By Sharen Kaur (Published in NST on October 29 2009)SP SETIA Bhd, the country's biggest property developer, will develop a
RM2 billion mixed development project in XiaoShan, Hangzhou City in China, scheduled to begin in the first quarter of 2010.
This will be SP Setia's maiden project in China, in a joint venture (JV) with Chinese landowner, Hangzhou Ju Shen Construction Engineering Ltd (HJSCEL).
SP Setia, through its subsidiary Setia (Hangzhou) Development Co Ltd, holds a 55 per cent stake in the JV, while HJSCEL has a 45 per cent stake.
Work on the 10ha project will be completed in four phases over five years.
It features 11 residential towers, five office blocks, serviced apartments, a four-star hotel, a 300,000 sq ft retail mall and signature shops, said SP Setia president and chief executive officer Tan Sri Liew Kee Sin.
"We are awaiting for approvals from the Chinese authorities. We hope to get them by early 2010 and start Phase 1 of the project immediately," he said after the signing of the JV agreement with HJSCEL in Shah Alam, Selangor, yesterday.
The event was witnessed by Housing and Local Government Minister Datuk Kong Cho Ha.
"Phase 1 includes commercial properties and service apartments worth RM500 million," Liew said.
"We are not looking at borrowings as it is a self-funded project. We are developing the properties on a sell-and-build concept," he added.
However, it will retain the mall to control its tenant mix.
The service apartments will be pegged at RM400-RM500 per sq ft, while the commercial properties will go for RM500 per sq ft onwards.
"Our first income from this project will come in two years. The project will contribute positively to the future earnings and cash flow of SP Setia. It will also tell the world that we are ready to be an international property player," Liew said.
Liew said SP Setia is in talks with other landowners in China to form JVs, with priority to develop in Hangzhou.
He added that the company has a five-year plan to get 30 per cent of its net profit and revenue from overseas projects by 2014, from 2-3 per cent currently.
"We will focus on Vietnam and China for the next few years."
Friday, October 30, 2009
SunCity to take part in RM2.5b China project
By Sharen Kaur (Published in NST on October 28 2009)
SUNWAY City Bhd (SunCity) has signed a joint-venture agreement with Sino-Singapore Tianjin Eco-City Investment and Development Co Ltd (SSTEC) to undertake a RM2.5 billion mixed development in Tianjin, China.
However, implementation of the project is subject to a feasibility study.
The massive 3,000ha Tianjin Eco-City, which is worth several billion ringgit, will be developed in three phases from 2011.
SunCity will develop part of the second phase, covering 41ha, with SSTEC.
Sunway Group founder and chairman Tan Sri Dr Jeffrey Cheah said that a joint-venture company, led by SunCity, will be set up after the study is completed.
The joint-venture company will build bungalows, villas, semi-detached and terraced houses, high-rise residences and commercial properties, including a shopping mall, on less than 20ha. The rest will be kept green.
"We are very confident of this project as it is driven by the Chinese and Singaporean government. SSTEC has attracted the largest and best eco-developers in Asia. This proves the project will happen," said Cheah.
He was speaking at a press conference yesterday in Bandar Sunway, Selangor, after inking an agreement with SSTEC to carry out the study and market research, and to come up with a sustainable business model for the project within six months.
The developers include China's Shimao Group, Japan's Mitsui Fudosan and Taiwan's Farglory Group, which are involved in the first phase of Tianjin Eco-City.
"The main thing is to get the right product so the development can run.
The next six months is very crucial. We will plan the 41ha properly to come up with a sustainable, workable and viable development," Cheah said.
He added that the project will be funded by equity and bridging finance.
Part of the funding will also come from a real estate investment trust (REIT) that SunCity is planning to launch in the next one to two years.
SSTEC is the master developer of Tianjin Eco-City. It is a 50:50 joint venture between the Chinese consortium led by Tianjin TEDA Investment Holding Co Ltd and the Singapore consortium led by the Keppel group.
Tianjin Eco-City is a landmark bilateral project between China and Singapore with private-sector investment and development. When completed, it will have 26,500 households.
SSTEC chief executive officer Goh Chye Boon said it was targeting reputable developers from the project to work with when it embarks on new projects in China.
"We want to make sure Tianjin Eco-City is sustainable so we can replicate the development in other parts of China. We are looking for bigger land now," Goh said, adding that SunCity may be given more jobs in
Tianjin Eco-City.
He said SunCity may also be roped in to work on other projects that the Chinese and Singaporean consortiums are eyeing in China, Indonesia, Vietnam and India.
SUNWAY City Bhd (SunCity) has signed a joint-venture agreement with Sino-Singapore Tianjin Eco-City Investment and Development Co Ltd (SSTEC) to undertake a RM2.5 billion mixed development in Tianjin, China.
However, implementation of the project is subject to a feasibility study.
The massive 3,000ha Tianjin Eco-City, which is worth several billion ringgit, will be developed in three phases from 2011.
SunCity will develop part of the second phase, covering 41ha, with SSTEC.
Sunway Group founder and chairman Tan Sri Dr Jeffrey Cheah said that a joint-venture company, led by SunCity, will be set up after the study is completed.
The joint-venture company will build bungalows, villas, semi-detached and terraced houses, high-rise residences and commercial properties, including a shopping mall, on less than 20ha. The rest will be kept green.
