Malaysian states beyond Johor woo Singapore investors

Reported by Tan Weizhen, TODAY

Published on 2nd March 2015

SINGAPORE: Against the backdrop of a weak Malaysian ringgit, the coming Singapore-Kuala Lumpur High Speed Rail and the series of property cooling measures introduced here, developers in Malaysian states beyond Johor Bahru are eyeing Singaporean investors.

The developer of a mixed development in Malacca - a three-hour drive away - that comprises a 500,000 sq ft theme park, retail mall and three hotels was the latest to do the courting.

With an oversupply of properties in Malaysia, analysts said developers could well continue to woo investors from Singapore.

In only two roadshows, more than 60 Singaporeans have pumped their money into retail and hotel units at Harbour City@Pulau Melaka, said its developer Hatten Group. Units in the mall cost between RM150,000 (S$57,000) and RM3.7 million, while suites are priced from RM270,000 to RM1.2 million.

A second roadshow held over the weekend drew dozens of Singaporean investors, mostly middle-aged, although the developer has begun to see younger Singaporean investors — those in their mid-30s — turning to Malaysian properties for their first punt.

Hatten Group’s Head of Marketing and Sales Cassandra Tio said the booming medical tourism industry in Malacca has led many Singaporeans and Indonesians to flock there.

"THE MAIN DRAW IS THE PRICE"

Speaking to TODAY at the roadshow on Sunday (Mar 1), prospective Singaporean investors pointed to Malacca’s appeal as a tourist destination and a viable alternative to Johor, particularly the Iskandar region, where there has been buzz in recent years.

Mr W Lee, 55, said: “It is something different as it is a historical town. It’s been mostly Johor or Kuala Lumpur so far, and I’m still cautious about Johor, as it is not quite safe.”

Another interested investor in his 40s, who wanted to be known only as Mr Lim, added: “Tourism in Malacca has potential and the weak ringgit now means it is cheaper for us to invest. Besides, the property market in Singapore now is not as good (for investment).”

Commenting on the trend, Mr Colin Tan, Director of Research and Consultancy at Suntec Real Estate, said: “Singaporeans may bite with the main draw being price, as the ringgit has fallen so much.”

While Malaysian developers have targeted Singaporean investors, these were uncommon and mainly in Johor, Penang and Kuala Lumpur.

Mr Tan added: “If developers feel that the particular property appeals to foreigners, they would come to Singapore. Also, there are many Malaysian permanent residents here, which is another target market.”

Century 21 Chief Executive Ku Swee Yong said developers in Malaysia are trying to cash in on the Singapore-Kuala Lumpur High Speed Rail, which is targeted for completion by 2020 — one of the planned stops is just outside Malacca.

“However, KL and Penang are better options. In Penang, for instance, there is a strong multinational corporation base, with strong job growth. Malacca is mostly still a tourist destination.”

He warned, however, that Malaysia may not be an ideal investor destination, given that there is an oversupply of properties and dipping tourism numbers, and the number of long-term residency applicants remains low.

Up next at Iskandar Malaysia: A snow world theme park and an opera house

Reported by Rennie Whang, The Straitstimes

Published on 21st January 2015

SINGAPORE - Another large mixed development project at Iskandar Malaysia is on the cards.

Chinese state-owned company Greenland Group and Iskandar Waterfront City Berhad (IWCB) will be jointly developing a RM3 billion project over 128 acres along Tebrau Bay.

The first phase of the Tebrau Bay Waterfront City project, as it is called, will include a snow world theme park, an opera house, a hospital specializing in Chinese traditional medicine and a school. It will be developed over 15 years.

Johor Menteri Besar Mohamed Khaled Nordin said in Shanghai on Wednesday that this is part of plans to develop the eastern corridor of Johor Bahru, stretching from Tebrau Bay to Pasir Gudang.

He was speaking at the signing of a joint-venture agreement between Shanghai State Government-owned Greenland Group and Johor State Government-linked IWCB.

Datuk Khaled noted that about 13 local and foreign companies are already actively involved in developing the proposed Iskandar Waterfront City in Danga Bay.

The Iskandar Waterfront City has a cumulative gross development value of RM125 billion and is on the western corridor from Johor Bahru to Nusajaya.

High impact foreign direct investments (FDI), including from China, are necessary to jump-start economic activity in Johor, Datuk Khaled said. Johor's growth has been invigorated by the launch of several mega foreign property developments which have boosted the local economy due to their spillover effects, he added.

Greenland Group executive vice-chairman Xu Jing said that Greenland was "extremely upbeat" about growth prospects in Iskandar Malaysia as the special economic zone was spearheaded by the Malaysian government.

Greenland is, together with Iskandar Waterfront Holdings (IWH), developing a RM2.2 billion integrated property project on a 13.6 acre plot in Danga Bay

"We've undertaken urban development in over 80 cities throughout China. We're keen to share the experience with IWH as our long-term joint-venture partner and help transform Iskandar Malaysia into an international destination," added Mr Xu.

Johor Bahru — a metropolis in the making

Published on New Straits Times on 21st September 2012

Johor‘s real estate market before the rise of Iskandar can best be described as sluggish and uneventful. While Kuala Lumpur has been the epicentre of Malaysia‘s development, Johor Baru has long moved forward at a glacier pace. However, the growth of Iskandar changed all that and has propelled the state into its long overdue growth spurt.

According to Gavin Tee, founder of SwhengTee International Real Estate Investors Club, both Singapore and Johor Bahru have entered into a symbiotic relationship not unlike that of Hong Kong and Shenzhen, a model where both sides leverage on each other to further their respective development agenda.

“I feel that globalisation is the driver behind the formation of such bilateral geographical co-operation which shall pave the way for rapid growth not only in JB, but the whole of Malaysia.”

Iskandar‘s arrival was in line with the trend towards a borderless world and will seed the growth of JB’s real estate development. Like China’s economic development over the past two decades, the Malaysian government’s efforts, planning, and financial support are key to revitalising JB’s sluggish market to enable the state to compete in the global market.

