High Speed Rail route

Finally it’s possible to cut travel time between#Singapore and #KualaLumpur (Bandar Malaysia terminus) to 90 minutes. Malaysia’s prime minister YAB. Dato’ Sri Mohd Najib Razak said the HSR link is “the most importance project” between the two countries, while Singapore’s prime ministerLeehsienloong said “ it will change the face of #Jurongand create #business opportunities for our people and business”. But where the funding is going to come or how is equity going to be divided between the two parties have yet to be finalised.

#MitsuiOutletPark: Largest Outlet Mall In Southeast Asia To Open In Sepang In May

Shopaholics and bargain hunters, lace up your walking shoes because a pandemonium is headed our way soon!

MFMA Development SDN. BHD. will open the Mitsui Outlet Park KLIA Sepang to the public with an exciting array of offerings ranging from luxury and branded products, fashion apparel and accessories, perfumes and cosmetics, chocolates and confectionery, kids wear and sportswear to household items and luggage as well as a scrumptious choice of gastronomic delights spanning over a commercial space of 24,000sqm under Phase 1 of the development.

Mitsui Outlet Park KLIA Sepang
Artist Impression of the Mitsui Outlet Park KLIA Sepang (Source: skyscrapercity)
It will be launched in Kuala Lumpur as the flagship mall of the Southeast Asia outlet market with a new brand concept which is developed and adapted to Malaysian customs based on Mitsui Fudosan’s know-how. The Mitsui Outlet Park KLIA Sepang plans to expand the facility in 2018 as well as 2021, and it will be the largest outlet mall in Southeast Asia, larger than any other of the company, including those in Japan, at approximately 250 stores and an entire floor space of about 44,000㎡.

It is part of the KLIA Aeropolis initiative spearheaded by Malaysia Airports in an effort to develop KLIA Sepang as an airport city.

The mall comes with a highly attractive concept where leading luxury brands and international brands, as well as popular Malaysian brands, Japanese brands’ off-season items, overstocked items, discontinued items, trial products, etc. are made readily available through the official route for greatly discounted outlet prices.

Mitsui Outlet Park KLIA Sepang Interior
Artist Impression of the Mitsui Outlet Park KLIA Sepang (Source: skyscrapercity)
On 30th May 2015, the Mitsui Outlet Park KLIA Sepang will be opened and gradually completed to approximately 130 stores by late of July, with a rich variety of food and beverages from around the world to meet the needs for tourists due to the location (nearby KLIA and klia2). It will offer a huge variety of more than 100 outlets of leading luxury brands such as Ermenegildo Zegna, and also promote authentic Japanese culture like Japanese traditional arts and crafts, tea, sake, and sushi through “JAPAN AVENUE” a brand new concept first of its kind in Malaysia. Locals and foreigners with a penchant for luxury brands will be spoilt for choice at the offerings made available throughout the year with attractive savings ranging from 30% to 70%.

Amongst the brands available are:

Polo Ralph Lauren Factory Outlet
Club 21 Collectibles (Paul Smith, Balenciaga, Lanvin, etc.)
BALLY
Aigner
Hugo Boss
BCBG MAXAZRIA
Karen Millen
Topshop
Topman
Miss Selfridge
Dorothy Perkins
SACOOR Outlet
BONIA
Timberland
Clarks
Samsonite
Isetan Outlet Store
ACE
asics Factory Outlet
adidas
Onitsuka Tiger
CITIZEN
And more, of course!

The Mitsui Outlet Park KLIA Sepang has aptly adopted the architectural design concept of “Paradise Village” that evokes a tropical ambiance. Natural light from the stylish skylights enriched with greenery creates a relaxing setting.

Embodying the local environment, the Mitsui Outlet Park KLIA Sepang is an enclosed 2-floor designed mall and fully equipped with air-conditioning to offer a comfortable shopping experience.

Artist Impression of the Mitsui Outlet Park KLIA Sepang (Source: skyscrapercity)
Artist Impression of the Mitsui Outlet Park KLIA Sepang (Source: skyscrapercity)
The Mitsui Outlet Park KLIA Sepang which is located very near KL International Airport is directly accessible from the highway and will offer ample parking of over 2,000 lots, banking services, facilities for the handicap, baby nursing and changing room, first aid facilities, strollers and wheelchairs for loan.

