Phuket for the Chinese investors? Pretty real to me.

Phuket as a property destination? Possibly. I just came back from Phuket after short family vacation. It was my second trip. My 3.5 year old daughter enjoyed it so much that in the plane on the way home to Malaysia, she said, ‘tomorrow we go Phuket again, ok?’ I laughed and told her we can enjoy the swimming pool in my condominium first until our next trip.While I was there, everywhere I went I would encounter Chinese (China) tourists (from the Mandarin they speak, I know). From the restaurants that I had lunch to dinners to seafood dinner in Banzaan, they were all around me. I would say many are also far richer than me from the plates of lobsters on their table.

Today, I read about news that Phuket is viewed as a lifestyle and investment destination by property buyers from China.  According to Charles Pittar, CEOof Juwai.com, the interest in property from Chinese buyers will increase substantially. The full article is
here
. He said, “The past 12 months have seen strong growth in Chinese interest in Phuket, which they have really only discovered in big numbers during the last couple of years.” An amazing number was then quoted. The overseas real estate investment from Chinese grew from US$5 billion in 2010 to US$52 billion in 2014. ONLY over a period 4 years! By the end of the decade, the number is expected to balloon to US$220 billion.

One thing stands out. Everywhere in Phuket is made for tourists. From international shows called Fantasea to riding elephants to temples and the never ending stretches of beaches and last but not least lots of great food. I love Thai food a lot. Oh yeah, I managed to buy many good quality cotton T-shirts for just RM18 and it’s buy 10, free 1. I could not even get such prices in Jakarta, Malaysia and definitely not Singapore. Seriously, Phuket can be a very good place to relax and do nothing. I stayed in a small boutique hotel which was extremely well managed by two Europeans. I think Phuket can attract everyone, easily.

Yes, I think I will be back sometime in the future. I jokingly told my wife that we can get a place in Phuket and I can drop by anytime. She reminded me that the beaches in Sabah are far nicer and less touristy. I have to agree because she’s my wife. Haha. However, for those who wants to feel the vibrancy of this island, it’s just a flight away and Phuket International Airport can still take in more visitors too. Happy travelling and buying.

written on 20 May 2016

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Update. Phuket sandbox for all the vaccinated travellers. How many visited?

Update. Phuket for all the vaccinated travellers. How many visited?

When Phuket announced their plan to open the island to all vaccinated tourists to visit, I think many vaccinated tourists / travellers were happy that they could finally enjoy a vacation in an exotic island. In case many did not know, there are many developed nations which has already reached 50% full vaccinations even in June 2021. So there’s already a huge group of potential customers for Phuket’s Sandbox programme.

Results after 1 month?

So, how was the result after 1 month? Pretty good. In fact over 15,000 of them visited Phuket within July 2021. That’s roughly 500 tourist arrivals per day. If we assume all of them stay in a room for two, then they would have occupied a total of 7,500 hotel rooms! If every hotel has on average 100 rooms, these tourists have helped 94 hotels to achieve 80% occupancy! I think this is a good result.  Kudos to Phuket for trying this.

I do wonder which island in Malaysia can get approval to try something like this.

Article in bangkokpost.com
   As of Monday, 15,169 tourists visited Phuket under the sandbox scheme, which began on July 1, bringing in revenue totalling 818 million baht. (RM104 million). Nanthasiri Ronsiri, director of the Tourism Authority of Thailand’s Phuket office shared the following information.

By nationality, the Americans made up the largest group, followed by the visitors from the United Kingdom, Israel, Germany and France, respectively. Before the Covid pandemic, Phuket was home to 1,900 hotels, with 140,000 rooms in total. At present, 378-400 hotels are operating, with a combined 30,000 rooms. Please do read the
article in Bangkokpost.com
 with more details.

Tourists are aplenty, now it’s only how to attract them

ASEAN wise, except for Singapore and Malaysia, most countries are still at a low double digit or even single digit when it comes to vaccinations. This meant that any travel bubble even within ASEAN may have to wait a little longer. However, look at Europe and we suddenly have a huge group of potential travellers who may need to do some revenge travelling. It’s how we attract them.

We can see clearly that all the tourists came from countries where vaccinations have long exceeded 50% since June 2021. Oh yeah, I do wonder why they only stay 11 nights at hotels. Haha. They are supposed to be there for 14 days.

Anyway, Phuket has proven that this can be done. It may or may not have hit all that they have targeted but just achieving what they achieve; 15,000 tourists in one month, that is already super amazing. Yes, I will definitely be flying to any island in Malaysia offering something similar. As long as I know I am in the company of the vaccinated, I do feel safe enough.

By the way, there’s not going to be a total zero cases of Covid-19 for a very long time to come. None of the current vaccines can prevent infections but they can still prevent hospitalisations very well. Happy understanding and if you happen to be in Phuket as you read this, please say Hi!

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Pinewood, Iskandar, Marco Polo

What’s the possibility of a drama which is shown to the world being filmed and produced from Iskandar Malaysia? Apparently, it’s already happening today. Pinewood Iskandar Malaysia Studios (PIMS) is currently shooting a drama called ‘Marco Polo’ in Iskandar. No idea when this would be ready but if this is really true, then it is another tiny good news for Iskandar. As per announced, Pinewood Iskandar Malaysia Studios has projected a RM1.8 billion in direct local spending and will create 1,700 freelance jobs for locals within the next eight years. If you divide is by 8 years, this is unfortunately still small, only around 200 freelance jobs for locals. Oh yeah, the Marco Polo series is expected to make its television debut in the US by the fourth quarter this year.

However, do bear in mind that possibilities remains big if everything really falls into place. Within PIMS, there are 100,000sq m of film stages, internal and external water tanks with green screen capability, 2,229sq m of TV studios, 12.14ha of backlots, 6,689sq m of production offices and workshops, and digital state-of-the-art post-production facilities and services. PIMS was build within a 20ha land at a cost of RM550 million and was completed last year.

One colleague just asked me few days ago if I agree that Iskandar is suffering from oversupply. I told her that whether it will have an oversupply could not be seen now because all the units which are approved or in progress have yet to be completed, all are still building. Perhaps we can see more clearly towards end of 2015 whether there are really oversupply. In the mean time, I told her that if she is doubtful, she can continue to concentrate in Klang Valley which she said, ‘Yes, I think that’s better for me’. As at today, I have yet to own any Iskandar property though if you ask me would I buy within the next 12 months, my answer is still, ‘Yes’.

written on 26 June 2014

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PIP Property Summit 2019

Press Release by PIP Property Summit 2019.

Dear Penangites, we welcome you to PIP Property Summit 2019 in SPICE Arena. The dates are 5th and 6th January 2019. (Saturday and Sunday) The time is from 11am – 7pm. Get to view all the best projects side by side so that it’s easy for you to compare and decide. This year, we have many established developers both from within Penang and out of Penang with many attractive projects in both design and price. Understand what’s available for working professionals, families and even property investors.

We are also happy to announce that the first 200 visitors to the show will get free gift. This is applicable for both days. See you there.  For event Details please refer to flyers below:

— end of press release —

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We are PJ folks, we don’t buy ‘those’ places

Buying a property is more emotional than rational lah. Read on. I was at a wedding dinner recently and was seated beside a senior manager of a public-listed construction company. As usual, casual chats was followed with property talks. When I asked if he would be buying places like those in
Semenyih
,
Seremban
,
Kundang
,
Sepang
,
Sungai Buloh
 or
Rawang
his answer revealed something which is good for us to note. He said, “we PJ folks are used to PJ and all its conveniences, we won’t be buying those places. Perhaps for the newer generations.’ I smiled. Actually this was something similar to what was advised
 to me I bought a ‘faraway’ place
 called
Sungai Ara in Penang
 over 10 years ago. The Penangites told me, ‘that’s very far, nothing there, why not buy in Greenlane, Gelugor or Tanjung Bungah?’

With just a small chat, I think we have established one major reason why property prices in these established areas would continue to rise. The support for these established areas is simply too strong from those who are staying there today plus those who wants to also enjoy the same type of conveniences. It is however worth noting that majority of KL folks were from out of KL. Secondly these so-called
 conveniences have been duplicated
 in many other secondary areas as well. Last but not least, majority of us are working full-time and not many are under the top management category who can easily afford to pay over a million for a terrace house which needs further renovation.

We are now left with just three remaining options. First one is to rise to a level which pays us well enough to afford a place in these mature and
established neighbourhoods
. Second one is slightly more realistic, start looking at secondary areas which are not so far away from these high-in-demand neighbourhoods. I personally define these areas to be within 10 minutes away. In other words, on a good day, that’s easily up to 10km away. This actually opens up many new opportunities. Last but not least, there’s really nothing to be proud about if we are struggling to pay for a home that’s already
fully-valued under current circumstances
. Most PJ folks are still there because they bought it long time ago, have stayed there for a very long time and definitely would love to be there for a long time more. Their investments are mostly outside but their home is always inside. Ready for more choices? Happy selecting and if you are living in PJ today, you really do have a nice place.

written on 23 July 2016

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Press Release: PKNS Spurs Market in 2022 With 12 New Projects Worth RM690 Million In GDV

Selangor Development Arm Emphasises Strategic Function, Building Homes And Galvanising Industrial Growth, For Economic And Social Development

SHAH ALAM, 26 JANUARY 2022 – “Our goal is clear, it is to create a better life for all. In pursuit of this dream, we make it our daily commitment to anchor all that we do on good governance, commitment to the environment, as well as social and economic growth of the state and nation.

