Bad guys, gangster contractors exploit home owners for renovation works

Gangsters corner condo jobs, 'In-house contractors force buyers to accept their services

Runners for the ‘in-house’ contractor manning their counter near the elevator entrance of a newly completed apartment project in Penang. 

GEORGE TOWN: Contractors, some with links to triads, are forcing buyers of high-rise property here to carry out renovation works.

Many of them charge a premium, sometimes up to 20% more than normal contractors.

If the buyers insist on hiring contractors from outside, they are compelled into buying materials such as sand, bricks, cement and steel cages.

Alternatively, the buyers can pay a “settlement” to bring in outside contractors.

Most buyers dare not lodge complaints with the police for fear of retaliation from triad members.

With developers turning a blind eye to the issue, the so-called “in-house” contractors have become more brazen in intimidating buyers.

Although such practices could be traced back to the 1990s, the mushrooming of condominium projects in Penang has made matters worse.

It has been estimated that more than RM10bil worth of projects had been undertaken on the island over the past 18 months.

During a check by The Star at several newly completed apartment blocks in Relau, a man was seen manning a makeshift counter near the lifts.

He said his “company” was selling sand, bricks, cement and steel cages, and providing other services such as hacking and electrical wiring.

When told that the unit owner wanted to bring in his own contractor to carry out tiling works, the stern-looking man said: “You can still buy the steel cages or other materials from us. We will handle your waste as well.”

Another in-house contractor, who declined to be named, claimed that he could offer better prices for construction materials.

“We get bulk discounts from suppliers. If we buy 100 steel cages and you buy only one, who will get a better price?

“Besides, we also know the unit layout better than anyone else. We know where the electrical wiring is hidden in the wall. We also know where to hack inside the house,” he said.

Ideal Property Development Sdn Bhd managing director Datuk Alex Ooi said his group had encountered numerous cases of such triad activities in its projects in the South-West district over the past few years.

“This is because the district is a hot spot for the development of reasonably priced properties.

“Whenever we have such problems, the police are very quick to come in to arrest the culprits.

“We have also tightened the security for our projects in the district and this has reduced such incidents,” he added.

SP Setia Bhd property (North) general manager Khoo Teck Chong said the group’s projects in the South-West district had never faced such problems because of its tight security system.

Penang police chief Deputy Comm Datuk Abdul Rahim Hanafi urged unit owners to lodge reports or call the police hotline at 04-269 1999.

“We do not condone such actions. We need unit owners to provide us with information so that we can act.

“Everyone has the right to choose their own contractors or material suppliers,” he said.

DCP Rahim gave his assurance that the identity of whistle-blowers or affected victims would be protected.

Buyers must pay ‘toll’ to bring in own contractors

GEORGE TOWN: Lecturer W.C. Lim, 35, who bought a high-rise unit in Bayan Lepas, said he had to pay off the so-called “in-house” contractor so that he would be allowed to engage his own builder.

“I knew I could not win them over, so I paid them off just to reach a win-win situation,” he said.

Lim said that although he was forced to fork out extra money, he was glad the issue was resolved amicably.

“I have heard some horrible stories about these contractors, including harassment for not taking up their services.

“Besides, these contractors also dish out shoddy workmanship,” he said.

Another unit owner, Ethan Tan, 31, said he got several quotations when he wanted to renovate his condominium in Sungai Pinang, including one from the in-house contractor.

However, he was told that “external” contractors must buy cement, sand or tiles from the in-house contractor, believed to have links to a secret society.

The materials were about 20% more expensive compared to legitimate dealers.

“To save all the trouble, I ended up engaging the in-house contractor. I knew that if I had brought in my own designer and contractor, there would surely be disruption of work.

“And if my contractors needed to buy the materials from these guys, the exorbitant charges would be passed on to me,” he said.

Tan said he had no regrets, as the workmanship of the in-house contractor was good.

“A plus point is that they will be around for at least a year in case there are defects,” he said.

Clerk Tan Chua Ting, 40, said she had initially wanted to hire her relative to carry out renovation at her newly completed apartment in Bandar Baru Air Itam.

“But he turned me down, saying that he had already been chased out by the in-house contractor,” she said.

