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The name Tan Sri Lee Kim Yew is irrevocably associated with the Mines. How he turned the world’s largest and deepest open-cast tin mine situated in a barren landscape, into a world class golfing, residential and commercial enclave is by now too well known.
To the public, he is that genius of a property developer. This is a rather cardboard figure image and does no justice to the man. Meet him in person and he comes across as very affable, with hints not to take him too seriously, and is laced with wry lashings of humour.
There is a poet philosopher deep inside him and it has manifested in a poem framed at the main lounge of the Mines Resort & Golf Club. It is an encapsulation of three of his favourite loves – calligraphy, poetry and of course – GOLF! Using golf as a metaphor, he has reflected on Life.
In his conversations today, what emerges, though not directly, is the urge to widen the horizons of Malaysia on the international map. The golf club at the Mines Resort has already attained world recognition with its many international golf tournaments and many of golf’s luminaries, including Tiger Woods, playing there.
Now Tan Sri Lee has turned his attention to a site some 30 km outside of Kuala Lumpur. One day soon this will be the Mines Golf City, Malaysia’s first, largest and only 63-hole golf course. For someone whose philosophy is, ¡°If something is to be done then it should be done BIG,¡± the Mines Golf City is just that!
Korean Press International took to the greens with Tan Sri Lee Kim Yew without any handicaps asked or given! >>>
Your mega-project, Mines Golf City, was it inspired by China’s Mission Hills Golf Club?
Actually the inspiration came from our own developments. Mines Golf City – this part of the capital’s outskirt is virtually underdeveloped, whereas the southern part was already well-developed. What inspired me was the location, plus the terrain was stunning. It would also be easier to develop as there were no sheer drops like what it was at the Mines Resort & Golf Club when we first started to develop!
However I do have to admit, after this, Mission Hills was the second inspiration. Do realize when I started the World Cup Tournament and had Tiger Woods participating, Mission Hills was still not developed. The owner of Mission Hills came down to witness the tournament and later grabbed a 10-year anchor after the game went to Thailand. Mission Hills was able to stage this coup because it has a very successful formula. So if you are talking about inspiration from Mission Hills, it comes second!
Actually the biggest inspiration is the rise of golf in this region. The US with a population of 300 million, over the Iast 30 years had developed 20,000 golf courses, of which only 100 million play golf. We have been inspired by the Chinese market – out of 1.3 billion people, maybe 300 million want to play golf. China will never allow the building of over 100 courses. Then there are Korea, Japan, Taiwan, Hong Kong, Singapore, Thailand, including Malaysia, all already well entrenched in the development of golf. India is a late comer. So there is a big market out there waiting to be tapped and we would like to get an early start.
Bukit Beruntung has been anything but profitable. Yet you are developing in its vicinity. Isn’t this a recipe for disaster?
I look at things the other way round. In business when something is rejected by others there should be enough daring to grasp it. It is more a case of believing in your own abilities.
I have done a check on Bukit Beruntung and what I deduced was that the failing was more on the part of the developer than anything else – the buyers of the property were not well taken care of. Also general maintenance was very much lacking. It was a development without a theme or concept. But what was good was a well developed infrastructure.
So what I see is not negativity but opportunities. Properties are location, location and location. All a golfer need do is drive out of K.L. and he would be at the course within half-an-hour. In the case of Little Korea (Mt.Kiara/Ampang), it would take just 20 minutes.
Having said that, I’m also aware that we have to offer something big, something special to draw golfers and others there – hence the 63 holes, which may be extended towards a 99-hole course.
So the possibilities are there to turn the area around. Putting it in another way, I am quite confident in stating, because we went in there, property values rose!
What then are your strategies to make Mines Golf City a success?
My strategies are very simple. No.1, the main attraction is golf. And as I said earlier there is a market out there. The development of Asian economies shows China growing at 7-8% and the rest of Asia, especially Korea, Japan, will also grow at various levels and the spin-off will be, more and more people wanting to play golf. So my strategies are, to first present a very good golf course offering exclusive membership.
Second I’m talking about golf related properties. Internationally, the most popular and saleable properties are those facing the sea or golf greens. Here, Mines Resort & Golf Club is a good example. When I started, it cost just RM60 psf, now it can’t be got for even RM300 psf.
