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Showing posts with label Penang. Show all posts
Showing posts with label Penang. Show all posts

Saturday 19 August 2023

EXOLORE NEW FERRY ROUTES IN PENANG, PPSB TOLD

 

PPSB told to explore new ferry routes

Ferry operator Penang Port Sdn Bhd (PPSB) has been told to explore new routes between the island and mainland, says Transport Minister Anthony Loke.

Loke said after the official launch of the new ferry service at the Raja Tun Uda ferry terminal in George Town on Thursday (Aug 17).

Loke: We can have a new jetty along the coast in Bayan Lepas

GEORGE TOWN: Ferry operator Penang Port Sdn Bhd (PPSB) has been told to explore new routes between the island and mainland, says Transport Minister Anthony Loke Siew Fook.

He said the matter should be looked into as there are those who live in the mainland but work in the free industrial zone in Bayan Lepas.

“We have proposed to the ferry operator to look at other points between the mainland and island where jetties can be built.

“We can have a new jetty along the coast in the Bayan Lepas area.

“The ministry has proposed the ferry operator do a feasibility study on the possibility of new routes in Penang.

“The ferry services should not be confined to carrying passengers from the Sultan Abdul Halim ferry terminal on the mainland to the Raja Tun Uda ferry terminal on the island and vice-versa only,” he said after the official launch of the new ferry service at the Raja Tun Uda ferry terminal here yesterday.

He said PPSB could also look into working with several operators of privately-owned jetties in the state.

“If there is demand, the ministry will have no problem offering new ferry routes in Penang,” he added.

Loke said the first week had seen about 50,000 passengers and 20,000 motorcyclists using the new ferry service that began on Aug 7.

He added that the new ferry service should also be made available for private charters or tourism purposes.

“PPSB can offer any private companies or corporate sectors that want to rent the ferry for events, or any tour agencies that want to bring their tourists to explore Penang through sea routes.

“The operator can venture into this possibility and turn it into a tourism product for Penang,” said Loke.

He added that there were plans to turn the old ferries that had been decommissioned into tourism products.

The launching of the new ferries was officiated by Penang Governor Tun Ahmad Fuzi Abdul Razak.

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Penang's new ferry service begins with first passengers | The Star

Penang's new ferry service begins with first passengers | The Star



Thursday 17 August 2023

PENANG, A YOUNG EXCO TEAM FOR THE FUTURE?

 


Members of the Penang state executive council (exco) took their oath of office today in a ceremony held before the Yang di-Pertua Negeri Tun Ahmad Fuzi Abdul Razak.

BN's Sungai Acheh assemblyperson Rashidi Zinol is the coalition's sole representative in the 11-man executive council line-up, heading the trade and entrepreneurial development, and rural development committee.

Meanwhile, the deputy chief minister I position has been given to PKR's Batu Maung assemblyperson Mohamad Abdul Hamid and Jagdeep Singh Deo has been named as Penang deputy chief minister II.

Ready for the challenges ahead: Chow (right) with the new Penang state executive council members at Komtar. — Pic provided by Buletin Mutiara


GEORGE TOWN: The Penang state executive council, which was sworn in yesterday, is a young and vibrant team capable of taking the state forward, says Chief Minister Chow Kon Yeow.

The average age of the new line-up is 47, eight years younger than the line-up of 2018.

“They are vibrant young professionals. This line-up is capable of spearheading Pakatan Harapan-Barisan Nasional’s challenge right until the next general election,” said Chow, who will be heading the finance, economic development, land and communications portfolio.

However, there was only one woman in the line-up – Sungai Pinang assemblyman Lim Siew Khim. Before dissolution, there were two women – DAP’s Chong Eng and PKR’s Dr Norlela Ariffin.

On the prospect of facing 11 Opposition members from Perikatan Nasional, Chow said his team was up for the challenge.

“We faced 11 Umno members when we first came to power in 2008, and none of us then had any experience in state administration.

“Yet, we overcame that challenge,” said Chow when asked how his exco line-up, comprising seven new faces, would fare.