"We are very confident of this project as it is driven by the Chinese and Singaporean government. SSTEC has attracted the largest and best eco-developers in Asia. This proves the project will happen," said Cheah.
He was speaking at a press conference yesterday in Bandar Sunway, Selangor, after inking an agreement with SSTEC to carry out the study and market research, and to come up with a sustainable business model for the project within six months.
The developers include China's Shimao Group, Japan's Mitsui Fudosan and Taiwan's Farglory Group, which are involved in the first phase of Tianjin Eco-City.
"The main thing is to get the right product so the development can run.
The next six months is very crucial. We will plan the 41ha properly to come up with a sustainable, workable and viable development," Cheah said.
He added that the project will be funded by equity and bridging finance.
Part of the funding will also come from a real estate investment trust (REIT) that SunCity is planning to launch in the next one to two years.
SSTEC is the master developer of Tianjin Eco-City. It is a 50:50 joint venture between the Chinese consortium led by Tianjin TEDA Investment Holding Co Ltd and the Singapore consortium led by the Keppel group.
Tianjin Eco-City is a landmark bilateral project between China and Singapore with private-sector investment and development. When completed, it will have 26,500 households.
SSTEC chief executive officer Goh Chye Boon said it was targeting reputable developers from the project to work with when it embarks on new projects in China.
"We want to make sure Tianjin Eco-City is sustainable so we can replicate the development in other parts of China. We are looking for bigger land now," Goh said, adding that SunCity may be given more jobs in
Tianjin Eco-City.
He said SunCity may also be roped in to work on other projects that the Chinese and Singaporean consortiums are eyeing in China, Indonesia, Vietnam and India.
KL Metro plans to launch projects worth RM300m
By Sharen Kaur (Published in NST on October 28 2009)
BOUTIQUE property developer Kuala Lumpur Metro Group will launch two resort developments and a housing project worth a combined RM300 million in Port Dickson, Bangi, and Penang, over the next eight months.
The low-profile group, which made a mark in property development when it launched its landmark project - the Legend International Water Homes in Port Dickson in 2003, is also planning to expand into China and
Vietnam.
"We are looking at resort developments in China and Vietnam. We believe there is a market for resort-type products. We have identified the local partners, but plans are still preliminary," said KL Metro managing
director Datuk Low Tak Fatt.
Locally, KL Metro will launch Phase 3 of the Legend Water Homes valued at RM45 million and 30 units of semi-detached houses in Bangi, worth RM25 million, by December.
By mid-2010, KL Metro will launch The Hibiscus in Penang, which features 460 units of five-star water homes at Teluk Kumbar.
The Penang development is worth some RM200 million and KL Metro is targeting buyers from Asia Pacific, Europe and the Middle East.
"Demand for water homes in Malaysia is greater than supply so we expect our projects to do very well," Low told a media briefing on the second phase of its Legend Water Homes in Kuala Lumpur yesterday.
Phase 2, which will open on November 1, offers 166 water homes, 44 garden chalets and 39 sky pool villas.
Priced from RM400,000 to RM700,000 each, some RM160 million or 99 per cent of the properties have been sold, Low said.
Majority of the buyers were from the Hong Kong, Singapore, Macau, the Middle East and some European countries, with an option to lease back at an 8 per cent gross rental income return a year.
Low said he expects 50 per cent occupancy in the first year, with average promotional room rates starting from RM550 per night to RM900.
He said KL Metro is aiming for occupancy to grow by 10 per cent per year via aggressive marketing.
"Despite the downturn of the economy and credit crunch worldwide, we still managed to complete Phase 2 three months ahead and sell all the units. We are proud of this development," Low said.
Phase 1, which has 329 units, was completed in 2006 and fully sold within two years.
The Balinese-themed resort took the "Best Architecture" and "Best Development" titles at the CNBC International Property Awards in London in 2007.
BOUTIQUE property developer Kuala Lumpur Metro Group will launch two resort developments and a housing project worth a combined RM300 million in Port Dickson, Bangi, and Penang, over the next eight months.
The low-profile group, which made a mark in property development when it launched its landmark project - the Legend International Water Homes in Port Dickson in 2003, is also planning to expand into China and
Vietnam.
"We are looking at resort developments in China and Vietnam. We believe there is a market for resort-type products. We have identified the local partners, but plans are still preliminary," said KL Metro managing
director Datuk Low Tak Fatt.
Locally, KL Metro will launch Phase 3 of the Legend Water Homes valued at RM45 million and 30 units of semi-detached houses in Bangi, worth RM25 million, by December.
By mid-2010, KL Metro will launch The Hibiscus in Penang, which features 460 units of five-star water homes at Teluk Kumbar.
The Penang development is worth some RM200 million and KL Metro is targeting buyers from Asia Pacific, Europe and the Middle East.
"Demand for water homes in Malaysia is greater than supply so we expect our projects to do very well," Low told a media briefing on the second phase of its Legend Water Homes in Kuala Lumpur yesterday.
Phase 2, which will open on November 1, offers 166 water homes, 44 garden chalets and 39 sky pool villas.
Priced from RM400,000 to RM700,000 each, some RM160 million or 99 per cent of the properties have been sold, Low said.
Majority of the buyers were from the Hong Kong, Singapore, Macau, the Middle East and some European countries, with an option to lease back at an 8 per cent gross rental income return a year.
Low said he expects 50 per cent occupancy in the first year, with average promotional room rates starting from RM550 per night to RM900.
