Lee Kim Yew: 'Still solvent and have not filed for bankruptcy'

By Sharen Kaur - April 14, 2023 

Lee said that he was "solidly solvent" and that a bankruptcy notice was filed against him at the Malaysian Insolvency Department (MDI) based on a US arbitration court judgement. NSTP/ASWADI ALIAS.

KUALA LUMPUR: Tan Sri Lee Kim Yew, a billionaire entrepreneur, says he did not file for bankruptcy but was declared bankrupt by a US citizen named Patrick Healy over a RM3 million (US$681,508) lawsuit.

The founder of Country Heights Holdings Bhd also suggested that an individual was using a dirty trick against him.

Lee said that he was "solidly solvent" and that a bankruptcy notice was filed against him at the Malaysian Insolvency Department (MDI) based on a US arbitration court judgement.

Healy, an employee of a now-defunct US-based Club Excellence Inc, had earlier acquired a RM3 million judgement in his favour in the US and used it in Malaysia to declare him bankrupt, Lee said.

On Wednesday, a screenshot of a bankruptcy search that proved Lee's bankruptcy status went viral.

Lee was supposedly declared bankrupt by the Shah Alam High Court on Jan 26. 

"I did not file for bankruptcy. I don't choose to be bankrupt. I don't want to be bankrupt. I never declared myself to be bankrupt nor filed for bankruptcy. I want to continue to help society. This individual declared me bankrupt over a RM3 million suit. It's a personal attack against me," he told reporters at a press conference in Seri Kembangan today.

"Who was the one on April 10 paid RM100 and downloaded from the Department of Insolvency? Who is the one using this dirty trick instead of following the law of Malaysia?" he asked.

Lee also provided numerous slides outlining several reasons why he would not pay Healy the alleged figure, which he considered to be a "small amount."

He is a lawyer and a friend of mine. We could have reached a solution amicably. But he chose to seek a judgement in the United States. He could have chosen a better way.

"Based on the fact that I was attacked on social media and it is not in the best interests of the country, I have written to the Malaysian government to allow my lawyer to continue negotiating with Healy's lawyers for an amicable settlement," said Lee.

If negotiations fail, he said he would file an appeal with the MDI and "deposit RM3 million cash for MDI to deal with Healy."

"I've had calls from family, friends, and business associates as far away as China and Japan. They find it difficult to believe all of this. I have a lot of tangible and intangible assets," said Lee, who, through his public-listed Country Heights and his private firms, own over RM2 billion worth of assets, collectively.

Lee said he had resigned from all corporate directorships as of Jan 26.

He also denied allegations that he had been barred from flying abroad.

Meanwhile, Lee told the News Straits Times that he wished to settle the dispute amicably so that he could focus on building his personal projects.

"I will concentrate my efforts in the conventional banking world, develop a new philosophy, revise the scene by establishing an eco network, and strive for a new world. I see what is happening now as an opportunity. As for Country Heights, when you get to the bottom, and when you change, it will be bigger," he added.

Lee had been credited with transforming the world's largest open cast tin mine, into a world-class resort living-themed city in Seri Kembangan, to being chosen to lead key initiatives under the Malaysian government's Economic Transformation Plan.

Johor's property market may thrive, thanks to Singapore's "fast and furious" rental increase

 By NST Property - April 6, 202348

NSTP/File Photo

The "fast and furious" rental rise in Singapore should help the real estate market in Johor, said KGV International Property Consultants (Johor) Sdn Bhd executive director Ir Samuel Tan.

A recent report states that a total of 21 four-room HDB flats crossed the SG$1 million mark on the resale market for the first quarter of this year.

Tan said this is the highest in recent years and triple the seven such units sold above SG$ 1 million in the first quarter of 2022.

"Singapore's relatively outstanding performance in crisis management over the past three years earned itself brownie points in attracting investment as well as the choice of the rich and wealthy to settle down or work. However, Singapore's living cost as a whole will rise further albeit at a more gradual pace moving forth.

"We believe Johor Bahru being the closest neighbour to Singapore will be able to tap some spill-over in terms of business opportunities, investment across sectors as well as a choice of accommodation. As it is, many businesses and manufacturers based in Singapore have already relocated some or all of their operations to Malaysia to capitalise on the lower cost," he told NST Property.

Tan was commenting on a recent article by TODAY entitled: "Survey: Amid soaring rentals, seven in ten Singapore firms ready to move expat staff overseas".

