As the country’s real economy continues to take hits from the global financial bear, the question of how Malaysian jobs will roll with the punches is beginning to creep into the forefront after showing signs of weakness towards the end of 2008.
The worst hit will be the manufacturing sector, which has shed more than 10,000 jobs since the beginning of the second half of 2008. The export-driven economy has reported slowing orders in all sectors, especially in electrical and electronics (E&E).
One particularly drastic measure taken since the start of the financial crisis is the closure of Western Digital’s (WD) media substrate plant in Sarawak. If it goes according to plan, some 1,500 workers will find themselves jobless by March.
Citing weaker demand and a more competitive market, the hard-disk manufacturer said earnings were being mauled by the economic tailspin and it needed to restructure to survive. The closure of the plant is the largest job cut in Malaysia that can be directly attributed to the global financial pandemic.
Although the loss of the 1,500 WD jobs pales in comparison to the 533,000 jobs lost in the US for November alone, the lost jobs are worrying because captains of industry are unequivocal that things will get worse in 2009 before they get better.
Case in point is Human Resource Minister Datuk Dr S Subramaniam’s statement earlier this month that at least 4,749 workers would be retrenched in the first quarter of 2009, with the majority coming from the electronics sector.
To put things in context, the manufacturing sector has already retrenched 13,677 workers by the end of the third quarter (3Q) this year with the majority of jobs (10,182) being cut in 3Q, according to Bank Negara Malaysia.
Retrenchment in 3Q08 alone, which stood at 11,561 workers, was up more than three times the number of workers retrenched in 2Q08 (2,821 workers).
What’s worse is that macro trends aren’t promising a quick rebound either — Malaysia’s industrial production index is continuing its decline and the global purchasing manufacturing sentiment is experiencing its steepest drop. The market-leading US Purchasing Managers Index contracted at its fastest pace in 26 years in November.
Data from Japan, the world’s second largest economy, is also indicating a bearish future shrouded in uncertainty. The latest sentiment index for manufacturers, compiled by Japan’s Cabinet Office, was -44.5 in 4Q08 compared to -10 in the previous quarter. This was the fastest drop in its manufacturer’s confidence ever recorded.
With the economy of two of Malaysia’s biggest trading partners in crisis, the prospects of a quick recovery in Malaysia are bleak at best.
Employment likely to be further hit in 2009 as manufacturing slumps Federation of Malaysian Manufacturers president Datuk Mustafa Mansur told The Edge Financial Daily that the country’s manufacturing sector was not expected to recover until at least 3Q of next year.
In that respect, the forecast of some 4,700 workers being retrenched in 1Q of next year by the human resources minister was a low ball-park estimate, he said.
“I believe that the full impact of the crisis will be felt by the middle of next year,” Mustafa said. “In the first quarter, unemployment would definitely be higher.”
Some of the plants, Mustafa said, employed about 2,000 to 3,000 workers each, so a significant downturn would send retrenchment rates up if their orders remained in the basement.
However, he noted that uncertainty was still the keyword as no one foresaw the pandemic effect of the US credit crisis. As suddenly as the crisis gripped the world, he said, it could also as suddenly end.
“Who would have expected at the start of 2008 that the US economy would tumble down the way it did?” he said. “Manufacturers who supply directly to the US have been hit, as well as those who supply components and parts to manufacturers in other markets such as Japan, Korea, Taiwan and China.”
Another indicator that retrenchment could rise next year is the fact that layoffs had yet to be fully explored as a viable option for companies, said the Malaysian Trades Union Congress (MTUC) secretary-general G Rajasekaran.
Not only was retrenchment expensive for companies, but employers are also reluctant to let go of workers whom they have trained and invested in.
“The companies are uncertain. They don’t want to let their workers go because it is uncertain how much longer the global crisis situation will continue,” Rajasekaran said. “They need them available for when the economy rebounds because things will move very fast then.”
Instead, he added, companies are still trying to institute cost-saving measures such as cutting down on shifts and putting a stop to overtime. This is not to say that employees have not felt the sting of the crisis even if they had so far avoided retrenchment, he added.
“Many of the workers have grown dependent on the extra income from overtime,” he said. “The average is usually about 60-70 hours of overtime a month, which is about 30% of their take-home income. That’s now gone completely.”
Contract workers have also been forced to bear the brunt of the impact as they are the first to go when there is insufficient work for everyone.
Rajasekaran warned that because the dismissal of contract workers was not technically considered “retrenchment”, the number of workers who were out of work could not be accurately estimated from the official numbers.
He said he suspected that the number of workers laid off were higher than the officially reported numbers. Nonetheless, he agreed with Mustafa that the global economic situation would have to improve before manufacturing, and by extension jobs in manufacturing, recovered.
The silver lining was that the current crisis also provided Malaysian manufacturers with the opportunity to restructure and become less dependent on exports for their fortunes, Mustafa said.
