Friday, July 29, 2011

Singapore Losing Competitive Edge as Currency Soars: Expert - CNBC

Singapore Losing Competitive Edge as Currency Soars: Expert - CNBC

The languishing U.S. dollar has resulted in unprecedented gains for other currencies. The Singapore dollar, for one, hit a record high against the greenback on Wednesday, as the latter scraped three-month lows versus a basket of currencies.


While this may spell cheer for investors long on the Singapore dollar [SGD=  1.2037    0.002 (+0.17%)   ], it paints a less rosy picture for the nation’s economy, say financial experts.
Wei Zheng Kit, an analyst at Citi, notes that while Singapore remains competitive on many measures, the appreciation of the Singapore dollar could erode its advantage in the near term.

"While SGD appreciation can eventually curb domestic inflation, it may exacerbate the loss of cost competitiveness in the short run, because of the lag needed for a stronger exchange rate to bring down inflation," Wei said, in a report.
Singapore's June consumer price inflation (CPI) rose to it's fastest pace in six months, to 5.2 percent, driven by rising housing and food costs.
"Since 2008, Singapore has seen inflation outpace foreign trade-weighted inflation, reversing the pattern for the past 20 years," according to the Citi report.

The Singapore dollar is among the best performing currencies in Asia this year, since the state's de-facto central bank – the Monetary Authority of Singapore (MAS) – said in April it would allow further appreciation to tame price gains. The currency has gained over 6 percent versus the U.S. dollar so far this year, and 24 percent in the last five years.
There are already signs the stronger currency has been crimping competitiveness. According to the 2011 World Competitiveness Index report compiled by Swiss business school IMD, Singapore slipped from the top spot to third, overtaken by the U.S. and Hong Kong. Citi says the effect may be most pronounced in the labor market.
"The supply shock from tightening of foreign worker inflows will likely imply wage growth could be structurally higher than the 3 percent annual average of the 2000s,” the report stated. “More importantly, wages have risen faster than Asian competitors, especially once FX appreciation is included.”

Meanwhile, as wages climb, productivity has not kept pace. The report predicts growth in Singapore's unit labor costs to “likely outstrip those of its Asian competitors in 2011, similar to the overheating period in late 2006-2008."
The spillover from a stronger Singapore dollar is also being felt in the property sector. Citi observes that while Singapore's office rents were lower than Hong Kong's, the gap is narrowing as its currency appreciates.

Losing its competitive edge may sting the most during the next economic slump, but Citi says Singapore has the ammunition to lessen some of the pain.
"The loss of cost competitiveness could prove to be a double whammy once the economy is in recession, though this could at least partially reversed via monetary easing."

© 2011 CNBC.com

Thursday, July 28, 2011

The beginning of a new era

INSIGHT: DOWN SOUTH
By SEAH CHIANG NEE
Saturday July 23, 2011


It was part of a multi-million dollar deal when Malaysia and Singapore signed an agreement to return the 79 year-old train station at Tanjong Pagar and large tract of railway land to the republic. But the impact of this has provided a breakthrough in other projects.


WHEN Singapore and Malaysia broke up in acrimony in 1965, their present prime ministers were teenagers who had just started secondary school.


Malaysia’s Prime Minister Datuk Seri Najib Tun Razak was 14, while Lee Hsien Loong, Prime Minister of Singapore was a year younger.


Both were eldest sons of political leaders in their respective countries and attended top local schools before going abroad for further studies.


Like other teenagers, they were probably more preoccupied with sports and exams than with the fiery politics of the times.


They could not possibly have known that they would grow up to work together one day to remove the historical boulder that marred relationship during the past 46 years.


In 1965, Malaysia’s population was only 9.3 million or about a third its present size, while Singa-pore (now 5.08 million) had only 1.89 million people.


That means at least one in three Singaporeans and Malaysians today were either not born yet or were too young to have any living memory of that chaotic past.


Behind the urgency is the compelling force of business and global competition.


With expanding giants like China and India and world trade becoming more complex, smaller countries are finding it harder to compete without merging interests.


Long realising this, the two prime ministers began a series of negotiations in recent years towards im-proving cooperation. Last month they succeeded where their predecessors had failed.


They signed an agreement to re-turn the 79-year-old train station at Tanjong Pagar and large tract of railway land to Singapore as part of a multi-billion dollar deal.


I will not regurgitate the details which have already been reported.


The tangible impact of their give-and-take attitude has provided a breakthrough in the following projects:


> Mass transport: A high-speed rail link between northern Singa­pore and Malaysia’s Johor Baru by 2018;


> Crossing point: Broadening the present congested causeway or possibly building a new bridge to link eastern Singapore to Johor;


> Business: A joint company (Malaysia owning 60%) to develop six plots of premier Singapore land worth S$11bil (RM27bil) as well as build an iconic project, probably a 200ha township, in Iskandar;


> Iskandar Malaysia: By 2025 with ease of transport and hopefully improved security, the huge metropolis of Iskandar – three times the size of Singapore – will be ready as a source of fun and services for our people just a hop away; and


> Closer residency: Driven by high costs at home, Singaporeans are seeking healthcare or buying residential properties in Johor.


A well-run Iskandar will likely be viewed as a tourism rival in some Asian cities that are seeking to lure high-spending Singaporeans and other visitors from the region.


As a journalist who has covered Singapore-Malaysia ties for the past 40 years, I detect a resultant sanguine mood, heralding in a new era. Even the old football rivalry is being revived.


