By JASON LIOH malacca@thestar.com.my
MALACCA: The opening of the state’s latest water theme park, the Malacca Wonderland in Ayer Keroh will help boost the number of tourist arrivals here.
The 9.3ha theme park is expected to be a hit among locals and tourists with its 16 slide attractions such as Tornado Chaser, Big Wave Pool, Adventure Island, Anaconda Twist and Kamikaze River.
Chief Minister Datuk Seri Mohd Ali Rustam said the RM80mil theme park was strategically located next to the Malacca Botanical Gardens green lung area and the state’s rereational hub.
“The theme park will be another reason for families to visit Malacca and it will help the state in attracting even more tourists,” he said when opening the theme park last Saturday.
To boost its value as a family-oriented holiday destination, a resort would be built by the park operators within a year’s time, he said.
“The four-star resort will be built on a 2ha plot of land with 168 rooms,” said Mohd Ali, adding that the state needed more hotels to cater to the increasing number of tourists.
He said the state expected to attract some 8.5 million tourists this year alone.
Park general manager Seow Cheng Swee assured that certified lifeguards would be stationed at various locations in the park to ensure the safety of every one using the facilities.
“Our lifeguards have all undergone emergency first aid courses and are certified to provide first aid if the need arises,” said Seow.
Sunday, May 30, 2010
IGB set for bigger challenges
By EDY SARIF edy@thestar.com.my
PETALING JAYA: IGB Corp Bhd is ready to take on bigger challenges after having built a substantial portfolio of properties in the retail, hospitality and high-end residential sectors.
With the stronger ringgit and the company’s low gearing and healthy cash reserves, it was high time to expand aggressively in retail sector abroad, said group managing director Robert Tan Chung Meng.
“Our Mid Valley Megamall that is parked under KrisAssets Holdings Bhd is doing very well.
“We are now aggressively looking to acquire one or two malls in the United States and Europe,” Tan said recently.
For the first quarter ended March 31, its 75%-owned KrisAssets posted a net profit of RM27mil against RM25.4mil in the same period last year.
IGB’s net profit rose 4.1% to RM35.32mil in the quarter from RM33.9mil a year earlier.
Tan said the company, which has a cash reserve of RM180mil, would have no problem raising funds. The company expects the expansion abroad to cost RM1bil to RM2bil.
Its hotel division, which contributes 50% to group profit, is also slated for expansion locally and overseas.
“We are targeting Japan, China and Indochina where we will either buy existing hotels or develop new ones,” Tan said.
In Malaysia, IGB owns Garden Hotel, Boulevard Hotel, Pangkor Island Beach Resort, Garden Residences, the Cititel chain of hotels and the Micasa all-suites hotel.
The company is submitting a proposal to develop the final phase of Mid Valley City comprising office blocks on a 500,000-sq-ft site.
Tan hoped to get the approval for the RM500mil office project by the year-end.
IGB is focusing on expanding businesses which offer recurring income, especially in hospitality and property investment and management.
It is now leasing offices at the Gardens north and south towers within Mid Valley City.
However, “small (property) launches’’ by IGB lately have been a cause of concern, with AmResearch Sdn Bhd describing them as a “disappointment”.
“Given the robust consumer sentiment, we had earlier expected IGB to launch more residential projects such as 6 Stonor with a gross development value (GDV) of RM300mil and projects at Sierramas in Sungai Buloh,” the brokerage said.
Tan said IGB’s two new launches were doing well. “Most of the units at Seri Ampang Hilir Residence and Garden Manor have been sold.” Both projects had a combined gross development value (GDV) of RM150mil.
Founded in the early 1960s by two brothers – the late Datuk Tan Kim Yeow and Datuk Tan Chin Nam – and named after its maiden project in Ipoh, IGB has turned from being a mere developer into a mega asset-based company that is worth RM4.5bil at the end of 2009.
IGB, which was listed in 1981, and Tan & Tan Developments Bhd, another property unit formed by the Tan brothers and listed in 1993, announced a massive merger and rationalisation exercise in the year 2000.
That resulted in IGB assuming the property assets of parent Tan & Tan, which then transferred its listing status to a new vehicle, Gold IS Bhd, another entity controlled by the two Tan families.
The group is now looking at injecting its properties into a real estate investment trust (REIT), which will probably be the country’s largest.
To do that, analysts said the group must inject properties with good financial track records and these include Gardens Mall developed by Mid Valley City Gardens Sdn Bhd, a subsidiary IGB.
However, the proposed REIT was probably delayed due to the drastic drop in market value of such trusts in 2008 and early 2009 and the poor sentiment for REIT listings.
PETALING JAYA: IGB Corp Bhd is ready to take on bigger challenges after having built a substantial portfolio of properties in the retail, hospitality and high-end residential sectors.
With the stronger ringgit and the company’s low gearing and healthy cash reserves, it was high time to expand aggressively in retail sector abroad, said group managing director Robert Tan Chung Meng.
“Our Mid Valley Megamall that is parked under KrisAssets Holdings Bhd is doing very well.
“We are now aggressively looking to acquire one or two malls in the United States and Europe,” Tan said recently.
For the first quarter ended March 31, its 75%-owned KrisAssets posted a net profit of RM27mil against RM25.4mil in the same period last year.
IGB’s net profit rose 4.1% to RM35.32mil in the quarter from RM33.9mil a year earlier.
Tan said the company, which has a cash reserve of RM180mil, would have no problem raising funds. The company expects the expansion abroad to cost RM1bil to RM2bil.
Its hotel division, which contributes 50% to group profit, is also slated for expansion locally and overseas.
“We are targeting Japan, China and Indochina where we will either buy existing hotels or develop new ones,” Tan said.
In Malaysia, IGB owns Garden Hotel, Boulevard Hotel, Pangkor Island Beach Resort, Garden Residences, the Cititel chain of hotels and the Micasa all-suites hotel.
The company is submitting a proposal to develop the final phase of Mid Valley City comprising office blocks on a 500,000-sq-ft site.
Tan hoped to get the approval for the RM500mil office project by the year-end.
IGB is focusing on expanding businesses which offer recurring income, especially in hospitality and property investment and management.
It is now leasing offices at the Gardens north and south towers within Mid Valley City.
However, “small (property) launches’’ by IGB lately have been a cause of concern, with AmResearch Sdn Bhd describing them as a “disappointment”.
“Given the robust consumer sentiment, we had earlier expected IGB to launch more residential projects such as 6 Stonor with a gross development value (GDV) of RM300mil and projects at Sierramas in Sungai Buloh,” the brokerage said.
Tan said IGB’s two new launches were doing well. “Most of the units at Seri Ampang Hilir Residence and Garden Manor have been sold.” Both projects had a combined gross development value (GDV) of RM150mil.
Founded in the early 1960s by two brothers – the late Datuk Tan Kim Yeow and Datuk Tan Chin Nam – and named after its maiden project in Ipoh, IGB has turned from being a mere developer into a mega asset-based company that is worth RM4.5bil at the end of 2009.
IGB, which was listed in 1981, and Tan & Tan Developments Bhd, another property unit formed by the Tan brothers and listed in 1993, announced a massive merger and rationalisation exercise in the year 2000.
That resulted in IGB assuming the property assets of parent Tan & Tan, which then transferred its listing status to a new vehicle, Gold IS Bhd, another entity controlled by the two Tan families.
The group is now looking at injecting its properties into a real estate investment trust (REIT), which will probably be the country’s largest.
To do that, analysts said the group must inject properties with good financial track records and these include Gardens Mall developed by Mid Valley City Gardens Sdn Bhd, a subsidiary IGB.
However, the proposed REIT was probably delayed due to the drastic drop in market value of such trusts in 2008 and early 2009 and the poor sentiment for REIT listings.
Sultan of Pahang upset with illegal land clearing for cultivation in Cameron Highlands
CAMERON HIGHLANDS: Illegal land clearing for cultivation has become a big problem in Cameron Highlands that it has prompted a call from the Sultan of Pahang himself.
Sultan Ahmad Shah Sultan Abu Bakar said he had received complaints and assured that the Government would take stern action against the culprits, especially those involved in the most recent case in Kampung Lemoi.
He gave assurance to the orang asli community living there that the issue would be looked into.
Twelve hectares of land on the orang asli settlement in Kampung Lemoi was found to have been illegally cleared and cultivated.
“I have told the district officer (Datuk Mohd Noor Abdul Rani) to do the necessary pertaining to this matter,” the Sultan told the orang asli during his visit to Kampung Manson recently.
He said police would be called to assist, if the need arose, in taking actions against those responsible for the land clearing.
He said there were also some who were given approval by the Government to open up land for cultivation but due to greed, went beyond the total hectarage approved.
He warned that the temporary operating licences of these greedy individuals could be cancelled.
Sultan Ahmad Shah Sultan Abu Bakar said he had received complaints and assured that the Government would take stern action against the culprits, especially those involved in the most recent case in Kampung Lemoi.
He gave assurance to the orang asli community living there that the issue would be looked into.
Twelve hectares of land on the orang asli settlement in Kampung Lemoi was found to have been illegally cleared and cultivated.
“I have told the district officer (Datuk Mohd Noor Abdul Rani) to do the necessary pertaining to this matter,” the Sultan told the orang asli during his visit to Kampung Manson recently.
He said police would be called to assist, if the need arose, in taking actions against those responsible for the land clearing.
He said there were also some who were given approval by the Government to open up land for cultivation but due to greed, went beyond the total hectarage approved.
He warned that the temporary operating licences of these greedy individuals could be cancelled.
MM2H scheme gets a boost
By FOONG PEK YEE pekyee@thestar.com.my
MUNICH: Participants of Malaysia My Second Home Programme (MM2H) who are 55 and above are allowed to work up to 20 hours a week.
Tourism Minister Datuk Seri Dr Ng Yen Yen said such a practice was popular among the British and mainland Chinese. The foreigners were sought after as language teachers or tour guides.
Speaking to the media here on Thursday, she said “there was no such thing as retirement in life”.
“We only go through different phases in life,” she said, inviting those in their “golden third era” (G3A) to join the MM2H, which comes with a 10-year visa and several perks, including purchase of a duty free car.
“After our children grow up, we gradually move into the G3A.”
Dr Ng said the Europeans would find value-for-money when they stay in Malaysia; petrol in Malaysia was cheaper than mineral water sold in Munich.
On the green campaign, Dr Ng said every foreign tourist under the ministry’s homestay programme would plant a tree before leaving.
The programme has about 3,600 homes in some 360 villages.
On a separate issue, Ng said the ministry had asked Malaysia Airlines to resume its Munich-Kuala Lumpur direct flight, which was discontinued about seven years ago.
Currently, travellers flying to Kuala Lumpur from here need to transit in Singapore’s Changi Air-port.
Tourist arrivals from Germany to Kuala Lumpur was 128,000 last year compared with 110,000 in 2008.
Dr Ng said German tour guides would also be allowed to operate in Malaysia under certain circumstances.
“For instance, a group of 40 German businessmen, requesting to bring in their own German-speaking tour guides, would be acceptable.”
MUNICH: Participants of Malaysia My Second Home Programme (MM2H) who are 55 and above are allowed to work up to 20 hours a week.
Tourism Minister Datuk Seri Dr Ng Yen Yen said such a practice was popular among the British and mainland Chinese. The foreigners were sought after as language teachers or tour guides.
Speaking to the media here on Thursday, she said “there was no such thing as retirement in life”.
“We only go through different phases in life,” she said, inviting those in their “golden third era” (G3A) to join the MM2H, which comes with a 10-year visa and several perks, including purchase of a duty free car.
“After our children grow up, we gradually move into the G3A.”
Dr Ng said the Europeans would find value-for-money when they stay in Malaysia; petrol in Malaysia was cheaper than mineral water sold in Munich.
On the green campaign, Dr Ng said every foreign tourist under the ministry’s homestay programme would plant a tree before leaving.
The programme has about 3,600 homes in some 360 villages.
On a separate issue, Ng said the ministry had asked Malaysia Airlines to resume its Munich-Kuala Lumpur direct flight, which was discontinued about seven years ago.
Currently, travellers flying to Kuala Lumpur from here need to transit in Singapore’s Changi Air-port.
Tourist arrivals from Germany to Kuala Lumpur was 128,000 last year compared with 110,000 in 2008.
Dr Ng said German tour guides would also be allowed to operate in Malaysia under certain circumstances.
“For instance, a group of 40 German businessmen, requesting to bring in their own German-speaking tour guides, would be acceptable.”
Adiva project wins Fiabci award
By THEAN LEE CHENG leecheng@thestar.com.my
BALI: Adiva, a precinct within Desa ParkCity in Kepong, Kuala Lumpur, has been named the world’s best residential (low rise) category at the 61st World Congress of the International Real Estate Federation (Fiabci) here last Thursday.
Fiabci is a French acronym for the Paris-based federation founded in 1948 to highlight real estate specialities and activities.
The 11-acre Adiva precinct won the Fiabci Prix d’Excellence Award under the residential (low rise) category.
The project comprises 160 triple, double-storey and walk-up apartments set against meandering linear parks within the masterplanned development of Desa ParkCity.
Desa ParkCity is a project by Perdana ParkCity Sdn Bhd, a subsidiary of Sarawak-based Samling group.
The Adiva is the third precinct to be developed in Desa ParkCity after Safa and Nadia
About 10 precincts are already occupied around a commercial area and work is in progress for the rest of the 500-acre development.
Adiva was the third precinct to be developed after Safa and Nadia. The developer has a vision to turn what used to be a quarry into one of the city’s most beautiful landscaped residential community.
The runner-up in the same category is Jakarta Garden City, a joint-venture development between Singapore’s Keppel Land and Indonesia’s PT Modernland Tbk.
The Fiabci Prix d’Excellence Awards received 54 entrants from 11 countries vying for 14 categories.
Perdana ParkCity group CEO Lee Liam Chye, who has been with the project from its birth, said: “We bought this land of about 500 acres for RM10 per sq ft in June 2000. It was a wilderness with rocks, granite and lots of trees and was part of what is today Country Heights Damansara.
“It was a hillock with ravines and ridges – a hot potato that no one wants – and we carved out the different parcels.
“People may say we paid RM10 per sq ft for this land, but we also spent RM250mil to blast the rocks and prepare it for development. It was a tremendous challenge but amid all that wilderness, I saw the potential.”
Lee said he and his team worked with the local authorities because legislations and town-planning controls had to be amended to legitimise and validate this new housing concept.
Adiva, with its ideals and ideas, played a large part in convincing the authorities to respond favourabley in facilitating the changes.
“I was educated in Britain and when I go there (Europe), especially to Paris, these places are so absorbing. I asked myself, ‘What is it about these places that provoke such emotions within me?’
“I asked myself many times. Today, I have the answer. The emphasis is on authenticity, the embodiment of history and culture. When I set out to plan and build this place, I wanted to create that sense of place and space. It’s exactly 10 years now and I have learned so much,” said Lee.
“When you see a duck swimming in the water, you only see the serenity and gentleness of the scene, but you do not see the furious paddling under the water. The same goes for the development of Desa ParkCity.”
Sime Darby group will operate a hospital there. A contract to build it will be awarded in about two weeks and the hospital is expected to be operational by the third quarter of 2012.
Another contract to build an international school was awarded two weeks ago. This will be completed by the middle of next year.
BALI: Adiva, a precinct within Desa ParkCity in Kepong, Kuala Lumpur, has been named the world’s best residential (low rise) category at the 61st World Congress of the International Real Estate Federation (Fiabci) here last Thursday.
Fiabci is a French acronym for the Paris-based federation founded in 1948 to highlight real estate specialities and activities.
The 11-acre Adiva precinct won the Fiabci Prix d’Excellence Award under the residential (low rise) category.
The project comprises 160 triple, double-storey and walk-up apartments set against meandering linear parks within the masterplanned development of Desa ParkCity.
Desa ParkCity is a project by Perdana ParkCity Sdn Bhd, a subsidiary of Sarawak-based Samling group.
The Adiva is the third precinct to be developed in Desa ParkCity after Safa and Nadia
About 10 precincts are already occupied around a commercial area and work is in progress for the rest of the 500-acre development.
Adiva was the third precinct to be developed after Safa and Nadia. The developer has a vision to turn what used to be a quarry into one of the city’s most beautiful landscaped residential community.
The runner-up in the same category is Jakarta Garden City, a joint-venture development between Singapore’s Keppel Land and Indonesia’s PT Modernland Tbk.
The Fiabci Prix d’Excellence Awards received 54 entrants from 11 countries vying for 14 categories.
Perdana ParkCity group CEO Lee Liam Chye, who has been with the project from its birth, said: “We bought this land of about 500 acres for RM10 per sq ft in June 2000. It was a wilderness with rocks, granite and lots of trees and was part of what is today Country Heights Damansara.
“It was a hillock with ravines and ridges – a hot potato that no one wants – and we carved out the different parcels.
“People may say we paid RM10 per sq ft for this land, but we also spent RM250mil to blast the rocks and prepare it for development. It was a tremendous challenge but amid all that wilderness, I saw the potential.”
Lee said he and his team worked with the local authorities because legislations and town-planning controls had to be amended to legitimise and validate this new housing concept.
Adiva, with its ideals and ideas, played a large part in convincing the authorities to respond favourabley in facilitating the changes.
“I was educated in Britain and when I go there (Europe), especially to Paris, these places are so absorbing. I asked myself, ‘What is it about these places that provoke such emotions within me?’
“I asked myself many times. Today, I have the answer. The emphasis is on authenticity, the embodiment of history and culture. When I set out to plan and build this place, I wanted to create that sense of place and space. It’s exactly 10 years now and I have learned so much,” said Lee.
“When you see a duck swimming in the water, you only see the serenity and gentleness of the scene, but you do not see the furious paddling under the water. The same goes for the development of Desa ParkCity.”
