More strategic plan required to meet need for affordable housing

PROPERTY prices are a favourite subject for conversation among Malaysians.

It is to be expected. Everyone is looking to buy a house or apartment, either to have a roof over his head or to sell it for a profit at some point in the future.

To have a house or apartment of your own has become a must for most of us Malaysians today, a condition further encouraged by the Government's home ownership programme.

On the face of it, this is a good policy. Everyone should be given the opportunity to have a place of his own, a home that offers a decent level of comfort and well-being, yet within his means.

However for the average Malaysian, particularly those living in or around urban centres, the prices of property have risen so high that they can no longer afford to buy.

As an expert in the real estate sector in Malaysia pointed out recently, the prices of homes in a city such as Petaling Jaya have risen more than 30 times in the past 40 years. In the same period, salaries have gone up a mere 10 times.

As a result, people are now expected to downgrade from a landed property to an apartment, usually. Even so, people are paying more in monthly instalments and taking longer up to three times to fully repay their home loans. In short, if you buy an apartment today, you will probably spend the rest of your working life paying for it.

As a result, they also end up paying a lot more in interest to the bank, compared with their parents or grandparents 30 or 40 years ago.

Given that 76% or five million households in Malaysia have incomes below RM5,000 a month, many homes on the market today are priced beyond their affordability.

In addressing this issue, the Government has imposed a quota for low-cost housing projects. Private developers are expected to chip in by setting aside a certain percentage of their projects for low or medium cost homes.

More drastic measures have recently been proposed. For instance, the Kedah state government is mulling a proposal to require private developers to allocate up to 60% of their projects for affordable housing, up from 30% now.

Over and above this proposal, the PAS-led government is also mulling the possibility of restricting the sale of property in certain districts in Kedah to Kedahans only. The state believes this move would reduce speculation on property prices, thus ensuring that houses remain affordable for Kedahans.

Such proposals seem ill-conceived, to say the least. On the whole, be it at the federal or state level, a more strategic plan is necessary to meet the housing needs of those in the lower to middle income group.

At the same time, there must be room for a dynamic property market where investors can expect some returns for putting money into property.

Developers are well aware of the need to ensure that all Malaysians have equal access to housing that they can afford, and for the most part are supportive of any move to this end.

However, it must also be noted that for developers, other concerns come into play when planning and deciding on new projects, such as types of houses, price range and location.

As business entities, property development companies have to meet profit expectations of shareholders as well, and building homes and selling them at RM42,000 or below is certainly not going to help meet those expectations, especially in the urban centres where land costs are very high.

Another consideration is mobility. For the lower income group in particular, the ability to get around for work, school and other daily necessities at an affordable price is essential.

For the most part, it does not make sense for them to buy a low or medium cost home in a locality that is not served adequately by cheap public transportation to enable them to go to work or for their children to go to school.

For them, buying a car may not be an option, and taking the taxi to work is a luxury many cannot afford.

For these reasons, it makes sense for the Government to build affordable housing for the lower income group, with contributions to subsidise these projects funded by private developers.

Developers would have had to spend money anyway if they are to meet the quota of affordable housing in their respective projects. The money would be better used if it is channelled to the Government for a more strategically planned housing programme.

The Government could also ensure that the right infrastructure be put in place to ensure that those who buy into the low or medium cost homes that it is building also have access to affordable public transport and other facilities. With almost unlimited land bank, the Government could easily build a school within the development as well, thus meeting another essential need.

By taking full responsibility for affordable housing, the Government could also ensure that they are well maintained. For the most part, low-cost apartments in Malaysia are not well maintained.

If residents or owners fail to pay the monthly service charges regularly, there would not be sufficient funds to ensure proper maintenance. As a result, many of such apartment blocks end up looking like slums in just a few years.

Any attempt to control property prices runs against the free-market concept that we practise. For most of us, even those who buy a house to live in for the long term, putting money into property is a form of investment.

When we were younger and had just been married, we struggle to pay the mortgage for a house that we believe is reasonably big enough for our spouse and two or three children.

