Forest City. GDV down but it’s full steam ahead

Forest City gross development value (GDV) has done down a lot! To recap, this is a 66:34 joint venture between China-based developer Country Garden Holdings Ltd and Johor state government’s subsidiary company, Kumpulan Prasarana Rakyat Johor. It’s GDV has since been revised downwards by 25%. Yet, the total GDV is still a staggering RM450 Billion, down from RM600 Billion. In comparison with current Penang, this revised GDV is still more than 100 times bigger than Penang’s yearly total GDV. Of course, it will be spread over a period of 30 years. Thus, if we calculate on simple average, that’s around RM15 billion per year.

In an interview with with The Star, Sultan Ibrahim offered his view of the project. He said that he may be direct and blunt but the truth is, even if Johor does not proceed with the reclamation project, Singapore would still be carrying out its reclamation. After all, Singapore has been doing it since the 1960s. It should thus not only be ‘why is Johor reclaiming’ but everyone should have also asked why when Singapore carried out its reclamation previously. He said this reclamation is “strategically necessary.”

In terms of size, the total development is now smaller. From 1,988ha, it is now only 1,386ha. Major reason for this was to comply with the environmental concerns. Specifically, this ensures a preservation of 48.5ha sea grass area to maintain current ecosystem and more importantly to ensure there’s room for Port Tanjung Pelepas’s expansion in future. This is a controversial project from the beginning. From environmental concerns which was the main reason it was delayed to the uneasiness of our neighbour down south, it was clear that everything was fast-tracked in the beginning.

Of course, when we look at the overall picture, this delay can be said to be a blessing in disguise to the development. Current sentiment remain a little negative for Iskandar and it would cope better if the High Speed Rail (HSR) has more firm announcements. As reported earlier, this High Speed Rail’s existing timeline is also delayed. 2020 will not be the year it is completed anymore. Read here:
High Speed Rail? Completion Timeline ‘derailed’. 2020 not possible.
The company has also announced that the development will be funded by internal funds. I think this would be the case if China is still facing slowdown in its economy. Once the economy moves and the property market moves again, funds may have to be borrowed domestically.

written on 20 Mar 2015

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11,900 into Singapore and 50,000 out into Iskandar everyday.

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Forest City scaled down 30%

Remember the controversy surrounding the Forest City project in Iskandar? Many reports said that the whole project may be scaled down 70%. It has been finally revealed that green light has been given for the project to continue BUT it has to be scaled down by at least 30%. From the initial 1,978ha, it is now down to 1,368.05ha. Ok, while 610ha is indeed a huge piece of land but 1,368.05ha which is the remaining piece is definitely not small. This project was reported to have a total of four man-made islands with a gross development value (GDV) of RM600 billion over 30 years. It’s not a typo. It is RM600 billion and not RM60 billion. In other words, an average of RM20 billion per year! With the reduction, the GDV should be reduced accordingly. Of course, the plan can always be restructured to make the land use even more efficient and GDV may not change a lot. Will have to wait for the developer to call for a press conference.

From the beginning, no one would think that the project would be cancelled. It is a joint-venture between the state government’s subsidiary company Kumpulan Prasarana Rakyat Johor and China real estate developer Country Garden Holdings Ltd. However, there has been many murmurs and complaints that the project is affecting many local fishermen as well as the effects on the marine life in Gelang Patah. The highest concern was finally raised when Singapore sent a note to Putrajaya. With the current cordial relationship, the current decision seems to be a win-win situation to all, hopefully. 🙂

The reclamation works has been stopped for over 6 months. The developer has better restart work soon to catch up on lost time. The developer gave an assurance that conditions imposed would be adhered to. As soon as they start, an updated Environmental Management Plan together with a frequent third-party audit would be submitted as per requested by DOE.

I still think it would be best to rope in another partner which can help to attract more investors from Singapore. Let’s wait and see what’s next for such a huge development overlooking our neighbour. I think the higher floors would be able to have a spectacular view of the night lights from Singapore. Haha. Of course, many of the buyers would definitely be Singaporeans too. No rush, just reclaim first. Launching now, irregardless of how aggressive just would not cut it but as they say, once the rain stops, the sun would be out and the flowers would start to bloom. The question is, when would this ‘rain’ stop or would the ‘rain’ turn into a storm? Happy reading.

written on 15 Jan 2015

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Iskandar – Largest reclamation project in Malaysia?

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Forest City showrooms in Vietnam, Myanmar, Taiwan, Dubai and Japan

Forest City is a massive project in Iskandar Malaysia by Country Garden Holdings Co Ltd. By the time the four artificial islands are completed, it is expected to be inhabited by 700,000 people. An earlier article here.
Forest City, RM75.8 billion, 20 years and eight core industries
 Recently, it was reported by many different media that it (Country Garden) has shut down some of its showrooms in China. Referring to an article in
NST here.
 According to Reuters, the company said that “the closure is to ensure better fit with current foreign exchange policies and regulations.”  It also said that “(The) Country Garden group resolutely abides by relevant foreign exchange related rules and actively adapts it overseas development strategy to adapt to a constantly changing national and international policy and legal environment.”  So, this does mean that it will now stop selling this development?

Reported in
NST
.  Country Garden announced that it would be setting up showrooms in more countries. They include showrooms in the Middle East, India, Vietnam, Thailand and Japan.Country Garden’s Malaysian unit, Country Garden Pacificview Sdn Bhd, said it was promoting Forest City to investors from Southeast Asia, Japan, South Korea, India, the Middle East, Europe and the United States. It has partnered with international property sales consultants, such as Edmund Tie & Co, CBRE Group Inc, Ray White and High Mark Real Estate Brokers.The developer said that it had sold around 18 billion yuan (RM11.5 billion) worth of apartments in Forest City in 2016 and Chinese nationals accounting for 70 per cent of the buyers. Another article with additional information can be read here.
South China Morning Post: Country Garden halts Malaysian housing sales amid capital flight crackdown

Reading a bit further, this was what was reported in
Newswire
 from Country Garden. It is ranked by Forbes as among the”The World’s 500 Largest Public Companies” It is also listed on Hong Kong Stock Exchange’s Main Board (Stock Code: 2007). Beyond just a developer, Country Garden is also the operator of residential communities and also constructs and operates green, ecological and smart cities. In 2016, Country Garden’s residential property sales exceeded USD43 billion (RM191 billion) and ranked among top three real estate enterprises globally. I think it will be doing everything it could to ensure the sales for its Iskandar project continue to rise. I do not own a unit and has no plans to get a unit currently. I am positive with Iskandar’s overall development even if I think the creation of jobs can be faster instead of just the news about new residential projects. Happy following.

written on 11 Mar 2017

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Forest reserve in Selangor de-gazetted to prevent bushfires. (I learnt…)

What are your thoughts on forest reserves? Should we be protecting all the forest reserves at all costs? Having been to many forest reserves in Malaysia, I think we should preserve them unless of course there are really valid reasons. For example, for catalytic logistics project such as East Cost Rail Link (ECRL). Another example, a research university on bio-diversity right next to a forest reserve, maybe?  Anyway, you get my idea.

Both examples would provide long term benefits and with more economic activities, we could even have more funds to build some sustainable features to attract even more visitors to the forest reserve. By the way, in this whole mother earth,
“rainforests are naturally limited to a relatively small area.” (Source here)
 There’s another reason being stated for a proposalto de-gazette a forest reserve in Selangor.

Article in edgeprop.my here.
 Selangor Menteri Besar Amirudin Shari said the state government’s decision to allow development in a permanent forest reserve in Kuala Langat was a good idea because the peat forest in the land no longer had the “characteristics” of a permanent forest reserve as 40% of it was depleted and frequently caught fire. The Selangor state government was planning to de-gazette 930.93ha (97.1%) of the 958ha Kuala Langat (North) Forest Reserve for a mixed development project.

He said this about the plan, “Therefore we want to change this area to make it more appropriate with its surrounding areas. In front of it, we will have a Selangor Business Capital development by the Selangor State Development Corporation (PKNS). The development next to it (Gamuda Cove) is owned by Gamuda. This (proposal) is also to prevent forest fires, a problem that threatened the ecosystem here a while ago.”  This plan is only in proposal stage. The public has until March 5 to submit their feedback to the Selangor Forestry Department. The full
Article in edgeprop.my here.

I think the public, especially Selangorians should made their mind known to the state government. The MB is also encouraging everyone to give their feedback because this is just a proposal and there are also reasons behind the proposal too as he has explained. It’s not going to be useful if no one does anything and then only make noise later on if they really do not like this proposal. The period lapses on 5th March 2020 yeah. Happy providing feedbacks.

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Fortress Australia reopens after 2 years.

I have been to Perth, Melbourne and Sydney. I love all of them and I personally prefer Perth over Melbourne and Sydney and Sydney over Melbourne. My wife and even kids says the same. Hopefully the next place I visit could be another city. Maybe Brisbane? A long time friend owns a cafe there, so I know I will at least get great coffee too. I think the many liveability charts putting many Australian cities at the top in the list are objective enough.

Here’s that latest news about Australia and the international tourists who may have been waiting to visit them again.

Article in themalaysianreserve.com
 Australia opened its international borders to all vaccinated tourists Monday. This is after 2 years of imposing some of the world’s strictest Covid-19 travel restrictions.

