Don’t let developers take control, councils told


Do not let developers take control, deputy minister tells councils

KUALA LUMPUR: Property developers are behaving more and more like local councils, Deputy Housing and Local Government Minister Datuk Raja Kamarul Bahrin Shah said, noting that this has given rise to the current form of townships that are not centralised and are dominated and led by private developers.

There are developers who are acting like local councils as the latter have not been taking the lead, and this is a cause for concern, he said.

Raja Kamarul noted that traditionally, the local governments were the decision makers but this fact has changed of late.

“Long ago, it was the local government that determines what developers should build, creating markets, shopping malls, commercial, industrial, agricultural and entertainment areas, and of course, knowing how many homes need to be built because they know the population in the area,” he said in his keynote address at the opening of the one-day Housing and Property Development Colloquium on “Reimagining the Housing and Property Industry in the New Malaysia” here yesterday.

“But now, the role has shifted to the developers, giving rise to the current form of townships that are not centralised and are dominated and led by private developers,” he said.

“Most concerning is the recent trend that developers are behaving more and more like the local council themselves, in having their own private security for substantial portions of residential and commercial areas as an example, and other provisions of services and infrastructure.

“Although the local governments retain power and control where their approval is needed to build, they have often failed to take a more proactive role,” said Raja Kamarul.

He also highlighted that some local governments have failed in providing basic services to the people, causing developers to step in to fill the void.

“Local governments must find the will and desire to see their own town, cities and districts develop into comfortable townships and not allow developers to take entire pieces of land and create their own defacto privatised local government,” he said.

He also said this is why the government is looking to bring back local government elections, in order to bring back a sense of accountability by local governments.

“Once constituted, citizens can take leaders of the local government to task when services and facilities are not up to par. This should lead to more tangible and improved living conditions for the rakyat,” added Raja Kamarul.

Credit:  Ahmad Naqib Idris The Edge Financial Daily

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Malaysia needs more childcare & daycare centres


https://www.thestar.com.my/news/nation/2018/08/13/malaysia-needs-more-childcare-centres-dpm-we-are-also-in-dire-need-of-qualified-workers-to-ensure-sa/

PUTRAJAYA: There is a dire need for more qualified childcare workers and registered childcare centres in the country, says Datuk Seri Dr Wan Azizah Wan Ismail.

The Deputy Prime Minister said that these shortages could adversely affect the safety and quality of care for Malaysian children.

“Data from the Welfare Department showed that up to June this year, the number of childcare workers looking after children four years and below is 16,873.

“Out of this, only 3,173 of them have the minimum qualification of a childcare course,” said Dr Wan Azizah, who is also Women, Family and Community Development Minister.
She was speaking at the launch of the National Childcare Centre Day 2018 themed “Equality” at the IOI City Mall here yesterday.

Dr Wan Azizah added that the rest of childcare workers in the country, all 13,700 or 80.19% of them, did not have the minimum qualification for the job.

She said the lack of qualified childcare workers contributed to the lack of registered childcare centres in the country.

“Calculations based on a census done by Malaysian Statistics Department showed that we need to have 38,333 registered childcare centres.

“However, the actual number at present is only 4,302,” she said.

Dr Wan Azizah said her ministry took a serious view on the safety of children at childcare centres and at the homes of childcare providers.

“We are looking at the need to improve on the Child Care Centre Act and regulations on childcare centres to fit the current needs and situation,” she said.

She added that her ministry was also studying how to utilise information and communication technology to be included in the childcare system in the country. The Star

 

Has Penang Island’s growth & development become a hazard to life?


  • Malaysia’s Penang Island has undergone massive development since the 1960s, a process that continues today with plans for transit and land-reclamation megaprojects.
  • The island is increasingly facing floods and landslides, problems environmentalists link to paving land and building on steep slopes.
  • This is the second in a six-part series of articles on infrastructure projects in Peninsular Malaysia.

GEORGE TOWN, Malaysia — Muddy carpets and soaked furniture lay in moldering piles on the streets of this state capital. It was Sunday morning, Oct. 29, 2017. Eight days earlier, torrents of water had poured off the steep slopes of the island’s central mountain range. Flash floods ripped through neighborhoods. A landslide killed 11 workers at a construction site for a high-rise apartment tower, burying them in mud. It was Penang Island’s second catastrophic deluge in five weeks.