He said most of the exco members had served at least one term as elected representatives or worked as city councillors.

“They have experience because they were involved in the party activities. If you are talking about debating in Malay, the new generation definitely has better quality with more Bahasa fluency.

Related video: Chow says new Penang exco will weather the challenges (Dailymotion)

 
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“I am sure they will be well-versed about their portfolios in the next six months.”  

We don’t even know if the Opposition members will be aggressive. We don’t really know them. Let’s see,” said Chow, who witnessed the 10 new state exco members taking their oath in front of Yang di-Pertua Negri Tun Ahmad Fuzi Abdul Razak at Dewan Sri Pinang here yesterday.

Encontre as tarifas + baixas - Site Oficial FlyTAP - Voos Porto para Milão Encontre as tarifas + baixas - Site Oficial FlyTAP - Voos Porto para Milão

On PKR getting two instead of three exco slots, Chow said this was because the party won fewer seats compared to the last state election.

He said there were plans to offer the Deputy Speaker’s post to Amanah’s Azrul Mahathir Aziz following his victory against Gerakan president Datuk Dr Dominic Lau in Bayan Lepas.

Batu Maung assemblyman Datuk Dr Mohamad Abdul Hamid, who was appointed the Deputy Chief Minister l, is the Islamic development, education and national unity committee chairman.

“Although I may not have political experience, the portfolios suit me well as I have been involved in the education field for years,” he said.

Four-term assemblyman Jagdeep Singh Deo, who was made the Deputy Chief Minister ll, said he was humbled by his appointment.

Jagdeep, the first Sikh to hold the position, will also oversee human capital development, science and technology this time.

“I have been in the government for 10 years. A change from my previous housing and local government portfolio will be refreshing. I always believe in moving forward,” he said.

The others who made the cut are Zairil Khir Johari (infrastructure, transport and digital development), Wong Hon Wai (tourism and creative economy), Lim Siew Khim (social development, welfare and non-Islamic religious affairs), H’ng Mooi Lye (local government, town and country planning), Gooi Zi Sen (youth, sports and health) and Datuk Seri S. Sundarajoo (housing and environment), all from DAP.

Umno’s Rashidi Zinol is trade, entrepreneurial and rural development committee chairman while PKR’s Fahmi Zainol will oversee the agrotechnology, food security and cooperative development portfolio.

The first sitting of the state assembly is scheduled for October and is expected to be an exciting affair between the Pakatan-Barisan pact and Perikatan.


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Honouring manifesto pledges; ‘Shaping Penang into preferred investment destination’

 

An aerial view of the proposed site for the future LRT station which is beside the Sia Boey Urban Archaeological Park near Komtar.


AFTER the euphoric victory with a two-thirds majority in the 15th state elections, Penang Chief Minister Chow Kon Yeow, immediately got back to work.

Chow, who is in his second and final term as the state’s chief executive, has to deliver on promises made by the Pakatan Harapan-Barisan Nasional pact in the Penang Unity Manifesto 2023.

Several grandiose projects planned by the state government are expected to take off while a few will be completed before his term is up.

The following projects are some highlights of the Penang Unity Manifesto.


The Penang South Island Project will be scaled down to just one island (Silicon Island).

Silicon Island

The man-made island project, measuring 930ha and touted as the economic catalyst and new tourism attraction for Penang, is to house the Green Tech Park (GTP) and Heart of the Island (Hoti) business district.

The reclamation effort, in two phases off the southern coast of Penang island, will take between 10 and 15 years to complete.

The GTP will feature research and design facilities, digital technology infrastructure, ecommerce and business process outsourcing.

Hoti, on the other hand, has been planned as a waterfront commercial hub that will serve as the pulse of the island.

Silicon Island Development Sdn Bhd, which is 70% owned by SRS PD Sdn Bhd, has awarded the design, management and construction of the Phase 1 reclamation works of Island A to turnkey contractor SRS TC Sdn Bhd, a wholly-owned subsidiary of Gamuda.

