Malaysian new hope for the housing industry with new government

MALAYSIANS have been in an uplifting mood, with the various measures announced by the new government since the new Cabinet was formed.

Out of my passion for the housing industry, I am paying special interest and attention to Pakatan Harapan’s proposals on housing matters. There are several initiatives which will give a new breath of life to the industry if they are implemented successfully.

In its manifesto, Pakatan Harapan promises to build one million affordable homes within two terms of their administration. This is a realistic and encouraging move to address the affordable housing issue in Malaysia.

As mentioned in my previous article, I often wondered why the previous government didn’t directly drive affordable housing. I was enlightened when a friend told me last year, “The reason is that there isn’t any ‘money’ involved in affordable housing”. Given the new government’s promise of a cleaner government, I believe this is the right time.

To build one million affordable houses within two terms means that the government needs to build an average of 100,000 homes every year. This exceeds our yearly residential housing production recorded for the past few years.

To make this a reality, the government needs to put in real money to make it happen. The previous government depended on the private sector to drive that number. However, as we have seen from successful public/affordable housing models from Hong Kong and Singapore, our government should be the main driving force in providing affordable homes.

The reasons for such success are obvious. Governments have control over land, approval rights, public funds and development expertise. Given enough political will, and backed by tax payers’ funds, we can achieve these targets.

According to the manifesto of the new government, the above mission will be carried out by a National Affordable Housing Council chaired by the Prime Minister. Setting up a central authority has been suggested by Bank Negara and also in this column before. A centralised system will ensure effective planning and allocation of affordable homes, just as is done by the Housing and Development Board (HDB) in Singapore.

Currently, we have different agencies looking at affordable housing, such as the various State Economic Development Corporations (SEDCs), Syarikat Perumahan Negara Bhd (SPNB), Perbadanan Kemajuan Negeri Selangor (PKNS) and 1 Malaysia People’s Housing Scheme (PR1MA).

Many of them are working in isolation from one another and some have strayed from their original purpose.

In Singapore, prior to the formation of the Housing and Development Board (HDB) in 1960, less than 9% of Singaporeans stayed in government housing. Today, HDB has built more than a million flats and houses. About 82% of Singaporeans stay in HDB housing, according to HDB’s annual report. It is a great example for reference.

Based on the recently published statistics from the National Property Information Centre (Napic), the total residential homes in Malaysia as at the end of 2017 was 5.4 million. Low-cost houses and flats accounted for 21% or 1.15 million of the total.

Some may question whether the number of low-cost homes is sufficient. However, there may be some “leakages” or misallocation in the previous distribution system that caused qualified applicants to face difficulties when buying or renting a low-cost home.

Many years ago, The Star reported that thousands of government housing units in Kuala Lumpur were being sub-let to third parties at five times above the control rental price. It stated that the number of applicants for low-cost units in Kuala Lumpur had reached 26,000, and that many of them had been on the waiting list for more than a decade.

It was even rumoured that some low-cost housing units across Malaysia were sold to political nominees, instead of going towards the rakyat who really couldn’t afford housing. If this practice did actually happen, it is disgusting and should be reviewed.

It is timely for the new government to inspect whether our low-cost homes have fallen into the wrong hands. It is essential to repair the allocation system and stop any form of corruption while building more low cost and affordable homes.

The new government’s manifesto to coordinate a unified and open database on affordable housing, can be one of the solutions to the matter.

In addition, the idea of managing a rent-to-own scheme for lower income groups is a positive measure to encourage residents to take care of their houses, as they will eventually own them.

I am glad to see the manifesto of the new government addressing many areas of concern in building homes for the rakyat. We understand that it takes time to implement these new measures. The rakyat will need to be patient for these new measures to reap their full results. We hope that a fresh start in the right direction will finally shine some light at the end of the tunnel.

By Alan Tong - Food for thought

Datuk Alan Tong has over 50 years of experience in property development. He was the World President of FIABCI International for 2005/2006 and awarded the Property Man of the Year 2010 at FIABCI Malaysia Property Award. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.


