Rental rise seen for high-rise luxury residential properties

PRICES of luxury high-rise residential properties within the Klang Valley are set to see an increase in rentals this year, but are unlikely to reach levels that were achieved before the global financial crisis hit in 2008, say experts.

Malaysian Institute of Estate Agents (MIEA) president Nixon Paul says he is optimistic about the outlook for high-end residential condominiums this year.

“Rental values have dropped from its high (in 2008) but have since stabilised and are slowly on its way up. We see a slow and gradual move upwards but not a dramatic increase,” he tells StarBizWeek.

Nixon says after the financial crisis hit in 2008, rentals of high-end residential condominiums “took a beating.”

“The slowdown in Europe and the US caused by the financial crisis at the time caused many expatriates to pull out and there was also an oversupply of condominiums then.

“But things are more stable now in Europe and the US. Furthermore, various Government initiatives under the Economic Transformation Programme are helping to attract foreign investment. The oil and gas sector is also responsible for attracting a lot of expatriates,” he says.

MIEA deputy president Siva Shanker is also optimistic about the high-end residential sector this year.

“Barring any unforeseen circumstances in Europe, the US and China, we’re looking at fairly reasonable growth in both rents and occupancy rates of high-end condominiums in areas like KLCC, Mont’Kiara, Bangsar and Ampang.”

Siva recalls that after the global financial crisis hit in 2008, many companies in Europe and the US started having financial difficulties and either pulled back their employees or reduced the quantum of their employees’ housing loans – which had an adverse impact on the local high-end condominium market.

“Because many companies were restructuring around the world, there was a drop in high-end rental market. Rents came down by between 30% and 35%. It also did not help that we had a huge oversupply situation. Developers were building but the expatriates were returning back to their home countries.”

At this point, occupancy rates dropped while vacancies rose, says Siva.

He says that many expatriates that remained in the country moved to cheaper apartments.

“High-rise condominiums within the KLCC area suffered the most. There was a lot of supply that came in between 2007 and 2008. Many investors bought them and some developers promised expected rentals of RM20,000 a month!

“But in the last couple of years, we are seeing a recovery. Many expatriates are coming back. We haven’t recovered to the pre-financial crisis days but condominiums within the KLCC area is doing well. We believe these apartments have an occupancy rate of 80% or more, presently.

Nixon meanwhile says it was difficult to determine current rental rates of high-end condominiums as there were “too many variables.”

“Rental rates depend on a lot of factors. Are the units fully or partly finished? Is it on a higher or lower floor? Does it have a great view? There are a lot of variables,” he says.

According to C.H. Williams Talhar & Wong’s property report card for Klang valley in the first half of 2012, the overall luxury condominium market during the period faced a competitive market environment.

“These could be due to the tightening lending guidelines introduced byBank Negara as well as the reinstatement of Real Property Gains Tax as of Jan 1, 2012. On the demand side, the sales rate was stable.”

As at the first half of 2012, it said the total supply of luxury condominium in Kuala Lumpur increased by 2.2% from 21,771 units (137 developments) in 2011 to 22,268 units (140 developments).

“Generally, the average occupancy rate for existing luxury condominium in KL has been on a downtrend since 2008 except for the Kenny Hills area. In the first half of 2012, the average occupancy rate further decreased by about 5% to 61.6%.

“Both condominiums and serviced residences experienced the downtrend registering occupancy rates at 63.2% and 59.5% respectively.”

It said prices of luxury condominiums in KL have remained stable as compared to 2011.

“In the first half of 2012, two new launches were announced. However, sales prices in KLCC area are estimated to range between RM800 per sq ft and RM1,600 per sq ft. The Pavilion Banyan Tree maintained sales prices at an average RM2,000 per sq ft.

