By Sharen Kaur
Published in NST, January 30 2010
PROPERTY developer Magna Prima Bhd (7617)will launch five projects, worth a combined RM1.2 billion, in the Klang Valley in the second half of the year.
Its chief executive officer Yoong Nim Chee expressed optimism of a pick-up in the property market and said the projects would be launched starting June or July.
They include the much-anticipated Magna Prima City, a RM400 million integrated development in Jalan Kuching, Kuala Lumpur, which will feature serviced apartments, retail mall and shop-offices.
"I believe the market is going to be stable. There is underlying strength in the market. We have people with money to spend. For us, it is going to be a very eventful year," Yoong told Business Times after the company's extraordinary general meeting in Batu Caves, Selangor, yesterday.
Magna Prima has formulated a five-year business plan, which will be assessed yearly.
"One of the strategies is to focus on high-value, low-residue developments and buy pockets of land, instead of huge landbank, so that holding cost is reduced. We want to sell everything we build for quick turnover," Yoong said.
Another project, costing RM100 million, will be developed in Section 16 in Shah Alam, Selangor. It will comprise a gated and guarded residential community of 300 terraced houses on about 7ha.
"This is a low-density development which we will launch in phases. We are going for terraced houses to maximise the land value," Yoong said.
Magna Prima is planning a similar residential project in Selayang, Selangor, which is expected to generate some RM250 million gross development value. It is buying 11ha for RM57 million for the project.
It also plans to launch a gated development in Bukit Jalil, Kuala Lumpur, of terraced and semi-detached houses, worth RM80 million. However, the project is pending completion of a sale and purchase agreement with Ho Hup Construction Sdn Bhd.
In Section 5 in Petaling Jaya, Selangor, Magna Prima will launch a lifestyle commercial project, valued at around RM300 million. There will be four- to five-storey shoplots, a boulevard and a neighbourhood mall.
The development, which may begin late this year or early next year, will take up about 3ha freehold land along Jalan Gasing, which the company bought for RM48.5 million.
"With all the projects lined up and the completion of existing ones, we hope to surpass our 2008 net profit and revenue this year," Yoong said.
In the nine months to September 30 2009, Magna Prima posted a net profit of RM6.4 million on revenue of RM179.3 million. In 2008, it made RM26.9 million net profit on RM280.6 million revenue.
-ENDS
Saturday, January 30, 2010
Wednesday, January 27, 2010
A curious Sime-Sunrise tie-up that makes sense
By Sharen Kaur
Published in NST, January 27 2010
IN AN industry where partnerships are rare, the tie-up between Sime Darby Property Bhd and Sunrise Bhd is interesting.
Big developers are not fond of working together because land is not something they can easily replenish but tie-ups are not uncommon if it serves their objectives.
In this case, the deal looks like a good fit.
Sime Property and Sunrise will work together to develop a RM1 billion project in Bukit Jelutong, Selangor. They will start next year and the development will span seven years.
Sime Property is known for its townships like Subang Jaya, USJ Heights and Ara Damansara to name a few.
Sunrise, on the other hand, has a good brand when it comes to high-end development with projects like Solaris Dutamas, Solaria Mont' Kiara and Plaza Mont' Kiara.
The biggest motivation for Sime Property is that it would be able to learn how to develop a thriving commercial and high-end property cluster.
"Bukit Jelutong has zero content for commercial. If you want to extract much higher value than what the location is worth, then clearly Sime may want to bring in Sunrise which could add value," said Kenanga Investment Bank Bhd head of research Yeonzon Yeow.
Sime Property may also be able to do the project faster with a partner. The second important factor is that the joint venture project could open up a new customer base for Sime Property.
While Sime Property caters to the middle to upper income group, Sunrise's customers are mainly those in the high-income bracket as well as foreigners.
And as for Sunrise, the deal gives it access to new land.
The group is looking to expand outside of its traditional geographic area in a bigger way as it has only 32ha left in Mont' Kiara.
Bukit Jelutong may be the best option for Sunrise as the township, launched in 1995, is a respectable address in one of Shah Alam's affluent neighbourhoods. The terraced houses are one of the highest priced in Shah Alam, analysts said.
Zerin Properties chief executive officer Previndran Singhe believes the project by Sime and Sunrise will do well.
"Sunrise has got a skill in product development. They did Solaris very well. Sunrise will analyse the market before they do anything.
"They are a trusted brand and have a good following. Whether they are in Mont' Kiara or Bukit Jelutong, they will have ready customers. It's about time Bukit Jelutong has a Sunrise brand," he said.
On what may be in store in Bukit Jelutong, Yeow said Sunrise could introduce a combination of Solaris Mont' Kiara and Solaris Dutamas, which, despite its expensive offerings, sold well in Mont' Kiara.
The only concern now, as the head of Sime Property put it, is whether the two companies have the "chemistry". That is likely to be something that would interest their rivals.
-ENDS-
Published in NST, January 27 2010
IN AN industry where partnerships are rare, the tie-up between Sime Darby Property Bhd and Sunrise Bhd is interesting.
Big developers are not fond of working together because land is not something they can easily replenish but tie-ups are not uncommon if it serves their objectives.
In this case, the deal looks like a good fit.
Sime Property and Sunrise will work together to develop a RM1 billion project in Bukit Jelutong, Selangor. They will start next year and the development will span seven years.
Sime Property is known for its townships like Subang Jaya, USJ Heights and Ara Damansara to name a few.
Sunrise, on the other hand, has a good brand when it comes to high-end development with projects like Solaris Dutamas, Solaria Mont' Kiara and Plaza Mont' Kiara.
The biggest motivation for Sime Property is that it would be able to learn how to develop a thriving commercial and high-end property cluster.
"Bukit Jelutong has zero content for commercial. If you want to extract much higher value than what the location is worth, then clearly Sime may want to bring in Sunrise which could add value," said Kenanga Investment Bank Bhd head of research Yeonzon Yeow.
Sime Property may also be able to do the project faster with a partner. The second important factor is that the joint venture project could open up a new customer base for Sime Property.
While Sime Property caters to the middle to upper income group, Sunrise's customers are mainly those in the high-income bracket as well as foreigners.
And as for Sunrise, the deal gives it access to new land.
The group is looking to expand outside of its traditional geographic area in a bigger way as it has only 32ha left in Mont' Kiara.
Bukit Jelutong may be the best option for Sunrise as the township, launched in 1995, is a respectable address in one of Shah Alam's affluent neighbourhoods. The terraced houses are one of the highest priced in Shah Alam, analysts said.
