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Wednesday, 7 March 2012

The shame of the game

Stories by NATALIE HENG star2@thestar.com.my

Games are bad only when the line between entertainment and obsession is breached.
 
TAKE a peek at the iPad, iPhone or any smartphone that belongs to a parent, and chances are you’ll find screen upon screen of game apps. A lot of these apps were downloaded onto the device by their tech-savvy kids. And most of these parents may tell you that their children and teenagers are hooked on mobile, computer or interactive games – at home, out in the malls or during outings with family or friends.

Apart from these downloadable ones, there are also multi-player video games at home and an array of free games on social networking websites like Facebook, which is frequented by the kids as well. The gamers are indeed spoilt for choice.

Parents may be resigned to such widespread availability of games as an inevitable part of modern life, but when play becomes extreme, the obsession will undoubtedly be detrimental to the development and well-being of the child. It’s therefore absolutely essential for parents to monitor the young ones’ gaming activities before the situation gets out of hand.

© San Jose Mercury News/ MCT
To be sure, gaming itself is entertaining and harmless if it’s done within limits, and controlled. Being addicted to video or online games, however, is a serious matter.

Keith Woo should know. It stole a huge chunk of his youth until one day when he was 24, a near-death experience jolted him into reassessing his life.

Getting off the game wasn’t easy; he had spent seven years playing a text-based multi-player online role-playing game called MUD (Multi-User Dungeon).

That aside, Woo had done it all – everything from first person shooter games like Team Fortress and Call Of Duty to massively multi-player online role-playing games like World Of Warcraft.

The years of relentless MUD gameplay culminated in Woo’s online character being at the top of the virtual food chain. To maintain his leading status the lad would neglect his studies for a psychology degree and spend an average of 14 hours per day slaying fictional monsters in his student accommodation in Subang Jaya, Selangor.

“I really messed up college ... I skipped classes and handed in late submissions,” he confesses in a recent interview in Petaling Jaya, Selangor.

Game for it: Nick Foong (left) and Keith Woo from Generasi Gemilang often help youth and their parents tackle gaming issues. — FAIHAN GHANI/The Star
 
Woo’s experience is every modern parent’s nightmare.

“My parents would get upset and make a lot of fuss and noise about me gaming both at home and outside,” admits Woo. But for him, it was the ultimate form of escapism. As a sanctuary of high adrenaline and excitement, the realm gave Woo a skill and prowess – and respect – amongst the online gaming community that he reckoned was more than he could ever achieve in the real world.

Today, Woo, 28, has turned his life around. Escaping serious injury in a car accident early one morning after a gaming session at a cyber cafe with his friends, the young man had asked himself: what has gaming ever really done for me?

For years he had been running from personal problems – in study, financially and with regard to his relationship with his family.

“I realised, you know, my parents weren’t going to be around forever, and what would happen then?” he recalls.

Getting on the wagon, so to speak, was a difficult process. He received a great deal of flak from the game’s online administrators when he requested to delete his character and block him from playing. They asked him: “Why don’t you just cut down on your play time?”

“I said to them, ‘That’s the problem, I can’t. I keep coming back, I keep playing, I can’t stop; you guys have to help me stop.’ ”

Red flags

The former gaming addict now works full time with Generasi Gemilang, a non-profit social welfare organisation, where he is a leader for its cyber wellness programme. Part of his job is to reach out to both youth and their parents through workshops, talks, courses and counselling. He teaches parents about video games, and even how to play them, and educates young people about cyber wellness.

He doesn’t blame video games for his past addiction. He hasn’t even stopped playing them. The difference is that, he has a balanced life.

“Gaming is recreational for me now,” he explains, adding that important things like work and having a non-virtual social life take precedence, which is what “cyber wellness” is all about.

“It’s about the positive use of the Internet and having a healthy, balanced life,” concurs Nick Foong, Generasi Gemilang’s head of cyber wellness. “The Internet and games are here to stay. We all love our social media, it’s there to enhance our lives but it should never be the centre of it.”

Though Foong, 42, can’t say for sure how serious the scourge of gaming addition is in Malaysia, he has encountered enough cases in his line of work to know that it’s cause for concern.

The definition of being addicted to gaming, he says, doesn’t depend on the number of hours spent playing, it relates to whether the habit is disrupting a person’s normal life.

Neglecting important things like school, work, and personal hygiene are some of the signs. Disturbances in the sleep cycle, reclusive behaviour, self-isolation and uncharacteristic behavioural changes are also major alarm bells.

Woo recounts a typical scenario where things have begun to go downhill.

“Shouting at my parents, for example, or throwing a huge tantrum when asked to stop playing, skipping meals, or lying about my video game usage.

“One or two such incidents here and there are probably normal. But if you notice them happening with uncharacteristic frequency, there may be a problem.”

Dealing with it

Before you throw your child’s console out the window, take a deep breath and resist the urge.
“The thing we recommend not to do is to just turn off the game and get the child all excited and angry,” says Foong.

There is usually a lot more to a gaming addiction than the game itself, he stresses.

“Games are not inherently bad, it’s how the individual uses (or abuses) them.”

Aside from being “fun”, research suggests that some people get hooked because games offer a source of self-validation or positive reinforcement for things lacking in other areas of their lives. Rewards, personal freedom, a sense of control and a connection to other players, to name a few.

Rewinding the clock on Woo’s addiction offers an insight into why he, and many other youths, are more likely to cross the line between a healthy amount of recreational game playing and obsession.

The first signs of his addiction appeared in secondary school when he would head straight for a cyber cafe after class, play until six or nine in the evening, and continue gaming into the early hours of the morning.

In school he would talk about the game at every opportunity, and he was usually so tired from playing the night before that he couldn’t concentrate in class. Worse, at the time he was having a lot of problems at school; he wasn’t doing well academically nor socially.

“But when I found out I was good at Counterstrike, I suddenly became a person that was really recognised.”

For him, gaming was also an excellent way of running away from family issues.

“By immersing myself in the virtual world I could disassociate myself from reality. I could forget my problems, feel good about myself, and feel like I was achieving something,” he remembers.

He made it to college but his problems persisted; he continued to avoid dealing with them. He would be so engrossed in the world inside his computer that sometimes days would merge into one another, and the only breaks he took were for food and going to the toilet.

In Woo’s case, the reasons for developing a gaming addiction are evident.

But Foong points out that banning the game only deals with the immediate symptoms, and not the underlying causes. In today’s technology-driven society, such a “solution” also poses practical problems.

He says there will come a time, in college, for example, where laptops are necessary. In most neighbourhoods, there are also cyber centres scattered in convenient locations.

In the end, he notes that “banning” video games may end up being counter-productive, and may increase the likelihood that, in order to feed their addiction, the person you are trying to help starts lying about their game usage.

In a bid to enforce their “ban”, parents often ask how they can check on or monitor their child. The truth is, there is no easy solution to this.

The only real way of ensuring their children are spending as much time as they say they are is trust, which comes from having a healthy relationship with them.

“It won’t be easy and the problem won’t just go away overnight. You have to be committed to helping them and accept that it may take time.”

It is interesting to note that some psychologists see “addiction” as a kind of attachment disorder, with humans being driven by an inherent need for pleasure and gratification. When people are unable to establish these things through interpersonal relationships, they hypothesise that we turn to substances and eventually become addicted.