“In terms of rental levels, the average asking rental levels of luxury condominiums have remained stable, ranging from RM5 per sq ft to RM6.50 per sq ft monthly in KLCC and Ampang Hilir / U-Thant. Other areas such as Bangsar and Mont Kiara are asking about RM4 per sq ft to RM6 per sq ft per month.” - The Star

市场影响●不比往年凌厉 槟屋价料10%涨幅

(北海6日讯)受市场需求影响，今年槟州屋价预料将持续走高，唯走势不复往年凌厉，涨幅预料在10%平稳发展。权威产业市场估价公司亨利行 （Henry Butcher）以去年截至10月的数据指出，虽然去年的产业交易量因银行新房屋贷款政策而减少，但由于市场需求量大，因此，预料今年的屋价还是会持续上 扬。

“去年上半年的产业交易量同比前年下降了11.09%,去年前半年的产业交易额则是69亿令吉，所有产业交易量相比前年都显示下降趋势，唯独商业单位（店屋）逆流而上，上涨了4.4%。”

亨利行也说，发展商普遍认为新房屋贷款政策的影响只是暂时性，而且槟州因为受制于土地有限，屋价指标是西马之冠，许多槟岛市民都把家园迁移至威省一带，威省产业市场需求量依然可观。

他补充，除了市场购买力，房屋价上扬也受整体市场活动包括成本上扬、新房屋计划的设计及概念大受欢迎、发展商免息优惠及中央政府的房屋政策等种种因素所影响，造成槟州整体产业市场活络。因此，发展商还是保持乐观态度看待市场。

亚依淡250依格私人地段 发展看未来YB

槟城5日讯）亚依淡250依格私人地段未来发展课题，自2010年高庭判决后，至今没任何进展，来届选举中选的议员，将对亚依淡上述地段的未来规划发展，扮演重要角色。

槟岛目前地稀的情况下，该区发展将影响周边密集住宅区或当地两大旅游景点的未来方向，槟州政府及当地州议员将扮演重要角色，助改善多年来当地欠缺完善基设及因两大旅游胜地而困扰多年交通问题。

上述的亚依淡250依格因属私人地段，当地没有跟随槟岛80年代大兴土木的列车，至今该区结构都保留不变，只有少数的地段建起住宅区。随着在2010年高庭作出判决，地段主要主权纷争落幕，外界预估这将会带给亚依淡发展，但截至目前为止仍只闻楼梯响。

亚 依淡250依格地段覆盖范围广，涵盖地区包括亚依淡市区、甘榜马来由、甘榜比桑、极乐寺山脚一带。由于多人拥有土地拥有权，高庭2010年裁决只是地段占 逾70%的“大股东”争议，在其他小地主和大地主之间的协商还未完成的情况，导致目前发展计划停滞住，活跃该区的朝野政治人物认定，相信近期都不会有动 静，更不会成为来届大选议题。

Rising with the times But there’s much traffic congestion, lament residents

LUSH green hills surround the small town of Paya Terubong, making it a good location for those seeking a scenic place to call home.

The town is also strategically located with links to Bayan Lepas, Relau and Balik Pulau.

Although a small portion of the town is taken up by a cemetery, Paya Terubong is believed to be named after terubong, a type of grass known scientifically as Cyrtococcum oxyphyllum.

The town is poised to be developed as a place for luxury living, with developers believing Paya Terubong has the potential to attract middle to high-income earners to make it their home.

However, with more development and more people coming in to stay, long-time dwellers are lamenting the worsening traffic congestion that occurs during peak hours.

Housewife Sally Tan, 50, finds it a nightmare to be stuck in traffic in Jalan Paya Terubong when taking her kids to school in the morning.

“The jam begins at around 7am when people are going to work or bringing their children to school.

“It gets worse when it rains, if there is an accident or if a tree falls on the road,” she said, adding that she had lived in Paya Terubong for 13 years.

Hawker K.T. Ong, 48, said it takes 45 minutes longer than usual to go to Jalan Masjid Negeri from Paya Terubong if he leaves home at around 6.30pm.

He said his wife has to spend an extra 30 to 45 minutes on the road when fetching their child home from school which is only 10 minutes away.

However, the traffic is seen as a blessing for some such as fruit trader Lai Saw Hee, 61, whose stall is at the Air Itam market.

“More cars means more customers,” he said but added that there were too many cars nowadays causing a bumper-to-bumper jam at the market.

He added that business had improved by 20% in the first two months this year compared to the same period last year.

He said it was due to the additional car park bays provided nearby for visitors to the Kek Lok Si Temple and the 30.2m-high bronze Goddess of Mercy (Kuan Yin) statue.

Ong said he would like to see a proper landed market complex or hawker centre to be set up in the area.

He said a multi-storey building slated to be a market was constructed around five years ago but it was not completed, with the building left in ruins now.

Echoing his request is Eric Guna, 52, who operates a nasi kandar stall in a food court in Paya Terubong.