As I watched emotions unfolding among ordinary people, especially older folk over the end of the Malayan railway era on this island, I recall some of my early writings on bilateral relations.


I had once wondered why – in the face of manufacturing challenges from China and India – our two nations are still competing to attract the same multinationals.


They are spending billions duplicating infrastructure and services rather than jointly cooperating to make us more competitive.


In 1989, Singapore proposed a Growth Triangle to merge resources among Singapore-Johor-Batam to meet China’s economic might, but received lukewarm response.


The concept was based on successful trade-investment zone in Guangdong-Shenzhen which had an abundance of cheap manpower and land, while Hong Kong provided finance and business acumen.


Why did the zone formula fail to take off when it had worked so well in South China, I wondered?


After all, the two groupings shared more or less similar conditions and objectives, which were to hitch on to each other’s strengths, while covering their weakness for the common good.


Was it mistrust or racial dissimilarity – or both? The timing may have been premature. Although called a Triangle, Singapore and Johor were the predominant parties.


Other bilateral problems remain but the successful pacts had given them confidence that there is enough goodwill to resolve them, too.


All this is a boost for those who have faith that South-East Asia’s Growth Triangle can one day work well – despite political and racial differences.


“The loss of history is sad but it has to be so,” said an elderly blogger.


“Only then, can Singapore and Malaysia finally put the merger ghost to rest.”

Horizon Hills Golf & Country Club

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Tuesday, July 26, 2011

Buying residential property in Malaysia — Aileen Han


JULY 8 — There is growing interest among Singaporeans in investing in residential properties outside the country following the fourth round of property market cooling measures announced in January.

The measures include increasing the holding period for the imposition of seller’s stamp duty to four years and lowering the loan-to-value-limit to 60 per cent on second and subsequent mortgages.

With a bullish Singapore dollar, favourable financing terms, geographical proximity, similar culture and background and, most importantly, family ties, Malaysia remains one of the top favourite property investment destinations for Singaporeans.

To help first-time investors, here are some things you should know about buying a residential property in Malaysia.

Know the type of property you can own

Malaysia allows foreigners to own an unlimited number of leasehold and freehold properties, subject to state consent. However, some are prohibited:

• Properties valued below RM500,000 (S$203,760)

• Land or properties with “Malay Reserved” status

• Agricultural land (unless above five acres and for commercial purposes)

• Properties assigned under Bumiputera quota

Market research

The Internet is a boon. So start your journey by finding out about the developer. Is the developer reputable, in strong financial standing and regulated by the government? Established developers are more likely to see through the progress of a project successfully, financial crisis or not.

If you find the price too good to be true, chances are the Internet will tell you why. Sieve through the clutter and learn from those who have gone through the pain.

Determine your budget and know yourself

While market research helps in making informed investment decisions, it is also crucial that investors know themselves.

Ask yourself the following questions:

• What is my budget and what are the financing options available to me? Malaysian banks offer as high as 90 per cent financing, so with a minimum 10 per cent outlay, you will be able to own a property quite easily. The question is: when do you start servicing your loan?

At property launches, developers often offer the Developer Interest Bearing Scheme (DIBS), which means it will bear the interest payable to the bank. So, besides the 10 per cent upfront downpayment, you would not have to pay anything until the date of completion.

But once the property is at an advanced stage of construction, DIBS is no longer offered and you will have to start servicing your loan. Some developers also absorb legal fees for the sales and purchase agreement, loan agreement and stamp duty. Combined, these can be great savings for many, so be sure to ask.

• How much do I have as buffer? The property price aside, you need to set aside some money for legal fees, documentation, monthly maintenance fees, renovation/furnishing costs, annual taxes, etc. In some cases, you may even need to start servicing your bank loan interest.

• What is the purpose of this purchase? Is it a short-term flip or part of a long-term plan that may see it becoming your home during retirement?

• Where am I right now? While risk tolerance is a key factor in an investor profile, so too are an individual’s personal circumstances.

Where an individual is at different stages of one’s life greatly influences the risk/return decisions that are made.

If you are young, chances are you will be in the accumulation cycle (building a home, starting a family, saving for an emergency fund, etc), you should focus on relatively high-risk, high-return and capital-gain oriented assets. However, if you are in your mid to late stages of your career (consolidation cycle), your priorities will change.

By knowing who you are and what you can afford, you are taking a calculated risk to arrive at a better decision.

What are the hidden costs?

Taxes are always a concern for foreign property buyers and the situation in Malaysia is no different than anywhere else.

There is a real property gains tax of five per cent imposed on capital gains of a property that is sold within five years from the date of purchase (the date of the sales and purchase agreement). Property owners are also required to pay the annual minimal quit rent (“Cukai Tanah” in Malay) and the twice-yearly assessment tax (“Cukai Pintu” in Malay) on their properties. The non-resident individual tax rate is 26 per cent and rental income is subject to the same tax rate.

Site visit

Once you have shortlisted your choices, a site visit is key to making the final decision. If the property is yet to be built, walk the streets, speak to locals and find out about the prospects of the area. If the property is in the process of being built, you are in a better position to assess the quality of the building materials, furnishings, specifications, etc.

Update yourself on developments to fully understand the upside potential of the investment. With the Economic Transformation Programme (ETP) in motion to transform Malaysia into a high-income nation by 2020, some areas may be gazetted for future developments (such as railway systems) so it is a good time to ensure the property of your choice withstands the sands of time. — Today

* Aileen Han is country manager for E&O Property (Singapore), part of Malaysia-listed real estate developer E&O Group.