Sime Darby group will operate a hospital there. A contract to build it will be awarded in about two weeks and the hospital is expected to be operational by the third quarter of 2012.
Another contract to build an international school was awarded two weeks ago. This will be completed by the middle of next year.
Championing the green way of building
By OUR LIVING ENVIRONMENT By ANGIE NG
GOING green has become trendy among communities and organisations, and more people are taking up this cause by adopting an eco-friendly lifestyle.
Nevertheless, every stakeholder, whether they are common folk, government or private organisations, has to contribute towards ensuring a more sustainable environment.
With the Government’s move to review the uniform building by-laws to promote the adoption of more energy-saving and environmental sustainable measures for buildings, there will be more environment-friendly developments in the future.
The initiative to ensure new buildings feature energy-saving and other pro-environment measures is a good way to promote the green culture among industry players. After all, built structures make up almost a third of total energy consumption in the world today.
In Malaysia, developers are still weighing the costs and benefits of going green as many are concern that it will result in higher costs for their projects.
That explains why it is still early days for Malaysia’s green building initiatives and there is just a handful of such buildings at the moment.
Developers should be championing the green way of building as they are responsible for the planning and opening up of new corridors. Being a tropical country rich in flora and fauna, there are many opportunities for developers to preserve as much of the natural habitat as possible.
Whether projects are residential or commercial, buildings should adopt environment-friendly features such as natural ventilation for cooling, rain harvesting and conservation of original land form and vegetation.
Buildings should also be built with sustainable construction methods and materials. Although the cost of developing a green building may be more than that of a conventional building, the savings in operational costs would make it cheaper in the long run.
A building constructed with the right green designs and features, can reduce energy cost by 50%, which is a substantial saving as energy makes up 25% of a building’s operating cost.
Although green technologies have progressed quite well, much of the technology and materials used are still mostly imported.
Malaysian companies that have the know-how should venture into producing green technology building materials such as recycled content for floor finishes, photovoltaic systems and mechanical and electrical equipment.
Having a home grown rating tool in the form of the Green Building Index (GBI) is a also good start.
The GBI spells out the importance of energy-efficient design, indoor environmental quality, sustainable site planning and management, using the right materials and resources and water efficiency and innovation.
With the GBI in place, buildings can now be assessed and guided to reduce and minimise their impact on the environment.
But the contention by developers that the market may not be ready to pay the high fees for the GBI accreditation may undermine an otherwise worthy initiative.
Greenbuildingindex Sdn Bhd is a wholly-owned subsidiary of the Malaysian Institute of Architects and the Association of Consulting Engineers.
The assessment fees charged range from RM5,000 to more than RM100,000 based on the category and size of the building or property.
To promote the GBI accreditation among developers, the fees charged should be scaled back to make it more affordable. If the total development costs of a project escalates due to the GBI accreditation, buyers will have to pay more for their “green” property and this will not go down well with them.
If all goes well, green-accredited buildings will become sought after, especially if these buildings are able to fetch higher premium in terms of capital value and rental rates compared with non-green compliant buildings.
>Deputy news editor Angie Ng believes the green way of living and industry practices will be a great elixir for Mother Nature.
GOING green has become trendy among communities and organisations, and more people are taking up this cause by adopting an eco-friendly lifestyle.
Nevertheless, every stakeholder, whether they are common folk, government or private organisations, has to contribute towards ensuring a more sustainable environment.
With the Government’s move to review the uniform building by-laws to promote the adoption of more energy-saving and environmental sustainable measures for buildings, there will be more environment-friendly developments in the future.
The initiative to ensure new buildings feature energy-saving and other pro-environment measures is a good way to promote the green culture among industry players. After all, built structures make up almost a third of total energy consumption in the world today.
In Malaysia, developers are still weighing the costs and benefits of going green as many are concern that it will result in higher costs for their projects.
That explains why it is still early days for Malaysia’s green building initiatives and there is just a handful of such buildings at the moment.
Developers should be championing the green way of building as they are responsible for the planning and opening up of new corridors. Being a tropical country rich in flora and fauna, there are many opportunities for developers to preserve as much of the natural habitat as possible.
Whether projects are residential or commercial, buildings should adopt environment-friendly features such as natural ventilation for cooling, rain harvesting and conservation of original land form and vegetation.
Buildings should also be built with sustainable construction methods and materials. Although the cost of developing a green building may be more than that of a conventional building, the savings in operational costs would make it cheaper in the long run.
A building constructed with the right green designs and features, can reduce energy cost by 50%, which is a substantial saving as energy makes up 25% of a building’s operating cost.
Although green technologies have progressed quite well, much of the technology and materials used are still mostly imported.
Malaysian companies that have the know-how should venture into producing green technology building materials such as recycled content for floor finishes, photovoltaic systems and mechanical and electrical equipment.
Having a home grown rating tool in the form of the Green Building Index (GBI) is a also good start.
The GBI spells out the importance of energy-efficient design, indoor environmental quality, sustainable site planning and management, using the right materials and resources and water efficiency and innovation.
With the GBI in place, buildings can now be assessed and guided to reduce and minimise their impact on the environment.
But the contention by developers that the market may not be ready to pay the high fees for the GBI accreditation may undermine an otherwise worthy initiative.
Greenbuildingindex Sdn Bhd is a wholly-owned subsidiary of the Malaysian Institute of Architects and the Association of Consulting Engineers.
The assessment fees charged range from RM5,000 to more than RM100,000 based on the category and size of the building or property.
To promote the GBI accreditation among developers, the fees charged should be scaled back to make it more affordable. If the total development costs of a project escalates due to the GBI accreditation, buyers will have to pay more for their “green” property and this will not go down well with them.
If all goes well, green-accredited buildings will become sought after, especially if these buildings are able to fetch higher premium in terms of capital value and rental rates compared with non-green compliant buildings.
>Deputy news editor Angie Ng believes the green way of living and industry practices will be a great elixir for Mother Nature.
Tuesday, May 25, 2010
Najib and Lee all smiles after sealing KTMB land deal
By MERGAWATI ZULFAKAR merga@thestar.com.my
SINGAPORE: Malaysia and Singapore have broken a 20-year impasse on the status of KTM Berhad (KTMB) land in the island republic, with leaders of both countries declaring they could now smile and move their bilateral relationship forward.
Malaysia will move its railway station at Tanjung Pagar to Woodlands. In exchange, three parcels of KTMB land — at Tanjung Pagar, Kranji and Woodlands here — would be jointly developed by a company.
Announcing the deal, Prime Minister Datuk Seri Najib Tun Razak and his Singapore counterpart Lee Hsien Loong told a press conference that the Points of Agreement (POA) signed by both countries in 1990 would have “enhanced features” and final details would be hammered out when they met again in a month’s time in Malaysia.
Najib said the agreement reached at yesterday’s retreat was historical and “we see light at the end of the tunnel.”.
“We are both smiling,” he said.
Standing beside Najib, Lee said it was an occasion to rejoice.
“Both of us got a good deal. I think both of us are quite happy and it benefits both sides.
In a joint statement issued after the leaders’ retreat, they announced that the KTMB station would be relocated to Woodlands by July 1, 2011. Malaysia’s customs, immigration and quarantine facilities will also be located there.
A company known as M-S Pte Ltd would be set up by Dec 31, with Khazanah Nasional Berhad holding a 60% stake and Singapore’s Temasek Holdings Limited holding 40% to develop six parcels of land totalling 271ha.
Three of the parcels are in Tanjung Pagar, Kranji and Woodlands.
The other three are in Bukit Timah.
The developed KTMB land could in turn be swapped, on the basis of equivalent value for land in Marina South and Ophir Rochor in Singapore.
The leaders also said a rapid transit system (RTS) between Tanjung Puteri in Johor Baru and Singapore would be jointly developed and integrated with public transport services in Johor Baru and Singapore.
The RTS would be operational by 2018.
SINGAPORE: Malaysia and Singapore have broken a 20-year impasse on the status of KTM Berhad (KTMB) land in the island republic, with leaders of both countries declaring they could now smile and move their bilateral relationship forward.
Malaysia will move its railway station at Tanjung Pagar to Woodlands. In exchange, three parcels of KTMB land — at Tanjung Pagar, Kranji and Woodlands here — would be jointly developed by a company.
Announcing the deal, Prime Minister Datuk Seri Najib Tun Razak and his Singapore counterpart Lee Hsien Loong told a press conference that the Points of Agreement (POA) signed by both countries in 1990 would have “enhanced features” and final details would be hammered out when they met again in a month’s time in Malaysia.
Najib said the agreement reached at yesterday’s retreat was historical and “we see light at the end of the tunnel.”.
“We are both smiling,” he said.
Standing beside Najib, Lee said it was an occasion to rejoice.
“Both of us got a good deal. I think both of us are quite happy and it benefits both sides.
In a joint statement issued after the leaders’ retreat, they announced that the KTMB station would be relocated to Woodlands by July 1, 2011. Malaysia’s customs, immigration and quarantine facilities will also be located there.
A company known as M-S Pte Ltd would be set up by Dec 31, with Khazanah Nasional Berhad holding a 60% stake and Singapore’s Temasek Holdings Limited holding 40% to develop six parcels of land totalling 271ha.
Three of the parcels are in Tanjung Pagar, Kranji and Woodlands.
The other three are in Bukit Timah.
The developed KTMB land could in turn be swapped, on the basis of equivalent value for land in Marina South and Ophir Rochor in Singapore.
The leaders also said a rapid transit system (RTS) between Tanjung Puteri in Johor Baru and Singapore would be jointly developed and integrated with public transport services in Johor Baru and Singapore.
The RTS would be operational by 2018.
‘Live, work and play’ in Iskandar
SINGAPORE: Khazanah Nasional Berhad and Temasek Holdings Limited will form a 50-50 joint venture company to develop an iconic wellness township in Iskandar Malaysia involving the private sectors from both countries.
Malaysian and Singapore leaders who met here yesterday announced they expected the project to be launched within a year.
Prime Minister Datuk Seri Najib Tun Razak and his Singapore counterpart Lee Hsien Loong, who jointly announced the project after their retreat, said they supported the “live-work-play” wellness township concept, offering holistic wellness services and facilities.
The proposed project will involve up to 202.3ha of land.
Singapore also announced that upon the expiry of the 1961 agreement on the supply of water to Singapore from Johor on July 1, 2011, the island republic would hand over the Skudai waterworks asset free of charge and in good working order.
Najib said Malaysia was considering reducing toll rates on the Second Link, adding that Singapore would also consider matching the reduction Malaysia would offer.
He also hoped the agreement reached this round would be a positive signal for both sides, including the private sector.
Najib also said Malaysia still planned to have a third link to Singapore, adding that it was a long-term project.
Malaysian and Singapore leaders who met here yesterday announced they expected the project to be launched within a year.
Prime Minister Datuk Seri Najib Tun Razak and his Singapore counterpart Lee Hsien Loong, who jointly announced the project after their retreat, said they supported the “live-work-play” wellness township concept, offering holistic wellness services and facilities.
The proposed project will involve up to 202.3ha of land.
Singapore also announced that upon the expiry of the 1961 agreement on the supply of water to Singapore from Johor on July 1, 2011, the island republic would hand over the Skudai waterworks asset free of charge and in good working order.
Najib said Malaysia was considering reducing toll rates on the Second Link, adding that Singapore would also consider matching the reduction Malaysia would offer.
He also hoped the agreement reached this round would be a positive signal for both sides, including the private sector.
Najib also said Malaysia still planned to have a third link to Singapore, adding that it was a long-term project.
Monday, May 24, 2010
Strategic real estate development plan
I am attracted to the concept of strategic real estate development, which goes beyond the ordinary sense of property development.
Malaysia is trying to attract long-term capital from foreign direct investors that have substantial financial clout and global partnerships. These large investors have investments in different sectors that will benefit Malaysia and will bring about a multiplier effect of further economic investment and links. These first innovative moves are meant as a catalyst to brand Malaysia as a global investment destination, breed investor confidence and weave Malaysia into the global economy. Our targeted investors are partners of global market leaders and own some of the best brands in the world. This will certainly provide further business and investment opportunities that will benefit Malaysia.
We have land owned by the Government that are now idle or under-utilised for various reasons. We now want to unlock the strategic value of these federal assets. Our objective is simple: to capture high multiplier effects by unleashing the full economic potential of these assets to spur growth for a thriving and competitive economy. There is no open tender as it involves the transfer of land within the Government. However, I do intend for an open tender of Government land for development. It is incorrect to assume all Government land will be monopolised by a single institution.
Citing examples, the development of the joint-venture Sungai Buloh land involving the EPF will be tendered out. While this mega development plan will add to our economic growth, the development is also expected to benefit the 10 million EPF contributors. In more recent times, 1MDB, as a strategic development company wholly owned by the Government, is in a strong position to ensure that all its partners stay faithful to the key objective. The land to be developed in Sungai Besi is linked with the recently signed Memorandum of Understanding with the Qatar Investment Authority, which is keen to invest US$5 billion. It will be a comprehensive development that will include foreign as well as local players such as LTAT. As the lead agency, 1MDB will utilise its global networks to select and appoint local and international partners, who are world-class planners and developers, to harness the diversity of global and local experience to produce the best results. These are exceptional deals for our country and I hope for more high-level partnerships that will promote an infusion of global and local talents.
The need for sustainable development cannot be overstated. I support the call for public spaces and parks instead of concrete jungles. I also have high hopes that this new wave of developments will reflect our aspirations for sustainable living and for green technology to feature prominently in our way of life. The strategic real estate development will be green-driven to create green spaces and public parks for a better livable environment. I have said the essence in the New Economic Model is about changing mindsets. We must have the courage to attempt new approaches and new ways of thinking. Only then can we as 1Malaysia shape our future and ensure prosperity for all.
Malaysia is trying to attract long-term capital from foreign direct investors that have substantial financial clout and global partnerships. These large investors have investments in different sectors that will benefit Malaysia and will bring about a multiplier effect of further economic investment and links. These first innovative moves are meant as a catalyst to brand Malaysia as a global investment destination, breed investor confidence and weave Malaysia into the global economy. Our targeted investors are partners of global market leaders and own some of the best brands in the world. This will certainly provide further business and investment opportunities that will benefit Malaysia.
We have land owned by the Government that are now idle or under-utilised for various reasons. We now want to unlock the strategic value of these federal assets. Our objective is simple: to capture high multiplier effects by unleashing the full economic potential of these assets to spur growth for a thriving and competitive economy. There is no open tender as it involves the transfer of land within the Government. However, I do intend for an open tender of Government land for development. It is incorrect to assume all Government land will be monopolised by a single institution.
Citing examples, the development of the joint-venture Sungai Buloh land involving the EPF will be tendered out. While this mega development plan will add to our economic growth, the development is also expected to benefit the 10 million EPF contributors. In more recent times, 1MDB, as a strategic development company wholly owned by the Government, is in a strong position to ensure that all its partners stay faithful to the key objective. The land to be developed in Sungai Besi is linked with the recently signed Memorandum of Understanding with the Qatar Investment Authority, which is keen to invest US$5 billion. It will be a comprehensive development that will include foreign as well as local players such as LTAT. As the lead agency, 1MDB will utilise its global networks to select and appoint local and international partners, who are world-class planners and developers, to harness the diversity of global and local experience to produce the best results. These are exceptional deals for our country and I hope for more high-level partnerships that will promote an infusion of global and local talents.
The need for sustainable development cannot be overstated. I support the call for public spaces and parks instead of concrete jungles. I also have high hopes that this new wave of developments will reflect our aspirations for sustainable living and for green technology to feature prominently in our way of life. The strategic real estate development will be green-driven to create green spaces and public parks for a better livable environment. I have said the essence in the New Economic Model is about changing mindsets. We must have the courage to attempt new approaches and new ways of thinking. Only then can we as 1Malaysia shape our future and ensure prosperity for all.
Sunday, May 16, 2010
Should house buyers be wary?
By FINTAN NG fintan@thestar.com.my
Should house buyers be wary of rising property prices? Anecdotal evidence seem to point to significant price increases in the Klang Valley and Penang although the National Property Information Centre report for 2009, which was released on April 23, noted that residential property prices remained stable for the year.
The all-house price index, which is a gauge of national prices, saw a gain of only 1.5%.
ECM Libra Capital Sdn Bhd research head Bernard Ching says in a report dated April 26 that the gain is “the lowest annual gain since 2001.”
Several property consultants say the recent price rise in properties in select locations reflect pent-up demand after the market slump in the first half of last year.
They also say that the Malaysian residential property market sentiments are, while not immune to global economic factors and price movements, largely driven by house buyers here.
It was recently reported that the uptrend in property prices was driven by easy financing schemes offered by banks in partnership with developers and that this had led to some speculation in the market.
However, the consultants feel that any increase in property prices will still be selective and overall prices will not rise drastically but gradually.
CB Richard Ellis Sdn Bhd executive director Paul Khong says there have been some price increase but only for landed residential properties and in selected locations.
“Over the past one year, residential landed property prices have gone up 15% to 20% in good locations in and around Kuala Lumpur and Petaling Jaya,” he says.
Paul Khong says prices for the luxury condominium sub-segment of the residential property market, are still between 10% and 20% below the market’s peak.
Khong says prices for the luxury condominium sub-segment of the residential property market, are still between 10% and 20% below the market’s peak.
This sub-segment has been badly hit by the financial crisis as a considerable portion of sales are to foreigners. The number of foreign property buyers have dropped since early last year.
Khong feels that fewer launches and higher demand will affect the prices of landed residential properties.
Dr Teoh Poh Huat says the recent property price increases reflect the different economic fundamentals at play compared to a year ago.
Ching says property launches have been moderate after bottoming out in the first quarter of 2009. This trend was in line with on-the-ground observation of developers preferring to launch in smaller parcels.