However, Eric wants a market complex to be built within the area of Jalan Masjid Negeri, where he is staying.

“There is a private market in Jalan Gangsa but the produce sold there is expensive.

“I would normally go to the markets in Jelutong and Taman Tun Sardon,” he said.

On the traffic condition in Jalan Masjid Negeri, Guna said there would be a traffic jam after 6pm but it was better controlled when there were traffic policemen to guide the cars.

However, he said the policemen were only present on weekdays.

One of those taking public transport is factory operator A. Amrapathy, 45, who said Rapid Penang drivers would sometimes refuse to stop at the bus stop to pick up the few passengers waiting there.

He said: “Sometimes, they will make a few rounds before deciding to stop and we have to wait for them to do so.”

Technician M. Surendran, 38, who stays in an apartment in Jalan Bukit Gambier, said there should be more amenities such as a bus stop near the petrol station there.

“The nearest bus stop is in front of Universiti Sains Malaysia (in Jalan Bukit Gambier) and that is quite far away,” he said.

He added that those who parked their cars outside the apartments would sometimes be slapped with a fine for obstruction of traffic.

“But our apartment management allows each household to park only one car in the compound. If only there is a proper parking space outside,” he said.

Luxury condominiums are springing up in Jalan Bukit Gambier.

Surendran believes that the construction of a high-rise building nearby has caused cracks on the ground floor of his apartment block.

“Our home is dusty because of the dirt and sand that are blown towards our direction. We have to sweep the floor every day and close the balcony sliding door when the construction is carried out,” he said.

Resident Tan Mei Choo, 45, who works in Bayan Lepas, urged the state government to resolve the frequent jams along the hilly Jalan Paya Terubong.

“Traffic jams occur when a factory bus breaks down or when there is an accident. I’m late to work at least four or five times a month because of the jams,” she said.

She said the Penang Municipal Council had announced that it was mulling over the possibility of constructing another road linking Paya Terubong to Relau.

“This will definitely reduce the traffic jam along the hilly Jalan Paya Terubong stretch. Alas, nothing is moving on the ground,” she added.

Bandar Baru Air Itam residents who are also caught in traffic jams are hoping that the 4.6km Bandar Baru Air Itam-Lebuhraya Tun Dr Lim Chong Eu bypass project will become a reality.

The Bukit Gelugor parliamentary constituency consists of three state seats – Paya Terubong, Air Itam and Seri Delima. - The Star

首长：高架结构毁古迹形象 国阵轻快铁不适用于槟

（槟城2日讯）槟州首席部长林冠英周六发文告指，160万名槟城人将决定，是否要槟州民联政府进行耗资63亿令吉的4个“两岸三通一槟城”4条高速公路工程以及一个电车系统，以连接槟岛及威省两地，包括全东南亚第一个从关仔角直达峇眼阿占海底隧道。

最近州政府把上述工程合约颁布给由中国北京城建集团与一家本地公司组成的联营公司Consortium Zenith BUCG私人有限公司，北京城建集团涉及的工程计划包括北京奥运使用的中国国家体育场（鸟巢）。

需新替代公路

他说，国阵的轻快铁系统不适用于像槟城这样的世界文化古迹，因为它的高架结构将会毁坏古迹的形象。因此，安装于地面的电车将会适用古迹区，也需新的替代公路，好让现有的道路让路给电车轨道。

他说，公共交通系统完全隶属联邦政府管辖，就算州政府有钱，联邦政府可以不给执照、不合作、不让槟城推行公共交通系统。无论如何，他表示槟州民联政府不会坐视不理，会兴建新的替代公路，弥补国阵联邦政府无法提供槟城一个高效率的公共交通系统。- 光华

林冠英：完成招标工作 槟海底隧道势在必行

（北海2日讯）槟州首席部长林冠英表示，槟城海底隧道计划经已完成招标工作，势在必行，竣工后收费也将等同槟城第二大桥的收费！

“北京城建集团与本地公司组成的联营公司Consortium Zenith BUCG私人有限公司，在13家公司的竞标中脱颖而出，获得槟州政府的‘两岸三通一槟城’计划，报价是63亿令吉，远比我们预算的80亿令吉来得低，而这就是公开招标的好处。”