We are excited to roll out our development plans for 2022 and to see growth both economically and socially in the state of Selangor,” said PKNS CEO, Dato’ Mahmud Abbas, at the corporation’s 2022 outlook briefing recently. The Selangor State Development Corporation, better known as Perbadanan Kemajuan Negeri Selangor (PKNS), is entrusted with the responsibility to drive economic and social growth as the development arm of Selangor. The Corporation, formed in 1964, has developed 11 self-sufficient townships across Selangor which includes a mix of residential growth centres and industrial parks in its 58 years of operations.

For the financial year ended 31 December 2021, PKNS recorded a total of approximately RM900million from the sale of residential, commercial property and land against the backdrop of the pandemic and challenging market conditions. PKNS’ portfolio comprises a mix of affordable, mid-range to high-end residential developments, priced from RM400,000 to RM1million catering to the needs of diverse homebuyers in the state.

In the past year, the Corporation has delivered over 4,000 affordable homes under its Rumah Selangorku range. Despite the challenging market conditions, PKNS also witnessed a growing demand in its mid-range homes evident with the encouraging take up rates for its Rafflesia (Bernama Jaya), Puteri Daffina X (Kota Puteri), Antara Gapi; Selangor Cyber Valley, and Residensi Aurora.
PKNS applies a holistic approach to the state’s development, eyeing 12 new projects valued at an estimated RM690 million in Gross Development Value (GDV) for the year 2022. With a landbank size of 5,972.04 acres, as at 21 January 2022, PKNS says it sees opportunity for growth with the right mix of developments to match emerging market demands. The composition of PKNS’ landbank represents 44% commercial, 13% residential, and 43% mix developments with the largest parcels strategically around economic gateways in Klang, Bernama Jaya and Hulu Langat.

PKNS has set an ambitious target to achieve approximately RM584 million in sales for the year 2022. Leveraging on the strength of its property portfolio comprising over 160,000 homes built across 64,500 acres and industrial developments spanning 11,885 acres, PKNS expresses optimism in achieving its targets and unlocking greater value for the state, the community and its stakeholders.

Entrepreneurs in the state are among the key stakeholders included in PKNS’ development focus. The Corporation seeks to elevate the reach of existing entrepreneurship enrichment programmes namely, the Graduate Realizing Opportunities Way Forward (GROW) Programme, also known as Program Usahawan Siswazah PKNS targeting potential graduate entrepreneurs and the Program Tunas Niaga Negeri Selangor (PROTUNe) targeting high school students, mooted by the Economic Affairs Ministry and carried out by PKNS in collaboration with the Selangor State Education Department. Its goal is to cultivate entrepreneurship and produce resilient, competitive and viable entrepreneurs in the state.

Dato’ Mahmud also highlighted the corporation’s commitment to enhance existing townships and developments, “In addition to new developments, PKNS is also passionate about rejuvenating existing developments by introducing new concepts, repurposing spaces, injecting contemporary designs, and conserving natural gems. We believe by doing so, our developments will continue to excite the community, be it home buyers or entrepreneurs, and uphold the state as an attractive hub for investors.”
~ end ~

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Press Release: Placemaker Awards ASEAN 2021 Recognises Placemakers’ Community Efforts

Kuala Lumpur, Malaysia :
The recently concluded Placemaker Awards ASEAN 2021 (PAA 2021) saw participants from Indonesia, Malaysia, Singapore and Thailand compete to gain recognition as the best placemaker in ASEAN.

“The Placemaker Awards ASEAN 2021 has always focused on recognizing innovators and dreamers who are transforming public spaces to improve the quality of life. The winners of the awards deserve to be recognised for their exemplary contributions to strengthen public space and the communities around them,” said PAA organising director Imran Clyde in his opening speech.

UN-Habitat executive director Datuk Seri Paduka Maimunah Mohd Sharif added that public spaces are a necessary component of our cities.

“Globally, about one-third of a city’s land area is covered by public spaces—ranging from city streets, neighborhood squares, parks to public facilities such as libraries and markets.

“All of us hold the tools to unlock this potential, through progressive and positive engagement with all city stakeholders. We should not be afraid of community engagement but instead we must embrace it,” she said.

According to a World Bank report titled The Hidden Wealth of Cities, many cities around the world are missing out on significant socio-economic and development opportunities by ignoring, under leveraging or mismanaging public-space assets.

The participants competed under seven categories –
Government (Public Space), NGO/Community (Public Space), Private (Public Space), Government (Private Public Space), NGO/Community (Private Public Space), Private (Private Public Space) and Placemaking During the Pandemic.

The Public Spaces categories are for spaces which are open and accessible to people such as parks, waterfronts and public squares, whereas the Private Public Spaces categories include shopping malls and privately owned open spaces for public use, while the
Placemaking During the Pandemic
 aimed to showcase the creativity and ingenuity of placemakers from around ASEAN and how they handled challenges brought about by the pandemic.

Besides the seven categories, two participants also achieved the Placemaker of the Year 2021 award which went to Kota Kita Foundation, Central Java, Indonesia and Jai Baan Studio at Chiangmai, Thailand in recognition for their outstanding efforts in using a participatory approach to curate high quality public spaces for the community.

Mr. Bima Pratama Putra, architect and urban designer at Kota Kita Foundation, winner of the Placemaker of the Year 2021 and Best Placemaker NGO/ Community (Public Space)

Elated at being recognised as the best among 57 participants from all over the region, Kota Kita Foundation Urban Designer, Bima Pratama highlighted that the success of their placemaking efforts relied on the positive engagements with local communities and stakeholders.

“We are very honoured to receive and be awarded as the best Placemaker of the Year 2021. Thank you for the recognition for our work in the small community of Ngampon, Indonesia,” Bima said.

“From our engagement process with the residents of Ngampon we have learned that combining stakeholder efforts with a participatory approach can facilitate far-reaching ideas and possibilities. When spaces are owned and managed by community members we can go beyond design as a product and become tools for change”, he said.

Although it was a tough decision, the judges decided that two placemakers would secure the coveted title of Placemaker of the Year 2021 due to both organisations using a participatory community approach to plan, implement and benefit from their placemaking efforts.

“The network conversation is really connecting globally and how we are all learning from each other and we will keep supporting the conversation in the ASEAN region. We hope this awards programme continues to build that network and communication gets more applicants in coming years,” said Ethan Kent, Executive Director of PlacemakingX,

“I couldn’t be more thrilled with the applicants, they are all winners and they are all great contributors to placemaking in the ASEAN region”, he said.

Organised by Nextdor Property Communications, a placemaking consultancy and Think City, a social purpose organisation focused on urban rejuvenation, PAA 2021 was conceived as an avenue to showcase the best of placemaking projects and give due recognition to community building in the Southeast Asian region.

Placemaking is a multi-faceted approach to the planning, design and management of public spaces that create vibrant spaces that offer local stakeholders a sense of wellbeing, safety and comfort.

According to Imran, there is a paucity of information, especially case studies on how various developers implement community building efforts.

Meanwhile, Malaysian developers and local governments tend to use a top-down approach when carrying out their projects – and in the process, often overlook “human scale developments” and what people need to maintain their physical and mental health which became even more apparent during the pandemic with wide-ranging movement restrictions.

The awards aim to promote authentic efforts to improve the communities through the initiation of projects that add to the public realm and drive greater collaborations in the activation of spaces in where we live, work and play.

Judged solely by an independent panel of leading placemakers and programme partners, this platform serves as a guide to the community, developers or stakeholders as to the best placemaking practices.

PAA 2021 was presented by local placemaking advocates Nextdor Property Communications and Think City, and co-presented by UN-Habitat, European placemaking advocate STIPO, and the Malaysian Institute of Planners (MIP), supported by Kuala Lumpur City Hall, Redha Institute, Placemaking X, Project for Public Spaces, Placemaking Malaysia, PNB Merdeka Ventures, Lendlease, Citi Foundation, and Tempatico, with ISOCARP as official network partner, the ASEAN Post as the regional digital media partner, PR Newswire as the official news distribution partner, and Laguna as the official digital out of home advertising partner.

For more information about Placemaker Awards ASEAN, visit
www.placemakerawards.com
.

–End Of Press Release —

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Plain unlucky or just simply no planning?

I read a sad news in PropertyGuru.com.sg today. A Singaporean women who sold her four-room flat had earned S$198,000. The reason she sold was because she could not
longer afford to pay her mortgage
. The article did not say why she could not afford to pay but with the sale, she bought a weekend car and even rented a private apartment. Note: CAR is a luxury in Singapore. Private apartment is definitely a luxury too when majority of Singaporeans stay only in flats. Well, even with this, S$198,000 should still last a while except that the woman also ‘invested’ in a business venture which was just a scam. Within two years, all the money were gone. One portion was spent on medical bills for her husband who had a serious medical condition.

After finishing her money, the woman and her family slept on the beach or even void decks because they could no longer afford to rent any flat. Their younger children stayed with different relatives. Their lives got slightly better after the housing board of Singapore gave them a public rental flat on compassionate grounds. When these things happen, it’s so hard to pinpoint a blame. Was it because of the husband’s illness which caused all these to happen? Was it because the woman
knew nothing about the world
and thus lost everything? Was it because people taking advantage of them?