“Iskandar — a stroke of genius”: “The launch of Iskandar was a stroke of genius and the government has shown its determination by announcing to the world the formation of Medini,” stresses the property consultant.

He adds that first impressions are the game changer, and the large infrastructure investment and open policies helped massively in attracting foreign direct investment. Investor-friendly policies and an open real estate market paved the way for expatriates and foreign properties buyers.

In addition, healthcare, creative-based education and business activities are strongly encouraged and these efforts have resulted in explosive growth in Iskandar. Despite many Johoreans‘ initial pessimism of the project, Iskandar has taken off in a big way and has managed to grab the world‘s focus on this up and coming economic hotspot.

“The biggest foreign involvement comes from our southern neighbour and the rise of Iskandar saw unprecedented levels of involvement from Singapore. Investments started flowing in from the island republic and the Singaporean government actively encourages its people to invest in the region,” Tee reveals.

Other major investors include South Korea, Japan, China, and Europe, making JB a truly global city. The rise of JB in the international circuit is beyond the wildest dreams of Johoreans in the past, but the reality is now and many are hoping for Iskandar to remain open and innovative so as to keep in pace with global developments and become an integral part of the global system.

“Many people in Kuala Lumpur do not understand the situation and the level of interest shown in Iskandar. My own interest in Iskandar is due to the number of enquiries I get from Japanese and Chinese investors on whether they should put their money in Kuala Lumpur or Iskandar,” reveals Tee. “The sheer volume of interest prompted me to start studying Iskandar region actively some six months ago and my investigations led me to conclude that Iskandar is the real estate hotspot for next year.”

“I personally believe that JB is poised to take the crown as the investment hotspot for 2013 and the sleeping dragon is ready to move.”

“Sleeping dragon ready to move”: According to figures from REHDA (Real Estate and Housing Developers‘ Association Malaysia), the real estate prices in JB has rose by merely 0.6 per cent over the past 20 years and the past decade was particularly slow with barely any appreciation. Tee believes that the prices will boom soon and the prices will rise to unprecedented levels rapidly.

Other than the overall trend towards globalisation acting as a crucial external push factor, the various investment friendly policies by the government also serves to pull in investments. The government has invested significantly to improve the infrastructure as lack of proper infrastructure, including roads and communication network are major stumbling blocks to development.

“World class infrastructure has enabled Iskandar to compete with other established investment hubs across the region and it is the single largest investment of its kind in Southeast Asia.”

Iskandar‘s success hinges on some keys components and Tee believes that the main challenge is to attract people to stay here for longer periods of time. One of JB‘s biggest problems is that many Singaporeans come here for the cheap food and petrol, but do not usually stay for long.

“This ‘come-and-go’ approach significantly slows down the development potential and there is a need to attract them to stay for at least two or three days.”

Challenge to attract talent: The other challenge is to attract talent to set up homes in Iskandar and the government‘s plan is very simple yet effective. Other than encouraging healthcare, education, and innovation-based industries, the entire Medini region was conceived as an open market without FIC (Foreign Investment Committee) restricting foreign buyers from buying houses here, and this 100 per cent ownership will serve as a huge draw for international buyers.

Educity has also successfully attracted many prestigious universities from around the world, including those from Singapore and the United Kingdom, to set up campus here.

“Currently many Malaysians are leaving the country for further education and many of them stayed on after graduating. Educity is set to reverse the trend and to draw in talents from around the world and to make Iskandar their home after they complete their studies.”

The rise of the medical industry will create many jobs for the graduates of MMU and other medical colleges while other major developments such as Legoland and Pinewood Studio will create jobs for those in the service or creative industries.

“Such well thought-out development plan and the positive feedback cycles are chief reasons for my optimism of the Iskandar region. The region will not only attract talent, but groom them, and provide the jobs to retain them. We encourage them to set up base here and to call Iskandar home.”

There is a pressing need to draw in settlers and not just tourists, people who call this place home instead of merely a workplace. The idea goes beyond any single economic or social objective, but signals the birth of a truly global metropolis.

Focus on tourism in 2013: As far as investments are concerned, next year promises to be a good year for regions that target foreign investors and those with a strong focus on tourism.

“Personally I would like to invest in regions with a tourism focus and Iskandar fits the bill perfectly as it was conceived from the onset to attract investments and such global focus lends it a robustness as even if one (investing) country faces problems, another will step up to fill the gap thus making me feel great confidence,” says Tee, citing this as the primary reason for his optimism.

He also cites the government‘s efforts in entering into agreement with many heads of state and investors as confidence boosters knowing that the big boys are committed in bringing in results.

The third reason cited is the generally low price of JB‘s real estate and he believes that the depressed prices in JB properties means huge room for growth and next year‘s focus will be on investments in the area which will propel it to the top.

Huge room for growth: Tee is quick to warn however that despite the rosy picture, the investments are not without caveats and investors need to be wary of pockets of oversupply that might occur in regions which might require time for adjustments.

“This is where investors need to be cautious and properly study the viability of each investment. At five times the size of Singapore, Iskandar is huge and therefore investors need to be prudent in picking the right spot for growth.”

He adds that although Nusajaya is the latest darling for investors, there are still much room for growth in the matured JB Central. Foreigners staying in Iskandar need their food and entertainment and this is where the developed area can cater to their demands. One Terbau and Setia88 are two matured districts with the biggest growth potential, he indicates.

The highways linking Iskandar and JB Central have eased up traffic massively but there is still risk of traffic congestion as the population grows. He hopes that a modern rail service linking Woodlands and the proposed high speed rail between Singapore and Kuala Lumpur can be completed soon as this will truly cement JB‘s position as a metropolis.

Read more: COVER STORY: Johor Bahru — a metropolis in the making - RED - New Straits Times http://www.nst.com.my/red/cover-story-johor-bahru-a-metropolis-in-the-making-1.146219#ixzz2718ryL00

HLIB Research 30 September 2011 (Gamuda; Traders Brief)

Living in Johor remains exciting. How I wished I was already a resident while writing this post. Anyways, some indication on the sales performance of Gamuda in Nusajaya.


