Living in JB

Interest in Iskandar not waning

2015-03-07T17:36:00.000+08:00

Reported by THEAN LEE CHENG, The Star Online

Security issues and inconsistency in policies are concerns

THE number of launches in Johor’s Iskandar Malaysia has dropped of late, with each new quarter seeing fewer launches, according to the Iskandar Regional Development Authority (Irda).

Since January this year, there have been very few launches.

Irda senior vice-president of economics and investment Cheah Ping Yean says this may be due to the Chinese New Year celebrations and doesn’t see interest “on the wane”.

Cheah was one of the three panelists at the conference on Regional Corporate Outlook 2015, organised by Rehda Institute and Malaysia Property Inc recently.

The others in the group were Property Guru country manager Gerard Kho and Gabungan AQRS Bhd senior general manager Jerry Lau. Chur Associates managing partner Chris Tan was the moderator for the discussion entitled “Have Singaporeans Lost Their Appetite for Iskandar Malaysia?”

Kho, whose company has been conducting quarterly property shows in Singapore over the last two years, said he had noticed a drop in the number of visitors between June 2013 and June 2014.

“At our peak, in June 2014, over a two-day weekend, developers who participated in the event sold between RM70mil and RM80mil worth of Malaysian property. Recently, we only had enquiries, not outright purchases. The number of visitors has also dwindled.”

Kho said the questions visitors were asking about the Johor market were also different.

“They do not ask if Iskandar is a viable proposition. Instead, they want to know the proportion taken up by fellow Singaporeans. They also want to know the sort of policies that will be put in place, and have concerns about the daily toll rates between the two countries. They also voice concerns about policy inconsistency,” said Kho.

The debate on Iskandar is interesting for various reasons. Nowhere in Malaysia have so many high-rise residential projects been approved in such a short period of time.

According to KGV Lambert International, the local authorities there have approved 80,900 units, although only 8,000 are being constructed today.

Cheah said Johor continues to attract the highest amount of investments compared to the other states.

“At least a quarter of foreign investments entering Johor is from Singapore, so that is not waning. That is how I would surmise the situation in Iskandar. We would not have been able to do this without Singapore.”

He said much of the investments were made based on what investors call the Hong Kong/Shenzhen model.

Just as Shenzhen has benefited from its proximity to Hong Kong, investors are of the view that Iskandar’s growth and attractiveness will be due to its proximity to Singapore. The development of infrastructure projects like the Johor-Singapore Rapid Transit System and the Kuala Lumpur-Singapore High-Speed Rail projects have also strengthened this view.

Cheah said up till the end of December 2014, Iskandar had received Singaporean investments for the services and manufacturing sectors totalling RM14bil on a cumulative basis. For this year, it is forecasting between RM15bil and RM25bil for both sectors, of which 35% will be foreign direct investments. Of this 35% (about RM7bil), RM1.75bil is expected to come from Singapore. As at October 2014, cumulative committed investments into Iskandar reached RM156bil, increasing almost 13 fold compared to 2006’s RM11bil when it was launched.

Cheah said to be more investment-friendly, a central data base is in the works by Irda to further promote Iskandar. Irda will be working closely with MPI and other parties to make the information accessible to both investors and developers alike. He said Irda has three core functions, namely, to promote, physically plan and facilitate investments into the different zones that make up Iskandar, and that a central data base would be of help towards this end.

“We have executed these (functions) to the best of our abilities. We know there are shortcomings and we have taken note of the different grouses,” he said.

On concerns about the supply of high-rise units in Iskandar, Cheah said Irda had already taken note of the slowing rate of launches.

Lau of AQRS said although there was an increase in the number of developers and projects in Johor, this had not been balanced with an equal growth in population.

Earlier, at the same conference, Bank of China’s deputy chief executive officer Jenny Xu told participants that the mainland Chinese continued to view Malaysia positively.

In her paper entitled “Investor Interest in Malaysia Despite Chinese Slowdown”, Xu compared the fundamentals of both countries and scrutinised both their property sectors.

She said in an Asia-Pacific ranking of basic infrastructure, Malaysia was ranked seventh, slightly below Singapore.

In terms of real estate, Malaysia ranked among the best in terms of pricing. She, however, did not name the organiser of the poll nor the purpose of it.

The fact that prices have continued to trend upwards with positive returns was also viewed positively.

Xu said the Malaysian property sector “was not as volatile as in China”.

If one were to consider the past five years, prices of Chinese properties have increased “by a few hundred percent,” which is rather extreme. Although the Malaysian Government has introduced various tightening measures to rein in speculation in 2013/14, affecting both the primary and secondary markets, this has been viewed positively.

“The Malaysian Government is taking a sustainable approach in terms of control and tightening in terms of property ownership and investment,” she said.

“China started measures in 2005 and it is only today that we are seeing results. We continue to expect to see volatility in spite of these measures in the Chinese property landscape.”

Comparing Kuala Lumpur with the hotspots of Beijing and Shanghai, Xu said Kuala Lumpur “is better than both in terms of investment returns”, at 5%-6% in Kuala Lumpur and below 2% in both Beijing and Shanghai.

Without referring to any particular area, Xu said her observation on Malaysian real estate is that there are many hotspots and “some show signs of overheating”.

“But if the population or earning power can be increased, then consumption will be higher,” she said. She said Chinese investors in search of overseas investments found Malaysia attractive because of the availability of freehold land, compared with land tenures of 70 years back in China.

Financing cost is also lower and condominium units come complete with car parks, which is a unique feature. She said unlike Malaysians who prefer landed property, mainland Chinese have a preference for high-rise condominiums, as there are concerns about security.

She said although Malaysia offered “vast opportunities”, there were some concerns, among them, security.

“If Malaysia can improve its security, then this would make the country more attractive.”

On the impact of the impending goods and services tax, Xu said this was a non-issue. A bit of price increase “will not drive investors away”, but security issues and policy inconsistencies will. Another concern is the lengthy time taken to seal a deal, six months compared with a day in China.

On Iskandar, she said that parts of Malaysia were relatively overheated, but there will still be demand, especially if buyers plan to send their children to study in Singapore.

“If you look at the investment viewpoint, there is a speculative element, especially when buyers and investors recall the Shenzhen/Hong Kong factor. We feel there is a different model (in Iskandar), however,” Xu said.

Malaysian states beyond Johor woo Singapore investors

2015-03-02T18:17:00.000+08:00

Reported by Tan Weizhen, TODAY

Published on 2nd March 2015

SINGAPORE: Against the backdrop of a weak Malaysian ringgit, the coming Singapore-Kuala Lumpur High Speed Rail and the series of property cooling measures introduced here, developers in Malaysian states beyond Johor Bahru are eyeing Singaporean investors.

The developer of a mixed development in Malacca - a three-hour drive away - that comprises a 500,000 sq ft theme park, retail mall and three hotels was the latest to do the courting.

With an oversupply of properties in Malaysia, analysts said developers could well continue to woo investors from Singapore.

In only two roadshows, more than 60 Singaporeans have pumped their money into retail and hotel units at Harbour City@Pulau Melaka, said its developer Hatten Group. Units in the mall cost between RM150,000 (S$57,000) and RM3.7 million, while suites are priced from RM270,000 to RM1.2 million.

A second roadshow held over the weekend drew dozens of Singaporean investors, mostly middle-aged, although the developer has begun to see younger Singaporean investors — those in their mid-30s — turning to Malaysian properties for their first punt.

Hatten Group’s Head of Marketing and Sales Cassandra Tio said the booming medical tourism industry in Malacca has led many Singaporeans and Indonesians to flock there.

"THE MAIN DRAW IS THE PRICE"

Speaking to TODAY at the roadshow on Sunday (Mar 1), prospective Singaporean investors pointed to Malacca’s appeal as a tourist destination and a viable alternative to Johor, particularly the Iskandar region, where there has been buzz in recent years.

Mr W Lee, 55, said: “It is something different as it is a historical town. It’s been mostly Johor or Kuala Lumpur so far, and I’m still cautious about Johor, as it is not quite safe.”

Another interested investor in his 40s, who wanted to be known only as Mr Lim, added: “Tourism in Malacca has potential and the weak ringgit now means it is cheaper for us to invest. Besides, the property market in Singapore now is not as good (for investment).”

Commenting on the trend, Mr Colin Tan, Director of Research and Consultancy at Suntec Real Estate, said: “Singaporeans may bite with the main draw being price, as the ringgit has fallen so much.”

While Malaysian developers have targeted Singaporean investors, these were uncommon and mainly in Johor, Penang and Kuala Lumpur.

Mr Tan added: “If developers feel that the particular property appeals to foreigners, they would come to Singapore. Also, there are many Malaysian permanent residents here, which is another target market.”

Century 21 Chief Executive Ku Swee Yong said developers in Malaysia are trying to cash in on the Singapore-Kuala Lumpur High Speed Rail, which is targeted for completion by 2020 — one of the planned stops is just outside Malacca.