“I am a strong believer in import substitution whereby local manufacturers produce homegrown products for the domestic market,” he said. “I hope that with this setback in the economy, enterprises will become more innovative and look to diversifying products in the local economy.”
The government also needed to emphasise the diversity of Malaysia’s export markets so that a similar crisis in future would not affect Malaysia as severely. Malaysia, he said, needed to be more competitive in that respect.
This means reducing the tariffs of utilities, better product promotion and placements, and further stimulus spending.
Protection of local workers a priority With about 2.1 million foreign workers in Malaysia — about 760,000 of them (36%) employed in the manufacturing sector — local employees are understandably concerned that employers would prefer to retain foreign workers as they tend to work for lower wages.
However, Shamsuddin Bardan, the executive director of the Malaysian Employers Federation, asserted that foreign workers would be the first to go should retrenchment become necessary.
“Our Malaysian workers need not worry very much because, by law, we as employers are required to end the employment of foreign workers first before local employees,” he said.
“We still have to treat them (foreign workers) humanely. We cannot just terminate them without remitting some compensation. We know when they come to Malaysia, they have to spend money to travel and to obtain visas.”
Rather than send them back, he added, they should be allowed to be re-deployed in other sectors where Malaysians were not keen to work in, such as plantations, agriculture and construction. Presently, Malaysian laws governing foreign workers do not allow their re-deployment into other work sectors.
Ultimately, the cost of hiring a foreign worker — by providing housing and other facilities — meant that the cost was equivalent to hiring local Malaysians.
As for the MTUC, Rajasekaran said the union was lobbying for a freeze on the import of foreign workers although many employers had sought and received permits to bring foreign workers in prior to the crisis.
The freeze, he added, would help protect both local and foreign workers. “Many employers, during the good times, sought permits for foreign workers and got approval. So what some of these guys are doing is going ahead to bring them in, but they don’t see the trend.
“They bring the foreign workers in without considering what would happen to them six months down the road when the production demand is no longer there. They’re not thinking about that”.
Rajasekaran said as a labour union, the MTUC had a mandate to protect the rights and welfare of workers everywhere, although local workers had a priority over foreign labour.
By The Edge
Sunday, January 4, 2009
Sunday, December 21, 2008
Fettes Residences
Let the sea, that stretches across the horizon, stretch your imagination. Recollect your thoughts as you gaze at the lush greenery of Tanjung Tokong. Spark inspiration while being dazzled by the night lights of Gurney Drive and the Esplanade. Find Serenity within the embrace of the 24,000 sq. ft. landscaped area accentuated with soothing water features. With four wonderous views to enjoy, there is only one place to enjoy them all - Fettes Residences, luxury residences by the shores of Penang Island. A modern facade accented with oriental influences. A unique architecture inspired by the rich history of Penang island. while echoing the affluence of residents. Offering two living layouts to suit your statue, made spacious so it has the flexibility to change according to your tastes.
35-stoery, 195 high-end units
Suites built-up from 2,000 sq. ft.
Penthouse with lanai, built-up from 4,000 sq. ft.
Equipped with Smart Home system - security alarm system, home automation system, smart card access and intercom system
Suites built-up from 2,000 sq. ft.
Penthouse with lanai, built-up from 4,000 sq. ft.
Equipped with Smart Home system - security alarm system, home automation system, smart card access and intercom system
Price range from RM818K onwards
Size 1990sqf, 2002sqf and 2470sqf
Penang to order two hillslope projects stopped.
PENANG: The state government will issue a stopwork order on two development projects in Tanjung Bungah as they involved the safety of people living near the hillslopes, said Chief Minister Lim Guan Eng.
He said the order was being made following a discussion with several residents’ associations in the vicinity of the area who were worried about their safety.
Lim, however, declined to expose the two projects concerned to give an opportunity to the developers to hold discussions with the residents and the state government to resolve the issue.
“The order was being issued as there were several matters concerning safety on the hillslopes which should be tackled by the developers.
“The meeting between the three parties concerned will be held next week,” he told reporters at a media conference here Sunday.
Lim hoped a decision that took into consideration the interests of all parties could be achieved at the meeting which would enable sustainable development to go on in the state.
He said the stopwork order was also to demonstrate the state government’s concern for the safety of the people particularly those living near hillslopes. -- Bernama
He said the order was being made following a discussion with several residents’ associations in the vicinity of the area who were worried about their safety.
Lim, however, declined to expose the two projects concerned to give an opportunity to the developers to hold discussions with the residents and the state government to resolve the issue.
“The order was being issued as there were several matters concerning safety on the hillslopes which should be tackled by the developers.
“The meeting between the three parties concerned will be held next week,” he told reporters at a media conference here Sunday.
Lim hoped a decision that took into consideration the interests of all parties could be achieved at the meeting which would enable sustainable development to go on in the state.