Phase 1 preparatory works commenced on July 1 this year while physical works will only begin once the company secures Environmental Management Plan approval from the Department of Environment (DOE).

Upon completion, the project designed according to environmental, social and governance (ESG) principles, is expected to attract high-impact investments.


. Chow showing a map of Silicon Island during a press conference at Komtar in this file picture.

GBS By The Sea

With a net lettable floor space of about 300,000sq ft, the project in Bayan Lepas is meant to address the rising demand from Global Business Services (GBS) as well as technology and research and development (R&D) companies.

Developed by Penang Development Corporation (PDC), the project comprising a nine-storey office building and a six-storey multilevel carpark is a multi-million ringgit project.

Upon completion in 2024, AMD Global Services will be the major tenant and will occupy about 209,000sq ft for the expansion of its operations.

Chow was quoted by Buletin Mutiara as saying that the project would ensure Penang’s infrastructure could meet the long-term growth of industry players.

Medi-tech City

The project with a RM9.9bil gross development value in Batu Kawan is earmarked to be an integrated, sustainable and high technology medical city and business hub in Penang.

In January last year, Bernama reported that the project occupying a 93ha plot of land in Batu Kawan was slated for completion in 10 years.

Once ready, it will serve as a medical hub providing eco-tourism and global business services with facilities including hospital, medical campus, medical supply hub, corporate suites, rehabilitation centre, retirement village, hotel, wellness centre, sports centre, electrical and electronics sectors, logistics and distribution hub.

Titijaya Land Bhd and Penang Development Corp (PDC) signed a memorandum of understanding (MOU) to develop this project.

Penang Light Rail Transit

The Federal Government has committed to provide funding for the Penang Light Rail Transit (LRT) project which will be undertaken by Mass Rapid Transit Corp Sdn Bhd (MRT Corp).

It was announced that there will also be a major enhancement in the much anticipated project’s first phase.

Instead of just stretching from Bayan Lepas to Komtar, the LRT line will go all the way to Tanjung Bungah, covering a 29km distance and making 27 stations available.

Work packages are expected to be tendered by the year-end and the project is expected to be completed in five years.

Juru-Sungai Dua Elevated Highway

Under the Penang Transport Master Plan, it has been proposed that the Juru-Sungai Dua Elevated Highway project at the Juru Interchange on the mainland is to be upgraded to a “diverging diamond interchange”.

The upgrading project is important to address severe congestion along the North-South Expressway and at the signalised Jalan Kebun Nenas-Jalan Perusahaan T-junction.

Lane widening and synchronising traffic signal timing at the Jalan Kebun Nenas-Jalan Perusahaan T-junction have also been proposed.

Chow said the dedicated bypass from Juru to Sungai Dua toll project would be a long-term traffic dispersal plan.

He said the project should be modelled after the Ipoh Selatan-Jelapang through-traffic stretch, which separates the traffic between the expressway and the slip road to Ipoh city.

Chow was quoted by Buletin Mutiara as saying that the proposed project would be able to address traffic woes in major parts of Penang mainland.

He said traffic congestion in that area (Juru-Sungai Dua) had deeply impacted road users.

This component is still a proposal and subject to approval and changes.

Penang Hill Cable Car

Set to be another iconic tourist attraction, the cable car system will help the tourist-load balancing by complementing the 100-year-old funicular railway from Ayer Itam.

Its lower station will be built near Penang Botanic Gardens. Included are the construction of a public transport station and a multi-storey parking complex.

The system with 43 gondola cabins will have the capacity of 1,000 passengers per hour at a speed of 6m per second.

There will be 15 towers along the line and the journey from the lower to upper station will take 10 minutes.

In June this year, a concession agreement was signed between Penang Hill Corporation and Hartasuma Sdn Bhd, which will own the tourist attraction concession over the next 30 years.

The proposed investment of at least RM245mil by Hartasuma will also include beautification of surrounding areas of Penang Botanic Gardens.

The project is expected to be operational in three years.

