Penang: 375 acres and RM7.76 billion townships

Is Penang getting bigger? Well, reclamation wise there are plans but with its existing lands, Penang is geting bigger in terms of Gross Development Value (GDV). The latest one being announced is by Eco World in a joint development with Employees Provident Fund (EPF) is a RM7.76 billion development on a 375-acre piece of land. The land is in Batu Kawan, Penang (mainland area) and from this piece of land, there would be two townships.  The two townships are known as as Eco Horizon and Eco Sun.” Even though this is a joint venture project, it will be marketed as Signature EcoWorld developments under a brand license agreement. EW Bhd chairman Tan Sri Liew Kee Sin, said: “We are truly gratified for EPF’s support as we take on the challenge of transforming the development landscape of the Penang Mainland together.” Full article in NST
here.

The 300-acre Eco Horizon is situated at a location that is very near to the primary interchange linking the Second Penang Bridge to the North-South Highway right opposite the proposed IKEA. I drive past it every time I go Penang because I prefer to use the Second Penang Bridge. Eco Sun meanwhile is another 75 acres ofland along the Lebuhraya Bandar Cassia close to the Penang State Stadium. The developments would include gated & guarded strata townships as well as integrated commercial components. (Yes, if I were to buy gated & guarded, I would prefer strata-titled because I do not wish to have some artistic person changing the colour of his unit to something I could not bear to see everyday.) Both the Eco Horizon and Eco Sun are accessible from the Batu Kawan Interchange of the North-South Highway via expressway linking to the Second Penang Bridge and thence onto Lebuhraya Bandar Cassia. Besides this, it is also accessible from the Bukit Tambun Interchange of the North-South Highway via Jalan Bukit Tambun, Jalan Batu Kawan and thence onto Lebuhraya Bandar Cassia.

Should we stay in Penang mainland or within the island? This is not an easy question to answer but if I work in the island, I would definitely stay in the island instead of mainland. If I would like to have a good shopping experience, I think at this particular moment, I would also choose the island. However, an equivalent property in the island is more expensive than the one in the mainland. That’s a negative as a choice. Design wise, I think it’s clear that newer landed homes are definitely in the mainland and not as many within the island. Within the island, land prices are too high to build landed and being able to price it attractive enough. In fact, the prices of these landed homes within the island are definitely prohibitive to many. Are there huge number of Penangites ready to jump into the mainland Penang property market? I think the focus is better on the non-Penangites who are working in Penang instead. If you are a Penangite, please feel free to share your thoughts. Happy reading.

written on 24 Jan 2017

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Penang Affordability. You Choose, We Ballot.

It was an event where the ‘winners’ were happy. Of course, in any event, if you are a winner you would be happy right? Well it was a balloting event at one affordable homes project in Penang. Project Name: Ramah Pavillion. The developer is M Summit Group. Total units available would be 759. (Considered high-density in Penang but in Greater KL I would think anything above 1,000 units would be considered high density) Location is Teluk Kumbar, Penang and there are 6 types of units available. Size is quite generous, up to 1,350sf which is what I would consider a good size for a family of up to 5. For prices vs sizes, please refer:

Six ‘winners’ were picked and announced. I am not sure why only 6 when there are 759 units available but perhaps this is because the event was only a start and if balloting was done for all 759 units, it may take a very long time? We shall have to wait for more info but you can see the happiness from the smiles. State Exco for Housing and Town & Country Planning, YB Jagdeep Singh Deo officiated the event and said that Penang state is being very transparent with all their affordable homes project. In fact he mentioned that the applicants can even specify the actual project that they want. Of course, after you have chosen and the unit is allocated, you cannot say I want to change unit. 🙂

The developer, M Summit said that they are happy to contribute to the state’s efforts on affordable homes and that the profit margin for these projects are low. In fact he said Teluk Kumbar is a great location because a new highway is coming up and should be completed next year. This is an upcoming location and the prices for these units are expected to easily go up 60%. It meant that the current RM398k units may go up to RM640k. RM640k for a 1,350sf unit is indeed a very equitable price. In fact these new affordable units are expected to stabilise the market so that prices do not move up so fast.

I think Penangites who qualify should quickly register without delay. The prices vs sizes stated plus the location is in island meant that this project would be pretty popular when compared to the affordable ones based in Batu Kawan in the future. Oh yeah, Ramah Pavilion will be completed in 2018 which is just 3 years away. Happy registering and wishing you luck in the balloting.

written on 31 Jan 2015

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Penang affordability, higher units definitely

Penang state government was commended by the Real Estate & Housing Developers’ Association (Rehda) Penang chairman Datuk Jerry Chan. The latest affordable guidelines has made it easier for developers to build affordable homes in the range of RM200,000-RM400,000 range for first-time house buyers. Under a new housing guidelines introduced last year, developers are allowed to build 2.8 times or a total of 122,000sq ft of built up area on one acre. The whole 122,000sq ft can be solely for affordable homes. As an example, if the unit built is 900sf, the developer can build up to 135 units. This can also be a combination of 750sf, 900sf and even 850sf. In other words, if the land is a total of 5 acres, the developers can build a total of 610,000q ft. If they are only building 850sf ones, they can build up to 717 units. No wonder these days, many of the newer affordable projects are all considered high density.

With this new rule, we have seen many new developments in Penang being focussed on affordable projects. In fact some of these are also in good locations and the developers are those whom people associate as high end developers! Yes, I do agree with Datuk Jerry that when all these are completed, it will help to relieve some pressure of pricing on the mid-range houses priced between RM500,000 – RM700,000. Little worry about losses. Most of these RM500,000 – RM700,000 homes were bought for less than half previously anyway.

He further said that since the home buyer cannot dispose the property within five years for more than what they pay, it would be unfair to them as the buyer would have spent considerable sum to renovate. For this, I do not agree. Five years remain very acceptable to me and unless you suddenly hit a lottery and intend to move home, there is just little reason to sell. Affordable project is meant to help the buyer to afford a good place to stay. It was never meant to enrich them in the first place. We will see if the state listens to this suggestion or not. Happy registering and buying an affordable unit.

written on 14 Mar 2015

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Less than 1%: Penang affordable homes unsold. HOC probably extended.

Penang affordable homes. Latest Update.

Affordable homes is an issue which is important to every Malaysian who does not have a roof over their head and the rental they pay takes up a huge portion of their salary every month. Do note that poverty is also caused by property; lacking of one to call our own. Just imagine paying rental for the whole 40 years when one is working…  The amount paid on the day one retires may be something like below.

Rental (RM600) x 12 months x 40 years = RM288,000

By the way, after retirement, the rental continues yeah. So, if we retire at 60 and pay rental for the next 20 years, then it will be another huge amount. This is why even if the monthly mortgage payment is higher than rental, it makes financial sense to buy versus rent. At least at the end of the tenure, payment stops. Rent out one or two rooms and the rental is now a ‘profit’ versus a loss… Now, let’s look at positive news for Penang property market in terms of unsold units. Too many unsold units is not good yeah.

Positive news for Penang property market

Photo by wansan on
Pexels.com

Positive news for Penang property market. There are less than 1% of Penang’s affordable homes priced below RM300,000 which is unsold.
Article in nst.com.my
  State Housing, Local Government and Town and Country Planning Committee chairman, Jagdeep Singh Deo said, “In Penang, we have almost 3,000 unsold houses worth RM 2.9 billion but out of this number, only 0.8 per cent of affordable homes priced under RM300,000 are still unsold. We will try to assist this sector as it is important in ensuring cash flow in the market.”

He also shared that the Penang government plans to extend the Home Ownership Campaign (HOC) to 31st December 2021 because of the current Movement Control Order 2.0 (MCO) and imposition of Emergency which is expected to continue until August 2021. He says that this measure is aimed at helping new home buyers during this difficult time and it will also help economic generation in real estate sector. Please do refer to the full article here:
Article in nst.com.my

Conclusion

If the HOC is extended, I do think it will help first time home buyers since they could save a lot of money just from the stamp duty alone. Perhaps the only critical issue is whether there are the right properties for all these first-time home buyers. Many times, their expectation of a home sweet home versus what is being provided at the price they could afford may not be the same. This is one of the major reason why these first-time home buyer may still be waiting.

My personal advice? Be open. Penang is not just the island or just those few popular areas. Penang has mainland Penang and Penang has less popular areas too. By the way, with improving amenities, these not so popular areas may still have everything one needs within minutes too.

When I was based in Penang for the first 15 years of my working life, I have stayed in these areas: Greenlane then moved into the city centre (nearby Prangin Mall), moved again to a landed home on the same road as the Penang Prison, then all the way up in Batu Ferringhi,  moved down to Tanjung Bungah, moved to Relau to be near my office and lastly to Sungai Ara before moving to Kelana Jaya.  So, yes, I am definitely qualified to talk about where to stay in Penang versus anyone who’s stayed in Ayer Itam his whole life… Happy deciding yeah.

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Penang affordable homes? RM300,000 – RM650,000 lah

First of all, I always think Penang property market is a resilient one. It’s prices seldom fall once it goes up. I am not sure why, maybe it’s just a plain fact that Penangites are rich. I am not a Penangite. 🙂  Anyway, it was reported that Penang would soon have affordable properties worth up to RM4.7 billion entering the market within the next three years. When I read further, it was stated that the pricing was between RM300,000 – RM650,000 depending on the area and the sizes ranges from 850sf to 1,000sf. In other words, RM650psf or maybe even higher? Is it still affordable? My personal opinion is that RM600,000 and below is still quite affordable. Anything higher would be a little tougher but fortunately, RM650,000 is the highest point. According to Raine & Horne director Michael Geh, the pricing was in response to the current slowdown in the property market especially due to the high rejection rate for housing loans.