“However, KL and Penang are better options. In Penang, for instance, there is a strong multinational corporation base, with strong job growth. Malacca is mostly still a tourist destination.”

He warned, however, that Malaysia may not be an ideal investor destination, given that there is an oversupply of properties and dipping tourism numbers, and the number of long-term residency applicants remains low.

Up next at Iskandar Malaysia: A snow world theme park and an opera house

2015-01-21T18:29:00.000+08:00

Reported by Rennie Whang, The Straitstimes

Published on 21st January 2015

SINGAPORE - Another large mixed development project at Iskandar Malaysia is on the cards.

Chinese state-owned company Greenland Group and Iskandar Waterfront City Berhad (IWCB) will be jointly developing a RM3 billion project over 128 acres along Tebrau Bay.

The first phase of the Tebrau Bay Waterfront City project, as it is called, will include a snow world theme park, an opera house, a hospital specializing in Chinese traditional medicine and a school. It will be developed over 15 years.

Johor Menteri Besar Mohamed Khaled Nordin said in Shanghai on Wednesday that this is part of plans to develop the eastern corridor of Johor Bahru, stretching from Tebrau Bay to Pasir Gudang.

He was speaking at the signing of a joint-venture agreement between Shanghai State Government-owned Greenland Group and Johor State Government-linked IWCB.

Datuk Khaled noted that about 13 local and foreign companies are already actively involved in developing the proposed Iskandar Waterfront City in Danga Bay.

The Iskandar Waterfront City has a cumulative gross development value of RM125 billion and is on the western corridor from Johor Bahru to Nusajaya.

High impact foreign direct investments (FDI), including from China, are necessary to jump-start economic activity in Johor, Datuk Khaled said. Johor's growth has been invigorated by the launch of several mega foreign property developments which have boosted the local economy due to their spillover effects, he added.

Greenland Group executive vice-chairman Xu Jing said that Greenland was "extremely upbeat" about growth prospects in Iskandar Malaysia as the special economic zone was spearheaded by the Malaysian government.

Greenland is, together with Iskandar Waterfront Holdings (IWH), developing a RM2.2 billion integrated property project on a 13.6 acre plot in Danga Bay

"We've undertaken urban development in over 80 cities throughout China. We're keen to share the experience with IWH as our long-term joint-venture partner and help transform Iskandar Malaysia into an international destination," added Mr Xu.

Horizon Hills upbeat on high-end houses

2014-09-15T18:23:00.000+08:00

Reported by ZAZALI MUSA, The STAR Online

Published on 15th September 2014

JOHOR BARU: Horizon Hills Development Sdn Bhd is confident of maintaining its status as a choice location for high-end residential property buyers in Iskandar Malaysia.

Assistant general manager Jim Woon (sales and marketing department) said the development had been steadily attracting both local and foreign buyers since the project started in 2007.

He said the company was fortunate because it was one of the first developers to offer high-end residential properties in Iskandar Malaysia.

“We are banking on the strategic partnership of two well known property developers to undertake the project and it works well for both of us,” Woon said in an interview withStarBiz recently.

The gated and guarded project is sited on 485.622ha of freehold land located in Nusajaya, one of the five flagship development zones in Iskandar Malaysia.

The 50:50 joint-venture project between Gamuda Land Bhd and UEM Sunrise Bhd will keep the two partners busy until 2017-2019. About half of its total land area has been developed. It has so far sold about 1,400 units of housing over three phases.

“As a pioneer of a high-end residential property developer in Iskandar Malaysia, we had a good start as we launched the projects years ahead of our competitors,’’ he said.

The company invested RM200mil for infrastructure and was the first developer in Iskandar Malaysia to offer golf club membership to house owners for the 18-hole, 80.93ha golf course within the development.

Woon said prices of residential properties at Horizon Hills were higher than the average selling prices way back in 2007.

Its first phase, with a gross development value (GDV) of RM220mil, comprised 453 units of link houses, cluster homes and semi-detached houses with average selling prices of RM300,000, RM450,000 and RM750,000 respectively.

“Many were caught by surprise with the price tags then but we managed to sell all the units,’’ he said.

According to Woon, that prompted the company to increase its selling prices for the second phase, with a GDV of RM400mil, which comprised 650 units of similar dwellings as in phase one. Buyers took delivery of their properties at the end of 2009.

They Call It Great Singapore

2014-02-25T18:37:00.000+08:00

Reported by Trinity Chua, theindependent.sg

Published on 25th February 2014

When we crossed the Causeway, we were expecting to see the Johor we knew. The vast land, the terrace houses leading up to Johor Bharu. We anticipated the familiar sight of the yellow “bus sekolah” [school bus] on the weekdays and the old shop houses selling anything and everything.

But the Iskandar region is different. The border town, three times the size of Singapore, has become almost an extension of home for many Singaporeans.

Set across 2217 sq km at the southern-most part of Johor, Iskandar is a joint project by the Malaysian government and the local government of Johor. It aims to be one of the largest fully integrated urban developments in southern Asia.

Hwang-DBS Vickers Research predicts a surge in residential properties in the Iskandar region, with 9,000 new units in Danga Bay alone. Within the first month of their launch, 3300 units were sold to foreigners. 50 per cent of the foreign buyers are Singaporeans.

Jeremy Hoon, 58, is one of them. Hoon came to Iskandar in 2013. He bought a 3,000-sq ft double-storey terrace house in Horizon Hills. He travels several times a week to Singapore and works as a business adviser after he retired last year. The ex-partner of KPMG Singapore says the township allows a seamless cross-border life.

“If you rent out your house and move here, you can easily purchase a unit in Iskandar. If you have a car, you can easily commute to work in Singapore every day,” he says, citing that it only takes 10 minutes to the border of Singapore outside peak hours. The prices of homes where Hoon lives range from RM600-RM1000 per square feet.

Like Hoon, Danny Chua, 45, has also invested in Iskandar.

Since 2011, the ex-banker has bought about a dozen landed houses in Nusajaya, Iskandar.

“From my observation, there are 70 per cent Singaporeans and 30 per cent upper middle-class to upper class Malaysians here [Horizon Hills],” the property agent says.

Kuala Lumpur people call this place [Johor] ‘Greater Singapore’ because in KL you have inner KL and beyond that you call it greater KL,” he says. He gestures at the new spacious bungalows set on top of a neatly trimmed hill-scape of Horizon Hills.

He is now a property agent in Johor. He helps Singaporeans purchase or rent residential units in the Iskandar region.

“People are pushed out of Singapore,” says Chua. “With the eight cooling measures, high stamp duty and total debt service ratio, Singaporeans find it almost unaffordable to invest in residential property in Singapore and it is impossible to get a loan,” he adds.

Hwang-DBS Vickers Research notes that recent launches in Nusajaya, Medini and Danga Bay within the Iskandar region have reached an all-time high of 45 per cent in the last five years; the country’s residential property price surged at 30 per cent.

“I have an ex-colleague who found the costs of living in Singapore too high. She sold her flat and came to Iskandar,” he says. She had a four-room flat in Sengkang. With the cash, she bought a landed double-storey terrace house here,” Chua says.

Like his ex-colleague, Chua now spends a big portion of his time in Johor, travelling back to see his teenage children in Singapore once a week.

“Many people say that Johor is not safe but I live here and I know this part of Malaysia is as safe as Singapore,” Chua adds. Horizon Hills, where Chua lives, is also a heavily gated community with security guards and high wire-fences.

“Don’t be too showy,” he advises. “You cannot just leave your phone on the table and walk away like we do in Singapore. We like putting the phone on the coffee shop table and walking over to make an order [in Singapore],” he says.

Chua believes that only the middle class Singaporeans are interested in living in Iskandar.

“They have a little bit of savings and they can come here to start a small investment in houses or rent a unit. The lower-end Singaporeans are not going to be interested because they are already having trouble making ends meet. The upper class Singaporeans are not interested at all. They are well-off in Singapore and they can afford most things in Singapore. Expanding your money 2.6 times ($1=RM2.6) makes no difference to them,” Chua says.

Yet life in the gated communities in Iskandar is rather secluded from the larger community of Johor. Chua and Hoon both said their neighbours are mainly Singaporeans and if they mix with Malaysians, they are usually form the richer part of society.

Chua laughs when asked how he feels about his neighbours. “They are the same. I am meeting Singaporeans who are my neighbours.”

Another Singaporean who bought a home in Johor in 2006, Ameerali Abdeali, said Singaporeans living in Johor should not be too arrogant.

“Look, the prices are shooting up because of the Singaporeans living here. They are coming here and they say, ‘cheap this and cheap that’ and they are pushing up the prices. There is no such thing as ‘cheap’, you know. It is just more affordable for Singaporeans because of the exchange rate,” the 63-year-old says. He owns a three-bedroom apartment in Perling, Johor.