When our children are grown up and on their own, we may decide to sell the house and opt for a small apartment instead. Hopefully the house would have appreciated in value and there would be a decent sum left for our retirement.

Is that too much to expect? - The Star

> Teh Lip Kim is the MD of SDB Properties Sdn Bhd, a lifestyle property company. Bouquets and brickbats are welcomed. Send by email tomd@sdb.com.my.

City&Country : PLB Land keeps its focus on Penang

The weather was fine on the Wednesday morning that we drove to Balik Pulau, about 35 minutes away from the Penang International Airport. We were fascinated by the rows of old shophouses in the small town centre as we made our way to the site of PLB Engineering Bhd’s Prestige III Central Park City that was just minutes away. Before reaching the show units on the 50-acre tract, we passed several houses built alongside a river with bridges running across it. Definitely not something we see back in Kuala Lumpur.

Ong: Land is scarce in Penang, property prices are high but people still want to buy properties here

Datuk Ong Choo Hoon, founder and group executive chairman of PLB Engineering, greets us warmly upon our arrival and obligingly sits down for a chat with City & Country. PLB Engineering has a market capitalisation of above RM100 million and currently, PLB Land Sdn Bhd — the wholly owned property development arm of the Bursa Malaysia-listed construction company — contributes 50% to group revenue. Ong expects this to grow in the near future.

He says the group is constantly on the lookout for parcels to boost its current landbank of 200 acres. It prefers to acquire land via its subsidiaries, which translates into low initial capital outlay for the land, which in turn enables the developer to offer houses at affordable prices. For example, the land for the developer’s most recent project in Balik Pulau cost a mere RM17.80 psf. Buying via subsidiaries also means decisions can be made faster, Ong points out.

“Our strategy is to focus on property development as a continuous process. I believe that for every project we develop, we need to find two or three more new sites for other developments. We now have enough landbank for projects to last us another eight years. “I believe the affordable housing market is the way to go. Overseas investors, like those from the Middle East and the Chinese, who seem keen to purchase our projects on an en bloc basis, have approached us but we prefer and are confident of the local market,” he says.

As we listen to Ong talk about the company, his passion for and commitment to it become clear, as does the fact that the septuagenarian gets very involved in all the projects under the PLB group. Indeed, he visits all its development sites in Penang seven days a week and actively participates throughout the acquisition, planning and development stages of the projects.

“We started out in 1973 as Kok Hoon Machinery Engineering, specialising in steel foundry and engineering works. We went into construction and later property development in 1999 when a developer was unable to pay us because it was facing financial difficulties. It could not sell the houses, so we took over. Our first project as a developer was a medium-sized one called Taman Delima Indah in Juru, Seberang Perai, Penang. Since then, we have completed about RM600 million worth of properties, mainly in Penang,” Ong says.

Meanwhile, the group’s construction arm has built significant projects in Penang, Kuala Lumpur and Johor for clients such as Permodalan Nasional Bhd, Kumpulan Wang Simpanan Pekerja, Majlis Perbandaran Pulau Pinang and DNP Land Sdn Bhd. To date, it has completed projects worth about RM2 billion. PLB Land has launched several projects so far this year and is looking to launch a few more. The combined gross development value (GDV) of the projects is RM400 million. 

Ong says investors are bullish about the Penang property market based on the response to PLB Land’s projects. For example, its Prestige V project in Batu Maung (GDV: RM70 million) was opened for sale in June last year and has since been fully sold. The mixed-use development, located just 3km from George Town, comprises 6 double-storey shopoffices and 74 double-storey terraced homes priced at around RM800,000 and RM728,000 respectively.

The Prestige brand is used for several of PLB Land’s projects, depending on their location and concept. “Our prices are competitive compared with those in the surrounding developments and we offer different properties to accommodate multi-level family living within the same development. Most of our buyers are owner-occupiers. We do not encourage bulk buyers or speculators,” Ong says.