Zerin Properties chief executive officer Previndran Singhe believes the project by Sime and Sunrise will do well.
"Sunrise has got a skill in product development. They did Solaris very well. Sunrise will analyse the market before they do anything.
"They are a trusted brand and have a good following. Whether they are in Mont' Kiara or Bukit Jelutong, they will have ready customers. It's about time Bukit Jelutong has a Sunrise brand," he said.
On what may be in store in Bukit Jelutong, Yeow said Sunrise could introduce a combination of Solaris Mont' Kiara and Solaris Dutamas, which, despite its expensive offerings, sold well in Mont' Kiara.
The only concern now, as the head of Sime Property put it, is whether the two companies have the "chemistry". That is likely to be something that would interest their rivals.
-ENDS-
Sime Darby, Sunrise to develop RM1b project
By Sharen Kaur
Pulished in NST, January 27 2010
Sime Darby Property Bhd (Sime Property) is partnering Sunrise Bhd to develop a RM1 billion integrated commercial project in the Bukit Jelutong township in Selangor next year.
It is the first tie-up between Sime Property and Sunrise. Sime Property is known for its landed properties, while Sunrise is well known for its high-end projects in Mont'Kiara, Kuala Lumpur.
The deal means that both companies can take advantage of each other's strengths, Sime Property managing director Datuk Tunku Putra Badlishah Tunku Annuar said.
"We are always looking at ways to accelerate the land development with reputable and like-minded developers like Sunrise. This partnership will further enhance the value of properties at the township," he said after signing the joint-venture agreement in Bukit Jelutong, Shah Alam, yesterday. Sime Property has 14,800ha in Greater Klang Valley.
The two firms will have equal stakes in the joint-venture company, Baywood Avenue Sdn Bhd. They plan to build retail, shop-offices, office-suites and serviced apartments on some 8.4ha.
The project, located opposite Sime Darby Pavilion, will be developed in five phases over seven years, beginning next year.
The joint venture will buy the land from a subsidiary of Sime Property for RM118.1 million, or RM125 per sq ft.
Sunrise executive chairman Datuk Tong Kooi Ong said the vision is to develop sustainable, or green, properties that will appreciate in value.
Sime Property and Sunrise may even do more projects together.
"We have completed the first part of the marriage today. This means, going forward, things will be easier for us as we have already built a base here. If the project goes well and the chemistry is there, the joint venture could be extended," Tunku Putra Badlishah said.
It is learnt that Sunrise may want to partner Sime Property to develop pockets of land along the Guthrie Corridor Expressway.
Tunku Putra Badlishah also said that the project will be the first of many joint ventures Sime Property will be forming with reputable developers. It is already in talks with several other developers and may ink a second deal soon.
-ENDS-
Pulished in NST, January 27 2010
Sime Darby Property Bhd (Sime Property) is partnering Sunrise Bhd to develop a RM1 billion integrated commercial project in the Bukit Jelutong township in Selangor next year.
It is the first tie-up between Sime Property and Sunrise. Sime Property is known for its landed properties, while Sunrise is well known for its high-end projects in Mont'Kiara, Kuala Lumpur.
The deal means that both companies can take advantage of each other's strengths, Sime Property managing director Datuk Tunku Putra Badlishah Tunku Annuar said.
"We are always looking at ways to accelerate the land development with reputable and like-minded developers like Sunrise. This partnership will further enhance the value of properties at the township," he said after signing the joint-venture agreement in Bukit Jelutong, Shah Alam, yesterday. Sime Property has 14,800ha in Greater Klang Valley.
The two firms will have equal stakes in the joint-venture company, Baywood Avenue Sdn Bhd. They plan to build retail, shop-offices, office-suites and serviced apartments on some 8.4ha.
The project, located opposite Sime Darby Pavilion, will be developed in five phases over seven years, beginning next year.
The joint venture will buy the land from a subsidiary of Sime Property for RM118.1 million, or RM125 per sq ft.
Sunrise executive chairman Datuk Tong Kooi Ong said the vision is to develop sustainable, or green, properties that will appreciate in value.
Sime Property and Sunrise may even do more projects together.
"We have completed the first part of the marriage today. This means, going forward, things will be easier for us as we have already built a base here. If the project goes well and the chemistry is there, the joint venture could be extended," Tunku Putra Badlishah said.
It is learnt that Sunrise may want to partner Sime Property to develop pockets of land along the Guthrie Corridor Expressway.
Tunku Putra Badlishah also said that the project will be the first of many joint ventures Sime Property will be forming with reputable developers. It is already in talks with several other developers and may ink a second deal soon.
-ENDS-
Sunday, January 24, 2010
MK Land hits bump in turnaround efforts
By Sharen Kaur
Published in NST, January 23 2010
Plans to rejuvenate MK Land Holdings Bhd (8893) have hit a snag as three of its four chief operating officers (COOs) who were roped in to turn around the property development company are leaving.
It is understood that there is a dispute over management of the company, controlled by tycoon Tan Sri Mustapha Kamal Abu Bakar.
The three senior executives are R. Balasundram, Fatimah Wahab and Yusof Abu Othman, who together with Lau Shu Chuan were appointed as COOs in November 2008.
According to a source close to the company, Mustapha Kamal had recently appointed his eldest daughter as the company's executive director. However, he had also promised to promote others to higher positions.
The source said Fatimah will tender her resignation soon to move on to other prospects. Balasundram may still be involved in Emkay Group, which is Mustapha Kamal's privately-held outfit.
When contacted by Business Times, Fatimah confirmed that she is leaving MK Land by March, but declined to elaborate on her plans.
Yusof did not return calls for comment. Mustapha Kamal was also not available for comment.
The list of names bandied around to replace the departing three include Peter Teh Heng Poh, Mazrita Mazlan and Jaya Sangaran. Peter is currently Emkay COO while Mazrita and Jaya are the senior general managers.
MK Land had posted losses in 2007, the first time since its inception more than 10 years ago due to additional costs incurred to complete projects.
This happened after Mustapha stepped down as executive chairman in April 2007 to focus on his private companies.
He returned to helm MK Land in June 2008 in the hope of turning the company around by outlining a three-year plan to rejuvenate it.
This was when the four COOs, who were roped in from Emkay and Setia Haruman, were appointed.
Since then, MK Land has been able to make profits as it cut costs and boosted sales.
It posted a net profit of RM18.3 million in 2008 versus a net loss of RM61 million in 2007.
The source said MK Land may be in the red in the current financial year ending June 30 2010 unless it could strike a mega en-bloc sale soon.