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First among equals: Putin and Xi had an official meeting before the Shanghai Cooperation Organisation summit in Qingdao. Sloppy US policies have helped to build a growing China-Russia alliance for a full decade now.- AFP

THE week that was ended with a significant non-Western event often ignored or misunderstood by the West: the latest Shanghai Cooperation Organisation (SCO) summit.

The 18th annual SCO summit in the Chinese port city of Qingdao this weekend is only the fourth held in China. Beijing is relaxed about its role in a growing organisation of eight member countries, six Dialogue Partners and four observer nations – a confidence that suggests considerable clout.

China and Russia are the two hulking members of a group that boasts formal parity, being the conspicuous “firsts among equals.” And as two consecutive US administrations unwittingly drive these giants closer than ever before strategically, Western attention is led astray.

Western reports track President Putin’s travel to Qingdao and the diplomatic niceties exchanged there. At the same time, Western commentators are tempted to dismiss the summit as yet another futile talkfest.

Both approaches are wrong or misplaced. While Xi-Putin exchanges may not be the highlight of this year’s SCO summit, neither are they insignificant.

Sloppy US policies helped to build a growing China-Russia alliance for a full decade now. This is evident enough from the meeting rooms of the UN Security Council to the battlefields of Syria to the South China Sea and the Baltics.

The latest SCO summit reaffirms the trend but adds only marginally to it by way of atmospherics. There are more important developments visible at, if not represented by, the Qingdao summit.

It is the first SCO summit at which both India and Pakistan arrive as full members.

Beginning as the Shanghai Five in the mid-1990s, the SCO has grown steadily and now incorporates three giants – China, Russia and India – in the great Eurasian land mass where both the US and the EU have scant inputs.

With Pakistan coming in at the same time as India as an equal partner, the SCO should be free from any sub-regional turbulence within South Asia.

Turkey is also an SCO Dialogue Partner whose interest in full membership is not without broader implications for the West.

Turkey has considerable military strength and is also a member of Nato, hosting its Allied Land Command and a US air base in Izmir. However, Ankara’s years-long effort to join the EU has been snubbed by Brussels.

Turkish President Recep Tayyip Erdogan has famously mulled over choosing between the EU and the SCO, reportedly preferring the latter. How would the West find a Nato member joining a non-Western group led by Russia and China?

Deep-seated discomfort would be a mild way to put a reaction in Brussels and Washington. To US policymakers, Turkey is a strategic country because of its location as well as its status as a prominent Muslim country.

Both China and Russia have sounded positive about Turkey’s prospective membership of the SCO. Nonetheless, SCO members share an understanding of sorts that Turkey may have to forego its Nato membership before SCO membership can be entertained.

However, Beijing and Moscow may be less concerned than Washington and Brussels about Turkey’s SCO membership with its Nato credentials intact. That immediately makes Turkey more comfortable to be in SCO company.

Turkey has already received what amounts to special treatment within the SCO that no other Dialogue Partner has enjoyed. Last year it was elected as Chair of the SCO’s Energy Club, a position previously enjoyed only by full members.

Erdogan has called the SCO “more powerful” than the EU, particularly in a time of Brexit. Bahrain and Qatar seek full SCO membership; Iraq, Israel, Maldives, Ukraine and Vietnam want to be Dialogue Partners; and Armenia, Azerbaijan, Bangladesh, Egypt, Nepal, Sri Lanka and Syria want Observer status.

Iran already has SCO Observer status and had applied for full membership in 2008. Following the easing of UN sanctions on Tehran, China declared its support for Iran’s membership bid in 2016.

The recent US pullout from the Joint Comprehensive Plan of Action (“Iran nuclear deal”) has further prodded Tehran to “look East.” These days that means China and a China-led SCO.

Iran already trades heavily with China with myriad deals in multiple sectors. Mutual interests abound, far exceeding the basic relationship of oil and gas sales to China.