He said KL Metro is aiming for occupancy to grow by 10 per cent per year via aggressive marketing.
"Despite the downturn of the economy and credit crunch worldwide, we still managed to complete Phase 2 three months ahead and sell all the units. We are proud of this development," Low said.
Phase 1, which has 329 units, was completed in 2006 and fully sold within two years.
The Balinese-themed resort took the "Best Architecture" and "Best Development" titles at the CNBC International Property Awards in London in 2007.
Tuesday, October 20, 2009
KTMB president raises net profit target to RM1m
By Sharen Kaur (Published in NST on October 9 2009)
THE new chief of Keretapi Tanah Melayu Bhd (KTMB) has raised the national railway company's net profit target this year to RM1 million, much higher than his predecessor's aim of just RM1.
President Dr Aminuddin Adnan, who started on August 1 this year, felt that the target could be met after a restructuring of KTMB's government loans and streamlining of operations.
KTMB expects capacity to increase by a quarter from next month, helped by its revamped commuter train schedule, he said in an interview with Business Times in Kuala Lumpur yesterday.
It will now run more trains in high-density sectors, increasing its current ridership of 100,000 a day by 10 per cent.
"We have a new organisation chart. We are streamlining our strategic business units and will reorganise KTMB to be more efficient in its service.
"I hope KTMB can deliver its results for better services, connectivity, collecting higher revenue and making money," Aminuddin said.
KTMB's previous managing director, Datuk Abd Radzak Abd Malek, who was in charge for less than a year after being terminated by the government in July, was targeting a RM1 net profit on revenue of RM400 million this year.
He wanted to improve business by cutting operating costs by 30 per cent.
He was also expecting RM200 million from the freight business, RM100 million from its KTM Komuter service and RM100 million from intercity rail service, property investment and advertisements.
The RM1 million net profit target by Aminuddin would be KTMB's first earnings in 14 years.
KTMB has been bleeding red ink since it was corporatised in 1992 due to high operating costs.
Nevertheless, it did make a net profit of RM9 million to RM15 million from 1993 to 1995, before falling into the red again in the following years.
In 2007, the group posted a net loss of RM116.1 million on revenue of RM349.2 million.
It is learnt that for 2008, KTMB posted an unaudited loss of around RM150 million on lower revenue.
KTMB is still suffering from high operating costs of around RM200 million a year despite efforts to lower expenditure by cutting manpower and stopping money-losing operations.
Aminuddin said KTMB was banking on new business from April next year, after taking delivery of the six-car electric train sets (ETS) from Korea.
The government had ordered five ETS two years ago for some RM250 million from Japan's Marubeni to service the Ipoh-Rawang double-tracks.
The first set will be delivered by next month, and the rest by February next year.
THE new chief of Keretapi Tanah Melayu Bhd (KTMB) has raised the national railway company's net profit target this year to RM1 million, much higher than his predecessor's aim of just RM1.
President Dr Aminuddin Adnan, who started on August 1 this year, felt that the target could be met after a restructuring of KTMB's government loans and streamlining of operations.
KTMB expects capacity to increase by a quarter from next month, helped by its revamped commuter train schedule, he said in an interview with Business Times in Kuala Lumpur yesterday.
It will now run more trains in high-density sectors, increasing its current ridership of 100,000 a day by 10 per cent.
"We have a new organisation chart. We are streamlining our strategic business units and will reorganise KTMB to be more efficient in its service.
"I hope KTMB can deliver its results for better services, connectivity, collecting higher revenue and making money," Aminuddin said.
KTMB's previous managing director, Datuk Abd Radzak Abd Malek, who was in charge for less than a year after being terminated by the government in July, was targeting a RM1 net profit on revenue of RM400 million this year.
He wanted to improve business by cutting operating costs by 30 per cent.
He was also expecting RM200 million from the freight business, RM100 million from its KTM Komuter service and RM100 million from intercity rail service, property investment and advertisements.
The RM1 million net profit target by Aminuddin would be KTMB's first earnings in 14 years.
KTMB has been bleeding red ink since it was corporatised in 1992 due to high operating costs.
Nevertheless, it did make a net profit of RM9 million to RM15 million from 1993 to 1995, before falling into the red again in the following years.
In 2007, the group posted a net loss of RM116.1 million on revenue of RM349.2 million.
It is learnt that for 2008, KTMB posted an unaudited loss of around RM150 million on lower revenue.
KTMB is still suffering from high operating costs of around RM200 million a year despite efforts to lower expenditure by cutting manpower and stopping money-losing operations.
Aminuddin said KTMB was banking on new business from April next year, after taking delivery of the six-car electric train sets (ETS) from Korea.
The government had ordered five ETS two years ago for some RM250 million from Japan's Marubeni to service the Ipoh-Rawang double-tracks.
The first set will be delivered by next month, and the rest by February next year.
EON Bank aims to lead mid-size pack
By Sharen Kaur (Published in NST on October 2009)
EON Bank Bhd's new chief says he plans to turn the country's seventh biggest lender by assets into a leader among its medium-sized banks.
Group chief executive officer (CEO) Michael Lor Chee Leng said he wants to grow hire purchase loans, home loans and loans to small- and medium-scale enterprises.
Lor told Business Times in an e-mail interview that he will also refine the group's investment banking offerings and make use of its treasury for additional sources of income.