Additionally, free shuttle bus service to KLIA and klia2 as well as bus services from Kuala Lumpur and major cities such as Ipoh and Genting to further ease accessibility to the Mitsui Outlet Park KLIA Sepang will be provided.

Specifically to facilitate travelers who would like to enjoy their shopping experience within a limited amount of time before taking off, the Mitsui Outlet Park KLIA Sepang provides Flight Information Display System (FIDS) in the outlet mall for checking flight information without leaving the premises, flight SITA check-in KIOSK services and free baggage storage service to promote hands-free shopping. 

Penang LRT map route masterplan

The Penang Transport Master Plan will tackle traffic woes on the island and is expected to start in a couple of years.

It involves massive infrastructure works and a comprehensive public transport system incorporating light rail transit (LRT), trams, buses and catamarans, expanding roads and building new highways.

It also includes an ambitious undersea tunnel linking George Town and Butterworth.

Updated NEWS on Penang Integrated Transport Masterplan

April 16, 2015: The Star “First LRT project in Penang next year”

GEORGE TOWN: Penang is set to get its maiden LRT project – a 17.5km elevated stretch linking Komtar with the Penang International Airport.

With construction slated to begin next year, the RM4.5bil project is part of a package of solutions for an island that has long been choking on its traffic.

The LRT project – expected to be awarded in June – will mark the realisation of the long-awaited implementation of the RM27bil Penang Transport Master Plan (PTMP), which also includes a 25km expressway linking Bayan Lepas and Tanjung Bungah.

According to reliable sources, Gamuda Bhd, IJM Corp Bhd, and a Chinese company have been shortlisted to undertake the projects, the bulk of which would be funded through land reclamation rights in the state.

The LRT and new expressway will be built using the Project Delivery Partner (PDP) concept, where the PDP will step in to resolve problems should parts of the construction fail to meet construction criteria.

In Penang’s case, should either one of the Malaysian companies get the award, it would have to partner with the Chinese company, especially in the construction of the LRT project.

It would be likewise should the Chinese company win the contract.

Six consortia, including three foreign-Malaysian partnerships as well as three Malaysian public listed companies, have put in their bids following Penang’s invitation last August to qualified companies to serve as the PDP for the PTMP.

The payoff for building the LRT project is the right to reclaim 1,618ha at either the southern part of the island, of which about 485ha will be used for the future expansion of the airport and to expand the Free Industrial Zone, or at a 607ha stretch between the Penang Bridge and the mouth of Sungai Pinang, an area popularly known as the Middle Bank.

Penang Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow had said the appointed PDP must be a reliable partner to guarantee the success of the projects.

“They will have to oversee all the projects estimated at RM27bil. The costs cover highway infrastructure (RM16bil) and public transport (RM9bil), while the institutional costs amount to RM905mil,” he said, adding that Penang alone would foot some RM10bil of the total cost.

In a subsequent interview, Chow said the LRT line – which will be supported by a revamped stage bus system and trams – would be a priority, with completion targeted for five to six years.

In return for their role in realising the state transport master plan, the Chinese company will get to reclaim about 566ha in Seberang Prai, of which 161.8ha is located near the North Butterworth Container Terminal and 404ha near Bagan.

It is learnt that it will take a year to get necessary approvals for the reclamation works,

Chow said some of the projects would fall under the jurisdiction of the Federal Government.

“The RM10bil allocation from the state does not include the RM6.3bil for the undersea tunnel and three expressway projects,” he said.

The 6.5km road tunnel is planned to run from Gurney Drive to Bagan Ajam in Butterworth. The expressways include a 4.2km bypass from Persiaran Gurney to Persiaran Tun Dr Lim Chong Eu, a 4.6km expressway and by-pass from Tun Dr Lim Chong Eu Expressway to Bandar Baru Air Itam and a four-lane 12km road linking Tanjung Bungah with Teluk Bahang