Tan then decided to go with the in-house contractor and was satisfied with the work done.

“The quality is there, from the flooring, built-in cabinet, kitchen and the living room.

“I checked with other contractors and they told me the price was reasonable, considering the work done. They even threw me a few upgrades. I have no complaints,” said Tan, who moved into her new apartment early this year.

Triads have been harassing contractors for ages

PETALING JAYA: Triad members have been harassing contractors in the building industry by demanding protection money and asking for jobs, according to an industry insider.

He said such illegal practices had been going on for years and they were common in the Klang Valley and Johor.

He said if contractors did not pay protection money, some triad members would negotiate to be given sub-contract work such as supplying building materials or steel bar bending service.

“These gangsters will approach contractors and claim that the construction site is sitting on their ‘territory’.

“Some ask for monthly payments while others will leave the contractor alone if a lump sum is paid,” he said.

He said that although contractors were uncomfortable with the situation, most were already used to the practice and knew what to expect from the triads.

“We have learnt to manage them and try to speak to them nicely.

Normally, they do not threaten us with force such as by brandishing weapons.

“They will tell us that the area is ‘theirs’ and we have to pay to be ‘guarded’ by them,” he said, urging the authorities to solve the problem and beef up enforcement.

“If contractors refuse to pay gang members, will the police protect us? What will they do about contractors who have been bullied?” he asked.

Higher-end property has no room for triads to exploit 

GEORGE TOWN: There are now fewer cases of triads monopolising renovation works of high-rise buildings in the state, said Penang Master Builders’ and Building Materials Dealers Association.

Its president Lim Kai Seng said many high-rise units were already partially furnished and were priced from RM400,000 onwards.

“This makes it unnecessary for high-rise property owners to engage contractors to do renovation. It also reduces the opportunity for the triads to provide renovation services,” Lim said when commenting on triad-linked contractors who compel high-rise property owners to engage them for renovation works.

He said the triads usually targeted low and medium-cost projects priced at around RM72,000 because these units were sold without any basic renovation package.

He said this allowed them to offer their services at a higher cost, usually at about 20% more.

According to Lim, the triads begun to control renovation works for high-rise buildings in the 1990s when the construction industry in Penang was booming.

“Before that they used to collect ang pow from developers and contractors. They muscled into development projects to broaden their revenue base,” he said.

“Over the years, police have worked with us and the developers to bring down such activities. So far, the authorities have proven to be very cooperative and efficient in arresting triad-linked contractors.”

Lim denied allegations that contractors were in cahoots with the triads to monopolise renovation jobs.

“We have always lodged police reports whenever we received complaints from buyers,” he added.

- The Star contributed to the stories

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Smartwatch trademarks for Samsung "Galaxy Gear"?

Samsung Electronics has applied for US and South Korean trademarks for a watch that connects to the Internet in the latest sign that consumer technology companies see wearable devices as the future of their business.

Samsung described "Samsung Galaxy Gear" as a wearable digital electronic device in the form of a wristwatch, wrist band or bangle in its July 29 application with US Patent and Trademark Office. A month earlier, it applied for a "Samsung Gear" trademark in South Korea.

The trademark applications did not show the shape of the products. But drawings from a Samsung design patent approved in May show a watch-like design with a flexible screen that curves around the wrist.



The US trademark application said the device will be "capable of providing access to the Internet, for sending and receiving phone calls, electronic mails and messages" as well as "for keeping track of or managing personal information."

The trademark filings in the US and in South Korea show that Samsung is deep in preparations for what tech industry experts expect will be a new generation of mobile technology that dramatically expands the utility of single-function objects such as watches and glasses. The South Korean consumer electronics giant was caught flatfooted by Apple's invention of the smartphone but through what turned out to be a legally risky strategy of imitation was able to capture a dominant share of the global smartphone market within a few years.

Apple applied June 3 for a trademark in Japan for "iWatch." Industry watchers have long speculated that Apple is working on a smart watch that uses a version of the operating system that powers the iPhone and iPad. The company has not confirmed those rumors but CEO Tim Cook has hinted it may be developing a wearable computing device.

Google is testing an early version of Internet-connected spectacles called Glass. It uses a small screen above the right eye that displays information and imagery retrieved from the Internet.