Tanjung Bungah-Teluk Bahang Dual Carriageway

The project, popularly known as the North Coastal Paired Road (Package One), is one of the three new roads under the Penang Undersea Tunnel project.

Early reports indicated that the project will be a four-lane road from Teluk Bahang which will end in the L-shaped road bend known to locals as the Vale of Tempe – a two-lane road in Tanjung Bungah.

The North Coastal Paired Road will pass the Batu Ferringhi tourism belt which often experienced gridlock during the holidays.

According to the project’s environmental impact assessment (EIA), the travel time from Tanjung Bungah to Teluk Bahang using the existing road is between 20 and 23 minutes.

The proposed highway will reduce travel time to nine minutes with vehicles travelling at about 70km/h.

The existing federal road that motorists currently use is more than a century old. Sandwiched between private land and public beaches makes the possibility of upgrading and widening it nearly impossible.


The RM851mil (Package Two) bypass measuring 5.7km linking Ayer Itam to Tun Dr Lim Chong Eu Expressway is expected to be completed in 2025. — Filepic

Ayer Itam-Tun Dr Lim Chong Eu Expressway Bypass

The Ayer Itam-Tun Dr Lim Chong Eu Expressway Bypass (Package Two) is one of three road projects that are part of the Penang Undersea Tunnel project.

The 5.7km bypass linking Ayer Itam to Tun Dr Lim Chong Eu Expressway can reduce travel time and bring long-term benefits to Penang residents, especially some 300,000 folk living in Ayer Itam, Bandar Baru Ayer Itam and Paya Terubong.

The toll-free project will stretch 1.8km at ground level while some parts are elevated.

There are viaduct structures (65%), tunnels (20%) and grade sections (15%) on this road.

The entire project is slated for completion in 2025 and is currently 38% complete.

Sungai Bakap Bypass

The 1km bypass will link to Jalan Sungai Bakap from the North-South Expressway (southbound) on Penang mainland.

It is among the initiatives to tackle traffic woes on the mainland via the Seberang Prai City Council Strategic Plan 2023-2030.

Buletin Mutiara reported that the Public Works Department (JKR) had prepared the project’s estimated cost, adding that the department was in the process of coming up with paperwork to be submitted to the Penang government.

The procurement process of appointing a consultant will begin once the project paper is approved by the Penang government.

For now, there are still issues to be resolved with the Malaysian Highway Authority.

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‘Shaping Penang into preferred investment destination’

Based on the manifesto, p-hailing riders are to get personal accident insurance coverage. — KT GOH/The Star

WHILE some believe the “Penang Unity Manifesto 2023” will benefit Penangites, others feel more can be done for lower-income groups.

Property agent Sam Ooi, 43, said Silicon Island development would help boost employment opportunities and attract high-impact investments.

The Medi-tech City and GBS by The Sea projects would benefit the local construction industry, generate employment, and create economic spillover effects, he said.

“The unity manifesto will boost the state’s appeal as the preferred investment destination,” he said, adding that there should also be more affordable housing to help the locals,” he said.

He said Penangites could look forward to high-income jobs and their income would then correlate with their spending.

“With better income, they will be able to buy properties to settle down here.

“The market is slowly picking up post pandemic. Many are buying properties not as investments but to live in.

Maison Martell commemorates the Year Of the Rabbit with a spectacular new limited addition to the Zodiac Edition collection of the LOr De Jean Martell 1715 the Assemblage du Lapin Photos Handout


Ooi: Silicon Island, Medi-tech City and GBS by The Sea projects will be a boost to Penang.

“Younger folk tend to buy small units but with the incentives offered in the manifesto, they may be able to afford bigger units,” he added.

Sundry shop manager Mohd Iqbal Abdullah, 33, said more could be done for the B40 group.

“At a glance, only p-hailing and ehailing drivers, taxi and bus drivers will benefit from monetary incentives and personal accident insurance coverage.

“Such aid should be extended to people under the B40 category, or those earning below a certain amount.

“My basic salary is RM2,500. I am now managing with my wife’s help but we will become parents soon, so money will definitely be tighter.