“Land is scarce on Penang island, property prices are high but people still want to buy properties here. Our buyers are mainly locals. Actually, 90% are Penangites and they buy for themselves.” The buyers are mostly parents wanting to upgrade their own homes or purchase units for their children, or those who are working overseas or elsewhere in the country but prefer to own a property in their hometown. They are also either repeat buyers or would have heard of PLB Land’s projects, Ong remarks.

Latest launch 
The group’s latest township Prestige III Central Park City in Balik Pulau features a three-acre park. Located just 30 to 45 minutes from George Town, Prestige III has a GDV of RM280 million. It offers 198 single-storey and 224 double-storey terraced houses, 30 double-storey semi-detached houses and 57 double- storey shopoffices. Phases 1 and 2 were launched on April 28 while the third and final phases are expected to be launched within two years. Ong says 90% of Phase 1 and more than 50% of Phase 2 have been taken up. “Our Summer Villas — a part of Phase 1 that consists of 40 double-storey semidees — were sold within a week.

An artist's impression of 2-storey terraced houses in Prestige III Central Park City in Balik Pulau

We offered early bird rebates of RM20,000. An interesting feature for Prestige III is the three-acre open space that has jogging tracks and dancing squares. We have landscape professionals looking into the plans. Prestige III is also the only development in the area with a river. We are looking into building piers so our residents can do some fishing,” he adds. Prices for the two types of Summer Villas start at RM618,000 while the terraced houses in Phase 1 were sold for about RM500,000.

An artist's impression of semidees in Prestige V in Batu Maung

In terms of capital appreciation in PLB Land’s completed projects, Ong cites the 2-storey terraced homes in Prestige Jelutong, which were sold for RM800,000 in early 2010 and are now changing hands on the secondary market at RM1.4 million. That aside, the terraced houses in the first project under the Prestige brand — in Teluk Kumbar — were opened for sale at RM468,000 at a preview (no launch) in 2008 but were recently transacted on the secondary market at RM700,000.

Upcoming projects

An artist's impression of PLB Land's condominium in Sungai Nibong, which will be launched by 1Q2013

PLB Land is looking to launch several projects in Penang — on the island and the mainland — by the end of the year or early next year. A condominium in Sungai Nibong is slated for launch either in 4Q2012 or 1Q2013 and comprises 98 apartments in a 16-storey tower. It is said to be the first project approved in the state government’s efforts to increase the density of property developments in Penang. The project has an indicative GDV of RM72 million and the units have built-ups of 1,200 to 1,500 sq ft. So far, says Ong, it has attracted about 3,000 registrants.

In September, PLB Land will be launching a few smaller projects, such as a light industrial development offering only 10 units in Mak Mandin, Prai. The 2.8-acre project has a GDV of RM11 million and its units will have land areas of 8,000 to 10,000 sq ft. Another industrial construction is planned for launch at the same time in Auto City, Juru, Butterworth. This three-acre plot with a GDV of RM17.54 million will comprise 10 light industrial units as well.

Planned for next year is a 70-acre mixed-use development in Paya Terubong, which will be launched in a few phases. The first, which has an estimated GDV of RM342 million, sits on 14.8 acres. Plans for the phase include 1,200 apartments with a built-up of about 1,000 sq ft and an indicative price of RM285 psf. The second phase may comprise bungalows, semidees and condominiums.

Also in the pipeline is an apartment project in Zoo Road in Ayer Itam, close to the Kek Lok Si temple. The developer hopes to launch the project in December next year and plans 200 units with an indicative price of RM400 psf each. Another project will come up in Teluk Kumbar, in which the developer plans 68 double-storey terraced houses and semidees and 10 double-storey shopoffices with an indicative GDV of RM47 million.


This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 916, June 25-July 1, 2012

Eye on slope safety

Loss of natural heritage is one of the reasons for the concerns voiced by residents and NGOs in past weeks on Penang’s hillside development.

And this is a legitimate concern – natural heritage sites contribute greatly to the aesthetics and identity of a city. They are what makes a city interesting and unique; in short, they give the city its character.

This is needed given our country’s penchant for new urban cityscapes that may become generic and amorphous in the name of being “modern” – if not careful, the cityscape of a conurbation in Malaysia could look much like another in, say, North America.