Personally, I think it is important for everyone to understand again that money management is the one thing which makes or breaks us. Money management here would also refer to the protection of wealth which must be a

basic thing that every family should have
.
 Always remember that no one can predict anything and thus we should prepare for everything. Stop thinking about the ‘losses’ when you do not claim anything from all the coverage you bought. Start thinking about these as ‘savings’ in case something unfortunate happens. In fact, do we really want to do any claims?

written on 13 Mar 2015

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Plan B,  Ipoh.

Ipoh has been known as the white coffee city. The quality of every coffee shop serving white coffee is above average, just like if you sell laksa in Penang, it is unlikely that the laksa tastes bad. Or you may go out of business real soon. However, these days you can easily find a lot of newly opened wastern style cafes serving their own ‘brew of the day’ and also the evergreen latte. Today, I introduce to you one of the them. Plan B.

Plan B is at Jalan Bijih Timah. It was an old dilapidated building, before Plan B came. At night,  you would not want to be loitering around.  Today it is Plan B cafe.  I love their latte and I would rate it above average.  The beans and the milk is just right. The environment is very relaxing.  Their red velvet cake is the best I have tasted thus far. Another highlight is their deep fried sweet potato which is something you should not miss.

For the price, quality and environment, Plan B might just be your plan A. 🙂

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Plan B, Ipoh

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Planning and Investing for you and your family

This article first appeared in January 2015 Edition of Ivory Living.

When I learnt that my wife was pregnant with our second baby, I was ecstatic! I told her that we must do the same for the new baby as per what we have given our first baby. We must plan for their future. There would be a time when our children would be old enough to start their Degree, either locally or overseas. That’s when a HUGE SACK of money is needed. We can save for them. So, how much should we save? RM500,000 should be a safe number if it is for overseas studies, except for a Medical Degree.

Saving is a virtue everyone must save. Saving for the rainy days. Saving for unforeseen circumstances. Saving for a future purchases. However, when we already have an idea of what we need, we should be slightly more pro-active and use the investment instruments that we have today. Let’s talk about property investment, focusing on only three points as below.

It’s risky. Honestly, is it risky to buy or riskier not to buy? Risky to buy high-rise or riskier to buy landed. The questions are never ending. Truth is, no one can decide for us. If we buy a condominium today, the plus point is we can rent it out. Yes, it’s true, if we buy in Penang, the rental return is like non-existent and we would not be able to cover our mortgage. However, always remember that even for a RM500,000 condo today, based on the usual inflation rate, by the time our child needs the RM500,000 our property would most probably be fully paid and we can sell your property for much more than RM500,000 during that time. If we buy landed, we would need more capital but always remember this, ‘you cannot grow land’. Yes, we can argue that reclamation is possible but honestly, even today, can we afford to buy those properties built on reclaimed lands? If you can easily afford them, you do not need to save anymore. ?

Bubble is bursting / Crisis is coming. If we are able to predict this, we are amazing. Until today, no one can. That’s why it’s called a crisis. If not, everyone would already be ready for it when it comes and it would never be called a crisis. When we cannot predict, then why not take steps to mitigate this potential risk? During bad times, people will downgrade to smaller cars and houses but when recovery starts, housing will always be popular. That’s why home is always ‘home sweet home’ or ‘home is where the heart is’ or ‘what is family without a home?’ If we understand this, then we would know that buying a good property meant sooner or later someone would offer us much higher prices for it in the future because they somehow would need one.

I don’t know what to buy. If we seriously think property investing is easy to earn quick money, then we are just lucky. Property investment needs us to read more, listen more, understand more and invest time and effort. The best part is, once we have done this, the chances of success is quite high. This is not a gamble where we look at the odds and plus a bit of luck and we place our bets and we hope. If we do not know much, then we are gambling. When we know more, it’s called investment. Of course, with any type of investments, there are always risks. Manage them, that’s all.

Property will always be needed. Look at the number of new baby shops today as well as rows and rows of baby products in departmental stores. Read about the statistics of the number of homes being built versus the number of homes needed. Read about the continuous rate of urbanization from smaller towns, villages to bigger cities. Read about the fact that house prices would continue to rise because no one can stop the land, material and labour costs from not increasing. Take action. The best time to buy might have been 20 years ago. Most of us would have missed it. The second best time may be today. Happy investing.

written on 11 Feb 2015

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Investing in automobile numbers? There’s one coming up…. MEANA 2017.

Asset is a positive word. Investments should always be into an asset which may appreciate in the future. What are your thoughts about a potential ‘asset’ which everyone could see everyday, as you drive your favourite car to your favourite places? We are talking about the automobile number or also known as vehicle registration number. Let’s look at a piece of news which was reported throughout the world in many media. The plate number “NSW 4” was auctioned off at AU$2.45 million (RM8.23 million). Guess what, it was bought by a Chinese billionaire. This is despite the fact that the number 4 is considered to be less auspicious for a Chinese. This number plate is considered a rare collector’s item. According to an
article in domain.com.au
, the number plate was previously sold at AU$850,000 (RM2.85 million) in 2015. In brief, a number plate is a rare item and it is possible to increase in price in future because there is just one.

Here in Malaysia, exclusive vehicle registration numbers are always big news. Just last month,
The Yang di-Pertuan Agong, Sultan Muhammad V won two new RR vehicle registration numbers. His Majesty won the bidding for registration number “RR6” for RM459,800 and “RR9” for RM396,980. With reference to an
article in The Malay Mail,
an exclusive number “V1” was won by
Johor ruler Sultan Ibrahim Iskandar with a bid of RM989,780. Sultan Ibrahim was also the winning bidder for the “F1” number plate at RM836,660. Winners of these vehicle registration numbers do not include only royalties but also individuals and companies. Just google for “JPJ Number Plate” and we would realise that even AKU 8055 (AKU BOSS) was won by an individual who has since registered the number onto his motorcycle. Here is that
recent article in The Star about this AKU 8055 story.
From these successful bids, it does seem that these rare numbers continue to enchant all its potential owners.

In comparison to the ‘amazing’ bids for these number plates overseas, it does seem that the vehicle registration numbers in Malaysia is still on the conservative side. Maybe the only reason is the accessibility to some of these exclusive numbers. There is now a chance for the public to bid for them.
MNP Auctioneers
 will be conducting
Malaysia’s Exclusive Automobile Number Auction on 28th September (Thursday) 2017.
 Interested to know more?
Click here for details
 of all the one and only exclusive number plates. Alternatively, call / Whatsapp us at 016 – 440 7740.  Do not miss this inaugural event.
BEST2BID.com

Press Release by MNP Auctioneers (Central) Sdn Bhd.

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A place to feel some ‘magic’ this weekend on 27th January 2018

Need a place to feel magical about? Specifically fun-filled memories and captivating sights? There’s one upcoming event not to be missed. Set to launch on 27 January 2018, Iringan Bayu, Seremban is a new township that features a natural and holistic living concept. The term Iringan Bayu translates from Malay as ‘The accompanying wind’ that is designed to personify an emphasis on better living quality like safety, modern building design and green-living. At the core of this development is the largest Verdant Central Park in Seremban featuring 22-acre lush green landscaped park that focuses on a variety of outdoor activities for the well-being of the residents.

In celebration of the official launch, Iringan Bayu presents “Playground of the Wind” featuring more than 20,000 pinwheels in 10 Wind-spired theme park! Bring your family and friends for a weekend of a colourful journey surrounded by 20,000 pinwheels in the Forest of Chimes, Pavilion of Wishes and Pinwheels of Purity along with a parade of fun-filled activities for your family! From food trucks to artsy workshops; Instagram contests to children games and activities .. You do not want to miss this, especially the shutter-bugs!

Here’s an earlier article about

Iringan Bayu for your reading. 770-acre township, gated and guarded home for you and your loved ones.

Some important links for you:

Website:
http://www.iringanbayu.com.my/

Facebook 1 :
www.facebook.com/iringanbayuseremban

Event page:
*Feel the MAGIC at Iringan Bayu and 20,000 pinwheels
*

AND

Register here:
https://goo.gl/forms/mhDPjS9s0Y3DIDgu1
 or contact 06-630 4656 now. Or just scan below:

See you there!

More photos for enjoyment:

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Playing with ‘Borrowed’ risk. Are you one of them?

I read an article on how banks should keep themselves safe and not cause
another financial crisis
. It said that because banks lends out way too much of their money compared to their actual ‘capital’/equity’, it will become unstable quite easily should their loans they gave out or the investments they invested depreciated by just a little. For example, perhaps a small but prolonged financial crisis which caused
property prices to drop 10%
? I do not think the banks would listen to this advice to somehow invest / borrow lesser than today and to ensure the capital / equity they have is much higher. This is bank. What about us?

How many of us have credit card debts that we are continuously servicing instead of resorting to paying it off soon? Due to the compounding effect of the debts plus the interest rates they charge is up to 18%, it meant that very soon you would have to restructure it or face bankruptcy. Think about it, how many times have we bought
something we could not afford
 but because we have a credit card, we told ourselves that ‘I can easily pay for it over 6 months’? If you have only bought ONE item this way, I think you are still okay. Problem starts when you have ONE item purchased this way every month for 6 months. Suddenly you needed 6 months x 6 months!