Qantas chief executive Alan Joyce said,“It’s fair to say we’ve all been waiting a long time to welcome visitors back to Australia.” Within this week, Qantas expects to bring than 14,000 passengers into Australia.

Tourism Minister Dan Tehan said, “I think we’re going to see a very, very strong rebound.”

Western Australia will not re-open to international travellers on Monday, holding off until March 3. Do read more here:
Article in themalaysianreserve.com

Living with and staying away are very different policies

Now for the really encouraging news especially with how countries are now looking at Covid-19; living with it versus ensuring zero cases. Two very different scenarios. If you like to know, Australia’s average number of new Covid-19 new infections averaged over 21,000 cases for the last 7 days. (As at 19th February 2022) Just google for Covid-19 cases Australia to get the same data.

There are countries lifting fully all the Covid-19 measures. Here’s one of them.
Actual numbers. Denmark and Covid-19 restrictions
. No need to guess which policy is Malaysia following. We are definitely moving towards living with Covid-19. It’s not going to go away anytime soon. In the mean time, just continue to stay safe, take all necessary precautions too. Looking forward to travelling like usual again in the near future.

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Bandar Malaysia: Only Fortune 500 companies need apply. (but not from the U.S….)

Bandar Malaysia is quite a famous development. Depending on where you intend to look at it from,
 it can be negative or positive.

Total gross development value is estimated at RM12.3 billion and it was reported in many media recently about Malaysia’s Ministry of Finance issuing a request for proposal (RFP) from companies interested in taking part in the development of Bandar Malaysia. This is also the terminus for the high- speed rail link between Singapore and Malaysia. Here’s the full
article in StraitsTimes.com
 In recent months, the Ministry of Finance terminated an agreement with a consortium
comprising Malaysian and Chinese

companies that were slated to buy a majority stake in the project. Under the new RFP, interested companies must be in the Fortune 500 list and meet requirements for “local content.” The RFP is open to all and not just foreign firms. These are the
2017 Fortune 500 companies.

Other requirements include the following. An interested company must also be an affiliate of a firm that has generated cumulatively over the last three years no less than RM50 billion in revenue from its entire value chain of real estate and associated businesses, and have experience in international quality real estate development projects.
(Actually this meant that the winner would be a consortium of companies because there are only a handful of Malaysian companies within the Fortune 500 list. I still think it will include some ASIAN companies. Haha. Okay, China…)
  “The proposer also must be able to demonstrate how their (plan) focuses and places emphasis on the key themes of serving people and the national interest of Malaysia.”
(Good requirement even if it is almost a certainty that whoever the developer is, it will have to be serving the interests of Malaysia. Cannot be building only for foreigners right)

To those who would like to know which are the countries that will most probably be submitting a proposal, it may come from 4 countries but will not include companies from Singapore of the U.S.
The article in freemalaysiatoday quoting with Independent economist Prof Hoo Ke Ping
 here. He said that due to the 1MDB controversy, the companies from Singapore and the U.S would not be participating. Those participating would be those who are vyying for the KL – SG High Speed Rail project. They include China, Taiwan, Japan and South Korea. He also ruled out companies from Europe, Middle East and even Canada, citing numerous other reasons. Even though he said the Chinese companies may submit a bid but he also shared that these companies will find it hard to transfer their money out as the Chinese government is currently limiting the outflow of renminbi from the country. Unless the company is super rich.
Full article in freemalaysiatoday.com with his comments here.

As for many, I think they are waiting to see if this happens in the near future.
Bandar Malaysia, 5k affordable homes on fast-track basis.
 Happy following.

written on 7 July 2017

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Four reasons ‘retirement village’ may work in Malaysia

Last week, I wrote about retirement village in Malaysia. Some asked, would this work? It may work in developed countries but Malaysia? It may be tough. I cannot say for sure but I think if a few conditions are met, it may just take off easily. Let’s look at four.

Affordability. Let’s be very honest. The top 10% of the richest old folks in Malaysia would not consider this because they may have more than enough no matter where they decide to retire. However, for those who owns a property in a good location but not so conducive for them due to age, theymay consider selling it off and buying a spot in these retirement villages instead. Thus, the prices must be affordable enough but not too cheap because if too cheap, then the services rendered would be of low quality and it will not work in the long run. What’s affordable? Don’t worry, the developers building this must have done some homework before starting to sell. Or else…..

Acceptance. It’s one thing being old. It’s another thing altogether to accept that you are old. The worst would be the stereotype that retirement villages are just like old folks home. I have no doubt that a lot of old folks home are well run and managed. However given a choice of one whole community, with the right facilities, the extra services offered by these retirement villages far exceeds that of a typical old folks home. Thus, the perception must be well managed and the differentiation amplified right from the beginning. It should more of ‘son, I have decided to buy a unit in Retirement Village ABC’ instead of, ‘Father, why not you go stay at those old folks village, I mean retirement villages’.

Quality. Malaysia has always been associated with first world facility but third world mentality. For retirement villages operators, they should be thinking of long term and not short term profit. This is not like building a luxury condominium with a sea view and a huge profit margin. This is based on minimum profit based on the property sold but the profit should be a continuous stream based on a continuous service of whatever the operator cum developer has promised right from the beginning.

Safety. Majority of the older folks today stay in housing areas which are not gated and guarded. They meanwhile may not really like to stay on Level 17 in a condo project where no one knows anyone. It is however not just crime rates but also the fact that if something were to happen to you, immediate care and attention would be needed. If no one knows, no one can help. There are also groups which targets the older folks because they are the most vulnerable and considered easy prey.

One day, I would reach this stage myself. If it meets my budget and the quality of service I expected, I would own a unit. I have little doubt on the acceptance because by then, if it is still around, the acceptance would have been a foregone conclusion. As for safety, let’s be realistic, it is impossible for zero crime rates but it is possible to reduce this possibility to the minimum possible.

written on 2nd March 2014

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Buying condo and wait 15 years?

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Four Tips as Successful Financial Consultant

I have always felt that irregardless of the field that you are in, as long as you work with passion, it will show in the results and soon you will be noticed and you will be successful in the field. I have a personal friend who was very successful as a financial consultant and he has used his earnings to jumpstart his own cafe which you guessed it, another great success. The ingredients just do not change much. Another personal friend, my own financial consultant is already driving a car which I normally just think about. Haha. Let’s see what are some of the ingredients for a successful career as a financial consultant? The below sharing is by Crystal.

1) Knowledge & Learning

As a professional financial consultant, knowledge and learning is very important. If there are any new products launch training one should attend. Financial consultant must be clear about the products, and when there are doubts, ask the trainer. For some of the life insurance companies, they implement a concept “Take the Exam, Pass the exam, Before you do submission”. For those who failed, they have to retake until they pass. This is to prevent the potential of wrong information to clients. Learn from successful people by learning their good attitude, thinking, behavior and motivation. Reading books and attend seminar will help on this. If you want to be a successful person, you need to learn about them. It may take you just a few hours if you read about their experience through books.

2) Ethics

if you really want to do this on a long term, be prepared to be very ethical. A financial consultant ensure that the plans proposed should be what the clients want and fulfill their requirements. A financial consultant should not mislead client, hide any information and purposely give wrong information to clients. Many consultant are afraid if they tell the truth and be direct, the clients might not sign up the plan, so they choose to hide this and that. However, who can foresee the future? What if something bad really did happen? I read this from the book ‘The Secret’ and ‘Law of Attraction’. The kind of behaviour you exhibits would be the kind of people whom you will meet. I always tell myself, I must have a good attitude with positive thinking to attract everything good into my life.

3) Servicing

First, a question. Your day is full of sales appointments but you received a call from a client who told you she needs help to fetch her to the hospital to consult the doctor as she really does not know much about the process. Do you fetch her or tell her to go by herself and try to explain everything through the phone or ask her to follow your time instead? I cannot answer for everyone but for me, I will service my client first. I will call to my other appointments to reschedule them. I think this is important because in future, my future clients would also think they want someone to take care of them instead of only about sales, sales and sales. Always remember, you may be able to fake a smile here and there but if you do do not have the heart to continue doing it, soon you will be exposed. Do things from the bottom of your heart. About the client who asked me to fetch her, it ended up that it took my full day but she was very grateful and her thank you was warm and sincere. I will always remember that this is the reason why I join. Just do it well, do it with heart, somehow the money will come later.

4) Management

Management include self-management and work management.

Self-management

i) Time management – Not only to be punctual to appointments, should reach earlier before the client.

ii) Attitude & Habit – Must always have positive thinking, attitudes and habits. Any unlucky incidents happen, treat this as a new lesson learnt.

iii) Self-Motivation & Good Mood – Must always self-motivate in order to have goodperformance. Good mood is very important when meet clients. If you feel sad, please do not meet your clients, because this is unfair to the client; passing of sad energy to them.

Work management

i) Update Progress & Follow Up – When submit client documents to the life insurance company, must update the client on the progress and once the process done, inform them. If there contain any delay in the progress, should find out with the related department on what cause the delay and solve it.

ii) Promises – Whatever promise to clients, must remember and fulfill it. During the conversation with clients, sometime client will ask questions which promise feedback to them later, in order to prevent accidentally forget, the best way is immediately write down to phone note pad or book.

iii) Filing Document – Filing client document to a client personal file to keep track all the copy of the documents that submitted to the life insurance company. This could be used for future reference when need the relevant information.

