Issue 92 - October 2017 by Property Hunter Magazine

EAST MALAYSIAâ&#x20AC;&#x2122;S LEADING PROPERTY PORTAL, MAGAZINE & EXPO ISSUE 92 RM9.50 (Inc GST)

HOT TOPIC

PROPERTY NEWS

Breathing in Airbnb

AirBnb under hotels and lodging houses by-laws according to DBKK

Airbnb Listings Spiked to 130% in Malaysia

APARTMENT FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

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CONDO FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

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EDITOR’S NOTE Making the right decisions is not as easy as it sounds. What rings great today might bite you in the rear come Tuesday. To become an all-round smart investor, you will need to be wellinformed and up-to-beat with the current flow. Many aspire to become like their investment idols but most fail to absorb or even skip the nasty, grittier parts of the story. This edition of PH magazine we try to help you get up to speed with a wide range of insightful articles from seasoned investors as well as industry experts. We’ve even prepared a checklist for you first time buyers on the things you should be keeping an eye on when buying property. The hot topic of the season: AirBnb will also be covered in the pages of this edition as an introduction to its mechanism, the legalities and how you can let others manage your space for you. It will be the first part of an ongoing coverage of this phenomenon that is shaking up the industry with gusto. If you’re new to AirBnb it’s a good place to start diving deeper into the proverbial rabbit hole... Here’s to making good decisions! Lawrence Julius Editor

Administration & Accounts Jerace Lee Available bi-monthly at leading bookstores and newsstands throughout Malaysia

Oops! In Issue 91, Market in Review article, Pacific Parade, Page 19, Pacific Parade no longer carries that namesake and has been rebranded as PACIFICITY Shopping Mall. In Issue 89, The Difference Between Internal & External Refinancing, Page 61, External refinancing was referred to as a hassle-free solution while Internal refinancing was referred

Respon si

e Forestry bl

ces acti Pr

ted in Sab rin

e in Saba ad

Printed on environmentally responsible paper from imported high quality grade woodfree recycled paper in a Sabah based facility.

Supporting Local Talents & Businesses.

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to as a way to get the most attractive packages. Placement of “External” and “Internal” should be substituted.

CONTENTS Contributor 10

Pan Borneo Highway Sabah: Change is Underway with BHP

I Help You, You Help Me Lah

Help at Hand for First Time Homebuyers

Road to Kalimantan Interview

Colours of Life

Legacy: Wah Mei’s Towering Father and Son Duo Hot Topic

Is a RM2,000 Monthly Salary Enough for a First Investment?

Breathing in AirBnb

Homebuyer’s Checklist

Buying Off-Plan Featured Events

It’s a Gelato Kind of Day!

PH Agents’ Gathering

SHAREDA Held Its First CEO Roundtable Conference 2017

Sabah International Surveyors’ Congress 2017 wraps up after 2 days of

Conference 56

ACE 2017 to Explore Cross Border Real Esate Business Synergy Throughout Asean

Datuk Seri Michael Yam Sees Potential in Sabah Market

MIEA To Take Easier Approach To Encourage More Real Estate Agent Sign Ups

SHAREDA Expects Property Price to Stabilize and Remain Stagnant

Virtual Reality at Property, Investment and Home Expo Property News

New Lease of Life for Oceanus Waterfront Mall

AirBnb Under Hotels and Lodging Houses By-laws According to DBKK

AirBnb Listings Spiked to 130% in Malaysia

Backpackers Cry Foul Over AirBnb

Talks of Retail Glut Slammed by SHAREDA President

Illegal Developers Negatively Impacting Sabah

Disclaimer, Permission & Reprints: This publication is not an investment advice. It is intended only to inform and illustrate. No reader should act on the basis of any matter contained in this publication without first seeking appropriate professional advice that takes into account their own particular circumstances.The publisher and editors give no representations and make no warranties, express, or implied, with responsibility of any of the material (including statistics, maps, articles, loan product tables, advertisements and advertising features) contained in this publication. The publisher and editors expressedly disclaim all responsibility for any errors in or omissions from the information contained in this publication, including all liability for any loss or damage suffered or incurred by any person as a result of or arising out of that person placing any reliance, weather whole or partial, upon the whole or any part of the contains of this publication. No correspondents will be entered into a relation to this publication by the publishers, editors or authors. The publishers do not endorse any company, organisation, person, investment strategy or technique mentioned in this publication unless expressly stated otherwise. The publishers do not endorse any advertisements or any special advertising features in this publication, nor does the publisher endorse any advertiser(s) or their products / services unless expressly stated to the contrary. Articles are published in the reliance upon the representations and warranties of the authors of the articles and without our knowledge of any infringement of any third party’s copyright. The publishers and editors do not authorise, sanction, approve or countenance any copyright infringement. This publication is protected under the Law of Malaysia Act 332 Copyrights Act 1987 and may not, in whole or part, be lent, copied, photocopied, reproduced, translated or reduced to any electronic medium or machine-readable format without the express written permission of the publisher. Copyrights 2013 Maxx Media (S) Sdn Bhd. All rights reserved.

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Contributor Contributor  by Kashani Samat

Pan Borneo Highway Sabah: Change is Underway with BHP The total distance of the project is 706km stretching from the Sabah-Sarawak border town of Sindumin in the Southwest to Simpang Mengayau in the North and Ranau to Mile 32 in Sandakan, Lahad Datu and Tawau in the Southeast.

With change comes opportunity. It is

valuable to be derived out of any change.

whether a particular highway will adversely

a statement that has echoed across

One just has to look for it with an open mind.

affect the property value at any one district.

various industries and it has remained

Same can be said from a property/real estate

It’s a complicated topic that begs the

a constant variable especially in today’s

standpoint. Dozens of statistics have shown

consideration of various parties and plenty of

society. The change in this case would be

that a development of a highway project will

working papers. Other factors play a role in

the transformation brought about by the

inevitably provide more benefits, expressly to

determining the value of any property. Again,

development of Pan Borneo Highway to the

the development of a country and its income.

this is just a general consensus.

In relation to property/real estate, there

Being appointed as the implementing partner

is no certain answer to the question of

of Phase One of the Pan Borneo Highway

real estate sector in Sabah. It seems that there is always something

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Sabah project, Borneo Highway PDP Sdn

more attraction to their establishments.

stimulating the economy in Sabah, ultimately

Bhd have reassured the public in several

Indubitably, this rise in exposure will hence

Malaysia, and increase the capability of the

of its engagements and events that the

lead to increases in profits for businesses

people in Sabah to afford better housing.

development of Pan Borneo Highway will

located at these locations.

bring immeasurable amount of benefits to

Honestly speaking, the development of Pan

the community as a whole, as well as

With regards to the value of new and or future

Borneo Highway Sabah is a trade-off between

the industries that place high reliance on

commercial real estate along the Pan Borneo

accessibility and traffic growth. While a rise

transportation in their operations.

highway Sabah, it will rise in terms of

in traffic due the construction of the highway

demand. Each and every business wants their

may be deem undesirable to some, the

First off, we talk about accessibility. Many

location to be easily and safely accessed. With

same can be argued for construction of any

real estate agents when trying to persuade

several junctions put into the development

type of roadway. Furthermore, the effects of

buyers to purchase residential properties,

of Pan Borneo Highway Sabah, existing and

traffic form the basis for the positive changes

predominantly high-rises, start their pitches

new corporations in the State can rest easy

in property values - as might be expected

with how conveniently positioned their

as their approachability will be remarkably

for commercial establishments servicing a

projects are to an array of amenities, facilities

secured should they open shop or relocate

mobile population. For highway users, the

and or places of interest. With the existence

in the vicinity. On top of that, they will also

Pan Borneo Highway Sabah development

of a highway, residents’ time on travelling

see a drop in operating costs and rise in

will confer benefits in the form of reduced

to banks, hospitals, supermarkets or

productivity.

transportation costs. Whether a particular

recreational parks etc is drastically reduced.

road is classified as a highway or a local street Now we discuss the development of rural

may not be as important as the volume of

Developers in the areas of Papar, where Pan

areas. As most might know, the construction

traffic carried.

Borneo Highway Sabah will make its route,

of Pan Borneo Highway Sabah will generate

have seen an increase in interest and sales

more access and opening to existing and

More in-depth assessments of the net effects

of their projects since its launch by Prime

new areas for residential development such

of Pan Borneo Highway Sabah on nearby

Minister Datuk Seri Najib Tun Razak on 24

as Bongawan, Membakut, Tuaran, Telupid,

property values are limited due to the fact

April 2016.

Beluran and many more, thereby stimulating

that antagonism to such a development

housing construction by property developers.

has typically been the impetus for further

Benefits Pan Borneo Highway Sabah will

Highways make land that previously was too

research. However, in recognizing that the

bring to the existing commercial properties,

far out from the urban centre more suitable

highway is simply another means of carrying

such as those in the areas of Beaufort

for residential development by bringing it

traffic, the analysis shifts to the benefits and

(Beaufort Square etc.) and Kimanis (Kimanis

within travelling distance of shopping, work

costs of the ‘road system’ in general. However,

Centro etc.) for instance, that have limited

and other activities. In turn, by improving

what is definite is the changes that will follow

access would come in way of increase in

access to markets and reducing

the Pan Borneo Highway development,

economic activities. Its commonly known that

transportation costs, the highway may

through the hard efforts of Borneo Highway

when more people pass through areas

encourage an increase in commercial

PDP Sdn Bhd will undoubtedly bring more

in the vicinity of a highway, it will cause

development. These effects may result in

opportunities for Sabah’s economic growth.

“Memacu Masa Depan” #tatapjadi #infrarakyat

“A pessimist sees difficulty in every opportunity, an optimist sees opportunity in every difficulty.” – Winston Churchill

Borneo Highway PDP Sdn Bhd (BHP) BHP is a Government-appointed Project Delivery Partner (PDP) company that will implement Phase 1 of Pan Borneo Highway Sabah. BHP’s functions are to implement, supervise, manage and deliver the project within the time and cost allocated. The project involves widening the existing roads to four-lane dual carriage way and building new coastal highway and expressway/bypass.

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Contributor

Contributor  by YK Hwong

I Help You, You Help Me Lah!

I bet you’ve ran across this phrase in your life

1. If the tenant cannot be profitable after

enough and they might just bail on you!

quite recently, “I help you, you help me lah!”

paying you rent, how long do you think they

Frequently changing tenants, only mean one

Well, it is the truth for Commercial property

will rent from you? It is not beneficial to

thing to other potential tenants; that this

owners, the landlords who care (when I say

keep on changing tenants for commercial

place is not WONG, not ONG, Bad Luck.

care it doesn’t mean you go and feed their

properties, I will explain the reason for this

pet fish ‘Memo’ when they are on vacation)

further down.

are the landlords who wins in the end, within

4. Have you ever noticed shoplots that are always changing tenants every couple of

certain boundaries of course. Thus, this

2. It is relatively easy to rent out your

years? That none of them can last for more

article focuses on commercial properties.

condos or apartments or other houses

than 1 or 2 years? The tenants will try to

This is for the general location shoplots, not

because while not everyone will be running

stick it out, no matter the loss they suffer as

the SUPER HOT ones, as this kind of units

a business, everyone surely does need a

long as they can cover the basics, because

generally have many suckers waiting to pay

house to stay in! This is common sense. The

they will lose more if they move out now

the landlord a deposit, like IMAGO mall etc…

FACT that Residential properties is the bread

(before the lease is over). They may have

and butter for many seasoned investors is

already spent a fortune doing renovations

not without reason.

and decor, and every month they are paying

All of us want high rentals for our properties, but have we ever thought about the survival

really high rent. They would rather try for

of our tenants? Who cares? Well you should,

3. Commercial unit tenants, renting

another month than leave the lot empty,

they are the ones who will pave the way

shoplots, retail spaces and offices require

at least until the lease is up or the tenancy

forward on your retirement income. Okay, let

economic activity and profitability to keep

expires, or worse after they fail to pay and

me give you a few reasons:

on giving you rent. Charge them high

BURN all of their deposit.

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5. Frequent changing of tenants make you

7. For steady and strong cashflow, choose

Technology have also changed the way that

lose out on income, and possibly miss out on

a tenant that has good potential and is

a physical store front is used and needed.

your best tenant because nobody wants to

growing. I rented out my unit to an up and

Many manufacturers now use retail lots as

go in anymore after seeing so many fail.. (the

coming Big Supermarket Chain because

showrooms and showcases while doing

ONG part again, say what you want but some

I believe they will keep on growing. And

most of their sales online rather than actual

business people are really superstitious, and

charge them a reasonable and fair price.

sales centers where the majority of the

I can’t blame them, because sometimes you do need a bit of luck to succeed in business)

sales figures USED to come from. News of 8. Some property owners live for extorting

Jeff Bezos becoming the world’s Richest

the last bit of rental they can squeeze out of

man (if only for a while), who operates

6. As commercial units take a longer time

the tenants. I SAY they are the MAN while I

Amazon Online should be sending some

to find a suitable tenant, the loss of income

always Chicken Out, fearing to lose my BEST

strong signals to the retail sector. In the

is real. Commercial tenants will do a lot of

Tenants. I maintain a good Balance of Rental

path to becoming the Giant that is Amazon,

studies before going in to rent your space,

Hike and Tenant Plight.

it has obliterated (big words) and crushed

as it is a big investment. Most commercial

many offline retailers, many of them

property owners only supply the bare

Of course, you can charge whatever you like

cannot compete with Amazon’s pricing

minimum and it is the tenant who will

when you own the property but remember,

and efficiency. The lack of a storefront has

renovate, design and retrofit the place, some

while you choose the people, the people also

become the ultimate cost-saving weapon

even spending millions for a property they

chooses you! With more and more shops and

in Amazon’s hands. In the end, the need for

don’t even own! The bigger the company,

businesses coming up, it is getting harder for

a physical store is becoming less and less

the more careful they will be.

owners to let out their units in the market.

important as we head towards “the most efficient” generation.

To the property landlords: “You help me and I help you lah!”

YK Hwong YK is an any-means-necessary-self-learned investor ; back then, reading all about it from limited resources and attending every property related event and asking anyone who would spare their time with him. He now spares his own time inspiring others interested in starting and building their own investment journey. More info about him at www.propertykid.com

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CONTRIBUTOR

CONTRIBUTOR  by Khalil Adis

Help at Hand for First Time Homebuyers Developers in Greater KL are overcoming the oversupply issue and demand supply-mismatch by offering innovative programmes and incentives to stimulate the otherwise quiet property market.

