Be ethical, Chor urges property sector

KUALA LUMPUR (Dec 1): Housing and Local Government Minister Datuk Seri Chor Chee Heung has urged all parties in the property sector to always put the interests of the buyers first, by ensuring quality and timely delivery of their developments. Chor said all stakeholders, from bankers to project consultants and property consultants, should uphold their professional code of ethics in executing their respective responsibilities. "I urge all professional bodies involved directly or indirectly in the property segment to remind their members to be ethical at all times on their exercise of responsibilities. "Bankers who provide financing should only disburse funds based on actual work carried out on site, while developers should only use the funds from the banks and their project accounts for legitimate and allowable expenses," he told reporters after launching the official website of Rimbun property project by Amphil Corporation Sdn Bhd, here on Thursday. Chor said project consultants, on the other hand, should only certify payments when real work has been properly carried out, and at the same time provide true and fair property valuations and market trends to house buyers. "These measures will address the current shortcomings in the industry and ensure continuous and sustainable growth of the property sector," he said. Chor said the government can always regulate the property players and relevant bodies by means of a bill in Parliament. "However, as the world is moving towards liberalisation and deregulation, any act of over-regulation would stunt the growth of any business activity including the housing sector. "It would also drive away potential investors," he said. — Bernama

E&O: Hot property in Penang

Eastern & Oriental Bhd (Dec 1, RM1.41) Maintain outperform at RM1.39 with revised target price of RM2 (from RM1.98): Although annualised 1HFY12 core net profit was only 30% of our forecast, it is in line as future quarters should be stronger. We make no change to our target basis of 30% realisable net asset value (RNAV) discount or "outperform" call. But we adjust our target, RNAV and earnings per share for housekeeping and ICSLS conversion. E&O sold RM380 million worth of properties during 1HFY12, 52% more than its RM250 million sales in 1HFY11. Unbilled sales leaped from RM650 million a year ago to RM880 million. The bulk of 1HFY12 sales came from Penang, with the remainder coming from unsold units of St Mary Residences in Kuala Lumpur. As expected, E&O did not propose a 2Q dividend, in line with last year's practice and our expectations. Take-up rates for both the St Mary Residences and Phase 1 of the Penang Quayside condos have reached 80%. Phase 2 of the Penang condos will be launched this month and indications are that demand should be strong. Although minority shareholders may be disappointed that there was no general offer, we view positively the recent emergence of Sime Darby Bhd as a 30% shareholder of E&O. This provides E&O with a strong parent which could come in handy for the upcoming Phase 2 of Seri Tanjung Pinang. Also, we would not discount the possibility of joint ventures between the two companies as Sime Darby has 37,000 acres of undeveloped land with an estimated gross development value of RM100 billion. E&O's expertise in high-end residential projects will provide a good fit with Sime, especially for its landbank in the Klang Valley. — CIMB Research, Dec 1

Chua slams Pakatan govts over high rates for land conversion

SEPANG: Property prices in Selangor and Penang will keep escalating if Pakatan Rakyat continues to impose high land conversion premiums on housing developers in these states. MCA president Datuk Seri Dr Chua Soi Lek said the state governments in Selangor and Penang had placed high premiums on land conversion. He added that people should not assume that this only affected developers because they would in turn transfer the cost to housebuyers. “Because of this, property prices will continue to increase. If this goes on, only the rich will be able to live in these states,” he said, adding that sand price in Selangor was the highest in the country. “In reality, Pakatan has done nothing for Selangor and Penang this past three-and-a-half years. If there has been any development, it is due to efforts by the previous state governments,” he said after a 1MCA Medical Foundation fund-raising dinner in Sungai Pelek here on Wednesday. Earlier in his speech, Dr Chua criticised the Selangor government for not handing out scholarships equally among the races. “Last year, 1,500 scholarships were given out under Yayasan Selangor. Out of these, only two recipients were Chinese and three were Indians. “This year, 240 student loans were given out. However, only two Chinese and 11 Indian students were offered the loans,” he said. He said in comparison, 1,648 of the 4,000 scholarship recipients this year under the Public Service Department were Chinese. - The Star