“We expect moderate growth in property launches to continue in 2010. This is supported by declining building plan approval,” he says.
Ching says the last quarter of 2009 was a record quarter for both the residential and commercial segments of the property market despite the uninspiring set of numbers for the year as a whole.
He says in 2009, the residential segment recorded a marginal improvement in overall transaction value of 1.3% to RM41.8bil while the commercial segment contracted marginally by 1.4% to RM16.4bil.
Henry Butcher Malaysia (Penang) Sdn Bhd director Dr Teoh Poh Huat says the recent property price increases reflect the different economic fundamentals at play compared to a year ago.
He says the property market is driven by the sentiments of Malaysian buyers although these buyers may take into consideration factors at the macro or global levels. “But these factors are short-term whereas investing in property is long-term,” Teoh says.
He says the significant increase in transactions for the first quarter of this year is a reflection of these sentiments following an unexpected expansion of the economy in the final quarter of 2009.
“Confidence in the economy is quite strong. There is liquidity due to pump-priming measures as well as the high savings rate in the country. This is reflected in the transactions,” Teoh says.
Should house buyers be wary of rising property prices? Anecdotal evidence seem to point to significant price increases in the Klang Valley and Penang although the National Property Information Centre report for 2009, which was released on April 23, noted that residential property prices remained stable for the year.
The all-house price index, which is a gauge of national prices, saw a gain of only 1.5%.
ECM Libra Capital Sdn Bhd research head Bernard Ching says in a report dated April 26 that the gain is “the lowest annual gain since 2001.”
Several property consultants say the recent price rise in properties in select locations reflect pent-up demand after the market slump in the first half of last year.
They also say that the Malaysian residential property market sentiments are, while not immune to global economic factors and price movements, largely driven by house buyers here.
It was recently reported that the uptrend in property prices was driven by easy financing schemes offered by banks in partnership with developers and that this had led to some speculation in the market.
However, the consultants feel that any increase in property prices will still be selective and overall prices will not rise drastically but gradually.
CB Richard Ellis Sdn Bhd executive director Paul Khong says there have been some price increase but only for landed residential properties and in selected locations.
“Over the past one year, residential landed property prices have gone up 15% to 20% in good locations in and around Kuala Lumpur and Petaling Jaya,” he says.
Paul Khong says prices for the luxury condominium sub-segment of the residential property market, are still between 10% and 20% below the market’s peak.
Khong says prices for the luxury condominium sub-segment of the residential property market, are still between 10% and 20% below the market’s peak.
This sub-segment has been badly hit by the financial crisis as a considerable portion of sales are to foreigners. The number of foreign property buyers have dropped since early last year.
Khong feels that fewer launches and higher demand will affect the prices of landed residential properties.
Dr Teoh Poh Huat says the recent property price increases reflect the different economic fundamentals at play compared to a year ago.
Ching says property launches have been moderate after bottoming out in the first quarter of 2009. This trend was in line with on-the-ground observation of developers preferring to launch in smaller parcels.
“We expect moderate growth in property launches to continue in 2010. This is supported by declining building plan approval,” he says.
Ching says the last quarter of 2009 was a record quarter for both the residential and commercial segments of the property market despite the uninspiring set of numbers for the year as a whole.
He says in 2009, the residential segment recorded a marginal improvement in overall transaction value of 1.3% to RM41.8bil while the commercial segment contracted marginally by 1.4% to RM16.4bil.
Henry Butcher Malaysia (Penang) Sdn Bhd director Dr Teoh Poh Huat says the recent property price increases reflect the different economic fundamentals at play compared to a year ago.
He says the property market is driven by the sentiments of Malaysian buyers although these buyers may take into consideration factors at the macro or global levels. “But these factors are short-term whereas investing in property is long-term,” Teoh says.
He says the significant increase in transactions for the first quarter of this year is a reflection of these sentiments following an unexpected expansion of the economy in the final quarter of 2009.
“Confidence in the economy is quite strong. There is liquidity due to pump-priming measures as well as the high savings rate in the country. This is reflected in the transactions,” Teoh says.
New gameplan for YTL Land
By Angie Ng
YTL Corp Bhd will inject some of its overseas projects into YTL Land & Development Bhd by the year-end to transform the property unit into an international player.
For a start, the group will place its three projects in Singapore - Sandy Island and Kasara villas in Sentosa Cove, and the redevelopment of Westwood Apartments on Orchard Boulevard - under YTL Land.
Currently, these projects are under YTL Singapore Pte Ltd, a wholly-owned unit of YTL Group.
YTL Corp managing director Tan Sri Francis Yeoh says YTL Land will be busy with more projects as the group focused on expanding its presence in Asia.
It will concentrate on building luxurious residences in highly-sought-after destinations that offer unique culture and lifestyle.
Yeoh says YTL Land can tap into YTL Corp's experience in building properties in Phuket, Pangkor, Bali and Sentosa Cove, Singapore.
YTL Corp has a low-density luxurious villa project in Bali, Indonesia, and a big development in Koh Samui, Thailand.
Its hospitality arm YTL Hotels & Properties Sdn Bhd recently acquired Niseko Village, a prime winter and summer destination in Hokkaido, Japan, for six billion yen (RM224mil).
YTL Hotels is also embarking on some overseas projects such as the Swatch Art Peace Hotel in Shanghai; the MUSE Hotel De Luxe in Saint-Tropez, France; and The Chedi in Phuket, Thailand.
Yeoh believes the next two to three decades will see Asia growing from an emerging market to a global economic powerhouse.
He says the South-East Asian region is also likely to see big growth over the next two decades. “The tourism and related industries in this region can be an incubator for bigger things.
“South-East Asia is actually the Mediterranean and Caribbean of the East, offering lots of opportunities from the real estate perspective,” he tells StarBizWeek in Singapore on Saturday.
YTL Corp deputy managing director Datuk Yeoh Seok Kian says the group has great plans for YTL Land and these include establishing its footprint through iconic properties and communities worldwide.
“Ultimately, we aim to be a global developer of branded addresses, not because we can do so but because it presents us with a unique opportunity to make a difference in people's lives.
“We are extremely excited about the future of YTL Land. We will consolidate our Singapore properties - Sandy Island, Kasara villas in Sentosa Cove and Westwood Apartments in Orchard Boulevard - with our Malaysian portfolio. This is expected to take place in the last quarter of 2010,” says Seok Kian, who is also YTL Land executive director.
An artist's impression of YTL Corp's Sandy Island project at Sentosa Cove in Singapore.
“We are not just building beautiful homes; we are contributing to the well-being of our homeowners, allowing them to lead a more fulfilling life while connecting with their loved ones,” he adds.
Through its projects like The Maple, Sentul Park and Lake Edge, the company has shown how it can enrich the lives of homeowners.
“Seeing kids running around parks or families strolling leisurely along the lake while interacting with their neighbours is a huge satisfaction for us.”
Stressing that Singapore will be a huge market for YTL Land, Seok Kian says the company will bid for land that will be put up for sale by Singapore's national land use planning and conservation agency, the Urban Redevelopment Authority.
YTL Singapore director Kammy Tan says the development of Sandy Island and Kasara villas in Sentosa Cove is underway and the projects are scheduled for completion by 2015.
So far, 15 of the 18 Sandy Island villas priced from S$15mil to S$16mil have been sold. They have built up of 7,000 to 8,000 sq ft.
The 13 Kasara villas of 10,139 to 17,362 sq ft with price tags from S$14mil to S$22mil have all been taken up.
YTL Corp Bhd will inject some of its overseas projects into YTL Land & Development Bhd by the year-end to transform the property unit into an international player.
For a start, the group will place its three projects in Singapore - Sandy Island and Kasara villas in Sentosa Cove, and the redevelopment of Westwood Apartments on Orchard Boulevard - under YTL Land.
Currently, these projects are under YTL Singapore Pte Ltd, a wholly-owned unit of YTL Group.
YTL Corp managing director Tan Sri Francis Yeoh says YTL Land will be busy with more projects as the group focused on expanding its presence in Asia.
It will concentrate on building luxurious residences in highly-sought-after destinations that offer unique culture and lifestyle.
Yeoh says YTL Land can tap into YTL Corp's experience in building properties in Phuket, Pangkor, Bali and Sentosa Cove, Singapore.
YTL Corp has a low-density luxurious villa project in Bali, Indonesia, and a big development in Koh Samui, Thailand.
Its hospitality arm YTL Hotels & Properties Sdn Bhd recently acquired Niseko Village, a prime winter and summer destination in Hokkaido, Japan, for six billion yen (RM224mil).
YTL Hotels is also embarking on some overseas projects such as the Swatch Art Peace Hotel in Shanghai; the MUSE Hotel De Luxe in Saint-Tropez, France; and The Chedi in Phuket, Thailand.
Yeoh believes the next two to three decades will see Asia growing from an emerging market to a global economic powerhouse.
He says the South-East Asian region is also likely to see big growth over the next two decades. “The tourism and related industries in this region can be an incubator for bigger things.
“South-East Asia is actually the Mediterranean and Caribbean of the East, offering lots of opportunities from the real estate perspective,” he tells StarBizWeek in Singapore on Saturday.
YTL Corp deputy managing director Datuk Yeoh Seok Kian says the group has great plans for YTL Land and these include establishing its footprint through iconic properties and communities worldwide.
“Ultimately, we aim to be a global developer of branded addresses, not because we can do so but because it presents us with a unique opportunity to make a difference in people's lives.
“We are extremely excited about the future of YTL Land. We will consolidate our Singapore properties - Sandy Island, Kasara villas in Sentosa Cove and Westwood Apartments in Orchard Boulevard - with our Malaysian portfolio. This is expected to take place in the last quarter of 2010,” says Seok Kian, who is also YTL Land executive director.
An artist's impression of YTL Corp's Sandy Island project at Sentosa Cove in Singapore.
“We are not just building beautiful homes; we are contributing to the well-being of our homeowners, allowing them to lead a more fulfilling life while connecting with their loved ones,” he adds.
Through its projects like The Maple, Sentul Park and Lake Edge, the company has shown how it can enrich the lives of homeowners.
“Seeing kids running around parks or families strolling leisurely along the lake while interacting with their neighbours is a huge satisfaction for us.”
Stressing that Singapore will be a huge market for YTL Land, Seok Kian says the company will bid for land that will be put up for sale by Singapore's national land use planning and conservation agency, the Urban Redevelopment Authority.
YTL Singapore director Kammy Tan says the development of Sandy Island and Kasara villas in Sentosa Cove is underway and the projects are scheduled for completion by 2015.
So far, 15 of the 18 Sandy Island villas priced from S$15mil to S$16mil have been sold. They have built up of 7,000 to 8,000 sq ft.
The 13 Kasara villas of 10,139 to 17,362 sq ft with price tags from S$14mil to S$22mil have all been taken up.
Greening urban landscape
Director of Broadway Malyan Singapore Jason Pomeroy shares his views on the “greening” of the urban landscape of the future, and on how real estate developers and city planners could go about designing green cities and buildings. Pomeroy is also responsible for some of the most innovative green projects in Southeast Asia, including the Sime Darby Idea House, which was completed in April 2010.
You are responsible for some of the most innovative green projects in Southeast Asia. Are there any that you are particularly proud of? I'm particularly proud of the Idea House. Sime Darby approached me two years ago to come up with a prototype dwelling that could represent the cutting edge in sustainable tropical living. Two years on, and we are in the midst of finalising the construction of the first carbon neutral house in Southeast Asia! This is pretty important insofar, as carbon is the major contributor to the build-up of greenhouse gases in the atmosphere, which scientists argue have depleted the ozone and caused global warming.
What makes the Idea House unique? The essence of the house is one of a 'back-to-basics' approach to environmental design. This means looking at passive, low-tech design solutions that cause minimal disruption to the environment; has a low or negative carbon footprint and harvests renewable sources of energy/resource for the developments self-sustenance - sun, wind, rain.
The house is a reinterpretation of the traditional kampong house. It has a lightness of touch on the landscape, comprises low thermal mass materials, adopts rainwater harvesting with a 98 percent efficiency, integrates photovoltaic cells that generate enough energy to power the house for a family of five, harnesses cross ventilation, has deep overhanging roofs, utilises low energy appliances, incorporates recyclable materials and, ultimately, the appropriate orientation of the building to minimise solar heat gain. All of these attributes collectively contribute to creating a carbon zero footprint.
You are an advocate of sustainable tall building design, in which you gained your research degree from Cambridge. So, what constitutes sustainable tall buildings and what is the concept of vertical urbanism that you frequently discuss in your published works? I think it’s important to start off by saying that 'sustainable tall building’ is somewhat an oxymoron. Tall building development is not the panacea to our environmental or socio-economic woes - far be it, as they can be gas guzzling objects that are highly resource intensive, and have historically had their fair share of bad press in the way that they can be perceived as overt expressions of power and prestige.
However, they can similarly be a response to socio, economic and environmental pressures on our cities.
Since 2007, half the world's population have been living in inner city centres, and will continue to grow from 6 billion today to about 9.2 billion in 2050. With the increasing depletion of open space through high density urban development that caters for such inner city migration, we need to re-investigate the process of two dimensional land use planning in a more three dimensional way in order to cater for such social and economic growth. This means considering multiple layers of differing land use that are 'mixed up' and extruded in tower form.
This should be supported by the resplendent open spaces that one finds in the form of the street and the square on the ground, albeit reinterpreted vertically in the form of the sky court and garden in the sky. Such a balancing of vertical open space and vertical land use start to create a tall building that is not an isolated glass box but becomes an integral part of the vertical city.
Environmentally, the compact nature of high density mixed-use tall building reduces the need to travel to the peripheries in fossil fuel intensive cars and along high carbon footprint infrastructure, but should be able to maximise green transport linkages, like the LRT and subterranean concourses, as is the case in Singapore and Hong Kong.
The embracing of roof top gardens and vertical green eco-systems, not only reinforce the social attributes of living, working and playing at height, but also contribute to reducing the energy consumption of the buildings by keeping them cool, or even capturing rainwater.
Economically, an appropriate design that is responsive to the climatic conditions of the place also means that running costs of the building can be reduced. Orientating the building to minimise solar heat gain caused by low angle east and west sun, being able to use light thermal mass materials or the application of low energy appliances or low embodied energy materials collectively help reduce running costs.
Vertical Urbanism as a theory is therefore intrinsically linked to the sustainability of our global cities. The transition from 'sprawl-and-green to tall-and-green' means that the sustainable mixed-use tall building is a vertical extrapolation of the city, and as every year goes by, I am continually seeing the need for such a philosophy to embraced for a vibrant 24-hour city that can be enjoyed by our future generations.
What is your vision of cities in the future, especially in the Southeast Asia? Population increase and consequent inner city densification has led to considerable strain on the movement infrastructure and the increasing temperatures within the city centre. Building environment professionals need to take more fundamental steps to consider the decongestion of the city and the upgrading of the movement infrastructure in order to ensure that Southeast Asian city growth and freedom of passage for our future generations can be achieved.
This means due consideration given to LRT, monorail and underground systems that can provide an ease of mass transport. Consideration as to how to reduce energy consumption and reliance on fossil fuels is also important through the exploration of clean technologies such as wind, biomass, ground source heat pumps, or solar cell technology as alternative decentralised energy means. Greening the city by more public open parks and green roofs can also help reduce the heat island effect and create spaces that society can enjoy.
Sime Darby Idea House
Would becoming 'green' mean additional costs? Are real estate developers, especially in Malaysia, becoming more aware and willing to take on the additional costs? I think the days of astronomic costs at the inclusion of green technologies are a thing of the past. Once upon a time, we would identify a technology and connect it to a building or development, and hope that our carbon woes would go away. Such actions traditionally would see green developments costing 30 percent to 40 percent more than conventional developments purely because of the lack of co-ordination and interface between the building and the technology, and also a lack of integrated forward planning. Furthermore, the inappropriate use of green technologies that does not respond to the climatic conditions of place, for example, using wind turbine technology when there are very little wind speeds, would drive up costs.
Today however, I would like to think that built-environment professionals are far more joined-up in thinking, and there is an increasing drive to harvest the elements - sun, wind and rain - in a passive, 'low-tech' way that will not add to the bottom line. If we consider today that the cost of a Green Mark Platinum rated building, Singapore's equivalent to Malaysia's GBI green assessment method, maybe as little as 5 percent above conventional building costs, or even 3 percent for Gold, it certainly suggests that costs have come down drastically.
What we need to remember also is not what the additional costs are, but what the positive gains are too. Given increasing corporate social responsibility policies, the rise of the green consumer and our broader global society are waking up to the 'inconvenient truth' of climate change. The embracing of green buildings has become a necessity but at the same time has economic benefits. Green buildings see an increase in tenant retention of 7 percent, re-sale value increase of 10 percent and tenant rental increase of 10 percent.
It is therefore little surprise that the commitment to creating green buildings in 2005 of USD10 billion is set to rise to USD60 billion in 2010 in the space of five years! As Asia is the fastest growing green building market, it seems imperative that Malaysia embraces the trend for both its environmental and economic benefits.
Are there sufficient guidelines for the real estate industry to take up the sustainable approach? I think there is still work to be done, but it is a move in the right direction. The Earth/Climate Change summits in Rio, Kyoto, and then most recently Copenhagen last December have all tried to create a united global voice against climate change. Some countries have set bold carbon emission targets which should be encouraged for the betterment of the environment and our future generations.
The UK government have advocated that all new homes will need to be carbon neutral by 2016, with public facilities joining suit in 2019. I'd be delighted to see such commitments being embraced on a global scale, and particularly in Asia, given the fact that 50 percent of global carbon emissions will be from developing Asian countries by 2050. In order for this to happen, legislation needs to be passed. Though, incentives may also need to be in place at the outset to encourage such a move by the real estate industry.