The developers for these units? They include Eastern & Oriental Bhd (E&O), Boon Siew Group (BSG), Tambun Indah Land Bhd and Ideal Property Group. A few of these names are more well known for their high-end projects in my personal knowledge but no harm. After all, many of the top 10 developers these days are also signalling their intention to go into affordable homes since there is an oversupply of the luxury ones. An interesting one would be E&O’s Tamarind high-rise project within it’s Seri Tanjung Pinang in Tanjung Tokong. I am very interested to know how competitive can the prices be for these units. Today, any of it’s existing condos there are RM1,100 per sf or higher and the buyers are normally the high net worth individuals. I think many are not staying there. 🙂

Meanwhile, there would also be some affordable units in the Batu Ferringhi area by Ivory Properties. The project is catered to newly weds and young adults. For this Batu Ferringhi one, it has to be more competitively priced compared to the Tanjung Tokong one because of the location. It may not that conducive if the couples are working in Bayan Lepas and has to travel from Batu Ferringhi to their working place every morning, especially with the ever increasing jams in the Tanjung Tokong area. Of course, the jams are still quite manageable except when there are accidents.

These days, affordable homes would be the flavour of the day. In fact when we look at the luxury units which are not lit in many of the projects in Penang, we should understand that the oversupply of such units are not just in Penang but also in Klang Valley and even more so in Iskandar. Note: Oversupply is not related to property bubble bursting. Oversupply simply meant that there are more units than there are demand. For property bubble to burst, the owners of these units must be desperate or the buyers in the whole market simply could not afford the units since there are the only ones available. Current situation is far from it. Within the secondary market and for older units, there are still many affordable ones. Thus, for the affordable homes, unless there’s a world crisis there’s no way it will fall suddenly. RM300,000 for a 850sf unit, if market is really bad, would it fall to RM200,000? Haha. I think if it does, the developer would just stop building and use the land to plant durian trees instead. Just kidding but RM200,000 would be too low to proceed. Happy queuing for these affordable units when they are launched next year.

written on 2 Dec 2014

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Penang Affordable Homes: Where and How.

The following information was published by
penangpropertytalk.com
 last week. In fact it has continuously publish many articles on Penang’s affordable homes. This is just to ensure more Penangites who qualify can benefit from it. The best part is that many people assume medium cost affordable homes are just high priced flats. Yes, even some bankers think so. Some still do not know where these affordable homes are. Some assume that they are only in the mainland due to the price which is not true at all. There are some at more popular areas in Penang island too. Total units are up to 22,545 divided into 12 different projects.

Registration under the state driven ‘Mission Home-Possible’ programme is available at the following schedule:

1. Chelliah Park City

Location : Jalan SP Chelliah, DTL

Floor Size : 800 sqft (883 units), 900 sqft (165 units) and 1,000 sqft (275 units)

Price : RM200,000.00 (800 sqft), RM300,000.00 (900 sqft), RM400,000.00 (1,000 sqft)

On-site Registration Date : 14 February 2015

On-site Registration Venue : D’Piazza Mall, Jalan Mahsuri, Bandar Bayan Baru

Contact : Mr. John Khaw (04-630 7734 / 5)

Zubicon Sdn Bhd

70-3-16, D’Piazza Mall, Jalan Mahsuri

11900 Bandar Bayan Baru, Pulau Pinang

2. One Foresta

Location : Bayan Baru, DBD

Floor Size : 900 sqft (2,685 units)

Price : RM300,000.00 (900 sqft)

On-site Registration Date : 6 – 8 March 2015

On-site Registration Venue : Ideal Property Show Room, 71, Ideal @ The One, Jalan Mahsuri

Contact : Mr. Teh (04-645 6888)

Ideal Property Group

71, Ideal @ The One, Jalan Mahsuri

11950 Bayan Lepas, Pulau Pinang

3. Tri-Pinnacle

Location : Tanjung Tokong, DTL

Floor Size : 800 sqft (859 units)

Price : RM299,990.00 (800 sqft)

On-site Registration Date : 7 & 8 March 2015

On-site Registration Venue : G-Hotel, Persiaran Gurney

Contact : Andrea Lee (04-227 5000)

Aspen Group

17, Green Mansion, Jalan Birch

10250 Pulau Pinang

4. Ramah Pavillion

Location : Teluk Kumbar, DBD

Floor Size : 800 sqft (92 units), 950 sqft (154 units), 1,050 sqft (106 units), 1,150 (149 units), 1,250 (221 units), 1,350 (37 units)

Price : RM198,000.00 (800 sqft), RM268,000.00 (950 sqft), RM298,000.00 (1,050 sqft), RM328,000.00 (1,150 sqft), RM358,000.00 (1,250 sqft), RM398,000.00 (1,350 sqft)

On-site Registration Date & Venue :

7 & 8 February 2015 / 28 February & 1 March 2015 : Balik Pulau Market

11 – 13 February 2015 / 24 – 26 February 2015 : Bayan Baru Market

Contact : Mr. Moh (04-229 2232 / 04- 291 7921 / 04-291 7915)

M Summit Group

Unit 1, Tingkat 3, Wisma Penang Garden

No. 42, Jalan Sultan Ahmad Shah

10050 Pulau Pinang

Of course if you wish to register at the developer’s office, it is also possible. They will then forward your completed forms to the State Housing Department for vetting purposes. Only those who are eligible will be accepted. Please note that the registration is FREE OF CHARGE.

What is required for registration?

Photocopy of applicant’s identity card and their spouse

Photocopy of certificate of marriage / sijil nikah / statutory declaration of marriage

Photocopy of certificate of divorce or death certificate of spouse (if relevant)

Photocopy of children / dependents’ identity card or birth certificate

Confirmation letter of employer / photocopy of pay slip for both applicant and spouse

Employee’s Provident Fund (KWSP) statement of applicant and spouse

Letter of confirmation from KWSP if the applicant or spouse are not EPF contributors

Statutory declaration of income for applicant and spouse (for those running their own business / working on their own)

Photocopy of business registration certificate / trade license (for those running their own business)

Form B of Income Tax (for those running their own business)

Photocopy of OKU card (if relevant)

Letter of confirmation by employer confirming residence of at least 5 years in Penang

The eligibility criteria for applicants for affordable housing, are as follows:-

must be a Malaysian citizen

born in Penang, working in Penang and a registered voter in Penang; or having resided in Penang for at least 5 years as at the date of application, and a registered voter in Penang

21 years old and above

nett household income of not more than RM2,500 for low cost units

nett household income of not more than RM3,500 for low medium cost units

nett household income of not more than RM6,000 for affordable housing units under RM200,000

nett household income of not more than RM8,000 for affordable housing units under RM300,000

nett household income of not more than RM10,000 for affordable housing units under RM400,000

for low and low medium cost units, the applicant must not have owned any property in Malaysia

for affordable housing units, the applicant will be given priority if he or she does not own any property in Malaysia but if they have owned either a low or low medium cost unit, the applicant may still be considered

Other information can also be viewed at:  http://www.penangpropertytalk.com/affordable-housing/project-information-location/

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Penang affordable properties – 51,238 applications!

I must share this news about real demand; Penang affordable properties. Total applications are over 51,238. Recently a few friends said that the property market in Malaysia is made up of all speculators. This is despite the fact that 84% of all home mortgages are for one property. Then, they said it must be the remaining 16% which bought up all the rest. Yeah, perhaps even those speculators are buying in cash and therefore not shown? 🙂  Anyway, coming back to real demand which I have always been saying. The demand slowed down because properties got unaffordable and people are unwilling to buy one level lower. That’s why transactions stopped. Sellers are also holding on too which somehow meant that these people have holding power, for now.

In Penang, a total of 51,238 people have applied for the low-cost, low medium-cost (LMC) and affordable housing units. 24,399 people applied for low-cost units, 23,582 for LMC and 3,257 for affordable units. The first apartment I bought in Penang was a LMC. At that time, I do not need any help from the state. RM123,000.  Today, the state has to step in to ensure those who needed them, gets them, at least in a more transparent queue. Another good update is that the work on the first phase in Bandar Cassis, Batu Kawan which consists of 149 LMC units and 371 affordable units already started last year. In other words, these people may get their homes by 2017. More would be starting end of 2014. They are projects in Teluk Kumbar, Jalan S.P. Chelliah, Bandar Cassia Phase Four and Kampung Jawa in Butterworth. Next year, the projects in Jelutong, Pintasan Cecil, the Sandilands foreshore in Jalan C.Y. Choy, Bandar Cassia Phase Seven, Ampang Jajar, Mak Mandin and Bukit Mertajam will start. As for the final two phases in Bandar Cassia, it will start in 2016.

I am sure all these projects combined would yield a few thousand units if not more. However, 51,238 applications is really a lot. Assuming, just half of these qualifies, it would take 2.5 years of the whole market’s new supply to cater to them. Personally however, I feel that the mentality of a lot of Malaysians must also change. My close friend told me that her mother’s friends told her mother to apply for the LMC since she qualifies. She can then resell the units once she has gotten them. Her mother said NO. Why should she take one away from those who truly qualifies. I think this is mentality that has to change. A roof over your head is something precious and not something that you try to profit from. In fact I continue to hear of stories where someone got these units by paying ‘extra’. Just hope this continue to be lessened continuously.

written on 25 Aug 2014

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Penang agents most worried about COVID-19 second wave.

Press release from Juwai-IQI.