"We recognise that we are a local bank in our origins and presence. But we will be one that offers Malaysians world-class services and products," he said.
Lor, who was previously EON Bank's head of group consumer banking, was promoted to the post of group CEO, filling the vacancy left by his predecessor Albert Lau Yiong, who retired earlier this year.
Lor joined EON Bank in February last year and was responsible for growing its consumer banking business.
He said EON Bank's consumer banking division could grow by 8 per cent this year, contributing around 5 per cent to a group-wide growth rate.
"We consider this quite positive given how the overall economy has been performing," Lor said.
The lender also has "healthy control" of non-performing loans (NPL).
"We continue to close the gap with the industry with our gross NPL ratio dropping to 4.5 per cent. The net NPL ratio now stands at 2.7 per cent and we have raised our loan loss coverage to over 80 per cent," he
said.
Lor, who has more than 20 years experience in the banking industry across Asean, was a worldwide director of banking solutions with Hewlett-Packard Asia-Pacific's financial service industry segment.
Prior to that, he was the executive vice-president and head of consumer banking at RHB Bank.
When asked if he would use the same strategies as his predecessor, Lor said there would be a few changes.
"I won't necessarily say I will have a different strategy compared to Lau. I think we should complete the few things we started, such as our Project Quantum Leap, and other transformation initiatives as a lot of good will come out of that.
"There are a few things that will be different. Some changes might come from my working style and personality. Other initiatives will be those that will seek to build on the progress and success we have already enjoyed thus far," Lor said.
What is important is that the bank focuses on its target customers first before it can consider grand ambitions, he added.
On plans to give EON Bank a new name to better reflect its aspiration, Lor said such a move was still pending.
"This requires approval from regulators. However, I can say that any rebranding effort must be complete from the inside out. A change of identity will be effective only if our internal personnel, products and processes can deliver on any brand promise.
"For us, a new identity will be the icing on the cake that has already been baked to perfection," he said.
EON Bank Bhd's new chief says he plans to turn the country's seventh biggest lender by assets into a leader among its medium-sized banks.
Group chief executive officer (CEO) Michael Lor Chee Leng said he wants to grow hire purchase loans, home loans and loans to small- and medium-scale enterprises.
Lor told Business Times in an e-mail interview that he will also refine the group's investment banking offerings and make use of its treasury for additional sources of income.
"We recognise that we are a local bank in our origins and presence. But we will be one that offers Malaysians world-class services and products," he said.
Lor, who was previously EON Bank's head of group consumer banking, was promoted to the post of group CEO, filling the vacancy left by his predecessor Albert Lau Yiong, who retired earlier this year.
Lor joined EON Bank in February last year and was responsible for growing its consumer banking business.
He said EON Bank's consumer banking division could grow by 8 per cent this year, contributing around 5 per cent to a group-wide growth rate.
"We consider this quite positive given how the overall economy has been performing," Lor said.
The lender also has "healthy control" of non-performing loans (NPL).
"We continue to close the gap with the industry with our gross NPL ratio dropping to 4.5 per cent. The net NPL ratio now stands at 2.7 per cent and we have raised our loan loss coverage to over 80 per cent," he
said.
Lor, who has more than 20 years experience in the banking industry across Asean, was a worldwide director of banking solutions with Hewlett-Packard Asia-Pacific's financial service industry segment.
Prior to that, he was the executive vice-president and head of consumer banking at RHB Bank.
When asked if he would use the same strategies as his predecessor, Lor said there would be a few changes.
"I won't necessarily say I will have a different strategy compared to Lau. I think we should complete the few things we started, such as our Project Quantum Leap, and other transformation initiatives as a lot of good will come out of that.
"There are a few things that will be different. Some changes might come from my working style and personality. Other initiatives will be those that will seek to build on the progress and success we have already enjoyed thus far," Lor said.
What is important is that the bank focuses on its target customers first before it can consider grand ambitions, he added.
On plans to give EON Bank a new name to better reflect its aspiration, Lor said such a move was still pending.
"This requires approval from regulators. However, I can say that any rebranding effort must be complete from the inside out. A change of identity will be effective only if our internal personnel, products and processes can deliver on any brand promise.
"For us, a new identity will be the icing on the cake that has already been baked to perfection," he said.
KTM to buy 4 used trains from Spain
By Sharen Kaur (Published in NST on October 19 2009)
KERETAPI Melayu Bhd (KTMB) plans to buy four second-hand two-car diesel multiple units (DMUs) from Spain for RM28 million.
The national railway company is believed to have opted for second-hand DMUs due to cash constraints.
A DMU is a multiple-unit train comprising multiple carriages powered by one or more onboard diesel engines.
The DMUs, which have been in operation for the past 30 years, are expected to be delivered in two months and be used as a stop-game measure to solve KTM's current commuter woes.
However, industry sources said KTMB should be buying new three-car electrical multiple units (EMUs) to be efficient, instead of second-hand DMUs.
An EMU is a multiple unit train consisting many carriages and powered by electricity. A new three-car EMU set costs RM18 million to RM20 million.
"More cost would be incurred to refurbish the DMUs after a few years in service," the source said.
The source added that for KTMB to be more productive, it should have 112 three-car EMUs, running on a 10-minute interval.
The company currently has 66 EMUs, including 16 which are beyond repairs, either because they have aged or were involved in accidents.