他补充，该63亿令吉的计划除了兴建衔接新关仔角及峇眼亚占的6.5公里长的海底隧道外，也包括衔接亚依淡及敦林苍佑大道的通道（4.6公里）、衔接敦林苍佑大道及新关仔角通道（4.2公里）及衔接丹绒武雅及直落巴巷的替代道路计划（12公里）。

“槟州政府在该计划内并没支付该联营公司任何现金，却只需以一片100依格的土地作为交换，这对槟州政府而言非常划算，北京城建集团也是北京鸟巢体育馆的承建者，因此，技术与实力不容置疑。” - 光华

Getting developers’ houses in order

RECENTLY, we were consulted about some property developers and asked what we thought about their business models and, more importantly perhaps, how to value them accurately.

The key things that most investors look at are:-

● Where they are located?

● How high they price their developments for sale?

● When they choose to market their developments?

When we began scrutinising these developers, we drilled deeper into some of the key features that they chose to highlight how they worked, which were as follows:

● First, they claimed that they were able to complete a four-tower residential development within two years;

● Second, they had a license to increase the density of their built-up area, also known as gross plot ratio, from nine persons per site to 3,000 persons on the same site; and

● Third, they had special construction skills, which would ensure that the building would stand firm despite landslides or earthquakes.

Each of the above claims is a tall order, so you might well ask whether we are stretching the truth with these statements. Ludicrous as they may seem, we assure you that the developers claimed all these in their marketing documents. We went through each statement carefully, evaluating if each of their claims can indeed be substantiated.

Their first assertion, that they can complete a four-tower development within 24 months, can be dealt with simply enough. A back-of-the-envelope calculation would tell you that for such a development to be built so quickly, construction would have to take place 24 hours a day, seven days a week.

Our first question was to the authorities. Aren't there laws against building after 7pm daily, and which allow only six days of construction a week, to spare the public the noise, dust and other such disturbances? And according to our research findings, as the development in question is a private property, these building rules do apply.

As to their claim that they are able to increase their gross plot ratio so significantly, we queried them on:

● How do you actually increase plot ratio by so much?

● Surely you would need a detailed procedure and transparent process to do so?

● How would you ensure that everything needed to support such intensive building would run smoothly?

● How would you manage traffic to smoothen operations?

● We also asked an off the wall question; how would you arrange basic sanitation facilities so the builders could cope with the increased need for water as well as the efficient disposal of waste from the site?

Last but certainly not least, we wondered how the developer could guarantee that the development would be landslide and earthquake-proof?

The developer's representative said happily that their buildings could even withstand a tsunami. So we prodded them as to whether or not they used some super form of steel or concrete. His response? They were not sure “what kind of cement is used for their buildings and the buyers would have to trust them”.

We then enquired further as to how they would ensure that the building materials would always be as hardy as claimed. Did they, for example, have audit checks on the quality of cement used? In reply, the representative said, “Of course not - all that we do is based on trust. After all, we are property developers.”

Anyone could see from such responses that one cannot take their words at face value. So we concluded that developers such as these:

● Would probably have no interest in ensuring proper road and other infrastructural support, or arranging proper drainage to cope with the increased waste flow;

● Would probably not adhere to existing laws and regulations;

● Might not have in place proper audit procedures on the amount and quality of building materials being used; and

● Might also not have proper audit procedures on their statements and promises to buyers.

As investors, we can of course avoid companies that flout the law like this.

As homebuyers, we can set a standard by boycotting companies that are not willing to improve the levels of transparency at which they operate.

For example, there is no point looking at where they locate their developments, because if such irresponsible developers can increase the plot ratio of their developments arbitrarily, then one can assume that the developers next door can do the same. This means that the sea view you enjoy today will probably wind up as a view of the pantry of the apartment across from you in the not very distant future.

And while the price of a property is a foremost consideration, we would urge you to focus too on a property's sustainability. If developers are clogging up drains and causing traffic jams due to their crunched construction schedule, their developments are not going to stay well maintained for long. Sooner or later, barely sustainable living conditions will have the tenants of the apartments moving out and their landlords will be forced to sell their units at lower prices just to get rid of their properties.

As for the time developers choose to sell such developments, one thing is for sure, any developer that claims to be able to put up four towers of 20-storey apartments within two years has got to be cutting corners. Prospective investors should, at the very least, demand that a safety review be done on the development in case of any structural cracks. This concern would be augmented if the development is near limestone caverns and hillsides.