He said the stopwork order was also to demonstrate the state government’s concern for the safety of the people particularly those living near hillslopes. -- Bernama
Monday, December 15, 2008
Gurney Paragon Mall delayed
Hunza will review the situation in March
GEORGE TOWN: Hunza Properties Bhd has delayed the construction of the RM400mil Gurney Paragon shopping mall on Penang island, said group executive chairman Datuk Khor Teng Tong.
Construction work on the mall was originally scheduled to begin in September, Khor said.
“But we decided to hold back because the cost of building materials is still high,” he told reporters after the group AGM yesterday.
“Although the price of steel has dropped, the other aggregates such as sand and cement are still costly.
“We will review the situation in March before setting a fresh target (for the) completion date.”
He added that “the present cost of building the shopping mall, taking into consideration also the cost of land, is about RM400mil.”
The Gurney Paragon shopping mall, with a gross built-up area of over one million sq ft with 700,000 sq ft of lettable area, was originally scheduled for completion in 2010.
But the construction of two condominium blocks in the Gurney Paragon project, which had a a gross development value of RM400mil, would continue and should be completed in 2010, as planned, Khor said.
“We started work last July and (work) has been going on non-stop since. Some 50% of the 220 units have been sold,” he added.
On the soft property market environment ahead, Khor said the group would still look for land for new projects in prime locations on the island and in the Klang Valley.
“We are also planning new residential projects in Tanjung Bungah on the island, Bertam on the mainland, and in Segambut (in Kuala Lumpur),” he said.
The group still has about 755 acres of undeveloped land in Tanjung Bungah (nine acres), Bertam (400 acres), Juru (40 acres), Sungai Petani (300 acres) and Segambut (six acres).
On its 36-storey “super-condominium” Infinity project in Tanjung Bungah, Khor said the group had recently completed the 26th storey. “It is scheduled for completion next year. About 60% of the project has been sold.”
GEORGE TOWN: Hunza Properties Bhd has delayed the construction of the RM400mil Gurney Paragon shopping mall on Penang island, said group executive chairman Datuk Khor Teng Tong.
Construction work on the mall was originally scheduled to begin in September, Khor said.
“But we decided to hold back because the cost of building materials is still high,” he told reporters after the group AGM yesterday.
“Although the price of steel has dropped, the other aggregates such as sand and cement are still costly.
“We will review the situation in March before setting a fresh target (for the) completion date.”
He added that “the present cost of building the shopping mall, taking into consideration also the cost of land, is about RM400mil.”
The Gurney Paragon shopping mall, with a gross built-up area of over one million sq ft with 700,000 sq ft of lettable area, was originally scheduled for completion in 2010.
But the construction of two condominium blocks in the Gurney Paragon project, which had a a gross development value of RM400mil, would continue and should be completed in 2010, as planned, Khor said.
“We started work last July and (work) has been going on non-stop since. Some 50% of the 220 units have been sold,” he added.
On the soft property market environment ahead, Khor said the group would still look for land for new projects in prime locations on the island and in the Klang Valley.
“We are also planning new residential projects in Tanjung Bungah on the island, Bertam on the mainland, and in Segambut (in Kuala Lumpur),” he said.
The group still has about 755 acres of undeveloped land in Tanjung Bungah (nine acres), Bertam (400 acres), Juru (40 acres), Sungai Petani (300 acres) and Segambut (six acres).
On its 36-storey “super-condominium” Infinity project in Tanjung Bungah, Khor said the group had recently completed the 26th storey. “It is scheduled for completion next year. About 60% of the project has been sold.”
By TheStar
Penang to provide free Internet access in 2 years.
KUALA LUMPUR: Penang will go ahead with its WiFi project despite health concerns and expects the entire state to have free Internet access within two years, Chief Minister Lim Guan Eng said.
He said two companies namely REDtone International Bhd and Packet One Networks (Malaysia) Sdn Bhd (P1), a subsidiary of Green Packet Bhd, had agreed to invest in Penang to enable all the public and community areas to have Internet access.
According to him, REDtone and P1 had pledged RM10 million and RM20 million respectively, over the next two years, adding that the state government was looking for more partners to invest in its the WiFi project with its free and fair competition approach.
“We have two more companies expressing interest. I think we will roll it all out next year,” Lim told reporters at parliament lobby yesterday.
Lim said any company that was interested in the project should have strong financial backing and be registered with the Malaysian Communications and Multimedia Commission (MCMC), as the state government would not be bearing any cost in the WiFi project.
“We will not be under any legal obligation. We will not give any monopoly to any company,” he added.
He said while Penang would be the first free WiFi state in the country, it would also offer WiMAX at an affordable rate.
On the health concerns of WiFi radiation level, Lim said following consultation with the relevant bodies including the Malaysian Nuclear Agency, the state government understood that the radiation level was extremely minimal.
He pointed out that the World Health Organisation (WHO) noted that the amount of non-ionising radiation absorbed by a person from a WiFi station was less than a fifth from what was absorbed from FM radio and television stations.