Nurturing parenting, on the other hand, has been correlated to high self-esteem in children, which is said to reduce the risk of addictive behaviour.

In other words, if a long-term solution is what you’re looking for, the objective should be about building trust with the child, so that you can help them with their problems.

Spending time with them is the first step, says Foong. In addition to building a bond, it serves to directly help cut down the number of hours spent gaming.

“Rules without relationships will always lead to rebellion. And when I say spending time, I’m not just talking about the token dinner.” Quality time could be in the form of one-on-one sessions, watching a movie, doing sports, washing the car.

“Find out what the child is interested in doing; doing that regularly will help to break the routine habit of gaming,” he advises.

Bonding sessions

Foong also suggests parents step into their child’s shoes and learn about the game. This will help them understand what is so appealing about it, and also provide a common ground where they can connect and bond with their child.

He recounts how this really helped to build a relationship between a niece and her aunt after a family tragedy thrust them together.

“The aunt wanted to find out how to connect with the niece, who would usually come home after school and spend hours playing MapleStory, so we advised her to learn the game. Woo taught her the basics of the game.”

Foong asked the aunt to take her laptop into a public space, the living room, and play it.

“When the niece came in she said her usual ‘Hi’, and then ‘Wah, you play MapleStory!’ The niece sat down and they talked for almost 45 minutes, just about MapleStory.

“Eventually, they started talking about other things too, like school, her teachers and her friends.”

Bonding is an important exercise.

“It’s about earning trust, most often parents won’t approach the issue through conversation. It will be an interrogation, which, for teenagers especially, won’t work,” says Foong.

Once a bond has been established, the next step is to find out what motivates the person, so that a productive alternative to gaming can be found.

In the case of 17-year-old gamer Brian (not his real name), his mother discovered he had an interest in learning to play the guitar and bought him one, signing him up for classes.


It worked. Brian took to his new hobby and now spends fewer isolated hours at his computer while he practises his guitar and meets up with friends to jam.

Foong stresses that once the foundations of a relationship have been established, it becomes easier to address the gaming issue successfully.

“Boundaries and limitations to the number of gaming hours per day should be mutually agreed upon by both parties. If a child has had a say in setting their own rules, they will be more likely to stick to them.”

As much as most parents would love to hear it, however, there is no universal benchmark for how many hours of gaming per day is acceptable.

“The situation shouldn’t be judged on how many hours are spent playing, but whether they have managed to balance between gaming and other important activities.

“Each person’s time management skills may differ, but when a person finds time to play games, to study, to be with friends, to do sports, to be with family, that’s what we should be aiming for.”

If you suspect that you or someone you know has a gaming problem, there are a number of websites that offer advice: try www.video-game-addiction.org or On-line Gamers Anonymous at www.olganon.org.

How do you control your children’s gaming activities? Or, do you? E-mail us at star2@the star.com.my.

The fear factor in property

Rehda said some people are buying as they are worried prices will go up
 By THEAN LEE CHENG leecheng@thestar.com.my

PETALING JAYA: Property developers and consultants from Penang to Johor are generally bullish about the residential property market and do not think there is a bubble.

They are of the view that there are two types of buyers, one who is buying out of need and the other out of fear that prices would go up further. The speculative element which was evident a few years ago has dissipated.

Real Estate and Housing Developers' Association (Rehda, Penang) chairman Datuk Jerry Chan said: “Buyers have money which they would like to park somewhere.

“Sales this year have been better than last year, driven by fear rather than the speculative element,” said Chan who is also group managing director for Penang-based Asas Dunia Bhd.

Chan was commenting on a report Debunking the property bubble myth by CIMB which said that talk of a property bubble was overstated as the sharp rise in residential property prices over the past few years was confined to selected areas.

“Affordability is near its all-time high and prices have to surge 50% to 100% before affordability falls to pre-Asian financial crisis levels,” the report said.

The report said it was surprising that residential prices had not risen at a faster pace as new supply had fallen significantly over the past few years.

Chan said tourism was also very big in Penang and if China and Indian nationals were to buy in Penang, it would “turn the market upside down.”

“So I foresee Penang prices would continue to rise because of inadequate supply of land, not because of inadequate developments,” he said.

In the Klang Valley, Reapfield Properties Sdn Bhd chief executive officer Gerard Kho said domestic demand for residentials was expected to be strong until the middle of this year.

Managing director for the Khong & Jaffar group of companies Elvin Fernandez said “it is not a question of whether there is a bubble or not but whether prices in certain areas are tied in to fundamentals or not.
“And we know in certain hot spots, they are not,” Fernandez said.

In Johor, KGV International Property Consultants Samuel Tan said the state was undergoing a transition because of the Iskandar Malaysia factor.

“New houses entering the market are priced a lot higher than three years ago but the market is accepting it,” he said.

Tuesday, 6 March 2012

Wife of China next president Xi Jinping

China's Singing Future First Lady



BEIJING, (AFP) - For the first time since Mao, China's next leader will have a wife who is famous in her own right: Xi Jinping will ascend to power with hugely popular singer Peng Liyuan at his side.

The soprano, who holds the rank of general in the army, is renowned from Shanghai to Urumqi and starred for 25 years in CCTV state television's Lunar New Year gala, a broadcast watched by hundreds of millions of viewers.

Her husband is widely expected to become China's president next year and will be under the spotlight at the annual set-piece session of the country's parliament, which opened Monday.

Since the fall of Jiang Qing, Mao Zedong's last wife and the widely-loathed leading member of the Gang of Four blamed for the worst excesses of the Cultural Revolution, Chinese leaders' spouses have been expected to stay in the shadows.

''After the Mao era, the wives of senior Chinese leaders stopped appearing in public,'' said Zhang Yaojie, a researcher at the National Academy of Arts.

But Peng will be a deeply atypical first lady. In videos seen on the Internet, the 49-year-old seizes the limelight with her high cheekbones, thick jet-black hair, and radiant smile.

Her costumes range from military uniform to richly embroidered ethnic dress, and her repertoire includes syrupy melodies and folk songs whose lyrics have been altered to glorify the Communist Party.

Apparently in perfect harmony with her husband, a Party ''princeling'' with strong military links, her ver-sion of one traditional Tibetan tune describes the People's Liberation Army (PLA) as ''the saving star of the Communist Party''.

Peng, who comes from an area in the eastern province of Shandong known for its peonies and was nicknamed the ''Peony Fairy'' by her admirers, joined the army at the age of 18.

A semi-official biography posted on Chinese web portals tells how she began as an ordinary soldier, but began performing at PLA shows to boost troop morale.

In the 1980s she was one of the first people to take a master of arts in folk music in China. Her professor has spoken of her dedication to her studies.

Peng has performed in 50 countries and won many awards, but it was the Lunar New Year gala that propelled her to stardom.

When she finally retired from the television show in 2008, some speculated that it was to avoid overshadow-ing her husband, who was then far less well-known than her but had just joined the Politburo Standing Committee, the party's highest-ranking body.

''As an artist, she may suffer, in the way that Carla Bruni has a bit,'' said Michel Bonnin, director of the Franco-Chinese Centre at Tsinghua University, referring to the former model and singer who married French President Nicolas Sarkozy.

But Peng can help Xi ''to have a less dull image than Chinese politicians usually do,'' Bonnin added.

In interviews with Chinese media, Peng heaps praise on the ''ideal husband'' she married 25 years ago, and with whom she has a daughter, now a student at Harvard.