There, you have just 4 key tips of becoming a successful financial consultant. The truth is, it’s applicable no matter which profession you may be in. Can you imagine that as a Graphics Designer, you always never adhere to deadlines set or always try to give excuses for your delay? Do read the tips, understand and apply them. This is not a theory, it is a tried and tested method by someone who has made it in her own career. All the best.

written by Crystal and edited by Charles. Mail her if you need help and you are based in Penang. (
tcc_crystal@yahoo.co.uk
)

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Secure and protect your wealth – Part 1

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Top Four Tips for Property Investment

Please enjoy another informative article from
loanstreet.com.my

Property investment: it’s the domain of property tycoons and multi-millionaires, isn’t it? Not necessarily my friend – with a bit of capital, some know-how, and lots of research, even you can start your own little property empire. Whether you’re aiming high and dreaming of becoming a big property player, or you just want multiple passive streams of rental income to give you a comfortable life, property investment isn’t as scary as it seems if you are willing to learn. Here are the top 4 tips for property investment to help you get started!

Location Matters

It goes without saying that a piece of
real estate
 is stationary. The property you want to buy isn’t gonna just stand up and move to a better area overnight. Hence the location of your property makes a huge impact on its price and potential growth. ‘Location, location, location,’ as the saying goes.

So what are the things that make a
good location
? Well, to put it simply: is it a good place to live or work at? Think about convenience. Is your property within easy reach of amenities and public transport? Is there a train station nearby? Are there any universities or office areas nearby? All these things have a big hand in determining the price of your house as well as how much you can charge for rent.

If you are planning to rent it out, you should definitely take the distance between your own home and the property into consideration. Staying near to your rental property gives you the advantage of being able to handle maintenance and address tenant complaints more easily. If you want to take a less hands-on approach, however, or if the properties you plan to purchase are far away, you can consider hiring a property manager to help you manage your portfolio for you.

Find A Good Real Estate Agent

Never underestimate the power of a good real estate agent. The right agent can work wonders for you and take a lot of the stress off your shoulders. What
property
 agents offer is the professional expertise and contacts that you may not have. They make your work much easier and can also potentially sell/
rent
 out your property quicker much quicker than you can.

If you’re
house
 hunting a good agent can help you find ideal properties based on your stated needs and they’ll also help with the negotiation process so you can get a favorable price. As for renting out your property, they can help you with the searching and screening process for potential tenants. It’s always good to have a healthy relationship with your agent in order to ensure that the both of you can benefit from each others’ patronage.

Research And Compare For The Best Loan

Properties are illiquid assets, as such it may not be a good idea to tie up all your money in them. The process of selling a piece of property can take anywhere from six months to a year or more, and even then you may not be able to get a good price for it. So financing your investment by taking out a mortgage loan is usually a given. However, it is important to educate yourself about the various loans available to you on the market so that you can find the one that suits you the best. Learn about the different
 interest rates
, settlement cost and prepayment penalties that different banks offer. You can use Loanstreet’s free
home loan
 comparison tool  to easily compare and apply for the best mortgage for you.

Also if you decide to finance your property purchase with a loan, you can use the money you earn from rental income to cover your monthly instalments. Find out how much rental income you can  expect to get and compare it with the amount you have to pay every month. It’s ideal for your instalments to be around 60% of your rental income so you can still make a profit and also cover the cost of maintaining the property.

Different Types Of Property For Different Needs

Landed properties
 are more expensive than apartment units. However by the same token, they also appreciate in value much more than apartments too. If you can, try to buy a landed property, even if it’s just a single-storey house. It will benefit you more in the long run.

Of course, this is not to say that
apartments
 are worthless as an investment. Apartments are popular for renting out, and their cheaper prices also can be attractive to first time property buyers. Always buy within your means and don’t overstretch your budget.

Also remember to take into consideration the freehold or leasehold nature of your property. Freehold property has no maximum leasing period which means you can own it forever. Leasehold property have a finite leasing period (usually 99 years) is renewable. These can affect the price of your property. A freehold property is more valuable than a leasehold especially when there aren’t many years left on the lease.

Conclusion

Property investment may seem daunting to the uninitiated, but The purchase and selling of a property is not an easy process and will require a lot of work. By reading this article we hope that we could clear some of your concerns and aid you in your investments.

article from
loanstreet.com.my
 posted on 30 May 2016

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Buying a home – how much am I able to borrow

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Franklin Templeton on Malaysia’s economy and deficit

This is what Franklin Templeton said about Malaysia,
in summary
. Who is Franklin Templeton? It is one of the world’s largest asset management groups (WIKI) or read about them
here
.

Malaysia has progressively narrowed its fiscal deficit, putting in painful measures such as the Goods & Services Tax (GST), reducing fuel subsidies and diversifying its economy. (Yes, if Malaysia’s revenues were solely dependent on oil, we might have gone bankrupt)

About the recent Budget 2017, its executive director/head of Malaysia fixed income and sukuk Hanifah Hashim said, “It is a fine balance to strike, but if it is well executed it can provide grease to the economic engine to generate economic activities and boost business confidence.”

About progress towards developed economy, Hanisah shared that since Malaysia has been diversifying its revenue, it continues to show its
competitiveness among its emerging market peers
. (In my personal view, we are definitely in the top tier of the emerging market peers. Yes, I am confident of my investments within Malaysia)

Other attributes include the fact that Malaysia is still
continuing its trade surplus
, GDP growth is likely to be 4 percent or higher. IMF projected it at 4.3% in 2016 and 4.7% in 2017. The government says its between 4 to 4.5 percent and Malaysia Institute of Economic Research (MIER) projected the GDP to be 4.2 percent. I could not find a single prediction of GDP Malaysia being negative, yet.
BNM is expected to continue its accommodative stance
 and Franklin Templeton expected one more overnight policy rate cut. (Yes, this is the reason why US$ is rising in value versus Ringgit. The Fed is expected to INCREASE their rates… whatever)

By the way, if Malaysia’s economy is about to fail, it’s best not to touch any property. It is suicidal. If Malaysia’s economy is doing extremely well, we may not get the chance to buy at a good value. It may be a clever move to buy when it’s more neutral perhaps, when Malaysia is nowhere near bankruptcy and no one is queuing to buy in every property launch. (I have never queued then, now and in future. With so many new launches and transparency of information,
let’s just buy objectively.)
  Happy reading.
written on 24 Oct 2016

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Fraudsters are everywhere, always be wary

How many of us have received calls that there are problems with our credits cards and that we must provide our login ID and password to check it out? Actually, if the bank is the one calling, why would they be asking for your login ID and password? These days, it’s becoming even more sophisticated and during one radio talk recently, the guest speaker said that these days, the act of trying to cheat you is ‘industrialised.’ These fraudsters are setting up  call centres and they call thousands of people every weekend and millions of phone numbers every month. It’s a probability game and somehow, someone would get cheated. Please, just be very alert. Objectivity helps tremendously to keep our greed from clouding our minds, ok?

What about when we wanted to buy or sell properties? My personal advice is to engage licensed real estate agencies or registered real estate negotiators. First of all, there is no guarantee that these people would not cheat you. However, the total number of unregistered brokers are 5 times higher and it is safe to say that the chances that you will be cheated is much higher. One real case happened recently. A fraudster cleverly used Mudah.my to advertise for some properties to sell and pretended that he was the owner. Somehow, he managed to con buyers to pay to his bank account directly. He managed to cheat RM30,000 from three people last year. Fortunately for us, he was caught and sentenced to five years jail and four strokes of the rotan by the Sessions Court.

Do you have such experience to share? Actually, it’s so important that all of us who know these potential cheating cases to keep sharing because everyday, someone is somehow cheated. Those caught and sentenced should be publicised as much as possible. Not so much to scare the fraudsters but more to remind people again not to be so foolish to believe whatever people say or tell them. Happy keeping away from these cheating cases.

written on 12 Dec 2015

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Free and Fun for family with small kids (Saving for property, haha..)

Do you have young kids and you want something FREE, FUN and yet everyone gains a lot of new knowledge doing it TOGETHER? Well, libraries are a good place to bring your kids. First of all, how many books have you read for the past 10 months? If you have not been reading, chances are, your kids are not really reading too. It’s actually a culture which usually start with encouragement from the parents. These days I do not read as much as I did when I was in secondary school but a few books per year is still quite certain. As you know, we must buy some books which is deductible for tax… right? Haha. Anyway, I used to read over 150 books at the highest point. Yea, I am serious. My father would borrow a couple from his library and I would read at least 2 per week because I was a librarian and I am used to hanging out at the library nearly everyday after school. What a boring life? Haha.

The one I usually go to would be the
 National Library of Malaysia, the kids library.
It’s along Jalan Tun Razak and parking is usually not hard on weekends. It’s not something very impressive but it has enough books to keep my daughter interested, whether English, Chinese or even Malay. Yes, she is great in all three (I do not believe one is superior than the other) and she is already better than me in Chinese…. Hopefully she learns more Hokkien and Cantonese as she grows up too. Borrowing a few books per week would already be a few hundred per year and if it’s RM20 per book, I would have saved easily a thousand ringgit. Knowledge is free as they say, parking too! Well, if it seems a bit far, there are
many more at this link here in TheStar.
 I have not visited any of them but if you did, do let me know if they are great yeah.