Aside from the heritage and aesthetic aspects, the sense of being close to nature and having a green haven close to home adds to one’s quality of life.

There is another facet to the quality of life criteria – the sense of security and safety in one’s own home. Residents worry about the stability of the slope next to them, but this should not be the case. Public safety is a right that is articulated in Local Agenda 21, a programme run by the United Nations to encourage sustainable development.

This leads to the question of how safe Penang’s slopes are. The Penang hillside guidelines serve as the main reference when considering planning approval for hillside development applications.

It does this by viewing slope activities in three stages: design, construction, and maintenance. And running throughout all three stages is another important activity: communication, which seems to be limited to engineers and approving parties, but should include the communities as eventually they will become the slopes’ end users.

In the first stage, design errors could arise due to inadequate ground investigation or a lack of understanding of engineering analysis and design. The guidelines ensure that such errors do not arise by making sure that only professional engineers with years of geotechnical experience are vested with the responsibility of slope design.

Another safeguard measure is the requirement of an independent checker – a third party that reviews the design proposed by the project’s geotechnical engineer.

The independent checker and geotechnical engineer cannot be from the same firm to safeguard against conflict of interest. This is good, as there will be another set of “eyes” to make sure that all considerations are taken to ensure slope safety.

The second stage – construction – is enforced through the requirement of conducting regular site inspections. This is critical, as measures that sound good on paper in environmental impact assessments (EIAs) or erosion and sediment control plans (ESCPs) sadly do not get adequately carried through in implementation. This gives rise to a plethora of problems outside the boundaries of the project site, such as excessive sedimentation running off into nearby water resources such as streams or rivers, or run-off of chemicals and other compounds from the construction site polluting the surrounding area.

Everything in nature is connected, so that activities within the confines of a slope construction project can affect the surrounding ecosystem around it.

Maintenance is also important but is woefully neglected by many of us. To avoid slopes that are beautifully designed and constructed from falling into conditions of derelict neglect over time, the guidelines require that new slopes come with maintenance manuals that tell you important features and facts, how to inspect the slopes, and any special features that the slope owner should be aware of. It’s just like the medical record that your doctor keeps on you so that he knows your history.

But perhaps more importantly, there must be good communication with the residents who will live with the consequences of the slope being built for years to come, as well as the general public.

We know that developers and communities can come to an amicable understanding: a couple of years ago, there was a massive slope project involving three developers and an existing community of 5,000 condominium residents in the Klang Valley.

Initially, there was an uproar over the perceived “less than transparent” manner of communication by the developers. It resulted in petitions and hearings at the local authority over a span of months.

When the developers realised that all the people wanted was to be informed of what was happening near their homes, they took a consultative approach which included residents in discussions regarding subsequent steps of the development as it progressed.

However, not all approaches towards public participation can be the same, as the extenuating circumstances are different, certainly in the case of Penang Island.

The existence of a set of guidelines alone may not put a stop to bad slopes. Good implementation and making sure that measures are carried out is half the challenge, if not more.

Whatever the outcome of hillside development decisions, it is hoped that the good residents of Penang can have that peace of mind if both good planning and execution are achieved in hillside development.

> The writer is the programme director for SlopeWatch, a community programme that advises residents on the signs of landslides and safety measures they can take. The programme began after the 2008 Bukit Antarabangsa landslide when it was discovered that many landslides show signs before they happen. - The Star

Can we afford to buy that property?

There was this small 700 sq ft condominium unit that seemed rather promising for retiring in, priced at more than half a million ringgit. There were no steps to manoeuvre, no slippery floor tiles and the bath was elderly friendly. The project had all the merits for retiring in with nearby amenities.

There was another unit, about RM800,000, which was about twice the size, which, from the start, was way beyond the radar of affordability. So off to the financiers.

The first, after looking at the relevant documents, and assuming the purchase would be for the small unit, looked up and smiled broadly. Doable!