As Europe treads carefully, mindful of possible new sanctions on Iran following the US cop out, cash-rich Chinese firms take up the slack. US policy is also pushing Iran, among others, closer to China.

In preparing for Prime Minister Modi’s arrival in Qingdao on Friday, Indian Ambassador Gautam Bambawale said both countries were determined to work in close partnership and would never be split apart.

This echoed two main points already shared by Indian and Chinese leaders – that their countries are partners in development and progress, and what they have in common are greater than their differences.

All of this seems set to undo the Quadrilateral Security Dialogue (Quad) that groups the US with Japan, Australia and India, all boasting a democratic system in common in a joint strategic encirclement of China. But India’s relations with China have been on the upswing for half a year now.

The day before Modi arrived in Qingdao, a Quad meeting in Singapore closed on Friday with India expressing differences with the other members. Its Ambassador to Russia Pankaj Saran said the Quad was not the same as its hopes for an inclusive “Indo-Pacific region” (IPR) that did not target any country.

He added that India wanted closer ties with Russia as well in an IPR. Just a fortnight before, Russia’s recent Ambassador to the US Sergei Kislyak said President Trump also wanted closer ties with Russia.

That was only a small part of the roller-coaster ride of international diplomacy in the first half of 2018.

In January Trump condemned the Taliban for a spate of attacks in Afghanistan, vowing that all talks with them were off. Until then, top US diplomats were carefully planning negotiations with the Taliban.

In March, US officials blasted Russia for allegedly arming the Taliban, which Moscow denied. The following month Nato voiced support for Afghan President Ashraf Ghani’s efforts to talk with the Taliban to “save the country.”

Meanwhile Trump’s ramparts of trade barriers in the direction of a trade war would decimate allies from East Asia to Europe. French President Emmanuel Macron expressed a European position in reaching out to China on climate and security issues.

By March the EU had dug in, preparing for the worst of US trade barriers while vowing retaliation. The WTO also warned Washington that it was veering towards a trade war with tariffs on steel and aluminium.

In April, China’s new Defence Minister Gen. Wei Fenghe arrived in Moscow for talks with his Russian counterpart Sergei Shoigu. Wei rubbed it in for Washington, publicly announcing that his visit was to show the US the high level of strategic cooperation between China and Russia.

Two days later the Foreign Ministers of China and Russia expressed similar sentiments. They championed negotiations and sticking to pledges while weighing in against the unilateralism of a unipolar power.

Where China has the SCO, Russia has the Eurasian Economic Union (EAEU).

If any discomfort is felt in Washington, it is from acting as a unipolar power in an increasingly multipolar world.

Source: Behind the headlines by Bunn Nagara is a Senior Fellow at the Institute of Strategic and International Studies (ISIS) Malaysia.



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Deep discussion: Dr Mahathir, Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail and National Centre for Governance, Integrity and Anti-Corruption director-general Tan Sri Abu Kassim Mohamed having a chat after a ministry event in Putrajaya. — Bernama

KUALA LUMPUR: They know where he is. But they can’t get their hands on him.

That is the predicament that the authorities face in bringing back Malaysia’s most wanted man these days – Low Taek Jho better known as Jho Low.

Low is at the centre of the debt-laden and scandal-ridden 1Malaysia Development Bhd (1MDB) that is a thorn in the administration of the previous Barisan Nasional government.

Prime Minister Tun Dr Mahathir Mohamad said Low is in a country in which Malaysia does not have an extradition treaty with.

"We are trying to arrest Jho Low, but he is not in the country. And we do not have extradition rights in the country where he is at,” said Dr Mahathir without disclosing the country.

Legal experts say while it is not impossible to bring him back despite the absence of extradition treaty with the country, they cautioned this can be a long and tedious process.

Low has been identified as the mastermind behind 1MDB, which is the subject of investigations by Malaysian as well as international authorities for alleged corruption and money laundering.