I have also been to the KL library in Bangsar South but the number of books there are much lesser. Parking is free and parking is easy during the weekends too. Sigh, somehow parents prefer to bring their kids to the mall perhaps. Haha. Another very impressive one is the
Perpustakaan Raja Tun Uda in Shah Alam, Selangor (article in TheStar).
The official website here.
That one looks modern but parking is not that easy. Take a look at the image to understand what I meant by impressive. I have also been to a couple of libraries in Ipoh too and they are usually pretty friendly to kids. As a parent, I think there are more tolife than just smartphones or malls. Our kids need our guidance and well, libraries can be a good place to be. Free, Fun and lots of learning for you and me. Hey, RM1,000 savings per year from books can go into the property investment fund too. Haha. Be happy!

written on 15 Oct 2017

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Planning and investing for you and your family

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Free homes but you need to be of working age.

Homes in Tokyo is pretty expensive. It’s easily on the top of any world city ranking for house price. According to one recent number this year, the average new home price in Tokyo is US$603,000 (RM2.5 million) While no size was mentioned but Japanese are not known to love huge houses. Here’s
that article in resources.realestate.co.jp
. On a year vs year basis, the price has gone up 8.5 percent. However at the same time, Japan is also an ageing nation which meant that the young population is actually fewer than the older ones. Japan’s median age is 46 years. Briefly, in 2017 the population actually DROPPED by nearly 400,000. “Number of babies born in 2017 was 946,060. Number of deaths was 1.3 million. It meant Japan’s population fell by a whopping 394,373 people in 2017.”
Article in businessinsider.my here.

What this meant for Japan as a nation is that many old homes are now abandoned, especially in some towns where the working population is equal to those over 64 years old. Here’s one
Article in Japantimes.co.jp
  What is happening is that some towns are now offering homes to lure the younger population to move into them. In fact if they were to stay in them for 15 years, the homes may be transferred to them! Two awesome things here. The town planners are very creative and clever. Luring younger population will rejuvenate the town. Second thing is that the younger generation who may struggle to buy an expensive home to grow their family could actually do it for almost free!The town provides up ¥2 million for renovations. There are definitely requirements to follow though: some of those programmes are geared toward married couples aged 45 or below and families where the parents are 50 years old or below with a child who is of junior high school age or younger.
 Here’s that article for reference.

Malaysia has around 20 years more to reach the ‘ageing nation’ status but if we look at some older towns, this same issue which Japan is facing is also happening too. One day if the property prices are totally out of reach of some households, it is actually possible for the government to step in and do something similar. Many of these smaller towns are connected via trunk roads but many have attractions which could be a selling point for more visitors. They however need a younger population to maximise the potential from these visitors. Relying on just the 65 year olds to open shops or restaurants or even some businesses is going to be tough. Some schools in these small towns may have fewer students than the teachers! I see opportunities for the government to start thinking and learning from all these advanced nations who are already facing this situation today. Waiting may not be an option. Happy learning.

written on 18 Nov 2018

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Median property price KL? RM530,000. Approval rate? 77 pct.

Source: housingwatch.my

Do you know that the median property price for KL is RM530,000 for 2016? Source: NAPIC, Malaysia. Median household income for KL? RM9,073 for 2016. Source: Department of Statistics, Malaysia. The approval rate thus far? 77 percent. In other words, nearly 80 percent of all applicants do get their loans approved. Take a look at the stats from
housingwatch.my
  What about Penang properties? Median property prices at RM355,000 and the household income is at RM5,409. 76.3 percent of anyone who applied for a home loan in Penang gets approved. Yes, I consider this to be a high number still and nowhere near the ‘sure cannot get loan’ comments prevalent today. If we look at just these median numbers, it seems that KLites should find it easier to buy a home compared to Penangites. After 5 years working in KL, I think I prefer the environment and the opportunity here even if I still love Penang a lot and still have homes there. These days, I travel there nearly weekly too as my HQ is there.

Here’s the image for Penang property market. We could see that the approval rate was highest in 2015 for Penang and has continued to drop over the next two years. Look carefully and you would notice that the approval rate for homes above RM500k is higher! Yea, it is easy to note that the wealthier ones are still buying and banks generally love them. For all the other states, do view the site or
 click here for direct link.

Still not enough information yet to make your decision whether to buy or not to buy that property? Well, besides this property blog that you are reading, housingwatch.my is another new one and pretty informative too. While I am not sure who’s maintaining it but the person seems to pick articles from many media organisations in Malaysia today. We will see if it picks anything from kopiandproperty.com in the future. 🙂   Do note however that one must still understand enough to make sense of all the articles because I found many articles telling readers that rental is a good aim instead of just buying. I think it may make more sense to buy within one’s own affordability and not renting and keep making the owners of many units rich and happy. To buy, of course one would need to really save… Beyond just information, there are also some good tools for everyone to use. Readit here:
Some resources we have for our investment

Will keep reporting new informative sites as and when I found them. Happy buying?

written on 8 Dec 2017

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Free Talk: Cracking the Mortgage Code?

[Paid Post]
Learn how to improve your
mortgage approval with Miichael Yeoh

About this event

2020 was a year most of us would like to forget because of COVID-19. Hopefully, it does not return. The pandemic created havoc around the world. Travelling stopped, lockdowns started, businesses close and unemployment soared. Never in my 23 years of working life that I have encountered such a magnitude of “obstacle.”

Whether we like it or not, we have to face the reality. Life must go on. Some people even turned this into an opportunity even as many who were clueless suffered. One thing is for sure, we need to take action.

From the banks’ perspective, the risk of lending has increased tremendously. They are worried with borrowers falling behind on loan repayment. Thus, every bank has tightened its lending policies to manage this risk.

2021 will be a challenging year.
 The banks have evolved because they have to manage uncertainties. If you are thinking of applying for a loan in the near future, then you will need to think how the banks think. You will need to think like a banker and act like a player.

This is a must attend seminar for anyone needing a loan.
 I will be speaking on, “Cracking The Mortgage Code”. This will help you have a better understanding on how banks work behind the scene and with knowledge comes power. It will improve your loan approval probability tremendously.

If you want to know more on Miichael Yeoh
please click here

Hurry up and sign up
NOW
as we have limited seats.

See you soon.

Best Regards

Team GM

Sign up here. (FREE)

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Freedom Day starts in the UK. (against Covid-19?)

I am one of the few who continued to remind everyone that there’s a huge difference between having 10,000 infections versus 1,000 people being hospitalised everyday. If we have 1,000 people going into hospitals everyday, we will soon have 30,000 in hospitals after 1 month. That’s not great even if it’s not crippling yet.

However, if we have 10,000 infections (because Delta is really crazily effective versus ALL vaccines whether from US, UK or China) and only 150 goes into the hospital, then by the end of one month, we only have 4,500 people in hospital. This is manageable.

Let’s understand the difference. However, I DO NOT AGREE that face masks are NOT necessary yeah. These are still a must, for me. As for the UK, this has happened. Good for their brave government making decision based on existing data versus just people opinions. Until today we still have people refusing to get vaccinated… So, we stay in lockdown forever??

Article in nst.com.my
  England lifted most pandemic restrictions on Monday. At the same time, Vietnam locked down much of its population Indonesia has clocked record daily deaths and France will set tougher vaccine rules. (good for France!)

The daily infections in UK has climbed and averaged more than 50,000 per day since last week and Delta is the cause in many areas. Nightclubs in England reopened their floors to dancers at the stroke of midnight for the first time since March 2020, while sports stadiums, cinemas and theatres can now run at full capacity.

Australia has also seen an outbreak in its two biggest cities; Sydney and Melbourne. Lockdowns are also in place too. In an upbeat move however, Canada announced it would reopen its border to all vaccinated foreign travellers on Sept 7. Please do read the very comprehensive article here:
Article in nst.com.my

If we did not know, then please get to know these:

Flu is very deadly and kills more than 30,000 per year just in the US alone. In 2017-2018, over 60,000 people died in the US just for flu alone. This is why we could have flu shots and live with it (flu)  because it’s not going to go away anytime soon.
Here’s that article if you like to read more
 and by the way, the flu is NOT deadly in just the US.

Covid-19 is unlikely to become zero cases anymore. The more relaxed the SOPs are the higher the number of infections would be. Look deeper and understand if the system could handle it. Take appropriate actions because truth is, livelihoods versus lives are an important balance we need to make.

Stay Safe everyone, precaution / prevention is certainly better than cure

Masks are necessary and STOP saying that there were nobody in my shop, so I took off the mask and then the officers came in and fined me. WEAR THAT MASK OR YOU WILL BE FINED. Period. Stop saying that I did not know. GET TO KNOW OR YOU WILL BE FINED. Period. Stop saying I did not know about this SOP. FOLLOW OFFICIAL NEWS and not your viral whatsapp news and it’s our responsibility to be updated because what we do affects everyone else. Period. Thank you all. Kita Jaga Kita starts with Kita Semua. Not just Kamu or the government.

