of the Petroleum Exporting Countries. (OPEC) This is an organisation where most of the world’s major oil producers are a member of. The U.S. is NOT a member of OPEC. In recent times, the U.S has increasingly played a role which has reduced the influence of OPEC on world oil price. Perhaps this is a good thing for consumer.

The remaining top 10 producers as at 2019 are as follows:  No. 3 Russia with 11.5 million bpd, No. 4 Canada with 5.5 million bpd, No. 5 China with 4.9 million bpd, No. 6 Iraq with 4.74 million bpd, No. 7 United Arab Emirates (UAE) with 4.0 million bpd, No. 8 Brazil with 3.7 million bpd, No. 9 Iran with 3.2 million bpd and No. 10 is Kuwait with 2.9 million bpd. If you like to read about all these top 10 oil producers,
here is one interesting and concise article in investingnews.com

By the way, the price of oil do not just depend on the supply and demand yeah. It also depends on the trader of oil who buys oil and sells them or stores them before selling them later on. In other words, it could be speculated upon too. It has to also depend on the cost of production too. While the U.S. is the world’s largest producer of oil, the cost of production for its oil is much higher than Saudi Arabia. Thus, at the world oil price (6th May 2020 at US$30.83 per barrel), many U.S. oil companies are in trouble. We will see how long the oil will stay at current levels yeah. For now, just enjoy pumping petrol, when you could do so.

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Okay, everyone gets RM5,422 to spend as you like. Like this?

Would you like the government to give you RM1,000 to spend anyway you like as part of the economic stimulus which will be announced soon? Well, how about if the government were to give each and every Malaysian aged 18 and above RM5,422 instead? No strings attached. Just spend it any way you please. As of now, no one has any idea about the economic stimulus to counter the COVID-19. However, we do know what Hong Kong government is doing.

Article in bloomberg.com
  Main feature of the Hong Kong government’s budget is a one-time cash handout of HK$10,000 (RM5,422) to each permanent citizen of 18 years or older. Financial secretary Paul Chan estimated that the deficit will reach a record HK$139.1 billion in the coming fiscal year.

The budget is aimed at stopping the slide of the collapsing economy due to months of political unrest in Hong Kong. Economists have forecasted that Hong Kong will face a second annual contraction because this year, coronavirus outbreak has added even more pressure to the government struggling to eke out an economic growth.

Alicia Garcia Herrero, chief Asia Pacific economist at Natixis SA said of the cash handout, “This is obviously untargeted and regressive and will not solve the problem of those most severely hit.”  Accounting firm KPMG LLP pushed for handouts yet in the form of electronic vouchers to encourage direct spending, rather than saving or moving the cash abroad.

For the home buyers, Hong Kong Mortgage Corp will launch a pilot programme offering fixed-rate mortgage loans through the banks to provide them with more options and reduce risk of interest rate volatility. Please do read the details of all the other measures in the budget in the full
Article in bloomberg.com

The Singapore government under its budget 2020 will also be handling out money for Singaporeans age 21 and older. It’s a one-time payout of between S$100 (RM302) to S$300 (RM907).  Why do these governments hand give money to its people? Well, the theory is that with money, one will spend them. Assuming you spend it to buy groceries, the supermarket will now have money to order supplies from the manufacturers. The manufacturers would then have to hire money people and these people would then be paid salary and with this salary, they will buy even more items.

This is called the multiplier effect and usually the multiplier effect could be 4 times. In other words, that RM5,000 given out will be multiplied by 4 times due to the effects it will bring to the economy. Note though that if people get the money and they save it into the bank, then nothing happens and the government has just wasted a lot of TAXPAYERS money… Well, the economic stimulus is supposed to be announced this week. Let’s wait and see if there are such good news too yeah.

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Okay, meeting delayed to July 31 2020. Important discussion to have,okay?

If you have read kopiandproperty.com for a while, you may have noticed that I think the Rapid Transit System (RTS) is a very important catalytic project. It will benefit both countries because of the better connectivity between both countries. So, when are the two transport ministers due to meet? Actually after some delays, it was supposed to happen a few days ago. It did not and the new date will be 31st July 2020.

Article in channelnewsasia.com
   Singapore’s Ministry of Transport (MOT) has announced that the the suspension of the Rapid Transit System (RTS) Link project has been extended by another three months until the end of July. It said, “Like Malaysia, we are optimistic that the discussions on the outstanding matters can be concluded within three months, using tele-conferencing and other means of communication.”

Malaysia’s Transport Minister Wee Ka Siong had earlier said that he and his counterpart in Singapore, Khaw Boon Wan has been discussing the status of the bilateral agreement “closely and constantly.” The RTS was meant to be completed in 2024. It aims to connect Bukit Chagar in Johor Bahru to Woodlands in Singapore, serving about 10,000 passengers per hour each way to help ease traffic congestion on the Causeway.
Article in channelnewsasia.com

Of course it would benefit the poor workers who has to travel to and fro in the wee hours everyday to get to work in the island republic. It will definitely enable even more economic activities between both sides yeah. Many Johoreans may want to drop by Singapore’s attractions and vice-versa. Nope, it is not going to happen immediately, so it will not happen when the Movement Control Order (MCO) is still in place yeah. Our MCO is until 12thy May 2020 and Singapore’s Circuit Breaker (CB) is under 1st June 2020. Okay, just wait for 31st July 2020 then.