For the first quarter ended September 30 2009, MK Land posted a net profit of RM1.2 million.
Under the leadership of the four COOs, MK Land was recording average sales of RM30 million per month, three times more than prior to their appointment.
"With the key people leaving, there is a possibility it will impact the company's performance," the source said.
-ENDS-
Published in NST, January 23 2010
Plans to rejuvenate MK Land Holdings Bhd (8893) have hit a snag as three of its four chief operating officers (COOs) who were roped in to turn around the property development company are leaving.
It is understood that there is a dispute over management of the company, controlled by tycoon Tan Sri Mustapha Kamal Abu Bakar.
The three senior executives are R. Balasundram, Fatimah Wahab and Yusof Abu Othman, who together with Lau Shu Chuan were appointed as COOs in November 2008.
The source said Fatimah will tender her resignation soon to move on to other prospects. Balasundram may still be involved in Emkay Group, which is Mustapha Kamal's privately-held outfit.
When contacted by Business Times, Fatimah confirmed that she is leaving MK Land by March, but declined to elaborate on her plans.
Yusof did not return calls for comment. Mustapha Kamal was also not available for comment.
The list of names bandied around to replace the departing three include Peter Teh Heng Poh, Mazrita Mazlan and Jaya Sangaran. Peter is currently Emkay COO while Mazrita and Jaya are the senior general managers.
MK Land had posted losses in 2007, the first time since its inception more than 10 years ago due to additional costs incurred to complete projects.
This happened after Mustapha stepped down as executive chairman in April 2007 to focus on his private companies.
He returned to helm MK Land in June 2008 in the hope of turning the company around by outlining a three-year plan to rejuvenate it.
This was when the four COOs, who were roped in from Emkay and Setia Haruman, were appointed.
Since then, MK Land has been able to make profits as it cut costs and boosted sales.
It posted a net profit of RM18.3 million in 2008 versus a net loss of RM61 million in 2007.
The source said MK Land may be in the red in the current financial year ending June 30 2010 unless it could strike a mega en-bloc sale soon.
For the first quarter ended September 30 2009, MK Land posted a net profit of RM1.2 million.
Under the leadership of the four COOs, MK Land was recording average sales of RM30 million per month, three times more than prior to their appointment.
"With the key people leaving, there is a possibility it will impact the company's performance," the source said.
-ENDS-
Thursday, January 14, 2010
Gadang gets work on new LCCT
By Sharen Kaur
Published in NST, Jan 13 2010
Construction company Gadang Holdings Bhd (9261) has won a RM291 million contract to build a runway and taxiways for the RM2 billion new low-cost carrier terminal (LCCT) at the KL International Airport (KLIA) in Sepang, Selangor.
The contract includes site preparation, earthworks and main drainage for the 4km Runway 3.
Gadang beat seven companies, including WCT Bhd and Sunway Holdings Bhd, for the job.
It told Bursa Malaysia yesterday that it would start work next month and complete it by December.
Gadang expects the contract to contribute positively to its earnings and net assets in financial years ending May 31 2010 and 2011.
"This is a fast-track contract. We are proud to win it after losing out on an earlier bid," Gadang managing director Tan Sri Kok Onn told Business Times.
It is the second contract awarded by Malaysia Airports Holdings Bhd (MAHB) under the RM2 billion project.
Last month, the airport operator awarded WCT a RM363 million contract for works that include site preparation, earthworks and main drainage.
A third contract to build the main terminal building is in the tender stage.
Kok said Gadang was working to submit a bid for the third contract, worth some RM1.2 billion. The job involves design, construction, testing, commissioning and maintaining the main terminal building, skybridge and piers.
The new LCCT is the single largest private finance initiative building project under the infrastructure allocation of the second stimulus package.
Other companies which submitted bids for various packages were IJM Corp Bhd, Ireka Corp Bhd, Fajarbaru Builder Group Bhd, Bina Puri Holdings Bhd and Mudajaya Group Bhd.
PJI Holdings Bhd plans to provide mechanical and electrical engineering services for RM500 million.
The new LCCT will be 1.5km away from KLIA's main terminal compared with 20km for the existing LCCT.
It will be linked to KLIA's main terminal building via the Express Rail Link.
The new LCCT, scheduled to be completed by the third quarter of next year, will cater for 30 million passengers a year, with potential to expand capacity to handle 45 million passengers.
Published in NST, Jan 13 2010
Construction company Gadang Holdings Bhd (9261) has won a RM291 million contract to build a runway and taxiways for the RM2 billion new low-cost carrier terminal (LCCT) at the KL International Airport (KLIA) in Sepang, Selangor.
The contract includes site preparation, earthworks and main drainage for the 4km Runway 3.
Gadang beat seven companies, including WCT Bhd and Sunway Holdings Bhd, for the job.
It told Bursa Malaysia yesterday that it would start work next month and complete it by December.
Gadang expects the contract to contribute positively to its earnings and net assets in financial years ending May 31 2010 and 2011.
"This is a fast-track contract. We are proud to win it after losing out on an earlier bid," Gadang managing director Tan Sri Kok Onn told Business Times.
It is the second contract awarded by Malaysia Airports Holdings Bhd (MAHB) under the RM2 billion project.
Last month, the airport operator awarded WCT a RM363 million contract for works that include site preparation, earthworks and main drainage.
A third contract to build the main terminal building is in the tender stage.
Kok said Gadang was working to submit a bid for the third contract, worth some RM1.2 billion. The job involves design, construction, testing, commissioning and maintaining the main terminal building, skybridge and piers.
The new LCCT is the single largest private finance initiative building project under the infrastructure allocation of the second stimulus package.
Other companies which submitted bids for various packages were IJM Corp Bhd, Ireka Corp Bhd, Fajarbaru Builder Group Bhd, Bina Puri Holdings Bhd and Mudajaya Group Bhd.
PJI Holdings Bhd plans to provide mechanical and electrical engineering services for RM500 million.
The new LCCT will be 1.5km away from KLIA's main terminal compared with 20km for the existing LCCT.
It will be linked to KLIA's main terminal building via the Express Rail Link.
The new LCCT, scheduled to be completed by the third quarter of next year, will cater for 30 million passengers a year, with potential to expand capacity to handle 45 million passengers.
Gadang upbeat, plans new projects
By Sharen Kaur
Published in NST, Jan 11 2010
DEVELOPER and construction firm Gadang Holdings Bhd (9261)is upbeat on the property outlook for this year and planning several new developments in the Klang Valley.