“If they go to the bazaar, they should bargain like the locals. They should not just spend however they wish because of the exchange rate,” the Managing Director of GetIT Communications Pte Ltd says.

Semi-retired and also the president of the Muslim Kidney Action Association of Singapore, Ameerali and his wife look forward to the day they can retire in Malaysia.

“You only need to see someone washing their car and you greet them. Chances are he will invite you over. The wife will give you some pineapple tarts. Very nice,” he says, of the handful of times he was invited over to his neighbours’ homes.

Expatriates in Singapore buying Johor homes

2012-09-30T11:16:00.001+08:00

Published in Straitstimes on 30th September 2012

Some expatriates working in Singapore have moved to live in Johor's Nusajaya area, attracted by lower prices of homes and the extra space there.

They have bought houses to live in and commute to work in Singapore. Many plan to continue working in Singapore for the long haul, but say they moved because their housing allowances were reduced or cut altogether.

Developers and property agents said expatriates began moving to Johor from about five years ago, but the completion of houses and recent opening of international schools in the Iskandar Educity project has raised interest markedly.

UEM Land, the major developer in the area for projects including East Ledang and Horizon Hills, said about half of the buyers for its properties are foreigners, including Singaporeans.

Local firms move operations to Iskandar Malaysia to save cost

2012-09-24T23:45:00.000+08:00

Published in Channelnewsasia on 24th September 2012

SINGAPORE: More than 3,500 Singapore businesses have set up shop across the causeway in Iskandar Malaysia over the past six years, with a cumulative investment of more than RM5 billion as at June 2012.

Iskandar Malaysia is a special economic zone in Johor, Malaysia that was launched in 2006. It covers an area of 2,217 square kilometers and is administered by the Iskandar Regional Development Authority, a Malaysian Federal government statutory body.

Over 70 per cent of the businesses are small and medium enterprises.

Fishing equipment supplier Hong Guan started operations in its Iskandar warehouse in May.

Twice as large as its warehouse in Singapore, Hong Guan's 14,800 square feet freehold space cost about S$900,000.

Its local warehouse will shut down next month.

Hong Guan's managing director, Lee Seng Shoy, said: "Singapore will always be our HQ and the brain centre but from a business point of view, we need to be competitive and cost is always a factor. We foresee Iskandar helping us contain our costs and that is something we're leveraging on so we hope that by moving to Iskandar on the logistics side, we are actually enjoying the best of both worlds."

Similarly, Global Capital & Development wants to replicate on a larger scale in Medini, a core development zone in the Iskandar Development Region.

Global Capital & Development, the developer of Medini, is supported by a consortium which includes the Khazanah-backed Iskandar Investment Berhad.

It hopes companies in Singapore and Medini can work together as a single entity to bid for projects.

Global Capital & Development's CEO, Keith Martin, said: "We have Pinewood Malaysia Studios, Medini Media Village and straightaway we went and spoke to the Media Development Authority of Singapore and Mediapolis in Singapore. If you now add up the sum of those parts, it's a much greater proposition. And within a one hour driving radius, we have everything we need to take a TV or film production from a draft script to a full finished product."

With increasing business activity in Iskandar, other firms are moving in with the aim of gaining first-mover advantage.

Shanker Iyer, Chairman, The Iyer Practice's chairman, Shanker Iyer, said: "We think it could be two or three years before this place really starts to get up and running. Initially our main activity would be to offshore some of our less important activities from Singapore to Iskandar. That is actually becoming a need now, because the rising cost of doing business in Singapore, the immigration challenges now, the reduction in S-passes - it's beginning to affect firms like us."

But most acknowledged that concerns remain, such as crime, and the lack of a critical mass of human capital and supporting businesses.
But the authorities are confident the situation will improve.

Iskandar Regional Development Authority's chief executive, Datuk Ismail Ibrahim, said: "As we have seen today, there has been increased bilateral ties between Malaysia and Singapore, and from which the greatest beneficiary is definitely going to be Iskandar Malaysia. We would like to create an environment where both Singapore and Iskandar will see themselves as one destination, not only for investment but for people to work as well as other offerings."

Into its sixth year of development, the Iskandar region in Johor, Malaysia has seen annual investment growth of 8 per cent with Singapore firms accounting for 5 per cent of total foreign investment.

- CNA/ck

Johor Bahru — a metropolis in the making

2012-09-20T21:53:00.000+08:00

Published on New Straits Times on 21st September 2012

Johor‘s real estate market before the rise of Iskandar can best be described as sluggish and uneventful. While Kuala Lumpur has been the epicentre of Malaysia‘s development, Johor Baru has long moved forward at a glacier pace. However, the growth of Iskandar changed all that and has propelled the state into its long overdue growth spurt.

According to Gavin Tee, founder of SwhengTee International Real Estate Investors Club, both Singapore and Johor Bahru have entered into a symbiotic relationship not unlike that of Hong Kong and Shenzhen, a model where both sides leverage on each other to further their respective development agenda.

“I feel that globalisation is the driver behind the formation of such bilateral geographical co-operation which shall pave the way for rapid growth not only in JB, but the whole of Malaysia.”

Iskandar‘s arrival was in line with the trend towards a borderless world and will seed the growth of JB’s real estate development. Like China’s economic development over the past two decades, the Malaysian government’s efforts, planning, and financial support are key to revitalising JB’s sluggish market to enable the state to compete in the global market.

“Iskandar — a stroke of genius”: “The launch of Iskandar was a stroke of genius and the government has shown its determination by announcing to the world the formation of Medini,” stresses the property consultant.

He adds that first impressions are the game changer, and the large infrastructure investment and open policies helped massively in attracting foreign direct investment. Investor-friendly policies and an open real estate market paved the way for expatriates and foreign properties buyers.

In addition, healthcare, creative-based education and business activities are strongly encouraged and these efforts have resulted in explosive growth in Iskandar. Despite many Johoreans‘ initial pessimism of the project, Iskandar has taken off in a big way and has managed to grab the world‘s focus on this up and coming economic hotspot.

“The biggest foreign involvement comes from our southern neighbour and the rise of Iskandar saw unprecedented levels of involvement from Singapore. Investments started flowing in from the island republic and the Singaporean government actively encourages its people to invest in the region,” Tee reveals.

Other major investors include South Korea, Japan, China, and Europe, making JB a truly global city. The rise of JB in the international circuit is beyond the wildest dreams of Johoreans in the past, but the reality is now and many are hoping for Iskandar to remain open and innovative so as to keep in pace with global developments and become an integral part of the global system.

“Many people in Kuala Lumpur do not understand the situation and the level of interest shown in Iskandar. My own interest in Iskandar is due to the number of enquiries I get from Japanese and Chinese investors on whether they should put their money in Kuala Lumpur or Iskandar,” reveals Tee. “The sheer volume of interest prompted me to start studying Iskandar region actively some six months ago and my investigations led me to conclude that Iskandar is the real estate hotspot for next year.”

“I personally believe that JB is poised to take the crown as the investment hotspot for 2013 and the sleeping dragon is ready to move.”

“Sleeping dragon ready to move”: According to figures from REHDA (Real Estate and Housing Developers‘ Association Malaysia), the real estate prices in JB has rose by merely 0.6 per cent over the past 20 years and the past decade was particularly slow with barely any appreciation. Tee believes that the prices will boom soon and the prices will rise to unprecedented levels rapidly.

Other than the overall trend towards globalisation acting as a crucial external push factor, the various investment friendly policies by the government also serves to pull in investments. The government has invested significantly to improve the infrastructure as lack of proper infrastructure, including roads and communication network are major stumbling blocks to development.

“World class infrastructure has enabled Iskandar to compete with other established investment hubs across the region and it is the single largest investment of its kind in Southeast Asia.”

Iskandar‘s success hinges on some keys components and Tee believes that the main challenge is to attract people to stay here for longer periods of time. One of JB‘s biggest problems is that many Singaporeans come here for the cheap food and petrol, but do not usually stay for long.

“This ‘come-and-go’ approach significantly slows down the development potential and there is a need to attract them to stay for at least two or three days.”

Challenge to attract talent: The other challenge is to attract talent to set up homes in Iskandar and the government‘s plan is very simple yet effective. Other than encouraging healthcare, education, and innovation-based industries, the entire Medini region was conceived as an open market without FIC (Foreign Investment Committee) restricting foreign buyers from buying houses here, and this 100 per cent ownership will serve as a huge draw for international buyers.

Educity has also successfully attracted many prestigious universities from around the world, including those from Singapore and the United Kingdom, to set up campus here.

“Currently many Malaysians are leaving the country for further education and many of them stayed on after graduating. Educity is set to reverse the trend and to draw in talents from around the world and to make Iskandar their home after they complete their studies.”

The rise of the medical industry will create many jobs for the graduates of MMU and other medical colleges while other major developments such as Legoland and Pinewood Studio will create jobs for those in the service or creative industries.