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Old and poor is not a good idea. Please take care!

I read this
news in nst.com.my “Mandate kids to care for parents.”
 and I immediately felt a tinge of emotion. Why do we need legislation to ensure parents are taken care of?

Healthy and able to work is not for all jobs

Then again, I was jogging the other day in Singapore and I saw an uncle, probably in his 70s sweeping the floor outside an MRT station. Further down the road, two foreign workers were cutting the grasses outside the Parliament building. I would have hoped that the uncle would not need to wake up so early if he does not want to and certainly not sweeping the floor at 8am in the morning…  By the way, this has got nothing to do with people being healthy and thus they could work. My parents gave everything they have to their children, it’s time we give back too.

Planning for post-working life is important

My wife and I decided that we will do our best to ensure our kids get their degrees and a property each. That’s all we have planned because we really hope that we could travel a bit more after they have started their tertiary education years. Hopefully by then, I could do some occasional training / consultancy but the rest of the time, just relaxing.

By the way, we are not aiming for every week in another country yea. Perhaps one week in Langkawi, the other week in Kota Kinabalu and etc. My wife’s requirement is just 2 overseas trips per year. I think that’s doable. Haha. We also have no intention to stay in a big house by then. A condominium of 1,000 sq ft should suffice because we may not be home that often anyway.

Investment is critical

This is why investment and the ability to do so is critical. Do not believe too much in anything which can go up super fast. If that’s the case, it can also come down super fast. I wish everyone will be lucky and is able to catch the right timing. Just remember, luck do run out occasionally. Remember, when we do not know WHY the returns are so high, that’s no longer an investment yeah. More like a gamble.

Continue to reduce unnecessary spending. One does NOT need a better car to show off to peers who are driving worse cars. There are MANY more who drive better cars anyway. if we can afford a RM200,000 car, congratulations! Just remember to buy a RM100,000 car instead and the extra instalment savings every month, invest it. Both cars will reach the destination yeah.

One does NOT need a luxury handbag unless of course the handbag can be bought without the need for installment and the price is just a small amount versus the salary.if the cost of one handbag is a few months of the salary or that installment is needed, be financially savvy and avoid it. It’s NOT within your league and whatever you do to try and show off will not work.

Old and poor is not a good idea

One day, someday we will become old. We may think it’s very far away but every year we did not do something to prepare for it means that we are closer to the possibility of being old and poor. That’s really not a good idea. By the way, every RM5,000 we save is not RM5,000 when we retire yeah. Even at 5% returns, that RM5,000 will double in 14 years and you can continue to do the calculations for the 2nd year RM5,000 and 3rd year RM5,000 and so on. Suddenly you will realise that hey… I am half a millionaire just by saving RM5,000 per year consistently for 30 years.

I know, you want to say RM500,000 is not a lot of money by the time you retire. It’s still way better to have it versus nothing yeah. 🙂   All the best.

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Old buildings demolished for new? Question of sustainability.

Many friends, especially the ones who grew up in the Klang Valley posted the sad news about Plaza OUG being demolished for a new highrise building. Some commented that it should not be demolished because the new highrise building is not needed. Some questioned if highrise building will make the traffic jam even worse than today. Some say that Plaza OUG should continue to operate. Actually it is a question of sustainability. 4 questions to ask about sustainability and this is not about Plaza OUG but for all older buildings which is in need of a full makeover.

#1 – Is the building still popular among visitors?

We could just take a look at the types of shops there and whether they are doing the usual high volume retail or they are there because the owner of the shops felt that they could pass their time and still gain some money every month. There’s a similar building in Ipoh too called Yik Foong Complex. It’s also where I used to roam with my good friends. It’s in a sorry state and there are very few visitors even on weekends. The shops there may be there because they have been there for a very long time and if the owner is already at the retirement stage, there’s no need to do too much already.

#2 – Can the building be popular again? Placemaking possibility?

If a mall concept is no longer applicable, could it be turned into something else? Perhaps the building management could get a big anchor tenant, say Decathlon and the building will now get a newlease of life? Then again, the building must also pass all the stringent requirements of the anchor tenant and the building management may not have the financial resources to make it work. By the way, anchor tenant could be anything yeah.Can even be a hotel operator perhaps? Basic idea is, does this building have what it takes to be popular again?

#3 – Is the owner looking to maximise the potential for the building / land which it sits on?

Many times, some buildings which are old but still in good condition may also be demolished for a new development. The reason is a simple one; profitability. The building owner could collect rental per month from all the shops and continue to be happy or the building owner could sell the land to a developer who could build something with a GDV of a few hundred millions and share the profits with the building owner. In this case, what has happened is that the building owner may have all the rental they should be getting in say 10 years in 3 years… Or more. An old building’s slow yield cannot beat the potential quick profits from a development worth a few hundred millions or even a billion ringgit.

#4 – Is it sustainable, if the owner wants to retain it?