Managing director Tan Sri Kok Onn said the company has 46ha of prime land in the Klang Valley, Penang and Johor for development.
Kok told Business Times that he was expecting the landbank to generate a gross development value exceeding RM700 million over the next five years.
He said the company, through development arm Gadang Land Sdn Bhd, will build medium- to high-end houses, condominiums, offices and shoplots.
Kok declined to give specifics as the projects were still in the planning stage.
"We are optimistic of the industry but will remain cautious, especially with our high-end developments, as people are still careful with their money," he said.
Gadang's ongoing developments are mostly priced in the medium range.
They include retail, office suites and three-storey superlink homes in Segambut, Kuala Lumpur; medium- and low-medium-cost apartments in Sungai Buloh, Selangor; and single-storey terraced houses and single-storey semi-detached houses in Rawang, Selangor.
However, Gadang will be moving to the Mines area in Seri Kembangan, Serdang, within the next 12 to 15 months to develop seven super-luxury bungalows, worth a combined RM40 million, or more than RM5 million each.
The bungalows will be built on 74.8 sq ft of leasehold vacant land offered by a boutique developer in Mines.
"We are working on the designs and layouts. We hope to launch the units by the end of this year or early next year," Kok said.
Gadang's wholly-owned unit, Gadang Engineering (M) Sdn Bhd (GESB), will secure the land from Bluwater Development Bhd (formerly Mines Resort Bhd) as contra for debts owed by the latter.
Bluwater owes GESB some RM34 million for completing main building works two years ago for a commercial block and a tower featuring offices, serviced apartments, shoplots and facilities in Mines.
Bluwater is a unit of Clearwater Group, controlled by Dian Lee Cheng Ling, eldest daughter of property tycoon Tan Sri Lee Kim Yew.
Published in NST, Jan 11 2010
DEVELOPER and construction firm Gadang Holdings Bhd (9261)is upbeat on the property outlook for this year and planning several new developments in the Klang Valley.
Managing director Tan Sri Kok Onn said the company has 46ha of prime land in the Klang Valley, Penang and Johor for development.
Kok told Business Times that he was expecting the landbank to generate a gross development value exceeding RM700 million over the next five years.
He said the company, through development arm Gadang Land Sdn Bhd, will build medium- to high-end houses, condominiums, offices and shoplots.
Kok declined to give specifics as the projects were still in the planning stage.
"We are optimistic of the industry but will remain cautious, especially with our high-end developments, as people are still careful with their money," he said.
Gadang's ongoing developments are mostly priced in the medium range.
They include retail, office suites and three-storey superlink homes in Segambut, Kuala Lumpur; medium- and low-medium-cost apartments in Sungai Buloh, Selangor; and single-storey terraced houses and single-storey semi-detached houses in Rawang, Selangor.
However, Gadang will be moving to the Mines area in Seri Kembangan, Serdang, within the next 12 to 15 months to develop seven super-luxury bungalows, worth a combined RM40 million, or more than RM5 million each.
The bungalows will be built on 74.8 sq ft of leasehold vacant land offered by a boutique developer in Mines.
"We are working on the designs and layouts. We hope to launch the units by the end of this year or early next year," Kok said.
Gadang's wholly-owned unit, Gadang Engineering (M) Sdn Bhd (GESB), will secure the land from Bluwater Development Bhd (formerly Mines Resort Bhd) as contra for debts owed by the latter.
Bluwater owes GESB some RM34 million for completing main building works two years ago for a commercial block and a tower featuring offices, serviced apartments, shoplots and facilities in Mines.
Bluwater is a unit of Clearwater Group, controlled by Dian Lee Cheng Ling, eldest daughter of property tycoon Tan Sri Lee Kim Yew.
Gadang sends in RM300m bid for LCCT runway job
By Sharen Kaur
Published in NST, Jan 5 2010
GADANG Holdings Bhd (9261) has submitted a RM300 million bid to construct a 4km long runway for the RM2 billion low-cost carrier terminal (LCCT) project in Sepang, Selangor.
Managing director Tan Sri Kok Onn told Business Times that the firm expects to know within the next two weeks if it is successful in the tender.
Kok also said Gadang has submitted a bid to Malaysia Airports Holdings Bhd (MAHB) to construct the terminal building at the new LCCT for about RM1 billion.
"We lost out to WCT for the first package but that did not deter us from bidding for the remaining packages.
WCT Bhd clinched the first package, worth around RM363 million, from MAHB in December last year for works that include site preparation, earthworks and main drainage.
"While the bids have become very competitive, we hope to get a slice of the cake based on our track record," Kok said.
The new LCCT, located 1.5km from the Kuala Lumpur International Airport, is scheduled to be completed by third quarter of 2011.
It is expected to cater to 30 million passengers yearly, with capacity for up to 45 million passengers a year.
The LCCT is the single largest private finance initiative building project under the infrastructure allocation of the second stimulus package.
Other companies which have submitted bids for the project are IJM Corp Bhd, Ireka Corp Bhd, Fajarbaru Builder Group Bhd, Bina Puri Holdings Bhd, Sunway Holdings Bhd and Mudajaya Group Bhd.
PJI Holdings Bhd, meanwhile is keen to provide mechanical and electrical engineering services for RM500 million.
Published in NST, Jan 5 2010
GADANG Holdings Bhd (9261) has submitted a RM300 million bid to construct a 4km long runway for the RM2 billion low-cost carrier terminal (LCCT) project in Sepang, Selangor.
Managing director Tan Sri Kok Onn told Business Times that the firm expects to know within the next two weeks if it is successful in the tender.
Kok also said Gadang has submitted a bid to Malaysia Airports Holdings Bhd (MAHB) to construct the terminal building at the new LCCT for about RM1 billion.
"We lost out to WCT for the first package but that did not deter us from bidding for the remaining packages.
WCT Bhd clinched the first package, worth around RM363 million, from MAHB in December last year for works that include site preparation, earthworks and main drainage.
"While the bids have become very competitive, we hope to get a slice of the cake based on our track record," Kok said.
The new LCCT, located 1.5km from the Kuala Lumpur International Airport, is scheduled to be completed by third quarter of 2011.
It is expected to cater to 30 million passengers yearly, with capacity for up to 45 million passengers a year.
The LCCT is the single largest private finance initiative building project under the infrastructure allocation of the second stimulus package.
Other companies which have submitted bids for the project are IJM Corp Bhd, Ireka Corp Bhd, Fajarbaru Builder Group Bhd, Bina Puri Holdings Bhd, Sunway Holdings Bhd and Mudajaya Group Bhd.