“Perhaps the state can look into having incentives for new parents besides the one-off payment,” he said when met at an eatery in Tanjung Tokong.

Mohd Iqbal said he was interested in the B40 Affordable Housing scheme, which would be sold between RM100,000 and RM150,000, as well as the rent-to-own units.

“I would love to own a home. It will be nice to settle into a home with the baby coming.

“I hope I am eligible for a unit as it is hard to own a home in Penang,” he said.

S. Raakesh, 27, is disappointed as there are no incentives for youths who are in debt because of student loans like him.

“The incentives seem to cater to certain groups only, and are not for everyone,” said the software quality assurance engineer.

“While the affordable housing pledge is great, I hope all of us qualify and can apply for it.”

Business executive Chew Seak Wei, 42, said the LRT project would help ease traffic congestion.

“Hopefully, during the construction stage, the authorities will manage traffic efficiently to reduce congestion, pollution and noise,” he said.


Tan: Medi-tech City will create high-skilled jobs for Penangites.

Bank loan officer Zoey Tan, 40, said the Medi-tech City project would create high-skilled jobs for Penangites.

“This will help improve the household income and increase purchasing power.

“The project will also, in a way, halt brain drain,” she said.

On Aug 1, the Pakatan Harapan-Barisan Nasional pact launched its manifesto comprising 16 main themes, 15 highlights and 50 manifestos.

The 16 main themes cover the people’s welfare, socioeconomic well-being, essential infrastructure development, rural development balance, human capital development, women and youth employment, food supply security, traffic management initiatives, environmental resilience towards climate change and housing for all.

It also touches on boosting high-skilled employment, upholding the Islamic faith based on the Malaysia Madani principle, strengthening the tourism and service sector, promoting multicultural harmony, upholding democracy and protecting Penang’s rights.

Among the highlights are establishing a State Social Development Fund for the needy through collection of medical health fees from foreigners.

Haj pilgrims from the B40 group will also receive a one-off RM1,000 assistance while aid of RM600 per year will be provided to ehailing drivers besides personal accident insurance for p-hailing riders.

The manifesto also pledged to continue assistance of RM600 per year to taxi and school bus drivers.

For education, the manifesto pledged an RM60mil allocation by 2030.

The pledge also mentioned a target of building 220,000 affordable housing units, of which up to 100,000 units will be offered through the “B40 Affordable Housing” scheme priced at RM100,000 to RM150,000 as well as 22,000 rent-to-own units by 2030.

The manifesto also touched on introducing a Special Rental Housing Scheme for youths or single individuals, a one-off RM500 sum for newly-weds known as Golden Couple Programme, and free laptops for B40 students who receive offers to study at public institutions of higher learning.

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It’s time for Penang to reinvent itself; RM70bil to be raised from the 3 man-made islands to finance LRT, PIL infrastruture under PTMP


Saturday 20 May 2023

Starting salaries are higher now

 

Having what it takes: Among the criteria that recruiters look at before hiring were if prospective employees were willing to take up the challenges and go the extra mile to execute and deliver their work. — CHAN BOON KAI/The Star

 

https://cdn.thestar.com.my/Content/Images/job_vacancies_19052023.jpg

GEORGE TOWN: Starting salaries for fresh graduates entering the job market has risen by about 30% compared with before the pandemic due to lifestyle and high cost of living, say recruiters and human resource practitioners.

In Penang’s hotel and tourism industries, starting salaries for fresh graduates now are at RM2,500 onwards while in the manufacturing sector, the starting salary for engineers can be RM4,000 and as much as RM5,000.

Malaysia Association of Hotels (MAH) Penang chairman Tony Goh said the higher salary is due to the supply and demand in the tourism industry and taking into account the current higher cost of living.

“For us now, salaries are definitely higher compared with before the pandemic. We don’t expect them (new graduates) to work with a basic salary of RM1,300 to RM1,500 like before.

 “The second thing is, people must be able to sustain the lifestyle they need while working with us, hence the need for higher basic salaries,” he said.