UEM Land to leverage on Sunrise expertise and S’pore infrastructure

By THEAN LEE CHENG
leecheng@thestar.com.my | Jun 29, 2011
UEM Land to leverage on Sunrise expertise and S’pore infrastructure

Good linkage: The future development’s proximity to the Marina Bay and future Downtown MRT stations will ensure that it is well served and easily accessible. — AFP



PETALING JAYA: The coming together of Khazanah Nasional Bhd and Temasek Holdings to develop RM30bil worth of real estate projects in Singapore and Iskandar Malaysia will help UEM Land Holdings Bhd make a great leap forward, both financially and in terms of branding, say analysts.
The tie-up also puts into focus why UEM Land launched an RM1.4bil takeover of property developer Sunrise Bhd, which was completed early this year.

“We believe UEM Land will be able to leverage on Sunrise’s expertise in lifestyle integrated developments to take on the proposed developments. As such, Sunrise will be taking the lead on behalf of UEM Land in undertaking these development projects,” said an OSK Research report.

UEM is among the top landowners in Iskandar Malaysia, with 1,300 acres of development land in the southern economic corridor. Among the several economic corridors spearheaded by the Government, Iskandar Malaysia remains the most upbeat and vibrant. In many ways, according to analysts, the alliance of the two government investment holding companies is expected to be a win-win proposition for both sides.

As a result of the Khazanah-Temasek joint venture (JV), UEM Land, together with Mapletree Investments Pte Ltd, have been appointed to oversee the marketing and development of four parcels of land at Marina South in Singapore.

UEM Land is the property arm of Khazanah, while Mapletree Investments is one of Temasek’s two real estate portfolio companies. The other Temasek property company is CapitaLand group.

The planned mixed-use development on the 2.62ha white site at Marina South would comprise two office towers with ancillary retail and two blocks of residential towers with a combined gross floor area (GFA) of 341,000 sq m, a statement from the Mapletree website said.

Located on adjoining sites behind the Marina Bay Financial Centre in the new financial and business cluster of Downtown Marina Bay, the development will be positioned between the proposed linear park and a major public open space above the Marina Bay MRT station. Its proximity to the Marina Bay and future Downtown MRT stations will ensure that it is well served and easily accessible.

Construction works are expected to commence in June 2012 with completion estimated in mid-2016.


At the same time, UEM Land will work with CapitaLand to oversee the Ophir-Rochor project in Singapore, located between the Kampong Glam Historic District and the Beach Road Conservation Area, in a new growth area envisioned to become a 24/7 mixed-use cluster. Like the Marina South parcels, the Ophir-Rochor parcels also have excellent connectivity.

By virtue of having Khazanah as an ultimate controlling shareholder, UEM Land (as with both Mapletree and CapitaLand in relation to Temasek) will be playing a huge role in this JV.

Sunrise, with its expertise and tangible portfolio of high-rise and high-end condominium in Mont’Kiara, will also have a huge role to play.

Hong Leong Research said: “UEM Land’s business model is primarily a two-pronged strategy of developing townships and niche projects – townships for stable income, complemented by niche projects to achieve enchanced growth and market branding. The bulk of its land is in Johor.”

With Khazanah’s JV, UEM Land’s opportunities have now broadened to include Singapore, where real estate is hot.
A UEM source said the success of Iskandar Malaysia is due to its proximity with the city state and its tremendous infrastructure, both economically and physically. Besides being a service and financial hub, it has an integrated transport system and other infrastructures like no other in South-East Asia.
We are leveraging on Singapore’s tremendous connectivity. When we sell Iskandar, potential investors always ask – how many flights do we have in Iskandar Malaysia out to London? We ask them in return – how many flights do you want?

“The issue is not how many flights our domestic airport in Johor has, but how many flights does Changi Airport have? That is how close – geographically – we are to Singapore. Multiply that with the whole range of services that Singapore offers and you have the big picture. When we sell Iskandar, we are not just selling Johor; we are selling Johor and Singapore,” said the source.

http://www.starproperty.my/PropertyScene/TheStarOnlineHighlightBox/12943/0/0

GAAM: Japanese interested in Iskandar property

GAAM: Japanese interested in Iskandar property
By ZAZALI MUSA

zaza@thestar.com.my

JOHOR BARU: Global Asia Assets (M) Sdn Bhd (GAAM) sees Iskandar Malaysia as offering good prospects to Japanese looking to invest in property development projects outside their home country.

Chief executive officer Fujimura Masanori said the company planned to bring more Japanese investors to invest in the Iskandar Malaysia property market.

He said Johor Baru or Iskandar Malaysia still had ample land for future developments with the prices of properties here still cheaper compared with Kuala Lumpur and Penang.

Fujimura said since setting up its office here last September, about 300 of its Japanese clients had visited Johor Baru and many had shown strong interest to invest in the property market in Iskandar Malaysia.

“They are attracted to Johor Baru's close proximity to Singapore which is a popular destination among Japanese and also the long term prospects of Iskandar Malaysia,'' he told StarBizWeek.

Fujimura said this after signing a memorandum of understanding (MoU) with United Malaysian Land Bhd's subsidiary Seri Alam Properties Sdn Bhd at the Wealth of Iskandar Malaysia Conference recently.

Seri Alam Properties will develop 110 units of bungalows on an 8.09ha site overlooking a lake in Bandar Seri Alam township in Pasir Gudang with a gross development value between RM200mil and RM400mil.

The project is known as Japanese Holiday Homes with each bungalow having a built-up area of 2,200 sq ft and a land size of 4,500 sq ft with its own swimming pool and a club house.