The issue with old buildings would be the wear and tear and when there’s wear and tear, maintenance cost would rise. Could the owner actually maintain the building in tip top condition with the rental / profits they were getting? If the maintenance cost could barely be covered by all the money the owner gets, then it’s not sustainable. The owner may then start to cut corners on the maintenance and because of this, the current tenants may move to a new place and this will make the situation worse as the owner would now have lower rental income. The vicious cycle continues until the owner decides to do something else with the building.

Conclusion

As they say, memory lasts forever. Well, buildings do not. They will only last as long as it is still sustainable. Else, it would have to be replaced with a more sustainable development.  Would the new development built on top really be more successful than the development it replaces? That is another question altogether. It would be something which the new development would have to do careful analysis prior to executing their development plans. Again, the question will be sustainability.

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‘Old’ Kuchai. Bigger units and affordability?

KL property market continues to offer wide range of choices for buyers, especially with more people moving into KL for work. Let’s look at Kuchai Lama today. I have visited Kuchai Lama a few times. Once for a Toastmaster’s meeting. Once for lunch with a group of colleagues and twice to the NSK supermarket there. I would rate it as a mature area. As per my usual measurement, it’s only 11km from KLCC in Jalan Ampang. In other words around 15 minutes during non-peak hours. As a mature area, it meant that this area has many older flatsand even single storey terrace houses. Condos came later and today, it’s actually still relatively affordable especially for the size versus price. Take a look at the prices for the bigger condos. (Source:
propertyguru.com.my
)

The most significant landmark today would be Kuchai Entrepreneurs Park. You can also take a look at what
propsocial.my
 has compiled for Kuchai Lama. (image on the left). As at today though, there are no MRT stations passing through but Kuchai Lama would have its own station under the
MRT Line 2.
 There is now another condominium project being launched in Kuchai Lama. It’s called genKL and it’s a joint venture between Juta Asia Corporation and Singapore’s CapitaLand. During peak hours, access in and out is definitely jammed but there are many connections including the Federal Highway, Shah Alam Highway (KESAS) and the New Pantai Expressway (NPE).

Total units would be 332 on a 30-storey high rise tower and there would be total of 7 units of 3-storey villas with a pool view, naturally ventilated lawn and garden walk. Sizes start from 1,150 sq ft all the way to 3,184 sq ft and and it’s clear that this would be targeted at families. Bigger units would be sufficient for even two generations or more. It has one thing which I would love to have, a 50-metre infinity lap pool. Besides this, it would also have a landscaped viewing deck that looks out to the terrace walkway, an outdoor fitness corner and indoor gym, a playground and a playroom for kids.

I have not yet found any pricing for the units from formal sources but I think based on the specifications and the developer, it would carry a premium over the existing condominium projects there. It should be launched pretty soon as the completion date is said to be in 2019. So, fancy Kuchai Lama? Your multi-generational home may have another choice soon. Happy reading.

written on 19 May 2016

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That ‘old’ property thoughts needs to be renewed

2015 was not a great year for developers.
H1 2015: Malaysia overall residential property market
 Some still hit their targets but many were not thrilled. 2016 may be another similar year. A few things differentiating the more successful ones where selling is concerned versus some still struggling to sell includes reputation, price, location and last but not least marketing and promotions. Last month, I met a Director of an advertising firm. He shared with me a story of a developer whose marketing department repeatedly tried to share the benefits of online but the management said NO. The management’s reasoning was that they have been in the business for a long time and that they were able to sell without online’s help previously. Last but not least, they said they already have a company website.

These days, due to the scarcity of prime pieces of land, developers are building further away.
Staying further is a fact of life, everywhere

Connectivity is being improved but the mindset about certain areas are not easy to change. Online is the only way fast and mass enough to quickly tell the world about it. Articles in newspapers may help but sharing is tough. A well written article online could however be shared fast and a website URL allows people to know more. As a buyer, I no longer buy without referring to my good friend Google for additional information. Seriously, we do not even buy a smartphone without checking about its reviews online these days, except buyers of iPhone. 🙂

With ‘affordability’ a factor, the sizes of new homes both landed or high-rise are becoming smaller. Read here:
Only smaller units can be affordable
 In other words, the number of units to be sold is up. Total number of buyers needed are much higher. With stricter lending requirements, the loan rejections are increasing and thus selling 1,000 units of 850 sq ft apartments may require 2,000 buyers or higher. I hope everyone do note that these days, many developments are easily over 1,500 units and recently my friend said, ‘1,000 units? Wah, considered low density.’ It’s not hard to understand why. Same piece of land, used to be 1,000 units of 1,100 sq ft. Today, same piece of land, 850 sq ft meant 1,000 units become 1,300 units. Due to additional costs arising from building more units, 1,300 is not enough, thus they build more.

With the
current sentiment
, it’s an uphill task if the target group remains the same. For example, the development may be in Kepong but it’s no longer enough to target just the neighbourhood. Billboards may be effective but putting up billboards beyond Kepong is going to be cost prohibitive. With the right online exposure, perhaps Kepong can be a centre of attention too so that more people are aware of ‘why buy Kepong.’ It’s not enough to sell ‘affordability.’ The focus should also be on the ‘desirability as well’ Else, buyers would only stick to places they know best. This is where engagement with more online medias help, beyond just putting up one online advertisement and believe that’s enough.