Most of Members of the Malaysian Real Estate Industry Not Too Worried About COVID-19

Industry in Sarawak and Penang Most Worried. Johor Least Worried.

Fifty-nine percent of members of the Malaysian residential real estate industry say they are ”Moderately,’ ‘A Little,’ or ‘Not at All’ worried that Malaysia might experience a second wave of infections requiring another Movement Control Order (MCO). That is according to a new Juwai IQI survey of 344 Malaysian real estate agent panelists.

By contrast, 41% are more concerned and say they are ‘Extremely’ or ‘Very’ worried.
“The least worried state is Johor, where not a single respondent reports feeling ‘extremely’ or ‘very’ worried. Sixty-three percent of agents in Johor are ‘moderately’ worried.

Kashif Ansari, Juwai IQI Executive Director, said:
“The results highlight how seriously the real estate industry is taking the pandemic. Even though Malaysia is one of the countries that has best managed COVID-19, we all know that we have to continue to be responsible to avoid fueling new outbreaks. We all have to practice disciplined safety measures. In the real estate industry, that also means using technology to accomplish things that used to require meetings.

“After having gone through the first MCO, I think no one wants to see the country have to lock down like that again.

“Compared to other countries, Malaysia has done a remarkable job. This has put Malaysia on the world map, making it a great country for medical tourism and an attractive investment destination.

When we came out of the MCO, the government warned us all to be disciplined so we don’t give the virus another chance to spread. So, far, it seems to be working.

Agents Use Tech to Fight COVID
“I really believe the real estate industry has been one of the most effective at fighting the spread of the Coronavirus. Real estate agents now use technology to do things that they used to have to do in person. We use technology to help people learn about property, to help them view it, and to help them buy it.

“In the first half of 2020, IQI Global’s sales in Malaysia were 30% higher than in the same period of 2019.

“In 2019, Juwai IQI started investing in technology. We have rolled out technologies such as streaming listings presentations, online events, virtual tours, and 3D renderings. By the time the Coronavirus pandemic came to Malaysia, we had all the tools in place to allow us to keep helping people buy and sell real estate.

“Across the economy, there has been a shift from traditional companies to technology enabled companies. Retail has moved to Lazada and Shopee, meetings have moved from cafes and conference rooms to Zoom, and real estate has moved from traditional agencies to Juwai IQI.

The speed with which Malaysia has made this shift is one reason global technology giants such as Microsoft, Amazon and Google are showing interest in developing Malaysia into a regional hub for information technology.“

3 Ways Real Estate Agents Fight COVID-19

Keep hands cleans with soap, water, and hand sanitizer.
Wear masks in public and when around others.
Use technology for video meetings, virtual tours, online events, online marketing, 3D rendering, and digital contract signing.

— end of press release —

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Penang International Airport – What’s next?

I wrote about this earlier but as at now, there are no further announcements as to what would be the plans for
Penang International Airport (PIA)
. The following was what AirAsia Malaysia CEO Aireen Omar said in a
Bernama
 article about the Penang International Airport (PIA) recently.
“Our parking bays and terminals are very congested during festive seasons and I have suggested to the authorities to expand the current airport or build another dedicated low-cost terminal to cater to the demand of the tourism industry. PIA offers high potential for us but unfortunately there are infrastructure constraints. Ideally, we would like to see a dedicated low-cost terminal in Penang where we can easily build on that connectivity to link with our current destinations.”

I think it’s safe to say that without any strategic planning, the total number of visitors to Penang via PIA would be limited in terms of increase. Lots of Malaysians from other states would drive to Penang but are these the only ones that Penang wants? Of course, we can still push for more tourist arrivals during non-peak periods but that would require more effort for less results. Well, that’s something which the authorities would have to quickly decide what should be the next action.

My personal preference? A new PIA in mainland Penang, as near as possible to the second Penang Bridge for good connectivity into the island. As per my last trip just one month ago, the second link was still underused. Of course, another way would be to continue until it bursts, just like when the previous LCCT was way overcrowded and I could not even find a place for my family to sit together for lunch during one of our trips there. I love KLIA2 even if many continue to complain about the distance they have to walk. Seriously, walking is not the main issue. The main issue in the near future would be NO PLACE TO WALK. Happy improving PIA.

written on 20 Oct 2016

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Penang as your Home Sweet Home

Penang as your Home Sweet Home

[Paid Review] Congratulations. You have reached that stage in life where going to work every morning and coming back every evening is no longer a necessity. You have ‘arrived’ at a stage to start enjoying life. You may like to brew two cups of coffee and sit at the balcony and watch the sunrise. You may like to include reading a book by the swimming pool as your partner go for a short swim at the swimming pool. It may even just be brisk-walking in the gym while chit-chatting with your friend about the dinner plan for the evening. Just too many choices to choose from the many restaurants nearby your home.  If this is the life you are looking for, then you need to take a look at
Grace Residence in Penang, Malaysia.

Why Penang. Here are some reasons?

The food diversity meant that you would never be out of choices to savour. More about this later. Let’s look at some of the international awards which Penang has won. How the world looks at Penang and how Penang is compared to all the different places in the world as a great place to live and enjoy.

Travel Awaits says that Penang is the 3rd Best Island in the World and Best in Asia to Retire. They said Penang has multiculturalism, great culinary scene and connectivity to other countries in the region.

International Living says, “The island of Penang, off the coast of Malaysia, has been a firm favorite among savvy expats for decades.” International Living is a magazine and website devoted to good-value living, travel, investment and retirement abroad.

Yahoo! says that George Town was 4th among the 8 Great Places to Retire Abroad.

Condé Nast Traveler: Penang was ranked 2nd in the list of 10 Best Places in the World to Retire

CNN: George Town came in at 6th place in the list of 10 Best Places to Retire Abroad

Lonely Planet: Penang was ranked 1st in the list of 8 of the world’s culinary hotspots

There are just too many more other international awards which Penang has won but I think you get the idea. Penang is already internationally acknowledged as that place which expats love. Just need to pack up your bags and come over to enjoy all these that matters.

#1  Penang is an island. Batu Ferringhi is where you could enjoy the sun, sea and beach.

Image source: awaygowe.com

#2 Penang is a UNESCO World Heritage City. You will be staying right next to this important historical heritage
.

Image Source: PenangFoodie

Penang Chew Jetty

Penang Peranakan Mansion

#3 Penang is connected to the world via Penang International Airport, anytime you wish
.

Image
Source: realbreezetours

#4 Penang gives you access to all the wonders of Malaysia too.

There are just too many more exciting things to do in Malaysia and Penang can be your base to explore all of them. In fact Penang has direct flights to most major cities in Malaysia and getting to the Penang International Airport will take you no more than 30 minutes if you are staying in Jelutong. There are really not many places in the world where you have access to amazing rainforests, climb the highest peak in ASEAN, world renowned islands and more. In fact, even ASEAN cities are at your doorstep too.

#5 Penang is already a melting pot of cultural diversity today.

Beyond just Chinese, Malays and Indians, Penang has a large community of expats and continues to welcome even more every passing year. Somehow, when they come, they saw and they stayed. Whether it’s British, Japanese, Indonesian or even Taiwanese and Hong Konger, many have called Penang as their home.

Oh yeah, we talked about Penang food diversity earlier. Here are just some of them and they are all super delicious too.

Char Koay Teow
Asam Laksa
Tau Sar Piah
Nasi Lemak
Kueh Pie Tee and Popiah
Oyster Omelette
Otak-Otak
Wantan Mee
Mee Goreng
Chee Cheong Fun

And more… more and more…!

There are many more reasons why Penang won so many awards related to the best place to stay, retire and enjoy. I will leave it to you to explore when you come and visit us. Grace Residence in Jelutong may just be your home to explore Penang and beyond.
Read here about The Story of Grace Residence

which sponsored this article and arrange for a tour with the friendly sales team for viewing.

Interested to learn about the potential lifestyle if you stay in Grace Residence? Read it here:
Grace Residence: There’s no place like home sweet home (????????)

If you are interested to secure a viewing appointment below are the contact details:

Address: 1-02-02, Jalan Ahmad Nor, Pusat Perdagangan Nova, 11600, Penang

Call us @ +604 – 282 0577 / +6012 – 421 1376

Email us:
info@novamulia.com

Download the brochure here.

Your Home Sweet Home is waiting for you. (image below) Thank you.

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Penang, more and more ‘billion’ developments

Just a few years ago, there were hardly any billion Ringgit Gross Development Value (GDV) projects in Penang. These 2 years however, we are seeing more and more of these billion Ringgit GDV projects. I think one major reason is also because many KL developers are now moving into Penang. It does not make sense for them to move into Penang and develop only projects worth a few hundred millions right?

Latest news is that Titijaya Land Bhd has obtained shareholders’ approval to acquire about 23 acres of leasehold land in Batu Maung, Penang. It will be building a mixed-use development with a GDV of RM2.6 billion! Price to be paid for the land is RM126 million ONLY. This indicated a land cost versus GDV of only 5 percent!? I think those who love to buy property stocks may want to take a closer look when Titijaya has successfully launched the first phase of this project and earnings start to show.

This is a SOHO project. The development would offer about 1,700 units of these SOHO units over four blocks. there would also be retail components and four office towers! Actually, I do not find Penang attractive for these office units but perhaps it should be popular in future. Phase 1 would be launched either year-end or early next year and first phase would have a GDV of RM600 million. This is considered above average in terms of GDV for projects within the island.