Kam Suan Pheng, an island resident and one of Malaysia’s most prominent soil scientists, stepped to the microphone in front of 200 people hastily gathered for an urgent forum on public safety. Calmly, as she’s done several times before, Kam explained that the contest between Mother Earth’s increasingly fierce meteorological outbursts and the islanders’ affection for building on steep slopes and replacing water-absorbing forest and farmland with roads and buildings would inevitably lead to more tragedies.

“When places get urbanized, the sponge gets smaller. So when there is development, the excess rainwater gets less absorbed into the ground and comes off as flash floods,” she said. “The flood situation is bound to worsen if climate change brings more rain and more intense rainfall.”

Five days later it got worse. Much worse. On Nov. 4, and for the next two days, Penang was inundated by the heaviest rainfall ever recorded on the island. Water flooded streets 3.6 meters (12 feet) deep. Seven people died. The long-running civic discussion that weighed new construction against the risks of increasingly fierce ecological impediments grew more urgent. George Town last year joined an increasing number of the world’s great coastal cities — Houston, New Orleans, New York, Cape Town, Chennai, Jakarta, Melbourne, São Paulo — where the consequences are especially vivid.

The empty apartment construction  site where 11 men died in an October 2017 landslide. Image by Keith Schneider for Mongabay.

Penang’s state government and Chow Kon Yeow, its new chief minister, recognize the dilemma. Three weeks after being named in May to lead the island, Chow told two reporters from The Star newspaper that “[e]conomic growth with environmental sustainability would be an ideal situation rather than sacrificing the environment for the sake of development.”

But Chow also favors more growth. He is the lead proponent for building one of the largest and most expensive transportation projects ever undertaken by a Malaysian city: a $11.4 billion scheme that includes an underwater tunnel linking to peninsular Malaysia, three highways, a light rail line, a monorail, and a 4.8-kilometer (3-mile) gondola from the island to the rest of Penang state on the Malay peninsula.

The state plans to finance construction with proceeds from the sale of 1,800 hectares (4,500 acres) of new land reclaimed from the sea along the island’s southern shore. The Southern Reclamation Project calls for building three artificial islands for manufacturing, retail, offices, and housing for 300,000 residents.

Awarded rights to build the reclamation project in 2015, the SRS Consortium, the primary contractors, are a group of national and local construction companies awaiting the federal government’s decision to proceed. Island fishermen and their allies in Penang’s community of environmental organizations and residential associations oppose the project, and they proposed a competing transport plan that calls for constructing a streetcar and bus rapid transit network at one-third the cost. (See Mongabay –https://news.mongabay.com/2017/04/is-a-property-boom-in-malaysia-causing-a-fisheries-bust-in-penang/)

For a time the national government stood with the fishermen. Wan Junaidi Tuanku Jaafar, the former minister of natural resources and environment and a member of Barisan Nasional (BN), the ruling coalition, refused to allow the project. “The 1,800-hectare project is too massive and can change the shoreline in the area,” he told reporters. “It will not only affect the environment but also the forest such as mangroves. Wildlife and marine life, their breeding habitats will be destroyed.”

The state, and Penang Island, however, have been governed since 2008 by leaders of the Pakatan Harapan coalition, which supported the transport and reclamation mega projects. In May 2018, Pakatan Harapan routed the BN in parliamentary elections. Former prime minister Mahathir Mohamed, the leader of Pakatan Harapan, assumed power once again. Island leaders anticipate that their mega transport and reclamation projects will be approved.

It is plain, though, that last year’s floods opened a new era of civic reflection and reckoning with growth. Proof is everywhere, like the proliferation of huge blue tarps draped across flood-scarred hillsides outside of George Town’s central business district. Intended to block heavy rain from pushing more mud into apartment districts close by, the blue tarps are a distinct signal of ecological distress.

Or the flood-damaged construction sites in Tanjung Bungah, a fast-growing George Town suburb. A lone guard keeps visitors from peering through the gates of the empty apartment construction site where 11 men died in the October 2017 landslide. About a mile away, a row of empty, cracked, expensive and never-occupied hillside townhouses are pitched beside a road buckled like an accordion. The retaining wall supporting the road and development collapsed in the November 2017 flood, causing expensive property damage.