Link to actual source


Gamuda (BUY)
Record breaking year

• FY11 earnings came in at a record high of RM425m (20.7 sen/share), in line with HLIB forecast but 7.6% above consensus numbers.
• Strong performances from all divisions buoyed Gamuda's earnings to record highs, which grew by 32% YoY. Outstanding active order book fell to RM2.3bn (RM2.1bn from EDTP), translating to only 1.2x FY11's construction revenue. Hence, the MRT tunnelling project is crucial for Gamuda to replenish its order book.
• Launches in Bandar Botanic, Horizon Hills and Jade Hills continued to do well with some ~RM300m new sales achieved during 4Q11. Unbilled sales remained at ~RM1bn, translating to 1.4x FY11's property revenue. For FY12 property sales target, Gamuda has already secured ~RM350m new sales out of the targeted RM1.35bn in local property sales.
• As for Vietnam, response has been poor due to the high interest rate environment and the lack of development track records. The management has revised their Vietnam property sales target downwards drastically by >50%, from RM1.5bn to RM650m.
• FD SOP valuation trimmed by 2.8% from RM3.92 to RM3.81 as we introduced a 10% discount in our SOP valuation to reflect the current risk adverse appetite in the market.

Iskandar to benefit from Singapore-Malaysia relationship

Living in Johor. Another validation from Analyst. Good for us! 

Sep 12, 2011 - HomeGuru.com.my

Fund managers in Singapore see the enhanced bilateral relationships between Malaysia and the city state as the key driver of development in Iskandar Malaysia.

According to Quah He Wei, an analyst from HwangDBS Vickers Research Sdn Bhd, feedback from fund managers revealed that most of them would encourage their clients to invest in the region.

He added that the Singapore government has been asking its investors to look at Iskandar through initiatives such as Temasek Holdings’ joint venture (JV) with Khazanah Nasional Bhd to develop a “wellness township” in Nusajaya.

“About three week ago, we organised a field trip to Iskandar for the first time for more than 40 fund managers from the republic,” Quah informed the StarBiz.

He added that based on a survey, 53 percent of the fund managers approved the Iskandar’s development progress while 41 percent were neutral.

The survey also revealed that 64 percent would likely invest in Iskandar properties within the next two years and that 72 percent chose to acquire landed properties in Nusajaya, as the area canaccommodate various major projects.

Quah noted that the quality and pricing of housing properties in Nusajaya were the primary attractions.

“But Nusajaya still lacks critical mass and investors are likely to come in only in 2012, which is the tipping point with the completion of the projects,” he said.

Situated in the southernmost part of Johor, Iskandar has a total land area of 2,217 sq km. The other four flagship development zones are the Eastern Gate Development Zone, Johor Baru City Centre, Senai-Kulai and Western Gate Development Zone.

Iskandar Malaysia making progress

Living in JB has its ups and downs. Today, it is an up. Why? Well, read the report for yourself and bask in glorious confidence if you've already a foothold in JB properties. It is always to receive good news from independent sources. Or so, saiths I. 


A special report by HwangDBS Vickers Research, On Saturday 10 September 2011, 23:45 SGT
http://sg.finance.yahoo.com


During our recent site visit to Iskandar Malaysia, we drove around the project sites for EduCity, Medini, SiLC, Horizon Hills, Setia Eco-Gardens, and Johor Premium Outlet, and made stops at the state administrative centre in Kota Iskandar, Columbia Hospital, and Puteri Harbour sales gallery. We also met up with representatives from the Iskandar Regional Development Authority (IRDA), Iskandar Investment Bhd (IIB), UEM Land Bhd, S P Setia Bhd and Eastern & Oriental Bhd (E&O).

The feedback from fund managers was encouraging — 53% and 41% of our survey respondents were positive or neutral on Nusajaya’s development progress. Respondents were generally satisfied with the progress on infrastructure, security, foreign and private investments, government policies, awareness and marketing, and property prices. Fund managers rated infrastructure, security, and government policies as the top three factors required for Iskandar to be a success.

On security, IRDA highlighted that a Safety and Security Blueprint is in place and the crime index had fallen by 21% and street crime by 47% compared with last year. Police manpower has been increased from 6,172 in 2007 to 9,115, and Iskandar now has five police districts compared with only three previously. An additional 273 mobile police vehicles and 12 mobile police stations have been deployed as tactical command centres in Iskandar’s five flagship zones — Johor Bahru City Centre, Nusajaya, Western Gate Development, Eastern Gate Development and Senai-Skudai).

We are encouraged that 64% of our survey respondents are keen to invest in Iskandar-related shares and properties within the next two years, of which 72% are interested in landed properties. Tourism should be a low hanging fruit as 67% of respondents would consider Iskandar as a weekend getaway, while 72% would likely visit the theme parks. The Johor Premium Outlet — the first Premium Outlet in Southeast Asia — should also be well-received based on our 89% positive response.

Some 49% of the fund managers are also interested in patronising Iskandar’s healthcare facilities. This concurs with our observation of the activity level at Columbia Hospital, which is positioned as a suburban/community hospital (41 beds). Since its launch in July 2010, Columbia Hospital has treated over 8,000 patients, of which 30% to 40% were foreigners. Occupancy rate is 80% to 90% and average length of stay is two days. This can be attributed to the scarcity of reputable private hospitals in Johor and relatively cheaper medical fees compared with Singapore (the single-bed room rate is only RM180 against S$498 (RM1,230) at Gleneagles Singapore). EduCity, however, needs more promotion (only 11% of respondents would consider sending their children there).

2012 tipping point on track

According to IRDA, committed investments in Iskandar Malaysia have reached RM76 billion as at 1H11 (about 59% from foreign investors), of which 40% or RM30 billion has been realised. Most of the infrastructure and catalyst developments in Iskandar are on track for completion from 2012 onwards, which should help to draw in critical mass to Nusajaya.

Under the Ninth Malaysia Plan, RM6.3 billion has been allocated to upgrade existing road infrastructure and build new roads to improve connectivity (four out of six road projects are in various stages of progress). The Coastal Highway, which will cut travelling time from Nusajaya to Johor Bahru by half to 20 minutes, looks on track for completion by December this year. Newcastle University (first in EduCity) is expected to commence enrolment by October this year, although hostels are still under construction and the food courts and retail facilities seem rather sparse for now.