''He is simple and honest, but very thoughtful,'' Peng told the China News Weekly, adding that he has told her: ''In less than 40 minutes after I met you, I knew you would be my wife.''

But Peng's parents were not keen to see their daughter marry such a senior figure, fearing she would not be treated well because of her humble origins.

''He treats me like a little sister. Jinping is always busy. He is concerned about thousands of households, without thinking of himself,'' she said on the government site China.org.cn.

''When he is at home, I cook the dishes he likes to help him relax.''

Peng has been keen to convey a homespun image, telling the People's Daily's Huanqiu Renwu magazine she has simple tastes, enjoying ''going to the market by bicycle and bargaining with vendors''.

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Monday, 5 March 2012

Learn to ‘sow to reap’



TRANSFORMATION is the catchword in schools nowadays. Every headmaster and principal seems to be enthusiastically talking about transformational change.

They aspire to see their schools attain better grades and higher rankings in public examinations, gain more medals and awards in sports and co-curricular activities, and own a well disciplined student populace.

All these are very well and good. The Education Ministry deserves commendations for having thus inspired the schools.

While the objectives for school improvement and advancement are noble, the same nevertheless cannot be said of the means and ways by which some school heads use to arrive at them.

To achieve higher and more, some heads think it right to just do more and more of what they have been doing all along.

So, to secure more and better grades, they direct more/extra holiday classes, more workbook exercises/homework, more trial exams/tests, more scores/exam analyses, more motivational seminars/workshops, and etc.

To gain more and greater sporting medals, awards and honours, they want to see more training/practice sessions, more trial runs, more friendly matches and more competitions.

To improve discipline, they want school rules and regulations more stringently followed and enforced. And, if the need arises, new rules and regulations are introduced and implemented. More teacher “power” is also deployed to catch and punish the culprits.

This “doing more of the same” approach seems to be the understanding of these heads and their application of transformational change. While their putting in more efforts does drive results upwards to a certain extent, their advocacy of the “doing more of the same” culture has certainly driven their charges up the wall.

Doing more of the same, even more efficiently, is merely managing a cause. Schools will go forth all right, but very much stereotypically. It is not transformed. It experiences no innovation, no creativity, no paradigm shift; it is, in fact, still in the same old band of performance.

To execute transformation, school heads must play the role of both manager and leader. It is not just about managing efficiently; it is more about leading effectively.

School heads must come out of their comfort zone of doing the same old and routine things right, even if it is with greater intensity and frequency.

They must begin to think of new, innovative and creative approaches to doing the right things. It’s then and only then that their schools will truly move forward, reach new heights and acquire a new, more enriching learning culture.

I have seen schools that had gone all-out to achieve better grades in exams using the “doing more of the same” approach, having their results moved up by a certain percentage point for a year or two, and then dropping again in the following year(s).

The results behaved like a yo-yo within a fixed range of percentages. These schools were not really out of the deep, so to say. The year’s results depend very much on the available crop, with the schools’ efforts making an insignificant difference.

Instead of just focusing on teaching students how to study to get better grades in exams, school heads should encourage their teachers to impart upon students the importance and the know-how of learning effectively and efficiently.

I always believe that when a child wants to learn, his/her grades will take care of themselves. Of course, it is more difficult to teach learning for the sake of acquiring knowledge than to teach studying for the sake of scoring in exams. Here indeed lies the essence and the challenges of transformational change.

There is much truth in the cultural proverb “Sow a thought, reap an act. Sow an act, reap a habit. Sow a habit, reap a character”.

School heads need to initiate activities that will facilitate sowing. It is wrong simply to prioritise and busy themselves with drafting and establishing new rules and regulations to restrict and constrict further, and to catch and punish undisciplined students.

A mind that is made to conform by “laws, rules and regulations” is not going to be transformed. “Sowing to reap” is a leader’s calling; the essence and challenge of transformational change.

Transformation is not about doing more of the same.

Some school heads need to reassess and reorganise their approach to transforming their schools lest their teachers be unjustly and overly burdened.

LIONG KAM CHONG, Seremban.

Malaysians, work hard to succeed !

Hard work, long hours and a focused approach ensure the country and rakyat succeed

I AM an amateur musician and I play the guitar and I sing. I like all types of music but one that tugs at my heartstrings is the blues.

We all know what the blues are: simple, direct, strongly expressive music with a steady beat and rhythm, leaving plenty of space for singing and solo instruments. Letting it all hang loose, so to speak.

But to me singing the blues means eventually rising above the blues, even if you have to pour out all your problems and wail for a while. That's what this column is about.

I am fortunate to be involved in and driving one of the most exciting projects around. What can be more meaningful than raising incomes and the quality of life for all Malaysians, irrespective of race, creed or religion?

But as hopeful as I am that we can do this, I am not so naive that I do not know that there are many problems and obstacles to overcome before this dream becomes reality.

So I will sing the transformation blues here: I will air the problems, the big ones, which face us in our programme to transform us into a high-income nation. And then we will say what we are doing to overcome them.

Idris: ‘I like all types of music but one that tugs at my heartstrings is the blues.’ 
 
A big part of this is putting right misinformation. We will need your help as Malaysians to understand what we are trying to do and to tell us what it is that we are not doing right and what we should be doing instead. The e-mail contact is in the logo above.

We promise to read every response and if appropriate respond to some here. We ask only three things: that you are fair, reasonable and realistic.

Concept of income

The first thing I would like to explain is the concept of income, which is key to the entire concept of transforming into a high-income country. At what level of income do we become developed and achieve high income? How do we do it? How do we measure this? And can we achieve it?

A lot has been said about how we measure income and the level of income in 2020, and how we have not taken the right things into account. It's been said that we have used the wrong measures. We have not.

Intentionally, we have used globally accepted definitions and methodologies, i.e. the World Bank approach and benchmarks. Without getting too technical, we used the current definition for high-income countries in nominal terms and then using projected inflation rates, derived what it would be in US dollars in 2020.

Hence, the figure of around US$15,000 per person was arrived at RM48,000 based on a projected exchange rate of RM3.20 to the US dollar. The current rate is close to RM3 which means that if this rate prevails, the target will be lower at RM45,000. In 2009, our income, using prevailing exchange rates, was US$6,700 per capita. Yes, we have a long way to go but we are well on the way.

From here, we project the population at 2020 and multiply that by the income per capita to obtain the total income of the nation in 2020, in nominal terms.

Working backwards, we then estimate the growth rate needed to get there, again in nominal terms.

Then we take out the projected inflation rate from this figure to arrive at the real rate of income increase that we need for the nation as a whole to achieve high-income status which is on average around 6% annually, assuming all other factors hold equal.

“Real” here means the income is adjusted for inflation and reflects the actual rise in income even after taking into account price increases. The real gross national income or GNI is just the real gross domestic product plus net income from abroad.

Our methods are rigorous and our results were reviewed in January 2012 by an international accounting firm and a globally renowned panel of experts.

The latter also shared outside-in feedback and global best practices. We have no interest in deceiving anybody on how we are performing.

That is how we set the target.

Getting there

The next thing is getting there. Basically, we identify all the major projects on hand and estimate their contribution to economic and, ultimately, income growth. We don't pretend that these are accurate but they are the best estimates we can get. No country in the world can accurately measure and predict with precision its economic growth.

