Property sector continues to be on solid ground

KUALA LUMPUR: The property market would continue to be active this year, supported by various government initiatives under the 10th Malaysia Plan and Budget 2012, said Deputy Finance Minister Datuk Donald Lim.

“Last year, in terms of construction activities, the higher number of new unit starts and building plan approvals signified the confidence of developers and investors,” said Lim at the launch of Malaysia’s Property Market Report 2011.

According to the report, the performance of the residential sub-sector would be sustained, while vacant space in the office and retail sub-sectors is expected to be absorbed as more space is taken up during the progress of the country’s Economic Transformation Programme.

However, Lim also pointed out that the Government was worried about the emergence of a real estate bubble.

Looking good: Lim reading the property market report. With him is Valuation and Property Services Department director-general Datuk Abdullah Thalith Md Thani.

“We do not want a United States subprime mortgage crisis in Malaysia. We noted that a lot of foreigners from the Middle East and China are keen on buying properties here,” he said.

Lim said the Government would intervene when property prices were seen to have “shot up too high.”

“As such, measures such as the implementation of the maximum loan-to-value ratio of 70% for the third home and Bank Negara’s responsible lending guidelines were taken.”

According to data on Bank Negara’s website, the amount of loans applied for purchases of residential property increased by 17% year-on-year in the first two months of 2012 to RM26.7bil.

The amount of residential property loans approved during the period was RM12.25bil, which was 2.7% higher compared to a year earlier.

Last year, the property market performed strongly with the value of transactions rising 28.3% to RM137.8bil. Volume rose 14.3% to 430,403 transactions.

The report stated that market activity was led by the residential sub-sector, which had a double-digit expansion of 18.9%.

This was followed by the development land (14.7%), commercial (9.7%), industrial (6.5%) and agricultural (4.6%) sub-sectors.

In terms of value, all sub-sectors registered double-digit growth with two sub-sectors surpassing 50%, namely agricultural (65.4%) and development land (54.8%).

Despite more units launched, the performance of the residential market improved last year. In 2011, there were 49,290 units of new launches which achieved sales of 46.3%, compared with 47,698 units with 45.7% sales in 2010.

Selangor, Johor and Perak offered the most number (51.2% or 25,216 units combined) of new launches in the country.

In terms of market share, the residential sub-sector dominated with 62.7%, followed by the agricultural (19.7%), commercial (10.1%), development land (5.0%) and industrial (2.4%) sub-sectors.

The residential sub-sector also took up a 44.9% share of the transaction value in the market. Last year, there were 269,789 residential property transactions worth RM61.83bil, which was the highest recorded in the last five years.

Selangor retained the lion’s share by capturing 27.9% (75,344 transactions) of the country’s total transactions.

The demand for high-end units priced above RM500,000 had increased, with 21,905 transactions last year (compared with 16,782 transactions in 2010).

“This could be attributed to the increase in affordability level and supported by the ease in borrowing as well as attractive loan packages offered by financial institutions.”

By property type, terraced houses captured 36.6% (98,597 units) of residential transactions, of which about one-third were transacted in Selangor.

As at the end of 2011, there were 4.51 million existing residential units with 584,546 units in the incoming supply.

According to the report, the Malaysian All House Price Index had surged to 156.9 points in the fourth quarter of last year, compared with 147.2 points a year earlier. - The Star

Residents want EGM

RESIDENTS of Gambier Heights Apartment in Penang are urging the Commissioner of Building (COB) to call for an Extraordinary General Meeting (EGM) after the parcel owners claimed that they were not given the audited financial report by the Joint Management Body (JMB).

The apartment is located in Persiaran Bukit Gambier near Bukit Gelugor.

They claimed that matters arising at the second Annual General Meeting (AGM) were also not forwarded to them during their third AGM held on May 3 last year.

Teacher S.C. Tan, 45, said the EGM was needed to vote and endorse a licensed property manager to manage the overall operations and administration of the apartments.

“We were also not given the audited financial statements for 2007, 2008, 2009 and 2010.

“According to the Building and Common Property Act 2007 (Act 663), the EGM could be called if a quarter of parcel owners signed for it.

“We submitted the petition together with 202 signatures by parcel owners to COB requesting an EGM but was later informed that the request had been rejected.