The third is, besides golf, I am hoping to put something related to golf, such as a golf university. Its concept, the same as a sports university, will not only be about learning to play golf well, along with a sound tertiary education but to also emerge with a well moulded ethical character. Students will have the chance to learn other languages, such as Mandarin, Bahasa, with English as the medium of instruction. I believe these aspects of the golf university will convince parents to send their children here. I was told something along these lines has already been set up in Australia.
Another is a school for diving which can be learnt along with golf. Once this has been mastered, Malaysia’s numerous islands and dive spots can then be visited. Diving is well liked by the young and like golf also calls for much self-discipline. As diving entails many stages of qualifications, the learner will have to keep coming back until the full diving course is complete. All this means revenue for the county.
I have been putting a lot of effort and time into Country Heights for the last seven years in preventive health care. So we are going to have a very big preventive health care centre at Mines Golf City, incorporating medical check-ups, western and traditional Chinese medicines.
I have also left many spots along the golf courses for many other developers, both local and foreign, to establish their own facilities or services. Already I have been approached about the setting up of luxury retirement homes.
Mines Golf City is not going to be just about golf but also education, medical tourism, diving, horse riding and a host of other activities. We cannot depend on golf alone!
Having said that, assuming marketing and sales have begun, how have sales been this far?
For all my properties, I always do the marketing first. I don’t worry about the sales. The next is to get some construction activities going on at the site. So if we have visitors or potential buyers, they have something concrete to see. Sales and marketing are two different things. So for now we are only conducting marketing and not any sales.
Our priority is to get Mines Golf City branded. That’s why we had Annika Sorenstam design her first signature 18-hole golf course. Then we are very lucky to have Korean Pak Si Re for the second 18 holes. So marketing is always paramount!
Was this project, Mines Golf City, your main reason for giving up your position as CHHB Group Managing Director?
Not really! Country Heights as a public listed company was more or less ready for a change. I strongly wanted to give opportunities for the younger generation, such as the new Group Managing Director. The other is the fostering of the second generation, my daughter.
But you could say the main reason I relinquished my position is to give me time to play more golf and not because of Mines Golf City.
Do you think you have now made the right decision?
Rather than say I made the right decision, I prefer to say I made the smart decision.
You sought approval from the Selangor government to manage the existing 36-hole Bukit Beruntung Golf & Country Club. What is the current status of your request and the main reason for you to make it?
We are still talking! My main intention, if I’m given the opportunity to manage this golf course, at least while I’m building Mines Golf City’s 63-holes, I can help upgrade these 36-holes as well. This is my main intention, to help upgrade the Bukit Beruntung Golf & Country Club.
Once Mines Golf City is up and running, then this club will have no choice but to upgrade itself if it still wants to be in the running. It is not important whether I get to manage that golf course or not, my idea is simply to bring golfing in that area, up to a better level all round.
Annika Sorenstam is the designer for the first 18 holes of Mines Golf City and now Pak Se Ri for the next 18. Why this penchant for lady designers?
I have a very big vision for women’s golf. In the future it can be revealed why I want lady designers, but not now!
The other thing is, and we have to admit it, an Asian lady has overtaken Asian men in the field of international sports. A very long time ago itself, European sports women excelled in their chosen field. It is only now Asian women have begun to take the lead, Pak Se Ri being the first. So it’s time they are given opportunities to showcase their talents.
I strongly believe when it comes to designing and landscaping, women have that extra edge. One of my philosophies is that ¡®Women are the Earth and Men the Sky.’ And both of them cannot be equal, as found in the Shen Qoon philosophy of Yin & Yang. So I expect something special, something miraculous to emerge from the courses designed by the two of them. This is my reason for picking ladies.
How do you see the two ladies-designed courses faring against each other, with perhaps one becoming more popular than the other?
Annika is a European beauty; Pak Se Ri is an Asian beauty. The two have their own distinctive charms. Coming from different cultures, they will certainly each have a different touch with different messages. So those who are going to play on these two courses will imbibe these subtle differences via the messages coming across the courses. I strongly feel the two ladies are going to complement each other.
Mines Golf City is coming up on the former Rasa Estate. Did you have to encounter matters of estate workers’ displacement or other related problems, and if so, how did you handle them?
When we bought over this piece of land, it was earlier approved for a housing development by the Selangor state government. But the density was very, very heavy, over 5,000 units. So when I took over, there was no estate to speak of at all there, including the presence of estate workers who all had already left.