These estimates are also targets. If we can meet them year-to-year, we are on our way. If we run short we have to do more, and if we are doing very well we can lift up our hands to the heavens and give our thanks to God. It's a moving, dynamic target and it changes all the time.

Yes, there are risks to the achievements we have set out for ourselves. What worthwhile endeavour comes without risks? The world economic growth can remain low for longer than expected. We are not completely insulated from the world. The private sector may not invest as much as it should.

But what we are doing at the Performance Management and Delivery Unit is to get the Government to facilitate all efforts to increase incomes, no matter by whom. And we will monitor to see if we are on track and recommend the appropriate changes to put us back on track, as and when necessary.

According to Tan Sri Nor Mohamed Yakcop, Minister in the Prime Minister's Department: “At the end of last year, annual per capita income in Malaysia rose to more than RM29,000 (US$9,400).”

At current prices, this is 12% growth compared with RM26,174 (US$7,985) in 2010 and RM23,850 (US$6,677) in 2009. This is a big improvement compared with only RM1,070 (US$347) in 1970.

In April, the Government will release a full report on the performance of Economic Transformation Programme (ETP) in 2011.

Our income growth in the last two years shows that we can achieve the targets that we have set for Malaysia as a nation. If the projects under the ETP and others come through, we will do it.

We may also see others setting up their own projects to take advantage of opportunities, and that would definitely be a bonus.

This shows that we have made good progress as a country. Under the leadership of our Prime Minister, we are on our way to transforming Malaysia to become a high income economy. Hard work, long hours and a focused approach are being put into ensuring that Malaysia and Malaysians succeed locally and globally.
Any Malaysian can join us on this journey. Simply by working harder and smarter you can contribute to increasing your employer's revenues and growing yourself, hopefully.

That way, all of us Malaysians can move forward together to achieving our goal of becoming a higher income nation and creating a better life for all of us. That's what transformation is about.

Together, we can do it.

Datuk Seri Idris Jala is Minister in the Prime Minister's Department and CEO of Pemandu. Feedback and comments are most welcome. 

Parti Cinta Malaysia (PCM) seeking love from Penangites

Seeking love from Penangites 

One Man's Meat By PHILIP GOLINGAI

Malaysia’s ‘love party’ hopes Penangites will give it a chance and send at least three of its members to Parliament and the state assembly.

THE Thaksin Shinawatra of Batu Kawan hobbled from table to table at a school hall in Seberang Prai, Penang, shaking hands with dinner guests before reaching the VIP table.

The 50-year-old politician was on crutches. He had broken his right ankle at his home in Penang on New Year’s Day.

During the dinner, organised by the Benevolent House of Charity, volunteers sold Chinese newspapers to collect funds to build a Chinese school.

The total collected was RM1,950 and, true to his moniker, Huan Cheng Guan topped up the amount to RM5,000 by donating RM3,050. He also donated RM1,000 to Benevolent House of Charity.
Strong support: Huan, on crutches, being greeted by guests at the Benevolent House of Charity dinner at SJK (C) Keng Koon hall in Bukit Mertajam.

“The money comes from my personal savings. It is for a noble cause,” he said.

It was a typical Sunday night for the vice-president of Parti Cinta Malaysia (PCM).

He had earlier spent 20 minutes at a Chinese wedding in Dewan SJK (C) Kampung Valdor, a few kilometres from SJK (C) Keng Koon where the charity dinner was held.

“As a politician, you need to go to the ground to meet the people. You need to have the personal touch,” he said.

Ninety minutes into the dinner, Huan left for nearby Restoran Long House to meet PCM members and supporters for a seafood dinner.

“This is not an election dinner. The election is still a long time away,” he told about two dozen guests, mostly Indians, seated at three tables.

While his guests waited for curry prawn and fried rice to be served, I interviewed Huan.

“Why are you called the Thaksin of Batu Kawan?” I asked. I was told he is as generous as the former Thai prime minister.

“Who said that? I’m not the Thaksin of Batu Kawan,” replied Huan, who describes himself as “blunt and rough”.

“Maybe I am called that because even though I am no longer their MP, I seldom reject associations and people seeking my help as long as they are for a good cause.

“Maybe it is because I am not stingy for if I have RM100, I don’t mind donating RM90 as I can’t take my money along with me when I die.”

Huan is the only recognisable face in the Penang-based party born on Aug 2, 2009.

“Many people know me as I’ve been an MP and a Gerakan vice-president,” said the politician who “sacked himself” from Gerakan in 2009 after it suspended him for three years for openly attacking the party and its leadership.

Huan was elected Batu Kawan MP in 2004. In 2008, he was dropped so that Gerakan president Tan Sri Dr Koh Tsu Koon could contest the constituency, only to lose.

Huan contested in the Bukit Tambun state seat (in the Batu Kawan parliamentary constituency) and lost.

The president of PCM is 41-year-old businessman Tang Weng Chew who, according to Huan, is very busy as he has business overseas. And the secretary-general is 35-year-old accountant Loo Kien Seang, who is equally busy.

“I asked Loo to contest (in the coming polls) but he said: ‘if you want me to contest, I will resign (from PCM)’,” he said.

PCM was formed as a third force to be an alternative to Barisan Nasional and Pakatan Rakyat. Many naysayers predicted the party would not last more than one or two years.

“But we are still alive and kicking. We don’t have any internal problems. In our party, position is not important,” he said.

On allegations that his party was pro-Barisan, the vice-president said: “PCM has limited resources so we are focusing on Penang.”

In the coming polls, PCM will contest in two parliamentary and eight state seats in Penang.

“As a small party we have to be realistic and we target to win one parliament and two state seats,” said Huan, who is eyeing the Batu Kawan parliamentry seat and the Machang Bubok state seat.

He hopes Penangites will give PCM a chance to voice out their issues.

“Pakatan has too much power and when they have too much power, they become very arrogant,” he said.

The “love party” is expecting some love from Penangites.

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Malaysia's 13th General Election Tell-tale signs, by June or next year?

Sunday, 4 March 2012

Malaysia's 13th General Election Tell-tale signs, by June or next year?

Tell-tale signs that polls are getting close

Sunday Star, PETALING JAYA: So when will the next general election be held?

Very soon, judging by developments in the last few days.

Datuk Seri Najib Tun Razak announced the halving of toll between Kajang and Kuala Lumpur effective yesterday, just months after the Prime Minister abolished it altogether for the Cheras-Petaling Jaya expressway.

On Tuesday, amid news of growth, it was disclosed that investors have pledged RM9bil in projects in the first two months of the year in the ECER the East Coast Economic Region comprising Johor, Pahang, Terengganu and Kelantan.

Now, the Government is coming to the rescue of commuters in Kelantan with an injection of RM16.1mil to keep bus services in the PAS-controlled state afloat.

This comes on top of ongoing aid programmes, including giving RM500 to families earning less than RM3,000 and RM100 to schoolchildren all of which seems to indicate that the polls could be just around the corner.

A June window period
ON THE BEAT By WONG CHUN WAI

June has suddenly become the favourite month in the guessing game of when the next general election would be called.

There are two key issues that need to be resolved before the elections can be called. They include the Public Service New Remuneration Scheme (SBPA) involving 1.4 million government servants, who form the basis of the government votes.

Last week, Tan Sri Muyhiddin Yassin said the scheme issue was expected to be resolved by next month, adding that considerable progress had been made so far by the special committee to review the scheme.