“In their letter dated November 1, it was stated that the rejection was because 25 owners had withdrawn from the petition, three had duplicated their signatures and six were not parcel owners.

“This left us with 168 signatures. Hence, the petition was rejected,” she said after a meeting with the MPPP president Patahiyah Ismail at Komtar recently.

Engineering site supervisor Stephen Lee, 49, said there were 737 units in Gambier Heights Apartment and at least 185 signatures were required.

“The law is silent on whether it allows ‘withdrawal’ from petition or if it rejects the ‘add-on’ of signatures,” Lee said.

“If the COB had allowed the ‘withdrawal’ of those who are for the EGM, why can’t they allow the ‘add-on’ of signatures?” he asked.

Lee claimed that a decision would be made known after the COB’s meeting on April 13.

Patahiyah declined to comment when met after the meeting. - The Star

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Making the right choice when buying a house

KUALA LUMPUR (Mar 21): Buying a house to live in is often a very positive experience, especially for first-time homeowners. However, for some, the transaction process can appear daunting, and for most people, the purchase is probably the biggest financial commitment they've made in their lives. With the dream house identified and booking fees paid, the next step is to withdraw one's savings from the Employee Provident Fund (EPF) and apply for a loan to pay the 10% deposit and the balance for the house. Most buyers use both the EPF funds and the loan to pay for the house. The first thing that is likely to be on the mind of first-time buyers is whether they are eligible for a loan and how to apply for a loan. Today, borrowers are spoiled for choice since non-banking institutions also provide loans, and their interest rates are highly competitive compared with banks that offer a discount of 1.8%-2.4% on the base lending rate (BLR) for a fixed period. Apart from financial institutions, insurance giants such as AIA and ING also offer fixed-term loans at a profit rate of 4.8%. The writer's own experience with buying her first house in the 1990s could serve as a guide to other buyers. When a new phase of the housing project was launched, several banks had opened their counters in the housing developer's lobby located at Wisma Tractors in Subang Jaya. Since Islamic loans were unheard of at the time, the writer and her husband took a joint conventional loan from Bank Simpanan Nasional (BSN). All the calculations and documentation for the RM120,000 loan with a 15-year duration were left to the bank. By the end of the term, the writer had repaid the bank RM150,000 through a fixed monthly payment of RM850. And today, the Muslims prefer the Islamic loan based on Syara'. Starting with the Bai Bithamin Ajil (BBA) at the end of the 1990s, there are now more Syariah-based loans such as the Bai Al Inah, which is becoming increasingly popular. Islamic loans are based on a fixed profit rate and not on the fluctuating BLR. The basic concept is that the financial institution sells the house to the borrower at a future value, that is, the value at the end of the loan term. For example, if a property costs RM350,000, the repayment over a 20-year period could reach RM900,000, inclusive of the fixed profit rate. Although this entails repaying about three times the original loan, the borrower need not worry about fluctuating interest rates or the conventional interest forbidden by Islam. However, an Islamic loan can be settled early if the borrower agrees to return the excess payment through "hibbah". Nonetheless, Islamic loans allow fixed repayments — a factor most welcomed by wage earners walking a financial tight rope in keeping up with their repayment obligations. Hazel Lim, a private sector worker, recently chose to buy property in Bangi. "Like other borrowers, I too place my complete trust in banks, lawyers and developers to complete the whole transaction. "I will ask the bank to calculate an affordable repayment by adjusting the repayment period. "It is important that I'm able to keep up with my payment obligations as stated in the agreement. If I feel that I cannot afford to repay the loan, then it's best that I don't take it in the first place. Then I have to look for a cheaper home," explained Hazel. Her choice is a corner double-storey terrace unit on 470 meters of land costing almost RM900,000, and it is Hazel and her husband's second property. "If I take a 15-year conventional loan from a local bank, after paying a down-payment of RM 150,000, the monthly repayments amount to RM5,500. "When I asked for the payment to be extended to 20 years, the repayment [amount] reduced to RM5,000 per month. I'm still considering this option. The repayments are high considering people like me and my husband are just wage earners," said Hazel. However, buyers should also take note of the much lower interest rate available now with a discount of 1.8%-2.4% on the BLR. Before making any decisions, buyers should also consider the developer's reputation. Buyers should be wary of the developer's status to ensure their housing projects are not abandoned halfway through, leaving them burdened with repayments and no house to show for it. Developers such as Sime UEP Development Sdn Bhd, Guthrie Property Development Holding Bhd, MK Land Holdings Bhd, IJM Land, SP Setia Bhd Group and I&P Group have etched a sterling reputation in the industry. Some newcomers such as Trinity Group Sdn Bhd have received good reviews from buyers for their ability to complete projects on schedule and to meet the buyers' expectations. — Bernama