If you are a first time homebuyer and

July said that the government is looking

Indeed, according to data from the

need help in buying your home, this is the

to establish a single authority to monitor

National Property and Information Centre

time to start house hunting.

the property market, very much like

(NAPIC), Selangor is the second highest

Singapore’s Housing Development Board

state with almost 14,509 unsold homes

(HDB).

as of 2016 followed by Penang and

The factors at play that favour first time homebuyers are the oversupply of homes

Datuk Johari had flagged the need

particularly in the medium to high-end

for such a body as the definition of

segment where the pool of buyers are far

affordable housing differs significantly

“Most unsold houses are the high-end

and few between.

between private and public property

apartments. Generally, there are strong

developers which has resulted in the

demand for landed houses which are

The problem is severe enough and a

current woes that is plaguing the property

priced within the RM300,000 to RM500,000

cause for concern that Second Finance

market.

range. Nevertheless, it is still competitive,”

Minister, Datuk Seri Johari Abdul Ghani in

Kuala Lumpur at 12,933 and 9,188 units

and the demand-supply mismatch,

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respectively.

“Banks are also very stringent on loan approvals. Even though there is demand, the access to financing makes it difficult for purchasers to buy a house,” said Benjamin Lee, director of Kia Ace

to its highest in eight years with annual

under the National Higher Education Fund

Development Sdn Bhd, a subsidiary of

inflation surging 4.5 per cent.

Corporation (PTPTN) among prospective

UMLand.

buyers, in particular, has further made This is the highest since November 2008.

This, on top of the lack of financial

home ownership almost impossible as banks now factor this when processing

literacy among young Malaysians and

Additionally, NAPIC’s data also showed

rising inflation, have exacerbated housing

that the Malaysian House Price Index

affordability issues among first time

increased by 5.3 percent in its preliminary

“Banks are also very stringent on loan

homebuyers.

first quarter of 2017 data compared to the

approvals. Even though there is demand,

same period last year.

the access to financing makes it difficult

In February, Malaysia’s consumer price index (CPI) showed that inflation surged

The non-payment of the education loan

their loan applications.

for purchasers to buy a house,” said Lee.

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CONTRIBUTOR

We work closely with our end financing bankers to help the purchasers obtain their loans. we believe the key to differentiating ourselves with our peers is the level of service which we offer in going the extra mile for our purchasers,”

“The ‘Stay and Own’ scheme allows purchaser to rent our property for 24 months and subsequently purchase the property at today’s price. The rental is used to offset the purchase price of the property,” said Eugene Khoo, Group CEO of TAHPS Group. According to Khoo, the scheme helps to bring purchasers a step closer to owning their dream home. “Firstly the purchaser can lock in prices today, when the property market picks up in the next two years, which we foresee it will, they would enjoy an appreciation on their property price. Secondly the Innovative schemes by developers

Residence is a 21-storey serviced apartment with contemporary design,

Against such backdrops and the inability

lush landscaping and a myriad of lifestyle

to get financing, it has become a catch-22

facilities for residents.

situation for both developers and buyers. It features 300 units of apartments With developers under pressure to move

ranging from studios to three-bedroom

their unsold inventories, some have come

units spread across two towers which are

up with innovative ways to differentiate

now fully completed.

their product from the rest and to have home ownership within reach.

Meanwhile, Foreston is a freehold landed residential project comprising landed

TAHPS Group, for instance, recently

luxurious bungalows, linked bungalows

introduced their ‘Stay and Own’ scheme

and semi-detached homes with a built-

for two projects, Epic Residence and

up space ranging from 4,455 sqft to 4,777

Foreston, as part of their Corporate Social

sqft.

Responsibility (CSR) programme. The scheme essentially converts the rent Located in Bukit Puchong, Epic

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to partial downpayment.

purchasing power of the purchaser would have increased as his or her income levels would have gone up, thus making it affordable to the purchaser. Thirdly it is a hedge against inflation in the sense that if the price of building materials go up, you are not affected as you have locked in the price today,” he said. TAHPS also works closely with banks to assist homebuyers. “We work closely with our end financing bankers to help the purchasers obtain their loans. We believe the key to differentiating ourselves from our peers is the level of service which we offer in going the extra mile for our purchasers,” he said.

Sweet spot for some developers

started off with pricing it right by working

Police Force (PDRM) to differentiate their

with our marketing agents and banks to

product in a crowded market place by

Meanwhile, UMLand has been able to fill

ensure loan eligibility and affordability.

ensuring the safety and security of its

in the gap in the current demand-supply

We also changed our product to suit

buyers.

mismatch by offering what the market

evolving taste and preferences, and also

needs for their Albury @ Mahkota Hils

by enhancing external environments

“We take the liberty of implementing

project.

and providing necessary infrastructure

the federal government’s economic

such as a gated guarded community

expansion plans in the south of Klang

and pulling in high speed fibre cables.

Valley as well as various initiatives

Lastly, we marketed the houses here as a

introduced under the Tenth Malaysia Plan

growing home for the young families as

2011 to 2015 – by providing a designated

the house is a basic house, with room to

police post at the clubhouse and a pilot

expand in future,” said Lee.

community policing programme with the

Affordably priced at RM230 per sqft to RM290 per sqft and with an easy entry of around RM500 in deposit required, all their single-storey units are now fully sold. “We strategized the entire development to cater to this segment of the market. We

Nilai Police Headquarters as a result of UMLand also went an extra step by

a partnership between UMLand and the

partnering with the Royal Malaysia

Royal Police (PDRM),” said Lee.

Khalil Adis Khalil Adis was the former Editor of Property Report and has written for PropertyGuru, iProperty.com, Yahoo! Singapore/ Malaysia, The Malay Mail, Berita Harian, Real Estate Malaysia, Property Buyer and The Star, among others. Renowned for his independent views and insights on the property market, Khalil is a highly sought-after speaker in Malaysia and Singapore. He has given talks at various expos and at property launches. He was also on the judging panel of the South East Asia Property Awards (Malaysia). Khalil has written two bestsellers - Get It Right Iskandar and Property Buying for Gen Y.

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hot topic

CONTRIBUTOR  by Dr Rafiq Idris

Road to Kalimantan Road Connectivity with Kalimantan Holds Prospect for Sabah

Kalimantan, the Indonesian portion of the

relations with Kalimantan and proposes the

Figure 1 shows the bilateral trade trend in the

island of Borneo is indeed a partner from

focus areas that can be considered by all

past 50 years, indicates that for most of the

which Malaysia should further strengthen its

stakeholders.

years, Malaysia is experiencing trade deficit.

economic potentialities. With a market size

For the case of Sabah, bilateral trade also

bigger than Sabah and Sarawak, there are a

Malaysia and Indonesia have had a strong

is at an increasing trend. Table 1 shows the

lot of opportunities that Sabah can further

standing of bilateral economic ties as both

recent bilateral trade information between

explore. In relation to this, a proposal for

countries are integrated via the ASEAN

Sabah and Indonesia. Table 1 depicts that

road connectivity with North Kalimantan via

Free Trade Agreement (AFTA) and the

for certain years Sabah experienced a trade

Kalabakan is indeed a plan that may create

recent ASEAN Economic Community (AEC)

deficit while in other years Sabah faced

huge potential benefits for both economies.

initiative. From the international trade

trade surplus. Table 2 and 3 shows Sabah’s

This article discusses the current bilateral

perspective, bilateral trade is at an increasing

export to and import from Indonesia by

economic ties, highlights the potential

trend based on a 50 years’ time series data.

broad product categories in 2016. Sabah’s

benefits of strengthening economic

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main export products to Indonesia include

mineral products and chemicals. Sabah’s main import products from Indonesia are animal and vegetable oils, food, chemicals and manufactured goods. In the context of Sabah’s trade with North Kalimantan, recent years’ data shows that there were bilateral trade transactions. However, there is still more room for further improvement should there be road connectivity. Table 4 shows cargo from Sabah to Kalimantan by product categories. Among the products being transported from the ports in Sabah to Kalimantan are sugar, tobacco, clothing/footwear and iron/steel. It is an important point to be noted that few of these products are not our products but being transshipped. Malaysia’s Export to Indonesia

Malaysia’s Import to Indonesia

Malaysia- Indonesia Total Trade

Figure 1: Malaysia-Indonesia Trade (in USD)

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hot topic

Table 1: Sabah-Indonesia Trade Year

Sabah’s Export to Indonesia

Sabah’s Import from Indonesia

Trade Balance

Trade Balance Position

2015

1,709,403,000

1,011,429,847

697,973,153

Surplus

2014

1,037,324,000

831,387,000

205,477,000

Surplus

2013

471,063,000

849,435,000

-378,372,000

Deficit

2012

607,646,000

1,297,325,000

-689,679,000

Deficit

2011

851,639,000

1,265,349

850,373,651

Surplus

2010

1,316,347,000

1,308,716,000

7,631,000

Surplus

Source: Department of Statistics (various issues)

Table 2: Sabah’s Exports by Country of Destination & Commodity in 2015 (RM’000) EXPORT TO:

Indonesia

FOOD

85,271

BEVERAGE & TOBBACO

CRUDE MATERIALS

8,615

40,338

MINERAL FUELS

1,195,013

ANIMALS & VEGETABLE OILS

CHEMICAL

293,202

MANUFACTURED GOODS

40,449

MACHINERY & TRANS. EQUIP.

MISC. MFD.

MISC.

ARTICLES

TRANSACTION. NES

14,312

4,909

27,251

Total

1,709,403

Table 3: Sabah’s import by Country of origin & Commodity in 2015 (RM’000) EXPORT TO:

Indonesia

FOOD

209,049

BEVERAGE & TOBBACO

CRUDE MATERIALS

13,645

5,084

MINERAL FUELS

1,279

ANIMALS & VEGETABLE OILS

CHEMICAL

418,264

117,891

MANUFACTURED GOODS

116,814

MACHINERY & TRANS. EQUIP.

115,965

MISC. MFD.

MISC.

ARTICLES

TRANSACTION. NES

12,478

961

Total

1,011,430

What are the potential benefits of

Down streaming activities in Sabah will

Moreover, road connectivity would help

strengthening economic relations with

create more job opportunities and income.

Sabah exporters to achieve economies

Kalimantan? From the trade perspective,

With road connectivity it will also open

of scale. One of among many possible

Kalimantan’s market size is more than 4

opportunities for Malaysian investors to

reasons why trade occurs between

times larger than Sabah, and this offers

invest in Kalimantan. This products can be

countries is due to the fact that they want

a lot of opportunities for Sabah. Road

re-exported to Sabah if the production cost

to achieve economies of scale. The larger

connectivity could stimulate demand

are much lower in Kalimantan.

the production scale due to larger demand

from North or East Kalimantan for Sabah’s

will lower the unit cost of production.

products. In this regard, there are product

From the Small and Medium Enterprises’

Therefore, road connectivity is expected to

categories where both have comparative

(SMEs) perspective, road connectivity

create new demand for Sabah’s products,

advantage in. Sabah should trade based on

may stimulate SMEs’ activities due to

hence stimulate trade. When there are more

comparative advantage.

competition. In addition, it will complement

demand and trade, it has the potential of

the AEC, where there will be freer movement

reducing the per-unit cost of production

From the investment perspective, Sabah

of goods and services, skilled labors and

and expand Sabah’s SMEs.

can do down streaming activities by

investment. Consequently, it may stimulate

processing products/resources where

demand for Sabah’s products if sufficient

Road connectivity will add impetus towards

Kalimantan has abundant stock of natural

export promoting activities are to be

the expansion of strategic sectors. In this

resources. Road connectivity can lower

undertaken.

regard, our tourism industry can be further

cost of importation from Kalimantan.

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boosted. More tourists are expected to

Table 4: Cargo from Sabah to Kalimantan (2016) Year

2016

COMMODITY

TONAGE

SUGAR

TOBACCO

289

CLOTHING/FOOTWEAR

IRON/STEEL

TOTAL

427

visit Sabah and when there is connectivity,

Sapangar transshipment hub. Goods can be

I foresee that the road has the potential of

it may increase the possibilities of people

transported to North or East Kalimantan via

stimulating economic activities in Sabah

from Kalimantan to acquire quality tertiary

roads from Sapangar.

and specifically in Tawau and Kalabakan

education in Sabah. This will give a lot of

if necessary actions are undertaken. This

return to Sabah’s education sector. On top

In addition, strengthening bilateral

includes the potential for tourism in general,

of that, medical tourism can be further

economic ties can further improve Malaysia’s

medical tourism, SMEs and education sector

promoted when there is road connecting

trade balance position which recorded to be

in Tawau and Kalabakan or surrounding

Sabah and Kalimantan. Sabah can be a

in trade deficit for most of the years. For the

areas to grow. From property sector

gateway for Borneo if there are more direct

case of Sabah, it can also ameliorate Sabah’s

perspective, if there is road connectivity

flights from foreign countries. This can

trade balance position with Indonesia if we

there will be further expansion of the

further boost Sabah’s tourism industry.

are able to harness the opportunities.

property sector. The demand for property

Apart from that, roads will further increase

may increase in Sabah especially in strategic

the possibilities of increasing cargo traffic at

areas such as Tawau.

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hot topic

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consolidation talks must also be launched if we wish import of products via Kalimantan from the rest of the world be unloaded at Sepangar port. It is important to position Sepangar port as transshipment hub. Thirdly, assisting SMEs and strategic sectors on whatever form (tax incentives, etc) is important to add impetus for them to further grow. There is an urgent need to enhance our SMEs by producing more capable exporters so that they can export their products to other countries. SMEs in Tawau, Kalabakan and surrounding areas in particular must be assisted. Fourthly, incentives to attract investments for downstream activities in Sabah is extremely

What should be our focus areas now? In

connectivity, if it materializes shall create

my opinion, from the trade perspective,

investment opportunities for both sides due

Sabah must multiply its effort in promoting

to the fact that ASEAN countries have agreed

its products in Kalimantan. The effort

to form ASEAN Economic Community where

should be done even before the idea of

there will be freer movement of skilled labors

road connectivity materializes. In this

and investments.

expand because none or little factories

chambers must play a more active role in

In this regard, to harness the benefits that

products such as fruits cannot be kept for

promoting and looking for new markets in

Sabah may gain, I suggest that there is

long.

Kalimantan. Participation in activities such

a review on the existing related policies,

as international business expos must be

procedures or regulations if the relevant

conducted at a more regular basis so that

parties feel necessary and there is a need to

frequent business matching activities take

improve the way certain policies/procedures/

place. I believe MATRADE, local business

regulations work. Secondly, we need to

chambers and NGOs such as Society

undertake more comprehensive studies

Empowerment and Economic Development

from various perspectives to quantify

of Sabah (SEEDS) have played active roles

monetarily the potential benefits and costs.

in promoting Sabahâ&#x20AC;&#x2122;s products abroad.