He added that certain parties that voiced their concern on the danger of WiFi radiation exposure had not proven their case to the state government and as such Penang was committed to proceeding with the WiFi project.
“I’m sure if WiFi is dangerous, no one will want come to parliament to work. MPs will be the first to be frightened as parliament is fully WiFi,” he quipped.
By TheEdge
He said two companies namely REDtone International Bhd and Packet One Networks (Malaysia) Sdn Bhd (P1), a subsidiary of Green Packet Bhd, had agreed to invest in Penang to enable all the public and community areas to have Internet access.
According to him, REDtone and P1 had pledged RM10 million and RM20 million respectively, over the next two years, adding that the state government was looking for more partners to invest in its the WiFi project with its free and fair competition approach.
“We have two more companies expressing interest. I think we will roll it all out next year,” Lim told reporters at parliament lobby yesterday.
Lim said any company that was interested in the project should have strong financial backing and be registered with the Malaysian Communications and Multimedia Commission (MCMC), as the state government would not be bearing any cost in the WiFi project.
“We will not be under any legal obligation. We will not give any monopoly to any company,” he added.
He said while Penang would be the first free WiFi state in the country, it would also offer WiMAX at an affordable rate.
On the health concerns of WiFi radiation level, Lim said following consultation with the relevant bodies including the Malaysian Nuclear Agency, the state government understood that the radiation level was extremely minimal.
He pointed out that the World Health Organisation (WHO) noted that the amount of non-ionising radiation absorbed by a person from a WiFi station was less than a fifth from what was absorbed from FM radio and television stations.
He added that certain parties that voiced their concern on the danger of WiFi radiation exposure had not proven their case to the state government and as such Penang was committed to proceeding with the WiFi project.
“I’m sure if WiFi is dangerous, no one will want come to parliament to work. MPs will be the first to be frightened as parliament is fully WiFi,” he quipped.
By TheEdge
Sunday, November 23, 2008
Georgetown and Malacca receive World Heritage Site Award
George Town and Malacca receive World Heritage Site Award
KUALA LUMPUR: Thousands of Malaysians and foreign tourists witnessed the official awarding of the Unesco World Heritage Site to George Town and Malacca at a colourful ceremony at Dataran Merdeka last night.
The award arrived on an elephant and was passed to Unesco’s regional science bureau for Asia and the Pacific director Hubert J. Gijzen who then gave it to Education Minister Datuk Seri Hishammud-din Tun Hussein who is Malaysia’s Unesco national committee president.
The Yang di-Pertuan Agong, Tuanku Mizan Zainal Abidin, then received the award from Hishammuddin.
Penang Governor Tun Dr Abd Rahman Abbas, Malacca Governor Tun Mohd Khalil Yaakob, Prime Minister Datuk Seri Abdullah Ahmad Badawi, Penang Chief Minister Lim Guan Eng, Malacca Chief Minister Datuk Mohd Ali Rustam and Unity, Culture, Arts and Heritage Minister Datuk Seri Mohd Shafie Apdal witnessed the ceremony.
“The heritage status put us on the world tourism map, said Abdullah.
“These towns have a heavy responsibility to maintain the status. They have to preserve buildings, monuments and the environment,” he added.
Cultural troupes from Malacca and Penang put up musical plays that illustrated the founding of the towns.
There were also boria, ghazal and chingay performances from Penang while Malacca’s famous dondang sayang and Portuguese dancers performed for the crowd.
By The Star
KUALA LUMPUR: Thousands of Malaysians and foreign tourists witnessed the official awarding of the Unesco World Heritage Site to George Town and Malacca at a colourful ceremony at Dataran Merdeka last night.
The award arrived on an elephant and was passed to Unesco’s regional science bureau for Asia and the Pacific director Hubert J. Gijzen who then gave it to Education Minister Datuk Seri Hishammud-din Tun Hussein who is Malaysia’s Unesco national committee president.
The Yang di-Pertuan Agong, Tuanku Mizan Zainal Abidin, then received the award from Hishammuddin.
Penang Governor Tun Dr Abd Rahman Abbas, Malacca Governor Tun Mohd Khalil Yaakob, Prime Minister Datuk Seri Abdullah Ahmad Badawi, Penang Chief Minister Lim Guan Eng, Malacca Chief Minister Datuk Mohd Ali Rustam and Unity, Culture, Arts and Heritage Minister Datuk Seri Mohd Shafie Apdal witnessed the ceremony.
“The heritage status put us on the world tourism map, said Abdullah.
“These towns have a heavy responsibility to maintain the status. They have to preserve buildings, monuments and the environment,” he added.
Cultural troupes from Malacca and Penang put up musical plays that illustrated the founding of the towns.
There were also boria, ghazal and chingay performances from Penang while Malacca’s famous dondang sayang and Portuguese dancers performed for the crowd.
By The Star
Tuesday, November 18, 2008
MM2H members may be allowed to work.