Penang does not have that many SOHO projects when compared to the popularity of such units in Klang Valley. One major reason it is so popular in Klang Valley is also because of affordability; total price. Price per sf is considered high but many of these SOHO units offer an easy entry point since the price is likely to be sub RM400,000 anyway. It’s still way too early for Titijaya to announce the estimated selling price but I think it has to be very attractively priced in order to be successful. As at now, one bridge away,  RM400,000 can get a landed property in mainland. Many Penangites are definitely not used to these SOHO units yet. Happy anticipating.

written on 28 May 2015

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Penang Boutique Hotels, must they be so expensive?

A friend messaged me the other day. She asked me for hotel recommendations since she would be joining the Penang Bridge Marathon in November. I asked for her budget and she said RM200 / room. I said if you can afford you may want to try the latest craze, Boutique Hotels. It has been sprouting non-stop in Penang thus far. She asked, how much. I said over double of what your budget is. She said, why so high? Aren’t these old buildings converted into hotels? I told her that this is due to the extensive renovations and the valuable decorations.

After some thoughts, I think there are a few valid reasons why the prices are still so high today. In fact even more expensive than 4 Star Hotels there! The location is really prime. Majority of these boutique hotels are situated right with the Georgetown Heritage City! Thus, you can wander around all the old roads, buildings, paintings etc just by leaving your hotel on foot! Think about it, if you stay in hotels elsewhere, you need to take taxi and for your information, taxis in Penang are very expensive! Somehow, this remains a problem unsolved.

The size of the hotels meant that rooms are limited. We are talking about a maximum of 20 rooms? Some have just a few rooms. Thus, charging anything lower meant that maintenance is likely to be poor and soon these hotels may have to shut down. Limited rooms meant also that costs are much higher as it is spread across lesser rooms compared to the 4 Star hotels which may have 150 rooms or higher.

It is still new. As much as I would like to defend the price, I also think that there are rooms for some reduction. However, due to the limitations currently in terms of availability, the prices are climbing up instead of stepping down. There are news that many more of these are in the process of renovation and would soon open within these few years. Hopefully by then, the prices would be more reasonable. It would not be low but a bit more reasonable would help people like me to stay in one. Currently, my first choice would definitely be 3/4 Star hotels instead which costs less than RM200 / night.

Enjoy Georgetown via these boutique hotels.

written on 6th May 2014.

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Penang’s catalyst for higher growth, awarded.

Penang island is a small place, really. Singapore is 710 square km while Penang island is just 293 square km. In terms of populations, Penang island has an estimated population of 680,000 while Singapore has already hit 5.4 million and planning for 6.9 million by 2030. Penang has always been jam-free when compared to KL. In recent years, the growing population and popularity among tourists meant that the jams in Penang island has become worse. Read my latest experience here:
What’s up Penang? Jam has worsened.

That’s why I was happy when Penang announced that GAMUDA is the Project Delivery Partner (PDP) for its Penang Transportation Masterplan. (PTMP)

In fact the plans included even TRAMS! Yes, this is among the proposals under the PTMP which also include LRT Lines and a 20km pan-island expressway linking Bayan Lepas and Tanjung Bungah.  GAMUDA won through the SRS consortium which included two Penang-based property firms; Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd. Penang chief minister, Lim Guan Eng said that the trams would be reactivated within the heritage zone and this may make Penang unique and romantic. I personally think taking the slow tram on a hot day is likely to be ‘sweaty.’ Thus, I seriously think the trams must be equipped with air-conditioners.

The consortium would be working on a detailed execution masterplan, engineering designs, gather public feedback and obtain all state and federal approvals for each of the PTMP components. In terms of funding from the state, Lim said that it will be based on a land swap financial model. However, it is currently very premature. Perhaps better to wait for some approvals first. The Central LRT station is said to be sited in the old Prangin Market (Sia Boey). I used to eat economy rice there when I worked in Penang many years ago. A little unhygienic but food is good and cheap. From Sia Boey, it will have a 17.5km LRT line to Bayan Lepas via Kelawei Road to Paya Terubong via Datuk Kermit and Air Itam. All these areas are densely populated. Jams happen on a daily basis too.

Just like majority of all Penangites, I am waiting for more details. Speed is of essence and PTMP will be Penang’s biggest catalyst. In the mean time, I think the state has to be more serious in coming up with plans to reduce the number of cars travelling into Georgetown daily. Listen to the radio station announcements every morning and you would understand that there are roads in Penang having jams every day. Many years back when I was still working in Penang, the announcements would cover only the roads in the Klang Valley. Happy buying Penang. 🙂

written on 20 Aug 2015

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Penang’s coastal ferry service, not for me.

First of all, I love it when I learnt that Penang state government has a Penang Transport Master Plan. I think majority of all Penangites would welcome it. The jam in Penang is getting worse and it has worsened at a faster rate than few years ago. Frankly without a comprehensive plan and implementation, Penang island would have a worst jam than KL soon. Do note that even for point A to Point B in KL, there are many different access roads. In Penang, most of the time, it’s just one. For example, I have even been jammed in Gurney Drive for 2 hours just to drive out after my shopping trip.

Today, I learnt that Penang has suggested a coastal ferry service with multiple terminals to shuttle people and cars from one point on the island to another within the next 10 years. Assuming this can be done, why 10 years? More importantly, why is this necessary? Would Penangites really be taking this coastal ferry service? Seriously, the taxi fares remain exorbitant in Penang and I am not going to take a taxi to go these terminals and if I am not taking the taxi and I am driving, then would there be sufficient car parks? Please bear in mind the it is a huge thing when it comes to space for car parks and the operator of such car parks are likely to charge high parking rates.

If this is primarily to carry cars, perhaps this is workable because there may be some who just hate to jam from one place to another in their car and may prefer to just drive to the nearest terminal to be transported to his destination. The question then is how many of these drivers would be using such a service? Sorry, among my family and a few close friends, the answer is none. Thus far, perhaps they are still willing to drive instead except perhaps during the peak periods. However, if these coastal ferries would only be attractive during peak periods, how would it be able to cover its operation costs? Continuous subsidy is not likely….

Penang Port Sdn Bhd (PPSB) chairman and chief executive officer Datuk Mohd Sidik Shaik Osman said the idea of coastal ferry was good if there was a demand for such a mode of public transportation. He is not sure if it would make economic sense because fares are regulated and is always at the minimum. It may be better if the operator can set their own fares.

I think this fare setting, even if the operator can set on their own would still fail. They may not understand how a Penangite would normally think. They want cheaper but they want it better and preferably if it is food, they want it in a bigger piece. Thus, if the fare is too high, no one would be taking it and huge losses would be incurred and it’s the same if fare is set way too low.

It may work however if the state government is courageous enough to do like what the Singaporean government is doing. You want to drive? Then pay the toll when you enter designated busy roads in Island. Once the Penangites feel the pinch, perhaps this Coastal ferry may work. Or else, please focus on other things first. I would rate the tunnel from Gurney to mainland as a higher priority as I could already see Tanjung Bungah being way too jammed in the near future once everything that was planned including reclamation and even affordable housing is completed.

written on 10 May 2015

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Penang’s Design Village is opening extremely soon.

I was in Penang airport twice last week. One huge signboard was promoting the Design Village in Penang which will be open by the end of 2016. It said something along the lines of ‘clear our wardrobe’ since we will be shopping for lots of new clothes at the Penang Design Village. As reported in
themalaymailonline
, this will be Malaysia’s biggest outlet mall. What is an outlet mall? This is where you get those brands your colleague is carrying at a cheaper price, sometimes by far cheaper. Of course, expect it to be one or two seasons behind. As for the current ones, you can always visit the more luxurious malls, say Pavillion KL.

This coming Friday, since I am fetching my in-laws, I would also be dropping by the
Mitsui Outlet Mall
. Yes, I was in
Johor Premium Outlet
 just one month ago. Oops, am I concluding that I am ‘cheap’ or just a shopaholic? It’s okay to be both. Haha. Coming back to the Design Village, it is located within the newly-developed township of Bandar Cassia in Batu Kawan. It is built a 24-acre tropical garden. Let’s hope it is more cooling while we shop at the largest Adidas outlet store in Malaysia. Besides that, there would also be new brands coming into the region such as the Travel For All Outlet store that will have luggage, travel accessories and winter wear, also at markdown prices.

An image of how it looks from
penangpropertytalk.com
 Do expect lots of people as they could now buy, buy, buy within Northern Region instead of flying to KL or JB. I also checked, it’s less than 5 minutes after we exit the
Penang second bridge.

Beginning at the end of the first bridge however, it is around 20 minutes away. For those from Alor Setar, it’s 72 minutes away. All durations are as per Google Map. Time for SSS. (Shop, Shop and Shop). Welcome to Penang. Now there’s another attraction beyond the usual reasons.

written on 24 Oct 2016

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Penang’s Design Village (Outlet Mall) opens for you.

My brother sent a photo of him with a cup of Coffee Bean coffee to the family LINE chat. He asked us to guess which Coffee Bean was he at. None of us could guess and then he revealed the answer. He was at Penang’s Design Village. Yes, that outlet mall which has since opened. It is 10.1 hectare and was built by PE Land (Penang) Sdn Bhd and marketed by Savills Malaysia. So, what are the brands that we should expect when we visit? Look at the three images that accompany this article. My brother did manage to buy some new clothes. Perhaps can keep these for the upcoming Chinese New Year. As for me, I would look forward to dropping by in my next Penang trip. Maybe in December. I have been to
Johor Premium Outlet as well as to Mitsui Outlet.