PJI Holdings Bhd, meanwhile is keen to provide mechanical and electrical engineering services for RM500 million.
Global Offshore tipped to win Petronas deal
By Sharen Kaur
Published in NST, Jan 11 2010
New York-listed Global Industries, a US$3 billion (RM10 billion) oil company, is expected to get a contract worth RM350 million from Petroliam Nasional (Petronas) Bhd, breaking an area dominated by SapuraCrest Petroleum Bhd (8575) for the last five years.
Sources said the contract is to lay oil and gas pipelines between platforms in shallow waters across Malaysia, from March this year.
Business Times understands that the contract will be awarded to Global Industries' local subsidiary, Global Offshore Malaysia Sdn Bhd, sometime this month.
The duration is for three years up to 2012, with options for two further extensions of one year each. The value of US$100 million (RM338 million) is for works for the first year.
Global Offshore will use the derrick lay barge DLB 264, owned by its parent company, for the works.
It is also believed, Kencana Petroleum Bhd, controlled by Datuk Mokhzani Mahathir will get a share of the pie as it will take a stake in Global Offshore.
"Kencana will buy 45 per cent of the company and the vessel. They are ironing out the details with Global Offshore to strike a deal soon," industry sources said.
Industry estimate for a vessel of similar specification and age like the DLB 264 is around US$50 million (RM169 million).
This is one of five transportation and installation packages to be awarded by Petronas.
Last month, SapuraCrest's wholly-owned unit, TL Offshore Sdn Bhd, won three packages worth a combined RM1.5 billion.
TL Offshore was awarded a joint contract by 11 of Petronas' Production Sharing Contractors (PSCs) for the transportation and installation of offshore oil and gas facilities and structures for the PSCs, which include Shell Sarawak, Shell Sabah, Newfield, Murphy Oil, Nippon Oil, Talisman and ExxonMobil.
The duration for the SapuraCrest contract is similar to the one offered to Global Offshore.
"SapuraCrest has been dominating the market for five years. Its monopoly is broken with the entry of Global Offshore and Kencana Petroleum," the sources said.
The fifth package, which Petronas will award within the next two to three weeks, is expected to go to Master Offshore Sdn Bhd, a unit of Target Resources Sdn Bhd.
The contract is believed to be also worth around US$100 million and the scope of works will be similar to the one offered to Global Offshore.
The five packages attracted six bidders, including J Ray McDermott Inc-Bumi Armada Bhd, Sigurros Sdn Bhd-Sime Darby Bhd and PBJV Group Sdn Bhd.
-ENDS-
Published in NST, Jan 11 2010
New York-listed Global Industries, a US$3 billion (RM10 billion) oil company, is expected to get a contract worth RM350 million from Petroliam Nasional (Petronas) Bhd, breaking an area dominated by SapuraCrest Petroleum Bhd (8575) for the last five years.
Sources said the contract is to lay oil and gas pipelines between platforms in shallow waters across Malaysia, from March this year.
Business Times understands that the contract will be awarded to Global Industries' local subsidiary, Global Offshore Malaysia Sdn Bhd, sometime this month.
The duration is for three years up to 2012, with options for two further extensions of one year each. The value of US$100 million (RM338 million) is for works for the first year.
Global Offshore will use the derrick lay barge DLB 264, owned by its parent company, for the works.
It is also believed, Kencana Petroleum Bhd, controlled by Datuk Mokhzani Mahathir will get a share of the pie as it will take a stake in Global Offshore.
"Kencana will buy 45 per cent of the company and the vessel. They are ironing out the details with Global Offshore to strike a deal soon," industry sources said.
Industry estimate for a vessel of similar specification and age like the DLB 264 is around US$50 million (RM169 million).
This is one of five transportation and installation packages to be awarded by Petronas.
Last month, SapuraCrest's wholly-owned unit, TL Offshore Sdn Bhd, won three packages worth a combined RM1.5 billion.
TL Offshore was awarded a joint contract by 11 of Petronas' Production Sharing Contractors (PSCs) for the transportation and installation of offshore oil and gas facilities and structures for the PSCs, which include Shell Sarawak, Shell Sabah, Newfield, Murphy Oil, Nippon Oil, Talisman and ExxonMobil.
The duration for the SapuraCrest contract is similar to the one offered to Global Offshore.
"SapuraCrest has been dominating the market for five years. Its monopoly is broken with the entry of Global Offshore and Kencana Petroleum," the sources said.
The fifth package, which Petronas will award within the next two to three weeks, is expected to go to Master Offshore Sdn Bhd, a unit of Target Resources Sdn Bhd.
The contract is believed to be also worth around US$100 million and the scope of works will be similar to the one offered to Global Offshore.
The five packages attracted six bidders, including J Ray McDermott Inc-Bumi Armada Bhd, Sigurros Sdn Bhd-Sime Darby Bhd and PBJV Group Sdn Bhd.
-ENDS-
Suria Cap to bid for RM1.2b project
By Sharen Kaur
Published in NST, Jan 4 2010
Port operator and builder Suria Capital Holdings Bhd (6521) has been qualified to make a bid for the RM1.2 billion power plant in Kimanis, Sabah, and is preparing a proposal to submit to the project owner by April.
Group managing director Datuk Dr Mohd Fowzi Mohd Razi said the company is working on the proposal with its partner from Taiwan, a major engineering, procure and commissioning (EPC) contractor, as well as a local firm.
A consortium, comprising the three companies, has been formed and it will be led by the EPC contractor, he said.
The project owner is Kimanis Power Sdn Bhd, a 60:40 joint venture between Petronas Gas Bhd and NRG Consortium Sdn Bhd, the business arm of Yayasan Sabah Group.
Twelve companies including Muhibbah Engineering Bhd, Gadang Holdings Bhd and Zelan Bhd have been shortlisted to make a bid for the project.
It is understood that Petronas is planning to award the contract by August this year.
The planned capacity of the 300 megawatts (MW) Kimanis power plant will be implemented in two phases. The first phase will have a capacity of 100MW, which will be increased by another 200MW in the second.
The power plant, covering 41ha, is expected to be completed by the end of 2013 and fully operational by early 2014.
"Competition is tough as 12 companies have been shortlisted. But I believe we have a good chance to win as we are Sabah-based, and partially owned by the state government," Mohd Fowzi told Business Times.
Mohd Fowzi, who is the former director of the state economic planning unit under the Sabah Chief Minister's Department, said Suria Capital expects to do better this year on improved earnings from its port business.