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Freehold or Leasehold? Of course freehold lah, if it’s a choice

I remember when my cousin sister asked me about a leasehold project in Sri Petaling. I told her to go ahead and buy as long as she likes it and the place is convenient. She bought it for just below RM200,000 many years ago. It’s 800 plus square feet. Guess what, the price has more than doubled thus far. So, does this mean leasehold is equal to freehold? Legally, whether it’s leasehold or freehold, it still may not be yours forever. Just ask those whose projects were obstructing a public transportation project for example. They can still be paid compensation and asked to leave. Of course, if we are 30 years old today and we bought a leasehold project of 88 years, then we will lose our house when we reach 118 years old (if we did not renew the lease) and by our children may be 88 years, the grandchildren may be 58 years old and even the great grandchildren may already be 28 years old. 🙂  However,
given a choice and at the same price, of course I would take freehold lah
.

Status matters, right.

Reported in NST
was comments by Country Garden Pacificview Sdn Bhd executive director Datuk Md Othman Yusuf about the recent uproar over the freehold status for Forest City. He said, “If you go to Medini, Danga Bay and other areas in our country, freehold is very common. The reclamation in Penang now is freehold. To attract investors to come in is not an easy task.” He also rubbished claims that Chinese buyers in the Forest City would gain citizenship. “It’s not like a golf club membership.” He also shared that assuming Malaysians go overseas and qualify for citizenship, the government of the day in the countries would be deciding. It’s not automatic. He also commented on the recent comments by many parties on the fact that foreign ownership may threaten Malaysia’s sovereignty. “What these people say is so unfair. Why do they focus on freehold just for Forest City as if it is bad for giving freehold. Why focus on us? Why not mention Penang? Selangor? I cannot answer on their behalf.”

Actually, if buyers of properties can threaten the sovereignty of a country, I am not sure how threatened Australians should feel because
Chinese buyers buy A LOT of units there.

Plus the fact that Australia has a lower population than Malaysia. Let’s not even get started with the fact that less than half of London’s population are not white British…
BBC report here.
 24 percent are non-UK citizens. Yes, this is an actual article by BBC. Please also google to understand which country in this world owes China the most money… At this moment, Malaysia is nowhere near the front few. No idea what will
happen in the future lah.

I do not have a crystal ball. However, I am one who feel that Malaysia’s property market has lots of potential and should not be stopped simplify some comments. Not just Iskandar,okay. I hope that the investments into Malaysia goes into more cities and towns. Hey, perhaps then the critics can say it is an ‘invasion.’ Happy reading and following.

written on 4 April 2017

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FREESIA: Be free with spaciousness, enjoy lots of amenities and have accessibility to places you want to go whether weekdays or the weekend.

[Sponsored Review]
FREESIA: Be free with spaciousness, enjoy lots of amenities and have easy access  to places you want to go to, whether on weekdays or during the weekend.

Property investment usually starts with buying a property we stay in. Thus, it’s important to think and plan ahead for this first property. For some of us, we may be thinking of an upgrade from our rented place or a smaller place. This requires planning too.

Let’s look at  a typical example of a home for a family, and perhaps even couples looking at sufficient space for many wonderful growing years ahead.

Family needs come first

When we are asked what is the one thing we have learnt from the current COVID-19 pandemic, one of it would be the need for space. The truth is, employees are not allowed to return to the office because if all of them did, then the space is just not enough to allow for sufficient social distancing. So many are working from home today and it will be more common moving forward too.

This was also why in terms of property transactions, we could see that people were buying landed homes even more versus high-rise. This was evident in Q1 2021 as per NAPIC’s report.

What this tells us is that when it comes to buying a property during this period, the buyers are usually buying for their own stay. They are buying for a family, maybe. This is one reason transactions continue to happen. For a long term purchase and for a family, this remains a very sound decision; landed property.

Working in Johor and thinking of choices beyond just high-rise units?

If we are working in Johor, beyond the usual high-rise units, do we have landed choices? How about a home sweet home with 4 bedrooms, 3 bathrooms and is also designed with practical and spacious layout? A home which will cater to  the family and even occasional relative visits for a very long time to come?

The answer may just be Freesia by  award-winning developer, Glomac Berhad. It’s located in Saujana Jaya, Johor. This is a 2-storey terrace house and the price starts from just RM398,800*.  The size of this 2-storey terrace home is 1,750 sq ft. The price and the size gives both affordability and the space advantages.

Are there ready amenities near Freesia?

When we buy into a new township, the amenities will take some time to build. Freesia is surrounded by many mature townships. This is why buyers of Freesia would enjoy amenities which are already serving many of these townships currently. In fact, this is one sign that I would look for; a development which meets my price and size needs, and yet be surrounded by mature townships.

Even though we may prefer to do our banking online, we will be glad to note that financial centres are merely 1km away from Freesia. Another amazing part about mature townships is that all the other creature comforts like a shopping centre or eateries are also ready as well. Just need to find that favourite spot to go to again and again.

These shopping conveniences include Tesco Hypermarket, Econsave Hypermarket, AEON Mall Kulai and even Johor Premium Outlet too.

For family with children, there are schools and tuition centres too. There are also universities too; Universiti Teknologi Malaysia and Southern University College.

What about connectivity for Freesia?

Let’s understand that we want to be near enough and yet not be next to  noisy expressways. Freesia has access to the Federal route to Johor Bahru / Kuala Lumpur. It is also just 9.5km to the North-South Expressway via the Kulai Toll Plaza / Sedenak Toll Place. This is super advantageous for some of us intending to go back to our hometowns somewhere else or if we just like to take a short  holiday during the weekends.

Beyond just driving, there is also an ETS via Kulai Station and this is targeted to be completed at the end of 2021. This ETS service is only 9.8km away from Freesia.

For the ones using the Second Link Expressway, you would be happy that Freesia is merely 8.7km away from the link.

Weekends for Freesia owners?

One reason why I would be going to Johor again is also to just relax at the Desaru Coast. There’s a 17km beachfront there. By the way, this is not man-made beach yeah. It’s as real as it gets and it’s facing the South China Sea too.

There are many award winning resorts along the coast and if you stay in Freesia, you are just 19km away from the Senai-Desaru Expressway which has cut the travelling time from 2.5 hours to just 1 hour. Take a stroll along the beach like every other weekend?

Choosing a developer who has been developing since 1988

When we invest our hard earned money, it’s good to buy into properties where the developer is financially sound and has always been around. We need to remember that buying a property means many hundreds of thousands of ringgit and we want to enjoy our stay in the property we are buying too.

Glomac started in 1998 (that is 33 years and counting) and it was listed on the Main Board of Bursa Malaysia on 13
th
 June 2000. Briefly, everyone could follow their financial developments every quarter too as they need to release their quarterly set of results.

Chance to win a Proton X50!

On the latest news, check out Glomac’s new campaign, called “Something for Everyone” which started on 12 August 2021 until 30 November 2021. One stands a chance to win a Proton X50 together with other attractive prizes when you purchase a home from  Glomac!

Homebuyers are able to visit Glomac’s virtual sales gallery from the comfort of their couch, and participate in the online game contests that allows participants to win monthly gifts such as shopping vouchers worth up to RM3,000, iPhone 12 devices, Samsung tablets, and many more. The contest has started in mid-September 2021 and will  run until the end of the campaign.

“To find out about our latest campaign, log on to
www.glomac.com.my/somethingforeveryone

Specs for Freesia

View a 360 virtual video instead of just photos.
Click here

Ground floor layout

First Floor Layout

Visit Freesia here
  or Contact the team to ask  more questions! For more information on Freesia, feel free to reach the sales gallery at 07 662 6160 or visit
http://www.glomac.com.my

— end of review —

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Freeze! I mean, stop moving please. There’s a virus lurking.

In the current Movement Control Order (MCO) environment, could we move house if that was the initial plan? Actually the answer is a firm, no. For now, you can drive only out if you are under the essential services and has to go to work or you are the head of the family and you have been assigned to buy groceries… Alternatively, that would be to send your pregnant wife to the hospital for delivery! (Congratulations if this is the case and please stay safe).

I think we understand that we could NOT view a property today because sales galleries are NOT under the essential services category yeah. Thus, moving home is definitely not negotiable and we MUST continue staying in that home until 14th April 2020, at least. By the way, this is not happening just in Kuala Lumpur, Selangor or even Malaysia yeah. In the United Kingdom, the UK government has issued a guidance to all home owners.

Article in theedgemarkets.com
   The UK government has urged people to avoid moving house during the coronavirus outbreak. It issued a guide on Thursday (26th March) saying, “there is no need to pull out of transactions, we all need to ensure we are following guidance to stay at home and away from others at all times”.  (Briefly, you can still proceed to buy BUT please stay home and not be with others… Now, how to complete the transaction then?)

UK Finance boss Stephen Jones said, “Lenders recognise that many people looking to move into their new home are facing significant stress and uncertainty due to the impacts of coronavirus.  Current social distancing measures mean many house moves will need to be delayed.”  The pandemic has made transactions increasingly difficult to be completed because the banks could not carry out surveys or get paperwork done during the current nationwide lockdown ordered by Prime Minister Boris Johnson just this Monday (23 March). Please do read the comprehensive article here:
Article in theedgemarkets.com

I guess even here in Malaysia, staying at home is the priority and stop looking for a new house key. 🙂   As for those in the process of buying a new place, I am very sure all parties are also afraid to be cuddled together within the same table while reading through the terms and conditions currently, right? So, now may just be a good time to also understand more about the purchase, perhaps we can even browse all the potential designs we like to do for the new home.

