THE NEW GOLDEN AGE OF PENANG The Pearl of the Orient rides a new wave of growth and economic transformation __________________
BEHIND THE SCENES E&O Passions chats with Dato’ Lee Kah Choon, Special Advisor to the Chief Minister of Penang __________________
E&O PULSE News, updates and happenings
APRIL - JUNE 2015 A newsletter of E&O Property (Singapore) Pte. Ltd. Copyright 2015 Eastern & Oriental Berhad All rights reserved. Address: 1 Raffles Link #01-01 North Tower, Singapore 039393 T: +65 6337 1680 | E: eospore@easternandoriental.com | www.easternandoriental.com
| SPOTLIGHT
the new
GOLDEN A GE of
PENANG
Once a British colony that became one of the foremost ports in Asia in its early years, Penang is now riding a new wave of growth and economic transformation to bring out its best as an international city while retaining its rich heritage and cultural splendour.
The 2008 inscription of George Town, the capital
Most of all, feel it in the unique island rhythm of
of Penang, as a UNESCO World Heritage Site
Penang living—a pace that is perfectly in tune
speaks volumes about the island as a celebration
with the ebb and flow of the sea. In fact, Penang
of colours, cultures and colonial charm that
is Malaysia’s most visited tourist destination and
stretches back over two centuries.
a popular tropical haven for a second home or retirement destination.
Wander through Penang’s bustling streets today and you will discover it is alive and thriving in
The Penang International Airport was recently
almost every aspect of everyday life. Hear it in
expanded as tourist arrivals increased from 4.8
the speech of the locals—a symphony of Malay,
million (2012) to 5.3 million (2013). Tourist
Chinese,
arrivals is estimated to have hit 5.5 million in
Tamil
and
English—all
mingled
together. Taste it in the street-hawker fare that 2
is famous around the world.
2014.
SPOTLIGHT |
With Malaysia described by some as “medical travel’s best-kept secret,” Penang is gaining popularity as a top medical tourism destination
A vision springing to life A clear indicator of the confidence in Penang’s prospects is the entry of several major MNCs into the island’s economy. Citigroup has opened its second
transaction
services
hub
in
Penang,
reportedly its largest regional trade and cash processing centre, handling around 20 million transactions. Wilmar International, Asia’s leading agribusiness group, has chosen Penang as the location of its first global business services centre. SanDisk Corp, a leading flash memory storage manufacturer headquartered in California, has recently set up a RM1.2 billion manufacturing plant in Penang while Japanese electronics and ceramics producer Ibiden Co. Ltd. is increasing The legendary Eastern & Oriental Hotel in George Town, Penang — the hotel celebrates its 130th anniversary this year
production at its second building in Penang Science Park by investing some RM1.3 billion. It was also recently announced that computer
A leader in medical tourism
peripherals manufacturer Seagate will invest With Malaysia described by some as “medical
RM1.05 billion to build a new plant in Penang
travel’s best-kept secret,” Penang is gaining
while furniture giant Ikea has confirmed its
popularity as a top medical tourism destination,
entry with an RM8 billion project.
accounting for 60% of the country’s total Temasek
foreign medical tourists in 2011.
of
Singapore
has
also
signed
a
memorandum of understanding with Penang Its highly trained medical professionals and
Development
modern
Penang
facilities
offer
medical
care
at
Corporation
International
to
develop
Technology
Park
the and
affordable prices, as compared to destinations
Business Process Outsourcing Prime at a gross
elsewhere in the region.
development value of RM11.3 billion. 3
| SPOTLIGHT
Other companies that have invested in Penang
This trend is expected to stay vibrant on the back
in recent years include Bose, an American audio
of rising affluence, an infrastructure boom, an
equipment manufacturer; VAT Manufacturing, a
inflow of high-impact investments and sound
Swiss vacuum valve manufacturer; and Barkath
government policies.