Although construction of Legoland seems to be in the initial stages, we were assured that its September 2012 launch date is still achievable as fabrication of rides will be done concurrently offsite. We also noted several large projects slated for completion in 2012 (some of which have been overshadowed by other higher profile projects), as shown in Table 1.

Medini: Central business district of Nusajaya

IIB provided some insights on development plans for the 902ha Medini, which was acquired by a Middle East consortium comprising Kuwait Finance House, Abu Dhabi’s Mubadala Development Co and Saraya Group in August 2007 for RM4.1 billion (RM43 psf). Medini is divided into four components for mixed development: Medini North, Business, Central and South. To date, about RM4 billion has been committed and spent on infrastructure and building works.

There are robust development activities at Medini North to leverage on the September 2012 opening of Legoland, which is targeting one million visitors per year. Various listed construction and property players are keen to get a piece of the action:

• WCT Bhd is scheduled to launch its first phase (300 condo units) 1Medini residential project in Medini North this month at US$150 (RM450) psf (GDV RM200 million), with targeted completion by 2013. WCT will also be developing a RM688 million commercial project in the Medini Business District, just minutes away from Medini North;

• UEM Land Bhd is developing Lifestyle Retail Mall and Residences@Medini North, which will be directly connected to Legoland. Phase 1A, comprising 200,000 sq ft gross floor area, has been targeted for completion by September 2012, although the entire development of two million sq ft GFA will be spread over eight years;

• Bina Puri Holdings Bhd is scheduled to complete a RM500 million SOHO and retail development (Medini Square) at Medini North by 2013. The first phase of 1.05 million sq ft GFA is expected to be completed in 2012; and

• Pantai Holdings Bhd plans to build a 300-bed private hospital, Gleneagles Medini Hospital, on a 6ha site at Medini North, scheduled for completion in 2014.

For Medini Central, E&O will jointly develop 85ha at the iconic wellness township in Medini Central with Pulau Indah Ventures (Temasek-Khazanah joint venture). E&O has been appointed the project manager and sales and marketing consultant for the RM3 billion-GDV mixed development.

The project should do well given:

• its strategic location near the Second Link and public golf course, and Medini is the only area within Iskandar with special incentives (10-year tax exemption, no bumiputera quota, freedom to source capital and labour globally);

• Temasek’s stamp of approval which should see strong interest from Singapore buyers; and

• E&O’s strong execution track record (master plan likely to be similar to its flagship Seri Tanjung Pinang Phase 1).

Rising interest in Johor property

We saw an increase in landbank transactions at Iskandar recently, with Mah Sing Group Bhd and Dijaya Corp Bhd acquiring large parcels over the past five months. Nusajaya’s land price has continued to set new benchmarks, surpassing other areas in Johor, including Johor Bahru city centre. For example, Puteri Harbour was transacted at RM220 psf in June 2011 against Johor Bahru’s RM117 psf in August. Recent transactions at SiLC industrial land had touched RM35 psf, with UEMLand targeting RM60 psf in the longer-term as Senai Industrial Park is already asking for RM45 to RM60 psf. We understand SiLC buyers are required to construct their factories within two years of purchase, failing which UEMLand has the right to buy back the land at 90% of the purchase price.

Property launches are expected to pick up at Nusajaya and set new price benchmarks. UEMLand will be launching Imperia Condo at Puteri Harbour (700 to 1, 200 sq ft built-ups) soon at RM600 to RM700 psf, while WCT is aiming to launch 1Medini at RM450 psf. These prices are much higher than UEMLand’s Ujung apartments that were launched in 4Q09 at RM300 psf. The latest launches of link and semi-detached houses at Nusajaya are already touching RM800,000 and RM1.2 million per unit, almost comparable to property prices in some areas within the Klang Valley. Based on KGV Lambert Smith Hampton’s survey (highlighted in The Edge weekly), average prices of 2-storey terraced houses and semi-d/cluster houses at Nusajaya have appreciated by 21% and 48% since the start of 2009.

S P Setia remains market leader in Johor

SP Setia has seen consistent sales at its Johor projects, growing at a five-year compound annual growth rate of 17%. Sales for 9MFY11of RM798 million have surpassed FY10’s sales of RM607 million. Johor currently accounts for about 35% of S P Setia’s total sales (was about 70% prior to launch of Setia Alam and Setia Eco-Park in 2004). Johor will continue to feature prominently in S P Setia’s plans after the recent acquisition of two large parcels near Tebrau — Setia Eco Cascadia (105ha @ RM15 psf) and Setia Business Park 2 (106ha @ RM11 psf) for a combined RM295 million. S P Setia now has 608ha of land in Johor with RM8 billion potential GDV.

About six months ago, S P Setia ventured into industrial properties — a low hanging fruit given its established presence in Johor since 1997 and rising private/foreign investments at Iskandar. Setia Business Park (adjacent to Setia Eco Gardens) is well sought after with Phase 1 and 2 fully sold (80% to 90% locals). Phase 1 is completed and we will see Singapore-based companies such as Old Chang Kee, SYY Pte Ltd, Huiji and Windwell move in. S P Setia has also started to launch apartments in Johor to tap into the affordable homes segment, for example, Sky Gardens Residences at Setia Tropika (RM390 psf, 56% sold) and Sky Loft at Bukit Indah (RM462 psf, 75% sold).


Genting Plantations’ Johor Premium Outlet (JPO)

JPO, a 50:50 joint venture between Genting Plantations and US-listed Simon Property Group, is strategically located at the intersection of the North-South Highway and Second-link Expressway, and will span 18ha with approximately 175,000 gross lettable area.

It will be the first Premium Outlet in Southeast Asia, boasting 80 to 90 outlet stores with an average size of 1,800 sq ft per lot. There will be 3,000 parking bays and 30 bus bays to cater for four million visitors per year (first year target). Located between Resorts World Genting in Genting Highlands (3.5 hours drive) and Resorts World Sentosa in Singapore (one hour drive), JPO is likely to be packaged as part of the Genting Group’s travel packages/bus programme to attract more visitors to the shopping haven.