Image source:
http://www.advisorperspectives.com/commentaries/matthews_090513.php

How many of us went to view properties that some of our ‘richer’ friends bought. I said ‘richer’ because your friends may also be buying that property because they were also looking at their ‘richer’ friends. Have you ever calculated how much you can really afford? Once you have done that, move one level lower. Say 20% lower. By doing this, you have just
taken a calculated risk
. Yes, buying property comes with risk but if you take a calculated one, even if the property prices went down by 20%, you are, on paper still ok and your mortgage repayments, safe.   A 1,200sf condo may be 20% more expensive than a 1,000sf one but the truth is, if you do not keep loads of rubbish, you can afford to stay comfortably in that 1,000sf condo instead of the 1,200sf one.

How many of us tried to
renovate and furnish our properties
 with the best stuffs because we got taste? The lightings on top of the dining table of the highest quality, the sofa which has a warranty of 10 years, the biggest LED TV you can buy because enjoyment is a must and a 10kg washing machine which costs a bomb today because you wanted to plan for the future? For the lighting, trust me, no one notices it after a while, not even YOU. For the sofa, are you going to use the
EXACT SAME SET OF SOFA FOR TEN YEARS?

 LED TV is the best, every 3 months, prices come down. 10kg washing machine to future proof your growing family? Do you even know that buying a smaller one today and buying a bigger one 5 years down the road meant you gain MORE?

We may have let our guards down because we did not know about it yesterday. The question is, since you now know a little bit today, would you do something about it for your tomorrow. Are you living on a ‘borrowed risk’ life or would you like to live on a ‘calculated’ one instead? Oh yeah, both remain to be risks. If another huge financial crisis comes tomorrow, only those who
kept cash may be better off
. However, if no huge crisis comes within the next 5 years, based on the above, you have already two properties and by the time you retire, perhaps even 3 or 4 properties. Happy investing / buying, ‘calculatively’.

written on 19th Sept 2014

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Demand vs Supply, Location and Price, Your Decision.

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Plaza Rakyat and another China developer, Debao

Another KL property news. Many Chinese (China) developers have set up huge development bases in Malaysia. It began with Iskandar but this has since moved to the Klang Valley. Recent one was Agile, with their Mont Kiara plan. Read here:
Huge developer, big intention, starting with Mont Kiara

One more was in the property news about Plaza Rakyat revival recently, Debao Property Development Ltd from China. Plaza Rakyat is the ‘famous’ abandoned project since 2007 and it has now been taken over by Profit Consortium Sdn Bhd together with its investment partner, Debao. It has also paid RM70mil or 10% of the total price of the property to Kuala Lumpur City Hall (DBKL) as an initial payment.

Profit Consortium lawyer Derek Fernandez said the company will handle all legal claims and there were still some work to be done before the buyers are contacted. The good news is that those with sufficient documentation or even without would be considered for some claims. DBKL would provide them with a list while an advertisement would also be put up in newspapers next year. (I hope the buyers are still buying newspaper today…) These claims would be settled under the RM40 million allocation. According to the article, more than 200 people have invested in the project and many of the buyers were senior citizens and some have passed on.

First thing that they would have to do is to drain out the current pooled water in the basement of the partially constructed building. This will allow them to assess the safety of the structure. There are snakes and haruan fish within the pool. (Haruan should be good for many people!)  Profit Consortium is owned by Maxcorp Development Sdn Bhd, SW Land Sdn Bhd and Abdul Samad Alias. Maxcorp is the private vehicle of Major (Rtd) Anuar Adam who controls Tadmax Resources Bhd (formerly Wijaya Baru Global Bhd), while SW Land is the developer of Sungai Wang Plaza. Debao? Debao Property Development Ltd is listed in the Singapore stock exchange. It started in the year 2000 from Foshan in China. If we google its company name, there are quite a lot of articles about it.

I think it’s good that this huge development would finally be going ahead. It’s location is also considered prime and I seriously think many are already following this development news. However, I do not think they will announce much for now until after the settlement of all the buyers. There’s also little need to rush with the current market anyway. As for the buyers, they just have to be a little patient and wait a little more. Now, there’s finally something for them after waiting for such a long time. Seriously, the response from the DBKL should have been faster and stricter. If the partner has failed to honour their part of the commitment, faster actions should have been taken. Let’s watch this case and see if everything is fully settled by next year. Happy waiting.

written on 8 Nov 2015

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Not 6.9 million please. Plan for 10 million.

Whenever anyone debated with me on Iskandar, I always ask them this question. IF Singapore were to hit the 6.9 million target in terms of population, where would the new population be staying? Within the same island of Singapore? Look at the HDB prices of today. Can it continue to take the pressure of demand versus limited space? Reclaim more land? Hopefully they can buy more land from Indonesia because selling land is currently quite a sensitive topic. Especially if one side is trying to buy them illegally and the other side is trying to look good.

There was one who told me that Singapore is already planning on going underground. I think it’s best that we google and understand about their underground plan. If above the ground is already so expensive, I am not sure how the costs can be lowered when it’s built underground. Air-con and lighting would be enough to scare any planner for this underground new city. Oh yeah, what about the emotion of people who are staying ‘underground.’ Would the rich be taking the lead? If yes, then there’s hope. If not, then it would be another place where the poorer ones would be moving under. Get real, we are talking about usual people like you and me. There’s no need to do a survey, just ask you and me.

Coming back to the real issue. So, where would these people be staying? With better connections, definitely within Iskandar. Places nearest to transportation hubs with access into Singapore within 15-20 minutes and not the current 2 hours everyday during peak hours. Condos with full facilities which are jointly built by Singaporean developers tend to be more trusted currently but once the surge starts, it will boom. Yeah, I am very sure people would now point out that crime rate is high and that these people would prefer to study in Singapore schools etc. As long as that new population can fit into Singapore without any issue, I am very sure they are right.

However, I think my argument has a flaw now. The number I used is wrong. The target should be 10 million and not 6.9 million. This is if Liu Thai Ker has his way. He is the man often credited as the architect of modern Singapore. He said that the future of Singapore lies with population growth. He gave a sobering number. Assuming Singapore has 10 million population and the growth of population is at 1 percent, it meant that as a country, Singapore can only last 100 years. Low fertility rate of only 1.2 meant that more foreigners are needed or the engine stops running after some time.

I certainly hope Mr. Liu gets his wishes and Singapore starts planning for 10 million. A far closer integration for this new growth in population may be necessary sooner rather than later. The closer integration does not necessarily need to be with Iskandar, Malaysia. Perhaps it can also branch out to Batam, Indonesia as well? Or Bintan? Of course, or the underground city that one friend was talking about. I leave everyone to decide on their choice. Mine? Of course, Iskandar lah.

written on 17 July 2015

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Please reduce the SST %. It will help the economy.

If you have read kopiandproperty.com long enough, you may know that I am for GST and against SST. However, I have no wish to debate on this today. Whatever the government of the day has decided, I will accept yeah. Sales and Service Tax (SST) was reintroduced in 2018 and the goods are taxed between 5 to 10% while the services are at 6%. Is this number just right or is it too low (since there is a tax revenue gap between SST versus GST) or is it too high that it should be reduced?

Perhaps the number is just right. However, when the whole nation’s economy is slowing down because of coronavirus, then it may be good to lower the SST tax rate percent so that the effects from the coronavirus to the economy is minimised.

Article in freemalaysiatoday.com
  The Federation of Malaysian Manufacturers (FMM) is proposing that Putrajaya reduce the sales and services tax (SST) by 2% for 12 months as part of a measure to minimise the impact of the coronavirus on the nation’s economy. FMM President Soh Thian Lai says that the reduction of the tax will boost business conditions. He said, “This will lead to higher investments and employment opportunities as well as higher disposable income for the rakyat.”

Soh also suggested the following measures too. Electricity and gas tariffs to be reduced for one year to help lower business costs and sustain operations. He added, “We are also proposing for banks to extend payment terms to affected companies by declassifying non-performing loans from three months to six months.” Besides, the government could also reduce the employees’ contribution to the Employees Provident Fund (EPF) to boost domestic consumption too. Please read the
Article in freemalaysiatoday.com

Well, this was what our Finance Minister Lim Guan Eng said just recently:
GDP forecast to stay. Stimulus if really needed will be later (click to read)
 Perhaps more numbers are needed before a decision could be made. Do you agree that the SST be reduced by some percentage points for one year to help the economy? What about lower the electricity and gas tariffs then? Remember the EPF reduction which happened before?

Do you think these proposed measures will be successful?  Actually, regardless of the measures, we need to ensure the confidence is growing. Else, reducing tax to make the goods cheaper still does not mean everyone will rush to buy. They may feel they prefer to save the money due to the current prevailing uncertainties. Sentiment is thus very important. Stay focused with more good news maybe. That will help too.

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Plenitude: Landed helps, high-rise deferred, GDV 12 billion

When I buy stocks, even the undervalued ones, I would always focus on those which are cash rich or low debts. The reason is because these would be companies that may withstand some slowdown, as long as they did not make a huge mistake in their business. One such company is Plenitude Bhd. For the financial year ended June 30, 2015, the total borrowings for the group stood at RM46.28 million whereas its cash and cash equivalents amount to RM323.17mil. In terms of business, Plenitude is now both a property developer as well as hotel operator. It has the following under its hospitality section. It currently has Glow Penang, The Nomad Sucasa All Suite Hotel, Novotel KLCC, The Nomad Residences, Four Points by Sheraton Hotel and The Gurney Resort Hotel & Residences in Penang.