How did you arrive at the price of RM50 to RM80 psf and do you think it will still be able to attract buyers in the current global financial turmoil?
Yes of course! When I started Country Heights, I was selling it at RM8 psf without a golf course. But if you’re talking about today, it is hovering between RM100 to RM200. Twenty years ago, the Malaysian economy was much smaller, there were not many foreigners coming in. So this price of RM50 is equivalent to the then price of RM8. I assume people will buy value for money.
As mentioned earlier, properties facing the greens have an in-built high-end value worldwide. What more if you were a Korean with your bungalow looking out to Hole 18, one designed by Pak Se Ri?
Another thing, with all these financial crisis around and fluctuating economies turning stocks and shares upside down, more and more people are opting to invest in land.
Can we assume that you are banking on international golfing tourists to make your project a success? How will you draw them here against other global golf estates?
When I first started this project, there was no intention of banking on international golfing tourists. I now would like to share a secret as a developer – even if you go today to Disneyland, US¡¦ if they were to depend on foreign visitors, they would become bankrupt! They only depend on 30% of foreign tourists.
It is the same with this property where the dependence is more on locals as also with golfing! It would roughly work out as depending 70% on locals and the rest on others.
If one were to depend totally on foreigners from Day 1, it could very well end up in failure. Foreigners come in more as investors than anything else and can be looked upon as icing on the cake.
How much attention have you paid to environmental issues at Mines Gold City, what are these if any and how were they resolved?
From the beginning it was decided to go for audobon in the construction of the golf course. The designers were also told to incorporate organic elements. We also relied on our own experience so that harmful effects of chemicals were nullified. But as the trend today is for audubon, we are following suit.
Where the infrastructure is concerned, all roads will be built on pavement blocks allowing the roads to ¡®breathe.’ I tested this on our own property, Borneo Heights and found pavement block roads will be very suitable. There are plans to build show bungalows functioning totally through solar energy. The cost stands at RM600,000 per bungalow and can be said to be on the expensive side. But economies of scale should bring the cost down. The street lights too are scheduled to go solar.
Another idea we’re toying with .. Malaysians drive about just everywhere.. once homeowners arrive at Mines Golf City, they park their cars at designated bays and use electrical vehicles on the property itself.
Yes, we’re going green. But my concept of green is quite different from others. Green for me is not just landscaping but also elements that cannot be seen – such as the air we breathe, the food we eat. That is why on the land we are selling, and this is something very close to my heart, if I can convince the rich to not only show off their branded possessions such as a Rolex, but also their organic garden.. this is why the land is 20,000 sq. ft., so there is ample space for the organic garden at the back of their dwellings.
For those who are not building up the property, I have worked out they can create an organic garden 1,000 sq. ft. big and grow a variety of vegetables for their families’ consumption. So if I have 500 lots, it will mean 50,000 sq. ft. of land providing vegetables. Then the residents can start exchanging their produces – a good way to build-up neighbourliness as well as lead a more healthy life.
Today many products off the shelves, including vegetables, are toxic and housewives are unknowingly serving their families with it! So going organic is certainly safe and beneficial.
You have mentioned about establishing a GOLF UNIVERSITY. Can you expound on that?
The other day I had a brainstorming session on it as I strongly believe that golf is a sport that also moulds good character. Character build-up is actually an essential element of education. When you note how many aged parents have been abandoned by their children, it is actually a reflection of the failure of the education system. So if we can set up a university that has golf as its major sport and at the same time develops good human characteristics, it will be very beneficial.
Youngsters with an interest in golf and stopped by parents are going to grow up unfulfilled in society. At the same time a parent’s fear of their children not receiving a good education is also valid. What many parents do not realize is that golf offers good career opportunities. Asia is itself awash with 40,000 golf courses. This means over time, 40,000 General Managers will be needed by golf clubs. The salaries too are nothing to be sniffed at.
Another aspect of golf is that parents have to realize upon graduation, their children have the opportunity to not only be highly educated, earn high salaries but also to hobnob with high society and royalty. Invaluable links for personal and career successes in life.
I have already started collecting curriculums from America and other western countries. But I want to add the Asian elements in too.
I can come up with the idea. I can provide the land. But I don’t have to necessarily be the developer. Others can come as partners. I just want to let know some of the new directions we can take.