With the official launch (Nov 11, 2011) just four months away and its superstructure yet to be completed, we expect JPO to open in stages.

This article appeared in The Edge Financial Daily, September 8, 2011.

New Coastal Highway project is 80% complete, says Irda CEO

Am so looking forward to the completion and full operation. Any bros with pictures, please post/share... I understand some have already traversed the highway... heheh!

By ZAZALI MUSA
Published on 31st August 2011
http://thestar.com.my/

JOHOR BARU: Work on the New Coastal Highway is progressing well as it is expected to open for motorists in the second-quarter of 2012.

Iskandar Regional Development Authority (Irda) CEO Ismail Ibrahim said the project already at 80% completion level.

The 15km toll-free highway costing RM945mil links Johor Baru city centre to Nusajaya, one of the five flagship development zones in Iskandar Malaysia.

Other zones linked by the facility includes the Johor Baru City Centre, Eastern Gate Development Zone, Western Gate Development Zones and Senai-Kulai.

“Motorists using the highway from the city centre will reach Nusajaya in 15 mins from 30 mins currently,” he said adding the highway would disperse traffic congestion by 30% to the city centre.

It provides direct link between the Bukit Chagar Customs, Immigration and Quarantine to Nusajaya for motorists entering Johor Baru from Singapore to visit Legoland Theme Park at Nusajaya and Indoor Theme Park @ Puteri Harbour.

Ismail said this after witnessing a signing ceremony between Genting Property Sdn Bhd and Telekom Malaysia Bhd (TM) represented by its senior manager Beverly Goldman and Johor general manager Mohd Roslan Mohd Rashidi respectively for the provision of the high speed broadband services.

He added that the interchange connecting the North-South Expressway to Kulaijaya near the exit point to Senai-Pasir Gudang-Desaru Expressway would be ready by mid-October before the opening of the JPO in November.

“The interchange will provide an alternative route for motorists and shoppers to visit the JPO and will improve connectivity and accessibility to Kulaijaya,” said Ismail.

JPO is a 50–50 joint-venture between the Genting Group’s 54.6% owned subsidiary Genting Plantations Bhd and Premium Outlets, a division of US-based Simon Property Group, offering off-seasons branded items between 25% and 65% all year round.

This is the first of its kind in South-East Asia, there are 52 outlets in the United States, Mexico, Japan and South Korea.

Separately, Ismail said Iskandar Malaysia has received cumulative committed investment of 75.96bil up to June 2011, of which 60% (RM45.48bil) from local investors and 40% (RM30.48bil) from foreigners.

Gold At $1,950 Within The Month Reaffirm UBS; JP Morgan $2,500 Year End Call Remains

I am long precious metals, especially gold. So, once in a while, I will post some articles/videos that I feel are notable milestones for my own records. Of course, those of you who are more invested may want to consider gold and silver in your own investment portfolio as well. Mike Maloney has aptly presented a strong argument for gold, which I will not repeat here. Feel free to view that video for your own education. For those who might be more familiar with Robert Kiyosaki instead, you might like to know that he is long silver and gold as well. Well, more so silver.

Read from source here

Submitted by GoldCore
30th August 2011

Brimelow said that “bearing in mind the huge gold importing by China in the latter part of last year, in JBGJ’s opinion this is currently the key issue in the gold market.”

The UBS daily note reports that “the mood among gold investors appears to be to buy the dip rather than chase the market, which is understandable given last week's volatility.”

UBS conclude that the “violent sell-off hasn't done any lasting damage to gold, and the reasons investors bought gold in recent months remain valid. Our one-month forecast of $1950 remains in place.”

UBS three month price view is $2,100 per ounce.

Very significant demand being seen for bullion internationally and especially in Asia means that gold’s correction is likely to again be of short duration. Indeed, the scale of demand suggests that gold may not need a long period of consolidation and could again surprise to the upside.

Non gold experts, many in the financial services industry, continue to warn of a bubble. Their analysis is extremely simplistic and almost exclusively based on recent price action.

However, the majority of those in the industry and the majority of gold market analysts remain bullish.

Throughout August, prior to the recent record nominal high and subsequent selloff, many banks raised their forecasts for the year.

SocGen raised its average gold price forecast to $1,950 an ounce for the fourth quarter of 2011 and to an average of $2,275 per ounce in 2012.

Bank of America-Merrill Lynch said in a research note it was revising its 12-month gold target to $2,000 an ounce.

JPMorgan said that gold could reach over $2,500 per ounce prior to year end.

The recent sell off has not seen banks and analysts revise down their price forecasts.

Since 2003 that the real high of $2,500 per ounce (inflation adjusted and based on CPI) would likely have to be reached prior to gold being a bubble.

Those informed about the gold market know that absolutely nothing has changed about the supply and demand dynamics driving the gold market.

UEM Land Q2 net profit soars

Living in JB - I can't help but think that this scenario will only get rosier and rosier...It bodes well for investors and relocators alike as more and more funding pours in to build us a global city of choice.

By Bilqis Bahari
Published on 26th August 2011
http://www.btimes.com.my

KUALA LUMPUR: Property developer UEM Land Holdings Bhd's second quarter net profit more than doubled due to its soaring revenue.

Its net profit for the three months to June 2011 came in at RM88.9 million compared with RM40.35 million in the same quarter a year ago.

Revenue rose to RM509.4 million from RM88.0 million last year.

UEM Land said the momentum in the second quarter of 2011 will provide a strong platform for the current financial year.

For the first six months, UEM Land's net profit stood at RM106.54 million, up from RM43.49 million a year ago.

Group revenue rose to RM697.09 million from RM127.7 million previously.

UEM Land said the total unbilled sales of RM1.53 billion as at June 30 this year will support its revenue and profit for the current and subsequent financial years.

The significantly higher revenue in the quarter under review came mainly from higher direct development projects and developed land sales, UEM Land said in a filing to Bursa Malaysia yesterday.

