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大马公共工程机构“接旨” 勘察新关仔角亿元公寓

（槟城26日讯）大马公共工程机构（IKRAM）已受指示入场，向新关仔角一项亿令吉计的公寓计划进行工程结构及稳定性勘察行动，以对公寓的入伙向市政局提出建议报告。

槟岛市政局是在有关计划在获取竣工入伙纸前施加条件，要求公寓计划必须先交由大马公共工程机构进场勘察作出报告。槟岛市政局建筑部主任尤端祥受询时说，市政局已针对新关仔角一项公寓发展计划委任大马公共工程机构，要求有关机构针对上述公寓的结构及稳定性向市政局提呈报告。

尤端祥：市局将依建议跟进

他表示，市政局将在接获报告后，作出相对行动，其中将根据报告建议作出跟进行动。唯他没有说明跟进行动的详情。此外，尤端祥说，市政局工程部也将针对计划作出密切的监督行动。在此之前有关计划也曾作出一些相应措施。

另一方面，据来自发展商消息向本报证实，来自大马公共工程机构已到场勘察，同时发出有关计划也按照指示进行，符合相关规格。目前，公司也在等候来自市政局的公文，以便公寓最终可获入伙。光华

教育地改为屋业发展州议员反对 10亿发展计划受阻

（槟城24日讯）发展商拟议将一块收购的教育地皮改为屋业发展地面对阻力，造成一项10亿令吉发展计划过关不易。

在丹绒武雅的一项占地35依格的私人屋业发展计划，因其中一片占地两依格的地皮从原有教育地用途拟改为屋业发展地，以致遭来州议员反对，并坚持要求将保留为教育地，以作为未来开办国民型中学规划用途，成为丹绒武雅北区第一所国民型中学。

知名发展商“实达集团”（SP Setia）是在本月初，向槟岛市政局提呈其在丹绒武雅占地35依格地皮的发展大蓝图（Masterplan），有关计划发展总值（GDV）达10亿令吉，兴建高楼公寓、低高度豪华公寓，及店屋，计划下料将建造上千单位，计划称为“实达生态森林”（Setia Eco Forest），为实达另一项追求生态环保的屋业。

郑雨周：针对数点提出观点

上述地皮座落在水池路的特殊学校不远处，即斯里哇芝嘉顿慕尼哇拉印度神庙后方大片土地。实达集团是于今年年中，耗资3亿令吉分别向两家公司买下35依格土地，原拟大展拳脚，不料因为教育地以及其他因素，包括衔接路的交通规划及密度等因素，招来丹绒武雅州议员郑雨周反对。- 光华

Private retirement schemes – look before you leap

IN April this year, a new chapter opened in personal financial planning for Malaysians when the Securities Commission (SC) gave the go-ahead to eight institutions to operate private retirement schemes (PRS).

The private pension industry is intended to complement the Employees Provident Fund (EPF) by encouraging the public to add to their compulsory savings under the EPF, which is inadequate to ensure a sustainable retirement income for a large segment of Malaysians.

It also helps the self-employed to build up their savings, and encourages employers to provide extra benefits for their workers beyond their mandatory contribution.

The introduction of PRS is an exciting milestone for Malaysia's pension industry and a long-awaited savings opportunity for middle-income earners.

The scheme offers an additional income tax relief of RM3,000 on top of the existing RM6,000 tax break for EPF and life insurance contributions. This incentive alone should motivate people to participate.

Even with the best of intentions investing can be wrought with challenges. Experience shows that Malaysian investors often neglect to prepare themselves for the ups and downs of investing.

A good example is the unit trust industry, which is littered with cases of investors who jump in without being adequately informed, run into difficulties and have to bear irrecoverable losses.

Much work needs to be done to educate potential investors about the range of options before them and the ramifications of their decisions.

All parties including the regulators, fund providers, agents, advisers, and especially the investors themselves have a role to play in creating a well-informed public.

Investors need to be educated regarding the pros and cons of the PRS products in order to choose funds that match their retirement goals and risk appetites. To protect their best interests, investors should bear in mind five key points:

Quality of a fund's assets

First, they should be aware of the quality of the underlying assets in the fund and the risks involved in investing in those assets.

Unlike the EPF, where the contributors' money is protected, your savings in the PRS may or may not bear fruit, depending on how the fund performs.