The South Korean patent office said the Gear trademark will not be approved this year as it takes seven to eight months to start reviewing applications due to a waiting list. Samsung applied for the South Korean trademark on June 21.

It was not clear if Samsung would use the "Samsung Gear" trademark for a Smart Watch. The trademark application covers 38 possible products including mobile telephones, bracelets, glasses and software interfaces that monitor human vital signs.

South Korea's patent office said in June that Samsung had patented watch designs in which more than three quarters of the device is covered by a flexible display that curves around the wrist. Illustrations showed 'back' and 'home' buttons at the bottom of the screen. Another illustration shows a rectangular screen with an edge that tapers toward the top.

The product is made of metal, synthetic and glass materials, Samsung's patent document said.

Samsung executive vice president Lee Young Hee said in March interview with Bloomberg that the company's mobile division has been working on a smart watch. Samsung declined to confirm the report then.

Company spokeswoman Chenny Kim declined to comment on the patent applications. - AP

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How to grow a small business?

 

IT’S what everyone who’s ever wanted to start a business or already running one aspires to achieve - to grow big. But growing a small business is riddled with challenges.

The following, though not exhaustive, are some examples that will set you on the path to growing your still minuscule venture.

Technology

SMI Association of Malaysia president Teh Kee Sin acknowledges that technology adoption is often an issue for small companies.

“It’s always a challenge. They see technology adoption more as an expense rather than an investment. It’s something that they would rather avoid.

“But adopting technology into your business should not be seen as an immediate expense and rather, a long-term investment.”

Teh admits that one of the biggest nitpicks of small companies is the inability to secure financing to “move to the next level.”

“Many small firms complain that financial institutions demand a lot of unnecessary documents and information that is difficult to be fulfilled. So they get stuck and are not able to move forward.”

Teh says there needs to be more Government involvement so that support from financial institutions can be improved.

Branding

Branding Association of Malaysia (BAM) president Datuk Eric Chong says branding is extremely important for business organisations, regardless of the size of the organisation.

“Big and medium-sized businesses usually understand the importance of branding. They would not be where they are had they not understood and practised the art of branding along the way.

“Small businesses, however, usually struggle tremendously in this area. It is a chicken and egg situation for these small guys - should they make money and maximise profits first, or invest in their brands from day one?”

Chong adds that what a lot of small and medium-sized enterprise (SME) operators fail to understand is that branding isn’t just about spending money on advertising.

“While advertising is an essential part of branding, it takes much more than just splashing money around if one wishes to brand something properly. It is just like gardening - you need to sow the seeds and nurture the plants with consistency. A beautiful garden reflects the absolute commitment of the gardener; similarly, a good brand reflects the absolute commitment of the CEO and his team.

“It is about finding the right brand positioning, creating the right image, building a great brand culture, ensuring superb customer experience, communicate effectively with the market, etc. So is branding essential for SMEs? Yes, it lays the foundation and paves the way for a small entity to, someday, become a respectable player in the market.”

Talents

Leaderonomics chief executive officer Roshan Thiran notes that for many SMEs, leaders want growth but do not want to invest their time or energy to grow their people.

“This ultimately results in their company not growing either. Every company, even SMEs, are limited by the growth of their people. So, as long as your people are not learning and growing, don’t expect your organisation to grow exponentially either.

“As the business world changes, even small companies have become more attractive to young talents. Many start-ups can attract great talents in spite of their size or funds.”

Roshan says that many youths view working at start-ups more attractive than multinational companies.

“SMEs need to leverage this by their own personal inspirational leadership. People are attracted to work in an SME not because you pay well or have a big reputation.

“Instead, it is because of the leader. A great way to attract talent to your organisation is for the leaders and the leadership team to develop their own leadership skills. If you become an inspirational leader, the likelihood of you attracting talent rises significantly.”

Training

Peoplelogy group founder and chief executive officer Allen Lee says many small firms first complain that they have “no time” for training.

“Whenever they say they have no time, I always tell them to ‘make time lor.”

The next complaint, says Lee, is “what if I send them for training and they leave?”