The experience of other countries having a

The recent effort/activity was a roundtable

common border with another country by

discussion on Market Potentials in North

looking at past studies on their issues and

Kalimantan attended by various stakeholders

positive experience is necessary. The idea

from Sabah and Kalimantan in Tawau on

of undertaking a fair cost-benefit analysis

August 16, 2017. This noble effort must be

is not to discourage the idea but so that

supported and it requires the commitment

additional policies or measures can be

from all stakeholders.

introduced to cushion the possible negative

regard, relevant agencies and business

effects. In relation to this, more stakeholder From the investment perspective, MITI and

engagement programs are beneficial to

other relevant agencies may put effort in

obtain feedback in formulating and reviewing

attracting investment from Kalimantan. Road

policies. To further strengthen ties, cargo

important. For certain agricultural products to expand or to plant at large scale, factories for down streaming must exist. Certain agricultural products may not be able to exist. Despite the fact that those agricultural

Fifth point, for the tourism sector, there is a need to enhance existing facilities at tourist spots and creating or positioning new tourist spots in Kalabakan and Tawau. This is to ensure Kalabakan and Tawau gain from economic activities in tourism industry. To sum up, the proposed road connectivity idea by the government which is still under study is a good thing and there are a lot of potential in Kalimantan that Sabah can harness. However, comprehensive study and reviews on existing measures or policies to further ease business activities are important so that Sabah can further benefit via the framework of ASEAN Economic Community (AEC), where there will be freer movement of skilled labors and investments.

Dr Rafiq An Economist, Senior Lecturer from Financial Economics Program, Faculty of Business, Economics and Accountancy, Universiti Malaysia Sabah. www.PropertyHunter.com.my

INTERVIEW

INTERVIEW  by Rebecca Michelle

Colours of Life Be creative. All colours are arbitrary.

Aznan Johary

“Do you know that we’re older than Rolex

Nippon Paint’s first factory foray out of Japan.

RM680 million. That makes us the number 1

and Nike per se?” Daniel Yong proudly

5 years later, a factory was set up in Malaysia.

paint in Malaysia”.

22 years of experience in Nippon Paint and

Having established itself in Malaysia for

Some might say it’s a blessing in disguise to

serving his third year as General Manager

50 years, Nippon Paint (Malaysia Group)

have such a fruitful manufacturing factory

of Nippon Paint (Sabah) Sdn Bhd, Daniel’s

has built a strong relationship with various

in Sabah. Nippon Paint is a subsidiary of

vision is to place Nippon Paint’s foothold

stakeholders to adapt to local preferences

SEDCO, with 51% of the stakeholder shares

as Sabah’s largest paint manufacturer by

and develop good distribution networks.

belonging to the State Government under

exclaimed. And no, it’s not a joke. With over

focusing in driving consumer education and

the Ministry of Industry, 12% to Nippon

inspiration.

“In 2014, Nippon Paint was ranked 1st in

Paint Japan and 37% to Hua Joo Seng, a

South-East Asia and 4th in the world”, said

Singaporean conglomerate.

Founded by Mr Moteki Jujiro in Tokyo, Japan

Daniel before adding that according to the

in 1881, Nippon Paint is one of the largest

Asia Pacific Coating Journal, Nippon Paint’s

As Malaysia and Asia’s No. 1 Total Coating

paint manufacturers in Asia, with more than

coating sales stood at $2.4 billion (RM10.9

Solutions provider, Nippon Paint is the first to

16,000 employees, 65 manufacturing facilities

billion) per annum.

eliminate lead in all decorative paints and it

and operations spanning across 16 countries

is now becoming an industry standard. As the

producing 1 billion litres of paint annually.

Kota Kinabalu (Sabah) is home to one of

market leader, Nippon Paint Malaysia Group

three Nippon Paint factories in Malaysia –

will be playing an active role in advocating

NIPSEA Group (Nippon Paint South-East

with the other two located in Shah Alam

the elimination of lead in all decorative

Asia), a joint venture between Nippon Paint

(Selangor) and Tampoi (Johor). Daniel said,

paints in Malaysia by 2018 through the

Holdings Co. Ltd and Wuthelam Holdings

“The three factories, with over 100 years of

Malaysian Paint Manufacturers’ Association –

was formed in 1962 in Singapore and it saw

heritage, produce 100 litres of paint annually

and for all other coating categories by 2020.

and the turnover for the whole of Malaysia is 24

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INTERVIEW

There’s always a first

Innovation Leadership Award for its

Daniel commented that Nippon Paint

revolutionary innovation in 2016.

takes a holistic business approach in

“We (at Nippon Paint) work closely with

creating positive impacts throughout

various authorities and associations,

“88% of mothers overlook walls as a

every level of its business ecosystem. “We

to drive the green, sustainable agenda,

medium that transmits viruses and

are playing an active role in developing

by cross sharing of best practices with

bacteria”, shared Daniel, before adding

the community that we exist in, and this

industry players through mediums such as

that children touch walls in their everyday

includes the Sabahan community too”, he

talks, workshops and other collaborative

activities and yet walls aren’t cleaned as

added.

efforts”, said Daniel.

often as floors.

Nippon Paint launched VirusGuard in

With silver being one of the world’s oldest

dealing with the extremities of Malaysian

2015, the first anti-viral paint in Malaysia.

antimicrobials which resists growth of

weather, Nippon Paint introduced the

The formula works by using Silver Ion

micro-organisms such as virus, bacteria,

Weatherbond Solareflect that reduces

Technology (which is activated when

mould and fungi, the Silver Ion Technology

external surface temperature by up to five

oxidized and is deadly to bacteria) as

in Nippon Paint’s VirusGuard destroys the

degrees Celsius for better indoor comfort.

well as control release technology.

functions of these viruses and bacteria,

The company received a New Product

preventing its production and growth.

To promote better indoor comfort in

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Apart from product innovation, Nippon

Paint is the first coatings company to

From this, the Automotive Trend Colour

â&#x20AC;&#x153;Our next invention is the MosiGuard, a

unveil an Asian colour palette leveraging

is innate for the automotive coatings

mosquito repellent paint. We are also

on Asian professionals in its Trend Beyond

segment. Other product innovations

considering repelling certain types of

Colours initiative. The annual Trend

include manufacturing coatings with

cockroaches and lizards. We actually have

Beyond Colours distils the expansive

excellent washability with the use of Teflon

the formulation for the lizard repellent

cultures, lifestyle, and trends of Asia into an

surface protector technology and Nippon

paint in Singapore but to get it up and

Asian colour palette; a palette used as an

Paint Odourless AirCare; the first paint

running in Malaysia, we would need to

important reference point for a wide range

in Malaysia which uses Active Carbon

get the green light from the ministryâ&#x20AC;?, said

of industries such as automotive, fashion,

Technology which absorbs formaldehyde

Daniel.

electronic gadgets, interior design and

from the air.

many more.

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INTERVIEW

Rainbow in the storm

Gandukut, Kg. Lahanas, Kg. Tengkurus

Nippon Paint will continue their Corporate

and Kg. Tegudon.

Social Responsibility (CSR) programme to

There is no better way to be a rainbow in

drive the creative spirit amongst children

someone else’s cloud than to create it.

“Our purpose is to educate the

through arts and colours and to drive

In 2015, the company retreated to Kota

children and plant valuable life skills

greater empowerment amongst the

Belud to nurture and develop the interest

in them to allow them to survive in this

community.

of the children to learn through the

unpredictable world. At the camp, the

application of arts and crafts. The maiden

children, guided by 20 professionally

Every accomplishment starts with the

two-day Colour Dreams Camp saw 100

trained teachers, were exposed to

decision to try. Nippon Paint has earned

children from various villages namely,

impactful learning modules developed by

multiple industry recognitions for their

Kg. Nahaba, Kg. Talongan, Kg. Piasau, Kg.

Yayasan Gemilang Malaysia”, said Daniel.

innovations and has emerged as the only

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paint company in Malaysia to receive the

“How does one achieve a platinum

products with functions that are most

Reader’s Digest Trusted Brands Award

award? Simple. You would need to be

relevant to the local market.

Malaysia for 11 consecutive years.

160% above your competitor (in second place) in terms of these six values:

“We will also work closely with all industry

In 2016, under the Reader’s Digest Trusted

trustworthiness, credibility, quality

stakeholders – property developers,

Brands Award Malaysia, the company

value, innovation, understanding of

construction companies, project owners,

received the highest recognition, a

customer needs and social responsibility”,

architects, interior designers – to ensure

Platinum Award, and was conferred the

explained Daniel.

that we listen to their needs and provide

Paint Company of the Year by Frost & Sullivan.

them with innovative solutions that will Daniel finished off saying they are

develop them further”, he said.

committed to continuously innovate

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INTERVIEW

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INTERVIEW  by Lawrence Julius

Legacy: Wah Mei’s Towering Father and Son Duo Mr Quek Siew Hau and Seth Quek

WMG Holdings Bhd or Wah Mie Group started out as a family-oriented business with humble roots in Sandakan. Today, it is one of Sabah’s premier property developers and is the first Sabah developer to be listed on the Main Market of Bursa Malaysia Securities Bhd. We had the chance to sit and chat with Wah Mie’s Quek Siew Hau, Managing Director of Wah Mie Group and son, Seth Quek a Project Executive in the Group, on their relationship dynamics and where they see the company going after reaching such a big milestone in getting the company listed. PH: What’s it like working together? Mr Quek: I think it’s good. We share a common interest. He (Seth) studied civil engineering which is related to the trade. I brought him in (the company) to give him more opportunities to be exposed to different and bigger-scale projects like shopping malls and condos. He can see the whole process from start to end. I want him to learn from drawing stages right up to completion. In the beginning, he was a bit lost but now he is coming along after the years he’s been here. Seth: Of course, working with your father, there’s a lot of expectations. It’s not like having a normal boss. Working with your family, it is around the clock. We talk about work during dinner, in the evenings even on holidays. But I think all this has made our father-andson relationship stronger. We talk more because we are in the same industry.

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INTERVIEW

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PH: Has this always been a passion of yours or you did you have to get used to it?

the company or anything like that.

take over. Of course, it was a big challenge to PH: Any thoughts on pursuing career

take over from the first generation. Initially

outside the company?

I was with Datuk Kong Kwok Wah as his

Seth: Yes, it was always a passion. Even from a young age I liked building and constructing.

I wouldn’t say no, maybe in the future but it

It’s interesting because I like architecture.

must be in the construction line. For the time

Somehow, I went into engineering instead.

being, we have a lot of plans for the company

But I think engineering is more related to

that will keep us busy for many, many years.

development and what we are doing. It goes

But you’ll never know, I wouldn’t close the

down to every bolt, nail and brick.

doors if there are opportunities to explore.

I worked in Australia close to about 10 years.

PH: Can you give us a brief history lesson

When I came back I worked with a local

on Wah Mie Group and how it has grown?

engineering consultancy firm to brush up on my trade. Father wanted me to further enhance my skills. After a couple of years, I joined the company (WMG Group). This was about 3 or 4 years back, once I had the

Mr Quek: Wah Mei Group started back in 1979 by my father as a chairman and his team of partners. It started off as a timber corporation. After making their money they

confidence that I can join and contribute.

teamed up with Datuk Kong Kwok Wah.

PH: Were you aware when you were

and foresee property having a bright future.

younger that you may one day step into

Hence, they created Wah Mie Group.

your father’s shoes?

team they formed the foundation for us to

They wanted to divert to another business

We have 37 years of history and went through

When I was young I had the passion to create

all kinds of crises, be it financial, property or

and build but I didn’t think about taking over

even political. With the effort of the senior

deputy. I learned a lot from him. Eventually I took over after him. These senior directors had the vision and bought a lot of land during their time. We are lucky in that respect. We learned a lot from the founders. In our prospectus, we have 600 over acres of land in Sabah. Something which is hard to acquire today especially in Kota Kinabalu. These couple of years have been slow but no matter how good or bad it is we will still work hard to bring the company a step forward. Just like how we manage to get the company listed this year. PH: How has the company changed after being listed? Mr Quek: When you list a company, it must have a strong financial position and management to give our partners confidence. Joint ventures will come in handy and the company will benefit greatly. www.PropertyHunter.com.my

contributor

We are doing some exciting things that

to properly take care of. If you send them

want to change the old development plan

unfortunately we cannot divulge now. It is

to these care centres they will know what

and include new concepts and ideas. An

easier for others to work with a company

to do. Care is different from nurses who

example is Elements in Likas, we want to

that you can see is growing and it presents

give you medicine when you are sick. The

redo the plan and design, my architect is

a lot of opportunities. People are more

emphasis is on the word care. You will have

very busy with that now.

confident with us.

people talking to you, walking with you,

PH: Any new and exciting projects we

eating with you, helping you around. It’s

For KK, a lot are still pending on approvals

very unique for Sabah.

while in Sandakan we are developing

can expect from Wah Mie?

a shopping mall, a hypermarket and a Seth: I think it is an awesome idea and

condo. We are bringing in the first Mydin

Mr Quek: I can’t reveal a lot, but there

concept. It’s not a traditional old folks home

branch to Sabah which is very exciting. The

is something maybe I can share, it’s

it is the care element that we are focusing

hypermarket itself will become the largest

something we feel that is brand new for

on. It is not about selling a traditional

standalone hypermarket in Sabah.

Sabah. It is a silver-hair retirement village. It

service. We foresee families in Malaysia

is not an old folks home. This is one of the

finding a need for these facilities.

most interesting prospects we have. PH: Interesting, how is it different?

The Government is talking a lot about affordability, we are not building affordable

PH: Where is Wah Mie Group focusing on

houses per say but we are building quality

now? KK or Sandakan?

houses that are affordable with a different concept. I don’t want to be traditional,

Mr Quek: A lot of families have elderly

Mr Quek: Actually, both Sandakan and KK.

people in the house that no one knows how

I want to move forward and go with the

We have a lot of land in KK. However, we

trend.

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Seth: My father and the other directors,

this move. It opens up new opportunities

Mr Quek: To create more GDV!

I can say they are open to new concepts.

and we are keen to push the company

(Laughter) Well, we have to bring in more

We research and look to developments in

further. Like what SHAREDA keeps saying,

developments. I want to be able to expedite

Kuala Lumpur. Like it or not they more are

succession is very important. Hopefully now

more new concepts. I want to be different

advanced in terms of concepts and ideas

with bigger opportunities to come, we can

from others but we would love to team up

such as sustainability and ‘livability’. We

look outside Sabah and not just be limited

with others to do projects. For the moment

are moving in that direction. We don’t want

here.

we are busy with Sabah, at least for the

to stick to the conventional and we want

short term. There is real opportunity here,

to provide more lifestyle concepts, that is

PH: What are your personal goals and

just look at our tourism sector. We will

the new focus. Like I said we want to do

your goals for the Company?

reveal our plans in KK soon.

Seth: I love the company. For the time

PH: Finally describe your father/son in

PH: Seth, how do you feel about the

being I see myself attached to the company

one word.

company now being a public listed

assisting my dad as he has a lot of plans.

entity?