If Malaysia is to become a much sought-after destination for property investors, its developers will have to get their houses in order first by adhering to all laws, monitoring quality strictly and making promises they can keep and, in general, have the highest standards of transparency and accountability.

Let us not allow a few bad apples rot the basket.

Datuk Shireen Muhiudeen is managing director of Corston-Smith Asset Management in Malaysia, a fund management company that makes investment decisions based on corporate governance. - The Star

Free legal fees – fact or myth

An erroneous understanding of the matter exists in the housing development industry, much to the dismay of purchasers having disputes with developers.

FREEBIES have been advertised and offered to woo purchasers to buy developers' property because choices are now in abundance though pricing is on the exorbitant side.

Some of the freebies include air-conditioners, kitchen cabinet, automatic gate, club membership and legal fees. The list is not exhaustive as property development is a competitive game.

However, among the freebies offered to purchasers, legal fees require objective analysis. The freebie on legal fees normally appears in sale brochures and advertisements as “free legal fees” or “legal fees borne by developer” or words to that effect.

Now, what is “free legal fees”? Is it a freebie in the truest sense of the word?

Meaning of free legal fees

Generally, “free legal fees” would mean that the developer will pay for the legal fees on the S&P (sale and purchase) agreement. However, the offer of free legal fees may not cover disbursements such as stamp duties, searches fees, registration fees, printing charges, purchase of documents costs, etc. The purchaser will have to pay for them.

In other words, the offer of “free legal fees” would in its plain and obvious meaning suggests that the legal fees the purchaser would have to pay to the solicitor would instead be paid by the developer. It would, therefore, be understood that if the purchaser had appointed a solicitor, the developer would pay for the solicitor's fees.

However, is this what happens actually when a purchaser buys property from a developer who offers “free legal fees”?

What happens actually is quite different. An erroneous understanding of “free legal fees” exists in the housing development industry, much to the dismay of purchasers having disputes with developers.

Developer's solicitor

In offering “free legal fees”, the developer would recommend to the purchaser a law firm on the developer's panel to attend to the S&P agreement and its related transaction. Correspondingly, the same law firm will be tasked with the loan documentation as a packaged deal. If the purchaser chooses that law firm, the developer will supposedly absorb the legal fees. Quite obviously, the developer takes the view that such arrangements represent a cost-saving to the purchaser as well as facilitate and expedite dealings.

Now the irony is the solicitor of the law firm attending to the sale and purchase agreement would not normally scrutinise the agreement for the purchaser to understand in layman language, but would say that it is a standard agreement'. Instead, the solicitor would ensure that the developer's rights and interests in the agreement are intact and the purchaser duly signs the agreement and thus, is bound by it.

From a legal point, the solicitor acting in such a manner would actually be acting for the developer. The solicitor is therefore the developer's solicitor, and this being the case, the developer would have to pay the solicitor's fees. Therefore, there is nothing free about it as far as the purchaser is concerned. It can only be considered free if the buyer receives independent legal representation and does not have to pay for it.

Hence, there is no solicitor acting for the purchaser to scrutinise and protect the purchaser's rights and interests in the agreement. The purchaser is without legal representation. Since the purchaser has no solicitor acting for the purchaser in the agreement, there is no legal fees for the purchaser to pay.

Unfortunately, many purchasers realise this rather late in the day.

The purchaser normally realises this fact when a dispute arises and the purchaser asks the solicitor for help and is informed that the solicitor who attended to the sale and purchase agreement is actually the developer's solicitor. Purchaser's solicitor

What would happen if the purchaser appoints another solicitor who is not on the developer's panel of solicitors to attend to the sale and purchase agreement? How would the offer of “free legal fees” be affected?

In principle, the solicitor so appointed will scrutinise the sale and purchase agreement for the purchaser. The solicitor will act for the purchaser and consequently there are legal fees for the purchaser to pay the solicitor.

In this situation, the developer and purchaser will each have their respective solicitors. Each party will have solicitor's fees to pay.

If the developer's offer of “free legal fees” were taken seriously, the developer would have to pay for the purchaser's solicitor's fees. It is arguable that the developer's offer of “free legal fees” is broad enough to cover such a situation. The purchaser would therefore be entitled to claim on the offer and have the developer pay for the purchaser's solicitor's fees.