Currently I am ready to fork out RM1 million to any educationist, foreign or local, who can present a proper project paper to us, based on my ideas. I will make sure then it can be implemented, is viable and able to take off successfully.
I have already mentioned this idea to our Education Minister, also the Deputy Prime Minister, Y.A.B. Tan Sri Dato’ Haji Muhyiddin. He is of the opinion our children are not involved enough in sports and need to do so.
Anything else you would like to add?
Just that in relation to sports Koreans are very lucky. While other Asian countries have not produced notable personalities to stand out in the West, Korea has already done so. The latest is Yang Yong-eun, winner of the 91st PGA Championship, beating Tiger Woods. My wish is that Koreans should now start thinking of themselves not only as Koreans but also as Asians.
Outside of sports, I have always asked others, after getting to know Dae Jung-kan, are you Korean yet? In the sense if you want to be healthy, you should be eating Korean food, if you want to be very hi-tech savvy, then it’s using Korean electronic products, from handphones to laptops.
Finally, we take pride in the fact that an Asian nation has achieved such a high level of technology. Malaysia is very industrialized but we don’t have much technology that is our own.
So we have to admire Korea for attaining this status. It is amazing how you have developed in so many fields – and not forgetting GOLF!
By staff reporter Ramani Rathir) / KP news from : koreanpress
By THOMAS HUONG
huong@thestar.com.my
KUALA LUMPUR: The Klang Valley will face an oversupply of office and retail space within the next two to three years, according to property consultancy CB Richard Ellis (M) Sdn Bhd.
Capital values for residential units would see some increases in 2012, but at slower rates compared with the past 18 months.
CB Richard Ellis executive chairman Christopher Boyd said while 2011 was a strong year in terms of demand for office space in the Klang Valley, rental values might succumb to an oversupply situation within the next 18 months.
“Short-term demand for office space is stable but unlikely to grow sharply,” he said at a talk entitled Kuala Lumpur Property Market In Times Of Uncertainty, which was organised by MIDF Research here yesterday.
Boyd said that total office space supply in the Klang Valley stood at 80.8 million sq ft at the end of the first half of 2011 (compared with 80 million sq ft at the end of 2010).
However, it was estimated that an additional 25 million sq ft of office space would come onstream in the Klang Valley by 2015 (excluding mega projects such as the Naza group’s KL Metropolis development, Warisan Merdeka tower and the Kuala Lumpur International Financial District).
According to Boyd, vacancy rates in Kuala Lumpur are under 13%.
“This is not an alarming number, but vacancy rates are expected to increase as more supply comes onstream.” A report by CB Richard Ellis also noted that prime gross asking rentals were flat at RM7 per sq ft with only a handful of buildings above this level.
Since rising steadily from 2002 to 2008, rentals at top city centre buildings have remained mostly flat for the past two years.
“Asking rents at most top buildings in the city centre are within the RM6 to RM10 per sq ft per month range, with only a few select buildings, such as Petronas Tower 2 and Maxis Tower, achieving monthly rents of RM10 per sq ft and above,” said the report.
Boyd said recent average transaction prices of Grade A office space generally range between RM800 and RM900 per sq ft. “But there are higher prices than these being achieved in the market. We have recently seen prices of RM1,100 sq ft or more in Kuala Lumpur Sentral and SP Setia Bhd‘s KL Eco City.”
Meanwhile, CB Richard Ellis managing director Allan Soo said that the Klang Valley would overtake Singapore in terms of retail space per capita. Soo said as of the third quarter of 2011, total retail space supply in the Klang Valley was 43.7 million sq ft in 133 shopping centres and hypermarkets which was equivalent to 7.1 sq ft per capita (based on population of 6.1 million).
“This is higher than Bangkok, Thailand which stands at about 6.5 sq ft per capita, and equivalent to Singapore. However, it is a landlords’ market in Singapore where malls are well connected by MRT (mass rapid transit) and are doing well. In the Klang Valley, it is the reverse – the tenants are the kings.”
Soo estimated that by 2014, the Klang Valley will have 53 million sq ft of retail space in 149 malls and hypermarkets.
However, Soo pointed out that only about 43 shopping centres and hypermarkets out of the existing 133 (or 30%) were performing well.