What are the benefits of adopting green practices in the long run? Everyone can benefit by going green. Companies leasing green buildings have lower energy bills and have better working environments that can improve employee productivity. Developers building green buildings satisfy their corporate social responsibilities, can maximise planning opportunities and even sell their buildings at a premium. Green consumers living or playing in green buildings have a heightened sense of enjoyment and community belonging.
Governments supporting green buildings get re-elected in their embracing of the climate change agenda in the interests of securing a sustainable future for our children.
Going green isn't a short term thing, and needs to be considered long term to maximise the social, economic and environmental benefits. Just as one does not invest in a stock with the view to immediate selling the next day, so too should we be considering sustainability for the long term. If we don't, the economic and environmental consequences will be catastrophic for our children.
You are responsible for some of the most innovative green projects in Southeast Asia. Are there any that you are particularly proud of? I'm particularly proud of the Idea House. Sime Darby approached me two years ago to come up with a prototype dwelling that could represent the cutting edge in sustainable tropical living. Two years on, and we are in the midst of finalising the construction of the first carbon neutral house in Southeast Asia! This is pretty important insofar, as carbon is the major contributor to the build-up of greenhouse gases in the atmosphere, which scientists argue have depleted the ozone and caused global warming.
What makes the Idea House unique? The essence of the house is one of a 'back-to-basics' approach to environmental design. This means looking at passive, low-tech design solutions that cause minimal disruption to the environment; has a low or negative carbon footprint and harvests renewable sources of energy/resource for the developments self-sustenance - sun, wind, rain.
The house is a reinterpretation of the traditional kampong house. It has a lightness of touch on the landscape, comprises low thermal mass materials, adopts rainwater harvesting with a 98 percent efficiency, integrates photovoltaic cells that generate enough energy to power the house for a family of five, harnesses cross ventilation, has deep overhanging roofs, utilises low energy appliances, incorporates recyclable materials and, ultimately, the appropriate orientation of the building to minimise solar heat gain. All of these attributes collectively contribute to creating a carbon zero footprint.
You are an advocate of sustainable tall building design, in which you gained your research degree from Cambridge. So, what constitutes sustainable tall buildings and what is the concept of vertical urbanism that you frequently discuss in your published works? I think it’s important to start off by saying that 'sustainable tall building’ is somewhat an oxymoron. Tall building development is not the panacea to our environmental or socio-economic woes - far be it, as they can be gas guzzling objects that are highly resource intensive, and have historically had their fair share of bad press in the way that they can be perceived as overt expressions of power and prestige.
However, they can similarly be a response to socio, economic and environmental pressures on our cities.
Since 2007, half the world's population have been living in inner city centres, and will continue to grow from 6 billion today to about 9.2 billion in 2050. With the increasing depletion of open space through high density urban development that caters for such inner city migration, we need to re-investigate the process of two dimensional land use planning in a more three dimensional way in order to cater for such social and economic growth. This means considering multiple layers of differing land use that are 'mixed up' and extruded in tower form.
This should be supported by the resplendent open spaces that one finds in the form of the street and the square on the ground, albeit reinterpreted vertically in the form of the sky court and garden in the sky. Such a balancing of vertical open space and vertical land use start to create a tall building that is not an isolated glass box but becomes an integral part of the vertical city.
Environmentally, the compact nature of high density mixed-use tall building reduces the need to travel to the peripheries in fossil fuel intensive cars and along high carbon footprint infrastructure, but should be able to maximise green transport linkages, like the LRT and subterranean concourses, as is the case in Singapore and Hong Kong.
The embracing of roof top gardens and vertical green eco-systems, not only reinforce the social attributes of living, working and playing at height, but also contribute to reducing the energy consumption of the buildings by keeping them cool, or even capturing rainwater.
Economically, an appropriate design that is responsive to the climatic conditions of the place also means that running costs of the building can be reduced. Orientating the building to minimise solar heat gain caused by low angle east and west sun, being able to use light thermal mass materials or the application of low energy appliances or low embodied energy materials collectively help reduce running costs.
Vertical Urbanism as a theory is therefore intrinsically linked to the sustainability of our global cities. The transition from 'sprawl-and-green to tall-and-green' means that the sustainable mixed-use tall building is a vertical extrapolation of the city, and as every year goes by, I am continually seeing the need for such a philosophy to embraced for a vibrant 24-hour city that can be enjoyed by our future generations.
What is your vision of cities in the future, especially in the Southeast Asia? Population increase and consequent inner city densification has led to considerable strain on the movement infrastructure and the increasing temperatures within the city centre. Building environment professionals need to take more fundamental steps to consider the decongestion of the city and the upgrading of the movement infrastructure in order to ensure that Southeast Asian city growth and freedom of passage for our future generations can be achieved.
This means due consideration given to LRT, monorail and underground systems that can provide an ease of mass transport. Consideration as to how to reduce energy consumption and reliance on fossil fuels is also important through the exploration of clean technologies such as wind, biomass, ground source heat pumps, or solar cell technology as alternative decentralised energy means. Greening the city by more public open parks and green roofs can also help reduce the heat island effect and create spaces that society can enjoy.
Sime Darby Idea House
Would becoming 'green' mean additional costs? Are real estate developers, especially in Malaysia, becoming more aware and willing to take on the additional costs? I think the days of astronomic costs at the inclusion of green technologies are a thing of the past. Once upon a time, we would identify a technology and connect it to a building or development, and hope that our carbon woes would go away. Such actions traditionally would see green developments costing 30 percent to 40 percent more than conventional developments purely because of the lack of co-ordination and interface between the building and the technology, and also a lack of integrated forward planning. Furthermore, the inappropriate use of green technologies that does not respond to the climatic conditions of place, for example, using wind turbine technology when there are very little wind speeds, would drive up costs.
Today however, I would like to think that built-environment professionals are far more joined-up in thinking, and there is an increasing drive to harvest the elements - sun, wind and rain - in a passive, 'low-tech' way that will not add to the bottom line. If we consider today that the cost of a Green Mark Platinum rated building, Singapore's equivalent to Malaysia's GBI green assessment method, maybe as little as 5 percent above conventional building costs, or even 3 percent for Gold, it certainly suggests that costs have come down drastically.
What we need to remember also is not what the additional costs are, but what the positive gains are too. Given increasing corporate social responsibility policies, the rise of the green consumer and our broader global society are waking up to the 'inconvenient truth' of climate change. The embracing of green buildings has become a necessity but at the same time has economic benefits. Green buildings see an increase in tenant retention of 7 percent, re-sale value increase of 10 percent and tenant rental increase of 10 percent.
It is therefore little surprise that the commitment to creating green buildings in 2005 of USD10 billion is set to rise to USD60 billion in 2010 in the space of five years! As Asia is the fastest growing green building market, it seems imperative that Malaysia embraces the trend for both its environmental and economic benefits.
Are there sufficient guidelines for the real estate industry to take up the sustainable approach? I think there is still work to be done, but it is a move in the right direction. The Earth/Climate Change summits in Rio, Kyoto, and then most recently Copenhagen last December have all tried to create a united global voice against climate change. Some countries have set bold carbon emission targets which should be encouraged for the betterment of the environment and our future generations.
The UK government have advocated that all new homes will need to be carbon neutral by 2016, with public facilities joining suit in 2019. I'd be delighted to see such commitments being embraced on a global scale, and particularly in Asia, given the fact that 50 percent of global carbon emissions will be from developing Asian countries by 2050. In order for this to happen, legislation needs to be passed. Though, incentives may also need to be in place at the outset to encourage such a move by the real estate industry.
What are the benefits of adopting green practices in the long run? Everyone can benefit by going green. Companies leasing green buildings have lower energy bills and have better working environments that can improve employee productivity. Developers building green buildings satisfy their corporate social responsibilities, can maximise planning opportunities and even sell their buildings at a premium. Green consumers living or playing in green buildings have a heightened sense of enjoyment and community belonging.
Governments supporting green buildings get re-elected in their embracing of the climate change agenda in the interests of securing a sustainable future for our children.
Going green isn't a short term thing, and needs to be considered long term to maximise the social, economic and environmental benefits. Just as one does not invest in a stock with the view to immediate selling the next day, so too should we be considering sustainability for the long term. If we don't, the economic and environmental consequences will be catastrophic for our children.
Combat climate change with green technology and solutions
By Sherry Koh
Tree hugger. Eco-preneur. Greenest person on the planet (awarded by 3rd whale, Canada for year 2008). Matthias Gelber is indeed an eco-warrior in every sense of the word. He comes from a village with a population of 500 (no, there are no missing zeroes) in Lippe, Germany. Today, he travels all over the globe preaching and practising eco-activities. Find out about how the use of material such as green cement can help in mitigating climate change and global warming.
How did you get from your kampong (village) in Lippe to the city of Kuala Lumpur? I think in those days, I always wanted to do something for the environment. As a kid and teenager, we played in the woods. We used to have 3 months of snow in (the) winter. That has changed. Unfortunately, the show comes and goes. That’s what I can see, the impact of climate change. On the other hand, I am not a guy who believes in simplistic truths. Every flooding we can’t say it is the result of climate change. Yes, climate change is increasing the fluctuation of the climate and some of flooding not necessarily down to climate change. It is down to deforestation, it is down to change in landscape. It is human interference in our natural environment.
I came to Malaysia five and a half yrs ago. After my studies in Germany and the UK, I got heavily involved in working with businesses and became an expert on Environmental Management Systems. Very quickly, I became well-known internationally as a speaker, trainer and expert on the subject. I lived in the UK for 10 years; started and sold a business. I decided it was time for a sunnier climate. I had some friends in Malaysia, (I have) done stuff here, Malaysia My Second Home programme, (my) training always went well in this part of the world. So I decided on Malaysia.
Tell us about green concrete technology. Malaysia is more like buy from elsewhere, bring it in and make some money with selling. But not many Malaysian companies are looking for strategic green technology. That’s at least my experience. We have green technology. We turn waste into concrete and products. But we are actually looking for strategic and technology partners who are keen on joint-venture to acquire parts of our technology.
Which other countries are giving you better response? We see some interest from China and Singapore.
What is green cement? Most people don’t know that the product process of cement manufacturing is the world’s contributor to climate change. No other product manufacturing contributes as much to global warming than cement manufacturing.
Calcium carbonate is CaCO3. When we burn that, we need huge amounts of fuel like coal. So we produce a lot of CO2 (carbon dioxide) by burning that coal and at same time, (we) produce even more CO2 by releasing the carbon dioxide that’s in the calcium carbonate. Limestone is being built over millions of years. Some of these mountains are being chopped down because of limestone. That’s chemistry. You cannot change that.
People say that they are making it more efficient by increasing the energy efficiency. Yes, that’s good. But cement manufacturing itself is fundamentally an unsustainable and non-renewable process.
The idea of green cement is (that) we use waste materials that have similar properties, like when you think about why there are so many buildings in Rome that are still around. Cement as we use it now was only invented the 1700s, I think 1750. But how did the Romans build the Pantheon? It is more than 2,000 years old! They are built from volcanic ash mainly. Even volcanic ash has cement-like properties. In Malaysia, (there’s) not that much. So that’s why this business is not so easy in Malaysia. But in other countries, (like) Indonesia, China (and) India, there is a huge volume of unutilised volcanic ash available. That, theoretically could be used to build buildings.
Applications of Maleki GmbH’s Industrial Flooring System. Material is being pumped into the floor. This way, one can make a large surface area in a short period of time. Another benefit, beside the green feature of the company’s products, is its fast curing. The next day after application, the surface can be used again.
How many percent of CO2 does cement manufacturing contribute to the environment? Six to seven percent. In China, (it is) more than 10 percent. That’s substantial. It’s more than double of all the planes in the world together. We think about flying as being bad for the environment. Yes, it is. But cement manufacturing is more than double the planes in the world. Flying is about 3 percent, I think.
What other material does your company, Maleki GmbH, produce? In Malaysia, we are not manufacturing yet. (We) haven’t found right partner for that. We are manufacturing in Germany, close to 50 different products. We do industrial flooring, we do materials that protect the durability of concrete, we do materials that make concrete waterproof. All sorts of eco-friendly low carbon footprint water-based material that make buildings last longer, more eco-friendly and better insulated.
What is the carbon footprint for a cement plant? For example, an average Malaysian cement plant, maybe generates one million tons of cement. (I) can roughly say, (the) equivalent (of CO2) is one million tons of carbon dioxide. Because roughly one ton of cement production, 1,000 kilos, trigger off 1,000 kilos of CO2.
What can the general public do to be greener? They can do a lot. (The) simplest starting point is to look at electricity bill. It doesn’t lie. Slash (that) by 10, 20 percent and you will help the environment. Actually, now we are discussing Malaysia’s needs (for) more hydro dams, a nuclear plant. Why? Because we are consuming too much electricity. If we spend that money in energy efficiency, we wouldn’t need all those plants, in my opinion.
How would one know if a home or building is really as green as it proclaims to be? The GBI (Green Building Index) is one indicator but at the end of the day, it boils down to the carbon footprint itself. For example, they calculated the London Olympics. More than 60 percent of the carbon footprint of the London Olympics will be in the building materials that are being used. Because the London Olympics doesn’t last very long. So the construction itself is a huge component of the carbon footprint. The concrete that is being used, that is the majority share of it.
Heat and corrosion resistant silicate material being applied on a steel structure for corrosion protection. The product is called Total Protective Coating.
So if you want to purchase a green home, (we need to know) what building material has been used and that is neglected in the GBI so far. But I know people are moving towards that. Dr Tan (Chairman of Malaysian Institute of Architects (PAM) sustainability committee) who has been one of the key players, he told me recently, that they are starting to look at the carbon footprint. That is good news. We need to look at carbon footprint. Otherwise we have buildings (that are) certified platinum but they might’ve just used very high carbon footprint concrete. They might’ve used other damaging building materials. And the electricity consumption inside is still high even if they got certification. So we need to look at passive cooling, insulation, shading, (and) orientation of the building. Because once we have tat in place, we don’t need to spend too much on very expensive solar cells and we don’t need that much electricity to keep that building cool.
The fact and figure (that is) relevant for the industry is; approximately 40 percent of global CO2 emissions are linked to construction industry. Our industry is one of the main players and has one of the biggest opportunities to reduce (carbon footprint). That’s been identified in international statistics that have tried to evaluate where we can add economic value and reduce CO2 emissions at the same time. Refurbishment is one of the areas where we could quickly help to reduce CO2 emissions.
Malaysia has one of the world’s most amazing natural carbon sink – peat swamp forests. They are amazing, they are incredible. We need to do everything we can to avoid those peat swamps to be destroyed. They are the world’s best natural carbon sink. Malaysia is number two in the world after Indonesia.
What other activities contribute to the emission of CO2? There are two things that partially overlap. Generation of electricity. A lot of electricity is consumed by buildings. Power generation. Where is that power generation consumed? In our buildings, (and) factories. So we have to be careful because it is partially overlapping.
Tell us about your group Eco-warriors Malaysia. We are just a Facebook group of people with a common interest. We want to do something good for mother earth. That’s what brings us together.
When was it set up? It was set up in November 2008. (It is) not that old yet. I want to inspire some people and hopefully get some tree-planting going. I launched a one million tree-planting campaign. That would be a life journey for me. What else can the Government and the real estate industry do? We need to focus on energy efficiency. One thing (that) we are lacking is that there are different things going on. And I personally think that this whole concept of 1Malaysia, we need that for ‘1Malaysia Energy Efficiency’ where everybody, the Government, industry, regional approach, cities, individuals, NGOs, is basically working together on making it happen. It would be good if we could get something like that going.
The more we consume, the more we waste. We can leave something here by doing the right thing. We can leave a positive legacy of preservation and leaving something behind for future generations.
Tree hugger. Eco-preneur. Greenest person on the planet (awarded by 3rd whale, Canada for year 2008). Matthias Gelber is indeed an eco-warrior in every sense of the word. He comes from a village with a population of 500 (no, there are no missing zeroes) in Lippe, Germany. Today, he travels all over the globe preaching and practising eco-activities. Find out about how the use of material such as green cement can help in mitigating climate change and global warming.
How did you get from your kampong (village) in Lippe to the city of Kuala Lumpur? I think in those days, I always wanted to do something for the environment. As a kid and teenager, we played in the woods. We used to have 3 months of snow in (the) winter. That has changed. Unfortunately, the show comes and goes. That’s what I can see, the impact of climate change. On the other hand, I am not a guy who believes in simplistic truths. Every flooding we can’t say it is the result of climate change. Yes, climate change is increasing the fluctuation of the climate and some of flooding not necessarily down to climate change. It is down to deforestation, it is down to change in landscape. It is human interference in our natural environment.
I came to Malaysia five and a half yrs ago. After my studies in Germany and the UK, I got heavily involved in working with businesses and became an expert on Environmental Management Systems. Very quickly, I became well-known internationally as a speaker, trainer and expert on the subject. I lived in the UK for 10 years; started and sold a business. I decided it was time for a sunnier climate. I had some friends in Malaysia, (I have) done stuff here, Malaysia My Second Home programme, (my) training always went well in this part of the world. So I decided on Malaysia.
Tell us about green concrete technology. Malaysia is more like buy from elsewhere, bring it in and make some money with selling. But not many Malaysian companies are looking for strategic green technology. That’s at least my experience. We have green technology. We turn waste into concrete and products. But we are actually looking for strategic and technology partners who are keen on joint-venture to acquire parts of our technology.
Which other countries are giving you better response? We see some interest from China and Singapore.
What is green cement? Most people don’t know that the product process of cement manufacturing is the world’s contributor to climate change. No other product manufacturing contributes as much to global warming than cement manufacturing.