“My response to them is always what if you don’t send them for training and they stay! If this is the case, how could these employees help small business to improve productivity and efficiency, cost savings and customer retention, for example? This also means that you will not have a chance to improve on your sales, cost efficiency, profitability and even your competitive edge.”

Lee believes most companies spend 60% to 70% of their money on people’s salary.

“And yet, they spend less than 1% of their total budget to develop the people. And most companies, in fact, spend more time and money on maintaining their buildings and equipment than they do on maintaining and developing people.

“If people get results, then it certainly makes good sense to invest in people. People are an asset to organisation anyway, regardless if it’s a big or small business.

Diversification

Established in 1974, PKT Logistics Group Sdn Bhd initially offered only customs brokerage services - but is now providing total logistics services.

PKT group chief executive and managing director Datuk Michael Tio believes that diversification was they key to how the company transformed itself into the total logistics provider it is today.

“As we started to diversify our services, our revenue grew. So the first step of growth was to continue to diversify services within the logistics industry by providing more services.

W started off as a custom agent, then subsequently expanded to freight forwarding, haulage, warehousing and so forth.”

Tio says the next step was to look for foreign partners to grow the business.“We found Japanese and Korean partners.

The Japanese provided us with a cushion during the currency crisis and the Korean partnership gave us entry into the automotive logistics sector.”

He adds that PKT started to observe how other multinational logistics companies expanded their revenue.

“We ended up competing with them in the fast moving consumer goods (FMCG) segment because 60% of the industry, or RM2bil, were controlled by them.

We had to overcome several challenges in order to compete with these companies, namely know-how, acquiring new technology, modern infrastructure and most importantly, moving up the value chain.”

  - Contributor: EUGENE MAHALINGAM  eugenicz@thestar.com.my

Fears of gangland wars

Shooting incidents spark fears of gangland war 



GEORGE TOWN: The three shooting incidents, including the assassination of a 37-year-old scrap dealer believed to be associated with Gang 36, which occurred over a span of 24 hours, has spawned speculation of a gangland war.

K. Veerappan was shot when he stopped the BMW 530i he was driving near a traffic light in Anson Road at 11.50am on Thursday.

It bore the registration number WVK 3636, which was believed to symbolise the gang’s number.

A motorcyclist rode up next to the car and the pillion rider whipped out a pistol and fired 14 shots, 10 of which hit his neck, cheek and abdomen.

His body was found slumped and his white shirt drenched with his blood.

The driver’s seat side window was shattered by the gunshots.

George Town OCPD Asst Comm Gan Kong Meng said Veerappan had had three previous drug records, adding that the car he was driving belonged to his 38-year-old friend who lives in Lebuh Macallum.

“Forensic policemen recovered 14 9mm-calibre bullet casings at the scene. Two machetes wrapped in newspaper were found in the car’s rear passenger seat,” ACP Gan said.

Before Veerappan’s shooting, a gunman fired at least six shots at a businessman’s bungalow in Jalan Utama. No one was injured in the 1.15am incident which is believed to be a triad’s warning to the businessman.

Only his 29-year old son, his daughter-in-law and a maid were at home at the time of the incident.

ACP Gan said the businessman, in his 60s, who is presently abroad, had lodged a police report last month after receiving an extortion letter containing six bullets.

“His daughter-in-law and maid found glass fragments from the window on the floor and bullet marks on the walls.

“Based on the CCTV footage, the gunman fired randomly from outside the house,” he said.

ACP Gan said the businessman had also received a text message in Chinese demanding that he deposit money into a local bank account.

“We are checking the mobile phone number from which the SMS was sent and also the bank account which has since been frozen.

“We are investigating the case under Section 39 of the Firearms Act and also Section 506 of the Penal Code for criminal intimidation,” he said, adding that police had not ruled out the possibility that the case could be gang-related.

The third shooting occurred in front of an entertainment outlet in Jalan Datuk Keramat where a 43-year-old bouncer was hit in the left thigh at 12.30am yesterday.

A gunman fired seven shots but only one hit the victim nicknamed Too Pek (Stupid in Hokkien).


Too Pek being taken for treatment at the Penang Hospital.

The bouncer is believed to be one of the top leaders of the Si Lian (Four Tyres) also known as the 04 Gang.