 

Developers still gung ho on landbanking

KUALA LUMPUR: Coming into 2012, the property market has seen softening demand after blistering growth in 2010 and the first half of 2011. However, this does not deter property developers from acquiring more landbank, as they prepare to ride through the current cycle and launch more developments in the years to come. Developers such as Mah Sing Group Bhd, Paramount Corp Bhd, OSK Property Holdings Bhd, Dijaya Corp Bhd and WCT Bhd have of late been aggressive in their landbanking. In recent weeks WCT, with a market cap of RM2.1 billion, has just inked a deal to acquire 22.8ha of freehold land in Old Klang Road for a whopping RM450 million cash, and Paramount is acquiring 12ha of industrial land in Shah Alam for RM125 million cash, a major purchase for the group with a market capitalisation of RM544 million. Paramount director of corporate affairs Chris Tay said landbanking is an important activity to sustain group operations. “We continue to identify and buy land in strategic locations with good development potential, despite fears of a softening market,” she added. Tay said even though the Malaysian economy is expected to post weaker growth this year, which is likely to affect the appetite for certain asset classes in the property segment, the industrial sector is positive. On March 12, Paramount announced that it acquired a 12ha site in the Hicom Industrial Park in Shah Alam, fronting the Proton manufacturing plant, for RM125 million or RM95.60 psf. “We believe the price of RM95.60 psf is reasonable based on our feasibility study. We plan to apply our strategy of quick-turnaround development, repeating our Surian Industrial Park success at Kota Damansara,” said Tay. While there are concerns that Proton may relocate its Shah Alam plant to Tanjung Malim, she said, such a move would only unlock the value of the surrounding land. “If it materialises, it can only enhance the value of our land. With the recent upgrading of Persiaran Kuala Selangor and our land having a frontage exposure to the Proton plant, there will be synergistic benefits once we are able to convert the front portion of our land to commercial usage,” said Tay. Locality is the key in acquiring land, she said. Land in strategic locations in the Klang Valley, Penang and Iskandar Malaysia is fetching high rates per sq ft due to high demand for its economic importance. “Land prices will hardly come down, except if there is a huge market crash or economic crisis, then everything will come down. Land prices have not come down yet after the rally in property prices since 2010,” said RHB Research analyst Loong Kok Wen. She said if developers bought their land at a high price, they would go for high density projects and sell the units at a lower price relatively, if their balance sheet is tight and there is an urgency to “turn” the land quickly. Alternatively, they could just hold the land for a longer period and plan for future development and launch it when demand starts to pick up again. Loong added that demand for industrial properties, which Paramount is developing, is still high because there is a shortage of supply of industrial land. OSK Property, with a market cap of RM231 million, has acquired two parcels of adjoining industrial land in Taman Perindustrian Subang Utama, measuring 5.49ha for RM45.42 million or RM75.90 psf. Despite Paramount paying RM95.60 psf for the land, which is considered high compared with similar transactions by other developers, Loong said judging from the success of its Surian Industrial Park in Kota Damansara, she believes the price  is fair. “The Surian Industrial Park was launched at the height of the global financial crisis in 2008, after the collapse of Lehmann Brothers. Although sales were slow initially, they picked up quickly and gave good margins to Paramount,” said Loong. Mah Sing acquired two parcels measuring 62.8ha in Rawang which are adjacent to its existing township development there called M Residence. The land was bought for RM40.95 million cash or RM6 psf, with a potential gross development value (GDV) of RM650 million. It will be developed into another residential township, which will be named M Residence 2. “The purchase price is reasonable, but more importantly, the land is attractive as it fits our business model and allows us to  add value with a good master plan,” Mah Sing group managing director and chief executive Tan Sri Leong Hoy Kum told The Edge Financial Daily. “With prime land getting scarcer, home buyers are looking at new townships approximately 30 to 40 minutes from the town centre, offering a well-planned mixed development,” he said. Leong stressed that the development of M Residence and M Residence 2 in Rawang will challenge the public’s perception that Rawang is far. He reiterated that with the opening of the new access road from the KL-Kuala Selangor Expressway (Latar), the ongoing construction to upgrade the road connecting the highway to M Residence into a dual carriageway will shorten the travel time between Kuala Lumpur and Rawang. “It only takes 20 minutes to get to the Rawang toll from Kuala Lumpur (Jalan Duta toll) and Petaling Jaya (Damansara toll). In terms of distance, it is only 28km from both tolls. From the Rawang toll, it is less than 10 minutes or 10km to the project,” said Leong. Nevertheless, another analyst who covers the property sector said good developers will not deliberately pay any kind of price  for the sake of replenishing landbank, especially when the market has soured. The analyst said even though the recent property market upcycle has left developers flush with cash from strong progress billings that had started to kick in, they should only acquire land which is strategically located and at a reasonable price. “We have seen several big developers that had failed during the financial crisis by making wrong bets at the wrong time. But now most developers’ balance sheets are stronger with huge unbilled sales, thus they can still shop for good landbank and perhaps clinch better land deals when the market is softening,” he said. - The Edge Property