In conclusion, the most important thing is not a debate of which media is better. Read here for an earlier view:
Buyers today, property fairs today and ignorant developers

 It should be a question of how many media should be used for the maximum effect faster. Selling faster is extremely important these days so that the developer can then move on to the next phase which is to start construction. There’s just too many new projects coming up and most of the time, the newly launched ones tend to attract more attention compared to the ones launched a few months earlier. Still refuse to believe that using more media is necessary? Happy selling.

written on 17 Apr 2016

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Old town white coffee,  the chains

If you know the history of white coffee,  you would realise that there were no penang white coffee,  melaka white coffee or even petaling street white coffee and definitely no nescafe white coffee.  To me white coffee originated from ipoh and the best white coffee will always be Ipoh.  Whatever taste you may come up with,  if it is too different from the original then you are no good.

Imagine someone in JB simply fry a different type of char koay teow and said this is original penang char koay teow.  Even if it tastes good but it is very different taste from the typical penang char koay teow,  are you going to now recognise it as a different variety of penang char koay teow?

There has been many complaints the old town franchises have a huge quality difference between branches.  I agree.  However,  I would always encourage you to drop by and.drink the real ipoh white coffee.  Alternatively lots of other great choices of white coffee in Ipoh. White coffee? Not in Penang please.

written on 14th dec 2013.

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Want to buy a condo in the Olympic Village? Here’s your chance.

Tokyo Olympics have just ended on a good note. I do think this is the Olympics which is the hardest to organise because it was organised during a pandemic, Covid-19 pandemic. Now that it is over, what happens to the Olympics Village condos which the athletes stayed during the games? It will be sold to buyers and according to an article recently, the prices are also considered very attractive too.

Article in nst.com.my
 Rising prices for Tokyo real estate are making the Olympic Village condos in the Harumi district near Tokyo Bay an attractive proposition. The development is called Harumi Flag and there are more than 5,600 for sale.

A total of 10 real-estate firms, including Mitsui and Mitsubishi Estate Co., developed the project.

According to Tokyo Kantei Co., a property research firm, average listing prices for used condos in the city central districts were up 11 per cent in June from a year earlier, at 91.5 million yen (US$829,000). By comparison, the average price for a 72.9 square meter (785 square feet) property in the former Olympic Village is 57 million yen.

Koki Ozawa, an analyst at SBI Securities Co. said, “They’re much cheaper than properties located closer to stations, and that makes them very competitive.”

“We don’t consider any of these properties to be discounted,” said Satoshi Katsuki, the manager in charge of residential projects at Mitsui. “Considering their location relative to public transport, we think the prices are appropriate.”
 Please do read the article in full, with more details.

Tokyo will always be a very nice place to visit

By the way, it does seem the price even if it seems attractive is certainly out of reach for most people yeah. Unless of course their earning power is much higher than even many of the Japanese working in Tokyo. Average salary in Tokyo in 2021 is around 325,000 yen per month and this is around US$3,000. (RM12,720). Hope you know why I say the price is high?

Anyway, property prices in Tokyo has always been high. My ex-General Manager told me that when he was still based in Tokyo, everyday he will travel over 400km to go to work. However, he was taking the shinkansen (bullet train), so the to and fro journey was less than 2 hours. That was his life then and he was already a senior manager.

However for those who did not know about this and now has interest to buy, do do and search for the info online yeah. kopiandproperty.com has no connection to any real estate firm selling this property. Happy visiting Tokyo when we could travel easily again. Perhaps that would be in 2022 2nd half of the year.

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Has Omicron wave peaked?

Has Omicron wave peaked? Safety precautions must continue.

I have not brought my family out for meals in restaurants for the past 2 weeks. I think it’s my responsibility to keep my family safe. Omicron is weaker than Delta as many studies have suggested but it’s very much more easier to get infected and no one knows what is the final outcome.

My wife and I have received our booster shots. My kids, both below 12 have also received their first shot as well 2 weeks ago. We are well protected but we continue to take precautions. We continue to wear masks properly. We continue to avoid any places with lots of people. I think majority of Malaysians are doing the same; booster shots taken and all the precautions. Perhaps the Omicron wave is weakening already from some recent indications.

Article in theedgemarkets.com
   Health Minister Khairy Jamaluddin said it is too early to say if Malaysia has gone past the Omicron peak. In a tweet on Monday (Feb 28), Khairy said the country’s daily Covid-19 infectivity rate (Ro/Rt) had steadily come down to 1.05.

Article in nst.com.my
  Health Minister Khairy Jamaluddin proposed the standard operating procedures (SOP) for the country to reopen its borders at the Covid-19 Quartet Ministers Meeting today. Khairy says that he had also recommended the SOPs for congregational prayers at mosques as well as the regulations on operation hours for restaurants to be reviewed.

Article in theedgemarkets.com
  Only 186 cases or 0.81% of the 23,100 new Covid-19 infections recorded in Malaysia on Monday (Feb 28) were in Categories 3 to 5. Health director-general Tan Sri Dr Noor Hisham Abdullah said the remaining 22,914 cases (99.19%) were mild and asymptomatic infections in Categories 1 and 2.