Hopefully within the next 10 years we can

something different.

Seth: Dedicated.

reach new benchmarks. I’m commited to Seth: From the third generation’s

doing that. Of course, we are open to other

Mr Quek: Passionate. Or getting more and

perspective, we are very positive with

opportunities.

more passionate I would say.

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hot topic

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HOT TOPIC  by Rebecca Michelle

Is a RM2,000 Monthly Salary Enough for a First Investment? Where do I go from here?

With the continuous increase in the prices of houses and cars it seems like an impossible feat to own either one of them if your income is not more than RM 5,000 a month, but, with meticulous research and multiple coffee talks, is it still possible to invest with a basic salary of RM 2,000. But, how much can I borrow? This is the most important question to ask before purchasing any house. Property is always a market that’s trending, it has its highs and lows, but no one ever stops investing in it. So, before you start hunting for a property, take a good look at your finances and expenditures. Although most people get a property loan when they purchase their property, they still need to come up with some upfront cash for the down payment. The next thing to ask yourself is, “Do you have enough saved in your account to make the down payment?” To gauge the maximum home loan you can apply for, it is always best to ensure that the total monthly instalments of all your outstanding loans, and your prospective home loan does not exceed 60% - 70% of your nett income (after deductions). This is known as the Debt Service Ratio (DSR). Once the DS has been determined, every bank will have their respective guidelines for maximum allowable DSR threshold. It is typically determined by one’s income level, but it may also be affected by one’s net worth and other subjective factors such as qualifications and age, in some cases. Going by current market prices and bank rates, here is a rough breakdown on what it would cost to finance a RM 155,000, 3 bedrooms, 2 bathrooms, 750 sqft apartment out of the bustling metropolis today.

Property price

RM 155,000 (estimation)

Margin of finance

90%

Loan amount

RM 139,500

Interest rate

4.4% (estimation)

Tenure

35 years

Monthly instalment

RM 652

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hot topic

The question of ‘enough’ is highly subjective

have decided to weigh on it too and have

their parents and have received some sort

and is more of a question of one’s situation

come up with 4 scenarios to show you that

of financial aid from their families.

than one of industry pay scales. But since

it is still possible to start your investment

the question is on everyone’s minds, we

journey – assuming they are still living with

Julian 29, Barista

Lexie 28, Clerical Assistant

Kyle 26, Accountant

Ryan 27, Receptionist

RM 2,000

RM 400 (history of lapses)

RM850

RM 200 (motorbike)

RM450

YES

Credit card

(history of lapses for unpaid outstanding of RM 4,000)

RM 425** ccm (outstanding of RM8,500)

Student loan

RM 150 ccm

RM 150

RM 150 ccm

Approval



Monthly income (nett)

Car loan

YES RM 250** ccm (outstanding of RM 5,000) RM 150 ccm

(history of lapses)



** Credit card repayment stands at a minimum of RM50 or 5% of the outstanding balance, depending on which is higher

Bump Up Your Loan Amount

1.Reduce your debts

4.Consider buying with someone else

When a banker is assessing how much to

By reducing balances on credit and

If both salaries are considered, and the

disburse to you, they look at a number of

store cards or your overdraft, the bank

person you are buying with earns more

things including the affordability of your

will assume that you are better able to

than you, it is possible to take out a bigger

repayment, existing debts, credit rating

cope with a bigger mortgage and may be

mortgage than if you were buying alone.

and income.

prepared to lend your more.

In order to maximise the amount you can

2.Check your credit rating

5.Get a “subprime” mortgage The term “subprime mortgage” has a

borrow, you need to minimise anything that might be a red flag to the bank and

A higher credit score may help you qualify

negative connotation because of the

make sure your finances are in the best

for a lower interest rate. Your lower interest

housing bubble and financial crisis it’s

possible shape.

rate will reduce the monthly payment on

often associated with, but subprime

a corresponding loan size or allow you to

mortgages can be a gateway to home

qualify for a higher mortgage amount.

ownership for some people.

3.Get a guarantor

A subprime mortgage is a home loan

To put it bluntly, “fixing” a credit score is more about fixing errors in your credit history – if they exist. Raising your scores after a poor record on your report or

with higher interest rates than their prime First time buyers can benefit from getting

mortgage counterparts. The higher interest

time will take time, patience and discipline.

a guarantor to underwrite their mortgage.

rates are in place to offset the risk of loan

Banks may be more willing to lend if they

default by subprime mortgage borrowers

So what steps can you take to boost your

know a parent with a good credit record

who are risky customers because of poor

borrowing power? The tips below should

will guarantee to repay the loan if you run

credit. These mortgages can be either fixed

help you with maximising your borrowing

into difficulties.

or adjustable.

building a good credit repo for the first

potential, despite the bank’s tight lending criteria.

Some property developers in Malaysia with moneylending license have already started

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to offer up to 100% financing to their

able to afford their first home.

buyers. Such scheme is intended to assist

to save up enough to cover the down payment of a property. For first-time

Malaysians who have difficulties in securing

The MyFirst Home Scheme is one of the

property buyer, whose finances is in the

a home loan

measures announced by the Government in

pink of health, they are typically offered a

the 2011 Budget aimed at assisting young

90% property loan. Hence, the shortfall of

adults to own a home. The scheme allows

10% is paid in cash by the buyer as down

homebuyers to obtain 100% financing from

payment.

MyFirst Home / MyDeposit Scheme Housing affordability leaves the biggest

financial institutions, enabling them to own

impact on middle income households,

a home without having the need to pay a

The Government understands the difficulty

not just in Malaysia, but also around the

10% down payment.

first-time home buyers are facing, and

world. It is a major concern, especially in developed countries.

hence, about RM200 million has been Cagamas SRP Berhad will guarantee the

allocated for the MyDeposit Scheme. This

banks on financing above the 90% level. The median household income in Malaysia

scheme essentially helps first-time home

For example, if a borrower obtains 100%

in 2014 was RM4,585 a month, and an

buyers cover the 10% of down payment,

financing, Cagamas SRP will guarantee

affordable home for such a middle-income

or a maximum of RM30,000, whichever is

10% (from 90% to 100%) of the financing.

family should ideally sit at RM165,000.

lower.

What does this mean? It means that the

The biggest amount in any household budget is housing, and with prices of residential properties skyrocketing in Malaysia at a much faster pace than household incomes, Malaysians are finding

borrowers are liable to the bank for the

Skyrocketing property prices over the past

full financing amount (up to 100%). The

few years have also prompted unmarried

guarantee only insures the bank for any

couples, siblings or even friends to buy real

loss incurred as a result of financing above

estate together in a desperate bid to get

the 90% level.

their feet on the property ladders, despite the potential risks should their relationship

it increasingly difficult to own a roof over

The MyDeposit Scheme was first

their head.

announced in Budget 2016 last October.

The Government has implemented many initiatives to control the escalating property prices, from cooling measures to stop speculation, to financial aids to help the lower- and middle-income groups to be

turn sour.

It aims to help the lower-and middle-

Do not rush into making an investment if

income groups, with a household income

you know that the monthly repayment is

of RM10,000 and below, to purchase their

not within your means. Take your time and

first home.

slowly study the place which you plan to invest in.

This is perfect for those who are struggling

Disclaimer: This article is intended for general awareness purposes only and should not amount to any form of advice. The calculations, information and data contained herein are mere examples and the writer accepts no liability for loss or damage suffered or incurred by anyone as a result of the reliance on this article.

www.PropertyHunter.com.my

hot topic

hot topic  By Lawrence Julius

Breathing in AirBnb Transition from owner to host and transforming your unit into an Airbnb-ready space.

The property industry is buzzing. Not since

appeal of this is people get to experience

What makes AirBnb such a hit is how easy

the advent of online property listings has

neighbourhoods like a local by staying in

and accessible it is to not only rent but to

there been such excitement for something

homes rather than hotels. People also enjoy

lease out and host patrons. Through the

such as this. It all started from AirBnb, a

the extra comfort and luxuries of a home.

AirBnb website or app, property owners

company founded by a bunch of people

can list their units and open it for booking

who simply wanted to rent out their loft to

Sabah as a tourist destination is perfect

within minutes. Likewise, those looking

make ends meet. Today, AirBnb is the go-to

for AirBnb. Ivan Chong, CEO and Founder

to rent simply input their details, date

site for short-term rentals. From here the

of Widebed Sdn Bhd, a vacation rental

and length of their stay and proceed to

vacation rental business was born, and now

management service provider company,

make payment online. Similar to Uber for

everyone is slowly picking up on the AirBnb

believes that vacation rentals will continue

transportation, AirBnb has disrupted the

mechanism – from home owners, investors,

to be in demand, saying, “3.4 million

entire hotel industry as people start to turn

even developers.

visitors arrived in Sabah in 2016, with

their homes into full-fledged AirBnb suites

approximately 10% growth (from previous

and running their homes like a business.

First of all, it should be clear that AirBnb

year). 36.9% of these are young travellers.”

AirBnb’s home-sharing segment carry its fair

is an online-driven hospitality service

There is a demand for leisure lifestyle

share of controversy but presents plenty of

enabling people to lease or rent out their

accommodation and Ivan believes the

opportunities as well.

properties. AirBnb stands for “Airbed and

potential is high for the Sabah market.

breakfast” so you get the idea. Much of the 40

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Making Money from Air

If you do decide to jump onto the “Air”

Enter specialized vacation rental

balloon, keep in mind it isn’t as easy as

management firms or operators – a

AirBnb is such an appetising venture for

buying a property, listing it, and welcoming

by-product of the AirBnb wave. These

investors because of the higher profit

patrons to your new space. Calculate

are groups of professionals who are

margin and quicker turnaround compared

your costs, you will still need to factor in

knowledgeable on the topic of optimizing

to traditional renting. For the sake of

your loan repayments, management fees,

AirBnb spaces. If you own a home you’d

demonstration, let’s assume you have a

maintenance, household necessities etc.

like to be managed, they will come in and

condo unit; after signing the paperwork

On top of that you will need to upgrade

take charge of your property from listing to

and paying your agent, you are able to rent

your unit from an empty lot to a cosy

cleaning. In return, they will take a share of

it out for RM2,000 a month. Great. You are

and stylish abode. Also, note that AirBnb

the booking fee, ranging from 30 to 40%.

generating income, netting roughly about

charges a 3% fee on every booking made

Via this avenue owners who do not have

RM800 a month after factoring in your loan

via their platform. Renovations will need to

the time nor expertise to manage bookings

repayment. However, by utilizing AirBnb to

be done make your unit AirBnb-ready. Ivan

themselves will be able to get into the

book your guests, you may gross RM200 a

from Widebed estimates that renovations

AirBnb market without much hassle. There

day – that’s RM2,000 for a 10-day booking.

can range from RM10,000 to RM20,000 for

is a huge number of property owners who

Which would you prefer? One earns double

a small studio, RM30,000 for a 2-bedroom

are just too busy to tend to their properties

the typical rent in a month if done correctly,

apartment and around RM40,000 for a

and leave their units idle.

in addition to removing all the hassles of

3-bedroom condominium or apartment.

dealing with paperwork. www.PropertyHunter.com.my

hot topic

Kenny Wong, Director and co-founder of

short period of time. Small scale operators

for AirBnb. A good example of developers

Wowspace Sdn Bhd believe they are a

will definitely be affected especially when

taking AirBnb to heart is SG City mixed

real-estate solutions provider, adding, “Our

their previous tenancy agreement has

development by SG Group that will feature

involvement begins by value adding to the

ended, the landlord will ask for a higher

a hotel tower fully managed as AirBnb

property, as well as providing design and

rental due to the overwhelming demand.”

units. Buyers will be able to purchase

build solutions to maximise the potential

individual units here and opting to let

of the property. We provide value for the

The success of your listing depends on the

it be managed by the developer. Newly

travellers and at the same time fetching

ratings given by your patron, so you have

opened ITCC has also enlisted a company

higher rental yield for the owners which

to make sure your place is in top condition

to manage its Manhattan Tower as AirBnb.

in turn increases value of the property in

and you are a hospitable host every time.

Another project would be Bay 21 Too by

the long run.” He also believes that the

Right at the top of the list is cleanliness, no

Remajaya Sdn Bhd that has developed

demand for AirBnb units will continue

one likes a messy home, so you will need

their plan with AirBnb in mind, allocating

to flourish as it caters to the demands

to spend time cleaning after your guests

certain floors of a residential condo as

of a younger generation of travellers

if you are to garner good reviews. What

commercial lots to be utilized for AirBnb.

who plan their own itineraries outside of

all of this comes down to is, will you have

As people adapt, developers are enlisting

conventional tour packages.

the time to properly manage your space?

help of short-term stay management

If not, you might want to consider the

companies like Ivan’s Widebed and

Giving his thoughts on Sabah’s potential

assistance of a management company to

Kenny’s Wowspace, management teams

in the AirBnb market, Kenny says “I believe

absorb the worries.

who are well-versed with the world of

that AirBnb or vacation rental business

will continue to grow for the coming years.

Developers are also in for the AirBnb ride.

However, this is a double-edged sword.

With issues surrounding the legality of

With the rapid growth of demand for

running an AirBnb in residential units,

AirBnb space from the operators, the rental

developers have by-passed the issues with

for these properties will skyrocket in a

marketing commercial SOHO type units

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AirBnb, to make sure that their project is vibrant and generating revenue when the project completes. AirBnb has truly challenged the traditional way of thinking when it comes to developments and investments.