  • A row of empty, cracked, expensive and never-occupied hillside  townhouses are pitched beside a road buckled like an accordion. The retaining wall supporting the road and development collapsed in a November 2017 flood, causing extensive property damage. Image by Keith Schneider for Mongabay.

    Gurmit Singh, founder and chairman of the Centre for Environment, Technology and Development, Malaysia (CETDEM), and dean of the nation’s conservation activists, called Penang state government’s campaign for more growth and mega infrastructure development “a folly.”

    “It exceeds the carrying capacity of the island. It should never be approved,” he said in an interview in his Kuala Lumpur office.

    Singh, who is in his 70s and still active, was raised on Penang Island. He is an eyewitness to the construction that made much of his boyhood geography unrecognizable. “Everything built there now is unsustainable,” he said.

    It’s taken decades to reach that point. Before 1969, when state authorities turned to Robert Nathan and Associates, a U.S. consultancy, to draw up a master plan for economic development, Penang Island was a 293-square-kilometer (113-square-mile) haven of steep mountain forests, ample rice paddies, and fishing villages reachable only by boat.

    For most residents, though, Penang Island was no tropical paradise. Nearly one out of five working adults was jobless, and poverty was endemic in George Town, its colonial capital, according to national records.

    Nathan proposed a path to prosperity: recruiting electronics manufacturers to settle on the island and export their products globally. His plan emphasized the island’s location on the Strait of Malacca, a trading route popular since the 16th century that tied George Town to Singapore and put other big Asian ports in close proximity.

  • Sea and harbor traffic on the Strait of Malacca. Image by Keith Schneider for Mongabay.

    As a 20th century strategy focused on stimulating the economy, Nathan’s plan yielded real dividends. The island’s population nearly doubled to 755,000, according to national estimates. Joblessness hovers in the 2 percent range.

    Foreign investors poured billions of dollars into manufacturing, retail and residential development, and all the supporting port, energy, road, and water supply and wastewater treatment infrastructure. In 1960, the island’s urbanized area totaled 29.5 square kilometers (11.4 square miles), almost all of it in and immediately surrounding George Town. In 2015, the urban area had spread across 112 square kilometers (43 square miles) and replaced the mangroves, rubber plantations, rice paddies and fishing villages along the island’s northern and eastern coasts.

    There are now 220,000 homes on the island, with more than 10,000 new units added annually, according to National Property Information Center. George Town’s colonial center, which dates to its founding in 1786, was designated a UNESCO World Heritage site in 2008, like Venice and Angkor Wat. The distinction helped George Town evolve into a seaside tourist mecca. The state of Penang, which includes 751 square kilometers (290 square miles) on the Malay peninsula, attracts over 6 million visitors annually, roughly half from outside Malaysia. Most of the visitors head to the island, according to Tourism Malaysia.

    Nathan’s plan, though, did not anticipate the powerful ecological and social responses that runaway shoreline and hillside development would wreak in the 21st century. Traffic congestion in George Town is the worst of any Malaysian city. Air pollution is increasing. Flooding is endemic.

  • Blue tarps drape the steep and muddy hillsides in George Town to slow erosion during heavy rain storms. Image by Keith Schneider for Mongabay.

    Nor in the years since have Penang’s civic authorities adequately heeded mounting evidence of impending catastrophes, despite a series of government-sponsored reports calling for economic and environmental sustainability.

    Things came to a head late last year. Flooding caused thousands of people to be evacuated from their homes. Water tore at hillsides, opening the forest to big muddy wounds the color of dried blood. Never had Penang Island sustained such damage from storms that have become more frequent, according to meteorological records. Rain in November that measured over 400 millimeters (13 inches) in a day. The damage and deaths added fresh urgency and new recruits to Penang Island’s longest-running civic argument: Had the island’s growth become a hazard to life?

    George Town is far from alone in considering the answer. The 20th century-inspired patterns of rambunctious residential, industrial and infrastructure development have run headlong into the ferocious meteorological conditions of the 21st century. Coastal cities, where 60 percent of the world’s people live, are being challenged like never before by battering storms and deadly droughts. For instance, during a two-year period that ended in 2016, Chennai, India, along the Bay of Bengal, was brutalized by a typhoon and floods that killed over 400 people, and by a drought that prompted deadly protests over water scarcity. Houston drowned in a storm. Cape Town is in the midst of a two-year drought emergency.