I asked a few friends and none has gone to the Design Village yet. Perhaps one major reason may be that not a lot of people have been there or posting in their Facebook yet. In terms of brands available, I would rate them as above average ones but I did not see that many under the luxury category yet. Perhaps they are on their way since the outlet mall is only nearly 70 percent tenanted currently. According to Savills Malaysia Sdn Bhd managing director Allan Soo, “Many others are already on the way and Design Village is confident of achieving over 70 per cent commitment from more international and regional brands by year-end.” One major reason for JPO being frequented by Singaporeans is due to the luxury brands available and the discounts available.

Many months back, a friend even asked if
Batu Kawan would be a great place

to buy with the opening of Penang Design Village. I think my answer remains the same. Buy based on why. If the most major reason for  us to buy a property is so that we have a mall right next door, then we should buy. However, if we are thinking of buying and to rent out to expatriates or even doing a AirBnB, I think it’s best to ask some of the experienced real estate agents for Batu Kawan to understand the potential. From my understanding, these two are not the best options currently because island remains more popular even among all my Penangite friends. Of course, always note that there are now more developments in mainland Penang and buying a good one earlier may be more advantageous than later. Happy shopping!

written on 25 Nov 2016

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Penang remains a favourite city, definitely. (Part 1)

Someone asked me the other day about my opinions for KL property vs Penang property. To be frank, it’s a personal opinion. You can however read my views ever since I started kopiandproperty.com. 🙂  One has the attention of many career growth aspirants while another has awesome attraction as it is an island with sufficient international recognitions. I have been travelling to Penang for the past 2 weekends and will be going again in the coming weekend, once I return from my Hong Kong vacation. My conclusion? Penang remains a favourite city, definitely. Let me tell you three things in my mind about Penang currently.

Enough good jobs.
This is an island which is growing, there’s little doubt about it. Is it fast? Well, it could have been faster but nevertheless after hearing about all those bad news on the employment front in Penang, I have yet to see many of my friends without jobs. One close friend working in Intel who has received the ‘thank you and bye bye letter’ remains very happy. Maybe because the accompanying cheque is a huge one. She has been working in Intel for nearly 20 years I think. In terms of jobs advertised, just within Penang alone is healthy, still. Take a look at the image for just Engineering jobs and the companies hiring. All are big names.

Liveability.

First of all, I think it has to have a masterplan. For example the Penang Transport Master Plan (PTMP) which has received less news coverage these days. As for now however, Penang is definitely very liveable. Most Penangites who are professionals would already be staying in a good condo or a landed property. For these professionals, there are no such things as a cramped space or living very far away or even staying in flats without even a car park. They would work during the weekdays, hike up the Penang national park on a Saturday and laze around the beach front on a Sunday. I seriously do not see too many of these kind of cities around. To anyone who wants to shout Singapore or Hong Kong, let me just smile. If you think it’s equivalent, then by all means do enjoy it.

Two more awesome reasons? To be continued.

written on 12 Sept 2016

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Penang: Fertility rate of just 1.5 and 1,300 net migration.

When I got to know that Malaysia’s average fertility rate has gone down to just 1.9, I thought it was low. Read here:
2015: Fertility rate dropped to 1.9 for Malaysia
  Well, reported in a local English daily, the fertility rate in Penang is just 1.5! Some of us may then point out that Penang continues to attract lots of talents from all over Malaysia. I agree. That’s why Penang was my choice for career when I graduated in 1998. I worked in Penang till 2013. I have since moved to KL. The reason was because I have received many offers with promotions and increments but the more attractive ones were all from KL. After having been persuaded way too many times, I moved. I am not in their technology or engineering, so perhaps KL would suit me better.

Last year, I asked a close friend if she felt that there were fewer ‘external’ people like me working in her company. She told me that she did feel that there were fewer. She was not sure. I was also not sure. Well, the latest report showed that the trend is happening. According to Penang Institute fellow and head of urban studies Stuart Macdonald, in 2014, the net migration into Penang was only 1,300. In brief, it meant that without adding those new babies born in Penang, the total number of working people in Penang from out of Penang is only growing 1,300 per year or slightly over 100 per month. I think this is quite low because I seriously do feel Penang is still a very attractive place for work, play and stay. My brother as well as my sister and their partners are still happily working in Penang today and my parents would prefer Penang anytime compared to KL too.

Breaking the numbers for easier understanding. In 2014, the total migration to Penang from other states was 12,800 while people leaving Penang for other states is 11,500. Thus a net migration of 1,300. In 2013, total migration into Penang was higher, at 14,100 while net migration was 2,600. For the periods of 1992 – 2013, the net migration was 9,372. Yes, we are talking about a serious reduction for the past few years when we compare the actual average versus the numbers of today. With current economic slowdown, what will happen to this migration number? Well, we shall see next year when Penang Institute updates their report. Total population for Penang is estimated at over 1.6 million as at 2013. Still a huge number, fortunately and is enough to propel for continuous growth. For those married couples in Penang, I think it’s time to work harder! Fertility rate has to go up. Happy staying, working and playing in Penang.

written on 16 Sept 2015

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Penang for retirement? One of the top choices of course. 3rd in the world even.

Penang was the place I started my career and stayed for 15 years. I still own properties in Penang till today and the biggest reason for me whenever I share with people about Penang is this fact. Penang has it all.

One can be a senior manager in a world renowned multi-national company based in Bayan Lepas and earns a good salary while at the same time have access to the beach at Batu Ferringhi, stays in a high-rise unit of 1,500 sq ft with a sea view (yes, sea view and huge sized home is possible in Penang even today) and if ever needed, access to the world via Penang International Airport. I did not yet mention that good food is one major reason why people flock to Penang again and again. This is my reason.

Meanwhile, Penang has just received an award as the third best island in the world to retire in.

Article in therakyatpost.com

Travel Awaits
, a media site which targets travellers aged 50 and above has ranked Penang as the third best island in the world to live in. It loses out to just two islands, Mallorca in Spain and the island nation of Malta. The reason it has won this award include its appeal to foodies, with its plethora of food stalls, prominently found in the main city, George Town, as well as adventurers who like to hike, dive, and snorkel.

There are also some other islands in Asia on the list, Bali, Indonesia (9th), Koh Samui, Thailand (10th) and Phu Quoc, Vietnam (15th)  In 2020, it’s reported by
NST
 that the state was listed in the “11 Best Islands for Retirement Abroad” list by International Living. Please do read the full article here:
Article in therakyatpost.com

Best island for retirement means great news for the property market?

The answer to this question is less clear even if it’s more to a Yes than a No. We can say that when everyone loves to stay in Penang, the demand for homes should continue to grow. Just need to note that just to be placed among the best islands to retire in does not mean we suddenly have a few thousand people moving to Penang every month yeah. Perhaps a few hundred every year makes more sense.

In other words, demand will continue but it will not be the main reason to push up property prices. By the way, you also do not want these foreigners to push up property prices suddenly as well. This will not benefit many locals who also need to buy a home too. When we read, then we do realise that prices can move up suddenly if the demand increases suddenly. If the salary could not keep up, many people would now be without a home. Nothing of such is happening in Penang. Enjoy it, Penang for retirement is a good choice, definitely.

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Penang growing ‘bigger’ with another 252.81 acres of land

Overall, Penang is 1,048 km² in size. If it’s just the island part, it’s 293 km². In comparison, Singapore is 719.9 km² in size. It was 581 km2 in 1966. Singapore has thus, grown by 23 percent in size. Well, Penang is growing too and I personally hope Penang can continue to grow in size too. Currently, one way is through a reclamation project in Tanjung Tokong by Eastern & Oriental Berhad (E&O). It has fully completed the Seri Tanjung Pinang 1 and has started the Seri Tanjung Pinang 2 (STP2). The first phase under STP2 is nicknamed STP2A is 252.81 acres and it should be completed by middle of 2018. In terms of the whole reclamation however, it is far from complete. This is what E&O’s comment in
an article in TheStar.
“E&O said that the development period for STP2A is expected to be 15 years. The entire STP2 could potentially take 30-45 years to complete as STP2B and STP2C are nearly twice as large as STP2A,” it said.

In another
related article in TheStar here,
E&O was quoted as saying that the overall property market remain soft. It said that its current sales were contributed by locals. This meant that interest remains high for high end properties at the right price and the right location. It posted a lower profit of RM21.98mil during three months under review compared with RM31.07mil achieved a year earlier. Revenue jumped up by 36 percent to RM331.9mil. E&O’s next statement is important. It said,
“For the remainder of current financial year ending March 31, 2018 (FY18) and for the next financial year we continue to focus selling down our inventory with more innovative pricing packages.” (This is similar to what

was reported for Johor Bahru earlier
.

Developers are looking to clear their stocks instead of launching new ones so soon. Of course, there is a limit to how long they could hold back new launches but I think this is positive for the market. Hopefully that
oversupply number does not rise even higher.
)

Full article for E&O in TheStar here.

Source: thetamarindpenang.com

A Penangite friend told me just 2 weeks ago when I was speaking in the
PIP-EVE.com’s Talk Series

this. “Penang market is very slow today, people are viewing but no one is buying!” My answer? If there are not enough transactions, nearly all the real estate negotiators would already be driving for GRAB. As of last count, I still have over 20 good friends who are RENs in Penang. If there are just no transactions, then developers whose biggest projects are in Penang would suffer and it ought to be shown in its results. The reason is because this slowdown in transaction numbers did not start in 2017 but has been around for a few years. Perhaps since 2014. Last but not least, if there are really
no interest in property investment,

then those properties in areas that everyone loves should already be on a downtrend. Sadly, this is not the case which is a reason why there are fewer transactions? On one side, owners could still ‘tahan’ from dropping prices too much (for good properties) and on the other side, sellers still could not accept that prices did not really move much. Surely if they wait a little longer, prices would drop. No right or wrong, just the potential reason why transactions has dropped, not just for Penang but for the whole of Malaysia too.

