11th March 2014
Asian Property Investors
Should Be Welcomed, Says Aussie Minister
MELBOURNE: Foreign investment, which
could see a proposed mini-city built in Melbourne's western suburbs, should be
welcomed, not feared, Victoria's Planning Minister Matthew Guy says.
A South-East Asian developer planned
to build a residential and commercial centre in Yarraville, eight kilometres
from Melbourne's central business district, on an abandoned 24-hectare
industrial site, The Age reports.
Guy said the potential development could
transform the suburb while providing a jobs boost.
"My view is that we should
welcome the overseas investment that meets our own guidelines.
"This is about jobs, it's about
hundreds of new jobs, it's about providing higher density in areas that can
sustain it, around transport, around existing infrastructure, and so I think it
is welcome news that we can get new developments like this up and running in
Melbourne," he said.
He denied overseas buyers were
pricing locals out of the market, saying an increase in the high-rise apartment
market and the extra housing lots in growth areas had helped to stabilise house
prices.
Reserve Bank of Australia Governor,
Glenn Stevens, said wealthy Asian investors were bidding up Australian home
prices, with inner city areas feeling the greatest pressure.
Stevens has, however, warned
borrowers against taking on too much debt because they assumed house prices
would always rise.
"People need to keep in mind
that prices don't just rise, they can fall, they have fallen, and we need to be
careful we don't take on too much leverage," he is reported in the Herald
Sun newspaper as saying.
Stevens told a parliamentary hearing
in Sydney on Friday that the wave of Asian investment in Australia real estate
was akin to investment by Russian oligarchs in London properties.
A frequent flyer, Stevens said he
often noticed advertisements in Asian countries tempting investors to buy
Australian real estate.
"I travel through Singapore a
number of times a year on the way to interminable meetings in Basel. It is
quite noticeable when you pick up a Singaporean newspaper on the plane to see
advertising for Australian property, as well as property in other countries.
"So there is no doubt that
wealthy foreign investors have an interest here," Stevens said.
But most of the interest was confined
to inner city areas, and around universities in particular.
"If you are sending your
children to study in Australia, you are probably an affluent person and quite
possibly, in some cases, you have purchased an apartment in which they would
live or which you might come and stay in when you come to visit them. There are
people who are wealthy enough to do that," he said.
-- BERNAMA
12th March 2014
Bulk-buying curb won’t affect
developers
PETALING JAYA: The possible
restriction on bulk-buying of properties by investor clubs will not affect
members of the Real Estate And Housing Developers' Association Malaysia
(Rehda), said its president Datuk Seri Michael Yam.
He insisted that Rehda members do not
sell in bulk and rather sell directly to an investor if they were looking for
en bloc buyers.
"I would go to an investor, a
private equity fund, an insurance company or whatever, instead of going through
a normal financial arrangement where I borrow from the bank and pay interest.
Here is this investor maybe an institution, maybe even EPF, who will buy from
me. I don't mind giving him a discount equivalent to the bank interest that I
would have had to pay. That's a financial engineering thing.
"Property investor clubs are a
different marketing tool. Some people may want to use it, but most of our
developers don't use it," he told reporters at the sidelines of the Rehda
Property Industry Survey 2H 2013 briefing yesterday.
On whether there are developers
engaging investor clubs to sell properties in bulk, he said: “I don’t know, if
there are, they are not our members. Not every developer is a member (of
Rehda).”
Last month, Urban Wellbeing, Housing
and Local Government Minister Datuk Abdul Rahman Dahlan announced that the
government is considering ways to restrict bulk-buying of properties by
investor clubs, which has resulted in false demand and price hikes.
Measures being looked into include
restricting bulk selling to groups or individuals for example, developers who
intend to sell more than a stipulated number of units to one person or a group
must obtain prior approval from the Controller of Housing.
This condition may be prescribed as a
mandatory requirement in every advertisement and sale permit for housing
development.
"We've written to the minister.