Ministry to come down hard on errant developers

KUALA LUMPUR: Housing and Local Govern­ment Minister Datuk Seri Chor Chee Heung has vowed not to be lenient on developers who abandon projects. He said with the passing of the Housing Development (Control and Licensing) (Amendment) Bill 2011 in the Dewan Rakyat on Wednesday, all errant developers would be taken to task. “In the past, some local authorities were slack in the inspection of housing projects and some projects were carried out without approval of the ministry or relevant government agencies,” he said after the launch of Rimbun by Amphil Corporation Sdn Bhd’s website here yesterday. He added that there were 195 cases involving unlicensed housing developers due to this reason. Another milestone: Chor launching Amphil Corporation Sdn Bhd’s new website in Kuala Lumpur yesterday. Looking on is the company’s chief executive officer and director P. K. Poh. So far, 54 errant developers have been taken to court. Chor hoped the amendments to the Act would serve as a deterrent to developers seeking to make a quick buck by collaborating with professionals and bankers to cheat house-buyers. “Some bankers simply issued loans, before the certificate of completion, without checking properly the necessary documents and this allowed some developers to run away with the money without completing their projects,” he said. He said bankers who provided the financing should only disburse funds based on actual work completed on site while project consultants should only certify payments when real-time work had properly been carried out. It was reported by The Star recently that as of Nov 15, 1,308 developers and 4,703 directors of the companies concerned had been blacklisted by the ministry. These developers were involved in offences that fall under four categories – failure to pay compound fines, abandoning of projects, involvement in “sick” or problematic schemes and non-compliance with the judgment of the Tribunal for Homebuyer Claims. Chor said that previously, developers were allowed to ask for discount when they were fined but this would become “a thing of the past” with the amendments to the Act. “Previously, those who made genuine mistakes would be gi­­ven discounts but they will now have to pay the full amount,” he said. - The Star

Greater protection for buyers with new housing Bill

KUALA LUMPUR: The Housing Development (Control and Licensing) (Amendment) Bill 2011 with a new provision that developers who abandon their projects can be jailed has been passed in the Dewan Rakyat. Housing and Local Government Minister Datuk Seri Chor Chee Heung said that Section 18A provides for errant developers to be fined not less than RM250,000 but not more than RM500,000 or jailed not more than three years or both. Currently, Section 22(1) of the Housing Development (Control and Licensing) Act 1966 only provides for housing development company directors to be jailed not less than 12 months but not more than three years as well as fined not less than RM50,000 and not more than RM250,000. “The amendments passed involved eight existing provisions, one new provision and one abolished provision,” he said during the second reading of the Bill yesterday. Chor said the ministry had successfully revived 83 housing projects and was in the midst of reviving 61 projects while another 22 were at an early planning stage of being revived. Another amendment to the Bill was the term “housing developers” under Section 3 of the Bill which now includes private liquidators appointed by the court in the event it takes over the responsibility of failed developers. An amendment to subsection 6(1) set the deposit for a housing developer's licence at 3% of the development project cost, an increase from the current RM200,000 while changes to subsection 6(1)(a) and 6(1)(b) ensure that only developers with strong financial standing are involved in the industry. Section 8A allows individuals to apply for the sale and purchase agreement to be cancelled at any time if there was no continuing development at a project site for six months or more. With the amendment to Subsection 16N(2), the Tribunal for Home Buyers' Claims could now hear cases involving sale and purchase agreements signed between house buyers and unlicensed housing developers while subsection 16AD(1) increases the current penalty rate against developers who refuse to honour the tribunal's award from not less than RM5,000 but not more than RM10,000, to not more than RM50,000. - The Star