Article in nst.com.my
  Travellers under the Malaysia-Singapore Vaccinated Travel Lane (VTL), One Stop Centre (OSC) and those from the United Kingdom (UK) no longer need to undergo the one-week Covid-19 tests after arrival starting Thursday. (2nd March 2022)

Article in thestar.com.my
  Malaysia’s Foreign Ministry said that it was negotiating with 12 countries to implement the Vaccinated Travel Lanes (VTL). These include Brunei, Indonesia, Singapore, Vietnam, Thailand, Australia, China, India, Japan, New Zealand, Korea and the United Kingdom.

If Omicron is not considered under control…

Reopening our borders will not be something we actively pursue and furthermore it’s with 12 countries. Perhaps even more in the near future. Number of Categories 3 to 5 would start getting higher and not the current low numbers. It’s a fact that everyone of us would have a friend who is Covid positive.

However, it’s also a fact that most who caught it would soon recover if they were fully vaccinated and has no health complications. Testing requirements for 7 days would have been continued if those tests have revealed something negative.

Yes, looking forward to better days ahead for 2022. Yes, I already have a few coffee sessions planned starting next week too. The plan to travel more in 2022 remains intact. Stay safe. Cheers.

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On-Hold. Penang International Airport’s expansion to handle 12 million passengers.

In 2019, Penang International Airport (PIA) handled 8.53 million. This was way above the designed capacity for PIA which is 6.5 million per year. It was supposed to undergo an expansion project in 2020 so that it could handle 12 million passengers when it is completed in 2024. This was also announced in the Budget 2020 by then Finance Minister Lim Guan Eng. Due to the COVID-19, the number of passengers in PIA has dropped to just 170,000 as at June.

Article in malaymail.com
 transport Minister Datuk Seri Wee Ka Siong said that the Penang International Airport (PIA) expansion project announced in Budget 2020 has been stopped pending the National Airport Strategic Plan (NASP) study due for completion in 2023. He said that the NASP was needed as tourism and aviation were among sectors most affected in the Covid-19 pandemic.

He also shared that the NASP study is needed because the study was to streamline the development of all 42 airports in the country. He said, “For House’ knowledge, the Kedah state government has also planned to build a new airport. We have 39 airports under MAHB (Malaysia Airports Holdings Berhad) and 3 privately operated. Altogether 42 airports and they needed standardisation and good coordination.” Do read the full article here.
Article in malaymail.com

I guess it will really take some time for tourism to really roar back into those same passenger numbers in 2019. In fact we are seeing that the countries which have seemingly been successful with COVID-19 control has seen their numbers increase and this do look scary. Vaccines from Russia is said to be in production but this not yet been approved by World Health Organisation (WHO). Thus, it is unlikely that we will suddenly recover from COVID-19.

Positive point is that within this year, a few more vaccines are likely to be approved. They will come from many countries including the U.S., Britain, Germany and closer to us would be China. At least we would have more choices and hopefully the production of these could ensure supply is enough as soon as it could start. We will just have to watch how all these unfolds because it holds the key to the tourism recovery and with it the need for any airport expansion to be considered again critically.

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Once you rent high, you may never buy

Property Insight Malaysia asked an interesting question. Should you rent or buy? To be honest, I would buy anytime. If I could not afford the places I want, then I buy 5 minutes away from the places I like. If I still could not find, then I would buy 15 minutes away. The question today is not on whether I’d rent or buy. Today, we will talk about, if we are renting and we would like to rent at places nearby, live very comfortably; fully renovated, fully furnished, the truth is, we may never buy. Haha. Yes, it is true. Let’s see my three reasons for saying so.

Just too used to it. You come home, the guard salutes you and smiles. He knows you by name as you have been staying there for the past 6 months. You parked your car, which happened to be just 15-20 steps away from your doorstep. You unlock the door, switched on the light and your smartphone starts using the broadband connection in your home. The remote was where you left it, you switched the tv on, grab a can of kickapoo from the fridge, sat down to watch the live football match from ASTRO. All these were included into your rental of RM2,600. You think it’s worth it, because ASTRO would already be Rm150, broadband is another RM150, all the furnitures, the electrical goods etc, surely, Rm2,600 is worth every cent!

Just can’t and could not. Buying a property of your own is not something easy. The great ones may not be at places you want. The expensive ones may just be above your current rental that you are paying. The cheap ones may not offer you the same comfort, convenience and quality you expect to have. In case you are still wondering why the rental that you pay can still be lower than your mortgage payment, do note that many years ago, the price that your current landlord paid for his condo was much lower, thus he is able to cover his mortgage even with your rental today.

Why bother. Within past 16 years of my working life, I have moved house 8 times. Yes, it’s crazy. The first half was all due to rental. The second half was because I was upgrading which is a good thing. However, even after having so many experience, let me tell you that it remains tough and if you are really thinking of moving, if you have been renting and accumulating so many things in your rented property for many years, you will faint. If you do not believe in property investment and is doing very well on other types on investments, why bother. Just stick to what you feel good about.

The above is applicable only to those who are renting at a premium and have everything included. This is not aimed at those who are renting a bare unit and have to make do with the least requirements that you would expect. So, it’s easy to see clearly, why after you have been renting for a while, it will be tough for you to buy.

written on 9 June 2014

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One day the average home price will reach RM1,000,000.  Are we ready?