However, most developers would refuse to pay for the purchaser's solicitor's fees. The reason given normally for the refusal is that the offer of “free legal fees” is subject to the condition that the purchaser chooses the solicitor on the developer's panel of law firm to attend to the S&P agreement.

When this happens, the developer's offer of free legal fees would seem hollow and the developer may possibly be exposed to being sued for misrepresentation and damages. Legal Profession Act

Section 84 of the Legal Profession Act 1976, stated that a solicitor who acts for the developer in the sale of property under a housing development must not act for the purchaser in the same transaction.

Furthermore, under the sale and purchase agreement, namely Schedule G and Schedule H, the developer and purchaser must pay its own solicitor's costs.

The above laws clearly suggest that the developer's solicitor must not act, or purport to act, for the purchaser. The purchaser has a right to appoint his/her solicitor. Each party bears its own solicitor's costs.

Thus, is the developer's offer of “free legal fees” legal? Readers should ponder on the arguments.

The reality

Meantime, two situations would possibly arise from the developer's offer of “free legal fees”.

First, where the purchaser is unrepresented by a solicitor in the S&P agreement, the offer of “free legal fees” is not really “free” because the purchaser has no solicitor acting on his behalf. There is thus no legal fees to pay.

Second, where the purchaser is represented by a solicitor in the S&P agreement, he has a solicitor acting on his behalf and thus has legal fees to pay. The developer would be bound to honour the offer of “free legal fees” and pay the solicitor's fees or possibly risk being sued for mispresentation and damages.

In reality, most developers fail to honour the offer of “free legal fees” in the second situation. Instead, the purchaser is asked to pay the solicitor's fees and is informed that the offer only applies if the purchaser chooses the solicitor on the developer's panel to attend to the S&P agreement.

In summary, is “free legal fees” fact or myth? I leave that for your pondering and own conclusion.

Hopefully, the next time you buy a property from a developer and read about “free legal fees” or words to that effect, you would remember reading this article and exercise your rights accordingly.

What are the prevalent legal fees in property transaction when you buy from a housing developer? Are legal fees discounted for standardised S&P or housing loans)

In a case where the purchase transaction is governed by the Housing Development (Control and Licensing) Act, 1966 (HDA transaction), or where a loan is obtained to finance a HDA transaction, the following lower scale of fees will apply:

● RM250 if purchase price or the loan sum (as the case may be) is RM45,000 or below;

● 75% of the applicable scale fee specified above, if the purchase price or the loan sum (as the case may be) is above RM45,000 but not more than RM100,000;

● 70% of the applicable scale fee specified above, if the purchase price or the loan sum (as the case may be) is above RM100,000 but not more than RM500,000; and

● 65% of the applicable scale fee specified above, if the purchase price or the loan sum (as the case may be) is in excess of RM500,000.

(See table for a simplified version of formula for the fees scale.)

Why must you use your own lawyer?

The first rule of conveyancing is “buyer and seller must engage own lawyer”. Consult a lawyer right from the start and not after you have paid the deposit. The reason being, under the law you are deemed to have read and understood every document you have signed.

Furthermore, promises made by the seller or someone else about the deal may not be enforceable if the promises are not in writing unless you are able to provide proof of the same.

A lawyer cannot represent both the vendor and purchaser. If you are using the vendor's panel lawyer, often, when disputes happen, the lawyer is unlikely to represent you against their bigger client.

A lawyer in a general practice will be able to complete your purchase; however, lawyers with a focused real estate/conveyancing practice may prove a better choice if you are unsure of what to do, or have complications in your purchase agreement or mortgage. While you may think that you cannot afford the services of your own lawyer, consider whether you can afford not to.

● Chang Kim Loong is the honorary secretary-general of the National House Buyers Association (HBA) www.hba.org.my, a non-profit, non-governmental organisation (NGO) manned by volunteers. He is also a NGO councillor at the Subang Jaya Municipal Council. - The Star

CM flayed over approval of RM8bil project despite objections

GEORGE TOWN: The DAP-led state government should explain to therakyat why it approved the RM8bil road and undersea tunnel project even though several non-governmental organisations (NGOs) are against it.

Penang Barisan Nasional chairman Teng Chang Yeow (pic) said the state government should make public the traffic master plan that “shows a tunnel is required to be built.”

“Have they considered the traffic volumes that would be generated on the Penang Bridge and the second Penang bridge by the end of this year?