Higher developed land sales of RM122.1 million compared with immediate preceding quarter of RM7.3 million was mainly attributed to strong sales performance for the Southern Industrial & Logistics Clusters (SiLC).

The high demand for industrial land at SiLC was due to the relocation of Singapore factories to Nusajaya, the company noted.

Greater interest in gold investment options as gold prices hit record highs

By Ng Puay Leng / Monica Kotwani
Published on 23rd August 2011
http://www.channelnewsasia.com/

SINGAPORE: As international gold prices hit record highs, some banks said there is greater appetite from local investors purchasing gold investment products.

Analysts predict gold prices could go as high as US$2,500 an ounce, compared to US$1,400 at the beginning of the year.

According to United Overseas Bank (UOB), more people are enquiring about and purchasing gold investment products, such as gold bars and coins. The bank has seen a 20 per cent increase in gold coin purchases compared to earlier this year.

Citybank said interest in gold investment accounts and gold-related funds has also doubled since last year.

According to the World Gold Council, the Asian appetite for gold is strong.

Analysts said demand for gold was fairly weak in the 1990s, but it has become an increasingly popular investment option in the last few years.

The sustained interest in gold as an investment option has also led to its prices being more sensitive to market movements.

Vasu Menon, Head of Content & Research with OCBC Wealth Management, said: "In the short term, its hard to make predictions where gold is headed. Gold is a very volatile asset class. Investors who want to buy gold must remember that number one, they must have the appetite for risk."

-CNA/ac

Crescendo plans RM2.5b township in Johor

http://www.starproperty.my/
By Zazali Musa
Published on 22nd August 2011

JOHOR BARU: Crescendo Corp Bhd (CCB) is set to launch its new mixed development property project, Bandar Cemerlang township with a gross development value (GDV) of RM2.5bil by the year-end.

Chairman and managing director Gooi Seong Lim said the project would keep the company busy for the next 12 to 15 years.

Once completed, he said the township would have about 15,000 units of mixed residential and commercial properties, of which 90% residential and 10% commercial properties.

The township spans on a 562.51ha site, whereby 349.64ha is located in Mukim Tebrau of the Johor Baru district and 212.86ha in the Kota Tinggi district.

“The completion of the Johor Baru-Kota Tinggi highway in June this year will definitely improve accessibility and connectivity to our project,” Gooi told StarBiz recently. He expects the unique location of the township within Johor Baru and Kota Tinggi districts to be a strong selling point to attract prospective buyers.

“We also see demand for properties in Kota Tinggi is on the upward trend in the recent years due to the district’s close proximity to Johor Baru,” he added.

Similarly, he said the company’s on-going Nusa Cemerlang Industrial Park (NCIP) in Nusajaya would continue to perform well due to its strategic location to the Second Link crossing.

He said: “We are expecting the relocation of medium-sized enterprises from Singapore to NCIP due to lower land cost, cheaper labour and utility costs as well as better control given the park’s close proximity to their base in Singapore.”

So far, 63.97ha of the park’s 213.26ha site had been developed, Gooi said adding the company would take about five years to develop the entire industrial park with a GDV of RM1.5bil.

He said Singapore investors currently represented about 44% of industrialists operating at NCIP followed by Malaysians (34%), Germany (6%), the United States (15%) and South Korea (1%).

“We expects NCIP and Bandar Cemerlang to be the main contributors to the company’s future earnings in the next few years,’’ said Gooi.

For the financial year ended Jan 31, 2011, Crescendo recorded RM39.43mil net profit on RM215.22mil revenue against RM19.35mil and RM160.32mil respectively in the previous financial year.

Iskandar gets RM95bil pledges

By ZAZALI MUSA
Tuesday August 16, 2011
http://biz.thestar.com.my

More investments are expected to be announced in the next few months, says Irda CEO

JOHOR BARU: Iskandar Malaysia attracted about RM95bil in committed investments from January to June 2011, according to Iskandar Regional Development Authority (Irda) chief executive officer Ismail Ibrahim.

This was more than double the cumulative RM47bil target for the five years up to 2010. From 2011 to 2015, Iskandar Malaysia is targeted to achieve RM73bil in investments.

“More good news (on investments) are coming to Iskandar but let Prime Minister Datuk Seri Najib Tun Razak or Mentri Besar Datuk Abdul Ghani Othman do the appropriate announcements,” Ismail added.

Iskandar will be focusing on potential investors from Asean, China, India, Japan and South Korea apart from Europe and the Middle East which were the main targets during its inception.

In line with the aspirations for a high-income economy, Iskandar would focus on acquiring quality investments.

Ismail expected more Singaporeans to invest in Iskandar as the small and medium enterprises were planning to relocate their operations due to the high cost of doing business in the republic.

Among the economic clusters under the comprehensive development plan are electrical and electronics, petrochemical and oleochemical, food and agro-processing, logistic and related services, tourism, health services, educational services, financial services, ICT and creative industries.

Ismail said Irda would conduct a study on the multiplier effect of major tourism-related projects such as the Johor Premium Outlet (JPO) and Legoland Theme Park.

The JPO, to open in November, is expected to receive four million visitors in its first year while one million visitors are expected to visit Legoland which will start operations by end-2012.

Irda has spent about RM339mil in the first half of the year from RM945mil in 2011 on infrastructure projects and related activities. The projects include the construction of the New Coastal Highway linking Johor Baru city centre to Nusajaya, river cleaning jobs, roads upgrading and public housing.

Ismail said RM214mil would be disbursed in the second half of 2011, bringing total spending to RM553mil.

He dismissed allegations that Irda did not have enough money to undertake infrastructure projects in Iskandar Malaysia.

“This has been going on even when Irda was helmed by the previous two CEOs. It will not stop but I know, my conscience is clear.” he said.

A great video for those interested in gold and silver investments

Malaysia eyes digital living

July 28th 2011
http://www.property-report.com


UEM Land Holdings Berhad and Iskander Investment Berhad are working together with Cisco to develop a 24,000 acre ‘smart’ digitally connected city, Nusajaya on the southwestern tip of the Malaysian peninsula.