Housebuyers at a dead end

IT’S been 10 years and housebuyers of more than 60 abandoned houses in Taman Bukit Permai are still waiting for their houses to be completed. Six abandoned houses along Jalan Bukit Permai 2 were 95% completed and overgrown with weeds. The buyer of one of the six houses, Choo Lee Mae, said she has been waiting for over 10 years. “We are left in a lurch, we do not know who to approach for help. I have given a copy of the sales and purchase agreement to the liquidator,” she said. Makeshift carpark: A car parked inside this abandoned housing project in Taman Bukit Permai. A councillor with the Kajang Municipal Council (MPKj), Lee Kee Hiong, who visited the site with another councillor Eddie Ng, urged the housebuyers to come forward to provide details. “We do not have the contact details of the buyers as no land titles were issued. “This is a complicated case as the liquidator is only in charge of unsold houses,” she said, adding that the council will act as a coordinator. She can be contacted at 03-9010 3137 or leekeehiong@gmail.com or visit her service centre on Mondays, Wednesdays, and Fridays, 8pm-10pm, at 33-2, Jalan Temenggung 9/9. Bandar Mahkota Cheras. Not much have changed since the abandoned project was highlighted in StarMetro (“Task force to monitor abandoned projects”, March 26) eight months ago. “Some of the cars dumped in the area were towed away by council enforcement officers. We have since spoken to the liquidator but to no avail. “The Ministry of Housing and Local Government was notified of this abandoned project but no action has been taken to date,” Lee said. There were even cars abandoned in some of the houses. Forty-five notices were issued to the liquidator under the Street, Drainage and Building Act 1974, Section 46(1)(e) for having derelict vehicles in any public place. Lee said she would check with the Customs Department if the cars were brought into the country illegally. Chong Nyit Seng was furious that his abandoned house was used as a dumping ground for cars. He claimed that a makeshift porch was also erected without his knowledge within the compound to provide shade for the cars. “I did not give permission to have these cars placed here. “Years ago when I first found out that the project was abandoned, I contacted the lawyer who handled the sales and purchase agreement but it was all in vain,” he said. On the issue of abandoned cars, V. Mathevan, who lives in the nearby Taman Desa Permai, said six cars were brought to his neighbourhood on Sunday. He promptly notified Lee. “I’m afraid that more will be dumped here and that it will become a breeding ground for mosquitoes,” he said. - The Star

Solution to stop flooding for good

A LONG-TERM solution involving the widening of the drain in Jalan Arratoon is being planned to overcome floods near Lebuhraya Pykett, Jalan Westlands, Jalan Khaw Sim Bhee and Jalan Anson in Penang. State Local Government and Traffic Management Committee chairman Chow Kon Yeow said that these areas were frequently affected by floods. He said the main cause was the bottleneck when the water flowed down to Jalan Arratoon leading to the sea. “The drain there is only 2.13m wide,” said Chow at a press conference at Lebuhraya Pykett yesterday. As a long-term solution, Chow said that the council was looking into getting that drain widened in the near future. Small and narrow: Chow (right) and some residents checking the drains along Lebuhaya Pykett “We are working on an agreement with the new land owner to provide some space for the council so they can widen the drain,” said Chow. He said that the council was working on two short-term projects to mitigate flooding. “The first one is upgrading the drains along Jalan Burmah from the junction of Jalan Arratoon to SRJK (C) Union. “The project started on Friday and is expected to be completed by the end of next month,” said Chow. He said the second project was to repair the box culverts along Jalan Burmah from Lebuhraya Pykett until the junction of Jalan Arratoon. He added that the cost of the projects was RM173,549 and RM90,044 respectively. “Although we are working on the short-term solutions, we are considering a long-term solution to be completed in three years,” he said. - The Star

NGOs against land swaps

GEORGE TOWN: The Penang Government should use state land as collateral to obtain loans from banks to start proposed mega road and sea tunnel projects. This is better than allowing developers to deal in land swaps and be given the right to reclaim prime land near or off Gurney Drive in exchange for RM8 billion worth of such projects, said Sahabat Alam Malaysia and Consumers’ Association of Penang president S.M. Mohamed Idris. Idris said there should also be a public hearing and an inquiry of all reclamation and mega pro- jects before they were awarded to avoid unnecessary compensation later. Idris said that in Hong Kong and Singapore, the governments reclaimed the land on their own and sold them for higher profits. Idris was commenting on the state government’s proposal to adopt a land swap scheme with developers to build three roads and a tunnel. The roads are a 4.2km road from Gurney Drive to the Tun Dr Lim Chong Eu expressway, bypassing the city centre; a 4.6km road linking Bandar Baru Air Itam to the same expressway and a 12km dual-carriage road from Tanjung Bungah to Teluk Bahang to pair with the existing coastal road. The 6.5km sea tunnel is to connect Gurney Drive on the island to the north of Butterworth. On the proposed RM120mil Escape Theme Park project in Teluk Bahang, Idris said there was no need for such a park in the state. Penang Institute senior research fellow Datuk Dr Goh Ban Lee is also not in favour of the road and tunnel projects, saying they would only bring in more vehicles into the island. “We should look into adding more buses and bus routes to improve public transport. What would a high-cost tunnel do for Penang other than reduce travelling time?” he said. Malaysian Nature Society advisor Kanda Kumar said that if the land was to be reclaimed for the project, the government must ensure that they should not be converted into freehold status. “At least leasehold land will not be given away permanently. If we keep on giving away land and then reclaim some more, the environment will be damaged,” he said. Penang Citizens’ Awareness Chant Group advisor Y.C. Lee said there should be public hearings held for any proposed reclamation or mega infrastructure projects. “Such projects may be sustainable, but there should be a proper study, public comment and feedback on them,” he added. - The Star