By the way, websites will always be open for viewing yeah. IKEA too for ideas if you think you do not want to buy something which another 18,888 people in the same state have also bought earlier…  So, yeah, FREEZE and stop any thoughts of moving for now. Stay sane, watch all those shows you have missed for a long time.

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Freeze licenses for new shopping malls? Well…

I agree with the assessment that there are way too many malls in the Klang Valley. This will be the case even with more new developments here in KL. Nope, even if I am staying in a
new condo with an integrated mall
, it may still NOT save the mall especially if the tenant mix is not those I love and no visitors from outside beyond just the residents. Most of the time, they will struggle, especially if the mall operators are not those experienced ones. With current times, many are really struggling.

However, not all are waiting to close. Many remain healthy and some are so healthy that car parks couldn’t be found during the weekends or even during weekday lunch time. Yes, the
car park fees remain HIGHLY

standard for these popular ones. So, do you believe having lesser malls would help? Perhaps further new malls so that all the current ones can fare better? I would always advocate for healthy competition. New malls are not the main cause why some malls are not doing well today. Most likely reason is still due to little or no differentiation and even appropriate location.

Reported in
NST
, the Malaysia Retail Chain Association (MRCA) would like the government to stop issuing licences for new shopping malls temporarily. This will help to lessen the effects from
oversupply of retail space
. Its Deputy President, Valerie Choo said, “There will be over 50 per cent increase in shopping mall space (once the new shopping malls are ready). “Too many shopping malls can be tough on the retailers as well.” She gave an example of how the Indonesian government’s decision to freeze shopping mall developments has helped to slow the growth of its retail industry.

Choo also asked the government to get more tourists into the country so that these tourists can spend in the malls. I think it’s best that Choo can also ask the locals to stop spreading the negative sentiment because this is by far a better way to ensure the retailers also benefit. In fact, looking at just Facebook comments would see everyone continuously harping on the Ringgit’s depreciation (
despite the fact that Ringgit is up this year versus last year
). Then, these same people are also asking when is the best time to buy property. Haha. By the way, last year in October 2015, the exchange rate was RM4.46 to US$1. As at today, it is RM4.06 to US$1. Happy buying.

written on 7 Sept 2016

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Freeze! SOHO in Penang.

Recently, the Penang Island Municipal Council (MPPP) classified the two 26-storey condominium blocks of One World and One Sky in Bayan Baru as commercial property. This meant that electricity, water and assessment rates for these two condos are under commercial, in other words, higher. The owners are complaining that the rates are way too high and they cited that the assessment rate of a commercial centre in Bukit Jambul was just RM3,100 for 730sf while they are being charged RM22,800 – RM28,000 for units measuring 1,160sf to 1,450 sf. They know that the units are SOHO as it was stated very clearly in their Sales and Purchase agreement but they are not happy because the amount is way too high!

Due to this, MPPP has frozen every other SOHO developments. For developers who has just SOHO development, I think this will affect them greatly unless the matter is solved soon. Deputy Chief Minister I Datuk Rashid Hasnon said this decision to freeze all SOHO projects was for whole of Penang and is in effect for more than three years. This is because of the two major concerns; whether the buyers should be charged residential or commercial rates for electricity, water and asessment. Secondly how much parking space should be supplied since residential and commercial requirements are different from each other.

I think MPPP may want to study the reasons why SOHO developments in Klang Valley faced no such issues thus far. The decision should also be made fast because without a final decision, the current buyers of One World and One Sky may not want to pay the assessment and is actually committing an offense. the developers with SOHO projects would also suffer and the overall compliance costs would build up. In the end, prices would only increase and again, affects the buyers of such units when it is launched in future.

With land price continue to increase and buyers becoming younger, SOHO may be a solution to those who needs a roof over their head but could not afford the typical 1,000 sf units. With population growth due to the economic growth, smaller units may be key to maintaining affordability. Think about it, the real reason why SOHO came about was because of location popularity and affordability. Everyone wanted to stay at a certain place but needs something affordable, that’s why SOHO became so popular few years ago. There are certainly no SOHO units for locations which are not hot or where prices of 1,000sf condos are just RM300,000.

written on 19 April 2014

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Frequently Asked Questions on Loan/Financing Deferment Measure. (moratorium of 6 months)

If you have a loan currently and you like to know what happens with the loan since there’s now a moratorium on all business and personal bank loans for 6 months beginning April 2020, the below is the FAQ by Bank Negara Malaysia (BNM).
You may click here for the pdf
copy in BNM or you can refer to below.
All images below are from Bank Negara Malaysia website.

Image source: Bank Negara Malaysia

Image Source: Bank Negara Malaysia

Image Source: Bank Negara Malaysia

Image Source: Bank Negara Malaysia

Image source: Bank Negara Malaysia

Happy referring and please do take this 6 months as a time to learn new things as well because uncertainty is the only certainty in this world we live in today. If you disagree, go and have a cup of kopi.  Happy following.

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Fresh Engineer, perhaps Penang is your choice?

There are lots of manufacturing organisations in Penang. One company shut its door last month,
Fairchild
. However, there are still a huge number of technology related organisations in Penang. In fact, it’s the first place that I would always recommend if you are an engineering graduate and would like a place where you can grow your career. From engineers to department heads to even factory managers, these positions are available easily in Penang. My wife’s former company’s factory manager was many years younger than me when he assumed that role. This is Malaysia after all and there’s no invisible ceiling like many other countries where you work as a ‘second choice’ even if they do not tell you so. My friend came back after being sidelined for a younger colleague in a country which says they value competitiveness. Hmm..

For those who thinks Penang property is way too expensive, well I have to tell you that it depends on how you intend to live your life. If you intend to live it YOUR way, then the choices are still aplenty. For example, Relau, Batu Maung, Balik Pulau and even mainland Penang etc. Just do not look at Tanjung Tokong, Greenlane, Gelugor etc. If you prefer to live as what majority of what the islanders of Penang tell you, then be prepared to either earn huge money or have very rich parents. My friend sold his house recently to someone who’s many years younger than him for over RM600k. The buyer said, he will pay CASH. His parents are paying. 🙂

In my 15 years in Penang, I have stayed in Georgetown, Barrack Road (right next to Penang prison), Batu Ferringhi, Tanjung Bungah, Relau and Sungai Ara. I can safely tell you that none are so special that I would be willing to pay a premium of extra 40% for it. Yes, this premium is REAL despite being on the same island. Most of the time, with the pay that you are getting as a young engineer and having worked for a few years, it would not be too hard to purchase a place. Just do not live beyond your means. To me there’s nothing proud about driving a Vios versus driving a Saga because Vios would only be stopping you from your actual investment goals. If you drive a Lamborghini, then you can be proud. Otherwise, sorry yeah.

So, fresh engineers, think about it. A good choice in my opinion is definitely Penang.

written on 16th Oct 2014

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Starting with a ‘peanut’ salary? Think ahead.

Saw a sharing an article about a fresh grad sharing what he can do with his ‘peanut’ salary. He said his salary was only RM2,500. After deducting everything, he had nothing left, not even enough to give to his parents and to treat his girlfriend. Obviously he is getting an above average pay as a fresh graduate because many may not get this pay. Anyway, assuming fresh graduates are really paid ‘peanuts’ as a starting pay , what can you actually do? Let me propose something based on my 17 years of working experience in Malaysia.

First of all, work harder at our job. Learn more. Truth is, majority of all full-time employees are not working as hard as they should, yet. Most of the time, unless pressured or forced, many would be complacent and do enough to pass the day. So, often at the end of the year many would complain that their bosses do not appreciate them and yet they could not find a better job because their skills remain the same year after year. Note, if we can complain that our bosses do not appreciate us, then we must be able to get an offer from another new boss who can appreciate us. Otherwise, the problem is not with our bosses, it is with US, unfortunately.

Once we have safeguarded our job with hard work, let’s take a longer term year view of our lives. Start with the first 5 year plan. Cross out those which would definitely not help us in your 5 year plan. My plan goes like this.

Keep costs low. There is really no need to sign up for the best broadband package so that you can watch latest movies etc. There is also no need to buy a Japanese branded car, whether first hand or second hand just so that your peers see you ‘higher.’ Buy a car with low maintenance and low fuel consumption. The last I checked, it is still very possible. Starbucks? What’s wrong with buying 15 packs of 3 in 1 white coffee instead? Cendol? Once per month is okay. You cannot be eating per day, you will get diabetes. Focus on smartphone, not Samsung smartphone or iPhone.

Stay cheaper
. Further away is okay, change the time you start travelling. If you have to travel earlier, then start earlier! Fyi, there are lots of cheap rooms for rental in Selayang, Damansara Damai, Kajang, Kepong etc. You do not need to stay in Mont Kiara, KLCC, Seri Hartamas etc. Needing to show off? Well, you are just a fresh graduate, what is there to show off. Plus, if you are renting a room in a high-class neighbourhood, you really want to bring your colleagues to view your ROOM?