If investors are not well informed, they may act out of fear when they find their funds are making losses. This could happen, should the marketing of the PRS funds dwell on the potential benefits of the investment rather than provide a balanced forecast outlining potential market conditions and risks.

Many investors do not know what steps to take when a fund underperforms. Many sit on their investment, hoping that one day it will recover. However, in many cases, a sinking ship is unlikely to recover. In such a situation, it is better to shop around and switch funds to another offering a proven track record and return potential.

To illustrate, when selecting a China equity fund, a best practise approach would be to take the time to choose a first quartile performer and avoid poor performers. Should the fund drop, the investor does not sell his units, because he has already done his research and knows that this is best performance he can expect from a China equity fund.

Compare sales charges

Just like any investment, investors must be mindful of the charges imposed when they enter into a contract. With PRS, potential investors need to be aware of two types of charges imposed by the PRS providers.

The first being sale charges which can range anywhere between 0% and 3%, and annual management fees, from as low as 1% to a high of 2.25%. Suffice to say, potential investors who make the effort to shop around will stand to benefit. Remember that all charges are built into your investment, whether the fund makes a profit or loss.

Meanwhile, investors who prefer professional guidance in making their money-making decisions can access PRS funds through institutional PRS advisers, such as banks and corporate PRS advisers.

These organisations may have contracts with multiple PRS providers which enable them to generate fund comparisons resulting in independent information and advice to consumers.

It is also possible that these entities, due to the volume of business that they command, do not impose any additional charges for their advice and may even lower the sales charge because they are able to negotiate for better terms.

Management experience

The performance of a PRS fund depends very much on the fund management experience. This elementary rule applies to all investment funds. Just as you should look at the fund manager's track record in managing unit trusts, you should also evaluate their experience in managing pension funds.

Some PRS providers have foreign partners with pension funds management experience in Canada, Australia and Hong Kong, whereas some local PRS providers are entering uncharted territory.

Ease of switching

The establishment of a Private Pension Administrator that was set up in July 2012 to protect investors' interests is viewed as a positive development for the pension fund industry. Among other functions, this statutory body supports investors in switching PRS providers.

The rules governing PRS allow investors to switch provider once a year, so that consumers have the choice to switch to another PRS provider when they are not happy with the existing provider.

Quality of servicing

Finally, investors should be aware about the quality of servicing they may receive from the sales representative. If you invest only RM3000 to enjoy the tax relief benefits and your investment is managed by an agent you met stationed at a shopping mall, you should carefully consider whether your account will be managed satisfactorily.

Clearly, a lot of ground has to be covered in order to protect consumer's interest and to ensure the healthy long-term growth of the PRS industry. - The Star

> Yap Ming Hui (yap@yapminghui.com) is an advocator of the new private retirement scheme if all parties are open and transparent. He is a bestselling author, TV personality, columnist and coach on money optimisation. Yap heads Whitman Independent Advisors, a licensed independent financial advisory firm which has helped people to optimise their wealth and achieve financial freedom since 2000.

More pull from serviced apartments

THE serviced apartments industry, which is part of the hospitality sector, is expected to have a greater profile with more players entering the industry and the expansion of seasoned players.

Market leader The Ascott Ltd is on an expansion drive which will go on until 2016. Hotel operators are also tapping into the serviced apartment sub-segment of the hospitality industry, offering guests the option of staying in a hotel or a serviced apartment.

The Ascott group is currently the market leader in the industry in terms of inventory. They account for about 20% of the total 2,500 units in the country. The group is currently undertaking a refurbishment programme to spruce up accommodation facilities.

The growth in the serviced apartment industry is due to greater demand as a result of the various large-scale constructions being undertaken by the Government like the Tun Razak Exchange, the My Rapid Transport (MRT) rail project and the latest developments in the oil and gas sector, industry players say.

Says country general manager Tony Ho: “Foreign direct investments are on the uptrend. Large-scale constructions in the form of Tun Razak Exchange and new developments in the oil and gas sector mean new construction teams will be coming in. The last two years have also seen a growth in tourism. This means long-term staying guests are expected to increase.”

National oil company Petroliam Nasional Bhd (Petronas) made new gas discoveries off Sarawak recently.