GAAM is a subsidiary of Global Asset Asia Investment Ltd (GAAI), a holding company incorporated in Hong Kong whose clients are mostly high net worth Japanese investors.

“It (the group) has 10,000 cash-rich Japanese clients who are serious investors and always on the look-out to enhance their investment portfolios,'' said Fujimura.

GAAM general manager Takahiro Sakanoue said this was the company's second purchase in the Johor Baru market after the acquisition of two high end luxury condominium blocks of Molek Pine 3, in Taman Molek for RM200mil early this year.

The 28-storey tower block consisting of 212 units and a six-storey block with 36 units, are being developed by Tanjung Bintang Sdn Bhd, which comes under Berinda Group, a property development arm of Kuok Group.

On the bungalows at Seri Alam township, he said it was impossible to get a bungalow of similar size in Tokyo as the city was already densely populated.

Takahiro said a similar bungalow located in the suburbs of Tokyo, about 30 minutes by train to the city centre and minus the lake view, cost a whopping RM37mil each, and a that bungalow in an area about one hour's train ride from the city would sell about RM19mil.

“Our clients love properties in Johor Baru as they are considered bargains for them,'' he said.

Takahiro said Johor Baru was well known to the Japanese after the country's soccer team qualified for the World Cup after beating Iran at Larkin Stadium here in 1997. He said Iskandar Malaysia would also be a good location for Japanese manufacturers planning to relocate their operations elsewhere in view of the natural disasters in Japan, such as earthquakes.

Takahiro said the company would be looking at several options when investing in property projects in Iskandar Malaysia, including having joint-ventures with local partners, buying the properties en bloc or acquiring certain equities in companies. Other than Malaysia, GAAI has similar investments in Canada, China, Cambodia, Europe, Hong Kong, Japan, Macau, Thailand, USA and the Philippines.

http://biz.thestar.com.my/news/story...4&sec=business

S'pore-Johor rapid transit link by 2018

S'pore-Johor rapid transit link by 2018
Posted: 27 June 2011 1751 hrs

SINGAPORE: The Singapore and Malaysian governments plan to open a rapid transit link between the city-state and the neighbouring city of Johor Bahru in Malaysia's south by 2018, both governments said in a joint statement on Monday.

"The terminating stations of the (rapid transit system) link will be in the vicinity of JB Sentral, Johor Bahru and in the vicinity of Republic Polytechnic, Singapore," the statement said.

"It is targeted that the RTS link will be operational by 2018. The RTS link will have a co-located (customs, immigration and quarantine) facility in Singapore and another co-located CIQ facility in Johor Bahru so that commuters need to clear immigration only once for each way of travel."

The announcement comes as Singapore's Foreign Affairs Minister, K Shanmugam, signed a written instrument which contains the implementation details of the Points of Agreement (POA) on Malayan Railway Land in Singapore approved by both governments.

Signing on behalf of the Malaysian government was Minister in the Prime Minister's Department, Nor Mohamed Yakcop.

The joint statement by the prime ministers of Singapore and Malaysia said that preparations for the relocation of Keretapi Tanah Melayu (KTM) from Tanjong Pagar to the Woodlands Train Checkpoint on July 1 are on track.

A joint venture company, called M+S Pte Ltd, and Iskandar JV Company will be established by Thursday.

M+S will develop the four land parcels in Marina South as an integrated development and the two land parcels in Ophir-Rochor, also as an integrated development.

Iskandar JV will undertake two wellness developments in Iskandar Malaysia.

In addition, Khazanah and Temasek will jointly consider other potential developments which are commercially viable in Iskandar Malaysia of up to 500 acres of land, inclusive of the said 215 acres.

Also on schedule is the implementation of the work plan to hand over the waterworks under the 1961 Water Agreement by Singapore free of charge and as a matter of goodwill after the expiry of the agreement on 31 August 2011.

Malaysian Prime Minister Najib Razak and Singapore Prime Minister Lee Hsien Loong expressed appreciation and satisfaction on the work done by the ministers and officials in achieving the historic breakthrough in the POA.

Both prime ministers also reiterated their commitments towards further strengthening bilateral relations.

They noted that the resolution of the POA would pave the way for the two countries to explore new areas of cooperation.

- CNA/ir

Singaporeans look to JB as HDB prices rise

Singaporeans look to JB as HDB prices rise
By Yow Hong Chieh
June 26, 2011

Despite having the strictest restrictions on foreign property ownership in the whole country, JB continues to attract rising number of property investors from Singapore. — file pic
KUALA LUMPUR, June 26 — Johor Bahru, once described by Lee Kuan Yew as “notorious for shootings, muggings and carjackings”, is fast becoming home to more and more Singaporeans eager to swap their modest HDB flats for prime real estate.

Landed properties and high-end condominiums are increasingly being snapped up by Singaporeans willing to endure the daily commute to and from the republic as house prices there continue to outpace wages.
The median price of a four-bedroom HDB flat has risen 38.2 per cent from S$285,000 (RM670,000) in the first quarter of 2008 to S$394,000 (RM967,000) in the corresponding quarter of this year, according to HDB figures.

In contrast, wages only rose some four per cent annually during the same period.

The growing price gap between HDB and private flats — which Goldman Sachs says hit a high of S$490 (RM1,200) per sq ft this quarter — also means fewer Singaporeans can now realise their dream of owning private homes.