Co-Ro, a food manufacturer of brands such as Added to this is Penang’s natural beauty,
Sunquick and Hacks.
tropical weather and historical significance,
Investing in the future of Penang
which
make
it
one
of
the
world’s
top
destinations to live and invest in. This has been As more investments flow into Penang and more people move there, they will need safe places to live, work, and commute. Pent-up demand on the
island
remains
strong
and
endorsed by ECA International, which voted Penang as one of Asia’s most liveable cities in 2010, 2011 and 2012.
residential
property prices are expected to remain firm due
Prime living in Penang
to scarcity of land. By 2030, Penang’s population is projected to rise to between 2 million and 2.2
Seri Tanjung Pinang—a world-class masterplanned
million, from around the current community of
development
1.6 million.
developer Eastern & Oriental Berhad (E&O)—
by
premier
lifestyle
property
pays tribute to the heritage of Penang with its Statistics show that in 2013, Penang was ranked as
stylish, Straits-eclectic homes. It boasts seafront
the third largest property market in Malaysia,
living at a prime address that is favoured by
accounting for 9% of total transactions in the
both locals and expatriates. Today, it is home to
country. A Credit Suisse report in November 2014
a vibrant community of more than 20 nationalities.
highlighted that the Penang property market has grown by 19% since the first quarter of 2013,
Sitting at the final and finest plot at Seri
exceeding the national growth rate of 12%.
Tanjung Pinang is 18 East at Andaman, the latest E&O property gem that is both a home and a resort. From its fantastic location by the sea, dwellers get to enjoy the vista of the ocean, the hills or the scenic skyline of Gurney Drive. At the heart of Andaman is its spectacular 4.5-acre waterpark amid 7 acres of green—that is a luxury in land-scarce Penang and by any standards. Being a part of the Seri Tanjung Pinang community, Andaman residents are presented with
endless
possibilities
for
leisure
and
recreation. The seaside promenade is ideal for walks, jogging and cycling while a 10-minute “Little Children on a Bicycle” — famous street art mural by Lithuanian artist Ernest Zacharevic in George Town, Penang. The project, known as Mirrors George Town, was commissioned in conjunction with George Town Festival 2012. 4
stroll takes them to the vibrant Straits Quay, Penang’s first seafront retail marina, bringing to life the concept of living by the sea.
SPOTLIGHT |
Enjoy panoramic views of the Andaman Sea from the comfort of your home at 18 East
This beautifully designed complex is also where
With the island’s transformation and growth
residents will be able to shop, dine and be
gaining momentum, the opportune time to
entertained. It is also home to the Performing
invest in a Penang property is now. 18 East at
Arts Centre of Penang, the northern region’s
Andaman—those who know, insist on E&O.
leading hub for the arts. Residents of 18 East—the most premium tower in the Andaman series—will enjoy a private lobby concept with personal concierge services. Further lending a touch of exclusivity, 18 East residents will receive the Premier Card, which www.quaysideresort.com
entitles them to food and beverage promotions at the iconic E&O Hotel and the boutique
References:
beachfront Lone Pine Hotel in Penang; discounts
“Speech By Penang Chief Minister Lim Guan Eng In The ASLI Conference In Singapore On Penang Investment Opportunities.” www.limguaneng.com, 26 November 2012.
from selected retail stores at Straits Quay;
“Bringing out the best of Penang.” Sunday Star, 20 April 2014.
exclusive invitations to luxury lifestyle events;
“Citigroup Transaction Services Malaysia opens second hub in Penang.” Citigroup Inc., 2 July 2013.
and preferential pricing on E&O properties
“The official opening of Wilmar Global Business Services Sdn Bhd.” Penang State Government, 6 September 2013.
(subject to terms and conditions).
“California's SanDisk sets up RM1.2billion Penang plant.” AsiaOne.com, 9 June 2014. “Japan's Ibiden invests RM1.3bil in M'sia, creates 1,500 new jobs.” The Star, 15 November 2013.
Security at Andaman at Quayside is among the
“Hot spots emerge as Penang property market stays vibrant.” The Edge Malaysia, 5 January 2015, p. S10-S11.
most sophisticated in the region. Designed by GDSS
“Seagate invests RM1 billion on new Penang plant.” The Malaysian Insider, 9 August 2014.