“We should wait for the right moment (for it to be announced),” he said after a special meeting with personnel from the public service at Stadium Negara.

The Prime Minister had ordered a review of the scheme after criticism from government servants that it was lopsided and only benefited top civil servants.

There had been reports that under the proposed SBPA, certain categories of senior officers would enjoy a salary increase of at least 50%, which worked out to an average of RM5,000 per month.

The top government officers in the premier grades would get their salaries adjusted by between RM30,000 and RM60,000 a month, which understandably caused much unhappiness among the rank and file.

The quick intervention of Datuk Seri Najib Tun Razak to put the scheme on hold has been well received by the civil service with the sentiment that he had put a stop to what many felt was grave injustice. Much progress has since been made to end this impasse.

Muhyiddin’s announcement is pertinent as it gave an indication of how the issue has been resolved.

Another key issue is the proposed listing of Felda Global Ventures Holdings (FGVH), which Felda group chairman Tan Sri Mohd Isa Abdul Samad said had received the support of its 112,000-odd settlers.

Last week, he gave an assurance that the settlers would retain full ownership of their land and benefit directly from any potential revenue realised from the listing exercise. He also said the settlers’ holdings in Koperasi Permodalan Felda (KPF) would be untouched.

The Felda settlers’ interest would be directly protected by a special purpose vehicle (SPV) and any potential proceeds resulting from the proposed listing would not be channelled through KPF, but through the SPV, he added.

KPF has about 220,000 members, 112,635 of them settlers. The rest are Felda employees and the children of settlers.

There has been talk that FGVH’s market capitalisation could reach as high as RM21bil upon listing, with many of the Felda settlers looking forward to the plans which had received huge coverage in the Bahasa Malaysia dailies.

The civil service and the Felda settlers in the rural constituencies have long been a backbone of the ruling Barisan Nasional and these two concerns obviously needed to be addressed before any elections can be called.

There is another issue that needs closure – the National Feedlot Corporation controversy, which has dogged the headlines. Investigations are being carried out by the police and the Malaysia Anti-Corruption Commission.

If elections are not called by June, then it is unlikely to take place until next year. Fasting starts at the end of July, with Hari Raya falling in the third week of August while the Haj season begins in September and ends in November.

The Dewan Rakyat is set to begin its 20-day meeting from March 12. This will be followed by a second meeting from June 11 to June 28 (12 days). The final meeting of 34 days, which includes presentation of the Budget, will be from Sept 24 to Nov 27.

The Budget, once tabled, would be debated on until next year when the Dewan Negara meets, before it is officially approved.

In short, June will be Najib’s last window period whether to call for polls. It also coincides with the school holidays, which start on May 26 and end on June 10. If nothing happens, then it is almost a foregone conclusion that it will take place next year.

Preparations for the elections appear to have gone high gear now with Najib making popular announcements almost every few days.

It is understood that the Barisan Nasional chairman has also started to meet individual heads of the various component parties.

The polls seem to be getting nearer for sure. As Najib continues his nationwide whirlwind visits, the urgency and the momentum are picking up.

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Are Malaysia a target for regime change?

COMMENT By CHANDRA MUZAFFAR

The forces that shape Washington’s attitude towards Malaysian politics and political leaders may have a hidden agenda.

IN his widely read blog (Feb 13, 2012), the former Prime Minister of Malaysia, Tun Dr Mahathir Mohamad, criticises the politics of regime change pursued by the United States of America.



He is concerned that Malaysia may also be a target for regime change. And the US candidate to head the new regime which will be in full, complete support of US policies, he says, is none other than the Leader of the Opposition, (Datuk Seri) Anwar Ibrahim.

Why should the US government seek regime change in Malaysia when the present Prime Minister, Datuk Seri Najib Tun Razak, has sought to further strengthen ties with Washington?

He has even employed a Washington-based public relations firm, Apco, to boost Malaysia’s image in the US. Najib’s personal relations with US President Barack Obama are supposed to be “excellent”.

And yet it is quite conceivable that the forces that shape Washington’s attitude towards Malaysian politics and political leaders may prefer Anwar to Najib for a number of reasons.

One, while Najib may have some rapport with formal leaders and the formal state, it is Anwar who has intimate links with the “deep state” in the US system.

It is the deep state represented by powerful interests such as the Zionist lobbies, the Christian Right, the bigwigs on Wall Street, the oil barons, the arms merchants and the media Moghuls which is in effective control.

To appreciate the distinction between the two, one has to reflect on Obama’s Cairo speech on June 4, 2009, which stated explicitly that “The United States does not accept the legitimacy of continued Israeli settlements” but in reality the formal leader has had to yield to the Zionists and the Christian Right who are enthusiastic promoters of Zionist expansion at the expense of the Palestinians.

Anwar’s entry into the deep state was through his close friendship with Paul Wolfowitz, the former US Deputy Secretary of Defence and one of the staunchest champions of Zionist power.

It was mainly because of Wolfowitz that Anwar became the first chairman of the Foundation for the Future in 2005, an organisation established ostensibly to promote democracy in West Asia and North Africa (WANA), but whose real purpose is to perpetuate US-Israeli hegemony over the region.

Even before this, in 1998, in the midst of the Asian financial crisis, Anwar was espousing an IMF-type solution to the nation’s economic woes, thus revealing his political orientation.

This is why during his first two trials for abuse of power and sodomy between 1998 and 2004 and during his recent trial for sodomy, the mainstream Western media went out of its way to demand that the Malaysian authorities acquit Anwar.

Wolfowitz and former US Vice-President, Al Gore even penned a joint opinion piece in the Wall Street Journal on Aug 4, 2010, urging the US government to persuade the Malaysian Government to “ act with wisdom” in Anwar’s trial.

A day before he was acquitted, on Jan 8, 2012, The Washington Post in an editorial warned that “If the verdict fails that test (Malaysia’s commitment to democracy and the rule of law), there should be consequences for Mr Najib’s relations with Washington.”

This was an undisguised, unabashed attempt by one of the media pillars of the deep state to pressurise a sovereign nation to submit to its will.

Two, if Anwar is the darling of the deep state in the US, it is partly because of his stand on Israel. In an interview with The Wall Street Journal on Jan 26, 2012, he reiterated his support for “all efforts to protect the security of the state of Israel”.

It should be emphasised here that support for Israeli security – contrary to what he is saying now – was not contingent on “Israel respecting the aspirations of the Palestinians”.

In the interview, Israel’s security stands by itself. It is diplomatic recognition of Israel that Anwar links to Palestinian aspirations.

Placing Israel’s security on a pedestal is the sort of gesture that the deep state and Zionists the world over laud, especially if the advocate is a Muslim leader. For Israel’s security has become the justification for all its policies of occupation, annexation and aggression in the last 63 years.

Israel’s security is the albatross around the neck of the dispossessed Palestinians and other Arabs who have lost their land and dignity to the occupying power.

It is obvious that by acknowledging the primacy of Israeli security, Anwar was sending a clear message to the deep state and to Tel Aviv and Washington – that he is someone that they could trust.
In contrast, the Najib government, in spite of its attempts to get closer to Washington, remains critical of Israeli aggression and intransigence.

Najib has described the Israeli government as a “serial killer” and a “gangster”. This has incensed the deep state.