A report by CB Richard Ellis said the next rental review for established shopping centres would be in 2013 and rents may hit RM122 per sq ft. On residential property, Boyd said the pace of capital appreciation would slow in the next two years as new supply come onstream. In the condominium segment in Kuala Lumpur, total supply grew by 11% since end-2010 to 63,994 units in the first half of this year.
The supply figures included all projects with average prices of RM350 per sq ft and above.
While there had been a shift in buyers’ preference towards smaller and more affordable units, Boyd said average asking rentals have declined in prime areas of Kuala Lumpur City Centre (KLCC) and Mont Kiara.
“In some cases in the KLCC area and and Mont Kiara, condominium rentals have halved in the last two years.” Rental rates in the three main condo markets (KLCC, Bangsar and Mont Kiara) on a per sq ft basis have declined since 2007, reflecting weaker demand for rental units coupled with increased supply.
Boyd also pointed out that new housing projects in the Klang Valley had begun to pick up in the first half of this year, with 15,030 units.
This is contrasted with a trend of falling incoming supply, new completions and housing projects in the Klang Valley since 2004.
From 2004 to 2007, there were new housing projects supplying more than 60,000 units each year.
However, the supply from new housing projects dipped to 41,583 units in 2008 and subsequently, between 22,000 and 25,000 in the following two years.
“The supply stream of new housing units fell in 2008. I do not think it was just the result of the global financial crisis. As building costs were rising sharply without selling prices coming up to match them, perhaps developers took the view they should hold back. And this contributed to the fast rising housing prices in the last two years.”
Source: The Star, Business section.
Story and photos by PRIYA MENON
priya@thestar.com.my
A FEUD with the upstairs neighbour that started three years ago is back to haunt R. Rajaretnam.
Kuala Lumpur City Hall (DBKL) enforcement officers broke down the wall of Rajaretnam’s house in Taman Seputeh on May 28, 2009 after a complaint by the neighbour.
Since then, the family has been living in fear of intruders and now they are reliving the nightmare as DBKL officers are back with more harassment.
DBKL, acting on a complaint from Rajaretnam’s upstairs neighbour, demolished the wall separating the compound downstairs with the entrance to the house upstairs.
He said the officers cited the infringement of certain town planning by-laws and explained that the front compound of his house was common property.
Rajaretnam and his family agreed to the demolition with the condition that a gate be placed by the neighbour to protect the grounds from intruders. However, the gate has not been put up.
The DBKL agreed to this in a meeting and even provided the minutes and a diagram of the gate, a copy of which was sent to Rajaretnam as well.
Afraid for the safety of his wife and five young children, Rajaretnam has filed numerous reports with DBKL, the Public Complaints Bureau and the police to help solve the issue but to no avail.
A month ago, DBKL came back based on another complaint by the same neighbour, citing an illegal extension behind the house.
“The extension has been here for over 40 years just like the wall that was built when the development first took place. How is it that a mere zinc roof behind the house is more important than the safety of the entire family?” asked Rajaretnam.
Rajaretnam also questioned DBKL’s lack of efficiency in dealing with his complaints that was lodged since the issue first arose.
Upon hearing the plight of Rajaretnam, several MIC Youth members visited the family recently.
After reviewing the sale and purchase agreement, MIC National Youth Social Welfare Bureau chairman S. Subramaniam said the house was classified as a double-storey terrace house instead of a townhouse.
“DBKL has to give a clear indication as to why the demolition exercise was conducted since the land status is not stated clearly. Even if it is a townhouse or a double-storey terrace, the wall is to divide the entrance to both houses,” he said.
The MIC Youth legal bureau will be sending a demand letter requesting for a reply and the reasons behind DBKL’s actions.
When contacted, corporate communications director Anwar Mohd Zain said DBKL had been trying to resolve the dispute for some time now. Several discussions had been carried out between both parties.
Anwar said DBKL would ensure that the promises made between both parties would be carried out, including Rajaretnam’s gate.
JOHOR BARU: An unemployed man, who previously owned up to threatening to kill his neighbour, was fined RM2,000 for igniting firecrackers at his neighbour’s house with the intention to burn it down.
High Court judge Kamardi Hashim ordered Liow Joo Swee, 41, to pay the fine for trying to set off 20 firecrackers in front of Pua Keng Siang’s house in Skudai between 2am and 3am on Feb 8, 2006.
Pua’s family was startled when they heard loud firecracker noises coming from outside their house.