PETALING JAYA: The government may further relax rules for the Malaysia My Second Home (MM2H) programme to allow foreigners to work in certain sectors.
Industry sources said the move could help attract more foreigners, especially those with certain skills, to buy homes in Malaysia and also enable local companies to tap their work experience.
Currently, those who come here under MM2H are not allowed to work.
It is not clear yet which sectors could be liberalised for MM2H participants but the services industry is touted as a strong possibility.
By allowing MM2H participants to work, the government will give a much needed boost to the country’s property and retail sectors, both already feeling the pinch of the current global credit crisis.
According to a source familiar with the MM2H programme, deliberations are ongoing at the sub-committee level of the National Economic Action Committee in the Prime Minister’s Department to make the MM2H more attractive.
Another source said the government is also studying a property industry’s request to relocate the MM2H secretariat, now parked under the ministry of tourism, to the PM’s Department to give it more clout. “As it is, MM2H does not seem like a priority project of the tourism ministry. I see it more as its stepchild,” said the source.
The government has been reviewing the MM2H regulations from time to time but the impact of the current global credit crunch demands that efforts be stepped up, industry sources said. By making Malaysia their second home, high net worth foreigners and their next-of-kin and friends,would be persuaded to invest in Malaysia.
MM2H has evolved from the Silver Hair Programme which the government introduced in 1996 to convince foreign retirees above 50 years of age into making Malaysia their second home. MM2H participants are issued with multiple-entry social visit passes for 10 years. They are no longer required to have a local sponsor.
Promoting MM2H aggressively is in line with objectives of Malaysia Property Inc (MPI), a joint public and private sector initiative formed early this year to brand and promote Malaysia as a property destination haven.
MPI has a RM25 million grant from the Economic Planning Unit and it sees the participation of the International Real Estate Federation (Fiabci) Malaysian Chapter and the Real Estate and Developers Association Malaysia (Rehda). It is understood that MPI will kick off its maiden international property roadshow in Tokyo next month before moving on to Britain and the Middle East.
One complaint about the MM2H is that it lacked co-ordinated promotional efforts by the various government agencies while guidelines are also interpreted differently.
Fiabci Malaysia president Datuk Richard Fong told The Edge Financial Daily the programme needs more exposure and fine-tuning, adding that he has also received feedback that “different officers sometimes offer different interpretations of the guidelines”. The success of the programme rested on both its publicity as well as implementation, added Fong.
Under MM2H, foreigners buying residential properties worth RM250,000 in Peninsular Malaysia and RM300,000 in East Malaysia are exempted from having to get approval from the Foreign Investment Committee (FIC).
One sticky point however is that foreigners married to Malaysians are not eligible for MM2H incentives like the 10-year social visit pass.
By The Edge
Industry sources said the move could help attract more foreigners, especially those with certain skills, to buy homes in Malaysia and also enable local companies to tap their work experience.
Currently, those who come here under MM2H are not allowed to work.
It is not clear yet which sectors could be liberalised for MM2H participants but the services industry is touted as a strong possibility.
By allowing MM2H participants to work, the government will give a much needed boost to the country’s property and retail sectors, both already feeling the pinch of the current global credit crisis.
According to a source familiar with the MM2H programme, deliberations are ongoing at the sub-committee level of the National Economic Action Committee in the Prime Minister’s Department to make the MM2H more attractive.
Another source said the government is also studying a property industry’s request to relocate the MM2H secretariat, now parked under the ministry of tourism, to the PM’s Department to give it more clout. “As it is, MM2H does not seem like a priority project of the tourism ministry. I see it more as its stepchild,” said the source.
The government has been reviewing the MM2H regulations from time to time but the impact of the current global credit crunch demands that efforts be stepped up, industry sources said. By making Malaysia their second home, high net worth foreigners and their next-of-kin and friends,would be persuaded to invest in Malaysia.
MM2H has evolved from the Silver Hair Programme which the government introduced in 1996 to convince foreign retirees above 50 years of age into making Malaysia their second home. MM2H participants are issued with multiple-entry social visit passes for 10 years. They are no longer required to have a local sponsor.
Promoting MM2H aggressively is in line with objectives of Malaysia Property Inc (MPI), a joint public and private sector initiative formed early this year to brand and promote Malaysia as a property destination haven.
MPI has a RM25 million grant from the Economic Planning Unit and it sees the participation of the International Real Estate Federation (Fiabci) Malaysian Chapter and the Real Estate and Developers Association Malaysia (Rehda). It is understood that MPI will kick off its maiden international property roadshow in Tokyo next month before moving on to Britain and the Middle East.
One complaint about the MM2H is that it lacked co-ordinated promotional efforts by the various government agencies while guidelines are also interpreted differently.
Fiabci Malaysia president Datuk Richard Fong told The Edge Financial Daily the programme needs more exposure and fine-tuning, adding that he has also received feedback that “different officers sometimes offer different interpretations of the guidelines”. The success of the programme rested on both its publicity as well as implementation, added Fong.