It aims to maintain property sales of RM250 million for the financial year ending June 30 2016. Within the next two years, it will be launching properties worth RM1 billion. Yes, I think this meant that they are taking into account the current slowdown. According to its executive chairman Chua Elsie, due to its focus on launching mostly landed properties, its performance has not been affected so much currently. In fact it has deferred one of its high rise development called Mandolin Residences in Johor Bahru until the sentiment improves. Plenitude has a few ongoing property projects in Selangor, Johor, Penang and Kedah, with a GDV of RM600 million. In total, it has 1,500-acre undeveloped landbank with a potential GDV of RM12 billion.

With its available cash, it is scouting for good land deals under current slowdown in areas such as the Klang Valley, Penang and Johor Baru. I think pretty safe choices in terms of areas but these days, land prices remain high even if current times may provide some opportunities. It is aiming to have the hospitality division contributing up to 30 percent to its revenue in a few years time, from 10 percent in FY15.  It has reported a net profit of RM155.76 million for the financial year ended June 30, 2015 against RM87.65 million a year ago.

Honestly, nothing too exciting happening but if property investment is a little too volatile currently for your liking, can always buy some property counters and keep for a longer term. This remains a healthy counter and its cash is way above its debt which meant risks are likely to be low, even if the current negative sentiment persists. I know some Plenitude people personally and I think they are working pretty hard. As for the question of whether to buy their stock or not, I have no idea. Perhaps take a look at what a famous stock related site has to say.
I do not hold any Plenitude units currently. Happy selecting the best, whether its property or stocks.

written on 10 Nov 2015

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Penang’s increasing population equals long term demand

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Plenum fully booked in an hour. During this time?

Last week, I shared in a talk that the property market is really not as bad as what some people believe. In fact the demand for property remains strong. Then, that question would pop up. If it’s strong, then why is the overhang property still do high?  Here’s that article to explain yeah.
How many of us are looking to buy overhang property in 2021?
.

As for my personal experience? There has been many where the development was launched before MCO 1.0 and by the time I visited the sales gallery again before MCO 2.0, the properties were sold out or left very few units. Anyway, let’s look at another piece of good news not just for the developer but also a reflection of the property market too.

Article in edgeprop.my
 S P Setia Bhd’s latest landed residential project, 62 units of its double-storey terraced house was fully booked within an hour after its online launch on 14 March 2021. It’s on a Sunday. It’s in Setia Alam, Selangor. Dubbed Plenum, it is the latest Bywater Homes series project in Setia Alam which has a gross development value of RM52 million.

Plenum consists of 62 freehold units with land size measuring 22ft by 70ft. The price starts from RM778,000, and its two built-up sizes are 2,157 sq ft and 2,080 sq ft. Bandar Setia Alam divisional general manager Tan Siow Chung said, “We are elated by the overwhelming response received for Plenum as with all our Bywater Homes’ earlier phases. This is a testament to the trust purchasers have in the Setia brand and in what Setia Alam can offer.”
Article in edgeprop.my

Price is not under the affordable category which is even better news

There are many new launches which are double-storey terraced homes with typical sizes of 18 x 70 or 20 x 70 and it’s priced at an attractive starting price of around RM500,000. Of course the location plays a part but the reason for these starter homes is also to cater to demand for such homes as well as to take care of the pocket of the potential buyers. This is one reason why I think landed homes can continue to be very popular as long as the entry price really allows people to enter into the landed home market.

Let’s hope that we would have of these good news. Especially now that the MCO will no longer be based on the whole state but will be as targeted as possible. Still do not feel positive with 2021? Only you can help yourself yeah. I can keep writing for your information and knowledge in the meantime. Take care and please note that COVID-19 new cases are on the way down but it’s still 4 digits every day.

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Travelling on the PLUS expressway between 4th to 6th February 2022? Read this.

Nobody likes to be stuck in the expressway, I think?

It’s not a happy event to be stuck in the highway for double the time or more than our usual travelling time. The longest I have ever spent on the journey from Ipoh back to KL was 5.5 hours and it was a very tiring one. This is why I would rather start earlier, arrive earlier and enjoy a coffee or meal when I arrive versus spending an extra 30 minutes and then getting into a jam of hours.

For those who like to know what is PLUS’ guidelines for those travelling between 4th and 6th February 2022, the guideline is as below.

News Source: plus.com.my

PLUS ENCOURAGES HIGHWAY CUSTOMERS TO ENTER HIGHWAY BEFORE 9AM
FROM 4TH TO 6TH FEBRUARY ONWARDS

PLUS Malaysia Berhad (PLUS) “Pulang Ke Bandar” or return to Klang Valley Travel Time Advisory (TTA) advises all customers from north and south to enter the highway before 9:00 am for travels between 4
th
 to 6
th
 February 2022.

An increasing traffic trend was recorded on the second day of CNY (February 2nd) when the North-South Expressway saw a surge in traffic from all states. A similar traffic pattern is expected to be repeated this Saturday 5th February and Sunday 6th February as those taking extended off days and school holiday begin their journey back to the Klang Valley.

“We urge the public to plan their safe journey home by following the TTA,” said PLUS Chief Operating Officer, Datuk Zakaria Ahmad Zabidi.

PLUS has made preparations to ensure highway customers enjoy a comfortable return journey to the city. Among these are the deployment of additional PLUSRonda teams to assist those who may encounter problems with their vehicles. Through the collaboration with the Traffic Police (PDRM) and Road Transport Department (JPJ) for enforcement along the highway, arranging RELA teams to facilitate traffic management at toll plazas and rest areas as well as providing traffic information updates through various PLUS communication channels, these initiatives are aimed to provide assistance in case of eventualities.

“Make sure that your Touch ‘n Go card or Touch ‘n Go e-Wallet (for RFID transactions) balance is sufficient to enjoy an interrupted journey at the toll plazas and always adhere to the Covid-19 prevention SOPs at the R&Rs as well as lay-bys. Do use travel apps such as Waze or Google Map to pre-emptively plan your route to avoid traffic congestion along the highway,” added Datuk Zakaria.

Access to the latest highway news, traffic situation across the multiple PLUS Malaysia social media platforms such as Twitter, Instagram, Facebook, LinkedIn, YouTube and website
www.plus.com.my
 as well as via the PLUS App, which will help in one’s journey planning.

— end of community message —

Hopefully all of us drive safe, stay alert by listening to good music and enjoy that good meal whether it’s breakfast, lunch or dinner happily. Cheers.

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Header Image by
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18% discount has started. PLUS expressways. Have you enjoyed it yet?

I am still in Sandakan, Sabah for my Chinese New Year holidays. Thus, I am unable to enjoy the 18% discount on PLUS expressways until coming Monday (3rd February 2020). I hope everyone enjoys this 18% discount which will be in place until 2058. To be objective, it’s true that with the inclusion of yearly inflation, if the toll rate remains the same, we are actually paying a lower amount with each passing year. This is of course not something new.

It’s called the Time Value of Money.
Briefly, definition can be found here.
Explained very briefly, money today is MORE than the money many years later. The reason is because the money we have today has potential earning capacity; we could use it to earn more money. Imagine a mortgage of RM2,500 per month today.  We may be struggling to pay for it but if the mortgage amount remains exactly the same for the next 30 years, we will soon feel that the amount is small because every year, our salary continues to grow.

Whether or not our purchasing power increases is another matter. As long as the monthly mortgage remains the same, our burden will become lighter with each passing year.  Note though that that PLUS expressways toll rate is stretched over a much longer period, so we may not actually be paying lesser yeah, even if it’s fixed. Depending on many circumstances, the actual amount we pay may still be more but anyway, you understand my point too.

Article in carsifu.com
  Toll rates will be down by 18% beginning 1st February 2020. This is for all highways operated by PLUS expressway. This reduction is applicable for passenger vehicles, buses and taxis except for commercial vehicles. The toll rates for private cars on Penang’s Second Bridge will also be equated with toll rates new First Bridge of Penang after 18% discount starting Feb 1 2020.

These are the PLUS expressways. North-South Expressway, New Klang Valley Expressway (NKVE), Seremban – Port Dickson Highway (SPDH), North-South Expressway Central Circle (ELITE), Malaysia–Singapore Second Link (LINKEDUA), East Coast Highway Phase 2 (LPT 2), Butterworth – Kulim Expressway (BKE), Penang Bridge and Penang Second Bridge. Do refer to the full
Article in carsifu.com

I think this has been finalised. It has also been announced by all major medias. Earlier article here:
EPF members continue to own PLUS together
  As long as the number of cars continue to rise by 600,000 every year, I think PLUS will continue to enjoy higher profits even with a lower toll rate. Happy enjoying both the potential dividends for our EPF savings and the toll rate discount yeah.

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Toll is down 18% and no more toll increase for the next 37 years. Happy?

You know, just sometime back, I debated with so many people who says that the tolls will be abolished. Financially, it will not be possible unless the government forced its way through to this decision. However, if the government forces its way this way, then in the future, no private entities would dare to do any projects for the government where they get a toll concession because they know the government could suddenly take it back anytime. If you are that company, would you want to take the risk?