Invest. No, not buy stocks
 and properties Invest in YOU. Invest in books, invest in workshops, in seminars. Read, learn, read, learn and stop reading useless entertainment magazines. Those Korean stars are not going to make you rich. Read what the successful businessmen did to be successful. Read why investment is the only reason why some people are able to retire earlier. If only everyone is able to improve themselves, we would do much better as a nation instead of the current ‘blame’ culture of both sides. The ‘other’ side is always wrong….

Action. Yes, if you have kept costs low, if you have spent less on your stay and you have invested in yourselves, surely you are ready for some actions. If it’s property, you may need to save for 3-4 years to have enough for a secondary property which you can buy and then rent out the other two rooms. By then, you can start saving for your investment property. If it’s stocks, buy stocks which are really undervalued and have faith. With a little bit of luck, your investment should give you returns which are many times that of FD.

Actually when you graduate at 23 or 24, have you ever thought what would happen to you when you reach 28 or 29? One property which you are paying and second property in planning? By 33, second property and third in the planning? By 37, third property? Remember, everyone has to start somewhere. It’s best to start NOW. Oh yeah, majority of all your peers would always be the usual average and typical full-time employees. They do the same thing everyday and hope for better rewards. Oh yeah, even at 24, you can still be a property tycoon. Read here:
Just 24 already a property tycoon, how?

Long time ago, there were
 no such opportunities.
 Even if you want to buy more than one property, the banks would not lend you the money. If you somehow managed to buy a second property, renting it out is tough. Selling it is almost impossible unless at almost the same price. It’s okay to disagree. Just keep doing what you are doing, there’s nothing wrong, really. As long as all of us are happy in our own little ways. Cheers.

written on 24 June 2015

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From Penang to Bali, a new love?

I have been to Bali 4 times thus far. I love every trip and I would like to go again. It’s affordable enough, small enough to travel and yet big enough to have lots to see. It’s peaceful enough and I do not feel like it is an unsafe place or somewhere I feel every one is trying to cheat me. In short, Bali is great for holidays. However, when you ask me to choose between staying in Penang or Bali, there’s actually no comparison. One is far superior compared to the other, when you are talking about a city modern enough with great connections to other places and the world together with a UNESCO Heritage City and even it’s very own forest reserve within the island itself, it’s Penang.

Bali has all the attractions of a holiday home but Penang is definitely better when we are talking about a longer term stay, perhaps for retirement.  If you ask me whether Penang is my first choice, I am sorry it is not. However, when some foreigners give some excuses to say that Bali is going to be better than Penang in the near future, this is totally unjustified. As someone would argue, this is just a personal opinion. Since some foreigner has spoken, I should be allowed to reply, right? In fact, in an article in a local English online site, the foreigner actually posed a question of whether Penang is getting too developed and thus no longer suitable to live. He said he might consider moving to Bali. As long as he really do believe Bali is better, sure, why not? After all, I think he can sell his place in Penang and surely would be able to get a similar if not bigger place in Bali.

Seriously, I think Penang state government has yet to come up with a really good plan in terms of control of new developments, a concrete enough transportation master plan and even other issues such as building sufficient affordable homes which are in critical shortage due to the sudden price increase for the past few years. However, thus far, I think they are still doing well enough and can continue to improve if the citizens can continue to give rational and objective suggestions. This does not include stopping new developments just so that the existing home owners can enjoy their so-called promised low density lifestyle etc. Especially absurd would be some claims that new developments would destroy the environment and cause congestions etc and thus should be stopped totally. Rather, the focus should be on having regulations and policies and making sure the developers abide by them. There should be no special treatment to any developers and everything should be transparent and above the board. This would be my suggestion rather than any complaints or even threats. Making more noises amount to nothing because the other side can also make noise and suddenly it’s all about who’s louder instead of who’s right, objectively. Penang’s reputation as one of the most attractive and liveable islands in Asia was not awarded to Penang because it’s a natural island full of trees and flowers. It’s awarded because it has everything that people are looking for when considering a great place to stay. Happy choosing the place you want to stay.

written on 17 Jan 2015

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Frothiness building up in property market – Nouriel Roubini

Google him and you would know who this person is. Need no explanation in the economics world. He wrote an article in The Edge recently detailing how the global financial crisis was triggered by a series of collapsing housing market bubbles. He mentioned US as the one most well known. I think all of us remember how the mortgage crisis actually killed off many US banks and at one point in time even Citibank was facing trouble. That has all passed, hasn’t it? Well, he argued that signs of frothiness are now building up in housing markets of Switzerland, Sweden, Norway, Finland, France, Germany and more. As for bubbles, it has started appearing in Hong Kong, Singapore, China and more. He did not mention Malaysia. I hope he did not overlook us but has merely excluded us because there are no signs of bubbles. 🙂

The signs are as follows: FAST RISING HOME PRICES, High and rising price-to-income ratios and high levels of mortgage debt as a share of household debt. Are these applicable to Malaysian property market, well I think to some extent the answer is yes. Nevertheless, his article did not end with a negative note. He merely stated that a lot of the signs that we are seeing today actually reflect a slow motion of replay of the last bubble. The bigger the bubble before it bursts, the bigger the crisis would be.

Please be reminded again, if the property prices moderate with the many cooling measures adopted, this may help to reduce the risk of bubble. In terms of rising price-to-income ratios, I would like to advise everyone again, buy within your comfortable range. If you can afford a RM500,000 mortgage, do not stretch to the max, why not buy something smaller and slightly further away? As for the share of household debt, please do note that even if you are not paying for mortgages but you are paying rental, that’s also a share out of your salary. Imagine if you cannot afford to pay rental. That problem would also be as serious as you not paying your mortgage. Both cases, you may lose a place to stay and be sued in court. Just that it is harder to sue you for rental payment. 🙂

Stay safe, don’t speculate.

written on 14th dec 2013.

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Frozen for KL. Luxury and commercial units development approvals.

Frozen.
Development approvals of luxury high-rise, shopping malls and even commercial units which are over RM1 million are now frozen.
This is the article in NST on 19th Nov 2017.  Finance Minister II: Indefinite freeze on luxury property projects from Nov 1

A friend forwarded this to me and said that the government is now taking action after that property bubble bursting article a
few days ago. Here’s that article again.

Well, not really since the approvals were all frozen from 1st November onwards. That’s 2 weeks back. Finance Minister II Datuk Seri Johari Abdul Ghani shared that the luxury projects overflow is real and the supply by far outstripped the market demand for affordable homes. From the article, I think the freezing is for approvals and not a halt of the current developments. If it is a halt order, I am not sure how the current developers who are halfway in construction would react. Perhaps we can also wait for further clarifications soon since this should be a huge news next week.

In the article, he said, “There is a stark imbalance between supply and demand and we have to review the strategy in real estate development as we do not want such a situation to adversely affect the economy.” (Fully agree. The number of units which are beyond what’s affordable are majority today which meant that demand and supply do not meet.
This is why the number of unsold units are rising; over 40 percent for H1 2017 versus the same period of H1 2016
)
 This measure would be in place until the excess supply is cleared. their units above RM1 million. He also shared that the government would continue to drive development of affordable homes, especially those below RM300,000 per unit. He said,
“In this sector, there is a disparity between the 48 per cent demand for affordable homes and the supply that only meets 28 per cent of that.”
(This meant that the demand is by far more than the current supply. It also meant that if there are no measures to ensure the buyers do not sell immediately for profit, the prices of these affordable homes would also be rising very fast, as soon as they are completed probably.)
Here’s the article in NST again.

I would like to reiterate that we do not have enough updated information about the market. Whether it is for buyers or builders or even policy makers. There’s really not enough information which meant that the policies are only formulated many months after, if not years. The luxury condominium market. Are they only facing issues this year or were there already oversupply for the past few years? Many of the numbers are also based on average which does not help much because the number we should be interested in would be the median. Let’s hope all these numbers would be released earlier so that no one could use the gap to speculate as well. Happy following and do note that if you need a home sweet home below RM400,000 it is still okay to proceed.

written on 19 Nov 2017

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Full list of new cabinet of Malaysia. Looking at Finance Minister.

Yes, CIMB will lose its CEO to the nation in this new line-up. Tengku Datuk Seri Zafrul Tengku Abdul Aziz. Yes, he has real qualifications from good universities in the UK. They are as follows: University of Bristol (Bachelor of Science in Economics and Accounting). University of Exeter (Master of Arts in Finance and Management).  Yes, he will also be taking a super huge pay cut of millions down to just hundreds of thousands per year. I wish him all the best and I think this is a very good Finance Minister. By the way, if he could do a good job, it will be a good thing for Malaysia.

As for all the rest of the news and the ministers, there are so many other reports.
One of it is here: thestar.com.my
There are no Deputy Prime Minister but there would be four Senior Ministers including former PKR deputy president Datuk Seri Azmin Ali (International Trade and Industry), Umno vice president Datuk Seri Ismail Sabri Yaakob (Security), Gabungan Parti Sarawak (GPS) chief whip Datuk Seri Fadillah Yusof (Works) and Parti Pribumi Bersatu Malaysia supreme council member Dr Mohd Radzi Md Jidin (Education).