They then found a box of firecrackers, tissues and a box of matches outside their house, which was later traced to Liow.
Justice Kamardi Hashim, in making the decision, overturned the acquittal granted to Liow by a magistrate’s court on Oct 25 last year.
At the lower court, Liow was charged under Section 7A of the Explosives Act, which carries a maximum jail term of two years and a fine not exceeding RM2,000.
The prosecution had appealed against the acquittal.
Liow had also previously admitted that he had threatened to kill Pua on two occasions and was fined RM2,000.
The Star, Friday April 29, 2011
Affordable Quality Housing Programme Now For Whole Country, Says Muhyiddin
GEORGE TOWN, May 29 (Bernama) — The affordable quality housing programme launched under a public-private partnership initiative for urban centres, particularly the Klang Valley, is to be extended to the whole country, Deputy Prime Minister Tan Sri Muhyiddin Yassin said on Sunday.
He said Prime Minister Datuk Seri Najib Tun Razak had agreed to extend the programme, aimed at enabling the younger generation to own a house, provided there were suitable sites.
The programme, under the My First Home Scheme, would involve provision of sites by the government and construction of the houses priced at RM220,000 and below by the private sector based on the industrial building system.
Muhyiddin said the government was identifying suitable sites for this social development programme of the federal government.
“For example, in Penang, it is seen that the state government does not have any project to ease the housing problem of the people. The federal government is prepared to build the affordable quality houses if there are suitable sites,” he told reporters after opening the Bayan Baru Umno divisional delegates meeting, here.
Under the My First Home Scheme launched by the prime minister on March 8, those aged 35 and below with a monthly salary of less than RM3,000, are eligible to buy a house, priced at RM220,000 and below, with 100 per cent financing.
Najib had said the initiative was devised following comments conveyed through his Facebook page, and in newspapers, about the difficulties faced by the younger generation in owning a house within that price range, especially in the Klang Valley.
Muhyiddin said the affordable houses were for people in the middle-income group who did not own a house.
He also said that the government would set up a special fund for the management of flats because many flats in the country were not managed properly.
“Facilities such as lifts were not properly taken care of because of problems associated with management corporations and lack of cooperation from the occupants,” he said.
He said the assistance was a federal government effort to help the people although in some states like Penang the Barisan Nasional was in the opposition.
On government scholarships for students who excelled in the Sijil Pelajaran Malaysia (SPM) examination last year, Muhyiddin said there was confusion because of insufficient explanation.
“Last year, we gave scholarships to students who scored straight As, but did not promise that they will all go for studies overseas. We also want to encourage excellent students to study in the country, including taking up medicine,” he said.
He said the courses offered by local universities, including in medicine, were comparable to those at foreign universities. Furthermore, he added, the institutions were on par with foreign universities and it would be more economical if the students studied locally, besides retaining local talent.
He said Minister in the Prime Minister’s Department Datuk Seri Mohamed Nazri Abdul Aziz had been instructed to resolve the scholarship issue.
A meeting on the matter is scheduled for Tuesday.
– BERNAMA
By Clara Chooi
KUALA LUMPUR, May 6 — Putrajaya will launch affordable quality houses costing below RM220,000 within the Klang Valley soon to counter rising property prices that have shut out the younger generation — a key voting demographic for the ruling Barisan Nasional (BN) government.
Prime Minister Datuk Seri Najib Razak said the new initiative for qualified applicants is to complement his government’s “My First Home” scheme for homes within the RM100,000 and RM220,000 price range.
“I am aware from comments on my Facebook and in the newspapers that it is difficult to find homes costing RM220,000 and below in the Klang Valley,” he said on Hot FM 97.6 this morning when asked about the “My First Home” programme.
Najib (picture) noted that due to the insufficient supply, the administration had decided to come up with the “Affordable Quality Housing” programme, a public-private partnership with property developers that will offer quality homes built using the industrial building system (IBS) to qualified applicants under the scheme.
“The My First Home scheme is for the demand side but on the supply side, if there are no offers, meaning there is a lack of homes costing RM220,000 that can be bought, we have decided to launch the Affordable Quality Housing programme.
“It will be in the form of a public-private partnership using the IBS so it will be fast to complete. If possible, no profit will be taken from this project and companies can take it as a part of their Corporate Social Responsibility (CSR) programme,” Najib said.