Remember too, the world is watching. How many foreign companies will now be worried to invest here in Malaysia? Anyway, there is now a final decision on the tolls for the PLUS highways. If we look at the decision on a longer term, I think this is already the best compromise. Remember too, PLUS Malaysia is jointly owned by EPF too which indirectly belongs to the people too; the profits. Here’s that news from Prime Minister’s Office of Malaysia (PMO)

Article in edgeprop.my
 The Prime Minister’s Office of Malaysia (PMO) said there will be no toll rate hikes on PLUS Malaysia Bhd’s highways as PLUS’ concessions will be extended for 20 years from 2038 to 2058. PMO also said the government will implement an 18% reduction in toll charges on private vehicles plying PLUS-owned highways as early as Feb 1, 2020. Khazanah Nasional Bhd and the Employees Provident Fund will remain as shareholders of PLUS.

These are the highways with the 18% reduction:  North-South Expressway, New Klang Valley Expressway, North-South Expressway Central Link (ELITE Highway), Malaysia-Singapore Second Link, phase two of the East Coast Highway, Seremban-Port Dickson Highway, Butterworth-Kulim Expressway and the Penang Bridge.  The toll rate will be reduced from 13.6 sen/km to 11.15 sen/km and this is lower than even the toll rate in 1999 which was 11.24 sen/km.  Do read the full announcement in
Article in edgeprop.my

Are you happier with this announcement? I travel via the PLUS highways every day and I think I will soon be happier every day. I will start to save 18% of what I pay for tolls when I travel via the PLUS highway, soon. Actually, that toll we pay today, say RM10 per day will now remain unchanged till 2058. Putting inflation into the picture, this RM10 will continue to become smaller as our salaries grow bigger over the years. And any profits which PLUS makes, it will still belong to the EPF. I think I will take this as the best decision under all the circumstances. Happy driving via PLUS highways.

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PM Anwar: 19 MoUs with RM170 billion of investment commitment from China

China. Malaysia. ASIA.

China is the second largest economy in the world today. The United States is top. However, China is in Asia. The United States just wants to be in Asia. It’s very far away. According to my friend, google.com it’s over 9000 miles away. In other words, as a trading partner, one is in the same region. So, if I am a Prime Minister of a country within Asia, I do think China is one of the countries I visit first, if not the first. Below would be the preliminary result from the visit and the number is indeed very encouraging.

Article in nst.com.my
   Prime Minister Datuk Seri Anwar Ibrahim said, “We have achieved the commitment of RM170 billion in investments from China. I must thank the investors for giving their cooperation and for giving us confidence.”

He added, “This is historic. It is good for Malaysia and the future.” This was announced at the Malaysia-China Business Forum, which was attended by some 1,000 business leaders from both countries, here today.

China remained Malaysia’s largest trading partner for 14 consecutive years, with total trade of US$110.6 billion (RM488 billion) in 2022.

On the investment front, China was the biggest foreign direct investor in Malaysia last year, with investments amounting to US$12.5 billion (RM55.16 billion).

According to statistics from the Foreign Affairs Ministry, total exports to China increased 9.4 per cent to RM210.62 billion (US$47.84 billion) in 2022, while total imports from China stood at RM276.50 billion (US$62.78 billion) in the same year, or an increase of 20.7 per cent compared to the previous year. Please read the full article here:
Article in nst.com.my

China. Malaysia. ASEAN.

ASEAN has 634 million population. China has 1.4 billion. Malaysia? Okay, we have just 34 million. This is why Malaysia need to ensure our two largest trading country and block would be China and ASEAN. Combined, we are over 2 billion strong yeah. There are a lot more to do together. The only issue is some countries are not the best friends with one another. Well, let’s see how China can really be a big brother to unite us all. I look forward to a day when we speak as one, just like the European Union (the EU) which is a very powerful bloc.

Happy understanding.

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Policy rates unchanged and should be for 2015.

Actually, it has been widely expected by majority of all analysts that Bank Negara Malaysia (BNM) would continue to pursue an accommodative stance for the economy. This is to push the local economy upwards amidst current slowdown. This is despite Ringgit’s weakening and volatility due to many uncertainties such as negative sentiment from GST implementation or even the fact that many are buying US$ because of the potential of the US Federal Reserve raising interest rates in the near future. Maybe not so soon though. Read here:
Buffett’s advice and Federal Reserve’s decision.

BNM expects investment activity in the export-oriented industries, the services sector and for infrastructure projects. This would of course cushion the impact of the lower oil and gas-related investment activities. The economic outlook is however seen to be improving as latest data showed exports no longer trending downwards with the recovery of some key export markets. In fact, BNM said that the global economy will improve even if at a moderate pace. It expects the domestic consumption to be a key driver of growth even after factoring the GST’s sentiment.

My personal feeling remain the same. GST is just a short blip. Looking at how many people who is talking to me about property, I think it is just time and it should be soon too. Those earning much higher salaries have also more disposable income every month because the income tax rate has been reduced up to 2%. Lower fuel prices compared to last year meant that every car driver have more to spend on a monthly basis as well. Yes, I know, everyone is saying that with the Ringgit nearing the 1998 level, how can I be so optimistic? I am optimistic because everyone is pessimistic. Please always note that when everyone is hot, we should be very cautious. My views remain. Happy thinking and reading.

written on 8 May 2015

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Of politics, IMF and global GDP forecast

Politics. A word which elicits lots of cynical smile these days regardless of which side of the fence you are on. It may even cause heated arguments. Well, politics is beyond just Malaysia. It is now weighing on the world GDP growth and the outlook is not that awesome. Reported in many medias recently was about
 International Monetary Fund (IMF)

which has lowered its global GDP forecast and has mentioned politics as one of the major issues that will impact the financial markets and the economy. IMF has started to urge economies to be more pro-active and be growth oriented.

IMF has lowered its global gross domestic product by 0.1 percent to 3.1 percent year on year for 2016 and 3.4 percent for 2017. Yes, we can see from this forecast that IMF is still expecting 2017 to be a better year than 2016. One key reason was because of BREXIT as well as a weaker US Q1 2016. The IMF cited Britain’s decision to leave the European Union (EU) or Brexit and weaker US first-quarter economic growth as reasons for lowering the global growth forecast. IMF’s chief economist Maurice Obstfeld says, “The real effects of Brexit will play out gradually over time, adding elements of economic and political uncertainty.”

Nodody knows for sure how
Brexit will impact the EU
 and Britain especially in the areas of trade and finance as it will depend on negotiations taking Do note that negotiations between Britain and the EU has yet to commence. The two major issues would include immigration and security. Morgan Stanley Research senior economist Chetan Ahya said that due to a series of upcoming political events across developed and emerging markets, this will definitely affect growth. He added, “As it is, the starting point of global growth has been weak and the global economy remains susceptible to a number of shocks. We therefore still view risks as being skewed towards the downside.” In very briefly, things do not look good.

In terms of Malaysia, Franklin Templeton’s proprietary Local Markets Resilience Index matrix ranking countries on their current and projected conditions has shown that
Malaysia has strong domestic demand
 albeit with some weakening ahead. Malaysia earns top scores for adopting a flexible exchange rate and prudent macro policies. Malaysia score well too for structural reforms that include strong institutions and transparency but further reforms may be more difficult. besides that Malaysia’s current policy remains forward-looking with the ongoing fiscal consolidation and prudent monetary policy while external vulnerability is limited, thanks to the high degree of export diversification, and is projected to improve further. In very briefly, Malaysia is probably not going to be that country that will start a financial crisis.

I do hope everyone keep reading all these as some form of guide as we continue to read too many Facebook economists these days. By the way, for those who keep saying Malaysia is about to go into a recession, please stop spending unnecessary and staying away from an asset class such as property is recommended. It will take a very long time to sell and run when needed. Happy reading.

written on 22 July 2016

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Politics no. Interest Rates and GST YES.

The ‘war’ has been intensifying day after day. The ‘other’ side is always wrong no matter what they do, if they do or even if they don’t do. Yes, politics Malaysia. Fortunately, for commercial property investors, this is not at all important and should not affect their decisions of other to buy or not to buy. The two most important factors affecting their decision would only be rising interest rates and the new Goods & Services Tax (GST). Based on a survey by property consultancy Knight Frank Malaysia, only 4% regarded politics as important factor while 30 percent said increasing interest rate as important and 26 percent said it’s due to GST. This is indeed a good news. The survey is applicable for 2015.

It seems that property investors are pretty savvy when it comes to thinking objectively. Looking at the developed countries, you would be able to see that in all political engagements, the other side must be wrong. However, as long as the mud slinging does not translate into instability in the country, everything will continue to work.

In terms of attractiveness of where to buy for commercial properties, Kuala Lumpur’s Golden Triangle is the most attractive followed by Klang Valley. Penang comes third, followed by Kota Kinabalu in Sabah and Iskandar as the fifth most attractive. Actually if it is for commercial, I think Iskandar is indeed getting very expensive because you may be competing against Singaporean investors to buy. My personal rating would however be a little different. I rate Kota Kinabalu as higher than Penang. This is for commercial properties. Personally, I have stayed in Penang for 15 years and I go KK at least once per year as my wife’s from East Malaysia. I could see how KK continues to evolve very fast because everyone in Sabah or even out of Sabah, when they think of Sabah, the first thing would be KK.