Refinance

Surprise in Malaysia’s Budget: Revenue Growth Beats Spending

Zeti Akhtar Aziz, governor of the Bank Negara Malaysia, said last week the fiscal position is improving and the ringgit is undervalued even as growth prospects weaken, in a rebuttal to Fitch Ratings and investors who have soured on the country. Photographer: Dario Pignatelli/Bloomberg
There are several reasons Malaysia’s ringgit was the worst performing currency in Asia last quarter -- plunging oil prices that hurt the budget, loan repayment delays at state investment company 1Malaysia Development Bhd. Here’s one measure that shows it may not be all that bad.
A Bloomberg Intelligence analysis of Asian fiscal data shows that Malaysia’s government revenue growth, while hurt by lower crude prices, is still outpacing the increase in state spending after adjusting for inflation.
“It looks like they tightened spending in anticipation of the hit to revenues from the oil and gas sector -- perhaps even by a tad more than they needed to,” said Tamara Henderson, an economist with Bloomberg Intelligence who analyzes the data in the Asia Fiscal Monitor.

Malaysian central bank Governor Zeti Akhtar Aziz said last week the fiscal position is improving and the ringgit is undervalued even as growth prospects weaken, in a rebuttal to Fitch Ratings and investors who have soured on the country. The ringgit climbed 1.2 percent in Kuala Lumpur Friday, the biggest gainer among 11 Asian currencies tracked by Bloomberg.
Annualized government revenue growth after adjustment for inflation in the 12 months to February exceeds expenditure expansion by almost 4 percentage points in Malaysia, the Bloomberg calculations show. That’s a smaller margin than Hong Kong’s about 12 points, yet better than South Korea’s shortfall of 2.7 points.
Whether that’s good enough for investors remains to be seen. As the U.S. prepares to raise interest rates, HSBC Holdings Plc economist Frederic Neumann says Malaysia stands out as a market that looks more vulnerable, with the country’s local financial risks and short-term external debt as a share of reserves climbing since 2013.

First LRT project in Penang next year

  GEORGE TOWN: Penang is set to get its maiden LRT project – a 17.5km elevated stretch linking Komtar with the Penang International Airport.

With construction slated to begin next year, the RM4.5bil project is part of a package of solutions for an island that has long been choking on its traffic.

The LRT project – expected to be awarded in June – will mark the realisation of the long-awaited implementation of the RM27bil Penang Transport Master Plan (PTMP), which also includes a 25km expressway linking Bayan Lepas and Tanjung Bungah.

According to reliable sources, Gamuda Bhd, IJM Corp Bhd, and a Chinese company have been shortlisted to undertake the projects, the bulk of which would be funded through land reclamation rights in the state.

The LRT and new expressway will be built using the Project Delivery Partner (PDP) concept, where the PDP will step in to resolve problems should parts of the construction fail to meet construction criteria.

In Penang’s case, should either one of the Malaysian companies get the award, it would have to partner with the Chinese company, especially in the construction of the LRT project.

It would be likewise should the Chinese company win the contract.

Six consortia, including three foreign-Malaysian partnerships as well as three Malaysian public listed companies, have put in their bids following Penang’s invitation last August to qualified companies to serve as the PDP for the PTMP.

The payoff for building the LRT project is the right to reclaim 1,618ha at either the southern part of the island, of which about 485ha will be used for the future expansion of the airport and to expand the Free Industrial Zone, or at a 607ha stretch between the Penang Bridge and the mouth of Sungai Pinang, an area popularly known as the Middle Bank.

Penang Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow had said the appointed PDP must be a reliable partner to guarantee the success of the projects.

Satellite view of Proposed Cable Car
“They will have to oversee all the projects estimated at RM27bil. The costs cover highway infrastructure (RM16bil) and public transport (RM9bil), while the institutional costs amount to RM905mil,” he said, adding that Penang alone would foot some RM10bil of the total cost.

In a subsequent interview, Chow said the LRT line – which will be supported by a revamped stage bus system and trams – would be a priority, with completion targeted for five to six years.

In return for their role in realising the state transport master plan, the Chinese company will get to reclaim about 566ha in Seberang Prai, of which 161.8ha is located near the North Butterworth Container Terminal and 404ha near Bagan.

It is learnt that it will take a year to get necessary approvals for the reclamation works,

Chow said some of the projects would fall under the jurisdiction of the Federal Government.

“The RM10bil allocation from the state does not include the RM6.3bil for the undersea tunnel and three expressway projects,” he said.