Here’s one recent report from MIEA.
Happy taking the right actions.

written on 14 Feb 2018

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Penang: PTMP, new airport, catalyst till 2050.

We know about the reclamation in Seri Tanjung Pinang. It’s by Eastern & Oriental and the first phase has been completed and the second phase is up and coming. Read here:
Penang island getting bigger. E&O’s STP2

Well, Penang is about to get even bigger through further reclamation. No, this is not about the rumoured Middle Bank which is opposed by the environmentalists, saying that it would destroy the many delicate plants there. My personal opinion about environmental protection is about sustainability and funds for research. No matter how natural a site is, if nothing happens to it, it actually meant very little and will generate zero benefits to everyone, including the environmentalists who are trying to protect it.

Coming back to the potential reclamation project, as per report in The Edge, the Penang State Local Government, Traffic Management and Flood Mitigation committee chairman Chow Kon Yeow said that the Gamuda Bhd-led consortium is in the midst of a study to ascertain the sustainability of the proposed site which is 1,500 acres (607ha) of sea land off Permatang Damar Laut. This is near Bayan Lepas, thus it’s near enough to the industrial areas and both the bridges and thus can be said to be a prime piece of land once reclaimed. It’s SEA LAND currently.  This will form part of the proposedland-swap deal with SRS consortium the project delivery partner for the RM27 billion Penang Transport Master Plan (TMP).

This reclamation is expected to have a five-time economic multiplier effect amounting to RM100 billion and it will not only fund the PTMP but would be a catalyst for growth for Penang till 2050. This site is also planned for the new Penang International Airport and ensure the manufacturing industries have space to grow. These days, if a huge piece of land is needed, the investors would need to find in other states and not within Penang. Chow further announced, “The state will finalise the agreement with SRS Consortium within six months of the appointment date. The method of payment would be through the award of rights to reclaim for development. Revenue from the land would be used to repay the consortium.”

I am supportive of a new international airport for Penang. The current one is simply not sufficient for a growing international city. I reiterated this point to a few close friends only recently. Once all these have been formally confirmed, then I think the property market growth in Penang is going to be a continuous one. With the PTMP, it will also help alleviate the current traffic jams which are getting worse every time I drop by Penang. Penangites are buying cars much faster than the building of new roads. I wish this can be finalised sooner than later. All the best Penang.

written on 21 Nov 2015

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From 12 rooms to over 200 rooms. Penang Hill gets exciting.

I am pro-development. Sorry to all those who are not pro-development. Let’s agree to disagree for this one.
However, I am against over-development yeah. I am also against development without a good business plan which ultimately will kill the project and cause even more issues.
Today, we talk about Penang Hill. There will be two new hotels on Penang Hill. This will be an addition to the current 12 rooms which is really too few if we are thinking about really making Penang Hill a must-visit place for all visitors to Penang. You see, if we want people to stay the night, there should be MORE good attractions. However, if we want people to stay the night, there must also be MORE rooms. So, more attractions first or more rooms first?

Penang Hill Corporation (PHC) general manager Cheok Lay Leng assured the public that the two hotels would be developed on existing footprint with no hill clearing involved. He said, “PHC is committed to preserving Penang Hill with careful sustainable developments of key infrastructure.
This proposal involved the refurbishment of Convalescent Bungalow and the redevelopment of the 13 dilapidated buildings that used to be workers’ quarters along the Coolie Line (Strawberry Valley) at the hilltop.
The two hotels won’t be built from scratch. Neither will it be based on the 1989 proposal where there will be hotels, spa, golf course and a casino built on a slope.”
Here’s that report in thestar.com.my

The last sentence by Cheok is NOT needed because if one day Penang Hill is ready to be managed very responsibly, then even more developments could be welcomed. (By the way, Genting Highlands has nothing less than 7,000 rooms if my understanding is correct and I have been to many well managed hills in overseas including even Switzerland; we could do it too!) We should also seriously think of the many hills where the are far lesser developments than Penang Hill and think, ‘Were they responsibly managed, financially and sustainably? Usually, when the management’s bad, the tourists stop coming and the structure become dilapidated and maintenance would then cost lots of money! What I would like PHC to explain would be on the business side as well. The viability in terms of potential revenue, the number of tourists expected, the strict enforcement during the construction and later, maintenance portion. Without all these additional information, it’s a never ending debate really. Happy following.

written on 21 Nov 2018

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Penang international airport expansion and full capacity in 2017

Many friends know my position about Penang’s current international airport. I feel it needs a bigger more holistic plan and that includes moving out of Bayan Lepas for which it has limited expansion capacity to a new site. Most likely in the mainland. Maybe Batu Kawan. Recently, there has been a proposal for another international airport for the northern region, in Kulim Kedah. To anyone who has been to Kulim High Tech Park, there are lots of manufacturing plants there and thus an airport is definitely a good idea. However, Kulim is just 25 minutes away from Penang Bridge. Trust me, I drive there every weekend for 2 years plus during my Master programme. Thus, if the funds are limited, I would definitely propose for Penang’s international airport to be expanded beyond its current capacity. Double it with rooms for further expansion.

Chief Minister of Penang Lim Guan Eng said that he would be bringing up the matter with Datuk Seri Abdul Wahid Omar who currently heads the Economic Planning Unit. I hope this is done quickly before any further plans are planned. He said he is not opposing the Kulim International airport as long as it is not a threat to Penang International Airport. Based on the fact that Penang International Aiport is not full yet and is estimated to only be up to full capacity by 2017, there is actually no threat for few more years. If Kulim international airport is built and can be completed in 3 years, then there would be no threat at all to Penang until 2020! Objectively, the focus should not be which is a threat to another but more on how to best focus limited resources on unlimited wants.

If the plans are only to expand Penang international airport, then I think it may be wiser to have a longer vision. Just as Penang International Airport has been supporting Kulim Hi-Tech Park all these while, it can also be argued vice-versa as well. Many years ago, everyone was opposed to KLIA and said should expand Subang airport instead. Can you imagine what would have happened without KLIA? Now some say KLIA2 is way too big. I just smile. No one should build an airport to serve the current market or even to serve just the potential expansion for next few years. The airport should be built for a much longer regional vision in mind, with sufficient expansion as and when needed. Think objectively. I do not support just the usual expansion. I wish for a really integrated master plan for the northern region’s largest and most modern international airport.

written on 14 Aug 2014

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Penang International Airport expansion project starts 2023

Airport expansion needs to happen before it’s needed

A long time ago, some people said that instead of building KLIA, the government should just focus on expanding the Subang airport. Fortunately, the plan for KLIA proceeded because the Prime Minister then just went ahead. Haha. Today, KLIA is said to need future expansions too especially when we look at the sudden increase in passengers and suddenly everyone needed to wait for hours to pass the immigration.

We have a good news on Penang International Airport (PIA). The expansion plans will start this year and this has been confirmed by our Transport Minister Anthony Loke Siew Fook.

Article in malaymail.com
  Transport Minister Anthony Loke Siew Fook said, “The expansion project will take three to four years to complete to increase the capacity of the airport to 12 million passengers per annum.”

He added that MAHB will be calling for tender to implement the expansion project within two months from now.

Loke said the expansion project will be fully funded by the MAHB.

He said, “The Penang International Airport is the third busiest airport in the country with a capacity of 6.5 million passengers per annum currently.” Do refer here for the full article:
Article in malaymail.com

Statistically speaking about airports

Many people look at me when I tell them that PIA is NOT the second busiest airport after KLIA. To them, “how could this be?” Yes, it could be. Kota Kinabalu Internationall Airport (KKIA) is the second busiest airport and if it’s not because it’s bursting at its seams, it could have even more. There are also plans for the expansion of KKIA but that’s another story. The below shows all the passenger traffic for the main airports in Malaysia up till 2019 (which is most accurate since Covid started in 2020).

About Penang International Airport

In 2022, PIA recorded 4.27 million passengers per annum and this is a positive sign that things are normalizing. The last upgrade for PIA was in 2009 and it was completed in 2013. Meanwhile the proposed Kulim International Airport (KXP) has not submitted an application for an aerodrome licence for KXP. MAHB operates 39 airports in the country based on a cross-subsidising model including the two airports in Kedah. Thus, competition which will causes losses to MAHB will not be encouraged.

Happy understanding and start planning for your holidays!

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Penang island getting bigger. E&O’s STP2.

Nearly 900 acres of reclaimed land would be added to Penang island’s overall size in the future. Seri Tanjung Pinang 2 (STP2) by Eastern & Oriental has been approved as expected. Out of this, 191 acres would be reclaimed and given to the state government. Pretty good deal for both the state as well as Eastern & Oriental (E&O) I think. Instead of buying more land which is not available, E&O gets to reclaim them. As for the state government, this would sort of create more money for the state coffers from the sea. J Perhaps this would then add into very attractive affordable units by the state government. I say attractive because Tanjung Seri Pinang is definitely an area favoured by many. Furthermore, at least 50 acres of the reclaimed land would be in Gurney, even more attractive to many Penangites.

While this is still very far away but, should that 50 acres be used to build affordable properties, I am not sure how the state will be able to choose the most qualified potential buyers this time because the total applications will exceed the total available units many times over. Coming back to this project. A check online revealed that the prices has already reached over RM1,000 psf for that area. How would the new phase be priced? Even higher? Haha. Seriously, I am not sure how these over a thousand psf prices can be maintained or even increasing a lot because there are really not that many working population in Penang who can afford it. Unless of course the sizes are now made even smaller so that the final price is still manageable, say RM650,000 or lower.