The little heart smiled, relieved! Incidentally, according to ancient Chinese culture and beliefs, it is the heart that is the fountain of wise decisions - and bad ones - not the mind. That is why, the word wisdom (hui) is written with the heart symbol as its base, or root word. Unlike Romanised languages, Chinese is based on pictograms or pictures.

So let's consider the second and bigger unit. Doable! That is shorthand for getting the bank's stamp of approval, that is, getting a loan would not be a problem.

But wait! It will be a stretch after retirement, she cautioned.

A second and third bank officer were consulted. Both gave an outright No! even for the small unit.

The conversation went something like this:

“We could approve it for you. We just lengthen the tenure up to 20 years but you make your repayments based on a 10-year tenure. But you will be the one to suffer when you retire.”

The third officer said: “You can put in 40% of the purchase price, instead of 10%. Or you can stay with 10% downpayment, we stretch your repayment, but six months before the unit is completed, you sell your present house, and put in a big lump sum. But you will be the one to suffer because it is a huge risk you are taking.”

They said it will not be right to earn the commission because they will not be doing their good turn for that day if they were to go ahead with the loan application. They want the good karma to remain with them. Both convey the same message not a wise purchase at all. So perish the thought.

Before parting ways, they brought up several reasons why a property purchase was not the best decision. That was when the moment of truth came, which brought about the sobering effect, came. Being a bit defiant, another type of financier certainly not an Ah Long was consulted; a reputable lender, but one that does not come under the purview of Bank Negara's regulations.

Incidentally, the most recent change in lending criteria when evaluating loan eligibility is based on the net income of applicants, and not the gross income, as was done previously.

This new lending guidelines deduct all personal commitments which may include car and computer loans, personal and credit card loans. It also includes contributions to the Employees Provident Funds and other deductions. The loan application is based on the net figure.

Another broad smile came from the fourth financier. No problem! Doable. Unfortunately, the terms and conditions are not attractive. At that point, the question was not how desirable the property may be, but how much does one want it? Does the end justify the means?

When one arrives at such a metaphorical fork in the road, there will be two sets of emotions. The greedy little heart says, “Go on, take the risk”. And there will be all sorts of justifications you've worked long enough and you deserve it. While wisdom says, “Wait! How will you finance it after retirement? Do you want this apartment at all cost?”

The crux of this rigmarole is this, there are always ways to get around to getting around rules and regulations in order to have what we perceive as “our prize”.

When it comes to the stage when one wants something at all cost despite the hordes of naysayers and the little barriers to entry, then maybe it is best to just walk away.

A property consultant said he has come across clients who want to buy a property so much that they begin to take all sorts of risks. “Buying a property should not stretch one's resources to the point of having to give up the little treats in life,” he says.

So, there goes the little 700 sq ft to somebody else! - The Star

> The saying “when there is a will, there's a way” does not sit well with deputy news editor Thean Lee Cheng.

More strategic plan required to meet need for affordable housing

PROPERTY prices are a favourite subject for conversation among Malaysians.

It is to be expected. Everyone is looking to buy a house or apartment, either to have a roof over his head or to sell it for a profit at some point in the future.

To have a house or apartment of your own has become a must for most of us Malaysians today, a condition further encouraged by the Government's home ownership programme.

On the face of it, this is a good policy. Everyone should be given the opportunity to have a place of his own, a home that offers a decent level of comfort and well-being, yet within his means.

However for the average Malaysian, particularly those living in or around urban centres, the prices of property have risen so high that they can no longer afford to buy.

As an expert in the real estate sector in Malaysia pointed out recently, the prices of homes in a city such as Petaling Jaya have risen more than 30 times in the past 40 years. In the same period, salaries have gone up a mere 10 times.

As a result, people are now expected to downgrade from a landed property to an apartment, usually. Even so, people are paying more in monthly instalments and taking longer up to three times to fully repay their home loans. In short, if you buy an apartment today, you will probably spend the rest of your working life paying for it.

As a result, they also end up paying a lot more in interest to the bank, compared with their parents or grandparents 30 or 40 years ago.

Given that 76% or five million households in Malaysia have incomes below RM5,000 a month, many homes on the market today are priced beyond their affordability.