The 6.5km road tunnel is planned to run from Gurney Drive to Bagan Ajam in Butterworth. The expressways include a 4.2km bypass from Persiaran Gurney to Persiaran Tun Dr Lim Chong Eu, a 4.6km expressway and by-pass from Tun Dr Lim Chong Eu Expressway to Bandar Baru Air Itam and a four-lane 12km road linking Tanjung Bungah with Teluk Bahang.

Expatistan, cost of living comparisons

Cost of living in Johor Bahru (Malaysia) is 63% cheaper than in Singapore (Singapore)
WARNING!  This comparison is based on only a few data points. At this point it is only a guess. It is based on 13,423 prices entered by 1,829 different people.

RM38.4b High Speed Rail Project Approved

Lawmakers last Friday approved the RM38.4 billion high speed rail (HSR) project which will connect Malaysia and Singapore and drive growth in the Iskandar Malaysia economic corridor.

The government now has the mandate and funding needed to set up MyHSR Corp Sdn Bhd, the company that will undertake the construction of the system. As an initial investment, Ministry of Finance Inc will invest in 10 million shares of MyHSR Corp for RM1 per share.

Construction is expected to begin in 2016, with services operational by 2020. As development of the Iskandar Malaysia economic corridor enters its next stage, the case for the proposed HSR has never been stronger.

At the recent launch of the second phase of the RM42 billion gross development value Gerbang Nusajaya, touted as the gateway township to the region due to its proximity to Singapore, its developers and the regional authority made presentations on the HSR and underscored how it would drive occupation and development in the region.

“The HSR will have a significant impact on population growth in Iskandar,” says DTZ Malaysia consultancy and research head Brian Koh. Within Gerbang Nusajaya itself, Koh predicts a 44% increase in the township’s population if the HSR is completed.

“The key success factor for Iskandar is connectivity. The HSR must happen to ensure Iskandar continues to grow, not just from an economic perspective, but also from the stakeholder’s perspective,” said Datuk Ismail Ibrahim, CEO of the Iskandar Regional Development Authority.

He said the HSR would be complemented with an efficient bus rapid transit (BRT) system, which he said would be faster to implement and make more fiscal sense in the region.

“But by 2025, if we reached a certain critical point (in demand), we might want to upgrade the BRT to MRT (mass rapid transit,” he said.

A property analyst told The Malaysian Reserve the HSR could entice younger workers to stay in Iskandar and travel home to other states or Singapore during the holidays or weekends.

“The HSR would fit in with the government’s plans to increase the population of Johor, which is the key factor in driving up the state’s economy,” she says.

“It could be said the success of Iskandar does hinge on the rail project.” The proposed project will feature trains that travel at speeds of up to 250 km/h and will transport passengers from Kuala Lumpur to Singapore in just 90 minutes, with stops in Putrajaya, Negri Sembilan, Malacca and Johor.

Said to be South-East Asia’s most ambitious infrastructure project, the HSR is expected to unlock the full potential of Iskandar, which is expected to see full completion in 2025. Last month, Japan’s Prime Minister Shinzo Abe told Malaysia’s Deputy Prime Minister Tan Sri Muhiyuddin Yassin that Japanese rail firms were very interested in getting involved in the project.

Japan’s famed Shinkansen network features train speeds of up to 320km/h, transporting more than five billion passengers throughout its operational service, and Muhiyuddin has reportedly expressed the government’s interest in using Japanese technology for the project.

BRT

Bus Rapid Transit (BRT)

1. A 34km Bus Rapid Transit (BRT) route has been planned between Pasar Seni, Kuala Lumpur, and Klang.
2. The dedicated bus lane would pass the Federal Highway and is estimated to cost RM1bil.
3. There would be 25 stops on the route that will pass through the jurisdictions of Kuala Lumpur City Hall, Petaling Jaya City Council, Shah Alam City Council, Subang Jaya Municipal Council and Klang Municipal Council.
4. The project would benefit some 1.5mil people living along the route and offer more public transport options for Klang Valley residents.
5. “This route has a high travel demand and we want to ease congestion on the Federal Highway.

Buying a house: cost and affordability calculation

How much is really needed to qualify for affordable housing?

YOU may find it hard to believe. Just four to five years ago, it was possible to own a decent-sized, quality condominium unit in urban centres like Kuala Lumpur, Petaling Jaya, Johor Baru and Penang for approximately RM200,000. They were in fact, quite common.