KTMB is overhauling the remaining 50 EMUs at an estimated cost of RM400 million to RM500 million.
It has overhauled 20 EMUs, which are in operation now. Another five EMUs are being refurbished and will be ready by the middle of next year.
KTMB president Dr Aminuddin Adnan told Business Times it is buying the DMUs to service the KTM commuter routes in the Klang Valley and later deploy them to high demand areas in the east coast.
"We are expanding our fleet of trains to improve our intercity, freight and commuter business. Currently, demand is higher than capacity," Aminuddin said.
He said KTMB's current ridership per day is 100,000, but this could increase by more than 15 to 20 per cent wi"h more trains running.
"We have customers, like YTL Cement and Lafarge Cement, increasing their business with us. So we do need trains. Second-hand trains are not only cheaper, they can also be delivered faster," he said.
"While we have government support, we are trying to expand first within our scope," Aminuddin said.
Aminuddin said by mid-2010, KTMB will have 34 trains running, from 20 EMUs currently.
This would include the five DMUs and five EMUs that are under refurbishment.
KERETAPI Melayu Bhd (KTMB) plans to buy four second-hand two-car diesel multiple units (DMUs) from Spain for RM28 million.
The national railway company is believed to have opted for second-hand DMUs due to cash constraints.
A DMU is a multiple-unit train comprising multiple carriages powered by one or more onboard diesel engines.
The DMUs, which have been in operation for the past 30 years, are expected to be delivered in two months and be used as a stop-game measure to solve KTM's current commuter woes.
However, industry sources said KTMB should be buying new three-car electrical multiple units (EMUs) to be efficient, instead of second-hand DMUs.
An EMU is a multiple unit train consisting many carriages and powered by electricity. A new three-car EMU set costs RM18 million to RM20 million.
"More cost would be incurred to refurbish the DMUs after a few years in service," the source said.
The source added that for KTMB to be more productive, it should have 112 three-car EMUs, running on a 10-minute interval.
The company currently has 66 EMUs, including 16 which are beyond repairs, either because they have aged or were involved in accidents.
KTMB is overhauling the remaining 50 EMUs at an estimated cost of RM400 million to RM500 million.
It has overhauled 20 EMUs, which are in operation now. Another five EMUs are being refurbished and will be ready by the middle of next year.
KTMB president Dr Aminuddin Adnan told Business Times it is buying the DMUs to service the KTM commuter routes in the Klang Valley and later deploy them to high demand areas in the east coast.
"We are expanding our fleet of trains to improve our intercity, freight and commuter business. Currently, demand is higher than capacity," Aminuddin said.
He said KTMB's current ridership per day is 100,000, but this could increase by more than 15 to 20 per cent wi"h more trains running.
"We have customers, like YTL Cement and Lafarge Cement, increasing their business with us. So we do need trains. Second-hand trains are not only cheaper, they can also be delivered faster," he said.
"While we have government support, we are trying to expand first within our scope," Aminuddin said.
Aminuddin said by mid-2010, KTMB will have 34 trains running, from 20 EMUs currently.
This would include the five DMUs and five EMUs that are under refurbishment.
Improve housing approval process
By Sharen Kaur (Published in NST on October 19 2009)
THE government should give incentives for first-time house buyers, review its policy on low-cost housing and improve the approval process, says YTL Land & Development Bhd.
These are some of the property developer's suggestions for the upcoming Budget 2010, which will be presented on Friday.
Currently, there are no incentives for first-time buyers although the industry has lobbied for it since last year.
Fiabci, an international real estate federation, has asked the government for grants of up to RM10,000.
YTL Land executive director Datuk Yeoh Seok Kian also held the view that the government should examine what he termed as unhealthy competition in the high-end residential market.
State firms like the Selangor State Development Corp (PKNS) are building houses priced at more than RM800,000 each.
He argued that PKNS should stick to providing social housing instead of competing with the private sector.
"This will certainly improve the overall well-being of deserving Malaysians faced with financial difficulties. A lot more can be provided for at the end of the day and the responsibility should not only fall on private developers," Yeoh told Business Times.
Under current policy, 30 per cent of a developer's residential project must be low-cost housing.
Yeoh also hopes that the government will improve the approval process for new development projects.
"This is one of the challenges we continue to face. While the government has acknowledged this as an issue with the set-up of the One-Stop Centre (OSC) in 2007, there should be better follow-through to ensure all parties are working towards the same intent," he said.
Yeoh said delays caused by unnecessary red tape and bureaucracy could be reduced with better enforcement and regulation.
"Ongoing reviews of policies can play a major role in helping the property sector stay robust and competitive," he added.
THE government should give incentives for first-time house buyers, review its policy on low-cost housing and improve the approval process, says YTL Land & Development Bhd.
These are some of the property developer's suggestions for the upcoming Budget 2010, which will be presented on Friday.
Currently, there are no incentives for first-time buyers although the industry has lobbied for it since last year.
Fiabci, an international real estate federation, has asked the government for grants of up to RM10,000.
YTL Land executive director Datuk Yeoh Seok Kian also held the view that the government should examine what he termed as unhealthy competition in the high-end residential market.
State firms like the Selangor State Development Corp (PKNS) are building houses priced at more than RM800,000 each.
He argued that PKNS should stick to providing social housing instead of competing with the private sector.