Suria Capital operates eight ports in Sabah through its unit Sabah Ports Sdn Bhd. The ports are owned by the Sabah Port Authority and Suria Capital holds a 30-year concession, starting 2004.
"The lowest point for our port business was in the first quarter of 2009. Business has since picked up and we expect the momentum to continue," he said.
Port operating business contributes almost 75 per cent to Suria Capital's earnings. The balance comes from bunkering services (fuel, fresh water and lubricants), logistics, and contract and engineering business.
For fiscal year ended December 31 2008, Suria Capital's net profit was RM37.4 million. In the first nine months of 2009 it made RM37.2 million in net profit.
-ENDS-
Published in NST, Jan 4 2010
Port operator and builder Suria Capital Holdings Bhd (6521) has been qualified to make a bid for the RM1.2 billion power plant in Kimanis, Sabah, and is preparing a proposal to submit to the project owner by April.
Group managing director Datuk Dr Mohd Fowzi Mohd Razi said the company is working on the proposal with its partner from Taiwan, a major engineering, procure and commissioning (EPC) contractor, as well as a local firm.
A consortium, comprising the three companies, has been formed and it will be led by the EPC contractor, he said.
The project owner is Kimanis Power Sdn Bhd, a 60:40 joint venture between Petronas Gas Bhd and NRG Consortium Sdn Bhd, the business arm of Yayasan Sabah Group.
Twelve companies including Muhibbah Engineering Bhd, Gadang Holdings Bhd and Zelan Bhd have been shortlisted to make a bid for the project.
It is understood that Petronas is planning to award the contract by August this year.
The planned capacity of the 300 megawatts (MW) Kimanis power plant will be implemented in two phases. The first phase will have a capacity of 100MW, which will be increased by another 200MW in the second.
The power plant, covering 41ha, is expected to be completed by the end of 2013 and fully operational by early 2014.
"Competition is tough as 12 companies have been shortlisted. But I believe we have a good chance to win as we are Sabah-based, and partially owned by the state government," Mohd Fowzi told Business Times.
Mohd Fowzi, who is the former director of the state economic planning unit under the Sabah Chief Minister's Department, said Suria Capital expects to do better this year on improved earnings from its port business.
Suria Capital operates eight ports in Sabah through its unit Sabah Ports Sdn Bhd. The ports are owned by the Sabah Port Authority and Suria Capital holds a 30-year concession, starting 2004.
"The lowest point for our port business was in the first quarter of 2009. Business has since picked up and we expect the momentum to continue," he said.
Port operating business contributes almost 75 per cent to Suria Capital's earnings. The balance comes from bunkering services (fuel, fresh water and lubricants), logistics, and contract and engineering business.
For fiscal year ended December 31 2008, Suria Capital's net profit was RM37.4 million. In the first nine months of 2009 it made RM37.2 million in net profit.
-ENDS-
Sunday, January 3, 2010
Property sector sees real gains in tax review
By Sharen Kaur - Published in NST, 25 Dec 2009
The property sector has received a much needed shot in the arm with the government's decision to review the real property gains tax (RPGT).
Property players and analysts said the new rule would spur property deals and, at the same time, prevent speculative buying.
On Wednesday, Prime Minister Datuk Seri Najib Razak said those who sold properties within five years of their purchase would pay the five per cent RPGT.
This would amend what the government announced under the 2010 Budget in October. Under that announcement, the RPGT would be imposed for all properties sold from Jan 1, regardless of the year of purchase.
It was wrongly reported in the New Straits Times yesterday that the RPGT would be imposed on properties sold after five years of ownership.
Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum said the news was positive for the industry and it would be a sentiment booster for both domestic and foreign investors.
"Demand for property here is driven by fundamentals and we have seen good sales. With this measure, it will be more attractive and viable for property owners to sell their houses as they upgrade," he said.
Glomac Bhd group executive vice-chairman Datuk Richard Fong agreed.
Fong, who is also president of Fiabci, an international real estate federation, said he expected property transactions to improve next year.
"This is good news. It shows the government has heeded our call. I think it's a fair move to prevent speculative buying," Fong said.
Najib on Wednesday said the decision was made following requests from the business sector and Federation of Chinese Associations of Malaysia.
The policy was also reviewed as the government wants stronger growth in the sector next year.
ECM Libra Investment Bank said in a research report that the revised property tax regime would dampen speculative activities.
Over the past few weeks, there has been strong demand for landed residential properties, especially terrace, semi-detached homes and bungalows.
It thinks that this was due to the low interest rate and improving sentiment on brighter economic outlook.
"With the relaxation of the RPGT regime, we believe buying interest will pick up pace, especially among upgraders, who need to sell their existing properties first," it said.
Leong said owners would also not be in a hurry to sell and avoid the tax with the review.
"The clarification of RPGT will provide some leeway for property owners and they no longer have to be in such a rush now to sell. This will allow the property market to reach a better equilibrium as the deadline has been removed to some extent."
( END )
The property sector has received a much needed shot in the arm with the government's decision to review the real property gains tax (RPGT).
Property players and analysts said the new rule would spur property deals and, at the same time, prevent speculative buying.
On Wednesday, Prime Minister Datuk Seri Najib Razak said those who sold properties within five years of their purchase would pay the five per cent RPGT.
This would amend what the government announced under the 2010 Budget in October. Under that announcement, the RPGT would be imposed for all properties sold from Jan 1, regardless of the year of purchase.
It was wrongly reported in the New Straits Times yesterday that the RPGT would be imposed on properties sold after five years of ownership.
Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum said the news was positive for the industry and it would be a sentiment booster for both domestic and foreign investors.
"Demand for property here is driven by fundamentals and we have seen good sales. With this measure, it will be more attractive and viable for property owners to sell their houses as they upgrade," he said.
Glomac Bhd group executive vice-chairman Datuk Richard Fong agreed.
Fong, who is also president of Fiabci, an international real estate federation, said he expected property transactions to improve next year.
"This is good news. It shows the government has heeded our call. I think it's a fair move to prevent speculative buying," Fong said.
Najib on Wednesday said the decision was made following requests from the business sector and Federation of Chinese Associations of Malaysia.
The policy was also reviewed as the government wants stronger growth in the sector next year.
ECM Libra Investment Bank said in a research report that the revised property tax regime would dampen speculative activities.
Over the past few weeks, there has been strong demand for landed residential properties, especially terrace, semi-detached homes and bungalows.
It thinks that this was due to the low interest rate and improving sentiment on brighter economic outlook.