From 2010 up till 2012, the Government had considered the price of RM220,000 to be within the “affordable” housing range. This was evident when it first launched the My First Home Scheme or Skim Rumah Pertamaku (SRP) for houses priced up to RM220,000. However, towards the tail-end of 2012, it was becoming increasingly evident that houses hovering around that price was becoming more of a rarity.

Genuine first-time house buyers were gradually finding themselves being priced out of the market.

Recognising the changing property price landscape, the Government in 2013 bumped the maximum price range for SRP eligibility to RM400,000.

The move garnered ridicule from both sides of the spectrum for different reasons. On one hand, lower income groups found it laughable that a price tag of RM400,000 for a house could even be considered “affordable” as it was far beyond their reach.

On the other hand, the younger and more urbane groups who were striving to purchase their first home derided the ceiling price of RM400,000 as being out of reach. Their contention was that prices for an acceptable standard of housing was already priced beyond RM400,000.

If anything, the Government’s efforts at trying to determine what is “affordable” shows us that it should be assessed based on our personal situation.

And, what might be affordable to you today may no longer provide as comparable a standard of living to what was affordable to you five years ago. Regardless of what is affordable to you, how much is really needed to purchase an “affordable” house? Let us examine house prices ranging from RM100,000 to RM600,000.

Affordability of initial entry costs

Firstly, there are the entry costs of purchasing a house. Table 1 illustrates the kind of upfront cash one must have to purchase a house in a given price range.

There is the standard 10% down payment, along with the rest of the legal fees and stamp duties which follow a scheduled fee structure.

If the entry costs above look discouraging, fret not. There is hope yet. If you are a first-time buyer, there are certain schemes and methods that you can take advantage of to ease your purchasing burden.

These include (Refer to Table 2):

1) A 50% stamp duty discount on the Sales and Purchase Agreement (SPA) for properties priced up to RM400,000.

2) SRP, which allows you to take a 100% loan for properties priced up to RM400,000, negating the need to pay the initial 10% down payment. Even if one does not qualify for the above schemes, there is still the EPF (Employees Provident Fund) or KWSP’s (Kumpulan Wang Simpanan Pekerja) scheme that allows you to withdraw money from your EPF Account II to help pay for the down payment of the house.

Affordability of loan

Even if one can afford the initial cash outlay to purchase a house, one must still be able to qualify for a mortgage loan to proceed with the purchase. When assessing whether a housing loan is affordable, there are two criteria that must be considered.

Firstly, do you meet the minimum acceptable level of income you must have before a bank can even approve your housing loan?

Secondly, even if you do qualify for the home loan, after paying off your monthly instalments, realistically, could you get by on the remaining amount?

It would be unwise to enter into a home purchase if your answer to either of the above is “No”.

Table 3 indicates the estimated minimum level of household income one must have to qualify for a loan of the given amount in the year 2014. It also shows clearly the estimated monthly instalments one must pay. These calculations have not even taken into consideration any other commitments that you may have.

Conclusion

While your personal financial situation may be unique, the costs associated with the purchase of a home are somewhat set according to price.

The best way to know what you can afford is to measure your personal finances against the required costs.

- Loanstreet

Selling Cost

Bumi lot

This is an entry i shall dedicated on how i plan to dispose of one of  my bumi units i bought in Horizon Hills to a foreigner.

So, this is the current state of my bumi units:

1. Status: VP February 2015.
2. Title: Individual (Adely Bin Kassim), previously Master Title (Horizon Hills Dev Sdn Bhd)
3. Date of purchase: SPA signed on 6 Sept 2013.

Summary of procedure:

So now, what we have to do is to sign a conditional SPA* and to apply for consent to transfer by providing compelling enough reasons (i.e. there is no demand for the lots following a year of advertising) to the Land Office.

Strategy:
If the buyer still wants our unit, even after explanation about bumi units and the consent to apply, we can propose to the buyer of renting the unit first in waiting for the application to be approved because the consent application can take a long time.