“Only land zoned for commercial or commercial mixed-use areas may be used as AirBnb.” Legal Issues on AirBnb The sharing economy is a volatile one.

home-owners run AirBnb activities. So, it is

“Any building, including hostels, hotels, inns,

vital to know the facts and know the legality

boarding-houses, rest houses and lodging

of running an AirBnb space in your building.

houses, held out by the proprietor owner or

Depending on new legislations and

manager, either wholly or partly, as offering

regulations, your dream of becoming an

Stanley does agree however that there

lodging or sleeping accommodation to

AirBnb host can be crushed even before

must be an adjustment made to regulations

tourists for hire or any other form of reward,

it begins. Rules can vary between city to

to specifically include AirBnb as these

whether or not food or drink is also offered.”

city, even development to development.

regulations are widely ignored by the general

In the case where accommodation premises

Bear in mind, the management of your

public. Most would agree on the creation

such as houses or apartments managed

newly acquired property may or may not be

of new regulations regarding the issue,

by an operator, irrespective of whether

welcoming to listings on AirBnb. Also, listing

including AirBnb hosts but the question to

such premises are in the same locality, the

your residential unit on AirBnb might get you

ask is how well will these regulations be

operator is required to be registered if having

in trouble with the law following complaints

enforced by the authorities and how severe

5 accommodation rooms or more. What

from the neighbours.

will the charges be.

this means is, if you manage properties that

As of writing this article, no new form of

Kenny is of the same opinion to Stanley

regulation or update has been implemented

saying, “I agree that AirBnb has to be

for AirBnb on the state or federal level.

regulated with proper guidelines so not to

For many it is still unclear whether the

cause inconvenience to other residents in

management council can restrict AirBnb

the building and at the same time safeguard

activity on their premises. However, there

the travellers’ interests. To be fair to potential

All in all, keep in mind that AirBnb is simply

are existing laws that may apply. According

house buyers, it should be clearly made

a very good broker or middleperson. They

to Stanley Chong, Director of City Planning

known whether the property is under

are only providing a service and you as the

Department Kota Kinabalu, AirBnb falls

commercial zoning (and cleared for AirBnb)

owner will be liable for anything that might

under the Hotels and Lodging Houses By-

before signing on the Sales and Purchase

happen. No doubt, there is an ever-growing

Laws 1966. “Only land zoned for commercial

Agreement.”

demand for AirBnb especially in Sabah with

or commercial mixed-use areas may be used as AirBnb,” Stanley said, adding that there

As of September 2017, the Tourism Tax Act

must be a grant of license by the city council

2017 has come into effect. Accommodation

to the operator as well as a health certificate

premises such as hotels are now obliged to

in order to deem an AirBnb operation legal.

collect a RM10 tax from tourists for a night’s

Stanley also said that it is the right of the

booking. “Accommodation premises” is

Management Council to restrict or allow

defined in the Tourism Industry Act 1992 as

cumulatively exceed 5 rooms for AirBnb, the law should apply to you as well and you are required to apply tourism tax. These laws are new and it remains to be seen how effective enforcement of these laws will be.

the influx of tourists into the state. That said, be diligent and always keep a finger on the industry’s pulse and keep an eye out for regulations that may pop up regarding AirBnb accommodations in Malaysia. It would be wise to future-proof your investments. www.PropertyHunter.com.my

hot topic

HOT TOPIC  by Rebecca Michelle

Homebuyer’s Checklist Ah, alas. Something to tear and take around.

Buying a house is one of the BIGGEST

when buying a house beyond what the

investments a person can commit to in a

colours of the walls are.

prospective homebuyer. While the points listed are all important

lifetime. A substantial amount of research and money is often needed to purchase

When it comes to house hunting, everyone

things to consider when buying a

a property. Often, a first-time homebuyer

will want something different in terms of their

house, there are just the more common

may be so overwhelmed with the process

built environment. Affordability will obviously

considerations – as with any property

that they may overlook some important

be a top criterion, but peace and quiet, good

purchase. Make sure that you do your

things and add more stress to their buying

schools, shops and low crime rates are also

homework and get sufficient advice before

experience.

likely to be important.

putting in an offer.

You might think a particular house looks

It’s easy to let your heart rule your head

Here’s a friendly tip; always buy within your

perfect for you, and it may very well be, but

when it comes to buying a house. Here are

means and when you are ready. Don’t jump

there are tonnes of other things to consider

some things to keep in mind when visiting

into the investment boat because of peer

the myriad of houses, you’ll look at as a

pressure.

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CHECKLIST MADE EASY FOR YOU This checklist gives you a summary of each step in the homebuying process. As you complete each step, put a check mark (â&#x153;&#x201C;) in the boxes provided.

Decide what kind of home you want

STEP 1

Choose the neighbourhood you want to live Choose what type of property you want to live in STEP 2

Calculate your affordability Calculate how much you have saved for down payment Calculate how much your closing costs will be (ask your agent for advice) Calculate your monthly repayment each month

STEP 3

Get the help and advice you need Find a real estate agent to help you find a home Get pre-approved for a mortgage Hire a lawyer to look after your legal interests and review any contracts Get an appraisal and home inspection before buying Purchase a property insurance after you purchase your home

COST OF THE HOME Purchase price

GST (if applicable)

TOTAL COST

UP-FRONT COSTS Appraisal fee (if applicable)

Downpayment

Home inspection fee

Legal fees

Mortgage brokerâ&#x20AC;&#x2122;s fee (if applicable)

Property insurance

Other up-front costs

TOTAL COST

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hot topic

Home Features Checklist: Before you start looking for a home, make a list of all the features you and your family want or need. Every time you visit a home, fill in the following checklist by putting a check mark (â&#x153;&#x201C;) beside the chosen feature. CHECKLIST Is the home new or resale?

New Resale

Is the home new or resale?

Landed Condominium Townhouse Detached Semi-Detached Terrace

How old is the home?

#years:

How many bedrooms are there?

1 2 3 4+

How many bathrooms are there?

1 2 3+

Facilities and emenities nearby?

Your workplace Your spouseâ&#x20AC;&#x2122;s workplace City centre Schools Park/playground Hospital Dentist Veterinarian Shopping mall Supermarket/convenient store Police station Fire station Airport Restaurant/eateries Place of worship

OTHER NOTES

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House Hunting Comparison Sheet: Use this comparison sheet to compare the different homes you visit during your house-hunting. Fill in as much information as you can, then compare the results later.

HOME #1

HOME #2

HOME #3

Real estate agent:

Telephone:

Type of home:

Sqft/land area:

Location:

No of bedrooms:

Property price (RM)

ANNUAL COSTS

Property taxes (RM):

Property insurance (RM):

Management fees (RM):

Other (RM):

TOTAL COST (RM):

Distance to work:

To spouse’s work:

To school:

To hospital:

To police station:

To fire station:

To supermarket:

To city centre:

To airport:

ITEMS INCLUDED IN THE PURCHASE PRICE (Make a list e.g kitchen cabinet, fan, sink, etc.).

OTHER NOTES

PROXIMITY

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hot topic

HOT TOPIC  by Lawrence Julius

Buying Off-Plan Purchasing something that isn’t there yet

So, you read the write-ups, saw the videos,

who the developer is. Be diligent when

for the community, the amenities, facilities,

the pretty pictures, inspected the floor

researching, it isn’t enough to visit their

sound levels, the density etc. Visit during

plan; the only thing missing is the place

website and reading the corporate info.

peak hours to see if the traffic is bearable or

itself. This is the case when buying off-plan

No one will have anything bad to say on

just insane. Also, consider the influence this

property. Rather than opting for completed,

their own website. Dig deeper, check the

development will have on the area once it is

established projects, we buy into a promise

registrations, research the names, ask

completed, for better and for worse.

that our dream home will be delivered

the forums, talk to people who are in the

according to plan. While it is always nice to

industry. Sometimes things can be shiny on

3. Get your documents and contracts in

be the first one living in a home and having

the outside but rotten at the roots.

check

2. Visit the site

Assuming you have done the calculations

the luxury of selecting your preferred layout, floor and view, there are a few things to consider and even avoid before buying off

and figured out your finances, it is now time

the plan.

If you are buying a place to live in, you should

to get to the paperwork. Starting off with

at least know the area. Looking at a map

the signing of the Letter of Offer (LO), this

What you need to do

is no substitute for actually being on-site.

document is followed promptly by the Sales

Get a feel for the location, drive around and

and Purchase Agreement (SPA) which must

1. Research the developer

see what amenities are available and more

be signed within a specified time agreed

importantly, see if they are up to standard.

in the LO. Note that 10% of purchase price

There is nothing more worrying than having

For example, the map might highlight a

must be paid upon signing the SPA. Loan

committed to a unit only to find out the

public park nearby, go have a little inspection

agreements will follow and your bank may

developer has a less than satisfying track

and see if it filled with families or if it is a

even prompt you to take out an insurance.

record. Most would be dazzled by the shiny

suspected addicts’ nest. Ask yourself, do I feel

A Memorandum of Transfer (MoT) or stamp

prospects and offers that they jump and

comfortable here, do I feel safe? Park yourself

duty will also be signed together with the SPA

commit to a deposit not full knowing of

in the area for an hour or two and get a feel

and will be submitted to the land office.

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hot topic

Benefits

2. Financing structure/promos

1. Locking in price

Buying off-plan property means buying

guarantees, even loan packages, to name

from the developer. Buyers may benefit

a few.

the form of rebates, lower deposits, free maintenance, stamp duty waivers, rental

The initial release of the off-plan property

from this as there will be more competitive

will be a good time to lock in prices. The

financing options and packages. One of

best thing about buying during this time is

the mechanisms deployed by developers

the ability to base the property on current

in previous years was the Developer

The best part of buying off-plan is selecting

market prices instead of future value, one

Interest Bearing Scheme (DIBS) where

your unit. The sense of excitement when

that will almost certainly increase by the

developers absorb the buyersâ&#x20AC;&#x2122; loan interest

picking out a place from a broad plan is

time it is completed. This is why off-plan

throughout the construction period.

tremendous. Whether you like corner lots,

properties attract plenty of speculators

Developers are no longer allowed to use

the ground floor, the fifth floor or right at

looking to flip and cash-in on capital

the DIBS following on announcement

the top in the penthouse, you have the

appreciation.

from the Prime Minister in Budget 2014.

final say. If you are extremely picky, you

That said, this has only allowed for more

can even opt for Feng Shui advice and pick

creative packages from the developers in

the best orientation for your unit - if you

3. Your choice

must.

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Disadvantages

2. Expectation VS reality

3. Not established

1. Non-completion

Artistic impressions, computer generated

Starting from the ground up means that

images and impressive floor plans sure

the location may not have a matured

When buying off the plan, there is a

looks a good part of a dream home but

community. This in turn may mean that

real risk that the project goes past the

can the developer deliver on the promise?

amenities and facilities are either lacking or

completion date. Or even worse, declared

There have been plenty of cases where

not available at all. With land space getting

abandoned. Buyers will fear the developer

buyers are left unsatisfied with the end

scarce in Kota Kinabalu city, developers

filing for bankruptcy before the project is

product. Cracked walls, crooked ceilings,

are looking at the outskirts to build, areas

completed. In the case this does happen,

defective doors and smaller built-up areas

which may not be easily accessed, have

will you be compensated? What guarantees

are some of the issues raised by buyers.

few schools, fewer commercial centres etc.

do you have? This would be the best time

This is why picking a reputable developer

These things might come into place one

to check your agreements. Better yet, make

with a good track record is recommended.

day but it will take awhile more before they

sure these clauses are in the agreements

When you find yourself in this situation,

actually pop up.

before you sign.

make sure to escalate the issue to the developers and have them address your problem ASAP.

www.PropertyHunter.com.my

featured EVENT

FEATURED EVENT  by Property Hunter

It’s a gelato kind of day! We all scream for ice...

Woohoo! Property Hunter held a

were treated to FREE gelatos! There were

Not a stranger to the developers, this was

developer’s gathering at 5 Degrees Celsius,

talks from Nippon Paint and of course the

our third developers’ gathering, with the

a gelato hub at Latitude 6 on 24 August.

cool people at Property Hunter, sharing on

first in B Side Café, Lido Plaza and second

Guests who attended the little gelato party

social media and its current trends.

in Inch Café, Perdana Park.

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FEATURED EVENT  by Property Hunter

PH Agents’ Gathering Knowledge sharing is caring.

We had our first Agent Gathering on 11

Realty and CPA Estate Agents.

August with none other than the jolly

treated to a free photoshoot session for their agent profiles. How cool is that!?

LaurelCap bunch - a first sharing experience

The agents were briefed on posting property

for us too.

listings on the Property Hunter website and

These are the first of many more agent

mobile app.

gatherings to come, so stay put and keep

To date, we’ve had 4 agent gatherings, with the other three from K.K Soo & Co., Marico

your eyes and ears open for this space. But that’s not all. The agents were also

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featured EVENT

FEATURED EVENT  by Property Hunter

SHAREDA’S first CEO Roundtable Conference 2017 Won’t be the last.

A CEO Roundtable Conference themed

According to him, the conference is important

The Chief Minister will talk on a topic

‘Survival. Sustainable. Succession’ was held

and timely for businesses to embrace the

entitled ‘History and Achievement in Sabah

at Magellan Sutera Harbour on 10 August

effect of changes and explore appropriate

Development’. Other speakers who presented

with Sabah’s Chief Minister Datuk Seri Musa

strategies to boost the development of the

their papers included, Vice President,

Haji Aman as one of the guest speakers.

real estate industry in the state.

Primary Market, Bursa Malaysia Berhad,

Organized by Sabah Housing and Real Estate

There were ten speakers including Sabah

LEAP Market), Managing Partner of Cheng &

Developers Association (SHAREDA), the

Chief Minister, Datuk Seri Musa Haji Aman

Co, Chartered Accountants Firm, Prof. Dato’

one-day conference served as a platform for

speaking on various topics. Director of

Chua Hock Hoo (Capitalism & IPO/REIT),

company bosses and corporate executives to

Strategy and Initiatives, Business Banking,

Executive Director of ASEAN Service Providers

gain and share knowledge and information.

Community Financial Service of Maybank

Confederation, Dr Chew Cheng Sim (How

Banking Bhd, Tan Kwang Miang delivered “The knowledge sharing is related on how to

Digital Economy Affects Properties), CEO of

his paper on the ‘Raising Capital for Bridging

face the new challenges brought by the (4th)

Square Fresco Solutions PTE LTD, Terrence

Finance and End Finance Issue’.

Tey (How to Become Property Developer

Hanita Othman (Listing on Bursa Malaysia

industrial revolution, focusing on the need to shift from the traditional way of doing

Chua himself gave the summary of the CEO

business to digitalization, and from handling

Roundtable issue while SHAREDA President,

financing to marketing issues,” said SHAREDA

Chew Sang Hai spoke about ‘Financial Issue

Deputy President, Datuk Chua Soon Ping.

and Challenges Facing Property Industry’.

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vi Apps), Country Head of GRAB Malaysia, Sean Goh (GRAB) and Country Head of Alipay Malaysia, Greta Gunawan (Barcode Payment Product).

FEATURED EVENT  by Property Hunter

Sabah International Surveyors’ Congress 2017 wraps up after 2 days of conference We came, we saw, we surveyed.

The 5th Sabah International Surveyors’

heated topics currently trending in the

construction technology. The Congress also

Congress 2017 organized by the Royal

industry such as Airbnb and its legally

held parallel 3 talks on the second day to

Institute of Surveyors Malaysia Sabah

- where DBKK represented by speaker

specifically address professionals like estate

Branch (RISM) titled “Property Investment

Stanley Chong Hon Chung, Director of City

agents, surveyors, and project managers.