Going down one level lower, mass rapid transit (MRT) would be the most important factor for commercial property market while 74 percent said that poor yield is a main risk hindering commercial property investment this year.  I think the survey is very comprehensive and should be a good benchmark. However, as usual, surveys are able to give a big picture but not smaller details. For example, not all commercial properties should be rated the same. Some are built by developers who simply does not understand what they are building while some are part of a huge integrated plan which spans over 10 years. Have you ever seen rows of shophouses built but not occupied with weeds growing on the whole block? I have and most of the time, it’s at a bad location. Perhaps the growth has yet to reach that location. Buy objectively.

written on 14 Mar 2015

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Pool View, Sea View and My view

Thus far, I have only bought one apartment and one condo which has pool view, both of them from the secondary market. Why did I buy them? Well, that was the one offered and that was the one I liked for its price and the free pool view. Other than these two, I have no special preference for whatever view. To me, paying way too much premium for these are just a waste of money. This is especially true these days when all the condos are getting so expensive that affordability should be the key, not pool view or sea view.

My view is, I would like to save the premium for other things such as bigger fridge, bigger washing machine, better sofa, larger LED TV etc. Not a joke, the premium can sometimes be RM8,000 or higher just because one side has a sea view and the other side perhaps a hill view instead. I have to be honest, even though I am staying in a condo with pool view now, I have yet to wake up one morning, go to look at the pool and feel so wonderful with myself for buying a pool view. Not even once. Well, if you are buying because you want all your friends to say, ‘WOW! Sea View!’ I think you are better off saving up the money and buying something that makes you say WOW instead.

In terms of sea view, the premium is likely to be even higher because you need to buy higher floors to have an even better view. Sometimes, the premium, due to the floors can be as high as RM20,000 extra! My view is, it is not worth it. There are people who said, for investment purposes, buying these views would be better as a lot of people love all these views. Thus far, from my little experience in selling my properties in the secondary market, I have yet to come across a buyer who insist that he/she only will buy the unit with these views. Thus, pool view or sea view, in my view is not a necessity and you should buy other creature comforts in lieu of these views.  Again, just my view.  🙂

written on 11th Dec 2013

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Poor year for commercial, 2014 and 2015.

Let’s keep abreast with commercial properties. Latest survey from Knight Frank showed that over half of developers, fund managers and lenders polled said that commercial real estate market had poor yields last year due to the overpricing. Meanwhile another 43 percent said that they did not invest in commercial last year because of poor returns. In fact some office and retail sectors were overpricing themselves way too much. This is especially due to owners being over ambitious of the value of their property. When it comes to economy, 85 percent said 2015 would be a poorer year in terms of results versus 2014. Major reason? Yes, you guessed it right too. It’s the impending Goods and Services Tax (GST) less than one month away.

The most important statement comes from Knight Frank Malaysia managing director Sarkunan Subramaniam. He said, “It is predicted that at least for the first ten months of this year, the commercial investment market will see a softer subdued climate, as it will be grappling with rising cost of capital, selective lending and the implementation of the Goods & Services Tax.”

So what does all these tell us? Well, for one thing, I hope they are really right. If they are right, the owners of these commercial properties would have to readjust their expectations and the market would move again. If they are right, then perhaps it would really make sense to scout for potential value, especially from owners who just could not hold so many units. In fact if GST really does affect so much of the decisions, it is time to really think hard. Perhaps it’s a huge opportunity to keep lots of spare cash like my colleague who sold his luxury condo and is currently renting a place. He said his cash will come in handy when the market goes down soon. Of course, when he said this, it was still last year. Let’s hope the survey is right and he is right. Reason being I am at this moment a little busy and lazy. So, perhaps the opportunity may just fall onto my lap soon.

Actually, I do think commercial property in total numbers are oversupply. However, when we look back at the really popular locations, it is still crazy and the yield is likely to be continuously good. After all, these more popular locations are all the more matured areas anyway. The question is which one would be the next to mature and gives good yields continuously. Sungai Buloh side or Bangi side? Haha. Yes, for those who read often, I prefer Sungai Buloh part. Happy waiting or deciding.

written on 3 March 2015

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The poor should own their own home, period.

There was an article by Chang Kim Loong, the secretary general of the National House Buyers Association (HBA). For those who have read some of my articles, I may not agree with everything he has to say about the property market. However, I read an article in The Star (dated 30th May 2015) which I think is worth sharing. For those who wants to read the full article, it is here:
Helping the Poor own houses.
Otherwise, a summary as follows.

First time home buyers often face many hardships in owning their own home. They include:

Information on affordable housing. Sufficient information about all the whereabouts of these housing schemes for the poor must be made available. There should be a one stop database for all projects, regardless stats, federal or private. This allows everyone to know their options and the financing options available.

Single ‘umbrella’ to coordinate distribution and availability. Current requirements of low cost housing may no longer be applicable. Has anyone made a last count of the units needed? Are there way too many wrong types of units being built? Why can’t there be a single ‘umbrella’ data bank of such units being built, location and pricing? “Build the right product at the right pricing and the right numbers.”

Balancing the risks.  Buying and owning is riskier than renting. When buyers are unable to pay for their units, are there help available? A look at the auction properties would reveal that many low cost units are auctioned off for less than half of its original price. What happens to the families of these units? Where would they end up living? The authorities must do best to ensure all these buyers have sufficient financial management skills.

Counselling programmes. AKPK (Agensi Kaunseling dan Pengurusan Credit) was set up to help those with debt issues. How about a similar programme for home buyers? Homeownership education can be in the form of manuals to be handed out, advice and information through telephone  and even face to face counselling.  These must be provided before a buyer signs the purchase contract. Truth is, simply getting them a home may not be enough as they may lose it in the near future.

Personally, I feel that everyone should own their own home. In fact the home sizes must correspond to the size of the family. Many times, one reason for the poor remaining poor is also because their homes were never conducive for study, for living and even for a harmonious family relationship. To me, a strong family is always a basic foundation for anyone to be successful in future. There are many degree-less successful people but there are not many successful people who managed to do so without the support of their family. Please, let the poor own their own houses.

written on 30 May 2015

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Population growth in Malaysia? I contributed 2. Haha.

I believe in properties because I could see more babies. My personal way of assessing what to invest. In 2010, my wife and I were still planning for a baby. Today, glad to say that we have two. I wanted another one but my wife said ‘manufacturing plant’ closed. We shall see what happens in the next two years. According to a
Department of Statistics (Malaysia),
 the total population Malaysia for 2016 is estimated at 31.7 million. Sigh, still very small. Percentage wise, largest would be Ethnic Bumiputra at 68.6 percent or 19.3 million, followed by Chinese at 23.4 percent or 6.5 million. (Includes two from me) and then Indians at 7 percent or 1.98 million. Other races is at 1 percent or 284,000.

Of course, the 31.7 million includes a total of 10.3% foreigners. I know, most of these would be those working in the general industries or even plantations and constructions but the truth is, the number of expats are also growing. One real example? Within my current company itself, there are at least 10 foreigners based in KL and my feeling is that this number would continue to increase. There’s talent shortage which continues to be filled by all these new foreign talents. Perhaps I am in the minority but I do welcome population growth, especially for the talents we do not have. It’s Malaysia versus the other emerging markets. We either be
more competitive

and more  international companies are located here or we lost other emerging markets. I do not however support ever more foreign workers if it is only to fill up the jobs don’t want to do.

Back in 2010, foreigners made up of just 8.2 percent of total population. Actually, until today many sectors are still appealing to the government to allow even more foreign labour. Thus, this percentage can only be growing and not reducing. Among the states, Selangor recorded the highest population growth this year at 19.9 percent, followed by Sabah at 12 percent  and Johor at 11.5 percent. Penang?
Well, it is growing but net migration has slowed based on an earlier report.

The implications of a growing population is that families are forming and growing. New babies lah. The
population growth
 cannot suddenly become adults, right? In other words, the need for housing increases. Perhaps what some of us could think about would be to target a specific type of property and be good in it. Whether it’s those small units (which can target most of all working adults) or high-rise units of over 1,200 sq ft (great for a family of 4) or even landed homes with 4 rooms (loved by many as it is on ‘solid ground’), time to really browse them, view them and think about buying them. I think it’s pretty certain that the population growth issuing to continue. Nope, I do not believe live is getting tougher. I believe investments would make life easier as long as we spend lesser than what we earn currently. Happy following.

written on 22 July 2016

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Population Malaysia. 32.4 million. 1.7% CAGR. High or Low?

Population growth will propel economic growth

When a country has a growing population, the demand for goods and services will rise with every passing year. With more new babies come the need for baby products. If these are supplied by domestic manufacturers, then they will need to hire more people. With more people with salaries, then there would be demand for other goods and services too such as property. The cycle continues.

If the population is decreasing every year, the demand for goods and services continue to decrease every year. Due to this, businesses would start to face a fall in revenue. With the fall in revenue, it is likely that there would be fewer jobs available. Economic growth is thus likely to be slower unless the economy is very export reliant and the country has a huge trading surplus every year.

Article in themalaysianreserve.com
  Prime Minister Datuk Seri Ismail Sabri Yaakob said the country’s population registered a Compound Annual Growth Rate (CAGR) of 1.7% over a 10-year period as compared to 2.2% a year between 2000 and 2010.

The urbanisation rate in Malaysia increased to 75.1% (24.3 million persons) in 2020 as compared to 70.9% (19.5 million persons) in 2010. Meanwhile, the population of rural areas declined to 24.9% in 2020 as compared to 29.1% in 2010.