    George Town last year joined the expanding list of cities forced by Nature to a profound reckoning. Between 2013 and mid-October 2017, according to state records, Penang recorded 119 flash floods. The annual incidence is increasing: 22 in 2013; 30 in 2016. Residents talk about a change in weather patterns for an island that once was distinguished by a mild and gentle climate but is now experiencing much more powerful storms with cyclone-force winds and deadly rain.

    Billions of dollars in new investment are at stake. Apartment towers in the path of mudslides and flash flooding rise on the north shore near George Town. Fresh timber clearing continues apace on the steep slopes of the island’s central mountain range, despite regulations that prohibit such activity. Demographers project that the island’s population could reach nearly 1 million by mid-century. That is, if the monstrous storms don’t drive people and businesses away — a trend that has put Chennai’s new high-tech corridor at risk.

    The urgency of the debate has pushed new advocates to join Kam Suan Pheng at the forefront of Penang Island’s environmental activism. One of them is Andrew Ng Yew Han, a 34-year-old teacher and documentary filmmaker whose “The Hills and the Sea” describes how big seabed reclamation projects on the island’s north end have significantly diminished fish stocks and hurt fishing villages. High-rise towers are swiftly pushing a centuries-old way of life out of existence. The same could happen to the more than 2,000 licensed fishermen and women contending with the much bigger reclamation proposals on the south coast.

    “How are they going to survive?” Han said in an interview. “This generation of fisherman will be wiped out. None of their kids want to be fisherman. Penang is holding a world fisherman conference in 2019. The city had the gall to use a picture of local fisherman as the poster. No one who’s coming here knows, ‘Hey you are reclaiming land and destroying livelihood of an entire fishing village.’”

    “We all want Penang to be progressive. To grow. To become a great city,” he adds on one of his videos. “But at whose expense? That’s the question. That’s the story I’m covering.”

  • Andrew Ng Yew Han, a 34-year-old teacher and documentary film maker whose “The Hills and the Sea” describes how big seabed reclamation projects on the island’s north end have significantly diminished fish  stocks and hurt fishing villages. Image by Keith Schneider for Mongabay.

    Another young advocate for sustainable growth is Rexy Prakash Chacko, a 26-year-old engineer documenting illegal forest clearing. Chacko is an active participant in the Penang Forum, the citizens’ group that held the big meeting on flooding last October. Nearly two years ago, he helped launch Penang Hills Watch, an online site that uses satellite imagery and photographs from residents to identify and map big cuts in the Penang hills — cuts that are illegal according to seldom-enforced state and federal laws.

    Kam Suan Pheng and other scientists link the hill clearing to the proliferation of flash flooding and extensive landslides that occur on the island now, even with moderate rainfall.

    In 1960, Malaysia anticipated a future problem with erosion when it passed the Land Conservation Act that designated much of Penang Island’s mountain forests off-limits to development. In 2007, Penang state prohibited development on slopes above an elevation of 76 meters (250 feet), and any slope with an incline greater than 25 degrees, or 47 percent.

    Images on Penang Hills Watch make it plainly apparent that both measures are routinely ignored. In 2015, the state confirmed as much when it made public a list of 55 blocks of high-rise housing, what the state called “special projects,” that had been built on hillsides above 76 meters or on slopes steeper than 25 degrees. The “special projects” encompassed 10,000 residences and buildings as tall as 45 stories.

 

Rexy Prakash Chacko, a 26-year-old engineer who helped launch Penang Hills Watch, an online site that uses satellite imagery and photographs from residents to identify and map big cuts in the Penang hills. Image by Keith Schneider for Mongabay.

“There is a lot of water coming down the hills now,” Chacko said in an interview. “It’s a lack of foresight. Planning has to take into account what happens when climate change is a factor. Clearing is happening. And in the last two years the rain is getting worse.

“You can imagine. People are concerned about this. There was so much lost from the water and the mud last year.”