“Is there any proper planning by the state authority on such an important infrastructure project?” he said in a statement yesterday.

On Thursday, Penang Chief Minister Lim Guan Eng announced that the state had awarded an RM8bil tender to Malaysia-China joint venture Consortium Zenith BUCG Sdn Bhd.

The project consists of a 6.5km Gurney Drive-Bagan Ajam undersea tunnel, a 4.2km Gurney Drive-Lebuhraya Tun Dr Lim Chong Eu bypass, a 4.6km Lebuhraya Tun Dr Lim Chong Eu-Bandar Baru Air Itam bypass and a 12km road connecting Tanjung Bungah and Teluk Bahang.

Lim had also said the construction company would be given 44.51ha of reclaimed land in Tanjung Pinang on four conditions, one of which was that the concession period for the third link would only be for 30 years and the toll charges must be similar to the second Penang bridge.

Penang MCA party adviser Datuk Koay Kar Huah also criticised the state government for proposing toll charges for the proposed undersea tunnel after they had earlier promised to abolish all tolls in their 2008 general election.

State MCA secretary Lau Chiek Tuan reminded Lim to come up with a solution for the long-standing traffic woes.

“Rather than having to fork out a massive RM8bil in tax payers’ fund, the state should improve the public transport system,” he said. - The Star

Batu Kawan poised for growth with Penang’s new second link

ONCE a quiet backwater, Batu Kawan in south Seberang Prai is undergoing massive transformation after it was picked as the land connection for the second Penang bridge.

Coconut, rubber trees and sugarcane which were once part of the area’s landscape for close to a century slowly made way for oil palm plantations in the 1960s.

Now, the plantations are vanishing and being replaced with concrete structures.

Modern landmark: The State Stadium in Batu Kawan

When the Batu Kawan land was acquired by the state investment arm, Penang Development Corporation (PDC) some 30 years ago, large tracts of land were cleared including for the construction of the State Stadium.

The stadium project and the setting up of an industrial estate were one of the early impetus for the development of Batu Kawan.

Now, the area which faces the South Channel of Penang has become a strategic location following the construction of the RM4.5bil second Penang bridge which links Batu Kawan and Penang island.

Longest in the region: A view of the second Penang bridge under construction set against fishermen's boats at a jetty in the foreground. The new bridge links Batu Kawan to Batu Maung on Penang island

The 24km bridge, which is the longest in South-East Asia, will open to the public in September. The travelling from Penang island to south Seberang Prai will take a mere 20 minutes with the new bridge compared to more than an hour now.

The bridge project has sparked various economic activities including the mushrooming of new housing projects.

Many people on Penang island are buying properties there since the price is believed to be cheaper than that of the island.

New industrial sites, commercial areas and residential schemes slated in Batu Kawan town are expected to create thousands of jobs.

Batu Kawan is heading towards a bustling industrial hub just like the Bayan Lepas Free Industrial Park and the Prai Industrial Area.

It has been touted to be Penang’s third satellite township after Bayan Baru and Seberang Jaya.

Three big companies — Robert Bosch, Boon Siew Honda and VAT Manufacturing Malaysia — have pledged investments totalling about RM10bil to site their manufacturing plants in this town.

The PDC acquired 2,680ha of land from private owners including oil palm plantation owners for the creation of a Batu Kawan Industrial Park that would be developed over 30 years.

Growing population: A general view of the Butterworth Outer Ring Road passing through Prai town. The existing Penang Bridge links Prai to the island

The state had last year announced an ambitious plan to build 11,800 medium-cost housing units under its RM2.7bil Bandar Cassia Affordable Housing Scheme, which would be modelled after Singapore’s Housing and Development Board (HDB) housing schemes.

While many are bowled over by the mega development plans for Batu Kawan town, local resident T. Karunanithi, 38, from Taman Tanjung Mutiara, said he hoped some basic facilities would be put in place in Batu Kawan town.

“The residents need a market, hospital, fire station, petrol kiosks, a shopping centre, post office and banks.

“For now, we have to travel over 2km to the nearest town, Simpang Ampat, for such facilities,” he said.

So far, he said, there is only a police station, a Klinik Rakyat 1Malaysia, a few schools and mini markets in the town. There is also the majestic State Stadium.