What’s the average home price today? Well, it’s still below RM500,000 even for landed homes. Could we afford a RM1,000,000 home? We will look at the actual numbers below.

Shelter is a need

Shelter is a need. It means that everyone needs one. This is why when any calculation about living cost is made, they do not just look at the cost of food because that is way smaller versus the cost of having a place to stay, to feel safe and to really rest so that we can start the next day refreshed. This is also why many people struggle to save enough for a home, to buy a home and to continue paying for a home for the next 30 years.

Hedge against inflation

Congratulations to everyone who has already taken this first step to secure a place to stay and to hedge against inflation. Our first property may have been an affordable property. It could have been RM123,000 for an apartment of 730 sq ft. That’s my first property. In Malaysia, the average house price based on the latest available data is as per image below. Briefly, it ranges from RM339,039 for a high-rise unit to RM406,000 to a terraced home and then up to RM661,000 for a detached home.
Info is from NAPIC.

Would it eventually reach RM1,000,000?

Is this expensive enough yet? If one day the average house price reaches RM1,000,000 could we actually afford them? By the way, if we were to tell the people who bought properties for RM85,000 in 1989 that their property will become RM540,000 one day, they will laugh at you. This was my home in Ipoh. If someone were to tell us that buying a high rise at RM180,000 in 2008 and we could sell it at RM460,000 many years later, we would laugh at them too. This was my high-rise unit in Kelana Jaya.

This is why we must stop laughing at some super high numbers. The reason is a simple one. It’s called INFLATION.

Inflation will eat up the value of our money

With the value of money getting ever smaller, the price will move up to compensate for the smaller value. Thus, we may think RM1,000,000 is huge today but in 20 years time, this RM1,000,000 may only be the same value as RM500,000 today. Anyway, do we know why some Malaysians could already afford a RM1,000,000 home today? The calculations below show the reason why. This mortgage calculator is from
calculator.com.my

Monthly repayment is affordable to some Malaysians

RM3,892 is affordable enough for a combined household earning a net income of RM12,000 per month because it’s just 32% of the household income. As long as this household does not drive two Segment D cars which takes away RM5,000 of their salaries every month… It’s also affordable if this household does not have high credit card debts which are crippling their finances. It’s also affordable for all the T20 households and successful entrepreneurs. This is why every year, we do have transactions for homes which are RM1,000,000 or higher.

Do we have to buy a RM1,000,000 home?

The answer is it depends on you. A home sweet home is one which we could afford easily and provides us with all which we need. This is why it’s much more important to understand what we need and then decide versus looking at the location first before deciding. A popular location does not mean it’s the location which could fulfill your need and yet you will have to pay a premium for it because of the demand and supply equation.

Just need to remember that at the same time, prices may also rise faster too at these popular locations. Happy buying and one day majority of everyone may just look at a RM1,000,000 home like how we are looking at a RM500,000 home today.

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One Family One Home. Availability, Affordability, Accessibility, Quality and Liveability.

At least one property, please.

I always encourage everyone to own at least one property. My view is a very simple one. Unless one is able to earn exceptional incomes, they need to be ready with the money to keep paying rental forever. From this generation to the next one and the next one and well, never-ending rental. Unless of course one day in the future, we can just stay anywhere we want in the whole Malaysia despite working in KL. 😛  Then, maybe can stay in Ipoh and work in KL? Ipoh to KL is just 198km actually.

Travelling 400km to and fro work daily?

FYI, my ex Japanese GM travels over 200km daily to work and another over 200km home after work. he was working in Tokyo city. The reason? He was using the bullet train which travels at 300km per hour. So, that journey of 200km is 40 minutes. Maybe the same or lower than if we were to drive to work every morning.

Since bullet train is not happening so soon, perhaps this One Family One Home looks more promising. The news as below.

Article in edgeprop.my
   Housing and Local Government Minister, Datuk Seri Reezal Merican Naina Merican said that the National Affordable Housing Council (MPMMN) today agreed to set a target of ‘One Family One Home’ in its mission to provide affordable housing in the country.

Ministry of Housing and Local Government (KPKT) currently has its Home Ownership Programme (HOPE) and it’s focused on availability, affordability, accessibility, quality, and liveability for the homes.

Reezal Merican added that KPKT is currently developing housing mapping, to enable the provision of affordable housing to be adapted to the capabilities of the locality. Do read the full article here:
Article in edgeprop.my

Let’s briefly look at the right focus

Availability – Yes, there has to be completed units, else let’s not talk about whatever targets. However, availability MUST be preceded by all the other factors yeah.

Affordability – I just replied a few days on this. “Even IF certain area is considered a great place to buy, it is foolish to overpay for the property. Else, how are we going to sell it in future or even get a rental which could cover the monthly mortgage?”

Accessibility – Aiming at public transportation also meant that the homes are aimed at maximising this versus trying to build a lot of car parks within the project, thereby increasing costs and even reducing the space available for actual units. Stay focused. What do we want to achieve?

Quality – I have written before. More facilities does NOT mean it’s better. What’s important is that the facilities built are the durable ones and good for the community. Do not look too far, look at HDB flats for clues. There is no need to build homes which have same facilities as those which are priced higher and then in the near future, the maintenance becomes an issue.