Kuala Lumpur and Putrajaya have 100% of the population living in urban areas. Besides that, Selangor was the state with the highest composition of urban population at 95.8% (2010: 91.3%), followed by Pulau Pinang 92.5% (2010: 90.7%) and Melaka 90.9% (2010: 86.5%). Do read the full article here:
Article in themalaysianreserve.com

How many is 1.7% growth per year anyway?

Malaysia has 32.4 milion population (MyCensus 2020) and a compounded annual growth rate (CAGR) of just 1.7%. Briefly, in calculation this is 32.4 million x 1.7% = 550,800 new population every year. That’s considered okay, right? I mean, even if 5 to a home, we still need a minimum of 100,000 new homes yearly 20 years later just to cater to this new population yeah. If we think only 4 to a home, then it will be 115,000 new homes needed 20 years later.

Maybe the new population in the future does not need a home? Perhaps they need just a room? Well, if they stay single longer, perhaps just a room may be sufficient. Just need to remember if demand for rooms move up, it will still drive the demand for homes from investors who will be renting the rooms out. One will be subsidised by the other. Need to decide which side we want to be on.

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Positive catalyst in Q2 for Penang

Let’s discuss everything Penang today. I read a piece of good news for Penang property market today. RHB Research Institute Sdn Bhd’s executive director and head of research, Lim Chee Sing said that Penang property market would be supported by two new catalysts. They are the Penang second bridge opening as well as the Seri Tanjung Pinang property development by E&O Property Development Bhd. This is despite the current bearish sentiment which have cooled due to the multiple recent cooling measure announcements by the government. Second piece of good news even if some may not consider it to be would be from HwangDBS Vickers Research Sdn Bhd’s analyst Yee Mei Hui. She expects the price growth to soften to just 3% while transactions may fall within 5-10% for 2014.

A friend said that there were a few factories which may see some retrenchment soon. Another said that her factory has already experienced VSS few months ago and another round may be coming. Amidst all these, my brother told me that his company’s share option is becoming very profitable due to the ever increasing share price in the US. Another high tech factory whom I love very much had also just announced that they may be buying another company of a similar size. What does all these tell you? Well, situation continue to be normal. Ups and downs are happening at the same time.

In terms of property transactions, a close friend told me that she bought a condo in Penang just last week. Another signing SnP tomorrow. One more shared a joke. She just got to know that banks may lend up to 75% of her net pay. She thought it was only 30%. A prominent property guru showed a picture of huge crowd in his talks about property in KL. These people and event showed that buyers are still buying when they have the means to do so or if they really need a place to stay. Share market is still uncertain and so is the Ringgit which is expected to only strengthen towards end of the year and not currently. Again, situation is still pretty normal. Ups and down.

A reminder. When everything and everyone tells you that the market is too good to be true, chances are, it may be due for a crash. However if everyone tells you everything negative, it may be time to buy. When the market continues to have generally positive predictions and things are still happening quite normally, I think good deals can still be found. It depends only on what would be your goal. My personal goal? I am only looking at secondary properties for rental at this point in time.

written on 18th Feb 2014

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81% Malaysians are confident with retirement via investing

According to Franklin Templeton Investments, it’s fund manager’s Global Investor Sentiment Survey (GISS) 2015 showed that 81 percent of Malaysian respondents were confident of achieving their financial goals. A piece of good news even if truth is, I think the survey was conducted among Malaysians who are already investing right. Top investment goals include retirement, purchasing a new home and investing in or starting a business. 71 percent said they are adopting a more conservative investment strategy in 2015. This is much higher than the 55 percent globally.

In terms of the local stock market, the result simply showed the different ways that people are investing. Some see value and some uses tools etc. Thus, the result showed 39 percent believe the market would be down and 31 percent think the market would be up while 30 percent believe the market would be flat. In total, the survey polled a total of 11,508 investors globally across Asia Pacific, the Americas, Europe and Africa including 500 Malaysians. The general conclusion from the survey forms a perception towards investing and expectations for 2015 and beyond.

My personal opinion of the stock market remains the same. Buy with objectivity. Never buy because everyone says the market is going up. Buy because you have read and understand a certain company and thus instead of buying blindly, you are at least buying with your eyes wide open. No guarantees because the market sentiment may also ‘drown’ good companies in terms of their stock prices but if the company is really good, then the business would soon be reflected in its stock price. Yes, Warren Buffet said that.

The survey however tells me something very important. When we really take steps to invest, we tend to know more than the average Malaysians and because we know more, we are generally more confident even amidst the current economic downturn of today. We are nowhere near a crisis but if China is slowing and EU is having lots of problems and US’s Federal Reserve still unsure of their interest rate policy, rest assured that the market is still directionless. As they say, you cannot change the direction of the wind BUT you can definitely change your sail. Happy investing and yes, please include property investment as one of your goal. At the very least, own your own home.

written on 16 June 2015

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Positive near future. U-shaped recovery for ASEAN + 3.

After a devastating Q1 2020 due to the COVID-19 pandemic, China’s growing again though nowhere near it’s previous GDP growth. It (China) grew by 3.2% in Q2 2020. This is after a minus 6.8% in Q1 2020.
Do read the article here.
While the growth is going to be affected by the world’s COVID-19 situation but what’s important is that the largest economy in ASIA is growing and this will be great help to ASEAN economies too including Malaysia.
China remains Malaysia’s largest trading partner. (read here for the news)

Please do look at the projected
GDP growth by AMRO below.
China is expected to grow up to 7% in 2021. Malaysia is forecasted to hit a 5.7% GDP growth next year. (not the highest projection but certainly a healthy one). In fact the star of ASEAN for 2021 would be Vietnam and Singapore, both with a GDP growth forecast of 7%. Singapore is our 2nd largest trading partner and Vietnam is 9th. So, I am very happy to see their numbers too.

Of course when the economic recovery becomes stable, then the property market of Malaysia will also be moving up again; transactions at least even if price may follow later on. Yes, as a property investor, I do wish the market to move slowly. No need to move too fast year.

I do wish that COVID-19 will always be under control. No, I do not think there is any possibility to have zero COVID-19 cases anytime soon and I also do not think any vaccines will reach the country within 2020. So, everyone should just stay safe by putting on their masks and always make sure there’s enough physical distancing. This is the only way to keep the number of infections low so that we do not overwhelm the hospitals and causing even more problems. Happy understanding.

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Compared to pension firms in US and the Europe, “EPF is up to standard”

Somehow, positive news about Malaysia are seldom shared nowadays. Everything is bad these days, it seems. Then, everyone wonders where the negative sentiment is coming from. Anyway, kopiandproperty.com will share them then. News about our Employees Provident Fund. (EPF)

Harry Smorenberg, the Founder of World Pension Summit
 was quoted in an article in mysinchew.com. He said, “I have deep respect for what they (EPF) have accomplished so far and I believe they should be recognised. Comparing them to pension firms in the US and Europe, I think they are up to the standards. They are also now the first pension firm in the world to launch the Shariah-compliant pension scheme and I congratulated them for that.” Smorenberg also shared that many Western pension firms are now moving towards becoming more environmental, social and governance-compliant and this is already covered by Shariah firms by nature.

Of course, he also stated his shock that 44 per cent of the Malaysian labour force, predominantly the lower income earners, were not included in the pension scheme. He said, “The chance of them going into poverty is also a social burden in the future. It has to be paid anyhow because people need financial support to live their lives after they have retired. So, it is better to start organising it now and make them join the pension structure rather than wait till the bill comes, so to speak. And among the first challenge to improve social security management is to also include those lower income groups.”

I personally do not think there are the many countries which are able to have a pension programme for majority of the population. In brief, it’s not sustainable. The reason is because the
ageing population

may mean that fewer people would be supporting far greater number of the population. However, there has to be more government intervention especially when much of the population does not plan for their retirement. In this case, statutory bodies like EPF may have to play a very active role. In terms of preparing for the days after retirement however, the responsibility should also be shouldered by the individual too. I know someone would like to point out that some European nations are able to do it. Haha. Noted. Happy preparing.

written on 13 Aug 2016

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A little positives, at 28th May 2015

Negative news, everyone shares. Positive news, everyone reads and forgets about them. Furthermore, every sharing is always only along political lines which is a sad case for Malaysia. It’s okay. Let me do my tiny little bit for Malaysia. Indirectly giving some positive sentiment to the economy. Who knows, may help the property market a bit too. For reading pleasure.

More flights, more connections – British Airways is flying into KLIA again after an absence of 14 years. It is a non-stop service and it is flying DAILY!

Economy competitiveness – Malaysia is ranked 14th in the World Competitiveness Index by IMD (Switzerland). Improvements in economic performance indicator, supported by the clear improvements in domestic economy, employment, prices, and international investment.

MAS CEO has started his work – The first CEO who has been given full support to restructure MAS. Even unions could not stop him this time. Terms given were very humane and better than even some MNCs which closed shop in Malaysia. Seriously, give him full freedom or just close MAS.

Growth expected to continue in 2015 – Moody’s does not believe 1MDB would bring down the economy. Predicted ‘soft landing’ for Malaysia from 6 percent in 2014 to 4.8 percent in 2015. GDP for Q1 was 5.6 percent which exceeded expectations.

End of report.

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