Also, with such a huge new phase, what’s the possibility that the prices would reduce since supply is going to be huge? For this question, I think E&O is a very experienced developer and it may be tough to expect the prices to be pushed lower. Buying for stay should be pretty safe and the area I think is pretty matured and exciting enough. Buying for speculation may be riskier, depending on the actual price that it would be launched at. As it is, if the price per sf is way too high, it may be more prudent to just wait and see, even if people would say you would miss the first boat! Most important thing is to reach your ‘investment’ destination. Now how about some secondary properties nearby STP2 for now, if you truly believe the potential for STP2 to scale new heights for pricing? Happy buying.

written on 11 Dec 2014

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Penang island vs mainland: Connectivity and Accessibility

Island vs Mainland continues. Ken Lim of
penangpropertytalk.com

would now compare the Connectivity and Accessibility between the two areas. Actually, the second bridge has helped many people to have another choice in the near future; Batu Kawan. Gone are the days when island is the only available choice if you are working in Bayan Lepas. Many would rate travelling over 2 hours during peak hours across the first bridge as crazy. Thus, they prefer to pay higher for a better lifestyle. Now, what has happened to the connectivity and accessibility today? An analysis with real data by Ken Lim below.

-Start-

More than 30 years ago, before the Penang Bridge was built, it was a big thing for people from mainland to go to the island. Property investment in the Island vs mainland was hardly discussed because travelling to the other side of Penang taking ferry on a daily basis just doesn’t make much sense. One would just buy a house nearby where they work and where most of their relatives and friends are staying.

With the opening of Penang Bridge in 1985, it has substantially enhanced the connectivity and accessibility between the island and mainland. It has also been an important infrastructure to support the regional economic growth by improving access to the key employment region, airport and schools. The spur of economic development has eventually led to the rapid increase in property prices in Penang.

Today, most people think that with better connectivity between the island and mainland, properties in the mainland will be the sole gainer. Actually that’s not entirely correct. With the opening of 2nd bridge, the obvious winners are both Batu Kawan and Batu Maung. It is not about how many are going to move to Batu Kawan, neither it is about how often a person will buy furniture from IKEA. It is the economic multiplier effect that brings more value and development into those the two areas.

With better connectivity, people are more willing to stay further away from their workplace as long as they have easy accessibility to education, shopping and eateries. There is a common suggestion that one should buy a house near their workplace so that they can save time travelling to work. This is not always true as the subconscious element of selfish thoughts is involved in making the decision. Think about the time your family spent in the car while sending children to schools, tuition classes, music lessons, sports, going out for dinner, glossary shopping and etc. Do you still think that travelling to the office take up most of your time?

To get an idea of how much time is needed to travel from one place to the center of FTZ during peak hours, some samples based on Google traffic at 7:50am in the morning is captured:

Obviously, travelling to work from these locations would take you roughly between 20-40 minutes. What is more important is the accessibility to nearby amenities, which may cumulatively take more than 40 minutes of your family time in travelling.

Putting aside the travelling to work place, both island and mainland are equally well connected to amenities that serve our daily needs. However, I would have to agree that Penang Island generally has more high-performing schools and better health care centers. Until mainland is developed with more international education institutions, the availability of International schools and colleges are definitely a plus for Penang Island.

– End –

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What’s up Penang? Jam has worsened.

I was back in Penang just last weekend for a Toastmasters function. I arrived around 12 noon and after the second bridge, there was a slight jam in the Bayan Baru area. It must be the half-day working day on Saturday. My function was in town and I was travelling from my brother’s home in Sungai Ara. Right after Jelutong expressway, everything came to a slow crawl. Jam at 630pm? Perhaps everyone is going to town area for dinner?

During the dinner, I was talking to a close friend who asked me how’s KL’s jam. I told her that based on the place where I stay and the time I travel, I have not really felt the impact of the jams. She said, that’s good because in Penang, she could feel the jams everyday. I told her I felt the same and these days every morning, the radio deejay would talk about jams and one of the places would be Penang’s first bridge. Yet, what I understand was also that the Penang second bridge continue to be under-utilised thus far. Why is this so?

Perhaps whatever is being planned in Batu Kawan can be pushed for a faster completion. Then, some of the huge population at this part of the island can move over and relieve the two-lane roads off some of the cars which are increasing like crazy while the road networks remain almost the same. There’s the Penang Transport Masterplan but as at now, even the Project Delivery Partner has not yet been chosen. As for the tunnel and all those additional roads etc, it will only be ready in 2025 or so as per what I read in the newspaper and online. Seriously, I am not sure how long can Penang continue to sustain this growth in the number of cars.

If we look at the number of new projects within say Tanjung Tokong or Paya Terubong, some of us may note the daunting number of units which have been proposed, planned and in the process of construction. I can only hope that the state government does more and faster. Yes, moving some of the huge population growth within the island to mainland is really a very important agenda. Of course, based on the jams currently, it is still nowhere near the typical KL jams in LDP or Federal Highway. However, when the gridlock starts, it would be tough trying to ‘unlock’ it. Cheers.

written on 30 June 2015

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Penang property market, landed terrace most popular.

I have always been telling everyone that the reason until today I do not own a single unit of a landed property is because condo is the future. Landed would become so expensive that the current units and even future supply will not be so easily available or even affordable. Thus, growth would not be huge when compared to condo. After you buy one unit, who can you sell to? Well, honestly when I look at just Penang, I am WRONG. Haha. Yes, please take a look at the chart below provided by my good friend, Michael Geh, the senior partner of Raine & Horne International Zaki + Partners Sdn Bhd. It shows that whether it’s 2013 or even 2014, landed terrace homes of 2-3 storey remain the MOST popular in Penang. This is despite the fact that one row may have just 30 units of these but a few acres of land may be housing a few hundred condo units.

Thus the conclusion from this chart is simple. Penangites are VERY rich or if they are not rich, it meant that they are crazy for these landed units. Perhaps Penangites are both. Actually, the supply of these landed units would be very limited because the available land within the island is getting lesser. Even for developers who reclaims land, they have to build a lot of high-rise and not these landed ones because it would not be able to cover their costs or even obtain high profits. Besides a usual 2 storey landed is already easily RM1 million in Penang. How many people can afford to buy one anyway? Refer to some samples of latest listings below:

The conclusion from the chart and these landed properties tells us that I may be wrong for now but I may not be wrong for too long once all the high-rise units bought in 2011, 2012, 2013 and even 2014 are continuously coming into the market. Just assuming the prices increase by 3 percent per year would meant that these terrace houses would be considered ‘super grossly unaffordable’ to majority of the usual full time employees like you and me just a few more years down the road. It is now ‘grossly unaffordable.’ For those who can afford to buy a few and wait, I guess the choice is clear yeah. For Penang, landed would always be a premium, then, now and future. Happy owning one.

written on 30 Apr 2015

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Penang landslide; another one. I wonder how, I wonder why.

[Featured image from NST.] Heavy rain. Penang. 12 months ago. This has repeated. Another major landslide has happened in a Penang construction site and this time four bodies have been found with another three missing.
In an article in TheSunDaily.my: Calls for Penang to review existing projects following landslide.
According to a former PKR parliamentarian, the state government must review existing projects following two landslides here in the last 12 months. He said that the present development policies were ill-suited for the era of sustainability and climate change. “What had worked in the past may not necessarily be effective now. In the new millennium, we want development which benefit the masses, not a select few.” (Strong words here, especially the last few words.)

The landslide happened in the Bukit Kukus area while the project was a paired elevated bypass highway which links Bandar Baru Air Itam with Bukit Jambul through the hilly forest covering of Paya Terubong. Rescue work are still continuing. Penang Gerakan veteran Wong Mun Hoe however said that it is not about the policy, but the monitoring on the ground of sensitive projects such as those in hilly terrain, reclamation and coastal development. (Based on the many media reports I read these two days, I think this lacking in monitoring is quite true.).
For reference, full article here in TheSunDaily.my

In another
article in NST: Penang landslide: We told you so, experts tell state gov’t
  The message was much more blunt. Sahabat Alam Malaysia (Sam) honorary secretary R.Meenakshi said, “How many more innocent lives must we lose before serious measures are taken by the state to prevent hill slope tragedies?.” She added, “What else can we say? When we speak out against hillslope development projects, we are labelled as ‘troublemakers’. But look at what happened today. More innocent lives are lost. This is so, so sad.” Penang Forum member Dr Lim Mah Hui said the latest tragedy illustrates the risk involved when one “tampers with nature. What happened today showed that the (state’s) monitoring capacity is weak. The state government should not say that this is (just) a worksite tragedy. This should serve as the final wake up call.”

Personally, I am against scrapping of all hill slope developments. I have been to many countries where the hill slope developments are somehow without much issues. Even when I was driving in Melbourne country side and it was raining and the hill was just beside us, I felt safe because the roads were clear. Whenever I drive in Penang then and now and it rains, I always felt that I should pass the hill roads as fast as I could. Hopefully this will the final wake up call and monitoring is now strictly enforced without fear or favour. There should perhaps be a monitoring team monitoring the monitoring team too. Alternatively, share with the public what are the signs that the safety precautions are weak. We can help too.

written on 20 Oct 2018

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1,200,000 sq ft of retail floor mall in Penang. Largest. Let’s visit (near future).