I hope…

I do hope whatever is planned will become a reality because a household without a home they can call their own means they will be poorer when they rent than the ones who bought and for the first 30 years, both seems to be paying and paying and paying but only one will eventually own the property 30 years later and stop paying. Be savvy to this fact. Else, hope that Malaysia will have bullet train networks like Japan perhaps? Erm…

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Nearly one million civil servants do not own a home

My parents were civil servants. They were both educators. I think it’s a noble profession. They told me before on how tough it was to obtain a government loan to purchase a home when I was still too young to understand. In the end, they struggled through their first home purchase and the second one was with government loan. All my uncles and aunties who are civil servants also own home(s). One aunty is now at ‘Pengarah’ level which seriously would allow her to buy many of the properties on offer currently. Anyway, I always believe that due to the stable income nature, civil servants should be able to own a home. I am wrong.

I think it’s alarming when it was reported in Bernama that 960,000 out of 1.6 million civil servants were unable to own a home. This is as per Cuepacs president Datuk Azih Muda. In percentage, it’s 60 percent and out of this number, 75 percent are aged 40 and below. Seriously, 960,000 meant that even at a ratio of 4 to 1 home, Malaysia needs another 240,000 homes. All these must be very affordably priced because a typical civil servant would definitely not be looking at those RM550,000 homes or higher. In fact, even majority of those in the private sector would not be able to look at anything above RM550,000.
That explains much of the slightly smaller sized homes and higher density to push the prices per unit to more affordable levels.

I personally believe RM500,000 or below is still considered okay because most of the time, people are buying as a couple when they get married. At least, I did. Azih further stated the following, “The Government must also play a role in controlling house prices and build more affordable homes.” To be honest, I do believe everyone must do something about it. Relying on just the government and waiting until ‘forever’ for that unit we would regard as perfect is not the best option. This is especially because those who do not own a home yet are below 40 years old which meant that they could still try to stretch the loans over a longer number of years. If however they wait just 10 more years, the term ‘affordable’ is going to be just a distant memory. Furthermore, they can choose to buy further, as long as there are those new LRT or MRT stations. There is NO NEED to buy next to these stations. What about just 10 minutes radius away? That’s already going to be huge number of choices.

My wish is however the civil servants would read more, understand more and make good decisions. Just reading kopiandproperty.com would already provide some basic understanding. Buying a home is totally different from getting a new car. One ensures our future, the other makes us poorer depending on how much we actually paid to buy and maintain it. Happy working and hopefully saving enough as quickly as possible for a home.

written on 5 Apr 2016

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Honestly, is ONE property enough today?

The first time I told my parents that I was buying my second property, their first remark was, ‘is there any problem with your current home?’ That was many years ago. Their understanding of a property is that of a
home sweet home.

Simple right. You save, you buy, you stay and if can, let your children stay in future. True? Can be true if the home happened to be in an expanding city like Penang, KL, JB. Not true if the home happened to be in a small secondary town or even in a village which you go home only once a year after you have started working. Thus, the question is, ‘Is one property enough today?’ According to a HSBC survey, it has found out that many employees in Malaysia see a second property as a very important investment to ensure
they retire better.

I think their survey is true for only the minority of all home owners. The reason I say so is because
majority of everyone does not yet own their first property.

Thus, the survey would not cover them, yet. Yet, this survey shows something else too. Those who has bought their first property would most likely go for the second and these are the people who would retire much more comfortably later on compared to those without or even those with just one property. Think along the lines of one property bought at just RM500,000 today and rising to only RM1,000,000 25 years later. Yea, by then RM1,000,000 may be smaller in value than today but I still think it’s far better than someone without a RM1,000,000 extra property to their name. Agree?

Yes, some would now ask how sure am I about a RM500,000 property becoming a RM1,000,000 property in the future? Truth is, I have no idea. Do you? Some would even argue that if they save RM500,000 in FD today, it should easily become RM1,000,000 in future. Hey, this is also true! The only issue, do we already have RM500,000 today? If someone has already accumulated RM500,000 today and does not simply spend but simply invest in the usual unit trusts or even some blue chip counters, I think it should also easily hit RM1,000,000 in 25 years. My personal conclusion for myself, one property is certainly not enough today and for future. Happy investing.

written on 22 Feb 2015

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I own one set. 100 years of significance.

I am 60 years away from becoming a 100-year old man. Haha. However, it does not mean that I should not celebrate something of significance right? Yesterday, I managed to get myself one set of commemorative coins issued by Bank Negara Malaysia. (BNM). Do refer to the image for my own set. I would not say that the crowd was huge but when I was on the way out after buying the set, there were a few minor ‘debates’ between some interested buyers and BNM’s officials on their eligibility to buy. Well, if they had arrived on time, they would have been given the ballot number and be eligible to buy. Simple rules. Actually, it’s pretty nice and this is the first time that I have invested in such a set. Please do not ask me how much it will become next year. Perhaps when my daughter sells it 10 years later, it may give her a nice family dinner? Haha. Inflation will also play a part mah. Let’s look at BNM’s own press release as below:

— start of press release —

100th Anniversary of the Malaysian Palm Oil Industry

Ref No : 08/17/07 07 Aug 2017 Embargo : For immediate release

Bank Negara Malaysia has issued commemorative coins in conjunction with 2017 being the 100th Anniversary of the Malaysian Palm Oil Industry. These commemorative coins were launched by YB Datuk Seri Mah Siew Keong, Minister of Plantation Industries & Commodities at the Museum and Art Gallery, Bank Negara Malaysia, Sasana Kijang, Kuala Lumpur on 27 July 2017.