Calcium carbonate is CaCO3. When we burn that, we need huge amounts of fuel like coal. So we produce a lot of CO2 (carbon dioxide) by burning that coal and at same time, (we) produce even more CO2 by releasing the carbon dioxide that’s in the calcium carbonate. Limestone is being built over millions of years. Some of these mountains are being chopped down because of limestone. That’s chemistry. You cannot change that.
People say that they are making it more efficient by increasing the energy efficiency. Yes, that’s good. But cement manufacturing itself is fundamentally an unsustainable and non-renewable process.
The idea of green cement is (that) we use waste materials that have similar properties, like when you think about why there are so many buildings in Rome that are still around. Cement as we use it now was only invented the 1700s, I think 1750. But how did the Romans build the Pantheon? It is more than 2,000 years old! They are built from volcanic ash mainly. Even volcanic ash has cement-like properties. In Malaysia, (there’s) not that much. So that’s why this business is not so easy in Malaysia. But in other countries, (like) Indonesia, China (and) India, there is a huge volume of unutilised volcanic ash available. That, theoretically could be used to build buildings.
Applications of Maleki GmbH’s Industrial Flooring System. Material is being pumped into the floor. This way, one can make a large surface area in a short period of time. Another benefit, beside the green feature of the company’s products, is its fast curing. The next day after application, the surface can be used again.
How many percent of CO2 does cement manufacturing contribute to the environment? Six to seven percent. In China, (it is) more than 10 percent. That’s substantial. It’s more than double of all the planes in the world together. We think about flying as being bad for the environment. Yes, it is. But cement manufacturing is more than double the planes in the world. Flying is about 3 percent, I think.
What other material does your company, Maleki GmbH, produce? In Malaysia, we are not manufacturing yet. (We) haven’t found right partner for that. We are manufacturing in Germany, close to 50 different products. We do industrial flooring, we do materials that protect the durability of concrete, we do materials that make concrete waterproof. All sorts of eco-friendly low carbon footprint water-based material that make buildings last longer, more eco-friendly and better insulated.
What is the carbon footprint for a cement plant? For example, an average Malaysian cement plant, maybe generates one million tons of cement. (I) can roughly say, (the) equivalent (of CO2) is one million tons of carbon dioxide. Because roughly one ton of cement production, 1,000 kilos, trigger off 1,000 kilos of CO2.
What can the general public do to be greener? They can do a lot. (The) simplest starting point is to look at electricity bill. It doesn’t lie. Slash (that) by 10, 20 percent and you will help the environment. Actually, now we are discussing Malaysia’s needs (for) more hydro dams, a nuclear plant. Why? Because we are consuming too much electricity. If we spend that money in energy efficiency, we wouldn’t need all those plants, in my opinion.
How would one know if a home or building is really as green as it proclaims to be? The GBI (Green Building Index) is one indicator but at the end of the day, it boils down to the carbon footprint itself. For example, they calculated the London Olympics. More than 60 percent of the carbon footprint of the London Olympics will be in the building materials that are being used. Because the London Olympics doesn’t last very long. So the construction itself is a huge component of the carbon footprint. The concrete that is being used, that is the majority share of it.
Heat and corrosion resistant silicate material being applied on a steel structure for corrosion protection. The product is called Total Protective Coating.
So if you want to purchase a green home, (we need to know) what building material has been used and that is neglected in the GBI so far. But I know people are moving towards that. Dr Tan (Chairman of Malaysian Institute of Architects (PAM) sustainability committee) who has been one of the key players, he told me recently, that they are starting to look at the carbon footprint. That is good news. We need to look at carbon footprint. Otherwise we have buildings (that are) certified platinum but they might’ve just used very high carbon footprint concrete. They might’ve used other damaging building materials. And the electricity consumption inside is still high even if they got certification. So we need to look at passive cooling, insulation, shading, (and) orientation of the building. Because once we have tat in place, we don’t need to spend too much on very expensive solar cells and we don’t need that much electricity to keep that building cool.
The fact and figure (that is) relevant for the industry is; approximately 40 percent of global CO2 emissions are linked to construction industry. Our industry is one of the main players and has one of the biggest opportunities to reduce (carbon footprint). That’s been identified in international statistics that have tried to evaluate where we can add economic value and reduce CO2 emissions at the same time. Refurbishment is one of the areas where we could quickly help to reduce CO2 emissions.
Malaysia has one of the world’s most amazing natural carbon sink – peat swamp forests. They are amazing, they are incredible. We need to do everything we can to avoid those peat swamps to be destroyed. They are the world’s best natural carbon sink. Malaysia is number two in the world after Indonesia.
What other activities contribute to the emission of CO2? There are two things that partially overlap. Generation of electricity. A lot of electricity is consumed by buildings. Power generation. Where is that power generation consumed? In our buildings, (and) factories. So we have to be careful because it is partially overlapping.
Tell us about your group Eco-warriors Malaysia. We are just a Facebook group of people with a common interest. We want to do something good for mother earth. That’s what brings us together.
When was it set up? It was set up in November 2008. (It is) not that old yet. I want to inspire some people and hopefully get some tree-planting going. I launched a one million tree-planting campaign. That would be a life journey for me. What else can the Government and the real estate industry do? We need to focus on energy efficiency. One thing (that) we are lacking is that there are different things going on. And I personally think that this whole concept of 1Malaysia, we need that for ‘1Malaysia Energy Efficiency’ where everybody, the Government, industry, regional approach, cities, individuals, NGOs, is basically working together on making it happen. It would be good if we could get something like that going.
The more we consume, the more we waste. We can leave something here by doing the right thing. We can leave a positive legacy of preservation and leaving something behind for future generations.
Change the climate, save the future
By Sherry Koh
Change the climate, save the future
Environmental crises are all around us. We are already experiencing and seeing the changes. Global warming, hazardous waste, air pollution and resource depletion are just a few of the many mounting worries.
According to Natural Resources and Environment Minister Datuk Seri Douglas Unggah Embas, Malaysia's average temperature has risen by 1.1 degree Celsius in the past 50 years, consistent with the warming of global temperature. This resulted in changes in the rainfall patterns, causing more floods. The latest finding also showed that the sea level was also on the increase, at the rate of 1.25mm a year.
Greenest Person on the Planet, Matthias Gelber
Oh, carbon! Global warming is due to the continuous rise of greenhouse gas emissions such as carbon dioxide into the earth's atmosphere. Many green-related jargons have been associated with this word - carbon. One of the most used terms is arguably carbon footprint, which is directly linked to each and every one of us.
Co-founder of Maleki GmbH and Greenest Person on the Planet 2008 award winner Matthias Gelber explains,“Carbon footprint is translating all of our activities that have an environmental impact into a total figure equivalent to the amount of CO2 (carbon dioxide) that we are responsible for. When you switch on the kettle in the morning to get hot water, you consume electricity. That electricity shows up on your monthly meter. The electricity in kilowatt hours. So we are trying to get a gauge of our own responsibility as an individual about how much carbon dioxide equivalent one emits. When you burn fuel in your car, that generates CO2 emissions and other emissions. And we try and calculate from all of that the equivalent amount of carbon dioxide emission, so that we have one currency.
“When we talk about money, we talk in Ringgit. When we talk about environmental impact and global warming, we try and use CO2 as the currency - kilograms or tons of CO2. So carbon footprint is the total accumulated amount of CO2 in kilogram or tonnes that you are responsible for an individual. That’s your personal carbon footprint,” Gelber explains.
Another must-know jargon is carbon-neutral. Carbon-neutral means that no carbon dioxide is emitted into the atmosphere or strategies are employed to absorb the carbon dioxide. According to REHDA’s Green Solutions Conference 2010 carbon consultant Bernard Sagaiyaraj, the event would have emitted about 50 tons of CO2e (Carbon Dioxide equivalent), if it wasn’t carbon-neutral. “Carbon-impact reduction strategies can range from reducing the number of event participants and getting them to join the conference via some form of videoconferencing. Another strategy would be to remove beef, lamb and dairy products from the menu and another strategy could be the increase in room temperature by a few degrees and request participants to dress lightly,” says Sagaiyaraj.
Prime Minister announced that Malaysia has agreed to reduce its CO2 emissions by up to 40% by year 2020.
The number 40 At the moment, the number 40 seems to be attached to a few ‘green statistics. During the recent United Nations Climate Change Conference 2009 (COP 15) at Copenhagen, Prime Minister Datuk Seri Najib Tun Razak announced that Malaysia has agreed to reduce its carbon dioxide emissions by up to 40 percent by year 2020 compared with 2005 levels.
According to co-founder of Maleki GmbH and Greenest Person on the Planet 2008 award winner Matthias Gelber, about up to 40 percent of energy consumption, 40 percent of CO2 (carbon dioxide) emission and up to 40 percent of solid waste are directly or indirectly related to our Malaysian property industry, which means that the industry will be instrumental towards positive change.
Limit use of non-renewable resources As clichéd as it sounds, less is indeed more when it comes to mitigating climate change. Many people are switching from plastic bags to more environmental-friendly types of bags. That’s one positive step, but the one thing that interviews with the REHDA’s Green Solutions Conference speakers and leaders have revealed is the importance of reducing the usage of non-renewable sources of energy such as coal, petroleum and natural gas (also known as fossil fuels) as the burning of these resources is one of the main contributors to climate change. Non-renewable resources refer to natural resources that cannot be regenerated or reused, while renewable energy can be derived from replenishable resources such as solar, hydro, wave, wind and geothermal heat.
Currently, electricity generation in Malaysia is still largely dependent on fossil fuels. They account for around 85 percent of total electricity generation in the country, while renewable resources make up only approximately one percent.
Tan: We need to make the transition fast whilst we still have the energy resources such as oil and gas..."
According to renewable energy advisor to the Energy, Green Technology and Water Ministry Ahmad Hadri Haris, the target is to increase the usage of renewable energy to at least nine percent of total electricity generation in Malaysia by 2020.
Chairman of Malaysian Institute of Architects (PAM) sustainability committee Ar Dr Tan Loke Mun explains how the property sector can do its part. “We need to make the transition fast whilst we still have energy resources such as oil and gas, and before the window of opportunity closes on us. Population growth and urban development continues. So it is imperative for developers to start to think about how the end-users are going to enjoy, sustain, maintain and thrive in an era of higher costs,” says Tan.
Gelber echoes Tan’s views as he said that Malaysians are having it easy as energy rates are subsidised by the Government. “The challenge now is how the Malaysian Government can increase the rates but minimise the problems on the social impact. Surprisingly, the most energy efficient countries in the world are the ones who are the biggest energy consumers,” Gelber said after delivering a talk at a conference in Penang in March.
Incentives The Government has introduced the Green Building tax incentive in last year’s budget, whereby tax exemption is given on the incremental costs incurred on buildings which obtain Green Building Index (GBI) certificate.
PricewaterhouseCoopers Taxation Services Sdn Bhd (PwC) senior executive director Margaret Lee shares, “Currently, there are no tax incentives given to the general public on purchase of energy-efficient assets. The Government can encourage households to purchase energy-saving devices such as solar panels, by granting incentives in the form of personal relief to them.”
Think long term Building new green homes or ‘greening’ existing homes might cost quite a bit more, but we have to bear in mind the long-term savings. In a recent interview with inventor of bioclimatic skyscrapers and principal of award-winning architect firm T. R. Hamzah and Yeang, Datuk Ken Yeang said that his Solaris project in Singapore is a Green Mark Platinum building. In the Solaris building, Yeang said that the energy and water savings is SGD700,000 a year.
Pomeroy: "Going green isn't a short term thing, and needs to be considered long term to maximise social, economic and environmental benefits."
Green Mark was launched by Singapore’s Building and Construction Authority (BCA). It is a green building rating system to evaluate a building for its environmental impact and performance. Malaysia’s equivalent would be the Green Building Index (GBI).
Another notable individual who is also an advocate of sustainable building design is award-winning Singapore-based architect Jason Pomeroy. He is a director at Broadway Malyan Singapore and will be speaking at the REHDA Green Solutions Conference 2010. Pomeroy is the consultant for the Sime Darby Idea House which is located within Sime Darby’s Denai Alam township in Shah Alam. The house is set to be the first carbon-neutral residence in Southeast Asia.
Pomeroy truly believes in the benefits of going green. He says, “Going green isn't a short term thing, and needs to be considered long term to maximise the social, economic and environmental benefits. Just as one does not invest in a stock with the view to immediate selling the next day, so too should we be considering sustainability for the long term. If we don't, the economic and environmental consequences will be catastrophic for our children.”
A sustainable future Going green is no longer an option. Safe to say, it is an eventual must. As resources deplete (or are unnecessarily wasted), electricity and water costs will increase. When homes and buildings require more energy for cooling and lighting, more resources will be used. Hence, the importance of taking into consideration a building or home’s orientation, its design and material used to build it.
Change the climate, save the future
Environmental crises are all around us. We are already experiencing and seeing the changes. Global warming, hazardous waste, air pollution and resource depletion are just a few of the many mounting worries.
According to Natural Resources and Environment Minister Datuk Seri Douglas Unggah Embas, Malaysia's average temperature has risen by 1.1 degree Celsius in the past 50 years, consistent with the warming of global temperature. This resulted in changes in the rainfall patterns, causing more floods. The latest finding also showed that the sea level was also on the increase, at the rate of 1.25mm a year.
Greenest Person on the Planet, Matthias Gelber
Oh, carbon! Global warming is due to the continuous rise of greenhouse gas emissions such as carbon dioxide into the earth's atmosphere. Many green-related jargons have been associated with this word - carbon. One of the most used terms is arguably carbon footprint, which is directly linked to each and every one of us.
Co-founder of Maleki GmbH and Greenest Person on the Planet 2008 award winner Matthias Gelber explains,“Carbon footprint is translating all of our activities that have an environmental impact into a total figure equivalent to the amount of CO2 (carbon dioxide) that we are responsible for. When you switch on the kettle in the morning to get hot water, you consume electricity. That electricity shows up on your monthly meter. The electricity in kilowatt hours. So we are trying to get a gauge of our own responsibility as an individual about how much carbon dioxide equivalent one emits. When you burn fuel in your car, that generates CO2 emissions and other emissions. And we try and calculate from all of that the equivalent amount of carbon dioxide emission, so that we have one currency.
“When we talk about money, we talk in Ringgit. When we talk about environmental impact and global warming, we try and use CO2 as the currency - kilograms or tons of CO2. So carbon footprint is the total accumulated amount of CO2 in kilogram or tonnes that you are responsible for an individual. That’s your personal carbon footprint,” Gelber explains.
Another must-know jargon is carbon-neutral. Carbon-neutral means that no carbon dioxide is emitted into the atmosphere or strategies are employed to absorb the carbon dioxide. According to REHDA’s Green Solutions Conference 2010 carbon consultant Bernard Sagaiyaraj, the event would have emitted about 50 tons of CO2e (Carbon Dioxide equivalent), if it wasn’t carbon-neutral. “Carbon-impact reduction strategies can range from reducing the number of event participants and getting them to join the conference via some form of videoconferencing. Another strategy would be to remove beef, lamb and dairy products from the menu and another strategy could be the increase in room temperature by a few degrees and request participants to dress lightly,” says Sagaiyaraj.
Prime Minister announced that Malaysia has agreed to reduce its CO2 emissions by up to 40% by year 2020.
The number 40 At the moment, the number 40 seems to be attached to a few ‘green statistics. During the recent United Nations Climate Change Conference 2009 (COP 15) at Copenhagen, Prime Minister Datuk Seri Najib Tun Razak announced that Malaysia has agreed to reduce its carbon dioxide emissions by up to 40 percent by year 2020 compared with 2005 levels.
According to co-founder of Maleki GmbH and Greenest Person on the Planet 2008 award winner Matthias Gelber, about up to 40 percent of energy consumption, 40 percent of CO2 (carbon dioxide) emission and up to 40 percent of solid waste are directly or indirectly related to our Malaysian property industry, which means that the industry will be instrumental towards positive change.
Limit use of non-renewable resources As clichéd as it sounds, less is indeed more when it comes to mitigating climate change. Many people are switching from plastic bags to more environmental-friendly types of bags. That’s one positive step, but the one thing that interviews with the REHDA’s Green Solutions Conference speakers and leaders have revealed is the importance of reducing the usage of non-renewable sources of energy such as coal, petroleum and natural gas (also known as fossil fuels) as the burning of these resources is one of the main contributors to climate change. Non-renewable resources refer to natural resources that cannot be regenerated or reused, while renewable energy can be derived from replenishable resources such as solar, hydro, wave, wind and geothermal heat.
Currently, electricity generation in Malaysia is still largely dependent on fossil fuels. They account for around 85 percent of total electricity generation in the country, while renewable resources make up only approximately one percent.
Tan: We need to make the transition fast whilst we still have the energy resources such as oil and gas..."
According to renewable energy advisor to the Energy, Green Technology and Water Ministry Ahmad Hadri Haris, the target is to increase the usage of renewable energy to at least nine percent of total electricity generation in Malaysia by 2020.
Chairman of Malaysian Institute of Architects (PAM) sustainability committee Ar Dr Tan Loke Mun explains how the property sector can do its part. “We need to make the transition fast whilst we still have energy resources such as oil and gas, and before the window of opportunity closes on us. Population growth and urban development continues. So it is imperative for developers to start to think about how the end-users are going to enjoy, sustain, maintain and thrive in an era of higher costs,” says Tan.
Gelber echoes Tan’s views as he said that Malaysians are having it easy as energy rates are subsidised by the Government. “The challenge now is how the Malaysian Government can increase the rates but minimise the problems on the social impact. Surprisingly, the most energy efficient countries in the world are the ones who are the biggest energy consumers,” Gelber said after delivering a talk at a conference in Penang in March.
Incentives The Government has introduced the Green Building tax incentive in last year’s budget, whereby tax exemption is given on the incremental costs incurred on buildings which obtain Green Building Index (GBI) certificate.