I just wrote about malls recently.
Online will not kill malls
  So, do you shop online weekly? If you are a Penangite, where do you currently shop? My favourite mall when I was still based in Penang is Queensbay Mall. The reason I love it? It’s near to where I live and it has so many retail shops which are suitable for me. A very important point is also that there are lots of car park slots and even when everyone is trying to come out after 10pm, it does not face jams like Gurney Mall.

Gurney Mall has around 890,000 sq ft of retail floor. This size qualifies it to be the largest mall in Penang. Gurney Mall’s retail floor size is very slightly smaller, at 858,000 sq ft. For those not so familiar with Penang and wants a comparison with a mall here in PJ, Paradigm Mall here in Kelana Jaya has around 700,000 sq ft of retail floor space. Penang will however have a new mall with a larger retail floor space. It’s going to be coming up in Prai, Penang.

Article in thestar.com.my
   GEM development by Belleview Group in Jalan Baru, Prai has a RM2.5bil gross development value is expected to be completed in 2022. This is a 8ha project with four towers of 38-storey residential units, a 6-level shopping mall and a 20-storey hotel.  Belleview Group managing director Datuk Sonny Ho said, “Construction will start with the mixed used residential and shop units followed by the hotel and mall.”

Ho also shared that GEM Mall is set to become Penang’s largest mall when it’s completed. It will cover an area of 4.5 ha and a total lettable area of 1.2 million sq ft of space for 400 retail shops. Ho said the mall’s anchor tenants include a Sogo department store, Golden Screen Cinemas cineplex with 20 screens for 3,500 seating capacity, a 38-lane bowling centre and an Olympic-sized ice skating rink by Patine Leisure Japan. He further explained, ““Under the Penang Transport Master Plan (PTMP), LRT and monorail stations are planned in front of the development.” For more details about GEM, please refer to the
Article in thestar.com.my

So obviously the project is still ongoing and the residential part has to complete before the hotel and then only followed by the mall. While it will not be so soon, I am more interested to find out if Penangites will prefer to visit a mall in mainland instead of here in the island. Based on a survey of 8 friends, the answer is quite clear. The islanders will still prefer the malls within the island while the mainlanders say that they will definitely visit a mall on their side instead of driving all the way to the island once GEM mall is completed.

Well, quite logical right. We should support malls within our neighbourhood instead of supporting a mall in some other people’s neighbourhood right? This will help to increase the traffic in the mall and more retail shops will remain open instead of closing down. No one I know like to visit an empty mall. Happy waiting for that new largest mall in Penang (mainland).

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More roads, great. More choices, now and future. New PIA, please.

Good news for Penangites. In less than 12 months, the Ayer Item – Lim Chong Eu Expressway will start construction. The builder, Consortium Zenith Construction Sdn Bhd (CZC) senior executive director Datuk Zarul Ahmad Mohd Zulkifli shared, “There is still land acquisition to be done by the Land Office on 10 plots of Federal and private lands. It will take about three to six months. Once we have done a considerable amount of work on this paired road, we will then start work on the 10.53km North Coastal Paired Road (NCPR) from Tanjung Bungah to Teluk Bahang. Otherwise, Penang island will become a major construction site.” (His last sentence is pretty serious. When we look at Penang as an island and the roads as a connector, we can see that the options in Penang currently is pretty limited. This is the reason why as soon as a jam starts, it will quickly become a major jam. All these roads are definitely necessary and must be built sooner rather than later.)
The full article in PenangPropertyTalk.com here.

Further details of actual project:  The paired roads are part of the RM6.3bil mega project comprising a 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in Seberang Prai, and the 4.075km Gurney Drive — Tun Dr Lim Chong Eu Expressway bypass. The road from Ayer Itam will be 5.7km long, starting from Jalan Kampung Pisang and connecting with the expressway in Gelugor.  This road will have three interchanges, allowing motorists to get on and off from Jalan Thean Tek, Jalan Yeap Chor Ee and Jalan Sultan Azlan Shah. About 70% of the dual carriageway will be elevated and the link provides for a 70km/h speed limit. One may also refer
to the article in TheStar for reference too.

What are your thoughts when it comes to properties in Penang? Buying within the island? Since there are now more roads to alleviate the potential future traffic jams? There are still choices in secondary spots like Balik Pulau, Batu Maung and beyond, Teluk Bahang etc. Or is it the time for mainland properties to shine? Batu Kawan for example? Actually, it pays to look back at the fundamentals which are the number of jobs. When there are more jobs, there would be more migration into Penang. Nope, Penangites cannot rely on only Penangite babies for the demand yeah.

I believe it’s about time that the new Chief Minister thinks about the connection from the world into Penang. Yes, the Penang International Airport (PIA), a new one nonetheless in the future. Let’s not keep delaying this research, study and implementation. Here’s an earlier article. A better connected Penang brings more than just tourists. It ensures the competitiveness of industries operating in Penang to the world in a fast and efficient manner. It ensures medical tourism which is SUPER HUGE to continue to prosper and grow by leaps and bounds. It also ensures that the wealthy foreigners may want to think of Penang as their another stop because to these people, connectivity is key. If the airport is full to the brim, nothing else happens… In fact people may start giving bad reviews when congestion starts. Happy investing into Penang.

written on 6 July 2018

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LRT, PIL and PSR will start in Q4 2020.

Penang has a catalytic masterplan called Penang Transport Master Plan (PTMP). Within this plan are the Light Rail Transit (LRT), Pan Island Link (PIL) and the Penang South Reclamation (PSR) projects. The project delivery partner (Pdp) is SRS Consortium.  A project delivery partner is basically the project manager who will ensure the projects are completed on time. Within this SRS Consortium would be Gamuda Berhad who was the Pdp for MRT Sungai Buloh – Kajang (SBK) and the project was completed ahead of schedule.

Article in malaymail.com
  Penang Chief Minister Chow Kon Yeow said that the state government expects the construction work on the light rail transit (LRT), Pan Island Link (PIL) and Penang South Reclamation (PSR) projects under the Penang Transport Master Plan (PTMP) to begin by Q4 2020.  He said, “We, together with SRS Consortium, are hoping to sign the agreement for the projects (soon).”

He also shared that the reclaimed land of Gurney Coast will be ready by April.  The proposed LRT will cover 27 stations and 29.9km, running from Komtar to the Penang International Airport, including to the three future reclaimed islands in the south of Penang under the PSR.  The PSR is a 1,821 hectares of three man-made islands and this will be to fund the PTMP. The PIL1 is a 19.5km-long toll-free highway alignment from Gurney Drive to Tun Dr Lim Chong Eu Expressway near the Bayan Lepas Free Industrial Zone IV area. Please read the full article here:
Article in malaymail.com

Yea, there are still controversies surrounding the PSR currently which is said to be a threat to the environment. I think we will see how the state will be engaging the NGOs moving forward because the estimated Q4 is still many months away. If based on just my Penangite friends, they are generally supportive of the PTMP even if most of them are not familiar with the plans beyond just an LRT, 3 new islands and a new toll free expressway. Happy following.

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Penang, LRT, Tram or whatever transportation system

My Penangite friends said, the jam is becoming worst in Penang! I think, not yet. However, it has deteriorated significantly if compared to when I first arrived in Penang to work in 1998. At that time, even the town areas are ok and I can be in Tanjung Bungah within less than 30 minutes, most of the time, from town. Today, I dare not say so. Sometimes, it may be one hour or more. During peak hours, if you are trying to cross the bridge, I think it would best that you have your meal first. Yes, there’s the second bridge but if you are from town, trying to go to Ipoh, it is impossible for you to use the second bridge right? Anyway, jams in Penang are still nowhere near to KL type of jams as at now. However, be reminded that as soon the jams in Penang become worse, it will be worst very much faster compared to KL. Reason? KL still have public transport and with MRT coming up, it does seem rosier within a few years’ time.

Today, in the state legislative assembly sitting, in his opening speech, the governor of Penang called on Putrajaya to approve the state’s application for tram and Light Rail Transit (LRT) systems. This is because, Penang needs better public transport to resolve the growing traffic congestion. He said, ‘Putrajaya needs to show a clear commitment to assist the state in implementing these systems by either funding these systems or allowing the state to run these systems on its own,”. He said that the state has also applied to the federal government for licences to run the tram, LRT or other types of public transportation systems together with the private sector.

Personally, LRT is better than tram, by far. Please, if the state government really wants to proceed, LRT should be the way and not tram. However, it’s always chicken and egg situation. Should you force more people to use the existing public transport first or build it first. Reason being, the current parking fees are still low and even the mindset is that, only the poor uses the public transport. ‘If I am a senior executive or higher, I am not going to be sandwiched like a sardine during peak hours.’ I prefer to drive. 2 years ago, in my previous company, I told my staffs during a heavy jam in Georgetown. The state should increase the parking fees, especially during weekdays and also if the parking spaces are nearby a bus stop. This is because if they can park there, they should also be able to take a bus there. You may think I am joking but fyi, this is how a lot of countries in the world control the car population. In Hong Kong, a car park can be RM1,500 per month or higher. In Singapore, it’s even worse, everywhere you go in the CBD area, you will pay, pay and pay and all HDB flats do not come with any car parks.

The state is on the right track, with car free days on certain roads, just continue this to include more and more roads. Then, increase the parking fees and issue summons to any cars which are parked haphazardly. With a LRT system many years away even if approved and tens of thousands of news cars being sold every year, Penang better has something up its sleeve and implement it quickly. Please do not go for trams. Think on a much longer term. If trams work and it is so called ‘less pollution’ option, majority of all the cities in the world are already on trams. They are not.

written on 20 May 2014

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