Former Malaysian Institute of Estate Agents (MIEA) Johor chairman Lim Boon Ping said foreign ownership restrictions at national and state level were the only thing stopping Malaysia’s richer southern neighbours, armed with a strong Singaporean dollar, from flooding over the Causeway.

He pointed out that Johor had the strictest restrictions on foreign property ownership in the whole country, which did not allow Singaporeans to buy single-storey terraces and pre-owned double-storey terraces.
This is on top of federal restrictions that, among others, require foreign owners to only buy homes worth RM500,000 and above.
“Without all these limitations, the pace of people coming in (from Singapore)... will be very fast,” Lim told The Malaysian Insider.

He said Singapore’s attempts to cool down the housing market were likely not prove effective in the long term, citing the S$880,000 (RM2.2 million) per unit opening price for the Centrale 8 design, build and sell scheme (DBSS) project launched last week.

“And that’s supposed to be public housing,” he said.

Developers from Johor and Kuala Lumpur are already responding to greater demand from Singaporeans, and some have started building homes in and around Johor Bahru that few locals can afford.

A realtor who declined to be named said a couple of high-rise developments targeted at Singaporeans are looking to sell 1700-2000 sq ft units at RM700 per sq ft, compared to the RM400-500 average for other luxury condominiums in the city.

“I have doubts about how many locals can afford that,” he said.

Real Estate and Housing Developers Association (Rehda) Johor chairman Simon Heng said the government’s “quite successful” promotion of Iskandar Malaysia was a strong factor behind the Johor Bahru’s improved profile among Singaporeans.

The entry of the Raffles Education Group and several Singapore-based healthcare providers into Johor as well as better connectivity offered by the nearly-completed RM1.1 billion Coastal Highway has also led to more properties being picked up by Singaporeans, especially in Nusajaya, he added.

Heng said anecdotal evidence suggests many more Singaporeans were now even willing to send their children to school in Johor Bahru while continuing to work in Singapore, even though crime remained a key concern.

“To them, it’s cheap to stay here. While travelling to Singapore may be a bit of a hassle, in Singapore they’ll only be able to stay in a small HDB flat... Over here, they can own a landed semi-detached house or bungalow,” he said.

Heng added that the Singaporean MRT’s new Thomson Line, which will terminate at Woodlands station upon completion in 2018, will allow Singaporeans to take the Rapid Transit System (RTS) into Johor Bahru and likely boost the number of cross-border commuters.

“With that, the mass movement of people will be so easy. Maybe many Singaporeans will look at that and say why don’t we buy property in Johor Bahru and take the MRT to Singapore,” he said.

A mega-city taking shape in Malaysia

IT is believed that those who visited Johor Baru five years ago might get lost at the southern gateway if they were to visit it today. -NST

Wed, Jun 22, 2011
AsiaOne

IT is believed that those who visited Johor Baru five years ago might get lost at the southern gateway if they were to visit it today.

This second biggest city in the peninsula after Kuala Lumpur has undergone a metamorphosis in the past five years. It is probably like Singapore, another red dot city.

Works on the new Coastal Highway connecting Danga Bay and Nusajaya is under way. Once completed, the highway will enhance accessibility to the southwestern part of Johor.
For city folk, the anticipated Eastern Dispersal Link will help ease travel woes from Pandan to the Customs, Immigration and Quarantine checkpoint at the Sultan Iskandar Building.

An EduCity has been planned in Nusajaya and several institutions of higher learning are poised to set up their campus in Iskandar Malaysia.

The 
Legoland in Nusajaya is scheduled to open next year, while the first Premium Outlet in Southeast Asia will open its door in Kulaijaya by the last quarter of this year.
The Iskandar Malaysia project, launched in 2006, has sparked off many vibrant changes.

"Next year is important in the calendar of this region's growth as many infrastructure projects are scheduled for completion," said Menteri Besar Datuk Abdul Ghani Othman.

Johor Baru member of parliament Datuk Shahrir Abdul Samad is confident that more investors, expatriates and Malaysia My Second Home (MM2H) programme participants will move to Johor Baru-Iskandar Malaysia.

Skudai assemblyman and Johor DAP chairman Dr Boo Cheng Hau believes there are vast business opportunities for foreigners, too.

Based on the statistics from the Immigration Department, there are 5,289 expatriates living in Johor as of June 15, of whom 4,456 are residing in Johor Baru.

Singaporeans, Japanese, Indians and Filipinos make up the bulk of the expatriates, who are mainly employed in the manufacturing and services sectors.

Most of the MM2H participants favour Johor Baru to Singapore as the cost of living in the southern city is deemed more affordable.

A survey by the London-based ECA International on annual cost of living recently placed Johor Baru as the 37th most expensive city in Asia for expatriates this year, as compared with 41st last year. It is slightly behind Kuala Lumpur, which ranked 33rd, and ahead of George Town, which placed 40th in the ranking.

Johor Baru's immediate neighbour, Singapore, is in sixth position. The republic's ballooning property market and food bills, coupled with inflation and higher currency values, are bitter pills which even the locals find hard to swallow. Some have opted to stay or shop in Johor Baru to cushion the impact.

The Singapore factor has, therefore, raised the competitive edge of Johor Baru. Johoreans know well that the Singapore factor is also the cause of their "suffering", which started when the Singapore dollar started to appreciate in the late 1970s. One had to pay RM1.05 for every S$1.

Most Singaporeans cross the Causeway to spend their money, just like the northerners who like to lavish themselves across the border during the weekends.

On average, about 100,000 people use the Causeway daily, making it the busiest land entry point in the world.
With all the changes taking place, it makes sense that Johor Baru has been re-branded "Iskandar Malaysia". Will there be a name change?