Security Consultants, it employs a multi-layered
“Penang government, Temasek and EDIS inks MOU to develop BPO Prime and Penang International Technology Park (PITP).” EDI Singapore, 22 May 2014.
zonal system enhanced by fibre-optic fences, 24-
“Growing at a fast clip.” The Edge Malaysia, 5 January 2015, p. S2.
hour CCTV cameras and motion detectors, all
“Speech by Penang Chief Minister Lim Guan Eng in Singapore at the Penang Investment Opportunities.“ www.limguaneng.com, 14 October 2014.
monitored by a state-of-the-art control centre.
“ECA names Penang ‘most liveable city’ for second year running.” The Malaysian Insider, 23 April 2012.
5
| BEHIND THE SCENES
PENANG
Transforming E&O Passions is pleased to chat with Dato’ Lee Kah Choon in our special feature on Penang. A man of many hats, Dato’ Lee is Special Advisor to the Chief Minister of Penang. He sits on the board of various state governmentlinked corporations and private companies. He is also Senior Advisor on China-ASEAN affairs to Zico RMC Pte Ltd, a Singapore-based multidiscipline advisory company.
What are some of the changes you have seen in Penang in the last decade? Penang has always been one of the most interesting states in
You will see it in the traditional
A number of heritage tours
Malaysia
shophouses, which I see as a
have also been
history, thriving cultural scene
symbol
and
enhance tourists’ experience in
and strong NGO (non-governmental
rebirth. Before, they were left
Penang — trishaw rides within
organisation) activism.
derelict
heritage sites, tours of the
with
sense
of
of
perseverance
and
unwanted;
but
offered to
because society today is more
historical
The pace of development has
aware
and
Armenian Street, clan houses
picked up in the past few years
architectural significance, many
and Acheen Street, tour of
but I’ve always been amazed at
have been given a new lease of
Cheong Fatt Tze Mansion and
how heritage has endured and,
life
Little India Spice trail.
in
flourishing market for artists,
fact,
rejuvenation. 62
its
experienced
a
of
and
its
are
historic
venues
to
a
F&B outlets and boutique hotels.
enclave
around
BEHIND THE SCENES |
organised living heritage trails of
What is Penang’s vision and what would it take to get there?
George Town with self-guided
Despite our size, we aim to be
tours covering traditional trades
a vibrant, open and free society
and traditional foods. All these
in the heart of Southeast Asia,
add to the heritage factor that
with
makes Penang famous.
capable of delivering clean,
The
Penang
Heritage
Trust
first-world
democratic The Penang skyline has also changed. It started in the 1990s when industrialisation, fast-paced development population
and
growth
transformed
rapid radically
Penang’s
urban
geography. New housing estates
and
gov e rna nce . Lausanne
institutions
in
effective
Mu ch
li ke
Switzerland
or
Perth in Australia, we aim to create
a
sense
belonging
of
and
pride, shared
ownership in the future of our communities, state and nation.
sprung up in all parts of the island, replacing plantations and
To immediately improve the
vegetable farms. This trend has
quality of life for many people,
continued due to rising affluence,
especially work-life balance, I
a pick-up in business activity and
cannot emphasise enough the
growing investments.
priority
What would you say are some of the challenges Penang is currently facing?
of
upgrading
current infrastructure (roads/ port/airport).
I’m
us
but
with
the
confident
that’s the first step towards a better life and future.
We have many things going for
our
If you could share with an overseas visitor about Penang’s transformation, which three main things come to mind? I’m
extremely proud of our
heritage conservation. Arts and culture contribute directly to our sense of identity. Penang’s living heritage finds expression through a combination of architecture, ethnic
quarters,
languages,
festivals, dances, costumes, art, music, food and lifestyles. To celebrate this, the annual George Town Festival is a month -long carnival of arts featuring music, theatre, art, dance and film. I would encourage the visitor to stay for the festivities! I
would
also
highlight
our
industrial advancement. This is proven
with
the
increasing
investments of many MNCs.
increasing
number of people who choose to visit, work and live in Penang, our infrastructure needs to keep pace. We currently have free shuttle buses
and
park-and-ride
schemes as stopgap measures. The state government is actively implementing
infrastructure
projects via the RM27 billion Penang Transport Master Plan (PTMP) to revamp the transport system for the long-term.