The project is supported by the government which is working on a Digital Malaysia masterplan to create a more integrated, innovative and interconnected economy.

The plan is focused on information and communications technology (ICT) and services and the companies’ goal is to establish Nusajaya as a world-class benchmark for the design, building and operations of a sustainable, networked and efficient city.

“In addition to providing a solid foundation for businesses to thrive, integration of the latest technologies will [...] enhance the quality of life of residents,” said Datuk Syed Mohamed Syed Ibrahim, president and CEO of Iskandar Investment Berhad. “Families will enjoy the convenience of real-time access to public services from the comfort of their own homes such as medical consultations and video conferencing.”

Cisco aims to help the process with its Smart+Connected Communities architecture, which is based on the idea that integrated operations and communications can help homes, schools, transportation systems and more run more efficiently and provide better lifestyles for people.

Rising prices in Singapore has investors eyeing Malaysia

5th August 2011
http://www.property-report.com/

As real estate prices in Singapore continue to spiral upwards, investors of the city-state are beginning to turn their attention towards cheaper pastures. According to recent research from Property Guru, as many as 37 per cent of respondents in a survey of Singaporean investors said that they are considering investing in the housing market of northern neighbor Singapore, says the International Business Times.

The 37 per cent figure makes Malaysia the most popular international destination for Singaporean buyers, and with good reason. Speaking with Channel News Asia, director of Singapore Tenancy Management Tom O’Reilly praised the Malaysian property market. “Malaysia as a country has extremely strong fundamentals and the property market in Malaysia tends to be a lot less volatile than Singapore,” he said.

In addition to the 37 per cent eyeing Malaysia, nearly half of the study said they would consider not just investing, but outright purchasing property outside of Singapore.

M'sia's Iskandar plan may aid S'pore housing market

SINGAPORE: Malaysia's ambitious Iskandar development in southern Johor may have a spin-off effect that would eventually aid Singapore's crowded housing market.

It may even help cool prices, as foreign investment meets increased demand for services and homes.

A plan for seamless connectivity from Johor Baru, Malaysia, to Woodlands in Singapore by 2018, is an attractive allure for investors.

Funds are pouring in, in the hope the development will yield economic benefit.

Singapore has invested some US$153 million (RM 463 million) into the services, education and health sector of the Iskandar Malaysia development, and analysts say further down the line, this will have a positive impact on the Singapore economy.

CIMB Research economist Song Seng Wun said: "If we do have at our doorstep an increased pool of qualified knowledge based labour force, we may be able to tap on that pool, bring them to Singapore and add to Singapore's productivity growth prospect, going forward.

"So if those two investments in those two areas were to work out over the near term, I think it could lead to more significant investment from the Singapore side.

"So I think while the outlook is positive, there are still perhaps many hurdles along the way before we can say we are going to get a significant upgrade with regard to property being moved to a higher plain in Johor.

"That could mean the pressure on property in Singapore could be alleviated because there is certainly now a much more viable option in Johor as a result of the improved communication, logistic network, the whole landscape as an alternative for Singaporeans to base themselves in Johor either for home or for business."

Singapore has already implemented measures to cool booming property prices, and the government may get some help in calming the market, now that the Iskandar project is open for investment.

Credit Suisse analyst Tan Ting Min said Malaysia will benefit from stronger investments from Singapore while Singapore could operate out of Iskandar, which has good infrastructure, and relatively cheaper land and labour.

"Hence, we expect the land price arbitrage to narrow from the current estimated 1-to-16 ratio.

"How quickly this land price arbitrage narrows depends very much on how quickly Singaporeans adopt the idea of moving their manufacturing bases to Johor," Tan added.

"I think we are realistically talking about something that is still in the works, perhaps a decade or more before we can really talk about Johor as a real hinterland," Mr Song said.

KPMG corporate finance partner Vishal Sharma said: "I think in terms of the land price arbitrage I expect you would see the Iskandar land prices going up,

"I don't particularly envisage Singapore land prices... coming down so the arbitrage will narrow but I don't think that it is ever going to go away. But yes, I expect that the arbitrage is going to narrow."

-CNA/wk

Johor second half outlook positive

08 AUGUST 2011

THE outlook for the Johor property market is likely to remain positive in the second half of the year based on the number of property transactions taking place in the state.

Johor Real Estate and Housing Developers Association (Rehda) branch chairman Simon Heng says its members who took part in the Malaysia Property Expo (Mapex) events recorded a 15% increase in sales.

Some 33 developers who participated in the four-day event held in last November raked in RM331mil in sales over a one-month period and the figure jumped to about RM384mil in Mapex held in May 2011.

“Our members reported better sales in the first half of the year and expect the momentum to continue in the second half of 2011,'' Heng says in an interview with StarBizWeek.

The 30-day period starting from the first day of Mapex is the benchmark used by Rehda to determine the value of sales by participating developers. There were several contributing factors that drove demand for properties in the Johor property market this year especially in the Johor Baru district.

As the pulse of the state, the Johor Baru district has the highest concentration of Johor-based and non-Johor-based developers compared with other districts such as Batu Pahat, Kluang, Muar and Segamat.

Sweetener: Johor Baru’s close proximity with Singapore has attracted buyers to properties in Iskandar Malaysia.

Price uptrend

“Many property buyers in Johor Baru are anticipating prices of properties will rise and have decided to make their purchase before the prices escalate again,'' says Heng.

He says the economic recovery meant that consumer confidence was returning after a two-year low period following the global recession sparked off by the US subprime crisis and European financial woes in 2008 and 2009.

Iskandar Malaysia, Heng says, is another main factor that contributed to the positive growth in the Johor Baru property market as it helps to boost demand for houses in the area.

Prior to the inception of Iskandar Malaysia in November 2006, demand for high-end residential properties was best described as lacklustre, but now demand for such properties is on the uptrend. It is common to see developers with projects in Iskandar Malaysia selling their double-storey link-house from RM350,000 up to RM450,000 each. The units are selling like hot cakes.

“Shophouses are also selling well and reports from our members show that a lot of buyers from Kuala Lumpur are buying the shophouses as investment,'' he says.