“Such well thought-out development plan and the positive feedback cycles are chief reasons for my optimism of the Iskandar region. The region will not only attract talent, but groom them, and provide the jobs to retain them. We encourage them to set up base here and to call Iskandar home.”

There is a pressing need to draw in settlers and not just tourists, people who call this place home instead of merely a workplace. The idea goes beyond any single economic or social objective, but signals the birth of a truly global metropolis.

Focus on tourism in 2013: As far as investments are concerned, next year promises to be a good year for regions that target foreign investors and those with a strong focus on tourism.

“Personally I would like to invest in regions with a tourism focus and Iskandar fits the bill perfectly as it was conceived from the onset to attract investments and such global focus lends it a robustness as even if one (investing) country faces problems, another will step up to fill the gap thus making me feel great confidence,” says Tee, citing this as the primary reason for his optimism.

He also cites the government‘s efforts in entering into agreement with many heads of state and investors as confidence boosters knowing that the big boys are committed in bringing in results.

The third reason cited is the generally low price of JB‘s real estate and he believes that the depressed prices in JB properties means huge room for growth and next year‘s focus will be on investments in the area which will propel it to the top.

Huge room for growth: Tee is quick to warn however that despite the rosy picture, the investments are not without caveats and investors need to be wary of pockets of oversupply that might occur in regions which might require time for adjustments.

“This is where investors need to be cautious and properly study the viability of each investment. At five times the size of Singapore, Iskandar is huge and therefore investors need to be prudent in picking the right spot for growth.”

He adds that although Nusajaya is the latest darling for investors, there are still much room for growth in the matured JB Central. Foreigners staying in Iskandar need their food and entertainment and this is where the developed area can cater to their demands. One Terbau and Setia88 are two matured districts with the biggest growth potential, he indicates.

The highways linking Iskandar and JB Central have eased up traffic massively but there is still risk of traffic congestion as the population grows. He hopes that a modern rail service linking Woodlands and the proposed high speed rail between Singapore and Kuala Lumpur can be completed soon as this will truly cement JB‘s position as a metropolis.

Upbeat views on Malaysian property

2012-09-03T17:45:00.001+08:00

Published TheStar on 3rd September 2012

Substantial inflows and outflows of investments expected for this year

GEORGE TOWN: Despite the global economic crisis, property investments coming into the country and going to overseas this year are expected to increase substantially.

The recently introduced 10% stamp duty for foreigners buying properties in Singapore has increased the attraction of Malaysia as a property investment destination.

Property investments flowing to Melbourne, Australia, are expected to increase between 15% to 18% this year from RM125mil in 2011, thanks to new housing loans for the Australian market recently introduced byMalayan Banking Bhd (Maybank).

Property Talk International Sdn Bhd managing director Steven Cheahsaid that foreigners showing interest in Malaysian properties had increased significantly this year, compared with the last three years, due to the recent 10% stamp duty introduced in Singapore for foreigners buying homes.

Tang: ‘Investors from China are big time property purchasers in Singapore.’

“The other reason is that Kuala Lumpur still remain as one of the few South-East Asian cities with attractive property prices.

“Compared to Jakarta, the price for a prime residential in Kuala Lumpur is about 15% lower.

“The buyers are from Indonesia and China and they show preference for Iskandar, Johor Baru and Kuala Lumpur.

“Indonesians prefer Iskandar because it is close to Singapore,” he said.

The Indonesians and China buyers generally go for properties priced between RM600,000 to RM1.5mil in Iskandar and Kuala Lumpur, while in Penang they go for RM1mil above homes, according to Cheah.

The additional direct flights from Jakarta to Penang by Air Asia had also fueled the interest from Indonesia for Malaysian properties, Cheah added.

This year, Property Talk expects to sell about RM55mil worth of properties located in Johor, Kuala Lumpur, and Penang, compared with over RM20mil achieved for 2011.

“Over the past three months, we have sold over RM25mil worth of properties, comprising 35 residential homes located in Kuala Lumpur and Iskandar, Johor Baru.

“We expect to sell another RM30mil worth of properties, comprising 30 to 40 homes, from Iskandar, Kuala Lumpur, and Penang via three more property exhibitions in Jakarta jointly organised by Malaysia Property Incand private developers before the year ends,” he said.

An aerial view of Melbourne. Property investments flowing to the Australia’s city are expected to increase between 15% to 18% this year.

On investments from Malaysia to Australia, Cheah said the loan interest from Maybank was between 4% to 5% per annum compared with 5.7% to 6% per annum by Australian banks.

“This is why we can expect more Malaysians to take up the loan to invest in Melbourne, Australia this year,” Cheah said, adding that the Maybank housing loan was for Melbourne only.

According to Cheah, Melbourne is the top investment destination for Malaysian property investment funds.

“This is because many Malaysians have relatives who have migrated to Melbourne, where you can find a variety of Malaysian food restaurants.

“According to the latest research from Australian Property Monitors (APM), over the last five years, Melbourne has been the standout performer among the major capital cities for house price growth, with prices increasing almost 30% in just 15 months,” he added.

Meanwhile, Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng said Henry Butcher had recently set up a property show gallery in Beijing, following the imposition of the 10% stamp duty by the Singapore government for foreigners buying properties in Singapore.

“The gallery, set up two to three months ago, showcases residential properties from Klang Valley, Malacca, and Penang.

“Investors from China are big time property purchasers in Singapore.

“With the 10% stamp duty introduced, Malaysian developers are now trying to attract them over.

“We still need to do a lot of education work in China to promote Malaysia as a property destination, as the awareness is still lacking,” he said.

Tang added there were many enquiries from China investors to buy vacant land to develop residential projects in Malaysia.

“We hope they will undertake development in Malaysia and promote the properties in China.

“This will help to increase more awareness for Malaysian properties in China,” he said.

According to Tang, the global financial crisis which erupted in 2008 and 2009 saw foreign interest for local properties dropped significantly. ”In 2010, we see a return of foreign interest, but the volume and value of property transactions involving foreigners still have not not recovered to anywhere near its peak prior to 2008.

“We believe the pace of investment from overseas will remain flat against last year.

“Besides tapping into traditional sources like Singapore, Hong Kong and Indonesia, Malaysian developers are moving into markets such as South Korea and China.

“China is a vast market and if Malaysian developers are able to educate the investors on the attraction of Malaysian real estate, we may see a surge in foreign interest,” Tang added.

Henry Butcher Marketing director for international marketing Jazmine Goh meanwhile said the global economic crisis had created favourable conditions and opportunities for Malaysians to invest in overseas real estate.

“The economic slowdown in Britain has caused property prices to plunge and coupled with the drop in the value of the pound sterling against the ringgit, properties in the United Kingdom have become more affordable and within reach of middle income Malaysians.

“The mortgage defaults in the United States have also resulted in a lot of opportunities to pick up properties foreclosed by the banks at a fraction of the original price.

“Of course, the fear of the prolonged debt woes in Europe has at the same time resulted in a more cautious attitude being adopted by investors,” Goh said.

The popular investment destinations for Malaysians are Australia, mainly Melbourne and to a lesser extent, Sydney, Perth, Brisbane and Gold Coast as well as London, and Singapore, and more recently, the United States, according to Goh.

LEGOLAND is on track for launch!

2012-08-16T11:02:00.000+08:00

Looks like everything is set for a great launch!

You may visit their official site @ http://www.legoland.com.my

Singapore buyers keen on Nusajaya projects

2012-06-13T07:56:00.002+08:00

by Cheryl Tay

Propertyguru

Singaporean buyers have shown keen interest in Nusajaya (pictured) projects in Johor, which is good news for developer UEM Land Holdings Bhd.

Datuk Wan Abdullah Wan Ibrahim, Managing Director and Chief Executive of UEM Land, said that the recent move to tighten housing regulations in Singapore has impacted purchasing power in the country.

"Generally, our Singaporean neighbours are in favour of higherend developments, especially projects with strong security system, lush green environment and are lifestyle-driven."

In April, the government announced new, tighter rules to ensure that developers would provide accurate sizes and layout of apartments, in a bid to protect buyers less familiar with the property market.

As a result, more Singaporeans are expected to buy in Malaysia due to the tightening regulations in Singapore, according to Steve Melhuish, CEO and Founder of PropertyGuru Group.

He added that property prices have reached an all-time high and slight price declines are pushing Singaporean buyers to invest elsewhere.

Wan Abdulah said, "Approximately 50 percent of our total purchasers in Nusajaya are foreigners while the remainder are Malaysians." UEM Land's Nusajaya is one of five flagship zones in Iskandar Malaysia — the first economic growth corridor in Johor.

The developer has four ongoing projects in the area, namely East Ledang, Nusa Idaman, Puteri Harbour, Nusa Bayu and Horizon Hills, a joint venture (JV) with Gamuda Land Bhd.

"Our luxury garden residences, East Ledang and highend condominium, Imperia at Puteri Harbour received overwhelming response from the Singapore buyers," he added.