He said the minimum wage rule imposed by the government last year contributed to the generally higher salaries for all other positions now.

He said new graduates who are eligible and qualified would be paid a basic salary of around RM2,500, excluding allowances.

Since May 1 last year, employers with five or more workers were required by the Minimum Wages Order 2022 to increase the minimum wage to RM1,500.

Goh said among the careers sought by new graduates in the hotel and tourism industries are receptionists, executives, sales coordinators and administration executives.

In an exclusive report yesterday, The Star revealed that industry research showed that fresh graduates’ salaries ranged from about RM2,600 to almost RM2,900 in the Klang Valley and Johor Baru, while it was about RM2,400 in Melaka.Leaders of business NGOs interviewed opined that fresh graduates should manage their starting salary expectations, on top of reviewing their life goals.

But a check in Penang’s manufacturing sector showed that graduates with Science, Technology, Engineering and Mathematics (STEM) capabilities might enjoy a much better starting point.

Factories can pay fresh graduates as much as RM5,000 if they are involved in the design and development of integrated circuits, said Malaysia Semiconductor Industry Association’s Datuk Seri Wong Siew Hai.

“Generally, any STEM graduate working in Penang’s factories can expect a starting pay of about RM3,500,” he said.

He urged parents to help their children develop a passion for STEM to give them a good starting point after getting their first degree.

Pentamaster Corporation Berhad group executive chairman Chuah Choon Bin said the median salary for STEM graduates in Penang now is about RM4,000, and this is due to the surge in foreign direct investments (FDIs) in Penang last year.

“Because of the high FDI, there is a lot of competition for manpower, so multinational companies increase the offered pay to attract skilled workers and fresh graduates,” he said.

Chuah, however, said this year, the hiring wave is down a bit due to the slowing global consumer market, the trade war and the war between Russia and Ukraine.

He said some companies have started slashing down their workforce by implementing voluntary separation schemes and shortening operating hours to cut costs.

Chuah said he expects the slowdown to continue until the end of the year, depending on the outcome of the Russia-Ukraine war and how intense the trade war between the United States and China would be.

Human resource specialist Azimah Aziz said that normally starting salaries are based on job scope and the candidate’s experience.

“For example, for the starting salary of a research assistant in aquaculture, the basic pay starts from RM2,900 for a fresh graduate,” she said.

She said among the criteria that recruiters look at before hiring were if prospective employees were willing to take up the challenges and go the extra mile to execute and deliver their work. 

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Fresh grads want too much

thestar.com.my/news/nation/20

... if you have a Master’s degree, it sets you apart from others and your employability may be higher for a managerial position in the industry, compared with someone who does not possess such a qualification...


 
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Saturday 15 April 2023

Regulating short-term stays in Penang, such as Airbnb Hosts, homestays

 Stating it clearly: A banner is hung at the entrance stating the ban on short-term homestays at one of the apartments in Gelugor, Penang.ZHAFARAN NASIB/The Star

 GEORGE TOWN: Residential property investors hoping to make a killing from the short-term stay business are likely to find it an uphill task with the new regulations in place.

State local government, housing, town and country planning committee chairman Jagdeep Singh Deo said other residents would now need to give their consent to units being used for short-term stays.

“I do not think it will be easy for one to gain approval from all other residents in a high-rise building. Even then, there are limitations.

“They will need to have a general meeting and seek approval.”

Jagdeep said the Penang government has two guidelines for short-term stays – one for high-rises and the other for landed properties.

“Both guidelines were approved by the state executive council on March 8 and will now be enforced.

“We have received many complaints regarding short-term stays. Such practices disrupt the lives of other residents,” he said.

“We formulated these guidelines not to deny property owners the right to rent them out, but to regulate short-term stays.”

Jagdeep said that for stratified projects classified as residential, one must first obtain approval from the joint management body (JMB) or management corporation (MC) through an AGM, on top of complying with other terms in the guidelines.

“Serviced apartments classified as being in a commercial zone must comply as well.

“If approval is given (for the residential or commercial properties), the short-term stay must not be for more than three days per reservation.