MP Shahrir firmly said: "No way."

Johor Baru was founded in 1855 when the sovereign ruler of Johor, Temenggong Daing Ibrahim, established his administrative headquarters there. It was then known as Tanjung Puteri. His son and successor Temenggong Abu Bakar renamed it Johor Baru in 1866

"History shows that Johor Baru is a royal town and state capital. It is a name that cannot simply be changed or replaced," stressed Shahrir.

"Moreover, Iskandar Malaysia encompasses areas beyond Johor Baru, such as Senai, Pasir Gudang, Nusajaya and parts of Pontian."

With its sheer size, 2 million sq ft, Lifestyle Retail Mall @ Medini is bigger than the famed Pavilion shopping mall in Kuala Lumpur and Vivo City in Singapore.

As the southern region's largest retail mall, the Lifestyle Retail Mall @ Medini North is set to rival its counterparts in Kuala Lumpur and Singapore. With its sheer size – two million sq.ft, the mall out sizes the famed Pavilion shopping mall in Kuala Lumpur and Vivo City in Singapore. This new development that is set to enhance the retail landscape in Johor will offer fashion boutiques featuring renowned global brands, F&B outlets of fine cuisine and entertainment as well as leisure activities, that pander to the discerning preference of sophisticated patrons.

Nusajaya's value proposition as Asia's new Regional City will receive a boost with opening of the Lifestyle Retail Mall and Residences @ Medini North – an award-winning design development. Strategically located adjacent to the LEGOLAND theme park, the mall is designed to complement the theme park while offering an all round leisure experience for the whole family. 

Phase 1A of the mall is scheduled to open for business concurrent with the launch of LEGOLAND Malaysia. This large-scale development is resultant of a recently-inked joint venture between UEM Land Holdings Bhd. and Iskandar Harta Holdings Sdn. Bhd.

Nourishing Herbal Delights

In the last 2 years or so, I have discovered  number of local restaurants that tantalizes my taste buds. Totally gastronomical experiences!

One of the treasures was unearthed when I was exploring Aeon Terbrau City one of the weekends. I noticed there were 2 different medical halls on the topmost level. Upon passing by a second instance, I did a double-take and realised that one of them was actually a herbal restaurant. Being a typical "uncle type", with a penchant for herbal soups and hot drinks, I decided to try their offerings for myself.

Thereafter, it was almost a monthly affair at Tang Shi Fu. I think I have recommended the restaurant to almost all my colleagues and church friends. Every first experience was quickly affirmed by smiles and many positive feedback by all. Many agreed that their prices are very reasonable as well. So, why don't you pay TSF a visit and pamper yourself with a nourishing treat while you are in JB?

http://www.tangshifu.com.my/



Monday, July 25, 2011

Interest Rates

One of the revelations that struck me as I embarked on my journey back to Malaysia was the difference in interest rates. Prior to this, I have been ignorant of the vast difference in interest rates (IR). Let's do a simple comparison.

The following IRs are accurate as of 25th July 2011.

Maybank Fixed Deposit IR (SG)
Maybank Fixed Deposit IR (MY)


RHB Fixed Deposit IR (SG)

RHB Fixed Deposit IR (MY)
One can certainly leverage on the better IRs provided by the Malaysian banks if you are into FDs. If you are concerned over the fluctuation on foreign exchange, you can always open a multi-currency FD account. Quite easily done, I'd say.

=)

Sunday, July 24, 2011

Yew's Cafe


I stumbled upon this recommendation in one of the forums. Have not tried it myself, but it sure looks really yummy! For location and contacts, please check out their website above.


These promotions end 31st July



These promotions end on 31st August 2011




Alright, need to get a few colleagues or friends for lunch or dinner soon! I'll update with my feedback when the food is being digested in my system!

Getting acquainted with JB property developments

In preparation for living in JB, some research must be done...

Yesterday, I visited a few developments for the first time. Started with Nusa Idaman, dropped by HH to chat with the sales people, went over to East Ledang and did a final stop at Setia Tropika. Of course, we recuperated at Old Town Coffee after the Saturday morning over Link 2. This was what I had:

 Ipoh Chicken Horfun

Alright, on with my journey...

Nusa Idaman: Really liked their Semi-Ds. Unfortunately, all sold out. Told sales to keep me updated about the upcoming cluster launch. This development is value for money.

Horizon Hills: They have just launched a row of Super-links (for the unfamiliar, a.k.a. super-sized terrace houses). Prices going for RM 8XXk for the intermediate and slightly more than 1mil for the corner unit. Although these super-links are larger in build-up than my cluster semi-d, I'll still go for the cluster because of the view. Well, that remains to be seen. :) Can't wait to collect the key in 2 years time...

East Ledang: I was really impressed with the security of EL. They really took time to scrutinise each and every visitor before permitting them entry. It took all of 8min before I finally managed to speak to the guard who gave me the directions to the sales office. Haha. I only found out what I knew all along after speaking to the sales person---everything was sold out! Well, except for the Luxury Pool Villas which are bungalows. Even then, there were only 3 units left. Will sit this one out. :)



 I will get one of these for my HH cluster home.











KFC: Mom and I were famished by 4.30pm. We took a much-needed break at the new KFC @ Setia Tropika Connection. There were Macs, Starbucks, Pizzahut as well as a Maybank branch as far as I had noticed. Really convenient place.