In addressing this issue, the Government has imposed a quota for low-cost housing projects. Private developers are expected to chip in by setting aside a certain percentage of their projects for low or medium cost homes.

More drastic measures have recently been proposed. For instance, the Kedah state government is mulling a proposal to require private developers to allocate up to 60% of their projects for affordable housing, up from 30% now.

Over and above this proposal, the PAS-led government is also mulling the possibility of restricting the sale of property in certain districts in Kedah to Kedahans only. The state believes this move would reduce speculation on property prices, thus ensuring that houses remain affordable for Kedahans.

Such proposals seem ill-conceived, to say the least. On the whole, be it at the federal or state level, a more strategic plan is necessary to meet the housing needs of those in the lower to middle income group.

At the same time, there must be room for a dynamic property market where investors can expect some returns for putting money into property.

Developers are well aware of the need to ensure that all Malaysians have equal access to housing that they can afford, and for the most part are supportive of any move to this end.

However, it must also be noted that for developers, other concerns come into play when planning and deciding on new projects, such as types of houses, price range and location.

As business entities, property development companies have to meet profit expectations of shareholders as well, and building homes and selling them at RM42,000 or below is certainly not going to help meet those expectations, especially in the urban centres where land costs are very high.

Another consideration is mobility. For the lower income group in particular, the ability to get around for work, school and other daily necessities at an affordable price is essential.

For the most part, it does not make sense for them to buy a low or medium cost home in a locality that is not served adequately by cheap public transportation to enable them to go to work or for their children to go to school.

For them, buying a car may not be an option, and taking the taxi to work is a luxury many cannot afford.

For these reasons, it makes sense for the Government to build affordable housing for the lower income group, with contributions to subsidise these projects funded by private developers.

Developers would have had to spend money anyway if they are to meet the quota of affordable housing in their respective projects. The money would be better used if it is channelled to the Government for a more strategically planned housing programme.

The Government could also ensure that the right infrastructure be put in place to ensure that those who buy into the low or medium cost homes that it is building also have access to affordable public transport and other facilities. With almost unlimited land bank, the Government could easily build a school within the development as well, thus meeting another essential need.

By taking full responsibility for affordable housing, the Government could also ensure that they are well maintained. For the most part, low-cost apartments in Malaysia are not well maintained.

If residents or owners fail to pay the monthly service charges regularly, there would not be sufficient funds to ensure proper maintenance. As a result, many of such apartment blocks end up looking like slums in just a few years.

Any attempt to control property prices runs against the free-market concept that we practise. For most of us, even those who buy a house to live in for the long term, putting money into property is a form of investment.

When we were younger and had just been married, we struggle to pay the mortgage for a house that we believe is reasonably big enough for our spouse and two or three children.

When our children are grown up and on their own, we may decide to sell the house and opt for a small apartment instead. Hopefully the house would have appreciated in value and there would be a decent sum left for our retirement.

Is that too much to expect? - The Star

> Teh Lip Kim is the MD of SDB Properties Sdn Bhd, a lifestyle property company. Bouquets and brickbats are welcomed. Send by email tomd@sdb.com.my.

MK Land to build more affordable housing

IPOH: Property developer MK Land Holdings Bhd says there will always be a demand for affordable houses and it will continue to build them even during an economic downturn.

Chairman Tan Sri Mustapha Kamal Abu Bakar said the company had 2,800 ha land bank on which 114,000 houses could be built and that it would focus on Selangor, Perak and Kedah.

He said MK Land had completed 44,479 houses valued at RM5.6bil, including some 30,000 affordable units. — Bernama

Teng furnishes proof 16-storey block of flats planned for site

NIBONG TEBAL: Penang Barisan Nasional has claimed that it has evidence to prove that the previous state administration had made provision for public housing on the 0.4ha land in Taman Manggis, George Town.

State Barisan chief Teng Chang Yeow showed the media a copy of a 2003 internal memo which was said to have been written by the then director of Housing and Local Government of the State Secretary’s office to the then State Secretary.