It was learnt that Too Pek had just gotten out from his BMW when the unidentified assailant on a motorcycle shot him.

“Despite being hit, he managed to make his way into the outlet to seek help from his friends. He was later sent to the Penang Hospital where he received outpatient treatment.

“Two foreign cleaners were questioned by the police after they were spotted sweeping up the seven bullet casings which were later recovered from a dustbin,” said a source.

Gangland rivalry linked to the drug trade is also believed to be behind three other shootings – in Parit Buntar, Perak; Batu Kawan, Penang; and Air Keroh, Malacca.

A factory van driver N. Jeevandran, 26 was gunned down while leaving his house for work at Taman Seri Semarak, Parit Buntar on July 31. He had five previous criminal records and was was detained under the Restricted Residence Enactment until the Emergency Ordinance was repealed in 2011.

On May 12, S. Kannan, 37, and G. Suresh, 28, were killed and two others were seriously injured in a shooting at the Bukit Tambun traffic-light junction. They had just left a relative’s wedding when two assailants on a motorcycle pulled up to the vehicle and fired multiple shots at about 10.30pm. Both deceased had criminal records.

Police believe the killings could be related to the shooting of S. Sara-vanan, 39, at Air Keroh in February.
Saravanan, who had travelled from Butterworth to stand trial for a robbery case, was gunned down moments after leaving the courthouse.

- The Star contributed to this story

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Malaysian man rescued daughter from sex trade

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Malaysian man rescued daughter from sex trade

MALACCA: A man had to storm into a house and put up a fight with two men to rescue his 13-year-old daughter from prostitution.

He received a phone call from a woman, believed to be the landlady, who informed him that she had seen two men bringing in other men to the house where the girl was.

He then stormed into the house and found two men inside in the house. The two tried to stop him from rescuing his daughter.

He shouted at the top of his voice when the two men tried to assault him and neighbours came to help him to get his daughter away from there.

Now, with the girl under the care of the Welfare Department, all the father now wants is for his daughter to know how much he loved her and to explain to her why he did what he did.

“I also want to ask her why she got involved with drugs. I told her so many times in the past not to mix with bad hats,” he said in a choking voice yesterday, adding that he had been unable to sleep ever since the incident.

“I can’t believe this is happening. I am still very traumatised.”

“My girl said that she was also into drugs and received RM20 per sex session from her boyfriend, who also brought her to hotels,” he added.

“I broke down when I saw my daughter and also felt embarrassed when I was told by one of the neighbours that she was among several teenagers involved in prostitution in the area.”

Asked about how his wife was handling the situation, he simply said she was “very disappointed” and refused to talk about what she was going through.

The father said the incident on July 26 was the third time the girl had run away from home.

“My heart sank when I received a tip-off from an anonymous person that my daughter was soliciting for clients at a house in Taman Peringgit. She is my favourite. I love her so much that I never raised my voice or hand when she was mischievous,” he added.

The 46-year-old father of four said his daughter excelled in her studies until she joined the wrong company after her UPSR examinations adding that she was also good in sports and had won several tournaments.

The businessmansaid he would never forgive those who prostituted his “darling daughter”, who had run away from home for the first time with her 26-year-old boyfriend in October last year after he had held a dinner to celebrate when she scored 3As in the UPSR.

Police managed to track her down after he lodged a report and a medical examination revealed that she had been raped.

She ran away again with her boyfriend within hours of being found. This time, the couple went to Ampang, Kuala Lumpur.

The family went looking for her again and the father accessed her Facebook account and found out that the daughter’s boyfriend had posted on his account that sexual services were being offered – with his daughter’s details.

He added that he managed to get his daughter back with some friends although the boyfriend managed to escape.

She ran away for the third time in June – and then came the call from the landlady.

Meanwhile, Malacca police have launched a manhunt for a 26-year-old man, who purportedly pimped the girl to nine men.

Malacca police chief Senior Deputy Commissioner Datuk Chuah Ghee Lye said a 36-year-old client has also been charged under Section 376 of the Penal Code on Aug 2 for allegedly having sex with the girl adding that they were hunting for the remaining eight men.

By R.S.N. MURALI  The Star/Asia News Network

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