The Penang Bridge is the second-longest bridge in Malaysia and the fifth-longest in Southeast Asia by total length, with a length over water of 8.4 kilometres 7
| BEHIND THE SCENES
In the late 1990s, electrical and
Finally, I would talk about our
electronics growth slowed down
relentl ess
and the situation worsened in the
protection that we give to our
2000s
natural
with
the
diversion
of
envi ronmental
resources.
Due
to
What do you think is the winning factor that makes Penang a vibrant property/ retirement hot spot in Asia?
foreign direct investments (FDI) to
limited land on Penang island,
It is a perfect combination of
other emerging countries in Asia.
development has been pushed
hospitable weather, competitive
further uphill and into the sea,
cost of living, good quality of life as
From the late 2000s, however,
resulting
well as accessible and affordable
through effective programmes by
ecologically
the state government and local
hillslope treatment and coastal
agencies to promote high-value/
reclamation.
in
the
need
for
sustainable
healthcare support system.
What is the one achievement you are most proud of?
value-added industries and create an enabling business and innovative
From
cultivating
environment, MNCs started moving
habits such as “no free plastic
I would say being
up the value chain by launching
bag” campaign to developing
involved
R&D centres and locating their
an
transformation of Penang into
shared service centres for global
renewal strategy, we’re always
a
operations in Penang. This is a story
thinking ahead of what we can
investors, tourists, retirees and
worth retelling as it demonstrates
do to enhance the public realm
residents.
our resilience, which has resulted in
and harness the potential of
this exceptional turnaround.
our historic quarters.
urban
day-to-day
regeneration
and
In my work with InvestPenang,
in
location
the
of
directly successful
choice
If your overseas friends were visiting Penang for the first time, which three places would you take them to? The three places would be: 1) the heritage enclave to get a sense of our past; 2) the Penang National Park (the first protected area legally gazetted under Malaysia's National Park Act of 1980) to get an appreciation of our natural resources; and 3) Penang Hill for a sense of our present and possibly, our future.
Favourite street food: Pan Mee (ban mian), Ban Chang Kuih and Nasi Melayu
Favourite place to hang out in Penang: I enjoy the kopitiam experience so you will find me at the local coffeeshops!
8
for
E&O PULSE |
E&O acquires Hammersmith site in London E&O has acquired a 1.2-acre freehold site in Hammersmith, West London, at the purchase price of RM308.9 million (£57 million). Prominently located along the principal road connecting Central London to Heathrow Airport, the site is currently occupied by two connected prime office buildings: the 11-storey Thames Tower and the 15-storey Landmark House, which were constructed in the 1960s. Dato’ Terry Tham, E&O Group Managing Director notes, “This prime freehold parcel in the established commercial hub of Hammersmith represents a significant refurbishment or redevelopment opportunity for E&O in the future. Subject to the relevant authority approvals, there is the potential to create Grade A office space and residential accommodation in an area where demand for quality new build property is strong.” Supported by excellent connectivity, Hammersmith’s London Underground stations provide access to the Piccadilly, Hammersmith & City and District lines. The two stations are within two minutes’ walking distance from the site. To date, E&O has three property assets in prime London locations — Princes House acquired in 2012, ESCA House acquired in 2014, and the latest Hammersmith project, which together have a combined gross development value of approximately RM1.4 billion (£269 million).
Illustrations: Proposed redevelopment concepts for Landmark House and Thames Tower
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| E&O IN THE NEWS Media: Business Times, Malaysia (3 February 2015)
10
E&O IN THE NEWS | Media: The Star, Malaysia (21 February 2015)
11
Actual photograph taken at the waterpark
Appreciating the enduring values in people’s lives inspires us to create places of true worth. 18 East at Andaman is a premium reserve collection of exquisitely-appointed residences with dedicated entrances and personalised privileges. This exclusive seafront condominium is set within a fully-completed 4.5-acre waterpark within Seri Tanjung Pinang, the address of luxury island living and a haven to create memories that last a lifetime. Those who know, insist on E&O. Monday - Friday Saturday
Opening Hours
| 9 am - 6 pm | 11 am - 4 pm
OPEN FOR SALE Call or visit the E&O Gallery Singapore at One Raffles Link #01-01 for a taste of life at the pinnacle of the Andaman Sea.
SINGAPORE
65 6337 1680
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