HLIB Research 30 September 2011 (Gamuda; Traders Brief)

2011-10-01T15:09:00.000+08:00

Living in Johor remains exciting. How I wished I was already a resident while writing this post. Anyways, some indication on the sales performance of Gamuda in Nusajaya.

Link to actual source

Gamuda (BUY)
Record breaking year

FY11 earnings came in at a record high of RM425m (20.7 sen/share), in line with HLIB forecast but 7.6% above consensus numbers.
Strong performances from all divisions buoyed Gamuda's earnings to record highs, which grew by 32% YoY. Outstanding active order book fell to RM2.3bn (RM2.1bn from EDTP), translating to only 1.2x FY11's construction revenue. Hence, the MRT tunnelling project is crucial for Gamuda to replenish its order book.
Launches in Bandar Botanic, Horizon Hills and Jade Hills continued to do well with some ~RM300m new sales achieved during 4Q11. Unbilled sales remained at ~RM1bn, translating to 1.4x FY11's property revenue. For FY12 property sales target, Gamuda has already secured ~RM350m new sales out of the targeted RM1.35bn in local property sales.
As for Vietnam, response has been poor due to the high interest rate environment and the lack of development track records. The management has revised their Vietnam property sales target downwards drastically by >50%, from RM1.5bn to RM650m.
FD SOP valuation trimmed by 2.8% from RM3.92 to RM3.81 as we introduced a 10% discount in our SOP valuation to reflect the current risk adverse appetite in the market.

Educity: Ambitious plans to become an Asian hub for Western education

2011-09-26T23:45:00.000+08:00

A reverse brain drain

Ambitious plans to become an Asian hub for Western education

Published on 5th May 2011, Economist Print Edition

ONE corner of a foreign field is becoming for ever England. It is in Johor on the southernmost tip of peninsular Malaysia, opposite Singapore. At a site called Nusajaya, workmen are finishing a new campus of Newcastle University. Nearby foundations are being dug for Southampton University. And down the road Marlborough College, one of England’s most famous public (that is, private) schools, is building a Malaysian campus from scratch. If all goes well, the 900-odd pupils will hardly notice that they are looking out over palm-oil plantations rather than the Wiltshire Downs. Within a few years thousands of students will be enjoying an English education in this steamy bit of Asia.

“Educity”, as the Johor complex is called, reflects Malaysia’s grand strategy to become a centre for Western education. The country wants to meet strong demand among Asia’s new middle classes for English-language schooling. It also worries about its brain drain (over 300,000 university-educated Malaysians work abroad). Having watched Asian children flock west to spend a lot of money on British and American schools, the government decided a few years ago to try to reverse the trend. It has campaigned to persuade Western schools and colleges to come and set up branch campuses. The Malaysian proposition to Asian parents is simple and beguiling: come to these famous schools and universities in our country and get the same degrees and qualifications as in Britain or America for half the price.

Australia’s Monash University was the first to set up shop, followed by Britain’s Nottingham University, in 2000. Other Australian universities followed Monash, and in March the Massachusetts Institute of Technology teamed up with a Malaysian body to create Asia’s first Institute for Supply-Chain Innovation. Johns Hopkins University is expected to set up a medical school. The Netherlands Maritime Institute of Technology is already in Educity.

Yet other factors count as well. Malaysia is a former British colony and English is widely spoken. The country has a superficially Western feel to it—ideal for Westerners studying or teaching in Asia, and for Asians who want to acclimatise to Western culture. Meanwhile, Malaysia cleverly markets itself to the Middle East as a relatively relaxed Islamic country where young Muslims can mix together freely and, for a few years, slip the surly watch of the morality police back home.For these Western institutions, the prize is a toehold in the world’s biggest education market. Many have already gone into partnership with or lent their names to schools and universities in Hong Kong, Singapore and Shanghai. But this is the first time so many have been persuaded to build replicas of themselves in another country, a more permanent and riskier proposition. They are doing so largely because the Malaysian government is bearing the start-up costs. Educity is spending about $100m on the infrastructure and buildings.

In return for putting up a lot of money, the Malaysian government wants universities to set up faculties in subjects that will be most useful to Malaysia. The University of Southampton, for instance, will only offer degrees in engineering. But the influx of foreign colleges might have more interesting consequences, too. In order to attract foreign universities, the government has had to waive the restrictive and sometimes racist regulations that govern Malaysia’s own universities. In these places, informal quota systems give preference to ethnic Malays in the faculties of sought-after subjects such as law, medicine and engineering. Students are not allowed to join political parties or protest. Now, local students are demanding to know why they should be subject to these archaic rules when the new students are not. Good question.

Iskandar to benefit from Singapore-Malaysia relationship

2011-09-12T21:12:00.003+08:00

Living in Johor. Another validation from Analyst. Good for us!

Sep 12, 2011 - HomeGuru.com.my

Fund managers in Singapore see the enhanced bilateral relationships between Malaysia and the city state as the key driver of development in Iskandar Malaysia.

According to Quah He Wei, an analyst from HwangDBS Vickers Research Sdn Bhd, feedback from fund managers revealed that most of them would encourage their clients to invest in the region.

He added that the Singapore government has been asking its investors to look at Iskandar through initiatives such as Temasek Holdings’ joint venture (JV) with Khazanah Nasional Bhd to develop a “wellness township” in Nusajaya.

“About three week ago, we organised a field trip to Iskandar for the first time for more than 40 fund managers from the republic,” Quah informed the StarBiz.

He added that based on a survey, 53 percent of the fund managers approved the Iskandar’s development progress while 41 percent were neutral.

The survey also revealed that 64 percent would likely invest in Iskandar properties within the next two years and that 72 percent chose to acquire landed properties in Nusajaya, as the area canaccommodate various major projects.

Quah noted that the quality and pricing of housing properties in Nusajaya were the primary attractions.

“But Nusajaya still lacks critical mass and investors are likely to come in only in 2012, which is the tipping point with the completion of the projects,” he said.

Situated in the southernmost part of Johor, Iskandar has a total land area of 2,217 sq km. The other four flagship development zones are the Eastern Gate Development Zone, Johor Baru City Centre, Senai-Kulai and Western Gate Development Zone.

Iskandar Malaysia making progress

2011-09-11T17:15:00.000+08:00

Living in JB has its ups and downs. Today, it is an up. Why? Well, read the report for yourself and bask in glorious confidence if you've already a foothold in JB properties. It is always to receive good news from independent sources. Or so, saiths I.

A special report by HwangDBS Vickers Research, On Saturday 10 September 2011, 23:45 SGT
http://sg.finance.yahoo.com

During our recent site visit to Iskandar Malaysia, we drove around the project sites for EduCity, Medini, SiLC, Horizon Hills, Setia Eco-Gardens, and Johor Premium Outlet, and made stops at the state administrative centre in Kota Iskandar, Columbia Hospital, and Puteri Harbour sales gallery. We also met up with representatives from the Iskandar Regional Development Authority (IRDA), Iskandar Investment Bhd (IIB), UEM Land Bhd, S P Setia Bhd and Eastern & Oriental Bhd (E&O).

The feedback from fund managers was encouraging — 53% and 41% of our survey respondents were positive or neutral on Nusajaya’s development progress. Respondents were generally satisfied with the progress on infrastructure, security, foreign and private investments, government policies, awareness and marketing, and property prices. Fund managers rated infrastructure, security, and government policies as the top three factors required for Iskandar to be a success.

On security, IRDA highlighted that a Safety and Security Blueprint is in place and the crime index had fallen by 21% and street crime by 47% compared with last year. Police manpower has been increased from 6,172 in 2007 to 9,115, and Iskandar now has five police districts compared with only three previously. An additional 273 mobile police vehicles and 12 mobile police stations have been deployed as tactical command centres in Iskandar’s five flagship zones — Johor Bahru City Centre, Nusajaya, Western Gate Development, Eastern Gate Development and Senai-Skudai).

We are encouraged that 64% of our survey respondents are keen to invest in Iskandar-related shares and properties within the next two years, of which 72% are interested in landed properties. Tourism should be a low hanging fruit as 67% of respondents would consider Iskandar as a weekend getaway, while 72% would likely visit the theme parks. The Johor Premium Outlet — the first Premium Outlet in Southeast Asia — should also be well-received based on our 89% positive response.

Some 49% of the fund managers are also interested in patronising Iskandar’s healthcare facilities. This concurs with our observation of the activity level at Columbia Hospital, which is positioned as a suburban/community hospital (41 beds). Since its launch in July 2010, Columbia Hospital has treated over 8,000 patients, of which 30% to 40% were foreigners. Occupancy rate is 80% to 90% and average length of stay is two days. This can be attributed to the scarcity of reputable private hospitals in Johor and relatively cheaper medical fees compared with Singapore (the single-bed room rate is only RM180 against S$498 (RM1,230) at Gleneagles Singapore). EduCity, however, needs more promotion (only 11% of respondents would consider sending their children there).