1MDB accumulated debts of more than RM35bil in ringgit and US dollar denominated bonds in less than five years from 2009. Most of the money raised were placed outside Malaysia, which the Government is trying to recover.

Apart from Low, the principal officer in another 1MDB-related company is also on the wanted list.

The Malaysian Anti-Corruption Commission (MACC) has issued an arrest warrant for SRC International director Nik Faisal Ariff Kamil.

SRC International was a former subsidiary of 1MDB, which had allegedly transferred RM42mil into the personal account of former prime minister Datuk Seri Najib Tun Razak.

It issued two tranches of RM2bil debt papers in 2011 and 2012. The money was to be used to purchase resource based assets in the region. However, there are no assets to back the purchases.

MACC deputy chief commissioner (operation) Datuk Seri Azam Baki told Bernama there is no excuse for Low and Nik Faisal not turn up to facilitate investigations into the SRC International case.

“I refuse to comment on what action can be taken against both of them (Low and Nik Faisal Ariff Kamil). As far as I know, they cannot give any excuses and must present themselves,” he said.

Nik Faisal, 47, last stayed in Alam Impian, Shah Alam.

Low, 37, previously resided in Tanjung Bungah, Penang.

The Prime Minister’s Office in a statement earlier announced the setting up of a special task force to conduct detailed investigations, detection and seizure of assets and prosecution of individuals who committed any criminal offence in the management of 1MDB.

Meanwhile, sources said Low’s lawyers have yet to get in touch with the MACC.

It was earlier reported that Low had instructed his lawyers to make contact with the MACC after he was made aware they were seeking him for assistance.

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Penang Forum calls to review Penang mega projects

Penang Forum members paying a courtesy call on Chow, seated at the head of the table, at his office in Komtar.

Revise transport master plan because circumstances have changed

" A new public transport design has to be integrated to encourage walking, cycling and bus uise - Penang Forum"

THE Penang Forum steering committee, a loose coalition of non-political civil society groups, has called on the Pakatan Harapan Penang government to review the Penang Transport Master Plan (PTMP) estimated to cost RM46bil.

It said the Penang government should bear in mind its election manifesto of balancing economic growth with environmental protection and a commitment to improve public transport.

"Given the scale of the funding for this mega project, the state must ensure government procurement produces the best value for taxpayers’ money.

“The awarding process used was based on a Request for Proposal, rather than a true open tender, which did not allow for any meaningful comparison of bid documents as the scope of work was not fixed.

“Hence the award process must also be reviewed and revisited,” the statement read.

The committee also pointed out that the present PTMP was based on the assumption that buses, ferries and a cross-channel bridge were under federal control and there was nothing much the state could do.

“So it did not focus on how these could be improved or expanded. But now that circumstances have changed, the plan needs to be revised,” it said.

The committee also said the planning for equitable public transport should take into consideration the following criteria:

• Fiscal prudence that should consider cost-effectiveness in construction, operation and maintenance.Detailed financial analysis of different public transport systems must be done and compared. The most cost-effective system should be selected.
• Other important considerations are efficiency of operation, predictable schedules and systems compatibility.
• The different components of the transport system must be well connected and integrated, socially inclusive, with a low impact on the built and natural environment.
• Extensive public consultation at every stage, with plans available for online viewing and download so that more people can view and comment. It must be carried out and the exercise must be open to scrutiny.
• Independent consultants who are at the forefront of designing equitable, sustainable transport must be engaged to do the review of the plans. They must not be associated with or employed by parties involved in tendering for the project.

The statement also read that the 2016 transport proposal was a mega project put forward by SRS Consortium, the project delivery partner of PTMP, to the Penang government.

“The design and planning fails to meet most of the above criteria.

“The overpriced package includes many components of mega road building that will discourage people from using public transport and undermine the stated goal of increasing public modal share of transport.

“Although public consultations have been held about impacts in specific localities, open scrutiny of the whole design was strongly discouraged,” the statement said.

The committee also said the original PTMP by Halcrow involved public consultation, but the state pressured the consultants to add the undersea tunnel and three highways costing a total of RM6.3bil just before it adopted the plan in 2013.