He said the first site for the programme will be launched some time in June or July and the government was still in the process of locating more sites.
“So the government will prepare the sites and the developers will build the homes and sell them for RM220,000 and below,” he said.
The My First Home Scheme is an initiative under Budget 2011 launched by the prime minister on March 8 this year as a government effort to increase home ownership by reducing the burden faced by the younger generation like the high cost of living and soaring real estate prices.
Some four million people have yet to register to vote, with most of them youths, whose potential votes could either keep or throw outBN in the next general election.
BN is keen to get to first-time voters and has been strategising to get their support by planning training, business and other schemes to influence them.
Under the housing scheme, those new to the workforce and earning a monthly income of below RM3,000 can obtain 100 per cent financing from selected financial institutions to purchase homes costing between RM100,000 and RM220,000 with a repayment period of 30 years.
Banks involved in financing for the scheme are Affin Bank Bhd, Affin Islamic Bank Bhd, Alliance Bank Malaysia Bhd, Alliance Islamic Bank Malaysia Bhd, AmBank Bhd, AmIslamic Bank Bhd, Bank Islam Malaysia Bhd, Bank Muamalat Malaysia Bhd, CIMB Bank Bhd, CIMB Islamic Bank Bhd, EON Bank Bhd, EONCAP Islamic Bank Bhd, Hong Leong Bank Bhd and Hong Leong Islamic Bank Bhd.
Others include Maybank Bhd, Maybank Islamic Bank Bhd, OCBC Bank Malaysia Bhd, OCBC Al Amin Bhd, Public Bank Bhd, Public Islamic Bank Bhd, RHB Bank Bhd, RHB Islamic Bank Bhd, United Overseas Bank Malaysia Bhd, Standard Chartered Bank Malaysia Bhd, Standard Chartered Saadiq Bhd and Cagamas Bhd.
The programme is an initiative launched by the government with the collaboration of national mortgage company, Cagamas Bhd, and financial institutions to reduce the burden of the younger generation who are faced with a high cost of living and exorbitant real estate prices.
“This will help the younger generation in Malaysia own their first house as soon as possible,” Najib added.
Via the scheme, the younger generation earning less than RM3,000 per month, can obtain 100 per cent financing from selected financial institutions for houses costing between RM100,000 and RM220,000 with a repayment period of 30 years.
“This means, the government, via Cagamas Bhd, will guarantee the downpayment of 10 per cent,” Najib said, adding that first-time buyers need not come up with any deposit.
The Prime Minister also hoped more property developers would build affordable houses to cater for the people.
The banks involved in financing the “My First Home Scheme” are Affin Bank Bhd, Affin Islamic Bank Bhd, Alliance Bank Malaysia Bhd, Alliance Islamic Bank Malaysia Bhd, AmBank Bhd, AmIslamic Bank Bhd, Bank Islam Malaysia Bhd, Bank Muamalat Malaysia Bhd, CIMB Bank Bhd, CIMB Islamic Bank Bhd, EON Bank Bhd, EONCAP Islamic Bank Bhd, Hong Leong Bank Bhd and Hong Leong Islamic Bank Bhd.
Others include Maybank Bhd, Maybank Islamic Bank Bhd, OCBC Bank Malaysia Bhd, OCBC Al Amin Bhd, Public Bank Bhd, Public Islamic Bank Bhd, RHB Bank Bhd, RHB Islamic Bank Bhd, United Overseas Bank Malaysia Bhd, Standard Chartered Bank Malaysia Bhd, Standard Chartered Saadiq Bhd and Cagamas Bhd.
Under the 2011 Budget, the government announced several initiatives to increase house ownership and enhance peoples’ quality of life.
This, among others, included an allocation of RM568 million to build 300 units under the Urban Housing Assistance Scheme and 79,000 units under the Peoples’ Housing Programme.
“An additional allocation of RM50 million has been set aside especially to help house ownership among estate employees under the low cost housing scheme,” said Najib.
– BERNAMA
linsay@thestar.com.my | Feb 12, 2011
In today’s environment of rising home prices, is it more advantageous to buy a house or rent a house?
While most people unanimously agree that owning a home is better, the financial situation of the individual is important in assessing whether he or she can afford the home.
VPC Alliance (KL) Sdn Bhd managing director James Wong says it is always better to own a home. But one’s financial ability will play a big part in the choice of a house, he adds.