“On top of that, each unit must not be booked for more than 180 days in a year,” he added.

Jagdeep said many residential high-rise buildings had put up banners clearly stating that short-term stays are not allowed.

“It is clear that it will be difficult for people to convince many JMBs or MCs to allow them to use their units in that way,” he said.

Jagdeep said hotels in Penang are well equipped to cater to the needs of tourists.

“We must be fair to the people and the tourism sector,” he said.

Malaysian Association of Hotels (MAH) national vice-president Datuk Khoo Boo Lim said the guidelines would help hotels.

“We are not able to stop them from operating but with rules in place, there will be no abuse.

“They will need to follow guidelines and only those who comply will be allowed to operate.

“This will definitely help hotels as the number of short-term stay units will drop,” he said.

However, the Asia Travel Technology Industry Association (Attia) urged the state government to reconsider its decision to enforce the new guidelines.

It said the new guidelines are “untested, disproportionate, and complicated”.

“The Penang Government should have considered co-regulation and self-regulation approaches, such as voluntary code-of-conduct style frameworks, which have successfully reduced noise and nuisance issues in short-term stay homes without imposing onerous requirements,” the association said in a recent statement.

Attia said most short-term stay hosts are individuals and not companies, and such individuals could be “pushed out from participating in the lucrative sharing economy”.

The association said short-term stays complement hotels by catering to “price-sensitive digital nomads and youth travellers”, and also families wanting to rent a whole house for their holidays.

Attia is an NGO representing global businesses dealing in travel and tourism in Asia Pacific, including online room and flight booking portals. 

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 Homestays, a booming business: Homes vs hotels, a study of the industry

 

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Tuesday 19 April 2022

Regaining momentum, property sector to recover despite challenges

 


WITH the country finally transitioning into endemicity, the Malaysian property market is expected to regain its momentum this year.

However, despite the better economic growth recovery projected for 2022, the National Property Information Centre (Napic) has cautioned that the environment still remains challenging.

“The health of the residential sector is paramount to the overall performance of the property market,” Napic says in its 2021 property market report.

“The transition to the endemic phase of Covid-19 starting April 1, 2022, will see the lifting of restrictions of business operating hours and the reopening of country borders, which is expected to further improve domestic economic activities and entail better prospects for the leisure sector,” it adds.

Napic emphasises that the transition phase is a much-needed boost for the local property market.

“This will translate into better occupancy of hotels apart from creating employment opportunities for the locals.

“Nevertheless, the environment will remain challenging for the retail and office sector as more new supply enters the market in the near future.”

As the industry normalises and adapts to the new norms of working from home and market digitalisation, Napic says the office and retail sectors may continue to face downward pressure in 2022.

“On the development front, major ongoing infrastructure projects are expected to spur economic activities and the property market in the long run.”

As the economy is set to be on the right trajectory, Napic says the property market’s performance is expected to be on a similar track.

Accommodative policies

“The accommodative policies, continuous government support and execution of all planned measures outlined in Budget 2022 and proper implementation of strategies and initiatives under the 12th Malaysia Plan are expected to support growth in the property sector,” it says.

According to Napic, the residential sub-sector led the overall property market activity in 2021 with a 66.2% contribution in volume.

There were 198,812 transactions worth Rm76.90bil recorded in the review period, which was an increase of 3.9% in volume and 16.7% in value year-on-year.

The improvement was supported by the uptrend recorded in Kuala Lumpur (4.9%), Selangor (10.7%), Pulau Pinang (16.3%) and Perak (3.2%). Conversely, Johor recorded a decline in market activity by 2.4%.

The primary market saw fewer releases of new launches. There were nearly 44,000 units launched in 2021, against 47,178 units in 2020.

Napic says the decline was expected as developers held back on the new launches due to the softening property market and increasing numbers of unsold inventories.

Sales performance was moderate at 39.3% in 2021.

A property analyst says the property market will, as always, continue to be driven by the residential sub-sector.