2012 tipping point on track

According to IRDA, committed investments in Iskandar Malaysia have reached RM76 billion as at 1H11 (about 59% from foreign investors), of which 40% or RM30 billion has been realised. Most of the infrastructure and catalyst developments in Iskandar are on track for completion from 2012 onwards, which should help to draw in critical mass to Nusajaya.

Under the Ninth Malaysia Plan, RM6.3 billion has been allocated to upgrade existing road infrastructure and build new roads to improve connectivity (four out of six road projects are in various stages of progress). The Coastal Highway, which will cut travelling time from Nusajaya to Johor Bahru by half to 20 minutes, looks on track for completion by December this year. Newcastle University (first in EduCity) is expected to commence enrolment by October this year, although hostels are still under construction and the food courts and retail facilities seem rather sparse for now.

Although construction of Legoland seems to be in the initial stages, we were assured that its September 2012 launch date is still achievable as fabrication of rides will be done concurrently offsite. We also noted several large projects slated for completion in 2012 (some of which have been overshadowed by other higher profile projects), as shown in Table 1.

Medini: Central business district of Nusajaya

IIB provided some insights on development plans for the 902ha Medini, which was acquired by a Middle East consortium comprising Kuwait Finance House, Abu Dhabi’s Mubadala Development Co and Saraya Group in August 2007 for RM4.1 billion (RM43 psf). Medini is divided into four components for mixed development: Medini North, Business, Central and South. To date, about RM4 billion has been committed and spent on infrastructure and building works.

There are robust development activities at Medini North to leverage on the September 2012 opening of Legoland, which is targeting one million visitors per year. Various listed construction and property players are keen to get a piece of the action:

• WCT Bhd is scheduled to launch its first phase (300 condo units) 1Medini residential project in Medini North this month at US$150 (RM450) psf (GDV RM200 million), with targeted completion by 2013. WCT will also be developing a RM688 million commercial project in the Medini Business District, just minutes away from Medini North;

• UEM Land Bhd is developing Lifestyle Retail Mall and Residences@Medini North, which will be directly connected to Legoland. Phase 1A, comprising 200,000 sq ft gross floor area, has been targeted for completion by September 2012, although the entire development of two million sq ft GFA will be spread over eight years;

• Bina Puri Holdings Bhd is scheduled to complete a RM500 million SOHO and retail development (Medini Square) at Medini North by 2013. The first phase of 1.05 million sq ft GFA is expected to be completed in 2012; and

• Pantai Holdings Bhd plans to build a 300-bed private hospital, Gleneagles Medini Hospital, on a 6ha site at Medini North, scheduled for completion in 2014.

For Medini Central, E&O will jointly develop 85ha at the iconic wellness township in Medini Central with Pulau Indah Ventures (Temasek-Khazanah joint venture). E&O has been appointed the project manager and sales and marketing consultant for the RM3 billion-GDV mixed development.

The project should do well given:

• its strategic location near the Second Link and public golf course, and Medini is the only area within Iskandar with special incentives (10-year tax exemption, no bumiputera quota, freedom to source capital and labour globally);

• Temasek’s stamp of approval which should see strong interest from Singapore buyers; and

• E&O’s strong execution track record (master plan likely to be similar to its flagship Seri Tanjung Pinang Phase 1).

Rising interest in Johor property

We saw an increase in landbank transactions at Iskandar recently, with Mah Sing Group Bhd and Dijaya Corp Bhd acquiring large parcels over the past five months. Nusajaya’s land price has continued to set new benchmarks, surpassing other areas in Johor, including Johor Bahru city centre. For example, Puteri Harbour was transacted at RM220 psf in June 2011 against Johor Bahru’s RM117 psf in August. Recent transactions at SiLC industrial land had touched RM35 psf, with UEMLand targeting RM60 psf in the longer-term as Senai Industrial Park is already asking for RM45 to RM60 psf. We understand SiLC buyers are required to construct their factories within two years of purchase, failing which UEMLand has the right to buy back the land at 90% of the purchase price.

Property launches are expected to pick up at Nusajaya and set new price benchmarks. UEMLand will be launching Imperia Condo at Puteri Harbour (700 to 1, 200 sq ft built-ups) soon at RM600 to RM700 psf, while WCT is aiming to launch 1Medini at RM450 psf. These prices are much higher than UEMLand’s Ujung apartments that were launched in 4Q09 at RM300 psf. The latest launches of link and semi-detached houses at Nusajaya are already touching RM800,000 and RM1.2 million per unit, almost comparable to property prices in some areas within the Klang Valley. Based on KGV Lambert Smith Hampton’s survey (highlighted in The Edge weekly), average prices of 2-storey terraced houses and semi-d/cluster houses at Nusajaya have appreciated by 21% and 48% since the start of 2009.

S P Setia remains market leader in Johor

SP Setia has seen consistent sales at its Johor projects, growing at a five-year compound annual growth rate of 17%. Sales for 9MFY11of RM798 million have surpassed FY10’s sales of RM607 million. Johor currently accounts for about 35% of S P Setia’s total sales (was about 70% prior to launch of Setia Alam and Setia Eco-Park in 2004). Johor will continue to feature prominently in S P Setia’s plans after the recent acquisition of two large parcels near Tebrau — Setia Eco Cascadia (105ha @ RM15 psf) and Setia Business Park 2 (106ha @ RM11 psf) for a combined RM295 million. S P Setia now has 608ha of land in Johor with RM8 billion potential GDV.

About six months ago, S P Setia ventured into industrial properties — a low hanging fruit given its established presence in Johor since 1997 and rising private/foreign investments at Iskandar. Setia Business Park (adjacent to Setia Eco Gardens) is well sought after with Phase 1 and 2 fully sold (80% to 90% locals). Phase 1 is completed and we will see Singapore-based companies such as Old Chang Kee, SYY Pte Ltd, Huiji and Windwell move in. S P Setia has also started to launch apartments in Johor to tap into the affordable homes segment, for example, Sky Gardens Residences at Setia Tropika (RM390 psf, 56% sold) and Sky Loft at Bukit Indah (RM462 psf, 75% sold).

Genting Plantations’ Johor Premium Outlet (JPO)

JPO, a 50:50 joint venture between Genting Plantations and US-listed Simon Property Group, is strategically located at the intersection of the North-South Highway and Second-link Expressway, and will span 18ha with approximately 175,000 gross lettable area.

It will be the first Premium Outlet in Southeast Asia, boasting 80 to 90 outlet stores with an average size of 1,800 sq ft per lot. There will be 3,000 parking bays and 30 bus bays to cater for four million visitors per year (first year target). Located between Resorts World Genting in Genting Highlands (3.5 hours drive) and Resorts World Sentosa in Singapore (one hour drive), JPO is likely to be packaged as part of the Genting Group’s travel packages/bus programme to attract more visitors to the shopping haven.

With the official launch (Nov 11, 2011) just four months away and its superstructure yet to be completed, we expect JPO to open in stages.

This article appeared in The Edge Financial Daily, September 8, 2011.

Concession for Malaysian Cars to be driven into Singapore

2011-09-06T18:09:00.000+08:00

Copied from a forum - for those who own Msia registered cars intending to drive in Sg.

"In recognition of the needs of bona fide Singaporeans or Singapore PRs working and residing in Malaysia to make home visits to Singapore, we could consider you for the special concession scheme. Under the scheme, all approved applicants are allowed to drive their Malaysia-registered cars into Singapore for all weekends, all Singapore public holidays and another 28 weekdays in a calendar year. Approval will be given on a case-by-case basis with consideration to the following:

The applicant (his spouse or his company) is the registered owner of the vehicle. If the vehicle is rented/leased by his company, he has to submit an official letter from the company stating the period the vehicle is leased for and that the vehicle is provided solely for his use;
He is physically working and residing in Malaysia;
He is required to apply to Land Transport Authority for approval when his earlier approval letter (if any) has expired (i.e. upon expiry of his vehicle's insurance/road tax or 6 months, whichever is earlier);
His vehicle has a valid Malaysia road tax disc and insurance coverage for the period it is used in Singapore; and
He must keep, in each of his visit, his vehicle outside Singapore before the vehicle entry permit grace expiry of 14 days from the date of the last entry.

(Note: Unless further extension is granted, the vehicle entry permit valid for 14 days is issued upon each entry and encoded in its Autopass Card electronically at land checkpoint.)

If you wish to apply for the scheme, please fax your request and the following documents to us at (02)-65535329 or (02)-65535802 (from Malaysia) or by email to rp@lta.gov.sg:

A photocopy of your Singapore identity card (front and reverse sides);
A photocopy of your passport with the relevant page of your employment pass endorsed by Malaysian Immigration or Malaysian identity card (if any);
A photocopy of your company's letter confirming that you are currently working and residing in Malaysia;
A photocopy of your vehicle's valid registration card (front and reverse sides) with latest valid road tax endorsement by Road Transport Department, Malaysia;
A photocopy of your vehicle's valid insurance certificate;
If the vehicle in your application is registered under your company's name (or is rented/leased by your company), we would also require an photocopy of your employer's letter stating the period the vehicle is leased for and that the vehicle is given solely for your use and that only you can drive the vehicle; and
A photocopy of your marriage certificate (if you are applying with your spouse's vehicle).