“Of course, it’s better to buy than rent as the loan you pay to the bank is equivalent to the rental you are forking out,” says the boss of the property consultant firm.
Young people are advised to look into their finances and ensure their existing debt ratios are not too high before buying a house. They also need to consider the stability of their jobs to ensure they will be able to make the monthly loan instalments, Wong says.
“If a person’s debt ratio in relation to his salary is already close to 50%, chances are banks will not qualify the loan. If a person’s salary is too low, meaning that the mortgage amount to be paid is more than 50% of a person’s salary, the bank may also hesitate and require more documentation to approve the loan.
“These days, with the easy payment packages by banks and the ability to withdraw from one’s Employees Provident Fund (EPF) savings, owning a house has become more affordable,” says Wong.
Certainly, potential house buyers can now tap on their EPF account 2 to purchase a property. First-time house buyers can still qualify for loans of up to 90%
During Budget 2011, the Government said it will introduce Skim Rumah Pertamaku through Cagamas Bhd, which will provide a guarantee on the downpayment of 10% for houses below RM220,000.
This scheme is for first-time house buyers with household income of less than RM3,000 per month. In other words, the buyers will obtain a 100% loan without having to pay the 10% downpayment.
First-time house buyers will also be given a stamp duty exemption of 50% on instruments of transfer on house prices not exceeding RM350,000. The Government also proposed that a stamp duty exemption of 50% be given on loan agreement instruments to finance such first-time purchase of houses.
“If you rent a home, especially in today’s environment of rising prices, you will never benefit from the increase of the property value. Furthermore, even if the value of the home does not increase over time, the mortgage balance decreases and equity builds,” says another property consultant.
“With the problem of inflation creeping up, the more you delay buying a house, the more expensive it becomes over time. Buying property is one way to fight inflation,” he adds.
In terms of disadvantages in owning a house, there are many variable costs involved, for example the house assessment, service or maintenance fees and fire insurance among others.
“Selling the house may also not be as quick as, say, selling your investments in shares. The whole process of selling, along with documentation by lawyers can take up to a year, depending on the location of the home. If there is already a potential house buyer, the process can be sped up to 3 months,” says the property consultant.
Khong & Jaafar managing director Elvin Fernandez gives a quantitative example between buying and renting a property.
If a typical middle class 2-storey terrace house in Kuala Lumpur is RM400,000 and the rent is RM1,500 a month, the nett yield is RM3.8%.
“This is a reasonable return from such a landed property,” he says.
Assuming that the household income is about RM7,000 a month, this means that the ratio of the household income per annum to the house price is 4.76 times.
“To buy this house based on 90% financing at a fixed interest loan for 30 years, you would have to pay a 5% interest, which means a monthly expense of about RM1,900 a month. At this point of the exercise, it is clearly better to rent than buy,” he elaborates.
Still, he adds: “This analysis is based on what I consider the typical housing unit. Different considerations may apply for different types of housing units in different areas.”
Another powerful motivation in favour of buying rather than renting is the social imperative to own a home.
“Owning a house also allows you to raise credit as and when it is needed, for family expenses and for business purposes, and this is a powerful motivation for ownership,” says Fernandez.
THERE are signs of soil erosion at a hillside facing Sereneia Gardens in Taman Sierra Ukay in Ampang.
The erosion is not serious but each time it rains the residents fear that the the condition will worsen.
The housing area is new with several empty lots and surrounded by hills on either side.
Residents want the authorities to look into the matter immediately and do not want a repeat of the Bukit Antarabangsa tragedy.
During a recent check, workers were seen on the hill near the eroded part carrying out some work.
A resident, K.B. Yap, 50, was shocked to see the erosion taking place.
He expressed concern with the developer because he would be moving into his house at Serenia Gardens soon.
“I have just renovated my house and the area is still new, so I hope the developer and Ampang Jaya Municipal Council (MPAJ) will look into this matter soon.
“We had the Bukit Antarabangsa landslide years ago, so we do not want to see it happening again,” he said.
MPAJ engineering department director Hasrolnizam Shaari said the erosion was only about 10m on the surface causing the grass to be uprooted.
He said they had asked the developer to clear the drains and replant the grass on the hill.
“We have also asked the developer to analyse the stability of the slope as a precautionary measure.
“The Public Works Institute of Malaysia have also been called in to survey the area,” he said.