槟耗资逾12万种进口树 海墘路将变林荫大道

（槟城28日讯）槟州政府耗资12万7470令吉种101棵进口树，要在2年内将海墘路蜕变成林荫大道。 12万7470令吉栽种101棵树，这意味槟州政府在海墘路栽种一棵树的经费为1262令吉。 周一上午，槟州地方政府委员会主席曹观友行政议员及槟岛市政局主席芭堤雅一行人在红灯角码头一带的海墘路双向道的分界堤上栽种树木，以逐步打造绿化乔治市的宏愿。 曹观友：绿化红灯角码头道路 曹观友议员说，槟岛市政局计划从海墘路（Weld Quay)的《光华日报》旧址到槟岛邮政局总部全长约550公尺的分界堤上栽种101棵树木，以绿化红灯角码头一带道路。 他说，当局选用4种品质优良的进口乔木，即：Bucida Molineti、Gardenia Carinata、Jacaranda Obtusifolia及Syzgium Campanulatum乔木，分批栽种在海墘路分界堤上，每棵20尺高的树之价格为800令吉。 曹观友说，槟岛市政局从本月初开始在海墘路种树，并加宽及加高分界堤，以让树木茁壮成长，2年之内绿叶成荫，美化海墘路。整个绿化经费耗资12万7470令吉，预计将于本月底完成海墘路的种树计划。 他说，为了栽种树木，海墘路的分界堤从原本的1尺半宽度，拓宽至4尺半至5尺宽。高度从原本7寸添高至13寸。并挖深土地一米之深，以让树木稳固扎根。 曹观友透露，槟岛市政局将于明年初在柑仔园，即从加马购物中心前至柑仔园及霹雳路交界处的分界堤上栽种280棵乔木。 他说，槟岛市政局已于去年在沓田仔分界堤成功栽种树木，目前也在华盖街一带的乔治市海湾酒店前的友谊公园栽种树木。 相关照片 ■ 曹观友议员及槟岛市政局主席芭堤雅主持海墘种树推介礼。 ■ (右起）林清和市议员及郑来兴市议员为进口树浇水。 ■ 212万7470令吉栽种101棵树，州政府在海墘路栽种一棵树的经费为1262令吉。- 光华

Tan brothers look to 'conquer' Penang

KUALA LUMPUR: For a while now, there has been speculation about who would partner Ivory Properties Bhd in its multi-billion ringgit Bayan Mutiara project in Penang. That was ended when it roped in Dijaya Corp Bhd. They now plan to build residential and commercial properties on the land, estimated to generate sales of some RM10 billion. This is not their first tie-up. Within the Batu Ferringi tourism belt, Dijaya has a joint-venture project called "10 Island Resort" with Ivory. In Bukit Mertajam, Dijaya has a mixed development project dubbed Aston Villa, in which Ivory is the turnkey developer. But that partnership has overshadowed an interesting fact. Penang has now seen the entry of two highly successful businessmen and both happen to be brothers. Dijaya is controlled by Tan Sri Danny Tan Chee Sing, the younger brother of Berjaya Corp Bhd founder and chairman Tan Sri Vincent Tan Chee Yioun. Barely three months ago, the senior Tan made a comeback to Penang as a property developer after a hiatus of nearly two decades. The Berjaya Group - via Berjaya Land Development Sdn Bhd - signed a deal to buy 22.8ha of prime freehold land within the Penang Turf Club for RM459 million. At the signing ceremony in Penang, Vincent did not mince his words in expressing his displeasure with the previous state government. Vincent's approval of the current state administration is a strong signal to other developers that the island state has plenty of potential. And this probably explains Danny's continued interest. The latest alliance with Ivory is a very big undertaking and one which will ensure its presence in the state for many years to come. Danny, the man behind Petaling Jaya's Tropicana Golf and Country Resort, will have his hands full with the latest venture. As for Vincent, he did not discount the possibility of enlarging Berjaya Group's footprint in Penang. Together, the Tan brothers will be a force to be reckoned with in Penang. marinae@nstp.com.my - Times Read more: Tan brothers look to 'conquer' Penang http://www.btimes.com.my/Current_News/BTIMES/articles/monvy/Article/#ixzz1f3VcJx6S