"With the relaxation of the RPGT regime, we believe buying interest will pick up pace, especially among upgraders, who need to sell their existing properties first," it said.
Leong said owners would also not be in a hurry to sell and avoid the tax with the review.
"The clarification of RPGT will provide some leeway for property owners and they no longer have to be in such a rush now to sell. This will allow the property market to reach a better equilibrium as the deadline has been removed to some extent."
( END )
Property stocks surge on gains tax move
By Sharen Kaur - Published in NST, 25 Dec 2009
PROPERTY stocks rose yesterday as investors bet developers would benefit from amendments to the real property gains tax (RPGT).
The tax, which comes into force next year, now only applies to those who sell properties within five years of purchase.
Shares of SP Setia Bhd, the country's biggest developer, rose 1.6 per cent to RM3.74, while those of United Malayan Land Bhd rose 4.5 per cent to close at RM1.40.
Shares of Glomac Bhd improved 4 sen to RM1.25, while IGB Corp Bhd ended up 3 sen to close at RM2.04.
Some analysts have upgraded the sector from neutral to overweight due to better property demand and the RPGT review.
The government had re-introduced the RPGT in the 2010 Budget announced in October. Under that announcement, the RPGT would be imposed on all properties sold from January 1 2010, regardless of the year of purchase.
But this was changed when on December 23, Prime Minister Datuk Seri Najib Razak said the RPGT will only be applicable to properties sold within five years from its purchase.
Real Estate and Housing Developers' Association (Rehda) chairman Datuk Michael K.C. Yam described the move as a New Year bonus for all.
"From equity point of view, economic sentiment and growth of the industry, it is a good move. A lot of people were aggrieved when the RPGT was announced and that anxiety has now been removed," Yam told Business Times via telephone.
But Yam said there should be clarity and certainty on the RPGT so foreign investors won't shy away.
Lingering concerns include whether the RPGT will exceed 5 per cent in future years.
Kenanga Research in a research report said the new rule would curbs speculative activities, mainly seen in the KLCC vicinity, Mont' Kiara/Hartamas and some areas on Penang island.
It would also allow those holding properties for over five years to sell their homes and recognise 100 per cent of the capital gains.
But the amendments to the RPGT also illustrates uncertainties in policy making, which may shake foreign investors' confidence, it said.
( END )
PROPERTY stocks rose yesterday as investors bet developers would benefit from amendments to the real property gains tax (RPGT).
The tax, which comes into force next year, now only applies to those who sell properties within five years of purchase.
Shares of SP Setia Bhd, the country's biggest developer, rose 1.6 per cent to RM3.74, while those of United Malayan Land Bhd rose 4.5 per cent to close at RM1.40.
Shares of Glomac Bhd improved 4 sen to RM1.25, while IGB Corp Bhd ended up 3 sen to close at RM2.04.
Some analysts have upgraded the sector from neutral to overweight due to better property demand and the RPGT review.
The government had re-introduced the RPGT in the 2010 Budget announced in October. Under that announcement, the RPGT would be imposed on all properties sold from January 1 2010, regardless of the year of purchase.
But this was changed when on December 23, Prime Minister Datuk Seri Najib Razak said the RPGT will only be applicable to properties sold within five years from its purchase.
Real Estate and Housing Developers' Association (Rehda) chairman Datuk Michael K.C. Yam described the move as a New Year bonus for all.
"From equity point of view, economic sentiment and growth of the industry, it is a good move. A lot of people were aggrieved when the RPGT was announced and that anxiety has now been removed," Yam told Business Times via telephone.
But Yam said there should be clarity and certainty on the RPGT so foreign investors won't shy away.
Lingering concerns include whether the RPGT will exceed 5 per cent in future years.
Kenanga Research in a research report said the new rule would curbs speculative activities, mainly seen in the KLCC vicinity, Mont' Kiara/Hartamas and some areas on Penang island.
It would also allow those holding properties for over five years to sell their homes and recognise 100 per cent of the capital gains.
But the amendments to the RPGT also illustrates uncertainties in policy making, which may shake foreign investors' confidence, it said.
( END )
Property players upbeat on signs of economic recovery
By Sharen Kaur - Published in NST, 25 Dec 2009
PROPERTY developers are upbeat about their business outlook for 2010 as the Malaysian economy is set to recover.
The economy is expected to contract by 3 per cent this year but has been forecast to expand by up to 3 per cent in 2010. Prime Minister Datuk Seri Najib Razak has said he wants to do better and aim for a 5 per cent
growth.
Ireka Development Management Sdn Bhd president and chief executive officer Lai Voon Hon thinks the sector could be in for a "mini boom" if the global economy stabilises.
But the availability of attractive mortgage rates and a low-entry cost to home ownership will be key for the sector in 2010.
"Signs of recovery are beginning to surface, albeit slowly. Buyers or investors who were sitting on the side, waiting for prices to bottom out or looking for distressed opportunities, are now returning to the market,"
Lai told Business Times.
The implementation of a 4 per cent Goods and Services Tax in mid-2011 could also benefit the sector as people may want to buy before houses cost more with the tax.
YTL Land & Development Bhd executive director Datuk Yeoh Seok Kian said having survived 2009, developers would be more bullish about 2010, with many anxious to move forward with their plans.
This means buyers can expect more launches in the Klang Valley, Penang, Johor and Sabah, featuring medium to high-end landed properties and high-rise residential and commercial towers.
But as the market regains confidence, developers may scale back incentives like discounts on downpayments.
Developers were also worried about the Real Property Gains Tax (RPGT) taking effect from January but this is no longer a concern as the policy has been reversed.
Now, only those who sell property within five years of purchase will pay the tax, as announced by Najib on December 23.
TA Global Bhd spokesperson Datin Alicia Tiah said developers will be more creative and innovative next year and develop products with a unique selling point to move sales.
Mah Sing Group Bhd group managing director cum group chief executive Tan Sri Datuk Sri Leong Hoy Kum said he expects strong recovery in demand for mid-tier to high-end landed properties.
He also expects appetite for commercial properties to improve.
A new scheme that allows Employees Provident Fund contributors to withdraw more from their Account 2 saving to buy their first house would also help the market.
However, the EPF has yet to announce details of this new scheme.
( END )
PROPERTY developers are upbeat about their business outlook for 2010 as the Malaysian economy is set to recover.
The economy is expected to contract by 3 per cent this year but has been forecast to expand by up to 3 per cent in 2010. Prime Minister Datuk Seri Najib Razak has said he wants to do better and aim for a 5 per cent
growth.