"This will certainly improve the overall well-being of deserving Malaysians faced with financial difficulties. A lot more can be provided for at the end of the day and the responsibility should not only fall on private developers," Yeoh told Business Times.
Under current policy, 30 per cent of a developer's residential project must be low-cost housing.
Yeoh also hopes that the government will improve the approval process for new development projects.
"This is one of the challenges we continue to face. While the government has acknowledged this as an issue with the set-up of the One-Stop Centre (OSC) in 2007, there should be better follow-through to ensure all parties are working towards the same intent," he said.
Yeoh said delays caused by unnecessary red tape and bureaucracy could be reduced with better enforcement and regulation.
"Ongoing reviews of policies can play a major role in helping the property sector stay robust and competitive," he added.
Thursday, October 8, 2009
RM28bil rail plan
By Sharen Kaur (Published in NST on October 9 2009)
PRIVATELY-HELD Global Rail Sdn Bhd and its partner from China have jointly submitted a RM28 billion proposal to develop a high-speed railway and inter-modal freight system in Malaysia, linking economic corridors to major airports and seaports.
Global Rail managing director Fan Boon Heng said the proposal was submitted on September 28 to the Ministry of Finance, the Economic Planning Unit and the Johor Menteri Besar.
The project is a private finance initiative (PFI) with China Infraglobe Consortium, a global infrastructure development and logistics specialist.
Fan said China Infraglobe has the financing in place to fully fund the project, which will be implemented in four phases over 10 years.
He said the financial mechanism will be crafted such that the local government will have a total cost capped for the whole project and risks will be allocated to the parties best able to manage them.
"It will free up the current government funds for public spending in other areas," he told Business Times in an interview.
Fan said the implementation of the project to lay electrified double tracks will start from Iskandar Malaysia in Johor.
Under the first phase, the parties involved will lay the tracks from Johor Baru to Gemas, while under Phase 2, the tracks will run from Gemas to Tumpat in Kelantan.
Phase 3 will start from Kluang, with connections to the KL International Airport, Port Klang and the Port Klang Free Zone (PKFZ) in Selangor.
The fourth phase will be from PKFZ to Perlis and up to the Thai border.
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"We will call for tenders for local participation on the civil works, building of stations and yard facilities after we get the green light from the government. China Infraglobe will work with a European group on the systems portion," Fan said.
The proposal is in line with the government's 2020 National Physical Plan on Transportation.
"This development plan will transform Malaysia into a regional logistics hub for Asean and be the southern gateway to the overland logistics rapid freight system for China and Europe," Fan added.
It is also expected to propel Keretapi Tanah Melayu Bhd into a major logistics and industrial corporation, enhancing and augmenting its role as a national rail and logistics services provider in passenger and freight services.
Global Rail, set up in July last year, was founded by Fan, who previously headed ABB Daimler-Benz Transportation and, later, Balfour Beatty Rail Sdn Bhd for over 15 years.
It already has jobs from Road Builder Sdn Bhd for electrification for a railway project in Batu Gajah, Perak, and from YTL Corp Bhd to supply automatic train protection system and railway point machines for its Sentul-Batu Caves railway project.
PRIVATELY-HELD Global Rail Sdn Bhd and its partner from China have jointly submitted a RM28 billion proposal to develop a high-speed railway and inter-modal freight system in Malaysia, linking economic corridors to major airports and seaports.
Global Rail managing director Fan Boon Heng said the proposal was submitted on September 28 to the Ministry of Finance, the Economic Planning Unit and the Johor Menteri Besar.
The project is a private finance initiative (PFI) with China Infraglobe Consortium, a global infrastructure development and logistics specialist.
Fan said China Infraglobe has the financing in place to fully fund the project, which will be implemented in four phases over 10 years.
He said the financial mechanism will be crafted such that the local government will have a total cost capped for the whole project and risks will be allocated to the parties best able to manage them.
"It will free up the current government funds for public spending in other areas," he told Business Times in an interview.
Fan said the implementation of the project to lay electrified double tracks will start from Iskandar Malaysia in Johor.
Under the first phase, the parties involved will lay the tracks from Johor Baru to Gemas, while under Phase 2, the tracks will run from Gemas to Tumpat in Kelantan.
Phase 3 will start from Kluang, with connections to the KL International Airport, Port Klang and the Port Klang Free Zone (PKFZ) in Selangor.
The fourth phase will be from PKFZ to Perlis and up to the Thai border.
"We will call for tenders for local participation on the civil works, building of stations and yard facilities after we get the green light from the government. China Infraglobe will work with a European group on the systems portion," Fan said.
The proposal is in line with the government's 2020 National Physical Plan on Transportation.
"This development plan will transform Malaysia into a regional logistics hub for Asean and be the southern gateway to the overland logistics rapid freight system for China and Europe," Fan added.
It is also expected to propel Keretapi Tanah Melayu Bhd into a major logistics and industrial corporation, enhancing and augmenting its role as a national rail and logistics services provider in passenger and freight services.
Global Rail, set up in July last year, was founded by Fan, who previously headed ABB Daimler-Benz Transportation and, later, Balfour Beatty Rail Sdn Bhd for over 15 years.
It already has jobs from Road Builder Sdn Bhd for electrification for a railway project in Batu Gajah, Perak, and from YTL Corp Bhd to supply automatic train protection system and railway point machines for its Sentul-Batu Caves railway project.