 

Penang to build 11,800 cheap homes

KUALA LUMPUR (March 30, 2012): An affordable housing project in Batu Kawan by state-run Penang Development Corp (PDC) will create at least 11,800 apartments with a total gross development value (GDV) of up to RM2.5 billion, said Penang Chief Minister Lim Guan Eng.
The Bandar Cassia Affordable Housing Scheme will occupy some 200 acres (81ha) in Batu Kawan, Seberang Perai Selatan, Penang. The three-bedroom units will range between 800 and 1,000 sq ft with prices from RM72,500 to RM220,000 each, while the GDV is expected to range between RM2.3 billion and RM2.5 billion.
In an email reply to The Edge Financial Daily, Lim said the project is due to commence this year with the final phase slated for completion in 2026. There will eventually be 81 blocks of apartments, of between nine and 20 storeys housing at least 11,800 units of affordable dwellings. About 53% of these will be apartments measuring 1,000 sq ft while 24% would be 900 sq ft and the balance 800 sq ft.
PDC, the project developer, has roped in Singapore-based Surbana Corp Pte Ltd as consultant. According to Lim, Surbana (formerly known as HDB Corp Pte Ltd) was brought in for its proven record in providing comfortable and quality public housing in Singapore and other countries.
Lim said Surbana’s scope of work would involve consultancy services encompassing master planning, designing, contract implementation and administration during the tenure of the project.
He clarified that Surbana will not be involved in the construction, stressing that the state would call for an open tender and priority would be given to Penang contractors.
On the state’s decision to work with Surbana, Lim said: “If Penang wants to provide the best quality affordable housing to Penangites, then instead of imitating the best, why not choose the best?”
Nevertheless, an analyst said the success of Penang’s affordable property venture still depends on whether the state government can cough up land in central locations.
“Although it is low-cost housing, the state government cannot expect people to stay too far away from town and in areas not served by public transport,” he said.
According to Lim, the Bandar Cassia Affordable Housing Scheme, though not in the central locations, is set to provide housing to the increasing pool of workers that are currently or will be employed at the industrial and corporate business parks within Bandar Cassia and nearby industrial corridors.
Meanwhile, the upcoming Penang Second link will bring the island closer to Batu Kawan and enhance accessibility to the Bayan Lepas Industrial Park and Penang International Airport.
Surbana’s roots can be traced back to 1960 when the Housing and Development Board (HDB), a Singapore government agency tasked to solve housing issues and provide affordable housing in the island state, was established.
Subsequently, HDB’s Development and Building Division was corporatised in 2003 as HDB Corp Pte Ltd. That same year, HDB Corp through a JV built its first project in Chengdu, China.
In 2004, HDB Corp was acquired by the Singapore government’s investment vehicle Temasek Holdings and a year later rebranded as Surbana. In April 2011, CapitaLand acquired a 40% stake in Surbana. - The Edge Property

30pc affordable housing quota in Bayan Mutiara sale, says Guan Eng

April 1 — Those seeking affordable housing in Penang will benefit from the RM1.1 billion sale of 103 acres of prime land in Bayan Mutiara to Tropicana Ivory Sdn Bhd (TISB) as almost one out of three properties being built must be low to medium cost, said Lim Guan Eng. 