Anwar, on the other hand, told Zionist friends in Washington two years ago that he regretted using terms such as “Zionist aggression” (Jackson Diehl “Flirting with zealotry in Malaysia” The Washington Post, June 28, 2010).

Three, Anwar is the choice of the deep state for another reason which in its own reckoning is becoming almost as important as Israel. This is the rise of China and what it means for US global hegemony.

Elements within the deep state appear to have convinced Obama that China is a threat to its neighbours and to the US’s dominant role in the Asia-Pacific.

Establishing a military base in Darwin, resurrecting the US’ military alliance with the Philippines, coaxing Japan to play a more overt military role in the region, instigating Vietnam to confront China over the Spratly islands, and encouraging India to counterbalance Chinese power, are all part and parcel of the larger US agenda of encircling and containing China.

In pursuing this agenda, the US wants reliable allies – not just friends – in Asia.

In this regard, Malaysia is important because of its position as a littoral state with sovereign rights over the Straits of Malacca, which is one of China’s most critical supply routes that transports much of the oil and other materials vital for its economic development.

Will the containment of China lead to a situation where the hegemon determined to perpetuate its dominant power seek to exercise control over the Straits in order to curb China’s ascendancy?

Would a trusted ally in Kuala Lumpur facilitate such control?

The current Malaysian leadership does not fit the bill. It has sustained and deepened the bond of friendship between Malaysia and China through increased bilateral trade and investments.

China is Malaysia’s biggest trading partner globally and Malaysia is China’s biggest trading partner within Asean.

China is most appreciative of the fact that Malaysia under the late Tun Razak was the first non-communist country in South-East Asia to establish diplomatic relations with China in 1974.

When his son Najib became Prime Minister in April 2009, China was the first country outside Asean that he visited.

In a number of regional and international forums, Malaysia has maintained that China is not a threat to its neighbours and does not seek global dominance.

These are views that do not accord with the deep state’s bellicose stance towards China. It explains why the deep state may be inclined towards regime change in Kuala Lumpur.

> Dr Chandra Muzaffar is president of the International Movement for a Just World (JUST) and Professor of Global Studies, Universiti Sains Malaysia.

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Saturday, 3 March 2012

See opportunities in adversity


ON YOUR OWN By TAN THIAM HOCK

I HAVE been having fun. Good fun. Five trips in the last 30 days. Holidays, business meetings, visiting my kids and watching the Il Divo concert in Jakarta with my wife. So my apologies to the readers who wrote in and have not received any reply from me.

One of my trips was to visit our supplier in Bangkok. I was pleasantly surprised when he said that his company did very well last year despite the tsunami and earthquake in Japan and the three-month flooding of Bangkok. He picked up additional Japanese customers who lost their regular suppliers because of the tsunami. Luckily for him, his factory and surroundings were not flooded, so again he picked up new customers.

No businessmen can predict how natural disasters will affect their business. There is a major element of luck. Good luck or bad luck.

I was also amazed that his company has been growing steadily through the years of continuous political turmoil in Thailand, frequent change of governments, street demonstrations, riots and street bombings. Still, it is business as usual. Especially for tourism. Their airport was crowded and immigration was horrendous. In comparison, the KLIA felt like a ghost town.

Over dinner, he explained that except for southern Thailand, the rest of the country has a homogenous society. No racial or religious issues. Only corrupted and power crazy politicians. I felt comforted. We are not alone.

All Thai companies and citizens have equal opportunity in business and education. So generally, entrepreneur wannabes can participate openly in almost every sector of the economy without government interference. Except for those businesses hijacked by politicians and their cronies. I comforted him. They are not alone

I have always joked with my Singaporean business friends that Malaysian entrepreneurs are much, much more creative than theirs. We have to be sensitive to additional external issues like religion, race and government/political business units. And only then, we start worrying about our business at hand and our real business competitors.

Singaporean entrepreneurs just have to be hardworking and efficient and they will make a good living. How boring it must be for them.

My good friend from the Philippines has gone through more hardships in his business life than all the other Asean counterparts combined. Political upheavals, natural disasters, warlords, gangsters, corrupted armies and an economically poor consumer population. But he is always wearing a smile on his face and treats each setback as a natural unavoidable event. As a devout Catholic, he feels God is always testing him.

To all those entrepreneur wannabes in Malaysia who are not sure of the type of business that you want to invest in, my advice is to go into a business that is not dominated by GLCs, a business that will not create issues with religion or race, and avoid investing in potentially natural disaster areas.

You will be stupid if you invest in residential and industrial properties in flood-prone areas or near toxic waste plants. God forbid if there is a major flood or an accident in an industrial toxic waste plant, you will be an unlucky owner of properties in a ghost town.

It is important that entrepreneurs understand the political and economic environment that your business operates in. This will greatly reduce the element of luck in your strategic planning and give you more certainty in forecasting the trend. Like my Asean friends have demonstrated, there is always opportunities in adversity or unnatural events.

For those who are looking for business opportunities, the coming 13th General Election is a big pot of gold, just in case you are not aware of it. Media companies are rubbing their hands in glee at the potential additional advertising revenue forthcoming.

Printers of outdoor materials and posters are preparing their raw materials due to short order cycles. Soft-drink and mineral water suppliers are salivating at the sharp spike in consumption. Caterers will make a killing handling all the kenduris. Coffee shops in sleepy towns, hotels and motels are prepared to raise prices at a moment's notice.

Then there is the cash handouts to the general population. Consumption of economic goods will increase substantially. Money supply in the economy will double. The general election is expected to contribute an additional 1% to our GDP growth, a point I am sure that has been accrued in our Economic Transformation Programme.

Malaysian entrepreneurs must learn from our Asean counterparts. See opportunities in adversity. Prepare for natural disasters or unnatural events. Stay calm when your environment is in crisis. Trust your luck. And you will do just fine.

The writer is an entrepreneur who hopes to shares his experience and insights with readers who want to take that giant leap into business but are not sure if they should. Email him at thtan@alliancecosmetics.com

Bank Negara Malaysia lending guideline is a blessing in disguise?

LIVING MATTERS By ANGIE NG

Loans
ENVIRONMENTALISTS and green champions must be applauding the lower number of cars that have been sold since Bank Negara's latest directive to banks to disburse the quantum of household loan based on a borrower's net income instead of gross income.

Since Jan 1, banks have to use net income instead of gross income to calculate the debt service ratio for loans. The guideline covers housing, personal and car loans, credit cards, receivables and loans for the purchase of securities.

The effectiveness of the ruling can be seen in the lower number of vehicles sold in January. At 40,948 units, it was 14% lower than in December 2011 and a 25% drop against January last year.

This goes to show that many of those who previously managed to sign up for new car loans and other types of consumer loans could be grossly over-geared and may have inadequate disposable household income. What's left of one's income after deducting payment for loan servicing, income tax and contribution to the Employees Provident Fund, differs from individual to individual, depending on one's financial commitment.

Don't forget that for many sole breadwinners, they also have to shoulder a host of other payments - spouse and children's household expenses and education fees, pocket money to ageing parents and dependents, and other miscellaneous expenses. The list goes on.

The central bank has good reasons to rein in the rising ratio of household loan to income as the benefits are manifold.

The measure should be applauded as I believe the right policy is the first step to steer people in the right direction of living within their means rather than allowing them to become dependent on debts to maintain their lifestyle.

With the prevailing uncertainties in the world today, it is a good time for families to consolidate their household income and expenses account. And along the way they can point out to their young ones about the virtues of being contented with what they have.