PricewaterhouseCoopers Taxation Services Sdn Bhd (PwC) senior executive director Margaret Lee shares, “Currently, there are no tax incentives given to the general public on purchase of energy-efficient assets. The Government can encourage households to purchase energy-saving devices such as solar panels, by granting incentives in the form of personal relief to them.”
Think long term Building new green homes or ‘greening’ existing homes might cost quite a bit more, but we have to bear in mind the long-term savings. In a recent interview with inventor of bioclimatic skyscrapers and principal of award-winning architect firm T. R. Hamzah and Yeang, Datuk Ken Yeang said that his Solaris project in Singapore is a Green Mark Platinum building. In the Solaris building, Yeang said that the energy and water savings is SGD700,000 a year.
Pomeroy: "Going green isn't a short term thing, and needs to be considered long term to maximise social, economic and environmental benefits."
Green Mark was launched by Singapore’s Building and Construction Authority (BCA). It is a green building rating system to evaluate a building for its environmental impact and performance. Malaysia’s equivalent would be the Green Building Index (GBI).
Another notable individual who is also an advocate of sustainable building design is award-winning Singapore-based architect Jason Pomeroy. He is a director at Broadway Malyan Singapore and will be speaking at the REHDA Green Solutions Conference 2010. Pomeroy is the consultant for the Sime Darby Idea House which is located within Sime Darby’s Denai Alam township in Shah Alam. The house is set to be the first carbon-neutral residence in Southeast Asia.
Pomeroy truly believes in the benefits of going green. He says, “Going green isn't a short term thing, and needs to be considered long term to maximise the social, economic and environmental benefits. Just as one does not invest in a stock with the view to immediate selling the next day, so too should we be considering sustainability for the long term. If we don't, the economic and environmental consequences will be catastrophic for our children.”
A sustainable future Going green is no longer an option. Safe to say, it is an eventual must. As resources deplete (or are unnecessarily wasted), electricity and water costs will increase. When homes and buildings require more energy for cooling and lighting, more resources will be used. Hence, the importance of taking into consideration a building or home’s orientation, its design and material used to build it.
Malaysia aims for 40% reduction in carbon emissions by year 2020
Malaysia is adopting a voluntary national reduction indicator of up to 40% in terms of GDP emission intensity by 2020 compared with 2005 levels. Addressing the United Nations Climate Change Conference 2009 (COP 15) in December last year, Prime Minister Datuk Seri Najib Tun Razak said Malaysia was committed to doing its best to combat climate change.“The key to our future co-operation is to recognise, adopt and work out the realisation of the principle of fair shares to the atmospheric space and resource. At the same time, we must have ambitious environmental aspirations,” he said, noting that combining these two factors would ensure the summit's success.
Malaysia aims for 40% reduction in carbon emissions by year 2020
Malaysia is adopting a voluntary national reduction indicator of up to 40% in terms of GDP emission intensity by 2020 compared with 2005 levels. Addressing the United Nations Climate Change Conference 2009 (COP 15) in December last year, Prime Minister Datuk Seri Najib Tun Razak said Malaysia was committed to doing its best to combat climate change.“The key to our future co-operation is to recognise, adopt and work out the realisation of the principle of fair shares to the atmospheric space and resource. At the same time, we must have ambitious environmental aspirations,” he said, noting that combining these two factors would ensure the summit's success.
Wise home improvements
By EUGENE MAHALINGAM nelson@thestar.com.my
RENOVATING your home is often an aesthetic choice, but if done right, it can enhance both the abode's rental worth as well as its resale value.
Whether it's something minor (such as changing the faucet on your kitchen sink) or a major reconstruction (like adding a new floor to your home), some renovations will help recoup your returns near instantly, while others might be nothing more than an investment disaster.
Know what you want
Before getting started, it's important to decide whether the house you intend to renovate is for keeps.
“If you don't intend to sell or rent, than you're limited only by your imagination,” says KL Interior Design executive designer Robert Lee. “For the investor who's looking to rent or re-sell some day, he should realise that some renovations, though appealing to him, may end up making the house less marketable to a potential buyer or tenant,” he says.
Lee recalls a client many years ago who insisted on having nearly everything in one of the rooms in pink. “It was for his daughter. He wanted pink drapes, a pink carpet, wall, door, everything. Many years later, his daughter moved out of the home and they were looking to rent out the room but had problems finding a tenant.”
Making upgrades or changes to your home can be a costly affair. According to Lee, renovations can cost more and take longer to complete than initially envisaged.
“A lot of people that decide to renovate their home are often taken aback by how much it actually costs. When this happens, they go for relatively unknown contractors who, though cost less, tend to cut corners and give you a cheaper but less durable product,” he says.
Lee recalls a neighbour who wanted to install a new kitchen cabinet and sink but was “not willing to pay beyond a certain amount.”
“She paid RM1,500 but after only three years, the sink was shaking in its place, water was seeping into the cabinet and the wood started rotting. She ended up paying RM3,000 for a new cabinet, which, after five years, is still going strong.
“It's better to fork out a little more for something that lasts a long time. My neighbour could have just paid RM3,000 initially for a good job but because she was thrifty, she ended up paying RM4,500.”
Lee says people who want to renovate their home but are worried about the costs should do thorough research and find the best price.
Home improvements do not have to be expensive to look good and marketable. Home-Deco Art Sdn Bhd director Rachel Tam says the key to efficient spending is to spend wisely.
“The kitchen paint might be peeling but that doesn't mean you have to spend RM20,000 just to make it look good. All it may need is a fresh coat of paint and perhaps some of the appliances may need renewing,” she says.
Tam says that those looking to sell their homes should “know their limits” when it comes to making renovations.
“If you're living in a mid-to-high-end neighbourhood and plan to sell your home, it's best to limit renovations to a certain level,” she says.
“It's pointless to spend RM500,000 on renovations when the market rate for the average home within the area is just RM250,000. You're not going to make your money back when you sell.”
Lee gives an example of a client who installed a swimming pool in the yard of his home, which was located in a mid-income neighbourhood. “This guy was living in a corner single-storey terrace house. With the added space he had, he had a pool built. But when he wanted to sell the house, he had difficulties because nobody wanted to pay more for something which would require added maintenance,” he says.
For those looking to rent, knowing the type of tenant you are targeting is important too. Some tenants are only willing to pay so much.
Says Lee: “If you're living near a college or university and are targeting students as tenants, don't expect them to pay for the high-horsepower air-conditioning you installed in the room you are letting. This might be more appropriate if you are renting out to someone who's working.”
Renovations that pay
Freelance real-estate agent cum property investor Kamarul Ariff reckons that renovations made to the kitchen and bathroom are great ways to enhance the resale value of a property.
“Nowadays, people are finding more ways to beautify their kitchens and bathrooms. It's also what a lot of people look at first before buying a home.”
Ariff says renovation works can range from upgrading appliances, changing the flooring or a total make-over.
“Compared to renovating the living area or a master bedroom, the kitchen or bathroom is generally smaller and tend to cost lesser - making it easier and faster to recoup your cost,” he says.
He also says building a new room or an extension, though costly, can provide good, long-term returns. “It costs a lot but then you'll be able to rent it out. You'll be recover your money in no time,” he says.
RENOVATING your home is often an aesthetic choice, but if done right, it can enhance both the abode's rental worth as well as its resale value.
Whether it's something minor (such as changing the faucet on your kitchen sink) or a major reconstruction (like adding a new floor to your home), some renovations will help recoup your returns near instantly, while others might be nothing more than an investment disaster.
Know what you want
Before getting started, it's important to decide whether the house you intend to renovate is for keeps.
“If you don't intend to sell or rent, than you're limited only by your imagination,” says KL Interior Design executive designer Robert Lee. “For the investor who's looking to rent or re-sell some day, he should realise that some renovations, though appealing to him, may end up making the house less marketable to a potential buyer or tenant,” he says.
Lee recalls a client many years ago who insisted on having nearly everything in one of the rooms in pink. “It was for his daughter. He wanted pink drapes, a pink carpet, wall, door, everything. Many years later, his daughter moved out of the home and they were looking to rent out the room but had problems finding a tenant.”
Making upgrades or changes to your home can be a costly affair. According to Lee, renovations can cost more and take longer to complete than initially envisaged.
“A lot of people that decide to renovate their home are often taken aback by how much it actually costs. When this happens, they go for relatively unknown contractors who, though cost less, tend to cut corners and give you a cheaper but less durable product,” he says.
Lee recalls a neighbour who wanted to install a new kitchen cabinet and sink but was “not willing to pay beyond a certain amount.”
“She paid RM1,500 but after only three years, the sink was shaking in its place, water was seeping into the cabinet and the wood started rotting. She ended up paying RM3,000 for a new cabinet, which, after five years, is still going strong.
“It's better to fork out a little more for something that lasts a long time. My neighbour could have just paid RM3,000 initially for a good job but because she was thrifty, she ended up paying RM4,500.”
Lee says people who want to renovate their home but are worried about the costs should do thorough research and find the best price.
Home improvements do not have to be expensive to look good and marketable. Home-Deco Art Sdn Bhd director Rachel Tam says the key to efficient spending is to spend wisely.
“The kitchen paint might be peeling but that doesn't mean you have to spend RM20,000 just to make it look good. All it may need is a fresh coat of paint and perhaps some of the appliances may need renewing,” she says.
Tam says that those looking to sell their homes should “know their limits” when it comes to making renovations.
“If you're living in a mid-to-high-end neighbourhood and plan to sell your home, it's best to limit renovations to a certain level,” she says.
“It's pointless to spend RM500,000 on renovations when the market rate for the average home within the area is just RM250,000. You're not going to make your money back when you sell.”
Lee gives an example of a client who installed a swimming pool in the yard of his home, which was located in a mid-income neighbourhood. “This guy was living in a corner single-storey terrace house. With the added space he had, he had a pool built. But when he wanted to sell the house, he had difficulties because nobody wanted to pay more for something which would require added maintenance,” he says.
For those looking to rent, knowing the type of tenant you are targeting is important too. Some tenants are only willing to pay so much.
Says Lee: “If you're living near a college or university and are targeting students as tenants, don't expect them to pay for the high-horsepower air-conditioning you installed in the room you are letting. This might be more appropriate if you are renting out to someone who's working.”
Renovations that pay
Freelance real-estate agent cum property investor Kamarul Ariff reckons that renovations made to the kitchen and bathroom are great ways to enhance the resale value of a property.
“Nowadays, people are finding more ways to beautify their kitchens and bathrooms. It's also what a lot of people look at first before buying a home.”
Ariff says renovation works can range from upgrading appliances, changing the flooring or a total make-over.
“Compared to renovating the living area or a master bedroom, the kitchen or bathroom is generally smaller and tend to cost lesser - making it easier and faster to recoup your cost,” he says.
He also says building a new room or an extension, though costly, can provide good, long-term returns. “It costs a lot but then you'll be able to rent it out. You'll be recover your money in no time,” he says.
I-Bhd expects to draw 80 more firms to i-City
By EDY SARIF edy@thestar.com.my
SHAH ALAM: I-Bhd expects 80 more knowledge-based companies to set up offices at i-City, Shah Alam, by the year-end, said chief executive officer Eu Hong Chew.
“They will consist of local and international companies and will add up the more than 60 companies currently operating at the city,” he said after signing a heads of agreement yesterday.
He added that I-Bhd had so far invested RM200mil to RM300mil to develop the smart city since 2005.
The heads of agreement will see the company forming a tie-up with the Malaysian-Russian Business Association and Hexagon Solutions Sdn Bhd to set up a joint centre of innovation in i-City.
The Malaysian-Russian Science Centre will develop, showcase and commercialise technologies from Russia while Hexagon will establish a research and development (R&D) centre with its Indian partner Rajesh Global Solutions.
The centre, which will take up 15,000 to 20,000 sq ft of office space in i-City, will also work with local and foreign universities, research institutions and government agencies.
Malaysia-Russian Business Association president Ruslan Israpil said the agreement would lead to greater collaboration between two countries.
“It will be a win-win situation as we are providing expertise to help local scientists and universities through the R&D of Russian technology while the locals will benefit by getting our knowledge,” he said.
SHAH ALAM: I-Bhd expects 80 more knowledge-based companies to set up offices at i-City, Shah Alam, by the year-end, said chief executive officer Eu Hong Chew.
“They will consist of local and international companies and will add up the more than 60 companies currently operating at the city,” he said after signing a heads of agreement yesterday.
He added that I-Bhd had so far invested RM200mil to RM300mil to develop the smart city since 2005.
The heads of agreement will see the company forming a tie-up with the Malaysian-Russian Business Association and Hexagon Solutions Sdn Bhd to set up a joint centre of innovation in i-City.
The Malaysian-Russian Science Centre will develop, showcase and commercialise technologies from Russia while Hexagon will establish a research and development (R&D) centre with its Indian partner Rajesh Global Solutions.
The centre, which will take up 15,000 to 20,000 sq ft of office space in i-City, will also work with local and foreign universities, research institutions and government agencies.
Malaysia-Russian Business Association president Ruslan Israpil said the agreement would lead to greater collaboration between two countries.
“It will be a win-win situation as we are providing expertise to help local scientists and universities through the R&D of Russian technology while the locals will benefit by getting our knowledge,” he said.
Tuesday, May 4, 2010
Sime’s Bakun losses balloon to RM1.7bil
By RISEN JAYASEELAN risen@thestar.com.my
PETALING JAYA: Sime Darby has incurred around more than RM1bil in total cost overruns from carrying out the civil works contract for the Bakun hydro-electric project, sources said.
One estimate puts the total cost overrun figure in the region of a whopping RM1.7bil, almost the same size as the Sime Darby’s actual Bakun contract of RM1.8bil that it had secured back in 2002.
When contacted, Sime Darby did not deny or confirm this.
In an emailed reply, the company merely said that it had made provisions to the tune of RM130mil for its share of the cost overruns in the Bakun project.
The discovery of the more than RM1bil cost overrun in the Bakun project is believed to be among the findings of the special taskforce within the group that was set up late last year to probe losses in its energy and utilities division.
The taskforce is also looking into the reasons for the cost overruns and whether there were lapses in internal audit and whether other improprieties occurred.
It is understood the Government has agreed to reimburse Sime Darby for around RM700mil, leaving Sime Darby with around RM1bil to be dealt with, by some estimates.
Sime Darby’s energy and utilities division recorded an operating loss of RM110mil in the second half of its financial year ended Dec 31, 2009, compared with a profit of RM56.3mil previously. But within this division, its oil and gas and engineering divisions’ losses alone totalled RM201mil.
However, Sime Darby said this loss was due to overruns from another project, namely its RM2.1bil Maersk Oil Qatar (MOQ) project.
“Sime Darby recognised a project loss for MOQ amounting to RM210mil (including the impact of foreign exchange losses). As a result, the oil and gas segment recorded losses of RM201mil in 1HFY2010,” it said in the email to StarBiz.
Assuming the cost overruns have taken place in the Bakun project, the group will still need to deal with a significant amount of provisioning or expensing, which could seriously dent its profits for FY2010.
When asked if Sime Darby will be providing or expensing any amounts this year arising from the Bakun project, Sime Darby said: “As part of its disclosure obligations, Sime Darby regularly reviews its portfolio of projects and if required, makes provisions in accordance with the Group’s accounting policies.”
Assisting the taskforce in its findings were specialists from external accounting, legal and engineering firms, sources said.
To recap, Sime Engineering, a unit of Sime Darby, was awarded the civil works for the Bakun project in September 2002 at a fixed lump-sum price of RM1.8bil. It has been reported that Sarawak Hidro Sdn Bhd has approved a variation order for RM700mil for the Bakun project. Sime Darby did not confirm or deny this.
“As with all such construction projects of this nature, we have received periodic payments and agreed claims from the Government. In the past, some cost overruns were incurred due to increase in material costs and variations in design but these have been dealt with,” Sime Darby said in the email reply.
Sarawak Hidro is a wholly-owned subsidiary of the Ministry of Finance Inc Malaysia and entrusted to develop and manage the Bakun project since May 2000.
Sime Darby had yet to reply to questions posed to it by StarBiz yesterday afternoon.
But in Sime Darby’s press statement when announcing its first-half results, president and group CEO Datuk Seri Ahmad Zubir Murshid said that there were issues with the energy and utilities division.
“We have faced several challenges with the oil and gas business unit especially with operational efficiency and project management. Nevertheless, with a new management team on board, measures have been taken to increase operational efficiency and improve our project management capabilities,” he had said.
A change in leadership at its energy and utilities division had taken place recently, following the resignation of Datuk Mohamad Shukri Baharom
Mohamad Shukri was replaced by Hisham Hamdan, who was previously the executive vice-president for group strategy and business development.
Sime Darby has also said it has been taking steps to prevent a repeat of the cost overruns, including reviewing and re-evaluating systems and processes in the division.
PETALING JAYA: Sime Darby has incurred around more than RM1bil in total cost overruns from carrying out the civil works contract for the Bakun hydro-electric project, sources said.
One estimate puts the total cost overrun figure in the region of a whopping RM1.7bil, almost the same size as the Sime Darby’s actual Bakun contract of RM1.8bil that it had secured back in 2002.
When contacted, Sime Darby did not deny or confirm this.
In an emailed reply, the company merely said that it had made provisions to the tune of RM130mil for its share of the cost overruns in the Bakun project.
The discovery of the more than RM1bil cost overrun in the Bakun project is believed to be among the findings of the special taskforce within the group that was set up late last year to probe losses in its energy and utilities division.
The taskforce is also looking into the reasons for the cost overruns and whether there were lapses in internal audit and whether other improprieties occurred.
It is understood the Government has agreed to reimburse Sime Darby for around RM700mil, leaving Sime Darby with around RM1bil to be dealt with, by some estimates.