If they want to do that, we are supportive but let's do a few things. They must
clear it (application to sell in bulk) very quickly, don't hold up the
process…For example if you don't give approval (for bulk sales) within seven
days, we consider it approved. We don't want another mechanism to hold back,
another red tape," said Yam.
He said the limit on the number of
units allowed for bulk sales could be six units per buyer, but details are
still being discussed with the ministry.
Rehda Wants Gst Be
Implemented Gradually
PETALING JAYA: The Real Estate and
Housing Developers' Association Malaysia (REHDA) has proposed that the goods
and services tax (GST) be implemented gradually as it will have an adverse
impact on the affordability of housing to the people.
Its Finance and Investment Committee
Chairman, Datuk Ng Seing Liong, said the six per cent GST, which would be
implemented from April 1, 2015, was quite high and the consumers would be
burderned by it.
"The developers' margins will
also be lower with the GST," he said at a media briefing on 'GST -- Impact
on the Housing Industry' here Monday.
Ng said REHDA has submitted its
proposals on the GST to the government and was awaiting the response.
"REHDA has requested the Finance
Ministry give serious consideration to the proposals as the implementation of
GST in its current form will cause financial hardship, adding to the costs of
development resulting in overall increase in house prices and will be
eventually passed on to the buyers," Ng said.
He said one of them was that REHDA
wanted the government to extend the zero-rated goods and services to major cost
components of property development projects like steel bars, iron, cement,
concrete and aggregate sand or consider provisions for some relief to the
suppliers to help them deal with cash flow issue.
"The suppliers may end up
passing the costs in the form of higher prices," he said.
The industry also wanted the stamp
duty on transfers of real property be maintained at the current maximum three
per cent instead of the proposed four, he said.
Ng said the imposition of GST would
add another layer of cost as there were already multiple 'taxes' imposed such
as real property gains tax, Construction Industry Development Board levy and
service tax.
Another proposal, he said, was to
allow developers adopt a fixed allocation -- either built-up, land area
(acreage) or any method (segregation between residential and commercial propery
development) -- in claiming residual input tax credits as this would help ease
the administrative burden when claiming residual input tax.
For sale purchase agreements of land
entered prior to appointed date of April 2015, payments received of invoices
issue prior to the appointed date where the supply of land is made available
after appointed date will not attract GST, he said.
-- BERNAMA
Najib Announces RM200
Million Bumiputera Business Expansion Fund
KUALA LUMPUR: Prime Minister Datuk
Seri Najib Tun Razak on Monday announced a RM200 million Bumiputera Business
Expansion Fund to help technology-based Bumiputera companies to expand their business
to international level.
For a start, RM25 million allocated
to the Bumiputera Agenda Steering Unit (Teraju) in the Prime Minister's
Department, will be managed by the Malaysian Technology Development
Corporation, he said.
"The fund will provide flexible
loans without any collateral and the repayment period is six years starting
from the second year after the loan has been disbursed.
"However, every project proposed
must have profit prospects. The proposal paper must focus on business expansion,"
said Najib, who is also the Finance Minister, after chairing the Bumiputera
Economic Council meeting at Parliament House.
The prime minister said the business
sectors eligible to receive the financing are technology-based in the
biotechnology field, green technology, oil and gas, electrical and electronics,
information and communications technology, nano technology and food technology.
Najib also announced another seven
Bumiputera companies that would receive the Facilitation Fund Grant totalling
close to RM20 million to implement various projects.
The companies are Grand Ten Holdings
Sdn Bhd, PEPS-JV (M) Sdn Bhd, imension Bid Sdn Bhd, Faiza Marketing Sdn Bhd,
Mansalin Education Sdn Bhd, Al Ameen Development Sdn Bhd and Majpadu Bricks Sdn
Bhd.
"These companies have signed an
agreement with Teraju to implement their proposed projects that are expected to
attract private investments totalling RM128.7 million and can create nearly 700
job opportunities.