These commemorative coins will be available for sale from
Wednesday, 9 August 2017
at Bank Negara Malaysia’s Museum and Art Gallery (MAG) and offices located in Penang, Johor Bahru, Kota Kinabalu, Kuching and Kuala Terengganu.

Public Balloting

Bank Negara Malaysia will be selling the commemorative coins by means of public balloting to ensure fairness in distribution to intended buyers. Orders will be accepted from 7.00 a.m. to 11.00 a.m. on 9 August 2017 at the sale locations. All orders will have an equal opportunity to purchase these coins through the balloting process. As the sale is not on a First-Come-First-Served basis, members of the public are advised not to queue earlier than 7.00 a.m. Public balloting is expected to begin at 11.30 a.m.

Details of the Sale and Public Balloting

Date

Wednesday, 9 August 2017

Mode of Sale

Public Balloting (not on a First-Come-First-Served basis)

Schedule

7.00 AM          Registration of Orders Opens

11.00 AM        Registration of Orders Closes

11.30 AM        Balloting

2.00 PM          Announcement of Results and Collection

Maximum Purchase Limit

1 unit of Set of 2 (Coloured Silver and Nordic Gold)

1 unit of Coloured Silver (proof)

3 units of Nordic Gold Brilliant Uncirculated (B.U)

Payment Mode

Credit / Debit / Charge Cards are preferred and cash

Dress Code

Proper attire for office environment

Coin Specification and Pricing

Specifications of the commemorative coins are as follows:

Coloured Silver Commemorative Coin (proof)

This proof coloured coin is made of Fine Silver with 99.9 purity and weighs 31.10 grams. It has a face value of RM10 and will be sold at RM230 a piece. The mintage quantity is 700 pieces.Note: Price stated is subject to GST of 6%.

Nordic Gold Brilliant Uncirculated (B.U) Commemorative Coin

The Nordic Gold (B.U) coin has a face value of RM1 and will be sold at RM10 each. The mintage quantity is 13,000 pieces.Note: Price stated is subject to GST of 6%.

These commemorative coins are also available in Sets of 2. The Set of 2 comprises the coloured silver and nordic gold proof coins. This set will be sold at RM280 per set (price is subject to GST of 6%) with 1,300 sets available. Detailed specifications of the coins are as per
Appendix I
.

Coin Design

The detailed design of the commemorative coins is as per
Appendix II
.

Bank Negara Malaysia

07 Aug 2017

© Bank Negara Malaysia, 2017. All rights reserved.

— end of BNM Press Release —

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One Stop Centre, Faster Affordable and Low Cost Housing – REHDA

My mother competed her IC application at 9pm. Yes, Evening time, 9pm. My baby daughter’s passport was completed within 1 hour on a Saturday. I remembered how long my wife queued to apply for a new IC after she lost her wallet. I queued for over 40 minutes for my passport application in Penang many years ago. In fact, even longer time ago, if you were willing to pay runners, you get your passport earlier than others. Today, if the difference is just 1 hour, would you PAY anyone? My ex boss complained online about his passport application taking over 2 weeks and there were still no response. He’s a British. Today, Urban Transformation Centres (UTC) are open until 10pm, even on weekends. If you have not heard of it, better google it and start using it.

REHDA Real Estate and Housing Developers Association Malaysia) is suggesting for a central National Affordable Housing Delivery Centre to handle all the issues on social housing, especially for affordable and low-cost housing. I hate to say this but until today, I still have friends who said that if you are willing to pay, there are still chances for you to get the unit you want. I think this may be a reason why this has been suggested. This is what its chairman of its board of trustees Tan Sri Eddy Chen Lok Loi said about the proposed centre, ‘to ensure timely and cost efficient supply’. He wanted the centre to be established under the Housing, Urban Wellbeing and Local Government Ministry and urged all parties should look at it objectively and based on a bipartisan approach. Main objective is only to ensure the smooth delivery of social housing.

Total new affordable and low cost housing that he is worried about includes 159,019 units under the following agencies: 1Malaysia Civil Servants’ Housing (PPA1M) (16,000 units), 1Malaysia People’s Housing Programme (PR1MA) (80,000 units), Syarikat Perumahan Negara Bhd (SPNB) (37,000 units) and National Housing Department (JPN) (26,000 units). These 159,000 units do not include yet those pledged by the various state governments, which varies from 15,000 to 45,000 units per state. To be added to this would be the mandatory affordable and low-cost houses imposed on private developers,” estimated at 50,000 units. He said the probability is there that those who intended to buy a PR1MA house might also qualify for others, all of which are subsidised units.  The central agency would prevent a potential misallocation of already scarce resources.

I seriously hope these suggestions may be taken seriously even if the chances of this happening is slimmer than slim. I think all of you would know why.

written on 16 Oct 2014

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