The SRS proposal costing RM46bil includes a proposal to reclaim 4,500 acres of land (comprising three islands). It departs drastically from the officially adopted 2013 Halcrow masterplan.

“Thus, a thorough, proper and independent review should be carried out to ascertain its suitability, viability and sustainability.

“The massive proposed reclamation will destroy fishing grounds and jeopardise fishing livelihoods and a vital local source of seafood. “It will be environmentally unsustainable due to expensive maintenance costs required for dredging in the future.

“Promise 10 of the Pakatan manifesto talks of ensuring food security and protecting the welfare of farmers and fishermen.

“Last but not the least, with rapid changes in public transport technology and new trends in info-mobility, it is imperative that any existing plan for public transport should be re-examined.

“A new public transport design has to be integrated to encourage walking, cycling and bus use,” it said.

Chief Minister Chow Kon Yeow was earlier reported saying that the state government would leave the decision to review the components of the PTMP to the Federal Government.

He said this was because the proposal was at the Federal level right now, adding that if there was any need to review the project, the Federal Government could make a decision. He also said the SRS Consortium would be happy to supply the Federal agencies with additional details. - Starmetro

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Malaysian policy changes and new initiatives soon

https://www.thestar.com.my/news/nation/2018/06/07/policy-changes-and-new-initiatives-soon-dr-m-shift-includes-ensuring-top-civil-servants-know-and-spe/ 

PUTRAJAYA: Signalling a major policy change over defence and administrative issues, the Prime Minister has outlined several initiatives that the Government will undertake from now on.

For starters, Tun Dr Mahathir Mohamad does not want warships on either the Straits of Malacca or the South China Sea.

In doing so, Dr Mahathir has sent a strong message to superpo­wers, such as the United States and China, that Malaysia wish to remain neutral over their desire to control the region.

To ensure better spending of public funds, he has enlisted the help of former auditor-general Tan Sri Ambrin Buang to head a high-level committee to look into the procurement of government supplies, starting with the Defence Ministry.

In a move to improve the running of the public sector, Dr Mahathir said top civil servants would have to sit for an English competency test, signalling a major initiative in pushing for the language to be part of the civil administration.

“We consider English a very important language and it must be mastered by all high-ranking civil servants. These top officers must have a strong command of English because they always have to deal with foreigners,” Dr Mahathir said at a press conference after chairing the weekly Cabinet meeting yesterday.

Instantly, former civil servants lauded the move, as many felt that government officers today were less proficient in English and as such, could not work as well as the seniors before them.

Tan Sri Dr Rebecca Fatima Sta Maria, for instance, said that it was important for civil servants at all levels to master the English language.

“It’s a good idea and it’s about time that this was introduced. Thailand and Vietnam are catching up very fast and we don’t want to be left behind,” said Dr Rebecca.

The former International Trade and Industry Ministry secretary-general said Miti staff in particular had to undergo English language training as the ministry was involved in a lot of international work, drafting agreements and statements that required a high level of proficiency in the language.

Former Malaysia’s Permanent Representative to United Nations Tan Sri Hasmy Agam concurred.

“It’s a fantastic idea. In this globalised age, we have to be proficient in English at all levels.

“If you are a civil servant and you are not proficient in English, you can’t participate much at the international level,” he said.

Hasmy said apart from top civil servants, proficiency in English should also be emphasised in schools and universities as well.

“If Malaysia is aspiring to join the ranks of developed countries, we have to start now.

“A Malaysian would be more patriotic if he or she can communicate in international languages, in this case English, when representing the country’s interests abroad.

“Negotiations in diplomacy, trade, labour – you have to negotiate in English,” he added.

Both Dr Rebecca and Hasmy said that the younger generation of civil servants were less proficient in English due to different mediums used in schools.

“We have to do it (English language training) for the younger ones coming into the service because they went through a Malay-medium education,” said Dr Rebecca.

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