“Even without the Home Ownership Campaign (HOC), there is renewed enthusiasm among purchasers and buyers – something that was lost over the last two years as a result of the Covid-19 pandemic.”

To help spur the property market, the government introduced the HOC in June 2020 under the Penjana initiative.

The campaign ended on Dec 31, 2021. Many industry observers and property players believed that the HOC was indeed a huge help to the market and urged the government to extend the campaign period into 2022.

Following the conclusion of the HOC, Hong Leong Investment Bank (HLIB) Research says the “tables have turned” in favour of the affordable housing segment.

Comparative advantage

“Prior to the introduction of the HOC, the affordable housing segment enjoyed stamp duty exemption for property value up to RM500,000.

“With the introduction of the HOC, the affordable segment lost its comparative advantage as the stamp duty exemption was extended to property value up to Rm1mil,” it says in a recent report.

HLIB Research notes that in 2021, when the HOC was still in place, the percentage of residential transactions below RM500,000 had declined, likely due to home buyers rushing to take advantage of the HOC campaign before it ended on Dec 31.

“With the ending of the HOC, the tables have once again turned in favour of the affordable housing segment, as purchases in this category will continue to enjoy stamp duty exemptions.

“Even during the HOC campaign, the affordable housing segment was still the most demanded segment, comprising more than 75% of the number of residential transactions.”

Citing the Statistics Department, HLIB Research says as much as 20% or 580,000 households from the M40 households had shifted to the income limit of the B40 group in 2020.

“The broadening base of the lower-income group, coupled with the rising living cost from inflationary pressure, especially on the food cost, will bolster demand within the affordable home segment, as home buyers will likely opt for affordable housing due to income constraints.”

Meanwhile, RHB Investment Bank says inflationary pressures and the timing of the election could swing sentiment.

“On the macroeconomic front, we are also cautious on rising inflationary pressure, which may potentially dampen household disposable income.”

Apart from the expected increase in interest rates in the second half of this year, the research house points out that food and consumer product prices are also on the rise, which is in line with commodity prices.

“Given that the market has just recovered from last year’s lockdown, demand for property may be negatively affected if inflationary pressures worsen further, as property is deemed a big-ticket item that is considered non-discretionary.”

Given the conclusion of the state elections in Melaka, Sarawak and Johor over the last six months, RHB Investment Bank says some political parties are calling for the next general election to be held soon.

“Historically, the performance of most property stocks tend to be lacklustre six months prior to an election, possibly due to the uncertain outlook and potential policy changes after an election.

“As the next general election is due by July 2023, we think speculation will be rife in the coming months on the timing of the event.”

Rising building costs

HLIB Research notes that building materials costs have been rising persistently since 2021.

“From what we gathered, key raw materials such as steel and cement have risen more than 20% on a year-on-year basis.”

Under such a rising cost environment, the research house says property developers that will fare relatively better are those that outsource their construction work to third parties.

“This is as their construction cost will be locked in at a lower cost (amid the rising cost environment) when the job is outsourced.”

For new launches, HLIB Research says developers will likely be able to outsource the jobs at competitive prices.

Competitive job tenders

“This is because new job tenders among contractors will likely be very competitive (due to fewer job tenders available), as developers are more cautious in their launches due to the subdued property sentiment.”

In order to secure jobs to ensure positive cash flow, HLIB Research says contractors may be willing to sacrifice some margin to win job tenders from developers.

“Besides this, developers that enjoy high take-up rates in their launches are also those that are likely to have better pricing power, enabling them more flexibility to adjust selling prices to sustain their margins.”

RHB Investment Bank also acknowledged that major commodity prices, such as crude oil, steel bars, copper and aluminium saw significant price hikes.

“The resulting price increases in cement, sand, tiles and related products collectively added to the surge in total construction costs.”

Assuming the uptrend in commodity prices persists over the next six-to-nine months, RHB Investment Bank says developers will tend to be more prudent with their launches.

“Developers will likely resize or redesign, as well as maintain the selling prices and affordability of their products or look for alternative construction materials that are cheaper in an effort to mitigate cost pressure.”

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