The Penang Chief Minister told The Malaysian Insider that TISB must ensure 30 per cent of residential property built must be low-medium cost (LMC) valued at between RM72,500 to RM220,000, apart from proceeds of the land sale being channeled to a RM500 million rolling fund for state-built low-cost houses. 

“No exemption. They are required to build 30 per cent on the island, not mainland. Of course, they can build outside Bayan Mutiara, but they have to find land, so it will most probably be there,” the DAP secretary general said. 

Consumer groups, politicians and observers have criticised the state government for ignoring the lack of affordable housing on the island by approving the RM10 billion Penang World City to be developed on the site. 

Booming capital investment since Pakatan Rakyat (PR) took over in 2008 has seen Penang beat other states in terms of manufacturing investment for two years running but brought with it surging property prices and increased traffic woes. 

But TISB has only announced that 15 per cent of the 800 to 1,000 high-rise units for the first phase will be priced between RM300,000 and RM500,000, depending on the built-up area which ranged between 600 sq ft and 800 sq ft. 

Subsequent phases for PWC will also see 15 per cent of the properties priced in the affordable range of between RM300,000 and RM500,000. 

The DAP-led administration has also come under heavy fire over the sale completed at the end of 2010 for RM240 per square foot (psf) that Barisan Nasional (BN) leaders say was below a market price of RM420 psf. 

Lim (picture) has insisted the federal government’s valuation and property services department valued the land at RM65 psf in November 2009, just five months before it was up for open tender in April the next year. 

“I fixed a reserve price of RM200, three times the price. I was just putting a bet because I had confidence in Penang. But if you think you can sell at RM420, I give it to you. Put your money where your mouth is,” he said in the interview. 

He added that TISB was only being sold 70 acres while the company would have to pay the cost of reclaiming another 30 acres of land, meaning the actual price per square foot was even higher. 

The Bagan MP also denied claims the state government was “financing” the project, 55 per cent owned by top developer Dijaya Corporation, by allowing it to pay the RM1.1 billion in interest-free installments over five years. 

He explained that the original repayment term was for eight years, but “we asked them to sweeten the deal” and reduce the period to five years. 

Lim also referred to the deal for the Jelutong Expressway signed in 1997 by the previous BN administration where the state gave IJM Land a RM33 million interest-free grant upfront to be fully repaid only in 2015. 

“Who has got cash to pay RM1.1 billion upfront? And this is cash, not shares. For the highway, they gave 300-over acres and RM33 million for a highway. Mine is only 100 acres but we get RM1.1 billion,” he said. 

He also stressed the RM500 million from the proceeds was sorely needed for the low-cost housing fund as the state plans to build between 12,000 to 15,000 units “providing all amenities including man-made rivers and football fields” in Batu Kawan which will cost up to RM3 billion. 

The state has appointed Surbana, which developed Singapore’s HDB flats, as consultant for the 200-acre Bandar Cassia Affordable Housing Scheme, to be built in phases over the next 15 years. 

Surbana is Singapore’s state-owned corporation that oversaw the construction of over a million low-cost flats in the island-state that now houses over 80 per cent of the republic’s population. 

“We are going to incur losses on this, between RM300 million to RM500 million,” Lim said. - The Malaysian Insider

Was there a slowdown in Q1?

An unusual ripple has taken place in a property market that usually moves at glacial speed

THREE months into 2012 and what has changed in the property market?

We had an unusually slow start this year and this was because the Chinese New Year was only a month apart from the year end Christmas and New Year holidays and this resulted in an extended holiday mood in the country.

Waking up in February, we found that the fears of a US double dip that took hold in the second half of 2011 had dissipated somewhat and the core of the eurozone crisis, namely the possible default by Greece and all its ramifications, was being tackled with some light seen at the end of the tunnel.

As at the end of March, the US economy, an important engine of growth for the global economy, is said to be improving, but there are also concerns that “seasonal” adjustments in the data are not giving us a real picture and because the growth is being wrenched out from extraordinary monetary easing.

As for the eurozone, we are told, increasingly, that the crisis is not over, albeit contained somewhat for now. All in all, we are not out of the woods as yet insofar as the global economy is concerned.