He said the memo stated that two blocks of affordable housing units had been originally planned to be built on a 1.97ha (4.93 acre) plot of land at the junction of Jalan Zainal Abidin-Lorong Selamat.

“However, based on a standardised plan that was similarly adopted by the Federal Government, only one 18-storey block of flats could be built then, while the remaining plot of land was to be kept for future development.

“And, according to the architect concerned, a 16-storey additional block could be built on the remaining piece of land,” he told reporters at former Bukit Tambun assemblyman Lai Chew Hock’s office in Lorong Bukit Tambun, Simpang Ampat, here yesterday.

Teng said the Housing Committee in the state executive council back then had further discussed the matter on April 29, 2003 and June 24, 2003, where it agreed that a block of flats under the People’s Housing Project (PPR) with rental should ideally be developed there.

On Thursday, Chief Minister Lim Guan Eng claimed that the previous state administration had not made any provision for public housing to be built on the 0.4ha plot of land in Taman Manggis.

Lim had refuted as “completely untrue” an earlier statement by Teng that the original plans under Barisan Nasional’s administration were for a community housing project on the prime land.

Teng said he also ran an online search with the Penang Municipal Council’s One-Stop Centre and found that the council had received a planning permission application for the construction of a 30-storey building on Lots 305, 306, 313 and 314 at the site.

“So, my original statement is true and I stand by it.

“But, my question back to the state government (now) is whether it is prepared to scrap the 30-storey building and build affordable houses there instead?”

He said the Chief Minister had been quoted in newspaper reports as saying that the particular piece of land had been identified for the construction of a private hospital with 150 car parking lots.

Teng said Lim should make it clear whether the proposed 30-storey building was for the private hospital that he had mentioned.

“There is a proposal submitted for planning permission and they (seem to) claim ignorance. That is why I (had) said don’t twist the facts. If the MPPP president has failed in her duties to inform the state and has probably caused the state to mislead people, she should then be demoted,” he said.

Teng queried that if the particular piece of land could accommodate the proposed 30-storey building, then how could it not be suitable for a 16-storey block of affordable homes? - The Star

State blacklist forced us to sell land, say Umno duo

GEORGE TOWN: Two state Umno leaders, accused of profiting from a land sale, have claimed that they were forced to sell off the land because their company could not get development approval from the DAP-led Penang government.

In denying allegations that their company sold the 4ha land in Balik Pulau within four months for a profit of RM5mil, Bukit Gelugor Umno division head Datuk Omar Faudzar said:

“We were forced to sell the land as our company (Aseania Group of Companies) was blacklisted.

“Every development project must go through the state planning committee chairman Lim Guan Eng. For instance, when we submitted a plan to build semi-detached houses in Bandar Perda in 2011, we were told to pay RM516,000 premium and to build affordable housing,” he claimed in a press conference at the Barisan Nasional new office in Jalan Datuk Keramat here yesterday.

Omar admitted that the land in Kampung Terang was purchased at RM22 per sq ft in October 2010 and sold to a property developer at RM33 per sq ft on Jan 10 this year.

“The land transaction did not take four months as alleged by state PKR vice-chairman Datuk Abdul Halim Hussein. Besides, we were forced to sell the land as our company was blacklisted,” said Omar.

He claimed that three other companies — UDA Holdings Bhd (UDA), JKP Sdn Bhd and Penang Regional Development Authority — were also blacklisted.

“For the past eight years, we have contributed by building 2,033 low-cost and low medium-cost units in Balik Pulau priced between RM25,000 and RM55,000,” he said.

Also present at the press conference was state Umno deputy chairman Datuk Musa Sheikh Fadzir.

Musa, who was named as the other Umno leader, challenged Abdul Halim to speak up against the development of an international school on a 2.4ha site and Asian Women Leadership University (AWLU) on 40ha in Balik Pulau.

Both Umno leaders are shareholders of Maison Height Sdn Bhd, a subsidiary of Aseania which Abdul Halim claimed had sold the land for RM13.5mil to a third party developer in May within four months, raking in RM5mil.