Under MM2H, foreigners buying residential properties worth RM250,000 in Peninsular Malaysia and RM300,000 in East Malaysia are exempted from having to get approval from the Foreign Investment Committee (FIC).
One sticky point however is that foreigners married to Malaysians are not eligible for MM2H incentives like the 10-year social visit pass.
By The Edge
Wednesday, November 5, 2008
Chinese firm ready to start work on Penang Bridge.
GEORGE TOWN: Despite talk about the second bridge project running aground, with UEM Builders Berhad yet to ink the deal, China Harbour Engineering Company (CHEC) is taking possession of the site this Saturday to proceed with its part of the deal.
Jambatan Kedua Sdn Bhd (JKSB) managing director Tan Sri Zaini Omar said the project will begin on schedule and is on track to be completed by end of 2011, as projected.
Zaini told The Edge Financial Daily the project will continue regardless of which company was awarded the superstructure portion. That portion is currently offered to UEM at RM1.3 billion, while CHEC’s portion is worth RM2.2 billion.
He said there was “still time” before there was any cause to worry.
“We are giving UEM all the time they require to restudy and renegotiate with us, as long as in five months, work on the superstructure commences.
“CHEC has been given the letter of award so the construction of the substructure and mainspan will proceed and they will officially take over the site from this Saturday.
CHEC has begun dredging and soil testing work.
“The works will be carried out in four segments, so that in five months time, the superstructure portion can commence.
“If we were to wait for the entire substructure and mainspan to be completed before commencing the superstructure works, the bridge will not be completed on time,” he said.
UEM has also been asked to hand over the design of the land portion of the project, estimated to be worth RM800 million.
The land portion is to be offered via restricted tender.
“UEM has carried out the design for the land portion of the project, so we have asked for these to be passed on, so we do not have to waste time and money for another design,” Zaini said, adding that work on the land portion would also start in the next six or seven months.
JKSB is the special vehicle unit set up by the government to handle the Penang Second Crossing project after it was launched a two of years ago.
It has also been appointed as the concessionaire for the Penang Second Crossing, with the Letter of Intent (LOI) given to UEM being withdrawn by the government recently, drawing the ire of UEM.
UEM is also said to be demanding RM1.5 billion instead of the RM1.3 million it has been offered.
While UEM has stated that the cost of the bridge could go up to RM5 billion, the government has capped the project at RM4.3 billion but with a variation of price (VOP) option in the event of higher costs of materials.
By The Edge.
Jambatan Kedua Sdn Bhd (JKSB) managing director Tan Sri Zaini Omar said the project will begin on schedule and is on track to be completed by end of 2011, as projected.
Zaini told The Edge Financial Daily the project will continue regardless of which company was awarded the superstructure portion. That portion is currently offered to UEM at RM1.3 billion, while CHEC’s portion is worth RM2.2 billion.
He said there was “still time” before there was any cause to worry.
“We are giving UEM all the time they require to restudy and renegotiate with us, as long as in five months, work on the superstructure commences.
“CHEC has been given the letter of award so the construction of the substructure and mainspan will proceed and they will officially take over the site from this Saturday.
CHEC has begun dredging and soil testing work.
“The works will be carried out in four segments, so that in five months time, the superstructure portion can commence.
“If we were to wait for the entire substructure and mainspan to be completed before commencing the superstructure works, the bridge will not be completed on time,” he said.
UEM has also been asked to hand over the design of the land portion of the project, estimated to be worth RM800 million.
The land portion is to be offered via restricted tender.
“UEM has carried out the design for the land portion of the project, so we have asked for these to be passed on, so we do not have to waste time and money for another design,” Zaini said, adding that work on the land portion would also start in the next six or seven months.
JKSB is the special vehicle unit set up by the government to handle the Penang Second Crossing project after it was launched a two of years ago.
It has also been appointed as the concessionaire for the Penang Second Crossing, with the Letter of Intent (LOI) given to UEM being withdrawn by the government recently, drawing the ire of UEM.
UEM is also said to be demanding RM1.5 billion instead of the RM1.3 million it has been offered.
While UEM has stated that the cost of the bridge could go up to RM5 billion, the government has capped the project at RM4.3 billion but with a variation of price (VOP) option in the event of higher costs of materials.
By The Edge.
Monday, November 3, 2008
Plenitude reviews projects on soft property sector
KUALA LUMPUR: Plenitude Bhd is reviewing next year’s proposed launch of three housing projects in Kuala Lumpur and Penang, in view of the softening local property market.
Executive director Tan Seng Chye said the company was monitoring the economic conditions and market demand before proceeding with the projects.
“We hope to go as planned but we will be looking at the situation closely and study the demand first,” he said after the company AGM yesterday.
Plenitude non-independent non-executive director Zukarnine Shah Zainal Abidin (left) and Tan Seng Chye at the media briefing.