Please also provide us your residential address in Malaysia and your residential address during your intending visit in Singapore and indicate your intended date(s) of visit (if available) to Singapore.

Important Note

Your application must reach us at least 5 working days (excluding Saturdays, Sundays and public holidays) before your intended visit to Singapore to allow us to process your application. Please note that we may not be able to process your application on time if your submission is incomplete or late.

Electronic Road Pricing and Vehicle Entry Permit Fees and toll charges

Please refer to our website at http://www.lta.gov.sg =>'Motoring' =>'Driving Into and Out Singapore' =>`West-Malaysian Registered Vehicles' =>'Vehicle Entry Permit/Tolls' and `Autopass card matters' for more details on payment of vehicle entry permit (VEP) fee, electronic road pricing (ERP) fee and toll charges.

Driving Licence to drive in Singapore

You may also wish to check on the type of driving licence required to drive in Singapore for Singapore citizen or Singapore permanent resident from the following Singapore Traffic Police's portal:

http://driving-in-singapore.spf.gov....ence_legal.htm

Please contact our Customer Service Hotline at 1800-CALL LTA (1800-2255582) or email us at rp@lta.gov.sg or vep_feedback@lta.gov.sg if you need clarification.

We thank you for writing to us."

Turning Nusajaya into a Smart City

2011-09-03T22:36:00.000+08:00

Collaboration essential in forming sustainable smart cities: Cisco

By AvantiKumar
Published on 2nd Sep 2011
http://www.cio-asia.com/

The use of ICT in forming smart cities and communities must be balanced with better collaboration between governments, according to discussion of a recent IDC report by networking solutions giant Cisco.

Speaking during a regional TelePresence (Cisco TP) media conference on 16 August 2011, IDC associate vice president, Asia Pacific, Philip Carter, said the June 2011 report - 'Delivering Next-generation Citizen Services' - showed that cooperation between city governments was essential for successful and sustainable programmes.

"The study assesses the environmental, social and economic impact of Intelligent X (an IDC term for using smart technology in smart city planning) on future communities," said Carter. "Governments are moving away from asking the 'why' and 'how' in terms of sustainability programmes in the light of mega trends such as the connected nature of things, including mobile devices."

"Infrastructure issues including energy, transport, and emergency services, coupled with increasing resource constraints and environmental concerns must be balanced to meet the growing demands of a rising middle class in both developed and emerging areas of the world," he said.

"There has to be a rethink on how cities can deal with such constraints," said Carter. "There are no quick is fixes. Intelligent X as a technology area that integrates smart devices coupled with high speed communication networks need intelligent software to process, consolidate and analyse data: these will help to transform industry specific business processes that underpin urban and community infrastructure needs."

He said that ICT used in smart communities should include smart meters, smart grids, a distributed grid environment to help reduce household consumption of energy. "Automated systems could help by reducing carbon emission by 25 percent, resulting in energy savings of 50 percent. Other benefits (indicated by smart communities such as Songdo in Korea and Waterfront Toronto, Canada) may yield reductions of crime and traffic congestion by 20 percent."

'Plumbers for the Internet'

Cisco president, Globalization and Smart+Connected communities, Anil Menon, said Cisco's role as providing deep network infrastructure could be seen as being 'plumbers for the Internet.' "Of course, ICT is more about what it can enable. Cisco notes that in the next 10 years, we will see global trends towards urbanisation as more people move into communities across the world."

"Cities are also suffering from infrastructure costs, so the 'Internet of things' along with networking must be used to help build and operate a city differently, such as the new development announced in Malaysia - the tripartite agreement between UEM Land Holdings, Iskandar Investment and Cisco to turn Nusajaya in Iskandar into a Smart City," said Menon.

"To bring technology early into planning means that the network could provide unlimited storage as well as help to solve the problems of cities in terms of safety, security, sustainability and efficiency," he said. "The quality of life, education and healthcare are all aspects of a smart city that operate better with such an approach."

"Cisco's differentiation as a service delivery platform is we believe that the networking connection within an information infrastructure is much closer to the actual flow of information (or data) and that this allows us to have better access into intelligent information handling," said Menon. "For instance, the Nusajaya Smart City in Malaysia is another example where we work closely with master and urban developers to help build the digital framework of a smart city."

New Coastal Highway project is 80% complete, says Irda CEO

2011-08-31T23:06:00.000+08:00

Am so looking forward to the completion and full operation. Any bros with pictures, please post/share... I understand some have already traversed the highway... heheh!

By ZAZALI MUSA
Published on 31st August 2011
http://thestar.com.my/

JOHOR BARU: Work on the New Coastal Highway is progressing well as it is expected to open for motorists in the second-quarter of 2012.

Iskandar Regional Development Authority (Irda) CEO Ismail Ibrahim said the project already at 80% completion level.

The 15km toll-free highway costing RM945mil links Johor Baru city centre to Nusajaya, one of the five flagship development zones in Iskandar Malaysia.

Other zones linked by the facility includes the Johor Baru City Centre, Eastern Gate Development Zone, Western Gate Development Zones and Senai-Kulai.

“Motorists using the highway from the city centre will reach Nusajaya in 15 mins from 30 mins currently,” he said adding the highway would disperse traffic congestion by 30% to the city centre.

It provides direct link between the Bukit Chagar Customs, Immigration and Quarantine to Nusajaya for motorists entering Johor Baru from Singapore to visit Legoland Theme Park at Nusajaya and Indoor Theme Park @ Puteri Harbour.

Ismail said this after witnessing a signing ceremony between Genting Property Sdn Bhd and Telekom Malaysia Bhd (TM) represented by its senior manager Beverly Goldman and Johor general manager Mohd Roslan Mohd Rashidi respectively for the provision of the high speed broadband services.

He added that the interchange connecting the North-South Expressway to Kulaijaya near the exit point to Senai-Pasir Gudang-Desaru Expressway would be ready by mid-October before the opening of the JPO in November.

“The interchange will provide an alternative route for motorists and shoppers to visit the JPO and will improve connectivity and accessibility to Kulaijaya,” said Ismail.

JPO is a 50–50 joint-venture between the Genting Group’s 54.6% owned subsidiary Genting Plantations Bhd and Premium Outlets, a division of US-based Simon Property Group, offering off-seasons branded items between 25% and 65% all year round.

This is the first of its kind in South-East Asia, there are 52 outlets in the United States, Mexico, Japan and South Korea.

Separately, Ismail said Iskandar Malaysia has received cumulative committed investment of 75.96bil up to June 2011, of which 60% (RM45.48bil) from local investors and 40% (RM30.48bil) from foreigners.

Gold At $1,950 Within The Month Reaffirm UBS; JP Morgan $2,500 Year End Call Remains

2011-08-30T22:41:00.001+08:00

I am long precious metals, especially gold. So, once in a while, I will post some articles/videos that I feel are notable milestones for my own records. Of course, those of you who are more invested may want to consider gold and silver in your own investment portfolio as well. Mike Maloney has aptly presented a strong argument for gold, which I will not repeat here. Feel free to view that video for your own education. For those who might be more familiar with Robert Kiyosaki instead, you might like to know that he is long silver and gold as well. Well, more so silver.

Read from source here

Submitted by GoldCore
30th August 2011

Brimelow said that “bearing in mind the huge gold importing by China in the latter part of last year, in JBGJ’s opinion this is currently the key issue in the gold market.”

The UBS daily note reports that “the mood among gold investors appears to be to buy the dip rather than chase the market, which is understandable given last week's volatility.”

UBS conclude that the “violent sell-off hasn't done any lasting damage to gold, and the reasons investors bought gold in recent months remain valid. Our one-month forecast of $1950 remains in place.”

UBS three month price view is $2,100 per ounce.

Very significant demand being seen for bullion internationally and especially in Asia means that gold’s correction is likely to again be of short duration. Indeed, the scale of demand suggests that gold may not need a long period of consolidation and could again surprise to the upside.

Non gold experts, many in the financial services industry, continue to warn of a bubble. Their analysis is extremely simplistic and almost exclusively based on recent price action.

However, the majority of those in the industry and the majority of gold market analysts remain bullish.

Throughout August, prior to the recent record nominal high and subsequent selloff, many banks raised their forecasts for the year.

SocGen raised its average gold price forecast to $1,950 an ounce for the fourth quarter of 2011 and to an average of $2,275 per ounce in 2012.

Bank of America-Merrill Lynch said in a research note it was revising its 12-month gold target to $2,000 an ounce.

JPMorgan said that gold could reach over $2,500 per ounce prior to year end.