Their deputies are as follows:  Azmin’s deputy will be MCA’s Datuk Lim Ban Hong (who will be made a senator), while Ismail will have Datuk Seri Ikhmal Hisham Abdul Aziz, Fadillah’s deputy is Datuk Dr Shahruddin Md Salleh and Radzi will have two deputies Datuk Dr Mah Hang Soon (who will be made a senator) and Muslimin Yahaya.

The rest of the Cabinet is as follows:

Prime Minister’s Department:

Economy: Datuk Seri Mustapa Mohamed

Deputy: Arthur Joseph Kurup

Special Affairs: Datuk Seri Mohd Redzuan Md Yusof

Deputy: Mastura Yazid

Law and Parliament: Datuk Takiyuddin Hassan

Deputy: Datuk Eddin Syazlee Shith

Religious Affairs: Datuk Seri Dr Hj Zulkifli Mohamad Al-Bakri (to be made a senator)

Deputy: Ahmad Marzuk Shaary

Sabah and Sarawak Affairs: Datuk Seri Panglima Dr Maximus Johnity Ongkili

Deputy: Datuk Hanifah Hajar Taib

Finance Ministry:

Minister: Tengku Datuk Seri Zafrul Tengku Abdul Aziz (to be made a senator)

Deputy I: YB Datuk Abd Rahim Bakeri

Deputy II: Mohd Shahar Abdullah Menteri

Transport Ministry:

Minister: Datuk Seri Dr Wee Ka Siong

Deputy: Hasbi Habibollah

Environment Ministry:

Minister: Datuk Tuan Ibrahim Tuan Man

Deputy: Datuk Dr Ahmad Masrizal Muhammad (to be made a senator)

Human Resource Ministry:

Minister: Datuk Seri M. Saravanan

Deputy: Haji Awang Hashim

Federal Territories Ministry:

Minister: Tan Sri Annuar Musa

Deputy: Datuk Seri Dr Santhara Kumar

Women and Family Ministry:

Minister: Datuk Seri Rina Harun

Deputy: Datuk Siti Zailah Mohd Yusoff

Higher Education Ministry:

Minister: Datuk Dr Noraini Ahmad

Deputy: Datuk Dr Mansor Othman

Energy and Natural Resources Ministry:

Minister: Datuk Dr Shamsul Anuar Nasarah

Deputy: Ali Anak Biju

Home Ministry:

Minister: Datuk Seri Hamzah Zainuddin

Deputy I: Datuk Seri Dr Ismail Mohamed Said

Deputy II: Jonathan Yassin

Health Ministry:

Minister: Datuk Seri Dr Adham Baba

Deputy I: Datuk Dr Noor Azmi Ghazali

Deputy II: Datuk Aaron Ago Dagang

Agriculture and Food Industry Ministry:

Minister: Datuk Seri Dr Ronald Kiandee

Deputy I: Datuk Seri Ahmad Hamzah

Deputy II: Datuk Che Abdullah Mat Nawi

Rural Development Ministry:

Minister: Datuk Dr Abd Latiff Ahmad

Deputy I: Datuk Abdul Rahman Mohamad

Deputy II: Datuk Henry Sum Agong

Foreign Affairs Ministry:

Minister: Datuk Seri Hishammuddin Hussein

Deputy: Datuk Kamaruddin Jaffar

Domestic Trade and Consumer Affairs Ministry:

Minister: Datuk Alexander Nanta Linggi

Deputy: Datuk Rosol Wahid

Communications and Multimedia Ministry:

Minister: Datuk Seri Saifuddin Abdullah

Deputy: Datuk Zahidi Zainul Abidin

Housing and Local Government Ministry:

Minister: Zuraida Kamaruddin

Deputy: Datuk Seri Ismail Abd Mutalib

Science, Technology and Innovation Ministry:

Minister: Khairy Jamaluddin

Deputy: Ahmad Amzad Hashim

Entrepreneur Development and Cooperatives Ministry

Minister: Datuk Seri Dr Wan Junaidi Tuanku Jaafar

Deputy: Datuk Wira Mas Ermieyati Samsudin

Primary Industries and Commodities Ministry:

Minister: Dr Mohd Khairuddin Aman Razali

Deputy I: Datuk Sri Dr Wee Jeck Seng

Deputy II: Willie Mongin

Tourism, Arts and Culture Ministry:

Minister: Datuk Seri Nancy Shukri

Deputy: Datuk Dr Jeffrey Kitingan

National Unity Ministry:

Minister: Halimah Mohamed Sadique

Deputy: Datuk Seri Tiong King Sing

Youth and Sports Ministry:

Minister: Datuk Seri Reezal Merican Naina Merican

Deputy: Wan Ahmad Fayhsal Wan Ahmad Kamal (to be made a senator)

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Fully furnished apartment with rent of RM3.68 PER MONTH by Ikea.

Not a scam BUT…

Okay, it’s not a scam. It’s really happening and the furnishing is by Ikea. The only thing is that it’s not in Malaysia but in Tokyo, Japan. I have also tried to find out how many units are being offered but there has not been any mention of the total number of units. Maybe it’s just 1 unit and this is really a lot more about getting into the news versus some kind of solution for the expensive property rental in Tokyo.

Anyway, the actual size of the unit which is being offered is 10 sq metres. Thus, total size is around 107 sq ft. For comparison purpose, the typical size of a car park is 8ft x 16ft = 128 sq ft.  So, yes, the unit which is being offered is smaller than a typical car park slot. Fortunately, there are two levels. One can just imagine the size now yeah. It’s BIGGER than a typical Segment D car in size. I think if the unit is only for sleeping, it should be okay.

Article in japantoday.com
  Ikea announced that they’ve designed a new apartment that will come with Ikea furniture and it will only be rented out at 99 yen (RM3.68) per month. The apartment is just 10 square meters wide, but with two levels.

The two levels are connected by a stepladder and on the first floor you will find the entrance, kitchen area (with space for a washing machine), bathroom and toilet, whereas the upper loft space is the sleeping/living area. It’s called “Tiny Homes” and what Ikea wanted to promote is that even if the space is small, it can still be a comfortable and a happy place to live. Do read the full article here:
Article in japantoday.com

It’s a good promotion but don’t get too excited

Rather than spending marketing dollars on some campaigns, I think this Tiny Homes by Ikea will likely garner a lot more publicity. Plus it will also help sell a lot more Ikea furniture too. I have never failed to visit Ikea at least once per quarter even if I am not buying a new home. I just love looking at all the designs and usually will buy something every time I visit Ikea here in Malaysia.

By the way, it’s really possible that they may pull something similar here in Malaysia. It will give them super huge exposure as it will quickly become viral if there’s a fully furnished apartment by Ikea being rented out at RM3.68 per month. I mean, even I would try my best to get the unit by registering for the lucky draw. A home to show off to my friends for less than RM50 per year? Let’s do it! Haha. Happy waiting. I am.

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Fully occupied condos will be more expensive

A friend recently complained that the owner of the condo he wanted to buy refused to budge from his sale offer price. I said, it’s okay, move on to the next one. Surely there are other units within the same development for sale? He replied that there are very few other units and in fact he has viewed them all. He then questioned, ‘I thought the property market is in a bad shape now, right?’ I asked him what he meant by ‘market bad.’ He said no one is buying and there’s way too much oversupply of condos. Following would be my short answer to his statements.

No one is buying. I do agree that property transactions are down from previous years.
Property transactions and price, both dropping. (Jan – Sept 2016)

However, the total transactions should still be around 200,000 units which is hardly considered a small number. In other words, many are still buying and those who are buying currently would be people who are able to get their loans approved. In other words, market is not being pushed up due to speculative buying like a few years ago when the total transactions per quarter could even reach over 70,000 units! (Year 2011). At that time, with DIBS, the bravest would go in and buys a few units at one go. Today, brave or no brave, the bank may not lend to you. Plus, how many could come up with 10 percent for first two and then 30 percent for the 3rd property? 30 percent of RM500,000 is an advance of RM150,000!

Latest mortgage approval is on the lowest level
Difficulties in getting a loan will continue… 2019

This meant that there are fewer people successfully buying a unit they want. However, with the current economic situation, banks are also taking a more prudent stance and thus loans would only be given if they believe we can pay. By the way, the banks do not gain much by pushing to declare someone a bankrupt. That’s just the only way to ‘punish’ the buyer who could not or refused to pay up. Total bankruptcies are rising.
82,383 bankrupt Malaysians from 2013 – 2016

Oversupply of condos. Here’s an earlier report.

KL’s luxury condominium market? An update

Plus these days, the overhang of newly launches properties are also quite high, for the not affordable ones. one latest article here:

Unsold primary residential properties? RM8.27 billion worth … (HUGE)

However, these are not an advantage to my friend who was buying that particular condo. He was buying from the secondary market and the development that he was buying is considered fully occupied.

When the development is fully occupied, the supply of available units for sale within the whole development decreases. Due to this, the
sellers have much more bargaining power.
 That was the reason why my friend could not get the unit that he wanted and he could not use the logic of, ‘there are many other units that I can buy.’ Anyway, I told my friend that there are definitely other developments if he is not willing the price that he was offered. He can definitely negotiate better when the development is only partially occupied and there are still many motivated sellers.

written on 11 Mar 2017

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