Ignoring rules restricting development has consequences, as Kam Suan Pheng has pointed out since getting involved in the civic discussion about growth in 2015. After the October 2017 landslide, she noted that local officials insisted the apartment building where the 11 deaths occurred was under construction on flat ground. But, she told Mongabay, an investigation by the State Commission of Inquiry (SCI) found that the apartment construction site abutted a 60-degree slope made of granite, which is notoriously unstable when it becomes rain-saturated.

“State authorities continued to insist that development above protected hill land is prohibited,” Kam said in an email. “There is little to show that more stringent enforcement on hill slope development has been undertaken. Hopefully the findings of the SCI will serve as lessons for more stringent monitoring and enforcement of similar development projects so that the 11 lives have not been sacrificed in vain.”

 

Putting our house in order


WITH the announcement of the new Housing and Local Government Minister, Zuraida Kamaruddin, there have been a lot of news and interviews on her proposals to put our housing industry in order.

Her new plans will help create a new housing environment in our country if well executed. I particularly like the minister’s assurance that there won’t be any political intervention in decision-making, especially in housing development matters.

The key objective of the ministry is to synchronise all affordable housing schemes under one roof with the establishment of the National Affordable Housing Council, which is expected to be announced in August.

The streamlining will involve four agencies, Syarikat Perumahan Negara Bhd, 1Malaysia Civil Servants Housing Programme (PPA1M), Rumah Mampu Milik Wilayah Persekutuan (RumaWIP), and 1Malaysia People’s Housing Scheme (PR1MA).

With this prompt move, the housing ministry will have better control over the construction of affordable houses, and will attempt to resolve the mismatch between market supply and demand in certain housing segments.

Apart from the new supply, we should also look at our current housing supply. As at end-2017, we have 5.4 million houses, of which 21% or 1.15 million were low-cost houses and flats. This should be sufficient to accommodate the critical housing needs of our Rakyat if they were allocated to the right group of people.

In my last article, I mentioned that there were potential leakages in our previous distribution system that had caused the failure of qualified applicants to buy or rent a low-cost home.

In early June 2018, the new Housing Minister requested owners of People’s Housing Projects (PPR units) who were renting out their units to foreigners to evict their tenants within 90 days.

It is important for the authorities to carry out surveys on residents of low-cost housing after certain grace period to ensure the ownership and tenancy of government housing fall into the right hands.

By addressing the current leakages and with the identification of the right target audience, the issue can be quickly resolved.

Our new government plans to set up an online platform for application of affordable housing in the future. This would be an effective way to gather market demand based on the actual requirement and ensure greater transparency in the allocation process.

In addition, the government promises to build one million affordable homes within 10 years. It also suggests the housing price for the B40 group (with a median monthly household income of RM3,000) to be around RM60,000, and equipped with basic facilities such as a park and a community hall.

Based on the contributing factors of housing development which include land, the approval process and resources, only the government can build houses at the price of around RM60,000.

Only the government can gather land bank through compulsory land acquisition of agriculture land, then to convert the land for housing development, and increase housing projects with public funds.

As taxpayers, I believe we are more than happy to help elevate the living standards of the B40 group knowing very well that our money is well-spent in making a difference for the future of our nation.

I applaud the new government for taking the bold measures in putting things in order, and walking the talk by planning for more affordable housing.

Offering affordable housing and a comfortable living environment are essential criteria in building a sustainable future for our country. Whenever the government announces more constructive measures and makes things more transparent, the market environment becomes more optimistic. With this confidence, the Rakyat will be more than willing to do our part as taxpayers to achieve the common goals for the benefit of all.

Food for thought Alan Tong

Datuk Alan Tong has over 50 years of experience in  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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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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Penang govt rapped over hill slope development


FMT – GEORGE TOWN: The Penang Forum has repeated its call for all hillslope development to be stopped immediately, following deadly hillslope collapse ...
Geotechnical engineer Aziz Noor says the new project puts the people and the place in danger

 

Engineer: Lives at risk in Penang hill project

 

GEORGE TOWN: The DAP-led state government has turned a blind eye on the imminent danger of hill slope development, said a Tanjung Bungah resident.

At a forum-cum-press conference yesterday, geotechnical consultant Aziz Noor (pic) said building the proposed multi-storey mixed development behind the Miami Green Resort Condominium would pose a danger to the condo and its residents.