The recent sell off has not seen banks and analysts revise down their price forecasts.

Since 2003 that the real high of $2,500 per ounce (inflation adjusted and based on CPI) would likely have to be reached prior to gold being a bubble.

Those informed about the gold market know that absolutely nothing has changed about the supply and demand dynamics driving the gold market.

Beware of “Scratch & Win” Scam in JB City Square

2011-08-27T11:23:00.001+08:00

Today, I noticed a post on Super 365 blog about such scams on the rise in JB. Thought that it would be good to increase the awareness on this.

You can view his video here. It supposedly shows the scammers in action at City Square area.

You can also find out more about such "Scratch-and-win" scams in Malaysian news reports here:

http://www.alantanblog.com/scam/beware-of-scratch-and-win-scams.html

Do pass the word on this to relatives/friends who frequent JB for their protection. It is possible that Singaporeans may be targets of such scams in JB.

Live well everyone!

UEM Land Q2 net profit soars

2011-08-27T10:30:00.000+08:00

Living in JB - I can't help but think that this scenario will only get rosier and rosier...It bodes well for investors and relocators alike as more and more funding pours in to build us a global city of choice.

By Bilqis Bahari
Published on 26th August 2011
http://www.btimes.com.my

KUALA LUMPUR: Property developer UEM Land Holdings Bhd's second quarter net profit more than doubled due to its soaring revenue.

Its net profit for the three months to June 2011 came in at RM88.9 million compared with RM40.35 million in the same quarter a year ago.

Revenue rose to RM509.4 million from RM88.0 million last year.

UEM Land said the momentum in the second quarter of 2011 will provide a strong platform for the current financial year.

For the first six months, UEM Land's net profit stood at RM106.54 million, up from RM43.49 million a year ago.

Group revenue rose to RM697.09 million from RM127.7 million previously.

UEM Land said the total unbilled sales of RM1.53 billion as at June 30 this year will support its revenue and profit for the current and subsequent financial years.

The significantly higher revenue in the quarter under review came mainly from higher direct development projects and developed land sales, UEM Land said in a filing to Bursa Malaysia yesterday.

Higher developed land sales of RM122.1 million compared with immediate preceding quarter of RM7.3 million was mainly attributed to strong sales performance for the Southern Industrial & Logistics Clusters (SiLC).

The high demand for industrial land at SiLC was due to the relocation of Singapore factories to Nusajaya, the company noted.

The Saddest TV Commercial Ever: Silence of Love (English Subtitle)

2011-08-25T10:14:00.008+08:00

One of the reasons that I am making a transition to JB is because I want to "care for those who care for me". Dear friends, do not wait till it is too late to show your loved ones the care that you keep in your heart.

Buy a house, and buy the Mortgage Reducing Term Assurance (MRTA). Cheaper than the life insurance premiums in the market and you'd be prepared for the inevitable. Well, this is my personal take on this matter. :)

I'm not sure if this is the source of inspiration for bro WuQi's choice of music on his blog, but I really think that Thai Insurance produces the most meaningful and heartfelt ads ever. The other consortium would be Petronas. Well, that would be another story for another day...

Well, a personal note to the father of "Living In JB" thread. Thank you for paving and making the way known to us...

Finally...comprehensive information about LEGOLAND!

2011-08-24T17:07:00.000+08:00

http://blog.malaysia-asia.my <--- All the yummy pictures can be found INSIDE

Written by DAVID JR
Published on 23rd August 2011

Legoland Malaysia is set to open by early 2012 in Johor Bahru at Nusajaya, Iskandar Malaysia Economic Region. This will also be the first Legoland Theme Park in Asia and sixth in the world after Denmark, Britain, California, Florida and Germany. The massive 76-acre (31 hectare) project is brought together by IDR Resorts and UK based Merlin Entertainment costing a whopping RM750 million. The good news for those across the border is that is it will only be a 20 minute drive from the Tuas Second Link to Medini in Nusajaya which is one of five flagship zones of Iskandar Malaysia. This will be the biggest family entertainment project in Johor which will attract tourist from locally, Indonesia and also Singapore.

Among the attractions at Legoland Malaysia, there will be a gigantic replica of the Petronas Twin Towers, all built using Lego bricks and it will be the tallest Lego structure in the world. Replicas of famous landmarks from around the world such as India’s Taj Mahal, Beijing Bird’s Nest Stadium, Cambodia’s Angkor Wat and Singapore’s Merlion statue will also be featured, all made from Lego bricks. All the main structures will be located at Legoland’s Miniland. The theme park would also have famous buildings in Johor Baru, such as the Royal Museum, Sultan Abu Bakar Mosque and the Dataran Bandaraya clock tower.

The Lego structures and many attractions such as roller coaster rides will be situated outdoors while the food and beverage (F&B) outlets will be housed in air-conditioned buildings at the park. A unique 4D theatre and a kids driving school where children can obtain their first driving license, recognised by Legoland worldwide are among the highlights here. Apart from the main park, there will be a Legoland Hotel and a Lifestyle Mall in the vicinity of the park.

A total of 50 interactive rides will be available while an amazing amount of 30 million Lego Bricks are used throughout the park for building structures. The current completion date for the park has been set for early 2012 so stay tuned for news announcements. For further details on tickets and information, please read the end of this article.

For construction updates of this project, The Theme Park Guy has pictures of the place going through the building process as he visited the site in early January. Further news updates include an MRT Station which is planned to open next to the theme park here. No details are confirmed but if it happens, it would surely be a wonder for those wanting an easy ride here. And because of the tropical weather here in Malaysia, queuing areas will be covered as the developer has ordered thousands of trees to be planted within the park grounds.

One thing I foresee is that many will capitalize on Travel and Tour Packages to Legoland Malaysia. Tour companies will take the opportunity to include this package for Malaysians, Singaporeans and Indonesians making the Southern region a worthy visit for holiday makers. Imagine spending 4-5 days around here where you get a chance to visit Singapore's Universal Studios, Sentosa Island and Legoland Johor in one visit where everything is just a drive away.

Legoland Location: Nusajaya, Johor
Ticket Prices: To be announced
Opening Times: To be announced
Attractions: Main Theme Park, 4D Theater, Kids Driving School, Legoland Hotel, Lifestyle Mall

For future updates, please visit the official Legoland Malaysia Website.
If you are looking for a job career in Legoland Malaysia, please email: career.legoland@my-iib.com

Ticket prices for Legoland have yet to be confirmed but the word out there is that it will be very affordable for a family of six people. The ticket price for an adult in Legoland California is around US$69 (RM210) per day so there are a lot of guesses on how it will be priced here in Malaysia. I am pretty sure that for the opening, there will be Family Package Tickets and promotional prices. The park is also targeting about 1.5 million visitors annually.

For family theme parks, there is also KidZania Kuala Lumpur at The Curve NX which is opening in December 2011. So there are a number of kids and family interactive theme parks in Malaysia now. I am hoping that this park opens in the first quarter of 2012 without any delays so that I can pay a visit here to fulfill a childhood bucket list. I am pretty sure that most of you would have had some experience playing with Lego in your younger days. I clearly remember my uncle from the UK who brought a massive Lego Box Set as a gift when I was about seven years old. That alone kept me busy for many years so you can imagine the thrill of visiting an entire park filled with these little colourful bricks. Till 2012, see you all at Legoland Malaysia.

Greater interest in gold investment options as gold prices hit record highs

2011-08-23T21:55:00.002+08:00

By Ng Puay Leng / Monica Kotwani
Published on 23rd August 2011
http://www.channelnewsasia.com/

SINGAPORE: As international gold prices hit record highs, some banks said there is greater appetite from local investors purchasing gold investment products.

Analysts predict gold prices could go as high as US$2,500 an ounce, compared to US$1,400 at the beginning of the year.

According to United Overseas Bank (UOB), more people are enquiring about and purchasing gold investment products, such as gold bars and coins. The bank has seen a 20 per cent increase in gold coin purchases compared to earlier this year.

Citybank said interest in gold investment accounts and gold-related funds has also doubled since last year.

According to the World Gold Council, the Asian appetite for gold is strong.

Analysts said demand for gold was fairly weak in the 1990s, but it has become an increasingly popular investment option in the last few years.

The sustained interest in gold as an investment option has also led to its prices being more sensitive to market movements.

Vasu Menon, Head of Content & Research with OCBC Wealth Management, said: "In the short term, its hard to make predictions where gold is headed. Gold is a very volatile asset class. Investors who want to buy gold must remember that number one, they must have the appetite for risk."

-CNA/ac

Johor Sales!!!!

2011-08-22T17:32:00.001+08:00

http://www.bigsale.com.my/

Today, stumbled upon this gem when I deviated from my usual searches on Nusajaya. I guess this is probably a convenient way to check out the latest deals at the comfort of your home or mobile.

Do share your lobangs (opportunities) if you have any. Everyday is GJBS! (I think most Singaporeans will know what this means...lol!)