"I hope with the availability of
the Facilitation Fund Grant, more Bumiputera companies will come forward with
their proposals for high-impact projects that have vast potential to stimulate
the country's economy and be beneficial to the people, particularly with regard
to creating job opportunities," he said.
The Facilitation Fund was introduced
in August 2012 with a whopping RM2 billion, comprising 15 per cent grant from
the overall project cost valued at RM5 million at the least and has
infrastructure, machinery and equipment components.
Najib said that up to February this
year, RM1.4 billion from the Facilitation Fund has been approved to Bumiputera
companies to undertake 132 projects in collaboration with Teraju, regional
economic corridors and Public Private Partnership Unit (UKAS).
He said the projects entailed RM15.12
billion in total private investments in the oil, gas and energy, property
development, construction, wholesale and retail sectors.
"Under the Facilitation Fund
programme, Teraju and the Bumiputera companies involved are expected to provide
more than 23,000 new jobs to locals.
"Every initiative announced
reflects the government's concern and its continuous effort and emphasis on the
empowerment of the Bumiputera agenda as an important national agenda.
"I'm confident the new measures
and the synergy created among the government agencies will benefit Bumiputera
entrepreneurs in propelling their business to a more progressive level,"
he added.
-- BERNAMA
13th March 2014
Decide on the best approach
to explain GST — Shahrir
THE government has to decide the best
and effective approach to explain to the public on the Goods and Services Tax
(GST) to be implemented in April next year.
Tan Sri Shahrir Abdul Samad (BN-Johor
Baharu) said this was to ensure the people, as well as traders, understand what
GST was about and its impact on their daily life.
“There should not only be information
sessions, but to ensure that the approach can make the people understand, it
has to be monitored,” he said when debating the motion of thanks on the royal
speech in the Dewan Rakyat here yesterday.
Shahrir suggested the government to
organise a separate information session, especially for traders who would
impose the tax on their goods.
“When information for the business
community is passed to consumers or community leaders, there will be
misunderstanding,” he added.
He said a survey could be carried out
to determine whether those who attended the GST briefings understood what GST
was.
The Dewan Rakyat sitting continues
today.
— Bernama
Seri Austin - Winners of
Asia Pacific Awards
In the Asia Pacific Property
2014-2015 Awards, Dynasty View Sdn Bhd (a wholly-owned subsidiary of UMLand
Bhd), has successfully being awarded in two categories of Property Single Unit
and Residential Development for their luxurious Ametrine Bungalow Development
at Seri Austin Hills of SERI AUSTIN township.
The International Property Awards are
open to residential and commercial property professionals from around the
globe. They celebrate the highest levels of achievement by companies operating
in all sectors of the property and real estate industry. The awards are given
for the quality of design, construction and presentation of individual
properties and property developments, interiors, architecture and marketing.
The awards are recognitions of achievement in a particular category or
discipline, decided by a panel of more than 50 well-respected experts judging
panels represented by well-established professional bodies around the world.
The gala dinner for the Asia Pacific Property Awards will be held in May 2014
at Shangri-la Hotel Kuala Lumpur.
Early this year, SERI AUSTIN has been
recognized as the 1st Role Model for the Smart and Healthy City and Community
Township. Two recreation parks in SERI AUSTIN have also been gazette as 1st
Smoke-free parks in township in Iskandar Malaysia. The Smart Healthy City aims
to enhance the people’s quality of life, and to achieve a sustainable economic
and technological ecosystem that would ultimately create smart, connected and
inclusive communities.
SERI AUSTIN was the 1st Township in
Southern Johor to offer free High Speed Broadband to its residents through
signing of High Speed Broadband (HSBB) Unifi services with Telekom Malaysia in
October 2010. SERI AUSTIN was also the 1st Township to launch and
implement “ Effective Microorganism” together with MBJB in November
2008, which was officiated by the then Mayor of Johor Bahru Dato Mohd
Naim Bin Nasir. EM is used wisely by many countries worldwide as an
alternative to chemical in agriculture, environmental remediation and Waste
water treatment and many more. Further, SERI AUSTIN implemented the 1st
designated bicycle lane in Johor for safety cycling in April 2012. The
bicycle lane stretches approximately 7.3 km around the Seri Austin Township and
is well designed with proper bicycle signages, integrating with the existing
roads.