Sime Darby’s energy and utilities division recorded an operating loss of RM110mil in the second half of its financial year ended Dec 31, 2009, compared with a profit of RM56.3mil previously. But within this division, its oil and gas and engineering divisions’ losses alone totalled RM201mil.
However, Sime Darby said this loss was due to overruns from another project, namely its RM2.1bil Maersk Oil Qatar (MOQ) project.
“Sime Darby recognised a project loss for MOQ amounting to RM210mil (including the impact of foreign exchange losses). As a result, the oil and gas segment recorded losses of RM201mil in 1HFY2010,” it said in the email to StarBiz.
Assuming the cost overruns have taken place in the Bakun project, the group will still need to deal with a significant amount of provisioning or expensing, which could seriously dent its profits for FY2010.
When asked if Sime Darby will be providing or expensing any amounts this year arising from the Bakun project, Sime Darby said: “As part of its disclosure obligations, Sime Darby regularly reviews its portfolio of projects and if required, makes provisions in accordance with the Group’s accounting policies.”
Assisting the taskforce in its findings were specialists from external accounting, legal and engineering firms, sources said.
To recap, Sime Engineering, a unit of Sime Darby, was awarded the civil works for the Bakun project in September 2002 at a fixed lump-sum price of RM1.8bil. It has been reported that Sarawak Hidro Sdn Bhd has approved a variation order for RM700mil for the Bakun project. Sime Darby did not confirm or deny this.
“As with all such construction projects of this nature, we have received periodic payments and agreed claims from the Government. In the past, some cost overruns were incurred due to increase in material costs and variations in design but these have been dealt with,” Sime Darby said in the email reply.
Sarawak Hidro is a wholly-owned subsidiary of the Ministry of Finance Inc Malaysia and entrusted to develop and manage the Bakun project since May 2000.
Sime Darby had yet to reply to questions posed to it by StarBiz yesterday afternoon.
But in Sime Darby’s press statement when announcing its first-half results, president and group CEO Datuk Seri Ahmad Zubir Murshid said that there were issues with the energy and utilities division.
“We have faced several challenges with the oil and gas business unit especially with operational efficiency and project management. Nevertheless, with a new management team on board, measures have been taken to increase operational efficiency and improve our project management capabilities,” he had said.
A change in leadership at its energy and utilities division had taken place recently, following the resignation of Datuk Mohamad Shukri Baharom
Mohamad Shukri was replaced by Hisham Hamdan, who was previously the executive vice-president for group strategy and business development.
Sime Darby has also said it has been taking steps to prevent a repeat of the cost overruns, including reviewing and re-evaluating systems and processes in the division.
Sunday, May 2, 2010
Should house buyers be wary?
By FINTAN NG fintan@thestar.com.my
Should house buyers be wary of rising property prices? Anecdotal evidence seem to point to significant price increases in the Klang Valley and Penang although the National Property Information Centre report for 2009, which was released on April 23, noted that residential property prices remained stable for the year.
The all-house price index, which is a gauge of national prices, saw a gain of only 1.5%.
ECM Libra Capital Sdn Bhd research head Bernard Ching says in a report dated April 26 that the gain is “the lowest annual gain since 2001.”
Several property consultants say the recent price rise in properties in select locations reflect pent-up demand after the market slump in the first half of last year.
They also say that the Malaysian residential property market sentiments are, while not immune to global economic factors and price movements, largely driven by house buyers here.
It was recently reported that the uptrend in property prices was driven by easy financing schemes offered by banks in partnership with developers and that this had led to some speculation in the market.
However, the consultants feel that any increase in property prices will still be selective and overall prices will not rise drastically but gradually.
CB Richard Ellis Sdn Bhd executive director Paul Khong says there have been some price increase but only for landed residential properties and in selected locations.
“Over the past one year, residential landed property prices have gone up 15% to 20% in good locations in and around Kuala Lumpur and Petaling Jaya,” he says.
Paul Khong says prices for the luxury condominium sub-segment of the residential property market, are still between 10% and 20% below the market’s peak.
Khong says prices for the luxury condominium sub-segment of the residential property market, are still between 10% and 20% below the market’s peak.
This sub-segment has been badly hit by the financial crisis as a considerable portion of sales are to foreigners. The number of foreign property buyers have dropped since early last year.
Khong feels that fewer launches and higher demand will affect the prices of landed residential properties.
Dr Teoh Poh Huat says the recent property price increases reflect the different economic fundamentals at play compared to a year ago.
Ching says property launches have been moderate after bottoming out in the first quarter of 2009. This trend was in line with on-the-ground observation of developers preferring to launch in smaller parcels.
“We expect moderate growth in property launches to continue in 2010. This is supported by declining building plan approval,” he says.
Ching says the last quarter of 2009 was a record quarter for both the residential and commercial segments of the property market despite the uninspiring set of numbers for the year as a whole.
He says in 2009, the residential segment recorded a marginal improvement in overall transaction value of 1.3% to RM41.8bil while the commercial segment contracted marginally by 1.4% to RM16.4bil.
Henry Butcher Malaysia (Penang) Sdn Bhd director Dr Teoh Poh Huat says the recent property price increases reflect the different economic fundamentals at play compared to a year ago.
He says the property market is driven by the sentiments of Malaysian buyers although these buyers may take into consideration factors at the macro or global levels. “But these factors are short-term whereas investing in property is long-term,” Teoh says.
He says the significant increase in transactions for the first quarter of this year is a reflection of these sentiments following an unexpected expansion of the economy in the final quarter of 2009.
“Confidence in the economy is quite strong. There is liquidity due to pump-priming measures as well as the high savings rate in the country. This is reflected in the transactions,” Teoh says.
Should house buyers be wary of rising property prices? Anecdotal evidence seem to point to significant price increases in the Klang Valley and Penang although the National Property Information Centre report for 2009, which was released on April 23, noted that residential property prices remained stable for the year.
The all-house price index, which is a gauge of national prices, saw a gain of only 1.5%.
ECM Libra Capital Sdn Bhd research head Bernard Ching says in a report dated April 26 that the gain is “the lowest annual gain since 2001.”
Several property consultants say the recent price rise in properties in select locations reflect pent-up demand after the market slump in the first half of last year.
They also say that the Malaysian residential property market sentiments are, while not immune to global economic factors and price movements, largely driven by house buyers here.
It was recently reported that the uptrend in property prices was driven by easy financing schemes offered by banks in partnership with developers and that this had led to some speculation in the market.
However, the consultants feel that any increase in property prices will still be selective and overall prices will not rise drastically but gradually.
CB Richard Ellis Sdn Bhd executive director Paul Khong says there have been some price increase but only for landed residential properties and in selected locations.
“Over the past one year, residential landed property prices have gone up 15% to 20% in good locations in and around Kuala Lumpur and Petaling Jaya,” he says.
Paul Khong says prices for the luxury condominium sub-segment of the residential property market, are still between 10% and 20% below the market’s peak.
Khong says prices for the luxury condominium sub-segment of the residential property market, are still between 10% and 20% below the market’s peak.
This sub-segment has been badly hit by the financial crisis as a considerable portion of sales are to foreigners. The number of foreign property buyers have dropped since early last year.
Khong feels that fewer launches and higher demand will affect the prices of landed residential properties.
Dr Teoh Poh Huat says the recent property price increases reflect the different economic fundamentals at play compared to a year ago.
Ching says property launches have been moderate after bottoming out in the first quarter of 2009. This trend was in line with on-the-ground observation of developers preferring to launch in smaller parcels.
“We expect moderate growth in property launches to continue in 2010. This is supported by declining building plan approval,” he says.
Ching says the last quarter of 2009 was a record quarter for both the residential and commercial segments of the property market despite the uninspiring set of numbers for the year as a whole.
He says in 2009, the residential segment recorded a marginal improvement in overall transaction value of 1.3% to RM41.8bil while the commercial segment contracted marginally by 1.4% to RM16.4bil.
Henry Butcher Malaysia (Penang) Sdn Bhd director Dr Teoh Poh Huat says the recent property price increases reflect the different economic fundamentals at play compared to a year ago.
He says the property market is driven by the sentiments of Malaysian buyers although these buyers may take into consideration factors at the macro or global levels. “But these factors are short-term whereas investing in property is long-term,” Teoh says.
He says the significant increase in transactions for the first quarter of this year is a reflection of these sentiments following an unexpected expansion of the economy in the final quarter of 2009.
“Confidence in the economy is quite strong. There is liquidity due to pump-priming measures as well as the high savings rate in the country. This is reflected in the transactions,” Teoh says.
PKNS to set up company to carry out maintenance at low-cost flats
By CHOONG MEK ZHINmekzhin@thestar.com.my
THE many problems faced by low-cost flat residents in Selangor may be a thing of the past as the state government plans to set up a company to carry out the maintenance services at such places.
State housing, building management and squatters committee chairman Iskandar Abdul Samad said the company, which would most likely be set up under the Selangor State Development Corporation (PKNS), would handle all maintenance work at low-cost flats from June next year.
Iskandar, who spoke to reporters after attending a meeting at Angsana Hilir Flats in Ampang, said the state exco had made the decision during a meeting last week.
“This move will help ease the financial burden of the flat dwellers. Maintenance fees will not be so high because a single company requesting quotations for repairs and maintenance work for all the flats will surely get a cheaper price than individual quotations from the different flats,” he said.
He added that there were 78 blocks of low-cost flats in the state with Joint Management Bodies (JMB) who usually hired private companies to maintain their property.
“A lot of companies do not want to take on the job of maintaining low-cost flats because they know that the residents are unable to pay high maintenance fees which would make them run at a loss,” Iskandar said.
So far, there are a total of 250,000 strata units in Selangor and more than 70% of them are low-cost units that house about 1.2 million residents.
Iskandar also said PKNS had already begun elevator repairs and had fixed 41 elevators in Desa Mentari in Petaling Jaya, Permai Indah in Pandamaran and Taman Ampang Mewah in Ampang for RM1.66mil.
“Another seven more locations in dire need of elevator repairs have already been identified. The repair work will be carried out soon,” he added.
He also said it was the residents’ responsibility to fix broken down lifts, repainting common property, repairing shared water tanks and such via the sinking fund.
“There are two fees that are collected by the management body of a high-rise apartment, which are the maintenance fee and the sinking fund.
“The sinking fund is supposed to be used for major infrastructure repairs,” he said.
Iskandar said many failed to pay the maintenance fees thus the sinking fund was used for purposes other than major repairs.
“When a big problem comes around, there is not enough in the sinking fund to carry out maintenance. It is a common misconception that the big problems are the responsibility of the local authority or state government,” Iskandar said.
He said a loophole in the Building and Common Property (Maintenance and Management) Act 2007 was causing problems in collecting maintenance fees at low-cost flats.
“This is because most of the low-cost flat dwellers are only tenants and the Act does not provide a way to penalise those who do not pay the fees.
“Landlords also do not pay for it or fail to inform their tenants to pay the maintenance fees,” Iskandar said.
However, he said under the Strata Title Act 1985, action could be taken against not only owners but also the tenants who failed to pay the maintenance fees.
“I will be bringing this matter up at the next state exco meeting so that we can try to find a solution to this and see if there is a way to penalise tenants who fail to settle maintenance fees,” Iskandar said.
He said since last year, the state government had embarked on the My Beautiful, Happy and Harmonious Apartment programme to raise awareness and educate low-cost flat residents on their monthly maintenance fees.
“Flats with critical problems are given priority and we visit one location almost every week. After the programme is complete, we hope to be able to start taking action to fix the problems,” he added.
THE many problems faced by low-cost flat residents in Selangor may be a thing of the past as the state government plans to set up a company to carry out the maintenance services at such places.
State housing, building management and squatters committee chairman Iskandar Abdul Samad said the company, which would most likely be set up under the Selangor State Development Corporation (PKNS), would handle all maintenance work at low-cost flats from June next year.
Iskandar, who spoke to reporters after attending a meeting at Angsana Hilir Flats in Ampang, said the state exco had made the decision during a meeting last week.
“This move will help ease the financial burden of the flat dwellers. Maintenance fees will not be so high because a single company requesting quotations for repairs and maintenance work for all the flats will surely get a cheaper price than individual quotations from the different flats,” he said.
He added that there were 78 blocks of low-cost flats in the state with Joint Management Bodies (JMB) who usually hired private companies to maintain their property.
“A lot of companies do not want to take on the job of maintaining low-cost flats because they know that the residents are unable to pay high maintenance fees which would make them run at a loss,” Iskandar said.
So far, there are a total of 250,000 strata units in Selangor and more than 70% of them are low-cost units that house about 1.2 million residents.
Iskandar also said PKNS had already begun elevator repairs and had fixed 41 elevators in Desa Mentari in Petaling Jaya, Permai Indah in Pandamaran and Taman Ampang Mewah in Ampang for RM1.66mil.
“Another seven more locations in dire need of elevator repairs have already been identified. The repair work will be carried out soon,” he added.
He also said it was the residents’ responsibility to fix broken down lifts, repainting common property, repairing shared water tanks and such via the sinking fund.
“There are two fees that are collected by the management body of a high-rise apartment, which are the maintenance fee and the sinking fund.
“The sinking fund is supposed to be used for major infrastructure repairs,” he said.
Iskandar said many failed to pay the maintenance fees thus the sinking fund was used for purposes other than major repairs.
“When a big problem comes around, there is not enough in the sinking fund to carry out maintenance. It is a common misconception that the big problems are the responsibility of the local authority or state government,” Iskandar said.
He said a loophole in the Building and Common Property (Maintenance and Management) Act 2007 was causing problems in collecting maintenance fees at low-cost flats.
“This is because most of the low-cost flat dwellers are only tenants and the Act does not provide a way to penalise those who do not pay the fees.
“Landlords also do not pay for it or fail to inform their tenants to pay the maintenance fees,” Iskandar said.
However, he said under the Strata Title Act 1985, action could be taken against not only owners but also the tenants who failed to pay the maintenance fees.
“I will be bringing this matter up at the next state exco meeting so that we can try to find a solution to this and see if there is a way to penalise tenants who fail to settle maintenance fees,” Iskandar said.
He said since last year, the state government had embarked on the My Beautiful, Happy and Harmonious Apartment programme to raise awareness and educate low-cost flat residents on their monthly maintenance fees.
“Flats with critical problems are given priority and we visit one location almost every week. After the programme is complete, we hope to be able to start taking action to fix the problems,” he added.
Why being green is smart
By THEAN LEE CHENG and ELAINE ANG starbiz@thestar.com.my
AMSTERDAM-BASED international expert on corporate responsibility (CR) and sustainable development, Paul Hohnen, says before looking at the business case for “going green”, it is good to be clear on one thing.
That it is possible in most countries for a company to be breaching laws or codes of good environmental conduct and not see their stock price or market share fall. Whatever activists may want or believe, being “sustainable” or “green” is not essential when doing business. This may not be right, but it’s how things are at the moment.
“Let’s look at palm oil prices. They have not been impacted by criticisms about their links to deforestation. The same with oil prices, which have shown no concern about global warming. But concerns about the environment are changing the way business does business and will continue to do so. Take this week’s high profile advertising by Unilever (Financial Times, 22 April, 2010),” he ponts out.
Unilever, a major user of palm oil, has been cutting ties with suppliers that are associated with illegal deforestation and is now committed to double the amount of certified sustainable palm oil it uses.
Retailers such as Tesco, Metro and Wal-Mart are also actively setting higher environmental and human rights standards for their suppliers. “They are not doing this because it’s mandated. They’re doing it because they understand there is no future in being seen as unsustainable and because it makes good business sense now. They are creating a new business model where sustainability is being integrated into the product.
“Companies that aren’t green, or who can’t measure and report their impacts, risk losing out on global supply chain access,” says Hohnen.
“Going green is smart management,” says Hohnen.
By going green, a company achieves several things at the same time. First, it reduces the time wasted on brand management “fire fighting”. Think of all the time and money lost when some accident or incident attracts negative media coverage. In a world increasingly worried about the impacts of climate change, air pollution and environmental damage, companies with poor performance can expect to spend more time defending themselves to regulators, investors and the media. Consider Exxon, which is still dealing with the consequences of the Exxon Valdez oil spill.
Second, smarter use of raw materials and energy, and producing less waste, can lead to quick improvements at the bottom line. The motto “make more by using less” has been adopted successfully by big chemical companies like BASF, Bayer and Dow.
Third is the market share. For many specialists, “green industry” is seen as the next IT revolution in terms of market growth and opportunities. Some assessments show that the global market for green products and services is more than 500 billion euros a year and growing.
Many of the world’s biggest companies, like Siemens, Philips and GE, are busy positioning themselves for the “green industrial revolution”.
Last but not least there is innovation. Making things with less or making them in different ways provides companies with a stimulus to think through their business model. This stimulates technological competitiveness.
In turn, this appeals to young graduates, investors and regulators. In the energy sector, it’s been notable that most of the new energy innovations are coming from non-traditional players.
Manufacturers of solar panels and wind turbines have enjoyed some of the fastest growth rates in the sector, helped by subsidies and positive profile. Chinese companies have been quick to exploit the potential of innovation for growing new markets.
AMSTERDAM-BASED international expert on corporate responsibility (CR) and sustainable development, Paul Hohnen, says before looking at the business case for “going green”, it is good to be clear on one thing.
That it is possible in most countries for a company to be breaching laws or codes of good environmental conduct and not see their stock price or market share fall. Whatever activists may want or believe, being “sustainable” or “green” is not essential when doing business. This may not be right, but it’s how things are at the moment.
“Let’s look at palm oil prices. They have not been impacted by criticisms about their links to deforestation. The same with oil prices, which have shown no concern about global warming. But concerns about the environment are changing the way business does business and will continue to do so. Take this week’s high profile advertising by Unilever (Financial Times, 22 April, 2010),” he ponts out.