Breakthroughs” officially ended yesterday

Planning Department Kota Kinabalu City

after 2 days of conference at Magellan Sutera

Hall explained that all Airbnb operations

RISM also organized its 35th Annual cum

Harbour.

fall under the Hotels and Lodging Houses

Installation Dinner concurrently with the

by-Laws and must comply to the regulation

congress on 21 August at Hakka Banquet Hall

The 2-day congress was officially launched by

or face action from DBKK. Other hot topics

where Sr Samuel Chong, now Immediate

Yg Berhormat Datuk Teo Chee Kang, Minister

include an update presentation on the much

Past President of RISM Sabah installed Sr

of Special Tasks for Sabah Chief Minister’s

talked about Tanjung Aru Eco Development

Raja Sundra Lingam @ Sunny Kelvin as the

Department and ran from 21 to 22 August.

by TAED Executive Director, Datuk Victor

new RISM Sabah Chairman for the 2017/2018

Paul and talks on property investments and

term.

The conference discussed some of the

Stanley Chong Hon Chung, Director of City Planning Department Kota Kinabalu City Hall explained that all Airbnb operations fall under the Hotels and Lodging Houses by-Laws and must comply to the regulation or face action from DBKK.

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featured EVENT

FEATURED EVENT  by Property Hunter

ACE 2017 to explore cross border real estate business synergy throughout Asean Aces of the arena.

The chair and secretariat of this year’s ASEAN

cross sell properties in other markets. This

and President of the Malaysian Institute of

Real Estate Network Alliance (ARENA),

will also help provide access to alternative

Estate Agents (MIEA), Eric Lim said “We are

the Malaysian Institute of Estate Agents

markets to address the current economic

grateful to our sponsors for their support

(MIEA), hosted the ARENA Convention and

uncertainties in the local property market.

and at ACE, there will be networking

Exhibition (ACE) 2017 for the first time in

opportunities and breakout sessions

Malaysia from 25th to 27th August 2017 at

Organizing Chairman and Secretary General

where attendees can discuss cross-cultural

Berjaya Times Square Hotel, Kuala Lumpur.

for ACE 2017, Soma Sundram said “ACE

business practices and understand the real

2017 is the best platform to connect with

estate business better”.

The ASEAN Real Estate Network Alliance

real estate practitioners from eight National

(ARENA) is a regional grouping of eight

real estate Associations such as Malaysia,

A number of themes were covered at the

National real estate associations across

Singapore, Philippines, Thailand, Indonesia,

event such as how to do cross border sales,

ASEAN with the aim of fostering greater

Vietnam, Cambodia, and Myanmar. With

using technology as the latest real estate

collaboration within the real estate fraternity.

intra-ASEAN trade valued at USD 305 billion

method to market properties, showcasing

in 2015, there are many opportunities

hotspots in Malaysia to attract foreign

With the theme “making friends and

to conduct property-related investment

investment, the performance of regional real

connecting business”, ACE 2017 aims

throughout the region”.

estate markets and how full liberalization

at supporting Malaysian real estate practitioners to look beyond borders and

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will affect the real estate service sector. Chairman of Council of Presidents for ARENA

FEATURED EVENT  by Property Hunter

Datuk Seri Michael Yam sees potential in Sabah market Like bees to honey.

We had the privilege to sit down with Datuk

hottest tourist destinations for the Chinese.

development plan for the extension

Seri Michael Yam after delivering his paper,

Datuk Seri Michael saw himself being

of the golf course. We would probably

“Invest Malaysia – Opportunities in Greater

entrusted into maintaining and further

add another 9 holes, if not 18 holes and

KL”, at the recent ARENA Conference in

enhancing the famous Borneo Golf and

surround it with more holiday villas, hotels

Kuala Lumpur last month. Having had a

Country Club in Bongawan, an 18-hole golf

of different star ratings”, he said.

successful 35-year career in the real estate,

course designed by Jack Nicklaus. With the influx of Chinese tourist, the

construction, and corporate sectors, we wanted to know what’s new in the egg

When asked why he took up a project in

economy will see a positive growth. Sabah

basket for him.

Papar, Datuk Seri Michael simply said “why

has received an all-time high of 3.43 million

not? Papar is a place to find peace and

tourist arrivals, equivalent to an estimated

Urban development, city planning and

tranquillity and with the golf course and

RM7.25 billion for the state economy. The

architecture are interests that has kept

villas surrounding it, it’s no surprise why the

future enhancement of Borneo Golf and

his passion for property development

Chinese tourist would want to come and

Country Club will only attract more visitors.

and real estate burning. He keeps himself

visit”. He also added that the Pan Borneo

busy by sitting on the boards of Invest

Highway will be a stone’s throw away

Over the period of July to September this

KL, Paramount Corporation, Standard

from the development, creating a sense of

year, it was noted that Kota Kinabalu is

Chartered Bank Malaysia Bhd and Malaysia

convenience for the tourists to go to and fro

expected to receive four charter flights

Airports Holdings Bhd.

the airport.

flying from Incheon, Korea and one charter flight from Tokyo, Japan.

As we all know, Kota Kinabalu is one of the

“We are looking into a more comprehensive

“We are looking into a more comprehensive development plan for the extension of the golf course. We would probably add another 9 holes, if not 18 holes and surround it with more holiday villas, hotels of different star ratings”

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MIEA to take easier approach to encourage more real estate agent sign ups Just do it!

“We are also trying to enhance our marketing platforms and with the ARENA conference, our members can learn cross border trading and build good relationships with our partners’ trade mission, educations, research data analysis and so forth”

During the recent ARENA Conference

are being promoted and sold to the

courses to enhance their knowledge on

in Kuala Lumpur on 25 and 26 August,

Chinese investors there. The Chinese’s

the property market in Malaysia and the

we managed to have a short coffee talk

buying power is strong and over the last

ASEAN countries.

session with the newly elected MIEA

2-3 years, Eric has managed to sell quite

President, Mr Eric Lim, on his agendas and

a reasonable amount of properties to the

“We are also trying to enhance our

goals for his presidential term.

Chinese locals.

marketing platforms and with the ARENA conference, our members can learn

Eric runs an estate agency. “I have 300 staff

“I’m banking on the China, Korea, Taiwan

cross border trading and build good

and 6 offices; 4 offices in Klang Valley, 1 in

and Hong Kong markets. We conduct 10-

relationships with our partners’ trade

Johor and 1 in Shanghai. We do agency

15 events there every month, selling high

mission, educations, research data

works, project marketing, international

end properties”.

analysis and so forth”, he added.

Australia, London into Malaysia, property

For his term as MIEA President, one of

A REA license can typically take up to 4-5

management, corporate real estate work,

Eric’s main objectives is to increase the

years to obtain. Eric’s goal is to encourage

valuation among others.

membership for Real Estate Agents (REA)

more East Malaysian negotiators to attend

saying that, “The stronger we are as a

the workshops an courses conducted by

He has been in the real estate business for

committee, the louder our voices can be

MIEA to prepare themselves to sit for the

20 years and has been a member in the

heard. We want to be authoritative and

licensing exam. According to BOVAEA, a

Board of Valuers for 9 years (1997 – 2006).

have good reputation and be of good

West Malaysian agent can set up his/her

liaison with government department/

office in East Malaysia with the condition

“I ended by tenure with the board in 2016

agencies namely BOVAEA, the customs

that the resident manager of the said

and was asked to head MIEA. I took my

department, Ministry of Finance etc”.

office is a local (East Malaysian) licensed

property – bringing in properties from

seating in 2017 to give back to profession and society – it’s like my National Service”,

agent. MIEA and it’s visions

he chuckled.

There are two types of education methods MIEA is all about enhancing their

to obtain a license. The first is attending

When asked about his office in China, Eric

professionalism in terms of conducting

tutorials conducted by respective MIEA

was quick to say that Malaysian properties

more programs, workshops, and short

offices around Malaysia. Once al tutorials

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have been conducted, the applicant can

the classes. We are working on getting

smaller agencies, saying that it’s a win-

then sit through the board exam, which

the approval from the ministry and

win situation for both the developer

consists of 12 papers

MQA to allow us to conduct distance

and small agencies.

learning”. The second method is attending

“We are also looking into online portal

courses and classes conducted by

Eric created a Membership Benefits

platforms to have a Co-Agency (co-

approved colleges or universities.

scheme where MIEA members can

broke) function whereby we can work

Applicants have the option of a diploma

enjoy an abundance of discounts from

together to enhance exposure and to

or an executive diploma which would

various vendors and operators. One

promote/market each other’s projects

have been regulated by MQA (Malaysia

of the attractive benefits is the 6%

faster”, he shared.

Qualifying Agency).

discount on buying a BMW car. MIEA is aggressively talking to other merchants,

Eric also shared that MIEA has a

All good things come to those who

gym operators, travel agents and many

subcommittee which conducts research

wait

more to attract potential members.

and surveys pertaining the property market outlook in Malaysia and that

“We are considering virtual learning so

He also added that the business

the findings are both shared with the

that more people will want to take up

development committee within

MIEA members and the members of the

REA. At the moment, I understand some

MIEA will talk to developers and then

public.

will fly to KL every weekend to attend

distribute the projects equally to

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SHAREDA expects property price to stabilize and remain stagnant Call off the doomsday party.

With land costs increasing higher than house

properties priced below RM400,000.

hospitality industry.

and market high rise and stratified tiny

“Most of these new launches will be of the

Chew said the overall volume of property

apartment at a price below RM350,000.

high rise stratified apartment due to high

transaction for Malaysia was showing a

land cost, given that development land has

downward trend and was expected to be

In giving his opening speech as SHAREDA

appreciated by about 500 per cent from 2009

stabilized in the beginning of 2018.

Nite’s themed dinner, SHAREDA’s President

to 2014”, added Chew.

value, most developers are forced to develop

He said the year 2016 also recorded the

Mr Chew Sang Hai said that eighty percent of the new launches are located on the west

“However from the year 2015 til now, the

highest percentage of total overhang units

coast with a substantial percentage of the

scenario had changed significantly due

at 18.37 percent for residential, shops and

buyers from the east coast

to many factors like tight credit control,

industrial properties.

the volume and value of transactions had On SHAREDA’s projection for the property

dropped significantly respectively as per

Additionally, Chew encouraged developers

market, Chew said the association expected

NAPIC report”, said Chew.

to explore alternative finances such as bond issuance, private equity finance or unlisted

the price to stabilize in the beginning and the volume of the transaction to remain

In every cloud there is a silver lining. This

real estate investment trust (REIT) to finance

stagnant.

goes without saying that the Sabah Property

their development business and real estate

Development Industry is not all gloomy and

investment.

He said the new launches by developers

discouraging. There is still a high demand

would be in the affordable range, with

for affordable properties and also in the

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FEATURED EVENT ď&#x201A;&#x201E; by Property Hunter

Virtual Reality at Property, Investment and Home Expo Come into our world.

The second Property, Investment and

their debut in this expo were SAM Properties

who were interested in signing up and

Home Expo (PIHex) of the year, organized

featuring The Colony; YBK Heights featuring

topping up their Virtual Dimension credits

by MaxxMedia Sdn Bhd was held from 1

1080 Residence and Kenwingston Sum Up

for later use were given an extra RM30 with

to 3 September at Imago Shopping Mall,

featuring Kenwingston Square Garden.

PH Rewards, which can also be found inside

Lower Ground Floor. Admission to this 3-day

the PH mobile app.

exhibition was free and opened to the public

This editionâ&#x20AC;&#x2122;s PIHex featured a special booth

from 10am to 10pm.

by Virtual Dimension, the first Virtual Reality

Ridesharing giant UBER also gave special

experience centre in Sabah. Visitors who

discounts to PIHex visitor who use the

Exhibitors showcased their latest

visited the expo were entitled to free trials

special code generated by the established

developments and providing a wide array of

at the VR station by simply downloading the

company. Users were entitled to 2 Free Rides

opportunities for homebuyers and investors

Property Hunter App and scanning their QR

worth RM5 each going to and from Imago

alike. Among the developers who made

code at the Property Hunter booth. Those

Shopping mall throughout the expo period.

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PROPERTY NEWS

65 New lease of life for Oceanus Waterfront Mall

71 KK to get changeable public transport system

66 AirBnb under hotels and lodging houses by-laws according to DBKK

72 Talks of retail glut slammed by SHAREDA President

67 AirBnb listings spiked to 130% in Malaysia

74 Condominium completed, delay in OC has left buyers displaced

68 Backpackers cry foul over Airbnb

76 Illegal developers negatively impacting Sabah

69 Sabah will be richest state in due course

78 Insignificant percentage of foreign investors

70 ITCC Shopping Mall soft launch and anchor tenant opening

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PROPERTY NEWS  By Property Hunter

New lease of life for Oceanus Waterfront Mall 1 Up.

The waterfront boardwalk is the most popular spot in the entire development attracting hundreds of locals and tourists every evening to witness one of the most beautiful sunset in the world.

A Tasty Change The management of Oceanus is working closely with Azmi & Co to improve the appeal of the mall. The developer of Oceanus has also been commissioned by DBKK to build a skybridge connecting Asia City to Centre Point and ultimately linking to Oceanus, which has started construction a few months back. Kota Kinabalu: Oceanus Waterfront Mall

The Kota Kinabalu City Waterfront

welcomes a new lease of life following the appointment of Azmi & Co (Sabah) Sdn Bhd

Completed in January 2015, Oceanus sits on

to lead the mall’s operation and leasing

one of the most coveted waterfront location

businesses with effect from September

right in the heart of Kota Kinabalu City.

2017.

Oceanus is a part of a mixed development known as “Kota Kinabalu City Waterfront”

Sunsea Pavilion Sdn Bhd confirms that the

(KKCW) which consists of a shopping mall,

appointment of Azmi & Co is part of their

a residential designer suite, a 5-star hotel as

key initiative to revive the seafront shopping

well as a waterfront boardwalk commanding

mall. Azmi & Co will be tasked to manage the

one of the most beautiful sunsets in the

daily operation of the mall, as well as to lead

world.

a leasing department to source new tenants for the mall.

The residential precinct known as Pelagos Designer Suite has obtained

Azmi & Co (Sabah) Sdn Bhd is a part of Azmi

OC in 1H2017. The suites are currently

Group of Companies which was established

undergoing renovation and is expected to be

in 2009. The firm provides property related

progressively handed over to the owners by

services in the areas of valuation, estate

end of this year.

agency, property management and consultancy services to developers.

The hotel block is managed by the internationally acclaimed Marriot Hotels &

Azmi & Co is led by Sr Wong Chaw Kok, who

Resorts. According to the developer, the hotel

is the resident director of Sabah. He has over

has undergone many rounds of structural

35 years of local experience and knowledge

changes due to the stringent requirement by

of the Sabah’s property market. The firm

the operator. However, it is now in its final

currently has the largest estate agency team

stage of interior furnishing which is expected

in the state achieving approximately RM180

to complete by 1Q2018.

million worth of sales in 2016.