The development which has been approved on the class four hill, comprises five 29-storey building blocks, two 34-storey serviced apartments with 336 units each and one block of affordable apartments with 197 units.

Meanwhile, former Bukit Bendera MP Zairil Khir Johari, who is the Tanjong Bungah candidate for Pakatan Harapan, said the state government would review the guidelines on hill slope development. – Bernama

 


GEORGE TOWN: An engineer has sounded a warning about “imminent danger” from a new hillside development of eight tower blocks of apartments planned in an environmentally-sensitive area of Tanjung Bungah.

Geotechnical consultant Aziz Noor, speaking at a forum-cum-press conference today, accused the DAP-led state government of turning a blind eye on the imminent danger of hill slope development.

The proposed mixed development behind Miami Green Resort condominium puts the existing residence and its people in danger, he said.

The development has been approved on a 12-acre plot with a 35-degree slope on a Class Four hill, which exceeds 250 feet above sea level.

It comprises five 29-storey tower blocks, two 34-storey blocks of 336 serviced apartments each, and one block of 197 units of affordable apartments.

Aziz said that the project was not only in an environmentally sensitive area, it also contradicts the 2007 Penang Structure Plan that forbid any development above a gradient of 25-degree gradient and 250 feet above sea-level.

The design of one development does not guarantee safety. A Detailed Environmental Impact Assessment must be conducted and reviewed. This development puts the place and people in imminent danger,” he said.

Residents of the area said they had vented their frustration multiple times since November but had not received any response from the state government and Penang Island City Council.

The residents, together with the Tanjung Bunga residents association, had spoken on the matter many times, but no one seemed bothered, said one of the residents, Lim Liew Ming.

“Our lives are at risk. The upcoming development is a ticking time-bomb. Are the authorities waiting for a tragedy to happen, and only then act on it?,” she asked.

State Barisan Nasional chairman Teng Chang Yeow, who is also BN candidate for the Tanjong Bunga state seat in the general election, said the project should have been shelved from the beginning.

“We will put a stop to this. Even if we need to pay compensation,” he said.

The Barisan Nasional has pledged to declare all highland and hill slope areas of 250 feet above sea-level as permanent forest reserve.

Former Bukit Bendera MP Zairil Khir Johari, who is the Pakatan Harapan candidate for Tanjong Bunga, said the state government would review the guidelines on hill slope development.

Source:FMT.Click here to get live updates throughout the GE14 season

 

GEORGE TOWN: An MCA state leader has criticised Penang Chief Minister Lim Guan Eng over the latter’s statement that more stop-work orders have been issued against hillside development by the current state government.

State MCA Wanita chairman Tan Cheng Liang said Lim, who is also the DAP secretary-general, had “conveniently avoided” revealing the increase in number of protests in the state since 2008.

“He boasts about more stop-work orders being issued now compared to when Barisan Nasional was helming the state government.

“However, he failed to reveal that there have been more protests by Penangites against hillside development since Pakatan Rakyat took over.

“The latest is the chorus of dissatisfaction by residents of Mount Pleasure in Batu Ferringhi, objecting against approval accorded by the Penang Municipal Council (MPPP) for the construction of 21 four-storey villas and 80 two-storey bungalows there,” she said.

She said the 2008 DAP general election manifesto unveiled by Lim promised to “preserve our forest, wetlands and bio-diversity” while Pakatan Rakyat’s common policy framework stressed that the “environment must be preserved for the sustainability of future generations.”

“Just six weeks ago, Lim said in a speech that the Pakatan government was proud of its record of not approving any hillside development.

“However, the voices of disapproval by Penangites are evidence that Lim, the DAP and Pakatan are deceptive,” she claimed.

Citing examples, she said on April 8 this year, Sungai Ara residents protested against approval issued by MPPP Planning Department for two hillside development projects and in February 2009, Tanjung Bungah residents protested and submitted a memorandum calling on the state government to ban all current and future Class III and Class IV hillslope development projects.

“In view of these protests and to deliver the DAP and Pakatan’s pledge to protect the environment, I challenge Lim and the state government to issue a stop-work orders against all hillside development projects approved by MPPP,” she said in a press release yesterday.