The Ascott group will be increasing its current 573 units to 1,600 units by 2015/2016, about 180% more units offered by the group. The Ascott has three brands in its stable, namely The Ascott, Somerset and Citadines, each of them targeted at different markets.

The Ascott brand is targeted at senior management, Somerset for mid-management and business executives and Citadines’ guest profile is the independent and tech savy traveller. Between 70% and 80% of its guests are from the oil and gas sector.

“While the hotel industry attract guests who stay between three and four nights, those who opt for serviced apartments may stay for more than a year,” he says.

The serviced apartment propostion offers cooking facilities and families have an option of having a suite comprising two or more rooms.

There are currently about 2,500 pure-play serviced apartments in the country and include the likes of PNB’s Darby Park, Wing Tai’s Lanson Place, Fraser Place, Micasa Suites, Park Royals’ One Residency, Pacific Regency All Suites Hotel, Garden Residences and Prince Hotel and Residences.

The Singapore-based hospitality player has also invested about RM30mil in refurbishment of The Ascott in Jalan Pinang. This is scheduled to be completed by the middle of next year. A second Ascott will be opening in the third quarter of next year in KL Sentral. Ascott is a wholly-owned subsidiary of CapitaLand Ltd, one of Asia’s largest real estate companies.

Its first Citadine will be opening in Kuching this month and its second Citadine will be opening in Cyberjaya by end-2014 or 2015, Ho says.

It will also be expanding its Somerset brand to include a third Somerset Puteri Harbour in the first quarter of 2014. The group currently has Somerset Ampang and Somerset Seri Bukit Ceylon. A fourth Somerset is scheduled to be opened in Damasara Uptown by 2015 or 2016.

Other than Somerset Ampang which is 100% owned by Ascott, the group owns 50% of the Ascott in Jalan Pinang and Somerset Bukit Ceylon, Ho says, adding that the company will be managing and operating the new premises and will not own them.

The Eastern & Oriental (E&O) group has also opened its first serviced residences at its St Mary Residences development in the city. Although it is no newcomer in the hospitality industry – it owns and operates Lone Pine Hotel and the E&O Hotel in Penang – E&O Residences will be the group’s first serviced residences.

Says Jamie Case, chief operating officer of Eastern & Oriental Hotel Management in an email: “For the E&O group, this will be an extension of the group’s expertise in hospitality management.”

“The additional capacity is in tandem with the growing demand for serviced residences,” Case says.

“With the unfolding of the Economic Transformation Projects and the Greater KL initiatives, there will be more opportunities in the city which will in turn attract more business professionals and expatriates to fuel the demand for such accommodation,” he says.

The Synod of the Diocese of West Malaysia or the Anglican Church owns the land where the St Mary Residences development is sited. The Synod then selected E&O, through an international tender process conducted by property consultants DTZ Nawawi Tie Leung to operate the 200-unit serviced residences.

“We are targeting 60% occupancy in the first year,” says Case, adding that E&O’s target audience includes both global business and leisure travellers on an extended stay in the city.

The serviced apartment concept also seems to getting popular in Malacca. Swiss-Garden International Hotels, Resorts & Inns recently launched The Shore in Malacca, which combines both a hotel and service apartments. These serviced apartments are open for sale to the public and hotel operator will manage them on behalf of the owners in renting them out.

Its corporate marketing communications manager Linda Evelyn Wongsays the The Shore Tower 1 has achieved 75% sales this month.

Hospitality trend has evolved over the past decade “with an increasing demand for serviced apartments from both the leisure and business segment.” She says this trend of combining a hotel and service apartments is expected to continue in key cities because leisure travelers are now opting for accommodation that provides spacious homely comfort while business travellers are seeking space, privacy and modern facilities yet complemented with refined hotel services.

A strong factor pushing hotel operators to offer the serviced apartment proposition is the profit margin, which is 50% compared to a hotel’s 35%.

The average rate for a four-star hotel in Kuala Lumpur is RM250++ and for a service apartment in Kuala Lumpur is RM330++. In Malacca the average rate for a four-star hotel is about RM200++ and for a serviced apartment is RM250++. - The Star

House-buyers beware of DIBS

OF late, there have been a few housing developers who proudly advertise that the sales of their product are offered are with “interests payment borne by developers”. Such schemes are known as DIBS, that is developers' interest-bearing scheme.

A particular one even boldly states that house-buyers make no payment until due vacant possession of the said houses.