The Kuala Lumpur projects, comprising bungalows, have a gross development value (GDV) of RM147mil for Damansara Heights and RM78mil for Bukit Tunku. Bungalows in the two areas carry price tags from RM3mil.
The Penang project comprises three-storey semi-detached houses and condominiums with a GDV of RM184mil.
Tan said Plenitude expected to maintain pre-tax profit margin for the financial year ending June 30 (FY09) at a level similar to FY08’s 31%, as building material prices had come off their peaks earlier this year.
“We were not affected by the high prices earlier as our projects were near completion.
“Building material prices have eased in the last few months. We’ll be able to maintain margins, going forward, if the prices stabilise,” he said.
Although the property market had seen a slowdown since the first half of this year, Plenitude’s earnings for FY09 would be supported by its unbilled sales of RM216mil, he said.
Earlier this year, the company launched Tebrau City Residences in Johor which has a GDV of RM321mil.
The project, comprising serviced apartments, has secured a take-up rate of 60%.
Plenitude said it currently has 1,849 acres of undeveloped land, which it could use for projects in the next 10 to 15 years.
For FY08, Plenitude’s net profit rose 39% to RM78.6mil while revenue surged 46% to RM347.8mil.
By The Star.
Executive director Tan Seng Chye said the company was monitoring the economic conditions and market demand before proceeding with the projects.
“We hope to go as planned but we will be looking at the situation closely and study the demand first,” he said after the company AGM yesterday.
Plenitude non-independent non-executive director Zukarnine Shah Zainal Abidin (left) and Tan Seng Chye at the media briefing.
The Kuala Lumpur projects, comprising bungalows, have a gross development value (GDV) of RM147mil for Damansara Heights and RM78mil for Bukit Tunku. Bungalows in the two areas carry price tags from RM3mil.
The Penang project comprises three-storey semi-detached houses and condominiums with a GDV of RM184mil.
Tan said Plenitude expected to maintain pre-tax profit margin for the financial year ending June 30 (FY09) at a level similar to FY08’s 31%, as building material prices had come off their peaks earlier this year.
“We were not affected by the high prices earlier as our projects were near completion.
“Building material prices have eased in the last few months. We’ll be able to maintain margins, going forward, if the prices stabilise,” he said.
Although the property market had seen a slowdown since the first half of this year, Plenitude’s earnings for FY09 would be supported by its unbilled sales of RM216mil, he said.
Earlier this year, the company launched Tebrau City Residences in Johor which has a GDV of RM321mil.
The project, comprising serviced apartments, has secured a take-up rate of 60%.
Plenitude said it currently has 1,849 acres of undeveloped land, which it could use for projects in the next 10 to 15 years.
For FY08, Plenitude’s net profit rose 39% to RM78.6mil while revenue surged 46% to RM347.8mil.
By The Star.
Local Real Estate cheap for foreigners
Laws are lenient for them to buy and sell property
DESPITE the current global financial meltdown, the Malaysian property market still remains attractive to foreign investors, according to International Real Estate Federation (FIABCI) Malaysia honorary treasurer Yeow Thit Sang.
“The local property market is still attractive in terms of prices. Properties in Malaysia are among the cheapest in the region,” he told StarBiz.
“Our laws are also comparatively more lenient for foreigners to buy and sell property in Malaysia,” he added.
Yeow said foreigners wanting to purchase property in countries such as Indonesia, the Philippines, Thailand and Vietnam were generally put off by the countries’ respective laws.
Another plus point for foreigners who bought property in Malaysia is that they are not subjected to death taxes, Yeow said.
“Japan has a death tax of 70%. Even in England death duties are stringent. That is why all the Lords are becoming paupers!”
Yeow said FIABCI-Malaysia would be sending a representative to Japan in December to create more awareness about the local property market and to encourage more foreign direct investment (FDI) into Malaysia.
He also said the local political development was not creating uncertainty and was not deterring foreign investors from Malaysia.
“The political scene in Malaysia is a normal democratic process. It is a sign of political maturity rather than uncertainty. It is not causing chaos like some countries,” Yeow said.
On another issue, when asked if the local property market was in a slump, Yeow said: “Our property market has not hit a slump. It is more of a slowdown.”
He attributed the slowdown to rising raw material prices that was sparked by the fuel price hike in June.
“Problems occur when construction cost goes up midway through a project and it is uncertain if it is the developer, contractor or consumer that will bear the cost,” Yeow said.
He said many contractors were increasingly reluctant to take on projects without a variation clause spelt out in the contract.
“Both contractors and developers should insist on a variation clause in their contracts to safeguard their interests.
“Should construction costs go up midway through the project, they can immediately determine who bears the cost and not have projects hanging,” Yeow said.
Going forward, he said he did not foresee see a slump in the local property market.
“There can never be a slump so long as there is demand. There is a lot of migration from rural to urban areas.
“The population is growing steadily and there will always be a need to house people,” he said.