Tan also took a swipe at Lim for focusing on luxury residences but allegedly had no regard for the poor.

“Approvals are given for exclusive housing and condominium projects on hills, but scant attention is given to low-cost housing for the poor where no low or medium cost units were constructed between 2008 to 2011,” she claimed.

On Tuesday, Lim said more stop-work orders had been issued by both local councils since 2008 compared to previously.

He said this proved that the state government was “more stringent in upholding the rule of law, demanding strict compliance with technical requirements and more unforgiving than Barisan.” – The Star

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Restructuring our household debt


NEW Year always come with new resolutions. Finance is an important aspect of most people’s checklists when it comes to planning new goals.

While it is good to set new financial targets, it is also vital to re-look at our debt portfolio to ascertain if it is at a healthy state.

At a national level, our country also has its financial targets matched against its debt portfolio.

According to the latest Risk Developments and Assessment of Financial Stability 2016 Report by Bank Negara, the country’s household debt was at RM1.086 trillion or 88.4% of gross domestic product (GDP) as at end 2016.

Residential housing loan accounted for 50.3% (RM546.3bil) of total household debts, motor vehicles at 14.6%, personal financing at 14.9%, non-residential loan was 7.4%, securities at 5.7%, followed by credit cards at 3.5% and other items at 3.6%.

Evidently, residential housing loan is the highest among all types of household debt. However, a McKinsey Global Institute Report on “Debt and (Not Much) Deleveraging” in 2015 highlighted that in advanced countries, mortgage or housing loan comprises 74% of total household debt on average.

As a country that aspires to be a developed nation, a housing loan ratio of 50.3% to total household debt would be considered low, compared to 74% for the advanced countries. In other words, we are spending too much on items that depreciate in value immediately – such as car loans, credit card loans and personal loans – compared to assets that appreciate in value in the long run, such as houses.

Advanced economies, which are usually consumer nations, have only 26% debts on non-housing loan as compared to ours at 49.7%.

In order to adopt the household debt ratio of advanced economies, our housing loan of RM546.3bil should be at 74% of total household debt. This means that if we were to keep our housing loan of RM546.3bil constant, our total household debt should be reduced from the current RM1.086 trillion to a more manageable RM738bil. This would require other non-housing loans (car loans, credit card loans and personal loans etc) to reduce from 49.7% of total household debt to only 26%. To achieve this ratio, the non-housing loan debt must collapse from the current RM539.7bil to only RM192bil.

Reducing total household debt from the current RM1.086 trillion to a more manageable RM738bil would also have the added benefit of reducing our total household debt-to-GDP ratio from the high 88.4% to only 60%, making us one of the top countries globally for financial health.

Malaysia’s household debt at present ranked as one of the highest in Asia. Based on the same 2015 McKinsey Report, our household debt-to-income ratio was 146% in 2014 (the ratio of other developing countries was about 42%) compared to the average of 110% in advanced economies.

Adjusting the debt ratio by reducing car loans, personal loans and credit card loans will make our nation stay financially healthy.

Car values depreciate at about 10% to 20% per year based on insurance calculations, accounting standards and actual market prices. Assets financed by personal and credit card loans typically depreciate immediately and aggressively.

The easy access to credit cards and personal loan facilities tend to encourage people to spend excessively, especially when there is no maximum credit limit imposed on credit cards for those earning more than RM36,000 per year.

If we maximised the credit limit given without considering our financial ability, we will need a long time to repay due to the high interest rates, which ranged from 15% to 18% per annum.

Based on a report in The Star recently, Malaysia’s youth are seeing a worrying trend with those aged between 25 and 44 forming the biggest group classified as bankrupt.

The top four reasons for bankruptcy were car loans (26.63%), personal loans (25.48%), housing loans (16.87%) and business loans (10.24%).

It is time for the Government to introduce more drastic cooling-off measures for non-housing loans in order to curb debt that is not backed by assets. This will protect the rakyat from further impoverishment that they are voicing and feeling today.

As we kick start the new year, it is good to relook into our debt portfolio. When we are able to identify where we make up most of our debts, and start to reallocate our financial resources more effectively, we will be heading towards a sound and healthier financial status as a nation.

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 e-mail feedback@fiabci-asiapacific.com.
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