Instead of rushing to place booking for a new car whenever a new model comes out, it is nothing wrong to drive around in an older model as long as the vehicle is road worthy.

Don't forget that our young ones are always watching us, the adults, as their role model. In many ways, they are a mirror of what we are, so it is important for us to watch our thoughts, words and deeds. Remember the saying, “What goes around, comes around.”

As a mother to two teenage girls, I know - even our facial and body language would be scrutinised for “signs” of approval or disapproval. A friend had once vouched that her teenage girl (girls are said to be more mentally discerning) even use telepathy to read her mind - so beware of what goes on in our head when in their presence.

Come to think of it, since less people qualify for loans to buy cars now, it may be an opportune time to revert to cycling or better still, walking.

Cycling and walking are certainly more sustainable modes of moving around, more environmentally friendly and healthier options.

When there are less vehicles on the roads and facilities are provided for pedestrians and cyclists, such as covered walkways and bicycle lanes on roads and highways, the walking and cycling vogue is bound to take off.

Less petrol would be consumed and there would be less pollution from vehicular emissions.

As for the property sector, the net income formula and maximum loan-to-value ratio of 70% for a third and subsequent housing loan taken by a borrower would avert unhealthy speculative activities and rein in sharp jump in property prices.

The lower loan quantum would inadvertently increase demand for affordable housing products and developers would have to redesign their products to cater to this market.

The same maxim applies: If the house is still functional, stay put first. Moving into a newer and trendier place, although is a status symbol, incurs cost and may involve higher loan commitment.

Nevertheless, those with the means and surplus cash to spare can opt to invest in multiple properties as they still offer one of the best hedge against inflation.

Deputy news editor Angie Ng says amid the uncertainties eclipsing the world today, major overhauls need to be made to the way people live, and key to this is to be sustainable.

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Trend of Malaysian moderately-priced houses

Moderately-priced houses in trend

By DAVID TAN davidtan@thestar.com.my

THE trend of developing residential properties priced between RM200,000 and RM400,000 is picking up in Penang, a state where property prices are second highest in the country after Kuala Lumpur.

Tambun Indah Land Bhd, PLB Engineering Bhd, Ideal Property Development Sdn Bhd, and Belleview Group are some of the Penang-based developers with plans to launch moderately priced projects on the island.

With the exception of Belleview, Tambun Indah, PLB, and Ideal Property are taking advantage of the plot ratio guidelines introduced in 2010 which allowed developers to build 87 units per acre, with a total built-up area of 122,000 sq ft per acre and priced at between RM200,000 and RM300,000.
Geh says the demand for houses comes from newly-weds, families and retired couples.

Under the revised guidelines, developers have to allocate 5% of the total units in a development scheme to be priced at RM200,000, 10% to be priced at RM300,000, and 5% not exceeding RM500,000.

Tambun Indah's Straits Garden in Jelutong, PLB's Sungai Nibong Residences and Ideal Property's Valencia Park are the new projects using the revised guidelines.

The layout plans of the projects have been approved and the company is now waiting for the go-ahead for the building-plans.

Previously, the plot ratio guideline for high-rise was 60 units per acre or 42,000 sq ft per acre or 30 units of 1,400 sq ft apartments.

The revised plot ratio guidelines are applicable in areas where it is allowed to develop 30 units per acre and above and in areas designated as commercial/tourism areas under MPPP's structural planning and development control plan.

They are not applicable for prime residential areas such as Jalan Tunku Abdul Rahman (popularly known as Ayer Rajah Road), Jesselton area, existing established housing zones and general housing areas, George Town Heritage Site (which includes the buffer zone), certain areas in Tanjung Bungah and Tanjung Tokong.

Real Estate and Housing Developers' Association (REHDA, Penang) chairman Datuk Jerry Chan said the new plot ratio guidelines for the island was a win-win situation for both the developers and the state government.

Ho says the RM100mil Autumn Tower project does not come under the new guidelines.
“The guidelines make the developers supply affordably priced properties and in return the developers get to better utilise the land for development,” Chan said.

Tambun Indah is proposing to develop a RM180mil high-rise residential project called Straits Garden in Jelutong on a 1.69ha site, the north-east district of the island, with 15% of the total units priced between RM200,000 and RM300,000.

Tambun Indah managing director Teh Kiak Seng said the project's layout plan had been approved and was now waiting for the building-plan approval from the relevant authorities.

“The project located in the heart of the island and would feature modern apartments, office suites and shop lots to meet the demand for commercial and lifestyle properties in the central business district.

“We anticipate to commence development in the fourth quarter of the year. Targeted completion is by the fourth quarter of 2014,” he added.

In Sungai Nibong, which is close to the Penang International Airport, PLB plans to launch the Sungai Nibong Residences, comprising 98 units of medium-cost apartments on an over 0.4ha site.

PLB executive chairman Datuk Ong Choo Hoon said the project has a gross development value (GDV) of RM70mil and was expected to be launched in the third quarter this year.

Some 15% of the total units would be priced between RM200,000 and RM300,000 in accordance with the conditions of the revised plot ratio guidelines.

The lay-out plan of the project had been approved and is now waiting approval for it's building plan.

Ideal Property also plans to launch 788 apartment units called Valencia Park on a 9.1-acre site in Relau, south-west district of the island in September.

Ong says the Sungai Nibong Residences is expected to be launched in Q3.

Ideal Property managing director Datuk Alex Ooi said the project, which had a GDV of RM330mil, comprised apartments with built-up areas of 1,000 sq ft and 1,200 sq ft.

In the past two years, Ideal Property had developed and sold over 500 units of apartments priced between RM300,000 and RM400,000 in the south-west district.

Belleview's RM100mil Autumn Tower project, comprising 220 condominiums at All Seasons Park in Bandar Baru Air Itam, does not come under the new plot ratio guidelines.

“The project is scheduled for launch in May 2012.The pricing for the units ranges between RM350,000 and RM400,000”, said Belleview managing director Datuk Sonny Ho.

Meanwhile Raine & Horne Malaysia director Michael Geh said the sub-sale transactions of high-rise properties priced between RM300,000 and RM400,000 were very active in the south-west district of the island in Relau, Bukit Jambul, Bayan Baru, Bayan Lepas, and Sungai Ara.

“Properties in these locations have been steadily rising at about 10% per annum,” Geh said, adding that there was strong take up for newly-launched properties in the first two months of 2012.

“We observed that the demand came from newly-weds, families that want to upgrade their lifestyle, and retired couples looking for smaller high-rise properties in prime locations,” he said.

In Seberang Prai, Asas Dunia Bhd is undertaking some 1,357 units of landed properties this year with a GDV of RM226.7mil in Central and South Seberang Prai.
Ooi says Valencia Park, comprising apartments, has GDV of RM330mil.
Group managing director Chan said the price ranged between RM120,000 and RM580,000, depending on the type of property and the location.

The properties comprised largely single-storey terraced, single-storey semi-detached, and single-storey bungalow houses.

Over the past two years, the prices of residential properties have increased from 10% to 15% per annum on the island, making properties in the RM200,000 to RM400,000 price range increasingly rare.

Prime Minister Datuk Seri Najib Tun Razak had last July launched the first phase of 1Malaysia Peoples' Housing (PR1MA) programme, under which residential properties priced between RM150,000 and RM300,000 would be developed.