During the year 2013, Seri Austin
Residence was awarded “The Most Livable, Modern Residential Enclave” at the
Malaysian Reserve Property Press Awards 2013. It is one of the most
meaningful property awards in Malaysia as it is not given out by an association
but rather awarded by the Property Press, which has been following the major
property events in the year. The award this year acknowledged the
company’s success in making Seri Austin Residences an icon in Johor Bahru.
SERI AUSTIN was also awarded SME
Sahabat Negara Award by SMI Association Malaysia at Sunway Convention Centre,
Subang Jaya. The award was bestowed on corporation which have contributed
significantly and played a prominent and proactive role in the promotion and
development of SMEs community in the country that enhance SME’s competitive
edge and operation efficiency in pursue of globalization simultaneously.
SERI AUSTIN fully embraced the
lifestyle concept of “We build, We care, We love” as we believe in “Every
Single Life is Precious”. We will continue to build innovative homes of quality
design and affordable pricing to enhance your 'Simply Better' lifestyle.
Dubai's Arabtec Signs MoU
with Egypt's Defence Ministry to Build One Million Housing Units
KUALA LUMPUR: Dubai's leading listed
construction group Arabtec Holding PJSC (Arabtec), is set to develop one
million housing units, in various locations across Egypt, with a total value
worth 280 billion Egyptian pounds (RM132.1 billion).
The recently formed subsidiary of
Arabtec Holding 'Arabtec Real Estate' will undertake the development of this
project, which will be developed in phases over a span of five years, Arabtec
said in a statement.
The statement said that it will be
Arabtec Real Estate first project of its kind, which will see the construction
of housing for the middle-income group and create over one million job
opportunities for the Egyptians.
The memorandum of understanding (MoU)
was formalised Monday between Arabtec and Egypt's Defence Ministry under the
directives of Abu Dhabi Crown Prince and Deputy Supreme Commander of the United
Arab Emirates (UAE), General Sheikh Mohamed bin Zayed Al Nahyan, and in the
presence of Egypt's Field Marshal Abdel Fattah Al Sisi.
"This historic project will be a
major boost to the Egyptian economy," Arabtec's managing director and
chief executive officer Hasan Abdullah Ismaik was quoted as saying in the
statement.
Ismaik said the project is seen as a
"historic turning point" in the pursuit of "growing the company
into one of the leading holding groups in Egyptian region."
"Egypt is held in high regards
by the leaders and citizens of the UAE. The two countries are linked together
by historic bonds of fraternity and friendship," Ismaik said.
He also believes that the Egyptian
economy is poised for a significant rebound, particularly with the current
governmental policies geared towards encouraging investment in the property
development sector.
The statement added that the construction
work is scheduled to begin in the third quarter of this year. The first batch
of units will be delivered in early 2017, while final delivery of all units
will be achieved before 2020.
Ismaik also praised the continuous
efforts of the UAE under the leadership of its President Sheikh Khalifa bin
Zayed Al Nahyan in supporting their brothers in Egypt.
-- BERNAMA
Retiring Poor Or
Comfortably - It's Your Choice
KUALA LUMPUR: So many
of today's young adults live beyond their means.
They are decked in brand names from head to toe, and live in the absurd fear of jeapordising their reputation should they fail to do so.
They feel compelled to own the latest gadgets and drive fancy cars, even if it
costs them a lifetime of loan instalments.
This is worrisome in that not only do their "live for the moment"
motto blinds them from seeing the importance of retirement planning, it also
sends them on a downward spiral where their finances are concerned. Many of them have been declared bankrupt from a very young age due to overspending.