Tuesday, October 6, 2009
Bina Puri sees 20pc growth in net profit, revenue
By Sharen Kaur (Published in NST on October 5 2009)
BINA Puri Holdings Bhd expects net profit and revenue to grow by as much as 20 per cent in the current year, helped by some RM1.15 billion of new jobs it has won this year, and also from contributions of existing works.
It has RM2.4 billion worth of projects in hand, which have yet to be booked into its accounts, group managing director Tan Sri Tee Hock Seng said.
For fiscal 2008, Bina Puri posted a net profit of RM4.3 million on revenue of RM676 million.
Bina Puri has been profitable since its establishment in 1975 and its revenue has been growing steadily by 10 to 15 per cent, especially after listing in 1995.
Its net profit has always been single-digit, but Bina Puri is now aiming for double- digit earnings.
"This year would definitely be better for Bina Puri. The price of raw materials have stabilised and the projects in hand are starting to contribute significantly to our earnings. A lot of our projects are fast track," Tee told Business Times.
He said the most significant contribution in the future will be from its Kuala Lumpur-Kuala Selangor Expressway (KSE) project, which it expects to complete by mid-2011.
The company holds the design-and-build contract, worth almost RM1 billion, for the KSE Package 1 and 2 and it will start to contribute to earnings from 2015.
Bina Puri was founded by Dr Tony Tan Cheng Kiat, who is related to Tee, and his partner. Tee was roped into Bina Puri in 1983.
Both Tan and Tee hold 37 per cent of Bina Puri while Bumimaju Mawar Sdn Bhd, controlled by Tan Sri Tong Yoke Kim and son Datuk Andrew Tong So Han, holds 19.27 per cent stake.
Bina Puri started with a small building contract for the police station and staff quarters in Kepong for the Public Works Department.
It evolved from a class "BX" licence contractor to class "A" industry leader in September 1985.
The company expanded its business activities in 1995 to include property development, highway concessionaire, quarry operations, manufacturing of construction materials and polyurethane system house.
Its first overseas venture was in 1999 and it has since completed many highway and housing projects in India, China, Nepal and Thailand.
BINA Puri Holdings Bhd expects net profit and revenue to grow by as much as 20 per cent in the current year, helped by some RM1.15 billion of new jobs it has won this year, and also from contributions of existing works.
It has RM2.4 billion worth of projects in hand, which have yet to be booked into its accounts, group managing director Tan Sri Tee Hock Seng said.
For fiscal 2008, Bina Puri posted a net profit of RM4.3 million on revenue of RM676 million.
Bina Puri has been profitable since its establishment in 1975 and its revenue has been growing steadily by 10 to 15 per cent, especially after listing in 1995.
Its net profit has always been single-digit, but Bina Puri is now aiming for double- digit earnings.
"This year would definitely be better for Bina Puri. The price of raw materials have stabilised and the projects in hand are starting to contribute significantly to our earnings. A lot of our projects are fast track," Tee told Business Times.
He said the most significant contribution in the future will be from its Kuala Lumpur-Kuala Selangor Expressway (KSE) project, which it expects to complete by mid-2011.
The company holds the design-and-build contract, worth almost RM1 billion, for the KSE Package 1 and 2 and it will start to contribute to earnings from 2015.
Bina Puri was founded by Dr Tony Tan Cheng Kiat, who is related to Tee, and his partner. Tee was roped into Bina Puri in 1983.
Both Tan and Tee hold 37 per cent of Bina Puri while Bumimaju Mawar Sdn Bhd, controlled by Tan Sri Tong Yoke Kim and son Datuk Andrew Tong So Han, holds 19.27 per cent stake.
Bina Puri started with a small building contract for the police station and staff quarters in Kepong for the Public Works Department.
It evolved from a class "BX" licence contractor to class "A" industry leader in September 1985.
The company expanded its business activities in 1995 to include property development, highway concessionaire, quarry operations, manufacturing of construction materials and polyurethane system house.
Its first overseas venture was in 1999 and it has since completed many highway and housing projects in India, China, Nepal and Thailand.
Bina Puri working hard to fatten up its order book
By Sharen Kaur (Published in NST on October 5 2009)
BINA Puri Holdings Bhd, one of Malaysia's largest construction groups with RM4.2 billion jobs in hand, will continue to aggressively tender for new projects to sustain growth in earnings and bring the group to a higher level.
It has ongoing projects in Malaysia, Pakistan, Thailand, Brunei and Abu Dhabi, but is aiming for more work in the existing markets to keep its business in the local and overseas sectors moving, group managing director Tan Sri Tee Hock Seng said.
Tee said in an interview with Business Times recently that it will submit bids for construction projects worth more than RM2 billion a year.
Bina Puri, involved in construction, property, highway concession, quarry and manufacturing, is targeting public and private sector projects.
Locally, it is looking to bid for jobs from the new permanent low-cost carrier terminal (LCCT) in Sepang, the light rail transit (LRT) extension works, road and highway projects, housing and building construction.
"There are a lot more projects to award under the Ninth Malaysia Plan. Many have not been executed as a lot of time is spent negotiating and finalising details of the contracts with the relevant ministries, before the letters of award are issued," Tee said.
Tee said as the company will be finishing some of its projects in Pakistan, Abu Dhabi and Thailand over the next three to eight months, it is working hard to replenish its order book.
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Project in Abu Dhabi
Tee added that Bina Puri should be able to secure more than 30 per cent of the bids as its proposals are usually more competitive and it has strong networking.