Unilever, a major user of palm oil, has been cutting ties with suppliers that are associated with illegal deforestation and is now committed to double the amount of certified sustainable palm oil it uses.
Retailers such as Tesco, Metro and Wal-Mart are also actively setting higher environmental and human rights standards for their suppliers. “They are not doing this because it’s mandated. They’re doing it because they understand there is no future in being seen as unsustainable and because it makes good business sense now. They are creating a new business model where sustainability is being integrated into the product.
“Companies that aren’t green, or who can’t measure and report their impacts, risk losing out on global supply chain access,” says Hohnen.
“Going green is smart management,” says Hohnen.
By going green, a company achieves several things at the same time. First, it reduces the time wasted on brand management “fire fighting”. Think of all the time and money lost when some accident or incident attracts negative media coverage. In a world increasingly worried about the impacts of climate change, air pollution and environmental damage, companies with poor performance can expect to spend more time defending themselves to regulators, investors and the media. Consider Exxon, which is still dealing with the consequences of the Exxon Valdez oil spill.
Second, smarter use of raw materials and energy, and producing less waste, can lead to quick improvements at the bottom line. The motto “make more by using less” has been adopted successfully by big chemical companies like BASF, Bayer and Dow.
Third is the market share. For many specialists, “green industry” is seen as the next IT revolution in terms of market growth and opportunities. Some assessments show that the global market for green products and services is more than 500 billion euros a year and growing.
Many of the world’s biggest companies, like Siemens, Philips and GE, are busy positioning themselves for the “green industrial revolution”.
Last but not least there is innovation. Making things with less or making them in different ways provides companies with a stimulus to think through their business model. This stimulates technological competitiveness.
In turn, this appeals to young graduates, investors and regulators. In the energy sector, it’s been notable that most of the new energy innovations are coming from non-traditional players.
Manufacturers of solar panels and wind turbines have enjoyed some of the fastest growth rates in the sector, helped by subsidies and positive profile. Chinese companies have been quick to exploit the potential of innovation for growing new markets.
New-age builders
THERE are some loud proponents for green in the corporate world. Most of them are young, had their education overseas, grew on the green culture and have an opinion. Below are some comments:
Ruth Yeoh, director of investments at YTL group
“Through my father Tan Sri Francis Yeoh, I learned the importance of protecting the environment even in business ventures. My father has taken me on a lot of his business trips, and when he built his first island resort on Pangkor Laut, he built it in a sustainable way.
“I remember planting seedlings and shrubs near the beach of Pangkor Laut with my father, before the island became the world class destination it is today. Three-quarters of the island’s rainforests remain preserved till this day.
“Later, as a Built Environment student, I remember how a self-powering sustainable home was built on the premises of the campus where I studied. I was very impressed that with the advancement of green technology, we can maintain development while preserving the Earth’s limited resources. Little things make a difference and these inspirations of sustainability have stayed with me until today.”
Sam Tan, executive director of Ken Holdings Bhd
“We forget where we come from and how our ancestors used to live. We cannot lose sight of where we are heading. It is not fair to tell people to go backwards. We can only move forward. With global warming, as a developer and builder, the responsibility falls on us to build in a sustainable way.
“My father started this business 30 years ago. We are not just developers, we are also builders. We do not leave it to architects to just give us pretty pictures. When he started the business, my mother worked with him. Holidays used to be visiting the work sites and those trips have influence me in no small way in my work today. Our objective is to reduce waste and this we have done with Ken Bangsar.”
Serina Hijjas, Hijjas Kasturi Associates Sdn director and a proponent of Malaysia’s Green Building Index
“I’m raised on the green culture. It is something that is very much a part of me. Much of being green has to do with reducing consumption in any form. The more urban we are, the more we consume. We need to reduce electricity consumption by 30% to 50%.
“On a wider scope, (green business) is where the biggest market is going to be.”
Ruth Yeoh, director of investments at YTL group
“Through my father Tan Sri Francis Yeoh, I learned the importance of protecting the environment even in business ventures. My father has taken me on a lot of his business trips, and when he built his first island resort on Pangkor Laut, he built it in a sustainable way.
“I remember planting seedlings and shrubs near the beach of Pangkor Laut with my father, before the island became the world class destination it is today. Three-quarters of the island’s rainforests remain preserved till this day.
“Later, as a Built Environment student, I remember how a self-powering sustainable home was built on the premises of the campus where I studied. I was very impressed that with the advancement of green technology, we can maintain development while preserving the Earth’s limited resources. Little things make a difference and these inspirations of sustainability have stayed with me until today.”
Sam Tan, executive director of Ken Holdings Bhd
“We forget where we come from and how our ancestors used to live. We cannot lose sight of where we are heading. It is not fair to tell people to go backwards. We can only move forward. With global warming, as a developer and builder, the responsibility falls on us to build in a sustainable way.
“My father started this business 30 years ago. We are not just developers, we are also builders. We do not leave it to architects to just give us pretty pictures. When he started the business, my mother worked with him. Holidays used to be visiting the work sites and those trips have influence me in no small way in my work today. Our objective is to reduce waste and this we have done with Ken Bangsar.”
Serina Hijjas, Hijjas Kasturi Associates Sdn director and a proponent of Malaysia’s Green Building Index
“I’m raised on the green culture. It is something that is very much a part of me. Much of being green has to do with reducing consumption in any form. The more urban we are, the more we consume. We need to reduce electricity consumption by 30% to 50%.
“On a wider scope, (green business) is where the biggest market is going to be.”
SunCity, SSTEC to develop Tianjin project
By ANGIE NG angie@thestar.com.my
PETALING JAYA: Sunway City Bhd (SunCity) has inked a collaboration agreement with Sino-Singapore Tianjin Eco-City Investment and Development Co Ltd (SSTEC) for a RM5bil eco-themed project in Tianjin Binhai New Area in China.
The integrated development on 110 acres within the 30 sq km Tianjin Eco-City will be a 60:40 joint venture between SunCity and SSTEC.
SSTEC, a 50:50 joint venture between a Chinese consortium led by Tianjin TEDA Investment Holding Co Ltd and a Singapore consortium led by the Keppel Group, is the master developer of the eco-city.
Signing on behalf of SunCity yesterday was international property development division managing director Ngian Siew Siong while SSTEC was represented by chief executive officer Goh Chye Boon.
The signing was witnessed by SunCity chairman Tan Sri Jeffrey Cheah and Keppel Corp Ltd chairman Dr Lee Boon Yang.
According to Ngian, the development would comprise 90% residential component or about 5,000 residences and some commercial properties, including a retail centre. It will have an estimated gross development value (GDV) of RM5bil.
The houses will mostly be medium-range condominiums of 900 to 1,200 sq ft priced at about RM500 per sq ft.
The project is expected to take off in the first quarter next year and will take five years. It will start contributing to SunCity’s earnings from 2012.
Ngian said Tianjin Eco-City was currently the largest eco-city being developed in the world and it was expected to have a population of 350,000.
“As the first eco-city in China, the aim is to promote an ecologically and socially sustainable environment, and be a model for sustainable development for other cities in the future,” he added.
Ngian said the company’s development would be based on the lifestyles of health and sustainability philosophy that would elevate the green status of the city.
He said SunCity, which was a pioneer in developing green buildings in Malaysia, was the only local developer to be selected for the project. The other regional developers include Keppel Land of Singapore, Farglory Group of Taiwan, Shimao of Hong Kong, Mitsui Fudosan of Japan and Vanke of China.
With a fast growing middle class population and high urbanisation, China will be one of the biggest foreign markets for SunCity.
Projects from there were expected to make up more than 50% of the company’s foreign earnings in the coming years, Ngian said.
SunCity’s maiden project in China, the 17-acre Sunway Guanghao project in Jiangyin, is targeted for launch by June. The project, comprising medium-end condominiums and specialty shops, has an estimated GDV of RM492mil.
It is a 39:26:35 joint venture between SunCity, SunwayMas Sdn Bhd and Shanghai Guanghao Real Estate Development Group Co Ltd.
PETALING JAYA: Sunway City Bhd (SunCity) has inked a collaboration agreement with Sino-Singapore Tianjin Eco-City Investment and Development Co Ltd (SSTEC) for a RM5bil eco-themed project in Tianjin Binhai New Area in China.
The integrated development on 110 acres within the 30 sq km Tianjin Eco-City will be a 60:40 joint venture between SunCity and SSTEC.
SSTEC, a 50:50 joint venture between a Chinese consortium led by Tianjin TEDA Investment Holding Co Ltd and a Singapore consortium led by the Keppel Group, is the master developer of the eco-city.
Signing on behalf of SunCity yesterday was international property development division managing director Ngian Siew Siong while SSTEC was represented by chief executive officer Goh Chye Boon.
The signing was witnessed by SunCity chairman Tan Sri Jeffrey Cheah and Keppel Corp Ltd chairman Dr Lee Boon Yang.
According to Ngian, the development would comprise 90% residential component or about 5,000 residences and some commercial properties, including a retail centre. It will have an estimated gross development value (GDV) of RM5bil.
The houses will mostly be medium-range condominiums of 900 to 1,200 sq ft priced at about RM500 per sq ft.
The project is expected to take off in the first quarter next year and will take five years. It will start contributing to SunCity’s earnings from 2012.
Ngian said Tianjin Eco-City was currently the largest eco-city being developed in the world and it was expected to have a population of 350,000.
“As the first eco-city in China, the aim is to promote an ecologically and socially sustainable environment, and be a model for sustainable development for other cities in the future,” he added.
Ngian said the company’s development would be based on the lifestyles of health and sustainability philosophy that would elevate the green status of the city.
He said SunCity, which was a pioneer in developing green buildings in Malaysia, was the only local developer to be selected for the project. The other regional developers include Keppel Land of Singapore, Farglory Group of Taiwan, Shimao of Hong Kong, Mitsui Fudosan of Japan and Vanke of China.
With a fast growing middle class population and high urbanisation, China will be one of the biggest foreign markets for SunCity.
Projects from there were expected to make up more than 50% of the company’s foreign earnings in the coming years, Ngian said.
SunCity’s maiden project in China, the 17-acre Sunway Guanghao project in Jiangyin, is targeted for launch by June. The project, comprising medium-end condominiums and specialty shops, has an estimated GDV of RM492mil.
It is a 39:26:35 joint venture between SunCity, SunwayMas Sdn Bhd and Shanghai Guanghao Real Estate Development Group Co Ltd.
Banks expect people to take more loans this year
By SHARIDAN M.ALI sharidan@thestar.com.my
PETALING JAYA: Banks are optimistic of the outlook for trade financing this year, buoyed by increasing demand from the domestic manufacturing sector due to stabilising global economic conditions.
In the first quarter this year, most banks recorded robust growth year-on-year (y-o-y).
About a year ago, at the height of the global economic crisis, StarBiz reported that trade financing had declined by 70%.
RHB Banking Group director of retail banking Renzo Viegas said the bank had generally seen an uptrend in trade financing requirements since the second quarter of 2009.
“Though the growth is still small, we foresee it will strengthen amid the positive outlook for global economic recovery.
“Improving economic conditions locally and internationally has contributed to the growth in the requirements for trade financing,” he said.
“Growth contributions are mainly from the manufacturing sector such as electronics and electrical, and agriculture and construction-related industries.
“Our strong customer base in these industries has contributed to our growth in the trade finance business,” Viegas told StarBiz.
For the financial year ended Dec 31, he said, RHB processed more than RM45bil of trade volume, of which more than 60% required trade financing.
“This year we are projecting double-digit growth in line with the expected favourable local and global economic scenario,” he said.
Alliance Bank Malaysia Bhd executive vice-president, head of SME banking, Steven Kenneth Miller said the bank’s trade financing volume in the first quarter this year (calendar year), as opposed to the corresponding period last year, had increased by RM240mil, representing a growth of 8%.
“The increase in the volume of trade financing is mainly attributed to improving economic conditions both globally and locally, which saw businesses replenishing their stocks amid renewed orders or contracts.
“Our customer base has also grown in the financial year 2010, contributing new business volume to the bank.
“Further growth is anticipated as the economy recovers, with the gross domestic product (GDP) growth forecast to be in the region of 4.5% to 5.5% this year,” he said.
Miller said the bank’s total trade financing volume in the previous financial year ended March 31 was RM12.3bil and it was cautiously optimistic of the trade volume growth for the current year.
“We plan to grow above the market average by leveraging on our branch network, which includes 26 specific trade windows catering to our commercial customer base,” he said, adding that trade financing made up approximately 30% of Alliance SME’s asset base.
OCBC Bank (M) Bhd head of global trade finance Chuang Boon Kheng said that demand for the bank’s trade financing products grew by more than 20% y-o-y in the first quarter this year.
“And we are looking at growth in the teens for this year as the global economy has recovered significantly since the fourth quarter of last year, following the implementation of numerous national policy measures that help to improve global trade conditions.
“However, the recovery path remains uneven, with developing Asia leading the global growth,” she said, adding that Malaysia’s economy too had rebounded in the last quarter of 2009.
Chuang said the domestic manufacturing sector, which was largely dominated by export-oriented industries, had also picked up towards the end of last year.
“We note that the bulk of the increase is coming from export sectors such as wood-based, palm oil and resource-based commodities, and represents mainly intra-Asia trade flow,” she said.
In line with the robust trade financing growth so far, the banks are also projecting positive outlook for their loan growth this year, with RHB expecting a double-digit increase in the current year ending Dec 31.
“Trade financing is one of the components of banks’ loans and advances. Thus, any increase in trade financing volume will have a direct impact on loan growth,” Viegas said.
“Currently, trade financing contributes about 11% to RHB’s loans and advances.
“In addition, trade financing continues to be one of the key focuses for most banks as it also contributes to fee and foreign exchange income,” he said.
Meanwhile, Chuang said OCBC’s total loans grew 5% to RM32.6bil in previous financial year ended Dec 31, due to increased lending to SMEs and large corporate customers as well as higher mortgage loans.
“We are targeting loan growth of at least 10% this year,” she said.
Miller said Alliance SME projected loan growth of between 15% and 20% for the current financial year, due to the continued economic recovery supported by both government and private investments.
PETALING JAYA: Banks are optimistic of the outlook for trade financing this year, buoyed by increasing demand from the domestic manufacturing sector due to stabilising global economic conditions.
In the first quarter this year, most banks recorded robust growth year-on-year (y-o-y).
About a year ago, at the height of the global economic crisis, StarBiz reported that trade financing had declined by 70%.
RHB Banking Group director of retail banking Renzo Viegas said the bank had generally seen an uptrend in trade financing requirements since the second quarter of 2009.
“Though the growth is still small, we foresee it will strengthen amid the positive outlook for global economic recovery.
“Improving economic conditions locally and internationally has contributed to the growth in the requirements for trade financing,” he said.
“Growth contributions are mainly from the manufacturing sector such as electronics and electrical, and agriculture and construction-related industries.
“Our strong customer base in these industries has contributed to our growth in the trade finance business,” Viegas told StarBiz.
For the financial year ended Dec 31, he said, RHB processed more than RM45bil of trade volume, of which more than 60% required trade financing.
“This year we are projecting double-digit growth in line with the expected favourable local and global economic scenario,” he said.
Alliance Bank Malaysia Bhd executive vice-president, head of SME banking, Steven Kenneth Miller said the bank’s trade financing volume in the first quarter this year (calendar year), as opposed to the corresponding period last year, had increased by RM240mil, representing a growth of 8%.
“The increase in the volume of trade financing is mainly attributed to improving economic conditions both globally and locally, which saw businesses replenishing their stocks amid renewed orders or contracts.
“Our customer base has also grown in the financial year 2010, contributing new business volume to the bank.
“Further growth is anticipated as the economy recovers, with the gross domestic product (GDP) growth forecast to be in the region of 4.5% to 5.5% this year,” he said.
Miller said the bank’s total trade financing volume in the previous financial year ended March 31 was RM12.3bil and it was cautiously optimistic of the trade volume growth for the current year.
“We plan to grow above the market average by leveraging on our branch network, which includes 26 specific trade windows catering to our commercial customer base,” he said, adding that trade financing made up approximately 30% of Alliance SME’s asset base.
OCBC Bank (M) Bhd head of global trade finance Chuang Boon Kheng said that demand for the bank’s trade financing products grew by more than 20% y-o-y in the first quarter this year.
“And we are looking at growth in the teens for this year as the global economy has recovered significantly since the fourth quarter of last year, following the implementation of numerous national policy measures that help to improve global trade conditions.
“However, the recovery path remains uneven, with developing Asia leading the global growth,” she said, adding that Malaysia’s economy too had rebounded in the last quarter of 2009.
Chuang said the domestic manufacturing sector, which was largely dominated by export-oriented industries, had also picked up towards the end of last year.
“We note that the bulk of the increase is coming from export sectors such as wood-based, palm oil and resource-based commodities, and represents mainly intra-Asia trade flow,” she said.
In line with the robust trade financing growth so far, the banks are also projecting positive outlook for their loan growth this year, with RHB expecting a double-digit increase in the current year ending Dec 31.
“Trade financing is one of the components of banks’ loans and advances. Thus, any increase in trade financing volume will have a direct impact on loan growth,” Viegas said.
“Currently, trade financing contributes about 11% to RHB’s loans and advances.
“In addition, trade financing continues to be one of the key focuses for most banks as it also contributes to fee and foreign exchange income,” he said.
Meanwhile, Chuang said OCBC’s total loans grew 5% to RM32.6bil in previous financial year ended Dec 31, due to increased lending to SMEs and large corporate customers as well as higher mortgage loans.
“We are targeting loan growth of at least 10% this year,” she said.
Miller said Alliance SME projected loan growth of between 15% and 20% for the current financial year, due to the continued economic recovery supported by both government and private investments.
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