KGV International Property Consultants (Johor) Sdn Bhd executive director Ir Samuel Tan.

TODAY reported how some expatriates in Singapore intend to leave the country amid the skyrocketing rental prices, which surged at the fastest pace in 15 years last year, outpacing some other major cities.

European Chamber of Commerce, Singapore (EuroCham) conducted a survey aimed to assess the extent and severity of the impact of rising costs of rental on business operations in Singapore.

The findings, released last month, found that 50 per cent of employees who have had to renew their residential housing lease this year or last year had faced rental increases of more than 40 per cent.

Another 36 per cent found that the hike was between 20 to 40 per cent.

According to the report, Singapore will lose its attractiveness to foreign companies which will decide to relocate their offices to neighbouring countries, if business costs do not fall or the Government doesn't step in to help.

Tan said that the imbalance between supply and demand for residential properties in the republic was a major factor in why the rental of Singaporean homes, whether private or public, shot up dramatically to the extent of 40 per cent in this one to two years.

According to him, some of the disequilibrium's causes include the Covid-19-related delay in the delivery of HDB apartments and the unexpected increase in foreigners and foreign employees after Singapore's border reopened in April.

"From the survey conducted by EuroCham as highlighted in the article, it says that half of the expatriates have been hit by rental increases of more than 40 per cent, while about seven in 10 businesses are ready to relocate their staff out of Singapore if there is no relief from rising operating costs. While we agree that the surge in the rental cost has been extremely fast and unexpected, we do not think it is going to overly affect Singapore's competitiveness as a whole," he said.

Firstly, according to Tan, other considerations should be taken into account along with high rental costs when choosing an investment location. These considerations include political stability, the general macroeconomic environment, support for good governance, effective manpower, and first-rate infrastructures.

And for the majority of businesses, he said the rental costs for the expatriates only make up a tiny portion of the total operating expenses.

He also thinks that even though the Republic's residential rental market will probably expand in the long run, the "Black Swan" event's present excessively high rental growth is probably just a passing. (a.k.a Covid-19 and the consequential lockdowns).

"In other words, the super high rental growth rate over the past two years or so is likely to taper down once the housing supply-demand is back to the near-equilibrium," he said.

Looking ahead, he said that the upcoming Rail Transit System line, which is scheduled to begin operations in 2026, and the potential revitalisation of the Kuala Lumpur-Singapore High-Speed Rail are the main draws for the Johor real estate market.

He also thinks that if both countries' relations continue to get better, more connections like link bridges, ferries, and rail links might be constructed in the future to make it easier to connect people, goods, and trade.

"If we fast forward 10, 20, or 50 years from now, it is not impossible for an expatriate to live in a 'hinterland" up north but work/connect seamlessly, virtually, and physically to the main hub in the Republic down south. If managed right, such arrangement offers the best value proposition and it is highly complementary for the workers and companies across the causeway over the long term," he said.

Tan said many Malaysians who work in Singapore opt to stay in Johor Bahru and travel daily.

"To stretch the Dollar further, there are Singaporeans and expatriates who also choose to stay in Johor Bahru but work in Singapore. Nevertheless, the latter group is still a minority currently," he said.

Fajarbaru expects growth from new initiatives in Malaysia and Australia

 By Sharen Kaur - Published in NST Property, April 10, 2023 

An artist’s impression of Vierra Residence Kinrara. Image credit: vierraresidence.com.my

sharen@nst.com.my

Fajarbaru Builder Group Bhd plans to expand its property development footprints in Peninsular Malaysia and Australia, subject to market conditions, said Tan Sri Chan Kong Choy, the company's executive chairman.

He also said that the group intends to constantly bid on prospective infrastructure and rail-building projects.

According to Chan, the current expansion of Fajarbaru would be aided by construction projects such as the development of Duta Park and Pavillion Mont Kiara.

The group is also planning new projects, including Desa Green in Kelantan, as well as The Wilds and the Fitzroy development in Melbourne, Australia, he said in a statement issued last week.

The Wilds located in Northcote, Melbourne, is set to be a benchmark in Environmentally Sustainable Design principles and will become the first carbon-neutral detached housing development in inner Melbourne.

On the group's ongoing property project, Vierra Residence @Kinrara, Chan said that around 95 per cent of the units have been taken.

Vierra Residence @Kinrara in Puchong is based on the concept of Residensi Wilayah Keluarga Malaysia (RUMAWIP) and it was launched in 2022.