Setia Tropika: I was really impressed with their sales office. Very professionally done, felt like I was visiting the typical car showrooms back in Singapore. Anyway, this development was one of the few that really interested me as I did my research online mainly because of the low prices and interesting concepts such as the garage houses being offered (1 more international unit left). Admittedly, I rather liked the of 2 types Cluster homes offered. The Bridge (2.5 storeys) was going for RM 932,500 while The Louvre (2 storeys) was being snapped up at RM100k less. I was told that Singaporeans made up the majority of new home owners here. The figure? 60%. Visited the show houses and these images resulted:







It was a day that I felt was very well spent. First and foremost, it was quality time spent with mom. The bonuses were that I got to get a better overview of the properties and developments in Johor, adjusted my sense of safety and expectations in JB, got to drive my car for almost the whole day (210km) and came home knowing that I had made the right decision getting HH as my future home. :)

Sales persons who served me:

NI - Lee Irene (+6014-315-1618)
HH - Premila Velu (+6016-742-2291)
EL - Spiritu Santha (+6016-791-4688)
ST - Zanareyah Salim (+6012-742-3312)

JOHOR BARU: The crime index in Johor recorded a 20.69% drop last year compared to the previous year.

http://thestar.com.my/metro/story.as...east%2F8031848

JOHOR BARU: The crime index in Johor recorded a 20.69% drop last year compared to the previous year.

Johor police chief Deputy Comm Datuk Mohd Mokhtar Mohd Shariff said the achievement was equivalent to a reduction of 5,381 cases due to the commitment of all personnel involved and the police intelligence gathering method.


Commendable: Mohd Mokhtar (right) presenting appreciation letters to police personnel during the monthly gathering at the state police headquarters recently.
“We managed to lower the crime index because of the commitment shown by all as well as good cooperation from the public.

“Members of the public are the eyes and ears of the police and I firmly believe the best weapon to curb crime is police and public cooperation,” he said in his speech before presenting appreciation letters to 107 outstanding personnel during the monthly gathering at the police headquarters on Wednesday.

He said the police scored huge success particularly in curbing street crimes as well.

DCP Mohd Mokhtar said the police also clamped down hard on drug dealers and kingpins with 133 nabbed under the Special Preventive Act, last year.

“We are firm in combating drug abuse and trafficking in the state.

“Drug addicts and the dealers are not welcomed in Johor,” he said adding that police would continue its efforts against drug syndicates.

He said the Ah Long or loan sharks were also not spared with 80 of them nabbed throughout last year.

“We will not tolerate their illegal business or heavy handed tactics in dealing with their borrowers.

“I also advice the people not to resort to borrowing from the loan sharks and be mindful of their spending,” he said.

DCP Mohd Mokhtar reminded all personnel not to rest on their laurels in view of the police success last year.

“We have to increase our efforts and erase the fear of crime among the public.

“Crime prevention efforts as well as community oriented policing must be improved upon to ensure its effectiveness,” he said.

He added members of the public must always remember to call the police hotline at 07-2212999 for any enquiries or emergencies especially incidents of crime.

Another British varsity in Iskandar


By Sharen Kaur
Published: 2011/07/20


It is learnt that Education@Iskandar Sdn Bhd, a unit of Iskandar Investment Bhd, is expected to sign a partnership agreement with Reading Business School soon.


Kuala Lumpur: Britain's University of Reading Business School is setting up a branch campus in EduCity in Iskandar Malaysia, Johor, for between RM150 million and RM200 million, sources familiar with the plan say.


This would make it the third education group from the UK to set up branches in Iskandar Malaysia, highlighting their confidence in growth in Asian markets.


To be known as University of Reading Iskandar, construction is due to start next year, said a source.

It is learnt that Education@Iskandar Sdn Bhd, a unit of Iskandar Investment Bhd (IIB), is expected to sign a partnership agreement with Reading Business School soon.

EduCity is the education hub of Iskandar Malaysia, comprising world-class multi-university campuses, international schools and colleges, as well as recreational facilities and accommodation for over 20,000 students.

Demand from foreign universities has been so strong that the allocated land for EduCity is fully occupied. But IIB has said it would provide more land for EduCity.

The others that have committed are Marlborough College, one of the UK's leading independent co-educational boarding schools, and Newcastle University Medical Malaysia (NUMed), which is being built for RM90 million and due for opening this year.

IIB did not respond to questions sent by Business Times.

Set up in 2001 and located in England, Reading Business School is the centre of the world's business research and teaching.

The global institution had said in April it is investigating the prospects to set up a branch campus in Malaysia.

This was after a discussion with Datuk Zakaria Sulong, the High Commissioner of Malaysia to the UK, and leading regional business representatives on the investment potential in Malaysia.

Talks were centred on investments in Malaysia and how students and graduates of Reading Business School will have good chance for work placements.

Besides Marlborough College and NUMed, the hub consists of the Netherlands' Dutch Maritime University, the RM300 million Management Development Institute of Singapore, and the S$82 million (RM203 million) Raffles University Iskandar by Singapore's Raffles Education Group.

Grand Iskandar taking shape

NUSAJAYA: There is a sense of excitement in Iskandar Malaysia as key projects in this mammoth economic corridor take shape.

One of this year's highlights will be the opening of the Johor Premium Outlet (JPO) in Kulai-jaya with Prime Minsiter Datuk Seri Najib Tun Razak slated to attend the opening on Nov 11.

Shoppers will be able to buy branded items at factory discounts of 25% and above for famous brands including Gucci, Prada, Coach, Ferragamo, Ralph Lauren, Esprit and Calvin Klein.