“From an investment point of view, buying property is also a good safeguard against inflation,” Yeow added.
Yeow believes a high level of unemployment in the country could cause the local property sector to tumble.
“If unemployment were to rise, people will not be able to pay their loans and that will cause a slump. When that happens, banks will also take back the property,” he said, adding that the unemployment rate in Malaysia was low now.
“We still need to bring in foreign workers,” Yeow said.
On another note, Yeow said the standard of property development in Malaysia had improved tremendously over the years and it was being benchmarked against international standards.
“Our developments are definitely on par with those of other countries. Many of our projects have won international awards such as FIABCI International Prix d’Excellence,” he said.
The International Prix d’Excellence is an annual competition that honours the world’s best property projects.
On the local front, developers are recognised for their development projects and are honoured at the annual Malaysia Property Award.
Winners of the Malaysia Property Award in their relevant categories will go on to represent Malaysia the following year at the International Prix d’Excellence.
FIABCI Malaysia will be organising its 16th Malaysia Property Award on Nov 12 at the One World Hotel in Petaling Jaya, with Malayan Banking Bhd as the official sponsor.
The categories that will be contested are: Property Man of the Year, Master Plan, Residential Development (low rise and high rise), Retail Development, Industrial Development, Specialised Project (two categories), Office Development, Hotel Development and Resort Development.
The Yang di-Pertuan Agong and Raja Permaisuri Agong will be the guests of honour at the prestigious event.
By The Star.
DESPITE the current global financial meltdown, the Malaysian property market still remains attractive to foreign investors, according to International Real Estate Federation (FIABCI) Malaysia honorary treasurer Yeow Thit Sang.
“The local property market is still attractive in terms of prices. Properties in Malaysia are among the cheapest in the region,” he told StarBiz.
“Our laws are also comparatively more lenient for foreigners to buy and sell property in Malaysia,” he added.
Yeow said foreigners wanting to purchase property in countries such as Indonesia, the Philippines, Thailand and Vietnam were generally put off by the countries’ respective laws.
Another plus point for foreigners who bought property in Malaysia is that they are not subjected to death taxes, Yeow said.
“Japan has a death tax of 70%. Even in England death duties are stringent. That is why all the Lords are becoming paupers!”
Yeow said FIABCI-Malaysia would be sending a representative to Japan in December to create more awareness about the local property market and to encourage more foreign direct investment (FDI) into Malaysia.
He also said the local political development was not creating uncertainty and was not deterring foreign investors from Malaysia.
“The political scene in Malaysia is a normal democratic process. It is a sign of political maturity rather than uncertainty. It is not causing chaos like some countries,” Yeow said.
On another issue, when asked if the local property market was in a slump, Yeow said: “Our property market has not hit a slump. It is more of a slowdown.”
He attributed the slowdown to rising raw material prices that was sparked by the fuel price hike in June.
“Problems occur when construction cost goes up midway through a project and it is uncertain if it is the developer, contractor or consumer that will bear the cost,” Yeow said.
He said many contractors were increasingly reluctant to take on projects without a variation clause spelt out in the contract.
“Both contractors and developers should insist on a variation clause in their contracts to safeguard their interests.
“Should construction costs go up midway through the project, they can immediately determine who bears the cost and not have projects hanging,” Yeow said.
Going forward, he said he did not foresee see a slump in the local property market.
“There can never be a slump so long as there is demand. There is a lot of migration from rural to urban areas.
“The population is growing steadily and there will always be a need to house people,” he said.
“From an investment point of view, buying property is also a good safeguard against inflation,” Yeow added.
Yeow believes a high level of unemployment in the country could cause the local property sector to tumble.
“If unemployment were to rise, people will not be able to pay their loans and that will cause a slump. When that happens, banks will also take back the property,” he said, adding that the unemployment rate in Malaysia was low now.
“We still need to bring in foreign workers,” Yeow said.
On another note, Yeow said the standard of property development in Malaysia had improved tremendously over the years and it was being benchmarked against international standards.
“Our developments are definitely on par with those of other countries. Many of our projects have won international awards such as FIABCI International Prix d’Excellence,” he said.
The International Prix d’Excellence is an annual competition that honours the world’s best property projects.
On the local front, developers are recognised for their development projects and are honoured at the annual Malaysia Property Award.
Winners of the Malaysia Property Award in their relevant categories will go on to represent Malaysia the following year at the International Prix d’Excellence.
FIABCI Malaysia will be organising its 16th Malaysia Property Award on Nov 12 at the One World Hotel in Petaling Jaya, with Malayan Banking Bhd as the official sponsor.
The categories that will be contested are: Property Man of the Year, Master Plan, Residential Development (low rise and high rise), Retail Development, Industrial Development, Specialised Project (two categories), Office Development, Hotel Development and Resort Development.
The Yang di-Pertuan Agong and Raja Permaisuri Agong will be the guests of honour at the prestigious event.
By The Star.
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