National Instruments largest R&D facility outside US to be set up in Penang

KUALA LUMPUR: US-based National Instruments (NI) is aiming to set up its largest research and development (R&D) facility outside the United States with the expansion of its facilities in Penang.

“Currently we are operating in a rented space. With this expansion, we will have our own infrastructure to support our business in the region,” NI Penang managing director Raj Purushothaman told a press briefing on the expansion plans of the company yesterday.

The company also aims to increase its manufacturing capacity to support an additional US$1bil in the company's growth.

Raj: ‘With this expansion, we will have our own infrastructure to support our business in the region.”

The capacity would add another 40% to its global hardware manufacturing capacity which would include the manufacturing of academic products, embedded controllers, industrial chassis and modular instruments.

Its manufacturing arm is slated to be operational in the fourth quarter.

In tandem with the planned five to 10-year expansion, the company is aiming to expand its local headcount to 1,000-1,500 employees from its current 165.

This includes 250 engineers in electrical, mechanical and engineering management fields.

The technology hardware and software provider began operations in Malaysia in 2009 with an US$80mil capital investment.

Raj said as part of the planned investment, the expansion was envisioned to transform its facilities in Penang to be the Asia-Pacific hub, serving its clients in the region and elsewhere.

“It will be an integrated operations centre, which manages R&D, manufacturing, supply chain, product distribution, product services, IT and finance,” he said.

Its expansion includes the construction of a 314,000 sq ft office and manufacturing space on a 23-acre site in Batu Maung, Penang.

Its manufacturing arm slated to be operational in the fourth quarter would have the capacity to support an additional US$1bil in the company's growth.

NI is among other American multinationals that have established its presence in Malaysia such as Honeywell, Dell, Intel, General Electric, Western Digital and Motorola.

At the event, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the United States was the third largest foreign investor in the manufacturing sector in 2011 with RM2.5bil.

The investments were mainly in electrical and electronics, chemical and chemicals products, transport equipment and wood & wood products.

“The electrical and electronics (E&E) industry continues to be a major contributor to Malaysia's gross domestic product growth . For the period January to May 2012, E&E exports were 32.27% of the total country's exports and 48.73% of the manufactured exports,” he said in his speech delivered by Malaysian Investment Development Authority (Mida) chief executive officer Datuk Noharuddin Nordin. - The Star

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Call for Penang gov't to right the wrong over Sg Ara Hillslope Project

GEORGE TOWN (July 24): The Local Government Bureau of Penang Gerakan today urged the state government to right the wrong on the planning permission approval for the hillslope project in Sg Ara.
Its chairman, Teh Leong Meng, said the state government and Chief Minister Lim Guan Eng should take immediate action to solve the issue and relieve Sg Ara residents of what he claimed was further suffering.
The residents of Sg Ara have set a precedent by being the first to challenge the Penang government's decision in the Appeals Board hearing on July 18.
Teh said the residents suffered because they have to collect money for legal expenses to fight the case through the Appeals Board, and had to constantly worry about the legal cost in a long-drawn legal battle, as well as the safety issue. Teh told reporters today the state government should not let the residents gamble with their lives as the project is on the hill behind their homes.
"Who is going to be responsible for their safety in the long run? Can the state government or the chief minister give a guarantee that there would not be another Highland Towers tragedy?" he asked.
(The Highland Towers refers to three blocks of apartments in Hulu Klang, Selangor, one of which collapsed on Dec 11, 1993, killing 48 people.) Teh said the chief minister should exercise his powers as the chairman of the State Planning Committee (SPC) and instruct the Municipal Council of Penang Island (MPPP) to revoke and withdraw the planning permission approval given to the developer of the hillslope project in Sg Ara.
"Since the chief minister said that the state government has not approved any development on contours higher than 76 metres, that means the SPC has not approved the planning permission.
"Therefore, the approval given by the MPPP is null and void," he said. The Sg Ara hillslope project is one of 19 hillslope developments higher than 76 metres and with the slope exceeding 25 degrees that have been approved by the MPPP. — Bernama

北上大马享受汇率差异 狮城人购豪宅当富翁

新加坡22日讯）马币疲弱，加上新加坡屋价居高不下，越来越多已有房子的新加坡人，纷纷北上到大马购买公寓和洋房。
55岁的阿都尔（营运经理）3年前在新山买了一座有5个房间和一个游泳池的大洋房，他告诉记者：“在这里，我犹如百万富翁”。
他去年入伙后，随即把裕廊西的4房式组屋卖掉。
他另外花了33万元(约82万8658令吉)装修洋房及加建游泳池 - 光华

Malaysia's real estate remains a preferred investment choice

PETALING JAYA: Despite the overall gloom and doom in the global economy, a glut of condominiums and cooling measures by Bank Negara to deter speculation in the overall property market, the general observations on the ground indicate strong sales for certain segments of this market.