Besides this, the soon to be completed Marriot Hotel and Pelagos Designer Suite are also expected to bring forth positive change to the development. Azmi & Co’s proposal is to turn Oceanus into a F&B haven specifically for the tourist. According to Ms Cyndi Liu, the head of estate agency at Azmi & Co, Kota Kinabalu is blessed with an influx of tourist. It is a natural move to develop Oceanus as the destination catered to the high spending tourist. Close to 40% of the mall is purpose-built for F&B outlets, particularly units facing the sea. Cyndi’s vision is to reposition the mall as a place where tourists and locals alike can go to savor all the good food Sabah has to offer under one roof. The sea facing units will be become a sunset alfresco where visitors can chill for a drink while watching the sun sets. Azmi & Co has gathered many positive responses from local F&B operators and is now working closely with the management on leasing matters. Interested parties are encouraged to contact Ms Cyndi Liu from Azmi & Co at 088-262291 for leasing enquiries. www.PropertyHunter.com.my

PROPERTY NEWS

PROPERTY NEWS  by Property Hunter

AirBnb under hotels and lodging houses by-laws according to DBKK You shall not pass!

DBKK will be looking to crack down

to lodgers shall abide to the Hotels and

as well as a health certificate in order to

on illegal AirBnb operations in Kota

Lodging Houses By-Laws 1966.

deem an AirBnb operation legal.

Director of City Planning Department

“Only land zoned for commercial or

All AirBnb operations not complying to

Kota Kinabalu City Hall.

commercial mixed-use area may be used

the regulations will be liable to action

as AirBnb,” Stanley says, adding that the

from DBKK according to Stanley. He does

Presenting a paper on AirBnb at the 5th

building plan and development plan

believe however, there is still a need

Sabah International Surveyors’ Congress

for AirBnb units must comply to Bomba

to review and create new regulations

in Sutera Harbour on 21 August, Stanley

technical requirements and standards.

specifically for AirBnb operations in Kota

said that DBKK considers AirBnb as

Under the Hotels and Lodging Houses By-

Kinabalu.

Lodging Houses which provide short-

Laws 1966, there must also be a grant of

term rental for sleeping accommodation

license by the city council to the operator

Kinabalu according to Stanley Chong,

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PROPERTY NEWS

PROPERTY NEWS  by Property Guru

AirBnb listings spiked to 130% in Malaysia Up, up and away.

“Travel and hospitality in Malaysia are showing no signs of slowing down, and we believe in working hand-in-hand with governments to develop fair regulation and taxation to help contribute to this positive and sustainable growth.”

our host community — and Malaysia is no exception,” said Kwok. “Travel and hospitality in Malaysia are showing no signs of slowing down, and we believe in working hand-in-hand with governments to develop fair regulation and taxation to help contribute to this positive and sustainable growth.” In clarifying reports that AirBnb guests caused damage to hosts’ properties, Kwok

CBR Online

AirBnb listings surged 130 percent yearon-year to around 18,000 in Malaysia as at July, revealed Robin Kwok, AirBnb Southeast Asia, Taiwan and Hong Kong country manager.

shared that of last year’s over 30 million during their travels.

trips, significant property damage claims

“Known for its rich culture and traditions, it’s

under its Host Guarantee programme only

not surprising that Malaysia is particularly

stood at 0.009 percent of stays.

popular and one of our top destinations in

reimbursed that cost more than US$1,000

Southeast Asia,” she said.

“At that rate, you could host a new

Malaysia increase 231 percent to 638,000 in

Although home-sharing services remain

years without expecting to file a significant

2016, reported The Edge.

unregulated in Malaysia, Kwok explained

property damage claim under our Host

that AirBnb “is having meaningful and

Guarantee.”

She noted that AirBnb saw guest arrivals in

reservation every single day for over 27

“Unsurprisingly, Kuala Lumpur is a huge

productive conversations with Malaysian

draw, with a 201 percent year-on-year

authorities, who are excited by the prospect

increase in inbound guest arrivals, but

of home-sharing and the benefits AirBnb is

people from all over the world are also

already bringing to tourism in Malaysia”.

more people are sharing their homes

as Ipoh, Cameron Highlands, Port Dickson

She explained that working closely with the

continue to take in robust profits with

and Lumut.”

government means that AirBnb wants to pay

consistently high occupancy rates”.

attracted to lesser-known tourist spots, such

taxes. And with the home sharing platform playing

On the issue that AirBnb is clashing with the hotel industry, Kwok noted that while today, “traditional hotels around the world

This comes as about 74 percent of AirBnb

a key role in Southeast Asia’s tourism

“We’re continuously working with

listings are “outside of traditional hotel

growth, Kwok said Airbnb can continue to

governments and policymakers around the

districts, so travellers get to experience

grow in Malaysia as tourists increasingly

world to expand our programme and find a

neighbourhoods that they otherwise would

look for unique and authentic experiences

proper way to collect fair tax revenue from

not have seen.”

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PROPERTY NEWS  by New Sabah Times

Backpackers cry foul over Airbnb Into the books!

“And now even the Customs officers are also unclear on the tax as they have left many questions unanswered during a seminar they organised here on last Monday,” awareness about the need to pay the tax as many foreign tourists has been caught unaware of the collection. “We were questioned as to why they have to pay double taxes (GST and tourism tax). And our staff have to explain to the guests profusely,” said Lee. “In fact, it is not our job to collect tax on behalf of the government. And we have to do the explanation and this has created a stressful working environment to our staff,” said Lee. The tourism tax which took effect this

unfair mechanism because in the long run, it

month has created an uneven playing

will certainly hurt our (backpacker operators)

field between the backpacker and Airbnb

businesses,” urged Lee.

tourism tax are still unable to run smoothly,

He also called on the Customs Department

have no problem.

operators.

Until now, he said the software for the but those who are doing manual registration

The Sabah Backpacker Operators Association

to organise a roadshow to explain to the

president Richie Lee said yesterday (4

hotels and accommodation operators the

September) although the Airbnb guests are

mechanism of the tourism tax.

be collected at the entry or exit points in

“The tourism tax hastily implemented

pay upon check-in at the hotels or other

without proper consultations from the

accommodations.

also subject to pay the tax but it is still unfair to the backpacker operators. “According to the regulations, the tax is only

tourism industry. “It should have followed the

applicable to Airbnb that have more than

concept of the GST, where the government

three rooms.

embarked on a roadshow to explain to the people before it was enforced,” said Lee.

“But, basically most of the Airbnb have three rooms because they are using the apartment

“And now even the Customs officers are also

units.

unclear on the tax as they have left many questions unanswered during a seminar they

“Meaning to say, the guests don’t have to pay

Sabah rather than asking the guests to

The tourism tax is only applicable to foreign tourists at a flat rate of RM10 per night per room for all types of hotels and accommodations. The Tourism Tax Act 2017 was tabled in Parliament in April this year but received

organised here on last Monday,” he added.

strong objection from the local hotel industry

The Customs officers should have at least

implementation to Mar 31, next year to let

the tax even though Airbnb operators also need to be registered,” pointed out Lee.

He still insisted that the tourism tax should

who insisted the government to defer the

give us the guideline when the tax was tabled

them honour their contractual agreements

And since backpackers are price sensitive

in Parliament in April this year, but they

that took effect in Apr 1, this year.

peoples, he said they would rather go to

waited until the last minute to give us the

Airbnb in order to save a bit of their travelling

details which was not complete, lamented

expenditures.

Lee.

according to the star rating of the hotel

He hoped the Customs will create more

one to three star (RM5) and RM2.50 (orchid

“I hope the government will look into this

The charges for the tax was initially classified whereby five-star is RM20; RM10 (four-star); and unrated).

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PROPERTY NEWS  by Daily Express

Sabah will be richest state in due course Don’t forget to share!

“So, it’s not right to say that the Federal Government has been neglecting us.” It is only a matter of time before Sabah becomes the richest and most developed State in the country, said Minister in the Prime Minister’s Department, Datuk Seri Abdul Rahman Dahlan. Together with neighbour Sarawak, he said the state even looks set to be the catalyst for national economic growth. He pointed out that the projection is not merely political rhetoric but one that is backed by official facts and figures. Visit Malaysia

The Minister in charge of the Economic Planning Unit (EPU) expressed confidence that under the leadership of Chief Minister Datuk Seri Musa Aman, who is regarded as the architect of the State’s economic growth, the goal is not impossible to achieve. “Give a bit more time to Musa and we’ll see Sabah becoming the most developed state in the country. This can happen. Indeed, the next wave of development in the country will be catalysed by Sabah and Sarawak,” he said when officiating Sepanggar Umno division delegates meeting on Saturday, 19 Aug. On this note, he slammed doomsday prophets particularly from the opposition for prophesying that Sabah is on the brink of economic collapse. Rahman, who is also Kota Belud Member of Parliament, argued that history can prove this is not the case. Disclosing figures, he pointed out that Sabah was a head above shoulders with the rest of the states when it recorded a 6.1 per cent economic growth in 2015, which was higher

than the country’s 5 per cent.

half of the population was poor” at 58 per cent.

Its annual spending budget that same year, he said, was second highest in the country

He argued that as poverty is relative, people

after Sarawak at RM4.12 billion.

need to learn to differentiate between livelihood cost and lifestyle cost.

“The next wave of the country’s development will come from Sabah and Sarawak,” he

Similarly, he said, there has been a huge

predicted.

increase in state reserves where in 2015 it had RM2.1 billion as compared with only RM80

He said people must realise where Sabah

million in 1976.

has come from economically by looking at history.

In 1972 he said Sabah’s annual revenue was RM176 million when its timber industry was

“Sabah’s economy grew 176 times bigger in

at its peak.

the span of 52 years from RM410 million in 1963 to RM70 billion two years ago.

“In 2015, it grew many times over to RM3.5 billion. We achieved this in 43 years whereas

“Household monthly income also grew 10

other countries took longer,” he said.

times from RM500 in 1976 to nearly RM5,000, 38 years later. This is something that we

Rahman added that Sabah also came only

should be proud of.”

behind Sarawak as the highest beneficiary of Federal Government funds at RM1.09 billion

Countering claims by the opposition that

in 2014.

Sabah is heading down the poverty route, Rahman said the poverty rate currently

“So, it’s not right to say that the Federal

stands at 3.9 per cent which is a huge

Government has been neglecting us.”

reduction to what it in 1976 when “more than

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PROPERTY NEWS

PROPERTY NEWS  by Property Hunter

ITCC Shopping Mall soft launch and anchor tenant opening Ready. Set. Launch.

“Having now completed the Shopping Mall, it is not the end of our task and time to relax. The real challenge now is to run and manage the shopping mall successfully.”

Yang Amat Berhormat Datuk Seri Panglima Musa Hj. Aman (Center) flanked by Datin Seri Panglima Sylvia Wong Siew Wah (Red Attire), Datuk Seri Panglima Clarence Bongkos Malakun, Ceasar Mandela Malakun and Alexander Hugo Malakun

ITCC Shopping Mall opened its doors to the

Completion for Phase 1A of ITCC Penampang

are very much determined to complete our

public with the Soft Launching officiated by

(which is the ITCC Shopping Mall) on the

project, even through tough times.

Sabah Chief Minister, YAB Musa today (25

30th of November 2016 and thereafter we

August). The soft launch also coincides with

secured the Occupation Certificate from the

“Having now completed the Shopping Mall,

the official opening of anchor tenant Bataras

Penampang District Council on the 15th of

it is not the end of our task and time to relax.

Hypermarket which was also officiated by

August 2017.”

The real challenge now is to run and manage the shopping mall successfully.”

the Chief Minister. The hypermarket occupies 34,000 sqft of space within the mall.

Datuk Seri Panglima Clarence Bongkos Malakun, Executive Chairman of Sabanilam

At the time of the launch, 8 retailers have

Ceasar Mandela Malakun, Group General

Enterprise Sdn Bhd said, “Today is

opened their doors for business while the

Manager of Sabanilam Enterprise Sdn Bhd

an important milestone for us, as this

“First Car Road Show” event is also underway

developer of ITCC expressed his gratitude

ceremony marks the completion of Phase

at the ITCC Exhibition Centre on the 1st Floor

during his speech, saying “We have come a

1 of ITCC Penampang. He expressed his

of the mall. ITCC which will consist a banquet

long way since we started. What was once a

joy in completing the mall saying, “We are

hall, an exhibition center, a hotel, MSC certified

10.5 acres plot of paddy field land is now a

only a small Bumiputera Developer from

office tower and commercial residences, held

1.68 million sqft commercial facility.

Penampang. We were born here and we

its groundbreaking ceremony on 28 March

live here, our ‘kampung halaman’, we have

2011.

“We obtained our Certificate of Practical

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no choice but to face the obstacles and we

PROPERTY NEWS  by The Star Online

KK to get changeable public transport system Hop on. Hop off.

“When I became the minister in charge of EPU, I made this a priority and there have been many discussions between Ministry of Finance, the state government and me (in this matter),”

The country’s first-ever public transport

from Inanam to downtown Kota Kinabalu and

“So I decided to go ahead with the BRT with

system that can be converted into a rail line

ending at the international airport.

the condition that it is an elevated system that

will be built here as part of a programme to

can be transformed into LRT track in future.

ease traffic in the state capital, said Minister

“I am excited about this,” he said, before

SPAD told me it could be done, technically.

in the Prime Minister’s Department Datuk

adding that the BRT was the brainchild of

So we do the BRT first while waiting for the

Abdul Rahman Dahlan.

Chief Minister Datuk Seri Musa Aman but was

population to get to a number that can justify

not a priority.

the need for an LRT,” he said.

transit (BRT) system that could eventually

“When I became the minister in charge of

Abdul Rahman said RM420mil would be spent

be transformed into a light rail transit (LRT).

EPU, I made this a priority and there have

to improve traffic flow along a 5km stretch of

He added that he would try to get the project

been many discussions between Ministry of

Jalan Sulaman between Indah Permai and the

implemented by 2018.

Finance, the state government and me (in this

Yayasan Sabah building, just north of the city.

He said the solution comprised a bus rapid

matter),” he said. “Elevated viaducts will be built for the BRT that

Another RM420mil, said Abdul Rahman, would

can be used for an LRT system in the future,

He explained that there were efforts to build

be used to build flyovers and expand Jalan

he added.

an LRT in Sabah, which is considered the best

Sulaman from four lanes to six.

solution for public transport in Kota Kinabalu, The BRT will be built in two phases, each

but the ridership in the city had not reached

costing about RM1bil, with the first running

the necessity for such a system.

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PROPERTY NEWS

PROPERTY NEWS  by Property Hunter

Talks of retail glut slammed by SHAREDA President Let’s go to the mall.