He alleged that the two bought the land from 31 Balik Pulau residents for RM8.5mil in Jan this year. - The Star

Rep: Riverbank settlers need to move for anti-flood works

THE flooding woes in the Sungai Pinang area in Penang will not end until all the residents living on the river’s banks have been resettl-ed to make way for Phase Two of the flood mitigation project there.

Datuk Keramat assemblyman Jagdeep Singh Deo urged the remaining 30% of the 204 affected residents living in 101 structures along the banks of the Sungai Pinang, to vacate their homes.

“We are seeking the co-operation of these residents to come forward and have talks with the Drainage and Irrigation Department (JPS) on compensation.

“The project can only begin once all the residents have been resettled.

“This is the only way to resolve the flooding woes in the area once and for all,” he told a press conference at the site near Sungai Pinang recently.

He added that he hoped the project, which would take at least a year to complete, could start by the end of the year.

The project costing RM150mil is listed under the 10th Malaysia Plan.

It involves the widening and deepening of the river from Kampung Rawa to the Dhoby Ghaut bridge to help alleviate flooding in the surrounding areas.

Jagdeep Singh was earlier quoted as saying that he would shave his head if floods still happened in Sungai Pinang once the mitigation project was completed.

He said that so far, 70% of the residents living along the banks had agreed to the compensation deals.

Jagdeep Singh was commenting on flash floods which affected several low-lying areas recently.

He added that he had urged officers from the district office and JPS to clear the rubbish traps placed along the river more often.

“I was told that the JPS only comes once a month (to clear the traps). This is not enough.

“They have to come more often, at least once a week, as the water level will certainly rise whenever there are heavy rains.

“This will cause flash floods in the area,” he said. - The Star

被槟议长指当“中介”卖马来地 巫统2领袖反驳指民联不专业

槟城20日讯）针对槟州议长拿督阿都哈林揭露巫统领袖当“中介”卖马来地，豪赚500万令吉的指责，巫统槟州署理主席拿督慕沙及武吉牛汝莪区会主席拿督奥玛弗沙反驳，指自己的发展公司在槟州民联政府不公平的对待下，无法进行房屋计划才被迫转卖土地。
指民联建屋条件苛刻
也是槟州国阵竞选主任奥玛弗沙周五召开记者会澄清，他任职总经理的发展公司Asenia Group在2年前以每平方尺21令吉向31户马来甘榜的居民购买土地，欲发展该地段建造房屋计划却遭不公平对待，被州政府提出苛刻条件，要求付逾51万令吉的高额附加地价（premium tambahan），因此迫于无奈之下才转卖。他当时了解自己公司被州政府列为黑名单，才被要求苛刻的条件，而且只有他的公司被这样对待，因为除了他之外，慕沙也是该公司的主席，两人热衷政治活动，属槟州政府敌对阵营，因此成为“政治受害者”。他斥林冠英不专业，应该公平对待每个槟州人民，无论对方是哪个政党人士。
难承担银行利息卖地
他补充，该公司最后唯有以每平方尺33令吉出售有关土地，因该地段是贷款买下，公司无法承担庞大的银行利息。他反驳阿都哈林指提高价格转售，导致槟岛房价上涨的原因。他解释，他公司曾以每平方尺42令吉在白云山购买地段，建造130单位的廉价屋，价钱只介于2万5000及5万5000令吉，因此每平方尺33令吉依然可建造廉价屋，不会导致房价上涨。
他指这只是阿都哈林为了成为浮罗山背的候选人的政治把戏，马来人不会因此被骗，因为对方提出的都不是事实。慕沙斥阿都哈林不用透过欺骗浮罗山背巫裔获取支持，反之应在浮罗山背建更多廉价屋，因为当地房价动不动就上百万令吉。他指自己身为商人，有人要卖土地价钱合理当然可以接受，加上当时并没反对声，反之州政府欲在浮罗山背一块6英亩的土地建国际大学而驱赶人民，人民反对却不见阿都哈林出来为人民伸冤，他挑战阿都哈林若有本事应阻止政府，不然就只是槟州首长林冠英的“奴隶”而已。- 光华