Spectacular project : Abdul Ghani (right) looking at a model of the waterfront development during the Iskandar Malaysia Information Day recently. Looking on are Khazanah Nasional managing director Tan Sri Azman Mokhtar (second from right) and Kota Selat Tebrau chief executive officer Datuk Lim Kang Hoo (second from left) .
(The JPO is a 50:50 joint venture between Genting Group and United States based Simon Property Group).

Once completed, the gross built-up area of the JPO will be approximately 330,000 sq ft and is expected to bring in four million visitors in its first year of operations.

Besides the JPO, a number of key road infrastructure works have been completed in this vast development which is three times the size of Singapore.

Since the inception of Iskandar Malaysia in 2006, parts of the 2,217 sq km landscape which was once planted with rubber and oil palm is slowly changing with the opening of hospitals, universities, international schools, hotels, and logistics and manufacturing hubs.

Some of the eight road projects have in fact been completed ahead of schedule, namely Jalan Yahya Awal Jalan Lingkaran Dalam Interchange and the Ulu Tiram Interchange.

As for some of the development projects in Nusajaya, the Britain-based Newcastle Uni-versity Medicine Malaysia has been completed while construction of Marlborough College Iskandar is under way.

The construction of Iskandar's Legoland Malaysia theme park, also in Nusajaya, is progressing well and is scheduled to open next year.

Legoland will offer 40 interactive shows and rides along with 15,000 Lego models, including those of famous buildings. It will be the first of three planned theme parks in Iskandar Malaysia.

Two lead players involved in the planning, implementation and funding of the project are Iskandar Regional Development Authority (IRDA) and the Khazanah Nasional-driven Iskandar Investment Bhd.

Johor Mentri Besar Datuk Ghani Othman, who is also co-chairman of IRDA, has been hands-on since the inception to ensure the smooth implementation of the projects by having briefings at his office in Nusajaya and at IRDA's headquarters in Danga Bay.

Ghani has been aggressively promoting Iskandar during trips abroad.

These efforts have been successful as to date, RM73.24bil of investment deals have been clinched including 41% from abroad.

“I am happy with the progress of the projects taking shape in Iskandar Malaysia.

“Some of the road projects are actually ahead of schedule,” Ghani said.

Ghani is also known to question officials whenever it comes to projects that seem to be lagging behind, including the Senai flyover built under the supervision of the Public Works Department.

He has earned a reputation for not depending on official briefings on projects and has never hesitated to visit project sites to learn first-hand about delays or the projects' pro-gress.

Singaporean interest and participation in Iskandar is also expected to be further boosted through the settling of some of the thorny issues in the Points of Agreement between Malaysia and the island republic.

“It is just a matter of time before Singa-porean companies start investing in Iskandar in a huge way due to the warming bilateral relations between both countries,” a diplomat said.

IRDA has kept the public informed of the various projects through its Open Day events, including exhibitions.

It has welcomed public feedback and suggestions, and is also engaging the Facebook generation through its Facebook page, “Friends of Iskandar Malaysia”.

PREMIUM VALUE FOR PROPERTIES IN NUSAJAYA

http://www.nusajayacity.com/enewslet...ly/page01.html

Property values in Nusajaya have been increasing since its launch in 2007– evident by the speed at which these residences are snapped up like pisang goreng panas (hot banana fritters). 
"East Ledang provided a different lifestyle to people like us who look for space, nature and outdoor activities. If nothing ever changed, there'd be no butterflies", Erika - East Ledang resident and an active blogger. It is no surprise that residential property values have been strong with upward movements of between 30% and 40% over the past four years. Home owners are land-banking in Nusajaya as they see the potential that awaits Asia's first regional city in southern Malaysia. 
Discerning homebuyers now consider factors such as location, security features and developer's track record as compared to conventional home buyers who take price as a crucial factor in their decision-making. Contemporary homebuyers have no qualms about investing more on their properties and as such place high expectations, including better designs, layout, amenities, fine landscaping and safety as well as security features.
At Nusajaya, well-appointed residences feature hints of modernity and tropical architecture located within a gated and guarded vicinity. The award-winning East Ledang enclave –recognized as one of South East Asia's 20 Best Resort Developments 2010 Property Report, deploys the unique East Ledang Security Intelligence System (ELSiS), dubbed as one of the most advanced security management system in Malaysia. The incorporation of Crime Prevention Through Environmental Design (CPTED) concept is also prominent in a majority of the developments in Nusajaya.
"A Nusajaya residence is a sanctuary that promises you privacy, safety and exclusivity despite being in the heart of a township that is touted to be the future focal point of Johor."New Straits Times These signature residences are not mere structures of bricks and mortar but embodiments of lifestyle statements that combine the best that urban living can offer. These attributes are complemented by facilities and amenities such as the magnificent Puteri Harbour, Legoland and EduCity, enhanced by the convenience of nearby malls such as Tesco, Giant, Aeon Bukit Indah, Mydin and Anjung neighbourhood centre. The latest addition to these amenities would be the Johor Premium Outlet in Kulai that is due to launch in November 2011. 
Nusajaya residential offerings are further strengthened by the premier location of Nusajaya – located 30 minutes from Johor Bahru city centre, 20 minutes from Senai International Airport and 10 minutes away from the Port of Tanjung Pelepas. The completion of several major road projects in Iskandar Malaysia such as the New Coastal Highway (due to complete end 2011), Eastern Dispersal Link Expressway and Senai-Pasir Gudang Desaru Expressway in the next one to two years would contribute to enhance connectivity with this southern-most tip of Asia.