Owning and operating a mall is an

Development Sdn Bhd.

endearing task. It entails managing the

in the industry for long-term, not short-term, gain. They need to have strong sustainability

tenant mix, ensuring the property keeps

When asked about his opinion regarding

to overcome adverse market conditions and

up with trends, offering promotions, and

the matter, Chew simply said, “You can’t be

be competent.

ensuring a good footfall.

too quick to say the world will end because there’s an oversupply in the retail industry

“People always talk about the lack of

The economic downturn is another

and the property market is bad, because

demand but never the resilience of the

contributing factor preventing the realisation

that’s a poor exaggeration”, commented

malls.”

of grandiose development ideas. Sometimes,

Chew. Chew shared that the “super boom” of

the death of a mall is simply due to bad “There are only one or two commercial real

the real estate industry that happened

estate projects launched from now until

between 2009 and 2014, had encouraged

In response to the article, “Kota Kinabalu

2018. I believe that there won’t be any more

developments to sprout over the years and

Hit by Oversupply in Retail Space” posted

commercial developments in the years to

a popular segment was the shopping mall

by Free Malaysia Today on 28 August, we sat

come,” he said.

niche. He added that we are currently facing

urban planning and mall management.

with Director of Grand Merdeka Development

a “market problem” and not so much of a

Sdn Bhd cum SHAREDA President, Mr Chew

“The glut is not only in Kota Kinabalu, but

crisis similar to that in 1998. He explained

Sang Hai and his daughter, Ms Chew Fei

everywhere,” Chew said. “It is a challenging

that demand will pick up sooner rather than

Sean, General Manager of Grand Merdeka

industry to be in now. Developers must be

later as there will be no influx of retail space

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in the coming future which will in turn spike

“We’re not going to compete with the big

“While economic sentiments may be

demand.

brands established in KK City. We want to

dampened right now, it will definitely recover

cater for the lower income earners because if

in future.

“Demand can change overnight, supply

we don’t help them, who will. And of course,

cannot,” says Mr Chew in a firm manner.

by creating and expanding in the outskirts,

“If developers were to wait for the market to

you’ll have less competition and your focus

be up and running to start building, they will

will mainly be directed to the community that

lag behind competitors,” he says.

Catchment areas When asked, Fei Sean said, “The city has enough going on that’s why we decided to move out and cater for the niche market”, before adding that places like Australia and the United Kingdom cater to those living in the suburban areas by building shopping

surrounds your development”, she added.

Grand Merdeka holds all sorts of activities

Her optimism also stems from the future

every weekend since their opening in June

development plans for the integrated Grand

2017. There is, indeed, a lot of shopping malls

Merdeka project which will include the first

around Kota Kinabalu but these pockets of

elevated water theme park in the state.

development will take time to boom, given the current subdued market. There is no

malls, convenient stores etc. She explains

She believes the superstore, retail

doubt that in the years to come, with the

that it is unfair to paint everyone with the

warehouses and fast food drive-through

people’s confidence in mind, Grand Merdeka

same brush as there are a lot of factors that

scheduled for completion next year will

Mall will be successful.

differentiate one from another.

further lure visitors. As Mr Chew said, “it’s all about mall

“We know that the market is resilient, that’s

Moving away from the cliché

why we have our rent-free period to attract

management and survival of the fittest. If you have the capital and you’re threading your

the potential tenants to come. I don’t think

In a statement made in Focus Malaysia by

business carefully, of course, you can succeed

any developers have done this but we chose

CH William, Talhar & Wong’s Director (Sabah)

because by doing things right, you’re gaining

to do it because we want to gain our tenants’

Cornelius Koh, he agrees that the growing

the public’s confidence. And that’s a very

(and potential tenants’) trusts”, she said.

number of malls in Kota Kinabalu is a cause

important thing, public confidence”.

for concern, but he says that “property is not built overnight”. www.PropertyHunter.com.my

PROPERTY NEWS

PROPERTY NEWS  by Borneo Today

Condominium completed, delay in OC has left buyers displaced So near, yet so far.

Borneo Today

The Gardens at Bundusan is a tastefully

the Sabah Golf and Country are within

done residential development

easy reach of its residents. Despite having complied with all the

project undertaken by the SCLand

its construction last April 2017.

Group. Located within the district of

With a promise of a comfortable living

local authority’s requirements prior

Penampang, it is strategically placed

standard, buyers had flocked to be part of

to the commencement of the project

where commercial centres such as

the Gardens’ community. But it has been

and at the completion of the same, the

the Beverly Hills and Damai Centre,

nothing but ‘headache and heartache’

Penampang District Council has yet to

the Road Transport Department’s

for the purchasers of the condominiums

release the developer’s application for the

Headquarters, and landmarks such as

once SCland, the developer, completed

Occupancy Certificate (OC).

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“The PDC should be responsible and must act swiftly to resolve this mess as how could they have first approved a development such as the Gardens’when the question of the adjoining Road Reserve by a previous developer leading to the entrance of the new property has an issue or dispute which is unresolved.”

The PDC is insisting that SCLand seek the

to ensure no heartache to the buyers.

consent on the usage of the road reserve

pursuant to a development would be surrendered to the Council upon

from the developer of the adjoining land

“It is obvious that this is an administrative

even though the reserve road, situated

matter as a previous developer had

at Jalan Farmosa B, is a common road

already committed, and should have

He added: “I sincerely feel for the buyers

reserve adjoining the Garden’s Bundusan.

surrendered (to PDC) the common

as quite a number are now servicing their

road reserve adjoining to the Gardens’

bank loans but are unable to move into

A dialogue between SCLand and the

Bundusan several years ago when they

their units. They also have to pay (rentals)

property buyers concerning PDC’s delay

had completed their own development.”

for their existing houses.

completion of any Development.

on the OC ended in a stalemate. Darell Leiking, the Penampang Member

“The PDC and the DO Penampang

With no solution in sight, several buyers

of Parliament when commenting on the

should strive to find the quickest way

of the condominiums reached out to

Gardens dilemma, said, “The issue of the

to end this quagmire now especially

Pritchard Gumbaris, Parti Warisan Sabah’s

OC should be taken seriously by both

since we understand that the SCLand

Kapayan divisional chief to pour out their

the developer and more so, the PDC,

had complied with its Development

grievances.

its Chairperson and the PDC Executive

requirements. Mind you that the

Officer.

substantial amounts of money involved

When asked, Pritchard had this to say:

are quite exorbitant for the Buyers as well

“The issue of SCLand, seeking consent

“The PDC should be responsible and

as the potential rating payment losses for

from the adjoining land developer should

must act swiftly to resolve this mess as

the PDC.”

not materialise as it clearly shows that

how could they have first approved a

the road leading to the Gardens, Jalan

development such as the Gardens’when

Leiking said the PDC should relook at

Farmosa B, had been gazetted as a road

the question of the adjoining Road

the whole approval process and where

reserve.

Reserve by a previous developer leading

it had gone wrong, and how to expedite

to the entrance of the new property has

the issuance of the OC, stressing that the

an issue or dispute which is unresolved.”

longer the stalemate goes on, it would be

“Rationally, the OC should be issued out as SCLand has fulfilled all requirements.

a potential loss for Penampang, and could

Why only now, a last minute complication

Leiking said he would like to know how

to both the developer and the buyers?

the PDC would explain this situation,

The PDC should really look at the process

as per usual practice, all Road Reserves

deter further development in the district.

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PROPERTY NEWS

PROPERTY NEWS  by Property Hunter

Illegal developers negatively impacting Sabah Beware the pirates.

From left: SHAREDA Council Member, Ben Kong, SHAREDA Deputy President, Datuk Chua Soon Ping, SHAREDA President, Mr Chew Sang Hai, SHAREDA Vice President, Mr Wesley Chai and SHAREDA Council Member, Ms Chew Fei Sean

SHAREDA has noted that there are

naval base in Sepanggar, 20km from the

“We are not against any developments

many Digital Real Estate promotions

state capital.

or digital promotions here (in Sabah).

conducted overseas and on home “We checked with City Hall and found

developed, especially with tourism

of the industry in Sabah, SHAREDA is

there’d been no submission to the local

booming here recently,” said Chew

obligated to make some comments

authority for a project this size in the

before adding that potential buyers and

and advice potential purchasers and

area.

investors should be wary of such so-

investors in real estate purchase. In a press conference conducted by some of the SHAREDA members this morning (30 August), SHAREDA President Mr Chew Sang Hai raised his concerned on the unauthorised development, believed to be beside the

We are happy to see Sabah being

ground, Kota Kinabalu. As the Captain

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“The ad, in Chinese, claims the

called property developers.

development is taking place over 2,000

“We just want to see that every

acres of land.”

development conducted is carried

Chew said some of these companies are believed to be even carrying out their promotions overseas.

out in the correct manner and that all regulations/requirements have been complied with”.

“We, at SHAREDA, believe that it is our duty to work together to protect the investors’ interest but we are refrained from stopping the ‘unprofessionals’ from developing in KK and spoiling the industry”,

He also added for investors to engage

Khalifa in Dubai, Taipei 101, Eiffel Tower

development/other plans, he must

a local lawyer, accountant or DBKK to

in Paris and Tokyo Tower.

receive the written approval of the

verify if a development is authorised

Mayor of Kota Kinabalu City or Local

and permissible, especially if an

Strangely, according to their master

Authorities concerned in the district and

international developer.

plan, the iconic lookalikes the developer

all other relevant authorities.

plans to build are residential units Council member and Managing Director

instead of office towers, said the source.

of Riverson Corporation Sdn Bhd, Ben

3. After obtaining all the approvals, he can then sell the products to potential

Kong said that abandoned projects

“The area they say they want to develop

purchasers/investors by sell and

are an eyesore to the Kota Kinabalu

is bigger than Kuala Lumpur city,” said

build method subject to the following

landscape.

the source, adding the developer was

conditions:

looking for investors to fund the holiday “95% non Sabahans are involved in

concept of living.

abandoned projects. What happens to

a. Through normal Sales and Purchase Agreement (SPA) which is prepared by

these projects then? Tax payers’ money

Chew said there are stringent

the lawyers. If it is a residential project,

used to bail out these abandoned

regulations developers need to abide by

then he must apply for a housing

projects. It’s not fair, is it”, shared Ben.

before they can start construction work.

developer’s license and an advertising

“We, at SHAREDA, believe that it is our

“Developers must be the registered

duty to work together to protect the

landowners or should have entered into

investors’ interest but we are refrained

joint ventures with the landowners”, he

from stopping the ‘unprofessionals’

said.

from developing in KK and spoiling the industry”, he added.

Before the developer starts any

A source well-placed in a related

following conditions must comply:

property development business, the

industry supplied FMT with a photo of the “Sepanggar project” model in the “developer’s” office, said to be located off Jalan Tuaran.

1. He (the developer) must be the registered landowner or had entered into Joint Venture Agreement with the landowner.

The development model shows mockup buildings that look like the Petronas Twin Towers in Kuala Lumpur, Burj Al

2. Before he starts any construction works on the intended project and the

and sales permit from the Controller of Housing under the Ministry of Local Government and Housing, Sabah. b. If he is selling shares in the public company, then he must produce a prospectus approved by the Securities Commission of Malaysia and the Companies Commission of Malaysia. It is said that a security commission is harder to obtain if a legit prospectus is not presented. East Malaysia and West Malaysia both possess different laws but both laws must be complied with when developing in the respective regions.

“Developers must be the registered landowners or should have entered into joint ventures with the landowners”,

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PROPERTY NEWS

PROPERTY NEWS  by New Sabah Times

Insignificant percentage of foreign investors Uncle John, probably doesn’t own property here.

fed to the public and members of the media. “We would like to clarify that the statement made in the article is baseless because the facts listed are totally different. The value of properties is expensive here because more than 90% of our materials are imported materials. Sadly, we don’t produce our own materials. Our steel and cement are mainly imported from West Malaysia”, said Ben. Ben added that developers in West Malaysia would only need to pay RM12-13 for their bag of cement, whilst developers in Sabah would need to pay RM17 a bag. In a recent news article published today, the

0.2% in Sabah.

director of State Property Assessment and Services, Syed Anuar Syed Norddin, stated

“What this means is that, out of 1,000

that the real estate and landed property

transactions made in Sabah, only 2 are foreign

sector in Sabah was quite unique as its value

purchases. 95% of the remaining investors

grows so fast.

are surprisingly not from China, they’re from Brunei”, said Chew.

It seems there is some sort of a misunderstanding, as it is believed that the

Chew also took the opportunity to dictate

implausible value of real estates and landed

that over the last 5 years, only 300 foreigners

properties in Sabah was the second highest

applied for the Malaysia My Second Home

in the country last year due to the openness

(MM2H) Scheme. This means that on average,

of the state to foreign investors such as those

there are only 50-60 applicants per year in the

from Taiwan and China who have large capital,

whole of Sabah”.

causing land prices for all categories to be higher than in other regions.

The Sabah property market is driven by

Chaired by SHAREDA’s President, Mr Chew

SHAREDA has urged and encouraged the State

Sang Hai, the SHAREDA Council board held a

government to open up overhang properties

press conference at Magellan Sutera Harbour

to foreigners. According to an NAPIC report,

to address this matter to the members of the

at least 50% of properties are overhung post

public.

completion.

Chew, dispelled the statement and stated

“SHAREDA is here to exploit the means and

that the foreign investment is insignificant

measures to help overcome the 50% overhang

and does not contribute to the soaring

properties, especially high-end properties,”

property prices in Sabah. Research shows that

added Chew.

out of the total property transaction made throughout the whole of Malaysia, only 2-3% of it came from foreign investors, with 1% being invested in Iskandar, Johor Bahru and

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local demands, not foreign investments.

Ben Kong, SHAREDA Council Member and Managing Director of Riverson Corporation Sdn Bhd, said there are many misconceptions

It is also believed that Sabah doesn’t have good infrastructure, compelling most of the developers to do public infrastructures beyond their own development sites, which includes and not limited to improving main roads, upgrade water pipe systems, public drainage and more. In short, no developer would increase their property development prices unnecessarily in this sluggish economy. Developers are also facing dilemmas as they would need to comply with conducting earthquake resistance tests before starting their project development. “To compare an apple for an apple, if you take a development project in Mont Kiara and compare it with a development here in Sabah, we can say that the development cost here is 15-20% higher, yes, but that’s because we (the developers) have a higher capital contribution and in Sabah, we don’t control commodities”, said Ben. There are a lot of factors that are beyond a developer’s control. Ben commented that developers are bounded by certain restrictions and would not mark up a property price without a justifiable reason.

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APARTMENT FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

APARTMENT FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

APARTMENT FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

CONDO FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

CONDO FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

CONDO FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

CONDO FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

SEMI-DETACHED HOUSE FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

SEMI-D HOUSE FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

TERRACE FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

TERRACE FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

TERRACE FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

TERRACE FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

RESIDENTIAL FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

www.PropertyHunter.com.my

100