He said the group has letters of intent for four projects now, worth RM410 million, and it is working to convert them into letters of award soon.
This year alone it has won projects in Malaysia, Brunei and Pakistan to the tune of RM1.15 billion. Its biggest win was a RM693 million job to build 2,000 houses in Brunei.
In 2006 and 2007, Bina Puri secured projects worth RM1.6 billion and RM1.42 billion respectively.
BINA Puri Holdings Bhd, one of Malaysia's largest construction groups with RM4.2 billion jobs in hand, will continue to aggressively tender for new projects to sustain growth in earnings and bring the group to a higher level.
It has ongoing projects in Malaysia, Pakistan, Thailand, Brunei and Abu Dhabi, but is aiming for more work in the existing markets to keep its business in the local and overseas sectors moving, group managing director Tan Sri Tee Hock Seng said.
Tee said in an interview with Business Times recently that it will submit bids for construction projects worth more than RM2 billion a year.
Bina Puri, involved in construction, property, highway concession, quarry and manufacturing, is targeting public and private sector projects.
Locally, it is looking to bid for jobs from the new permanent low-cost carrier terminal (LCCT) in Sepang, the light rail transit (LRT) extension works, road and highway projects, housing and building construction.
"There are a lot more projects to award under the Ninth Malaysia Plan. Many have not been executed as a lot of time is spent negotiating and finalising details of the contracts with the relevant ministries, before the letters of award are issued," Tee said.
Tee said as the company will be finishing some of its projects in Pakistan, Abu Dhabi and Thailand over the next three to eight months, it is working hard to replenish its order book.
Project in Abu DhabiTee added that Bina Puri should be able to secure more than 30 per cent of the bids as its proposals are usually more competitive and it has strong networking.
He said the group has letters of intent for four projects now, worth RM410 million, and it is working to convert them into letters of award soon.
This year alone it has won projects in Malaysia, Brunei and Pakistan to the tune of RM1.15 billion. Its biggest win was a RM693 million job to build 2,000 houses in Brunei.
In 2006 and 2007, Bina Puri secured projects worth RM1.6 billion and RM1.42 billion respectively.
Bina Puri wins RM185m job
By Sharen Kaur (Published in NSTon October 6 2009)
Bina Puri Holdings Bhd, one of the largest construction groups in the country, has won a RM185 million contract from Mayland View Sdn Bhd to build a 38-storey serviced apartment building in Jalan Kuching, Kuala Lumpur.
It beat companies like the China-listed Beijing Urban Constructive Group Ltd and local construction and engineering firm Setiakon.
The contract is the second biggest win for Bina Puri this year.
In March, the group won a RM693 million job to build 2,000 houses in Brunei.
The Mayland contract brings the value of new jobs in hand this year to RM1.4 billion, fattening its order book to nearly RM4.4 billion, with almost 60 per cent comprising unbilled sales.
In a filing to Bursa Malaysia yesterday, Bina Puri said it accepted the contract from Mayland, a unit of Mayland Group controlled by Tan Sri David Chu, on September 25.
The building, dubbed Regalia @ Jalan Sultan Ismail, has potential to generate gross development value of around RM600 million. It is scheduled for completion by early 2011.
The group will be paid progressively and the contract will start to contribute immediately to its bottom line, Bina Puri group managing director Tan Sri Tee Hock Seng said.
"This is our first win with Mayland. It was a tough bet and we went in very competitively with the intention to secure more work from Chu," Tee said in a telephone interview with Business Times.
"Apart from Mayland group, Chu is the major shareholder in Hong Kong's Far East Consortium and Land & General Bhd.
"We believe, in the longer term, we can get more contracts for new projects under the respective groups from Chu," Tee said, adding that Bina Puri wants to be less dependent on government projects, which take a longer time to be implemented.
Bina Puri Holdings Bhd, one of the largest construction groups in the country, has won a RM185 million contract from Mayland View Sdn Bhd to build a 38-storey serviced apartment building in Jalan Kuching, Kuala Lumpur.
It beat companies like the China-listed Beijing Urban Constructive Group Ltd and local construction and engineering firm Setiakon.
The contract is the second biggest win for Bina Puri this year.
In March, the group won a RM693 million job to build 2,000 houses in Brunei.
The Mayland contract brings the value of new jobs in hand this year to RM1.4 billion, fattening its order book to nearly RM4.4 billion, with almost 60 per cent comprising unbilled sales.
In a filing to Bursa Malaysia yesterday, Bina Puri said it accepted the contract from Mayland, a unit of Mayland Group controlled by Tan Sri David Chu, on September 25.
The building, dubbed Regalia @ Jalan Sultan Ismail, has potential to generate gross development value of around RM600 million. It is scheduled for completion by early 2011.
The group will be paid progressively and the contract will start to contribute immediately to its bottom line, Bina Puri group managing director Tan Sri Tee Hock Seng said.
"This is our first win with Mayland. It was a tough bet and we went in very competitively with the intention to secure more work from Chu," Tee said in a telephone interview with Business Times.
"Apart from Mayland group, Chu is the major shareholder in Hong Kong's Far East Consortium and Land & General Bhd.
"We believe, in the longer term, we can get more contracts for new projects under the respective groups from Chu," Tee said, adding that Bina Puri wants to be less dependent on government projects, which take a longer time to be implemented.
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