Ireka Development Management Sdn Bhd president and chief executive officer Lai Voon Hon thinks the sector could be in for a "mini boom" if the global economy stabilises.
But the availability of attractive mortgage rates and a low-entry cost to home ownership will be key for the sector in 2010.
"Signs of recovery are beginning to surface, albeit slowly. Buyers or investors who were sitting on the side, waiting for prices to bottom out or looking for distressed opportunities, are now returning to the market,"
Lai told Business Times.
The implementation of a 4 per cent Goods and Services Tax in mid-2011 could also benefit the sector as people may want to buy before houses cost more with the tax.
YTL Land & Development Bhd executive director Datuk Yeoh Seok Kian said having survived 2009, developers would be more bullish about 2010, with many anxious to move forward with their plans.
This means buyers can expect more launches in the Klang Valley, Penang, Johor and Sabah, featuring medium to high-end landed properties and high-rise residential and commercial towers.
But as the market regains confidence, developers may scale back incentives like discounts on downpayments.
Developers were also worried about the Real Property Gains Tax (RPGT) taking effect from January but this is no longer a concern as the policy has been reversed.
Now, only those who sell property within five years of purchase will pay the tax, as announced by Najib on December 23.
TA Global Bhd spokesperson Datin Alicia Tiah said developers will be more creative and innovative next year and develop products with a unique selling point to move sales.
Mah Sing Group Bhd group managing director cum group chief executive Tan Sri Datuk Sri Leong Hoy Kum said he expects strong recovery in demand for mid-tier to high-end landed properties.
He also expects appetite for commercial properties to improve.
A new scheme that allows Employees Provident Fund contributors to withdraw more from their Account 2 saving to buy their first house would also help the market.
However, the EPF has yet to announce details of this new scheme.
( END )
Year of turmoil for developers
By Sharen Kaur - Published in NST, 25 Dec 2009
IT WAS probably a year to forget for the property industry.
After a lacklustre 2008, where developers were hit by higher raw material costs, 2009 was a time when the global financial turmoil hurt recovery efforts.
A global recession spooked consumers into keeping their wallets closed and this meant developers had to do more to promote their properties.
For residential property, builders focused more on selling existing units and most were forced to reschedule new launches.
Still, the sector was able to benefit from government efforts to spur the economy as the central bank kept borrowing costs low.
For most developers, it was about being creative with how they sell their products.
YTL Land & Development Bhd executive director Datuk Yeoh Seok Kian said the industry was able to get by this year mainly because most players had a sound pricing strategy and careful selection of projects.
Developers introduced incentives to boost sales, although it meant less profits for them. Some launched products in small numbers to ensure success.
SP Setia Bhd, the biggest developer, was also the first mover as it created the 5/95 home loan package where buyers only need to pay half of the downpayment. It will bear other costs until the property is handed
over to buyer.
A slew of marketing promotions followed as developers sensed that people can be persuaded to buy with the right incentives.
Mah Sing Group Bhd's group managing director cum group chief executive Tan Sri Leong Hoy Kum said the low- and high-end property markets saw less demand in 2009.
The low-end market had to deal with perennial oversupply issues. It was also a market where buyers are faced with problems like inflation and job losses, Leong said.
"The high-end market suffered from a contraction in foreign demand for high-rise projects as well as a target market which was potentially more exposed to the global financial crisis," he said.
Ireka Development Management Sdn Bhd president and chief executive officer Lai Voon Hon said commercial office and industrial properties have also lagged the residential sector in 2009.
These segments will remain soft for the next 12 months unless business confidence returns.
The market was also rocked by a government announcement in October to reintroduce the Real Property Gains Tax (RPGT) at 5 per cent in 2010.
(This was then reversed on December 23 when the government said the tax will only apply to properties sold within five years of purchase)
TA Global Bhd spokesperson Datin Alicia Tiah, who spoke to Business Times before the RPGT was re-versed, said the market was moving until the RPGT was announced in October.
"This move is a dampener because foreign investors are weary of the flip-flop policy as it was just abolished in the year 2007.
"We do not have asset bubbles here. The launches before the announcement of the RPGT were doing well. We have to now focus on the local market and to owner-occupier as the RPGT is a deterrent to those who want to invest in property," she said.
( END )
IT WAS probably a year to forget for the property industry.
After a lacklustre 2008, where developers were hit by higher raw material costs, 2009 was a time when the global financial turmoil hurt recovery efforts.
A global recession spooked consumers into keeping their wallets closed and this meant developers had to do more to promote their properties.
For residential property, builders focused more on selling existing units and most were forced to reschedule new launches.
Still, the sector was able to benefit from government efforts to spur the economy as the central bank kept borrowing costs low.
For most developers, it was about being creative with how they sell their products.
YTL Land & Development Bhd executive director Datuk Yeoh Seok Kian said the industry was able to get by this year mainly because most players had a sound pricing strategy and careful selection of projects.
Developers introduced incentives to boost sales, although it meant less profits for them. Some launched products in small numbers to ensure success.
SP Setia Bhd, the biggest developer, was also the first mover as it created the 5/95 home loan package where buyers only need to pay half of the downpayment. It will bear other costs until the property is handed
over to buyer.
A slew of marketing promotions followed as developers sensed that people can be persuaded to buy with the right incentives.
Mah Sing Group Bhd's group managing director cum group chief executive Tan Sri Leong Hoy Kum said the low- and high-end property markets saw less demand in 2009.
The low-end market had to deal with perennial oversupply issues. It was also a market where buyers are faced with problems like inflation and job losses, Leong said.
"The high-end market suffered from a contraction in foreign demand for high-rise projects as well as a target market which was potentially more exposed to the global financial crisis," he said.
Ireka Development Management Sdn Bhd president and chief executive officer Lai Voon Hon said commercial office and industrial properties have also lagged the residential sector in 2009.
These segments will remain soft for the next 12 months unless business confidence returns.
The market was also rocked by a government announcement in October to reintroduce the Real Property Gains Tax (RPGT) at 5 per cent in 2010.
(This was then reversed on December 23 when the government said the tax will only apply to properties sold within five years of purchase)
TA Global Bhd spokesperson Datin Alicia Tiah, who spoke to Business Times before the RPGT was re-versed, said the market was moving until the RPGT was announced in October.
"This move is a dampener because foreign investors are weary of the flip-flop policy as it was just abolished in the year 2007.
"We do not have asset bubbles here. The launches before the announcement of the RPGT were doing well. We have to now focus on the local market and to owner-occupier as the RPGT is a deterrent to those who want to invest in property," she said.
( END )
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