PR1MA is specifically for first time house buyers and moderate-income Malaysians earning not more than RM6,000 monthly regardless whether they work with the government, the private sector, or self-employed.

Some 42,000 houses under PR1MA have been identified for 20 sites in the Klang Valley, Rawang and Seremban, and companies like Sime Darby Bhd, SP Setia Bhd and Putrajaya Corp have been invited to participate.

In the last budget announcement, the federal government also raised the ceiling price for first home scheme buyers to RM400,000 from RM220,000 with 100% loan financing and stamp duty exemption to promote home ownership among the middle-income groups.

As Sime Darby owns a large bulk of land bank in Penang via Eastern & Oriental Bhd, the state could be a site for moderately priced housing projects under PR1MA.

Eastern & Oriental Bhd is reclaiming 740 acres for the second phase of the Seri Tanjung Pinang project in Tanjung Tokong to develop two islands for mixed development projects, which will have a GDV of RM12bil.

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Malaysia a real-estate shopping destination  

By THEAN LEE CHENG

Welcoming foreign buyers will not necessarily affect property prices


LATE last year and once again about two weeks ago, at least two courses were organised to equip property agents and developers to sell Malaysian properties abroad.

In one of them, real estate professionals paid a few thousands of ringgit to attend a Certified International Property Specialist (CIPS) course to prepare them to sell Malaysian properties overseas. In another, a tax consultant and a lawyer were invited to share their experience and expertise when selling Malaysian properties.

Tan: ‘Our properties are very affordable to Singaporeans. In the region, our real estate is attractively priced.’
 
For about a decade now, developers who have projects around the KLCC area, Penang and Johor have been taking their offerings to Singapore, Hong Kong, Japan, London and China. So far, these overtures have been limited to residential and commercial developments. On a broader scale, the Malaysian government has also been encouraging foreigners to buy into Malaysian realty and has started networking with governments and local authorities to make itself known via government agency Malaysia Property Inc.

The question is: will foreigners buying into Malaysian real estate encourage developers to focus on building high-end developments, which are way above the affordability levels of locals?

Invariably, references are made to Singapore and how foreign buying has brought in that element of volatility because at the first sign of trouble, the foreigner leaves the island state.

Malaysia Property Inc (MPI) chief executive officer Kumar Tharmalingam likes to debunk this: “The number of foreign buyers buying into Malaysian properties is very small. Sales to foreigners only make up 2% of total property sales in Malaysia compared with Singapore's 30% . Singapore's volume of properties entering into the market annually is about 20,000 units and foreigners are only allowed to buy private condominiums; which averages about 6,000 units.

“Malaysia has about 120,000 units entering the market annually and 2% of this is 2,400 units.”

Kumar also says it is not possible to compare Malaysia with Singapore and Hong Kong and the market dynamics are very different.

MPI was set up in 2008. The government-property agency has two core objectives: to create international awareness and to establish connections between foreign interests and Malaysian real estate industry players. Its scope of work is not limited to just residential and commercial properties but includes the whole gamut of property investment, from land acquisition to building of factories if this is needed by the foreign investor. MPI has been branding itself for the last 18 months. This year will see the agency implementing some of their strategies when it matches foreign companies with Malaysian projects.

“MPI and much of what we would like to do is still pretty much work-in-progress,” says Kumar who took over the reigns of the agency in Feb 2010.

“MPI is an extension of three government agencies. These are national trade promotion agency Matrade, International Trade and Industry Ministry and Malaysian Investment Development Authority,” he says.

MPI's work is very much tied up with the foreign direct investment. The foreign direct investment will first seek out one of the above three agencies. After that connection is made, and when a foreign investment is approved by the government, there will be a need for land or office space, or even accommodation for staff.

Kumar: ‘Sales to foreigners only make up 2% of total property sales in Malaysia. Of the 120,000 units entering the market annually, 2% is 2,400 units
“There is a time lag between the foreign investor applying for government approval for his investment and his need for real estate. But which ever way one looks at it, land, office building, factories or staff accommodation, real estate comes into the picture. Because these three agencies are not involved in property matters, the requirements of these investors will be eventually be be referred to MPI.

“Or it could be a foreign direct investor who is keen to enter into a joint venture with our local boys. The South Koreans, for example, are keen to contribute a certain amount of equity, but would like to negotiate' a tender as opposed to having an open tender. This was the model they used in Vietnam and China for their real estate investments.” Its role is to facilitate.

With the United States' fragile recovery and Europe going through a recession, Kumar expects interest in Malaysian properties to come mainly from Japan, South Korea, Hong Kong, South China, Singapore, Indonesia, India, Saudi Arabia and Qatar.

Whether it is a coincidence or otherwise, the same year MPI was set up, news of the Government's plans to develop several pieces of land in key strategic areas in the city began to filter out. These mega projects include what is currently known as the Kuala Lumpur International Financial District in Jalan Tun Razak, KL Metropolis in Matrade-Jalan Duta area, the 100-storey building in the Stadium Negara site, now known as Menara Warisan and the Rubber Research Institute land in Sg Buloh. The global financial crisis, which started in 2007 and whose full blown effect was felt around the world, came a year later.

While MPI plays an intermediary role to facilitate the business needs of the real estate, concerns about foreign interest pushing up prices are also pooh-poohed by Reapfield chief executive officer Gerard Kho. On the contrary, he says there are a few locations that need the support of foreign buyers.

“The high-end condominium market need the support of foreign buyers. This year, we expect to see rent and prices adjust a bit in that sector. It will also be a challenging year for the high-end condominium market.”

By contrast, domestic demand is expected to remain resilient.

“I am bullish up to the middle of this year despite the 30% downpayment requirement for the third and subsequent house and other measures by Bank Negara to curb the growth in household debts. The third and fourth quarter are difficult to predict,” he says.

“Last year, 84% of our transactions were from the secondary market, a reflection of strong domestic demand despite the many predictions of 2011 being a difficult year,”

Following up on Kho's concerns about the high-end condominium sector, the National Property Information Centre's Residential Property Stock Table shows the Federal Territory having an existing stock of serviced apartments and condominiums totalling 156,251 units including about 4,000 units completed last year.

While these numbers do not separate the high-end units from the rest, it does indicate the large number of serviced apartments and condominiums in the Federal Territory and the yearly additions that enter the market.

About 5,000 units were added into the market this year and another 4,500 units are expected to stream in next year, says Kho.

On the often quoted Singapore-Malaysia example, Kho says the “Singapore and Hong Kong property markets have a high global exposure. Both these markets are very different from Malaysia in terms of land, and government-control measures.

“In Singapore, foreigners are allowed only to buy into private condominium projects. Malaysia is different. Foreigners can buy into any segment of the property market if it is beyond a certain price threshold, which dilutes the focus on any particular sub-segment of the property market,” says Kho.

Lawyer Chris Tan who acts on behalf of foreigners buying into the Malaysian market says his biggest clientele are from Singapore.

“Our properties are very affordable to them because of the exchange rate and because of the high prices in the city state. In the region, our real estate is attractively priced,” he says.

The locations his clients buy into include the KLCC area, Mont'Kiara, Damansara, Bangsar and Ampang. Johor and Penang are other popular destinations.

“Iskandar Malaysia is like Shenzhen and Hong Kong. Shenzhen is thriving today because of the Hong Kong factor,” says Tan.

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