Resident N. Gobalakrishnan, 48, from Taman Rasa Ria, Bukit Tambun hoped Penang’s famed seafood restaurants in Bukit Tambun could be further promoted to tourists.

There are some 20 seafood restaurants there. Many people from Penang island make a beeline to the restaurants especially during weekends and public holidays.

Apart from the Bukit Tambun state constituency, the Batu Kawan parliamentary constituency also comprises Bukit Tengah and Prai state constituencies.

The densely populated Bukit Tengah constituency is home to many small and medium-scale industries located in the Bukit Minyak Industrial Park, Penang Science Park, Juru Light Industrial area and Bukit Tengah Light Industrial area.

The factories here provide jobs to many locals here, some of whom live in Perkampungan Juru new village as well as in the fast developing Juru town.

Businessman Ng Boon Theng, 60, from Taman Juru, said rapid development in the last 40 years had transformed the former rubber estate into a modern and busy town.

He said Highway Auto-City Juru, which houses over 60 automobile brand showrooms, food and beverage outlets, entertainment and shopping outlets has become a major landmark in Seberang Prai for its ‘one-stop’ concept.

Ng, however, lamented the terrible traffic congestions in the Auto-City vicinity and between Jalan Juru and Jalan Bukit Minyak during peak hours.

“We hope PLUS can widen some of the road stretches here, especially the slip road turning into Auto-City from the south-bound stretch of the North-South Expressway, which is often a bottleneck.

“We also hope the traffic lights at Auto-City can be better synchronised and the drainage systems in Kampung Tok Panjang and Taman Limau Manis upgraded to prevent flooding there,” he said.

Contractor Abdul Rahim Che Rus, 50, from Bukit Kecil, Juru said police patrolling should be increased especially in the Taman Pelangi flats area where many foreign workers live.

“We also hope the Immigration detention depot for illegal immigrants can be shifted out of Perkampungan Juru.

“Once, there was a leptospirosis outbreak in the depot and it alarmed residents in the neighbouring area,” he said

Abdul Rahim said apart from the million-ringgit caged-fish rearing business in Sungai Udang nearby, there were also some 500 fishermen who made a living off the coasts in Bukit Kecil, Kuala Juru and Sungai Semilang.

“Many locals hope the authorities can build affordable housing units, especially in Sungai Semilang area, for those from the middle income group, like me,” he said.

The Prai state constituency, where the first Penang Bridge is located, also boasts of another iconic bridge — the Prai Bridge — which is part of the RM525mil Butterworth Outer Ring Road (BORR) project that was completed in 2006.

This 1.85km bridge connects Prai old town with Bagan Dalam in Butterworth town.

Another old bridge, the Tunku Abdul Rahman Bridge, which connects Prai town and Butterworth town, is still utilised as part of the main Federal Route One trunk road.

Former factory manager Loh Lau Kee, 66, from Chai Leng Park, Prai recalled how the Prai Industrial Area was developed from a swamp land back in the 70s, with Malayawata and the Pen-Group of companies among the earliest factories there.

“The Chai Leng Park and Prai Garden residential schemes were also developed in the 70s to cater to the growing need for housing, especially among those employed in the Prai Industrial area.

“The Malayan Sugar Manufacturing Co Sdn Bhd (MSM) factory, which was established in Prai old town in 1959, still maintains a unique railway line that runs through its premises to transport goods to other states,” he said.

Loh said while the roads in the Prai Industrial Area needed to be better maintained and lighted, he was relieved that the perennial flooding in Chai Leng Park had been resolved over the last 10 years.

“We hope that the authorities can build a Chinese secondary school on a vacant piece of land behind the Chai Leng Park multipurpose hall to cater to the growing Chinese population here,” he said.

Hawker Lee Kuai Seng, 46, who has been selling hokkien mee in the Chai Leng Park market for over 30 years, said he hoped traffic lights could be re-instated at the Jalan Baru-Jalan Kurau junction to attract more motorists from Bukit Mertajam to turn directly into Chai Leng Park.

“The move will help boost business activities here. We hope the drains around the market too can be regularly cleaned to overcome the rat problem,” he said.

The Batu Kawan parliamentary seat would likely see a three-cornered fight between Barisan Nasional, Pakatan Rakyat and Parti Cinta Malaysia. Independent candidates are also eyeing the seat making it either a four-cornered or five-cornered fight. - The Star