Fajarbaru recorded a revenue of RM67.87 million in the second quarter of its financial year ending December 31, 2023, as compared to RM56.42 million in the preceding year's corresponding quarter.

Despite higher revenue, the group recorded a net loss of RM2.41 million, versus a net profit of RM4.3 million in the preceding year's corresponding quarter.

In a stock exchange filing on Feb 23, Fajarbaru said the higher revenue was mainly attributed to the construction and investment holding segments while there was a decrease in pre-tax profit across all the segments.

The property development segment recorded a revenue of RM14.87 million in the quarter under review as compared to a revenue of RM31.15 million in the preceding year's corresponding quarter. The pre-tax profit was RM5.38 million as compared to a pre-tax profit of RM7.65 million in the preceding year's corresponding quarter.

YTL Cement will continue to meet the country's development and construction needs, says its chief

 By Sharen Kaur - Published in NST Property, April 12, 2023

sharen@nst.com.ym

YTL Cement Bhd, the oldest and largest homegrown cement company in Malaysia, will continue to support the country's development and construction needs, Datuk Sri Michael Yeoh, the company's managing director said.

In this regard, YTL Cement and the Construction Research Institute of Malaysia (CREAM) have signed a Memorandum of Understanding (MOU) to promote the country's construction industry's transition to sustainable construction.

CREAM is the research and development arm of the Construction Industry Development Board (CIDB).

The MOU was signed by YTL Cement Marketing Sdn Bhd executive director Patrick Pereira and CREAM's chief executive officer M Ramuseren, witnessed by Yeoh and CIDB chief executive officer of construction industry Datuk Ahmad Asri Abdul Hamid.

The three key areas highlighted in the MOU are human resource development, research and development (R&D), and supporting the construction sector to transition to sustainable construction.

YTL Cement, according to Yeoh, has been a part of Malaysia's growth for over 70 years.

He said that the building industry's standards are becoming more sophisticated and technically demanding.

"With buildings and structures getting taller and more advanced, CIDB is now more relevant than ever before. There is an increasing need for a qualified workforce within the construction industry and greater demand for innovation and bespoke solutions.

"Another area that is of growing importance is the environment, social and governance (ESG). As Malaysia's oldest and largest homegrown building materials group, we are actively promoting sustainability in our operations, offerings, and activities. These are areas that we want to work with CIDB through this MOU," he added.

Datuk Ir. Ahmad Asri Abdul Hamid, chief executive of CIDB said the board is dedicated to building Malaysia's sustainable future by developing a socially and environmentally responsible industry.

"Through this MoU, we hope to drive meaningful change as we develop the capacity and capability of the construction industry as well as set the standards for sustainable construction practices in Malaysia. We are glad to be able to collaborate with like-minded players like YTL Cement, as we share a common goal to future-proof the construction sector," he said.

Lee Kim Yew: "It is all over a mere RM3 million...I am not a bankrupt"

 By Sharen Kaur - Published in NST, April 12, 2023 

Country Heights founder Tan Sri Lee Kim Yew says he is not a bankrupt. - NSTP file pic

KUALA LUMPUR: Country Heights founder Tan Sri Lee Kim Yew said the issue surrounding his bankruptcy involved a mere RM3 million.

The tycoon said he was not a bankrupt, but had been deemed as one by a third party.

"I did not file for bankruptcy. This particular party declared me a bankrupt over a RM3 million suit. I will provide more details about this matter at a press conference tomorrow," he said when contacted by the News Straits Times.

News about his bankruptcy has gone viral following checks on the e-Solvency website.

Lee, the founder of Country Heights Holdings Bhd (CHHB), was supposedly declared bankrupt by the Shah Alam High Court on Jan 26.

On Feb 3, he announced that he would step down as CHHB executive chairman in order to facilitate a change in management for the group's transition.

CHHB is well-known for developing the Mines Resort City in Seri Kembangan, which includes The Mines Resort & Golf Club, Palace of the Golden Horses, The Mines Beach Resort & Spa, The Mines Waterfront Business Park, and the MINES International Exhibition & Convention Centre.

It was also reported that Lee was a prosecution witness in Deputy Prime Minister Ahmad Zahid Hamidi's Yayasan Akalbudi corruption trial.

During the Johor state polls last year, the property tycoon made headlines when he campaigned with former prime minister Tun Dr Mahathir Mohamad, calling on the Chinese community to vote for Pejuang.

Lee's daughter, Dian, signed up with the youth-centric Muda in December 2021 and is currently the party's central executive committee member.