It entices potential house-buyers that all they need is to pay the requisite downpayment of 10% upon signing the sales and purchase agreement (SPA) and the balance thereof will be financed by their panel banks/financial institutions.

Some even have the audacity to equate the same with the 10:90 concept of built-then-sell (BTS). One even goes as far as to advertise the mode of payment as 5:95 model. The connotations in all these advertisements are that buyers do not make any progressive payments until the houses are completed and ready for vacant possession.

All these advertised “schemes” of payments are nothing more than loan packages. Although the advertisement states “no payment until vacant possession”, in reality the buyers' loans are “locked-in” with panel banks/financial institutions and hence, buyers' housing loans are used to pay the developers as they construct the houses.

It is based exactly on the current sell-then-build (STB) or progressive payment formula. This formula has got so many house-buyers into trouble when the houses they buy are abandoned by the developers.

The only difference in the advertised system is that the interests towards the progressive payments are shouldered, absorbed and borne by the developers. Buyers still have to secure their end-financing housing loans as soon as they sign the SPA. Buyers are still responsible to the banks and financial institutions for the loans whether the houses are delivered or not. BTS 10:90 model

This is far different from the real BTS 10:90 concept put in place and encouraged by the Government, whereby the buyers truly do not make any payment except for the deposit of 10% until vacant possession because the end-financing loans do not kick in until the houses are completed with all the certifications obtained and keys with vacant possession are available.

It is a far safer mode of buying houses and this is precisely why the Government is encouraging it and furthermore offering incentives to developers who opt to adopt this mode of selling their products. But it fell short of compelling the industry to adopt this BTS 10:90 concept currently. However, the Housing and Local Government Minister has reiterated that the BTS 10:90 will be made mandatory by 2015.

Vital differences

The vital difference between the advertised DIBS abbreviation and the government-encouraged BTS 10:90 is that, in the advertised DIBS or 10:90 or 5:95 model, should the developer abandon the project (for whatever reason), buyers are left with a partially disbursed housing loan to settle.

The amount varies in accordance with the amount of disbursements made.

The primary borrower is still the buyers and that it is the sole responsibility of the borrowers/buyers to continue with the proper conduct of his loan from the financiers.

Banks have not been known to be sympathetic to victims of abandoned projects.

The loans still have to be settled house or no house! This is the predicament presently faced by tens of thousands of nave and innocent buyers when the houses that they had bought were abandoned by their developers.

Don't think for a minute that the financier will write off the loan payable by the borrower/buyer.

Thus, the various advertisements for DIBS abbreviation or 10:90 or 5:95 or 0:100 connotations are merely marketing tools and are not the same as the BTS 10:90 concept that is put in place under the Housing Development (Control and Licensing) Act and Regulations.

These advertisements are open to misunderstanding and confusion. In this period of soft market in the housing industry, it is natural that more and more innovative sales strategy will come in.

We are not in opposition to that, but we are of the stand that advertisements should not have any element of misrepresentation or misconception and should not give rise to misunderstanding and confusion.

Housing Ministry to be vigilant

The Housing Ministry's Licensing Department should also take a close look at the contents of such advertisements before granting them sales and advertisement permits.

To allow such advertisements is injustice to nave and innocent first-time house-buyers.

Has the ministry erred in allowing those advertisements or did it not manage to spot the difference?

I would like to categorically state that I'm by no means implying that the advertised project is likely to be abandoned. This article is aimed only to inform potential buyers on the differences between the advertised DIBS or 10:90 or 5:95 or 0:100 mode of purchase vis-vis the government-encouraged BTS 10:90 concept.

Be an informed buyer and empower yourself with information to make a wise decision.

How to spot the difference

On the side of caution, the buyer needs to check if he has bought into a STB 10:90 loan package “scheme” or a BTS 10:90 concept. The differences between the two models are already explained in the article. An easy way to know what the buyer has bought is to refer to the SPA. If the contract is a Schedule H or Schedule G, the scheme is a sell-then-build. If the contract is a Schedule I or Schedule J, the scheme is a BTS 10:90 variant. - The Star

> Chang Kim Loong is the honorary secretary-general of The National House Buyers Association, a non-profit, non-governmental, non-political organisation manned by volunteers. For more information, clickwww.hba.org.my or e-mail info@hba.org.my