Heng: ‘Shophouses are also selling well.’

Heng says many of the buyers consider prices of shophouses in Johor Baru are much lower than those in Kuala Lumpur and that they would make good investments in view of the development taking place within Iskandar Malaysia.

Iskandar Malaysia covers 2,219 sq km located in the southernmost part of Johor and divided into five flagship development zones the Johor Baru City Centre, Nusajaya, Eastern Gate Development, Western Gate Development and Senai-Kulai.

Heng says even prices of properties in the Senai-Kulai area, on the northern part of the Johor Baru district which was one described as “hulu” or remote, are going up due to better accessibility and connectivity. A single-storey terrace house at Bandar Putra Kulai by IOI Properties Bhd launched in June 2010 was priced RM130,000 each and sold for RM200,000 in June this year. The two-storey link house in the same housing scheme which was sold at RM189,00 a unit in June last year, was going for RM269,000 each in June this year.

“Iskandar Malaysia is now gaining momentum with many ongoing projects by both the public and the private sectors at several stages of development,'' says Heng.

He says the completion of the New Coastal Highway, the Eastern Dispersal Link Expressway and the Southern Link next year would improve accessibility and connectivity within Iskandar Malaysia; hence help to push demand for properties.

The Kempas-Tebrau, Mount Austin, Nusajaya and Kulaijaya areas are expected to be the property hot spots with several projects to be launched within the next one to two years.

Investment boost

Meanwhile, KGV International Property Consultants (M) Sdn Bhd director Samuel Tan Wee Cheng says the property sector constitutes 30% of the total committed investments while the manufacturing sector makes up about 40%.

He says although the Iskandar Regional Development Authority (Irda) wants the services sector to be the forefront, the manufacturing and the property sectors are still the main contributors to the cumulative investments in Iskandar Malaysia.

Irda chief executive officer Ismail Ibrahim says that as of June 2011, Iskandar Malaysia has received about RM95bil in committed investments, up from RM73bil in the first quarter of the year.

He says that while Iskandar Malaysia is a main factor that pushed demand for high-end properties, the stakeholders must ensure that buyers who could not afford them are not left out.

“It is good for developers to be able to sell high-end properties especially to foreigners but we need to have a balanced approach to ensure locals are not sidelined in the name of progress,'' says Tan.

Rising demand

He says demand for properties in Johor Baru was up in the first half of the year as many prospective buyers missed the opportunity to buy the properties at lower prices due to the 1998 and 2009 economic recession.

Typically, buying a property would be the last option most people would consider committing to during economic uncertainties given concerns over job security.

“The moment the economy starts to show signs of recovery, those who missed the boat earlier will invest in properties as properties are always a good hedge,'' he says.

Tan says confidence in Johor is now at all time high especially with the progress made by Iskandar Malaysia since its inception five years ago, although many are sceptical in the early days on whether it would take off successfully.

Tan says the property sector constitutes 30% of total committed investments.

He says that as the Government-backed economic growth corridor in the country, Iskandar Malaysia has strong backing from the Government in terms of funding for infrastructure development projects.

“Road upgrading and new road projects within Iskandar Malaysia will improve accessibility and connectivity and buyers will look at other locations which were previously unpopular,'' says Tan.

For instance, Rawang and Shah Alam in Selangor used to be out of the radar among property buyers in the Klang Valley but now, buyers are flocking there as better infrastructure has turned them into preferred locations.

Tan says foreign investors, who were largely interested in Singapore and the Klang Valley, are also gradually turning their gaze to Iskandar Malaysia. A definite sweetener is Johor Baru's close proximity with Singapore which has attracted buyers especially Singaporeans to properties in Iskandar Malaysia. “Like it or not as close neighbours, Johor and Singapore complement each other in economic activities due to a long history of economic interdependence,'' says Tan.

With the republic's investment arm Temasek Holdings showing its serious commitment to invest in Iskandar Malaysia, more Singapore property players such as Mapletree and CapitaLand would likely invest in the property sector here.

Tan hopes that the Government will take a proactive step to correct the misconception that Iskandar Malaysia is Nusajaya as there are other areas that need equal attention in terms of infrastructure projects and investment flows.

Iskandar Malaysia could rival KL for property investors

Homeguru.my
August 4th


As property prices in Singapore hit their peak, more investors from the Republic are venturing into overseas property, with Kuala Lumpur as one of their favourite destinations.

However, Khalil Adis, a property expert and regular contributor to HomeGuru, believes “there is a limit on how much capital appreciation properties in KL can achieve as the property market has become too saturated.”

He noted that the next frontier in property investment is Iskandar Malaysia.

Although still a relatively new and untested market, Khalil said, “Iskandar Malaysia will rival Kuala Lumpur and set the benchmark for real estate in Malaysia.”

Many property developers are now acquiring land parcels in Iskandar Malaysia for development and more property launches are also in the pipeline, including the launch of 1Medini Residences in Medini North this year and the completion of the new Coastal Highway.

Newcastle University Medicine Malaysia (NUMed) in EduCity has already opened its doors and three more developments — Netherlands Maritime Institute of Technology, the International Student Village and a stadium and sports complex — are set to open this year.

“Next year, LEGOLAND Malaysia will be officially launched, where a MRT station has already been planned next to it,” said Khalil.

In addition, the Singapore and Malaysian government have signed a deal to improve connectivity between Singapore and Iskandar Malaysia, which will boost investors’ confidence.

“Come 2018, this region will be buzzing once the planned Rapid Transit System (RTS) between Singapore and Johor Bahru, served by a single co-located CIQ facility, is completed.”

Recently, Singapore's Land Transport Authority (LTA) announced the extension of the country's East-West MRT line to Tuas, as well as the plan to build a station in Woodlands that will integrate the upcoming Thomson Line (TSL) with the proposed RTS link between Singapore and Johor Bahru.

“This will increase accessibility across the Johor-Singapore Causeway between Tuas, Woodlands and Johor Bahru,” Khalil said.

“With tourism and education as among the key drivers of the region’s economy, the Malaysian government has this time shown a lot more follow through to ensure the success of Iskandar Malaysia.”

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