Hot spots: There are evidences that the run up in prices for the various “hot spots” of housing in the Klang Valley have been arrested by the cooling measures undertaken by Bank Negara and the tightening on housing loans by banks

The China slowdown is now officially confirmed, but the majority of news flows suggests no “landing” or hard landing. The official policy on lowering house prices, however, is steadfast as confirmed by the top leadership.

On the local front, Bank Negara has just released its usual, annual, twin reports and they project a slightly lower growth range of 4% to 5% for 2012. The reports list inadequate global growth as one of several risks going forward, for us.

The property market, unlike the stock market, moves at a “glacial” pace and its movements are not easily discernible in a three-month period, but coming out of the holiday season this year there was a distinct slowdown in enquiries for mortgage valuations and for house purchases in the secondary market. Whether this will persist or be shaken off as due to the extended holidays will be better known only in the second half of the year.

But there are evidences that the run-up in prices for the various “hot spots” of housing in the Klang Valley and in Penang, to levels way above desired and supportable fundamental levels, have been arrested and this has been principally brought about by the cooling measures undertaken by Bank Negara and the tightening on housing loans by the banks themselves. Arrested also, hopefully, would be the horizontal spreading of similar pricing levels outside of the “hotspots” the trickle-down concern.

The housing market, on a pan-Malaysian perspective is fundamentally sound with the country-wide “all house” price, according to the National Property Information Centre or NAPIC, stated at RM212,085 for the third quarter of 2011.

Average household

If we match that against the average household income for the country as a whole, at about RM4,000 a month, the number of times the price is, compared with the annual household income, it is an acceptable 4.42 times.

In many “hotspots”, house prices are much more than 10 times average household income (for the respective states as we only have official data on a state-by-state basis).

A recent article in the Asian Wall Street journal about the Australian housing market had this to say: “Australian house prices are (high at) 6.7 times the median household income, more than double the level in the United States.”

In the primary market, sales are increasingly being driven by new inducements for sales, that commenced, post the global financial crisis, with the 5/95 schemes and delayed payments that those schemes offered.

The market has gone further and now rebates, early bird discounts, cash back payments, Developer Interest Bearing schemes (with the developer absorbing interest payments during the period of construction), absorption of cost of the sale and purchase agreement, legal fees and stamp duty (borne by the developer) and rental guarantees, are common items now.

Most of these are de facto price reductions and that seems fine, except that loan approvals should be based on valuations that are arrived at by making comparisons on a like-for-like basis, i.e. stripping out the value of the inducements to arrive at the “effective” price and then making comparison-based valuations.

Rental guarantees could be more pernicious, especially for strata offices and retail space. Some schemes are being built and sold solely on marketing the individual units to various purchasers at prices that are built in with future rental guarantees. These guarantees can, in instances, be longer than five years and the guarantee is from the developer, and not necessarily backed by a financial institution.

If end financing is given for these schemes based on comparing prices with prices of similar schemes (also inflated due to the rental guarantees), there is a real danger that the loan gets predicated not on the real value of the real estate but on the value of the real estate topped up with the substantial financial benefit.

Risks are high when such products are purchased in the headlong rush to property on the notion that it is better than lower yielding alternativesor as a “hedge” against expected inflation. From a regulatory standpoint, leaving this to the caveat emptor doctrine is not advisable.

Elvin Fernandez believes in the free market and timely nudging by policy makers and key market participants to iron out any, and only where needed, imperfections in the system. To do this, and over time, they need a steady stream of in-depth market knowledge and insight. - The Star

Rep tells of widespread land conversion

GEORGE TOWN: The issue of ‘rampant’ conversion of agricultural land to commercial uses in Balik Pulau will be raised by an Umno assemblyman in the next state assembly siting.

Teluk Bahang assemblyman Datuk Seri Dr Hilmi Yahya said that even a piece of land in front of his house, which used to be a padi field, was filled with earth for development.

“I learn that it is supposed to be used for a goat-rearing project, but the truth remains to be seen,” said Dr Hilmi.

The Balik Pulau Umno division chief added that such uncontrolled land conversion would result in lower food production in the state.

“We want to know how much agricultural land has been converted since Pakatan Rakyat took over the state and the purpose of the conversion,” said Dr Hilmi, who is also state Barisan Nasional secretary.

He said the previous government was “very careful” when dealing with land conversion as it did not want too many commercial activities being carried out in Balik Pulau which is well known for its greenery. - The Star