Current steps to be taken:

1. Advertisement on newspaper. DONE - 1/9/2014 to 6/9/2014
1. Made by lawfirm, fee is around RM150.
2. Sign conditional SPA
1. Fee is RM6000 to lawfirm - paid after consent approved, usually borne by seller.
2. The validity of the SPA is one year to which the buyer cant back off during this period. After a year, if the buyer still wants to continue with the application, a new SPA can be signed.
3. Apply consent to Land Office
1. Total cost is RM13000 to lawfirm - usually borne by seller, but can also be made from both sides.
2. Initial payment is RM2000
1. RM1000 lawfirm fee + RM1000 for registration at Land office
2. To be made when signing the SPA.
3. The rest RM11000, to be paid once the consent approved.
4. The fastest period to get the result is 6 months and it can go to more than a year.

* conditional SPA is SPA with special clauses since we have yet to receive consent from Land Office.

Webinar Feb 2015 with Faizul Ridzuan

RM failing – Blessing to property market?

1.  RM falling: Good for foreigner to start buying here.

Falling oil-prices

1. 2009: Global economic crisis (below USD40)
2. Buying opportunity – oil, also for houses.
3. We buy more than we sell.
4.  Effect of lower oil price is not too drastic to our economy

1MDB a Time-bomb?

1. There will be an effect, but not as big as claimed. Not systematic risk that could send us to recession.

Msia overall performance

1. Goldman sachs Endorse Msia as one of gud place to invest in.
2. Bloomberg’s top 20 growing economies
3.  World economic forum: no6. Not too bad.
4. Transparency international corruption index: improved.
5.  Rm236bilion approved in 2014 creating hundred thousands of new jobs
6. Tourism grew by 10% (2013-2014)
7.   International website – a new global retirement option

indicators:

1. Unemployment gone up to 3% (jan 2015) from 2.7%
2.  NPL for residential drops to 1.29% -Good
3. Consumer deposits in dec 2008 was rm685bil to rm1.06trilion in dec 2014. Deposit up – Good.
4. Loan to deposit ratio is better today VS 1997 at average 0.9
5.  Interest rates: BLR was highest during our crisis 1998 (12.27%). Has stabilized since.

Loans

1.  Loan application: reduce from 2013(peak) to 2014. Interest in prop market drop. But not a big drop compared to 2012.
2.  Loan approved: overall reduce but increased for commercial. (2014-2013)
3. Loan approval increased in percentage from 2012 to 2014. (residential and commercial) (maybe bankers filter before they even submit)

Property fraud and misspelling?

1.  GRR- no benefit in doing GRR, some developer inflate their price bcoz of this so we are paying more.. (guaranteed rental returns)
2. Comparing new launch benchmark is not a good way. Compare against subsale and new development.
3. Fake, inflating tenancies – avoid.
4. SOVO, SOFO... etc2 can be used as residential and uses HDA-compliant schedule H. à u can’t, it’s not permit by the law. Check with HDA to avoid paying too much interest. Disbursement schedule for residential is protected, not for commercial.

What to look for in 2015?

1. Target development tht is recently completed especially if you know they gave high rebates or DIBS previously.
2. Fairer deals in the subsale market.
3. Tier-1 properties (location friendly) best bet to buy property!! (premium areas, where expats are familiar with, not like putrajaya)
4. Buy mass market properties, not high end.

What property will suffer in 2015?

1.  Middle upper and high end properties which are not located in tier 1 locations
2. Dibs developments (they don’t have much holding power, they took up DIBS, they are mostly investor, flippers..)
3. High rebate or GRR developments that was sold at an inflated price. à not many ppl willing to support the inflated price.
4.  Properties in newer areas where there are plenty of supply. à ppl’s sentiment..

Investing guides for 2015

1. Look at price, supply and type of product.
2. Look at facts, do own research.
3. Knowing what to do after buy.
4. Property VP this year? – learn to be contrarian.
5. Good year to shop for bargains if you know where to look.

GST impact

Not much impact for residential. Commercial yes. Almost zero for subsale

Extra notes
near petrol station - NOT GOOD.

Need investment advise?

faizul@farcapital.com.my or writetofaizul@gmail.com

1 on 1 sessions – call Hana 011-15088875 (nurfarhana@farcapital.com.my)

Johor Projects facing Singapore

Recent changes to the vehicle entry permit, toll charges and the minimum property purchase price of RM1 million for foreigners are also a put-off, he added.

Source: http://business.asiaone.com/property/news/housing-glut-worries-over-johors-mega-projects#xtor=CS1-2