SAVING FOR RETIREMENT NOT A PRIORITY
According to the Department of Insolvency, 23,397 of those declared bankrupt from 2007 to September 2013 were between 24-34 years old. Of the figure, 1,322 were 24 years old.
A study by Prof Dr Jariah Masud, a senior research fellow at the Gerontology Institute of Universiti Putra Malaysia, found today's younger generation focused on day-to-day spending without sparing a thought for future finances.
Retirement planning is put on the back burner as priorities are given towards career advancement, marital commitments, property ownership and similar undertakings.
"Today's generation is a 'consumer society' that is obsessed with lavish lifestyles. The way they value money is also different from the previous generations.
"Those from my generation see the value of money in savings, while today's youths see it in terms of purchasing power," she told Bernama.
The "AXA Retirement Scope 2010", a global retirement study by the AXA Group, found that of the 38 percent of Malaysian workers who planned for their retirement, many of them only started saving as they were nearing 40.
The study, which was conducted in 26 countries across Europe, U.S. and Asia, also found that 46 percent were only ready to save for their retirement as they approached 50 years old.
Failure to build financial reserves from an early age can make the realities of
retirement age harder to handle.
The situation is worse for those without a pension. Many are shocked to find how quickly they deplete their Employees Provident Fund (EPF) savings and subsequently find themselves forced to rejoin the workforce.
RELYING ON EPF
It is rather surprising how many workers falsely believe that their EPF savings
is enough for retirement.
Some believe it is even enough to cover the expenses of their entire family and thus there is no need to build their financial reserves elsewhere.
The Head of EPF's Retirement Research Section Farizan Kamaluddin said studies found that of the 13 million EPF contributors in Malaysia, only 7.36 percent have an excess of RM150,000 in savings at 55, while 70.89 percent have less than RM50,000.
"Some of them cannot help it (having little savings) because it depends on their contribution. If their salary is low, their contribution is low too," she said.
The age for withdrawal of EPF savings has remained at 55 since its establishment in 1951. This is despite the government extending the retirement age to 60 and the country's life expectancy increasing to 75.
SIMPLY NOT ENOUGH
With the rising cost of living, a longer life expectancy, low salaries and early retirement at 55, many would not be able to make their EPF savings last, said Farizan.
It was found that 50 percent of retirees deplete their EPF savings in the first
five years, thereafter having to work again.
"What causes their savings to be drained so quickly is their failure to plan their finances accordingly, and using the money as a means to fulfill their desires and not as a replacement for their income," she explained.
Therefore, there is a need to vary their sources for financial reserves.
They also need to be prudent with their withdrawal of EPF savings before retirement, even if it for settling their housing or education loans.
"If they have other forms of savings, they should see their EPF savings as
the last resort for making withdrawals," she said.
Farizan said EPF has also set a new quantum for their basic savings at RM196,800 as the minimum amount a contributor needed to have in his EPF account by age 55, effective January this year.
To prevent the fast depletion of EPF savings, EPF has also introduced a more flexible form of withdrawal upon reaching 55 years old where contributors can choose to withdraw completely, monthly, or partially.
MINIMUM WAGE
Although many government servants may feel more at ease under the pension scheme, they could also get into financial trouble if they chose to live a lavish lifestyle and don't prepare for their retirement.
The Director of the Gerontology Institute of UPM, Prof Dr Tengku Aizan Hamid said civil servants needed to be wary of the drop in income upon retirement.
"We cannot carry our present lifestyles into old age. Would you be able to alter your lifestyle when the pension you receive is considerably less than your present income?
"There have been cases where a pensioner failed to settle his credit card debts that ultimately had to be borne by the children, simply because he wanted to maintain his extravagant lifestyle," he said.
The government, in helping increase employee contribution, has implemented the minimum wage effective January this year following the increase in retirement age to 60.
The government has also set up the 1Malaysia Pension Scheme for the self-employed with no fixed income to voluntary contribute in the EPF.
It has also encouraged youths to make long-term investments via the Private Retirement Scheme.