This underscores the fact that real estate continues to be a preferred investment choice in the current economic climate.

The latest report by Knight Frank Real estate highlights 1st half 2012said there were five completions in the first six months of this year, bringing the total cumulative supply in Kuala Lumpur to 29,882 units.

Another five developments are expected to be completed in the second half this year. This will bring the cumulative supply to 31,163 units. These numbers cover the high-end condominium market priced RM500 per sq ft and above.

These new completions, coupled with existing supply and weak occupancy rates, are expected to put further pressure on the rental market.

The report also noted that smaller sized apartments and SoHo units were becoming a mainstay in the Kuala Lumpur condominium scene and the dual-key concept was steadily gaining acceptance and popularity among developers and purchasers.

These two over-riding trends in the high-rise residential sub-segment help add product diversity, it said.

Dual-key units comprise a studio apartment unit attached to an otherwise standard condominium unit. Such units come with two separate doors with one leading to the studio unit, and the other to the adjoining unit, bonded with a common foyer.

While there were multiple SoHo developments being launched, three dual-key concept residences entered the market and all three recorded good take-up rates, the report said.

The recent increase in the number of new launches offering smaller units in established locations and popular suburbs is driven by the scarcity of land and high land costs, as well as pressure for developers to keep end-pricing affordable. Although the units are small, on a per sq ft basis, the price will be higher than the larger units.

As for pricing, in the primary market as when buyers buy directly from the developers, the high-end condominium sector saw a slight drop in average asking prices in the city while the fringe and suburban areas generally demonstrated a stable trend.

Similarly, there was a notable decline in transacted prices in the city's secondary market where buyers buy directly from owners instead of from developers. Projects located on the fringes of the city, however, saw more sales and leasing activities.

DTZ Research report for Kuala Lumpur Q2 2012: Resilience across all sectors said the overall residential market was “stable with average capital and rental values experiencing marginal increases.”

“The outlook is, however, more cautious as sentiment is clouded by both internal and external issues, including those of a political nature,” the DTZ report said, adding that the market was expected to experience a period of slower growth going forward.

In the office segment market, the market was relatively stable despite a spike in new supply.

Menara Felda will be the new corporate headquarters of Felda Land Development Authority which has just listed Felda Global Ventures Holdings in one the of biggest initial public offerings internationally for the year.

Menara Darusalam, a mixed development, will house the new Grand Hyatt Hotel. With several recently completed office buildings in the vicinity such as Menara Worldwide and Menara Prestige still filling up spaces, the new additions will add pressure on rents, DTZ report said.

Prime office rental rates remain stable and resilient at the moment, averaging RM6.23 per sq ft per month, while top tier offices are commanding about RM7.90 per sq ft per month, the report said.

“With a substantial pipeline of supply completing in the second half of this year and next year, rents are forecast to fall,” the report said.

Knight Frank said the cumulative supply of office space in the city stood at 47 million sq ft and will increase to 48.6 million sq ft with the completion of three new offices by the end of this year. The supply in the city fringes today stands at about 17.5 million sq ft. Some 4.1 million sq ft will be added to the fringes by the end of next year. - The Star

AWLU project to be built on state land

BALIK PULAU: Residents of Kampung Genting here are relieved after plans to acquire their land for the building of a women’s university were called off.

Chief Minister Lim Guan Eng said the Asian Women’s Leadership University (AWLU) Project had agreed to a 40ha land in Jalan Pondok Upeh here instead.

“We had initially offered them the plot in Jalan Pondok Upeh, along with areas in Batu Kawan, but they rejected them and chose Kampung Genting,” he told Kampung Genting residents at the South-East District and Land Office here yesterday.

“We made a final appeal to them after a meeting with the residents earlier this month and fortunately, a win-win situation was reached.”

Lim said that he understood the grouses of the 90-odd landowners, who would have been affected, as much of the area represented land that had been passed down through generations.

The Pondok Upeh site consists of 40ha state land and no acquisition or dislocation of residents would be needed, he said.

Lim said that a state gazette for the acquisition of the Kampung Genting land would be allowed to lapse when it expires on Aug 5.

“AWLU is a world-renowned institution of higher learning from the United States that is famed for its liberal arts and leadership curriculum.

“Although they have been offered other sites, they have chosen Malaysia as their host country and Penang as the location for their campus.

“Their presence here will greatly benefit the future of our children and make a name not only for Penang, but the whole country,” Lim said.

He said the not-for-profit project was a Federal Government initiative that had the support of the state and was expected to bring in RM492mil in investments and create 190 high-value jobs.

According to AWLU Project’s website, the campus is scheduled to open in September 2015. - The Star

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.