It is easier to make money while we are young and our health is at its peak. To rely on our health at an old age can be quite a gamble, so planning wisely and early for our retirement years can help ensure we are comfortable in our old age.
-- BERNAMA
Malaysia's Ultra Wealthy
Population Expected To Surge 33 Per Cent By 2023
KUALA LUMPUR: Knight
Frank, a leading independent
global property consultancy, has forecast that Malaysia's ultra-wealthy population will increase
by 33 per cent in the next decade.
The ultra wealthy include ultra high-net worth individuals with US$30 million or more in assets excluding
their main residence, as well as centra-millionaires
and billionaires.
Knight Frank Managing Director for Malaysia Sarkunan Subramaniam said nine new individuals joined the rank
of Ultra High-Net-Worth Individuals(UHNWI) in Malaysia last year, bringing the
total to 557, while the higher
wealth bracket increased by three to hit 206.
Speaking to reporters at the launch of the Knight Frank Wealth Report 2014 here, he said these new ultra
wealthy individuals in Malaysia come from
sectors like oil and gas, manufacturing, services and information and telecommunications technology.
The report says although globally about 15 per cent of high net worth individuals plan to change residence,
Kuala Lumpur remains home to 53 per
cent of Malaysia's ultra high net worth individuals, and the situation is forecast to remain
approximately the same in 2023.
Meanwhile, Goh Cheng Ean, United Overseas Bank (Malaysia) Bhd Executive Director
and Country Head of High Networth Banking, said the Malaysian ultra wealthy are more sophisticated
and invest with a long-term view.
"In the past, investments were made within the region of their comfort zone but now they have more confidence
and exposure to invest in developed
markets.
"With continued signs of economic recovery in the US and Eurozone, we foresee increasing fund flow from
emerging markets into developed markets,"
she said.
On the Prime International Residential Index (PIRI), Kuala Lumpur has climbed two positions from last year
and is ranked 26th globally, while prices
were up 5.5 per cent in 2013 compared to only one per cent growth in 2012,
according to the report.
Goh said properties in Malaysia remain attractive for local and foreign investors
who believe in the country's long-term economic potential.
The appreciation in real estate prices in key economic centres like Kuala Lumpur and Iskandar Johor was
driven by the the implementation of the
government's Economic Transformation Programme, the rise of the middle class and rapid urbanisation,
she said.
Property valuations in Malaysia, however, are still lower than in other economic
centres like Hong Kong and Singapore, she added.
Elsewhere in Asia, Jakarta heads the PIRI, with growth of 38 per cent in 2013, with Bali at number three
with a 22 per cent gain.
Indonesia's key markets continued to outperform the rest, the report says.
-- BERNAMA
Matrade Targets RM400
Million Worth Of Projects In Myanmar
KUALA LUMPUR: The
Malaysia External Trade Development
Corp (Matrade) targets RM400 million worth of construction projects in Myanmar for Malaysian
companies.
In a statement Wednesday, Matrade said the projects include residential, commercial, industrial
parks and mixed developments such as hotels, office buildings and shopping
malls.
The projects are owned by government-related agencies and private entities
identified by Matrade, it said.
"Malaysian firms are in the best position to contribute to the development in Myanmar due to
outstanding track record in undertaking various
construction and infrastructure projects globally," said Matrade.
Last year, Matrade said, projects worth RM330 million were identified, adding Myanmar offers huge business
potential and opportunities, especially
in the infrastructure and property development sector.
"There is a surge in demand for modern residential and commercial properties due to the people's
changing lifestyles and foreign investors'
influx into the country," said Matrade.
Infrastructure development is given the highest priority by the government thus improving the social
well-being of Myanmar citizens, it added.
Nine Malaysian construction companies will be joining a Matrade
Specialised Marketing Mission to Myanmar on March 17-21, to meet project owners
and assess projects that have been identified, as well as to participate in the Myanmar
Infrastructure Summit and Exhibition in Yangon,
the commercial capital.
-- BERNAMA