Boost for Bayan Lepas: Global biz hub for Penang


Hi-tech facility aims at rejuvenating economy in Bayan Lepas

 

An artist’s impression of the proposed GBS By The Sea project in Bayan Lepas.

Penang Development Corporation (PDC) general manager Datuk Rosli Jaafar said the RM200mil project dubbed ‘GBS By The Sea’ would be part of a rejuvenation exercise for the Bayan Lepas industrial area.Hi-tech facility aims at rejuvenating economy in Bayan Lepas

“The project, which will be located beside the Motorola factory, will also be used as a catalyst to rejuvenate the economy.

“Under the first phase, 2.7ha of space will be developed and will feature a nine-storey seafont building which will house the Multimedia Super Corridor Malaysia Cybercentre,” he said after announcing the project in Komtar on Tuesday.

Rosli added that there would be a multi-storey 2,500-bay car park complex, retail and F&B outlets, and also an integrated centre for IT and R&D activities.

“The futuristic hub will also have a central meeting place for people to meet up.

“It will also harness natural sunlight as lighting, making it an environment-friendly development.

“When completed in 2020, the project will create some 3,000 jobs,” he said.

Chief Minister Lim Guan Eng, who was present, said the project would provide higher value jobs in the manufacturing industry through expansion and diversification of the GBS business.

“Penang aims to be part of the Industry 4.0 Transformation, which revolves around big data analytics, e-commerce, crowdsourcing, cloud computing and the Internet of Things.

“GBS By The Sea is expected to attract many key international players into the state,” he said.

Lim added that according to a study by Outsourcing Malaysia, the country’s GBS sector is expected to see a compounded annual growth rate of 10% to 15% over the next three years.

Global biz hub for Penang 

 

\Part of the buildings to be built at the GBS centre.

PENANG has identified a 72.8ha site in Bayan Lepas to be turned into a Global Business Services (GBS) centre.

Penang Development Corporation (PDC) general manager Datuk Rosli Jaafar said the RM200mil project dubbed ‘GBS By The Sea’ would be part of a rejuvenation exercise for the Bayan Lepas industrial area.

“The project, which will be located beside the Motorola factory, will also be used as a catalyst to rejuvenate the economy.

“Under the first phase, 2.7ha of space will be developed and will feature a nine-storey seafont building which will house the Multimedia Super Corridor Malaysia Cybercentre,” he said after announcing the project in Komtar on Tuesday.

Rosli added that there would be a multi-storey 2,500-bay car park complex, retail and F&B outlets, and also an integrated centre for IT and R&D activities.

“The futuristic hub will also have a central meeting place for people to meet up.

“It will also harness natural sunlight as lighting, making it an environment-friendly development.

“When completed in 2020, the project will create some 3,000 jobs,” he said.

Chief Minister Lim Guan Eng, who was present, said the project would provide higher value jobs in the manufacturing industry through expansion and diversification of the GBS business.

“Penang aims to be part of the Industry 4.0 Transformation, which revolves around big data analytics, e-commerce, crowdsourcing, cloud computing and the Internet of Things.

“GBS By The Sea is expected to attract many key international players into the state,” he said.

Lim added that according to a study by Outsourcing Malaysia, the country’s GBS sector is expected to see a compounded annual growth rate of 10% to 15% over the next three years.

Also present were Deputy Chief Minister Datuk Mohd Rashid Hasnon, investPenang general manager Loo Lee Lian and other state exco members.

Penang homes priced beyond reach of most youths 

 

More than 90% of respondents surveyed hope to own property but only half believe that it is possible.

THE majority of youths in Penang have no choice but to rent due to high property prices.

Most (73.2%) are staying in a property owned by a family member or a relative and many (93.7%) are hoping to own a house within the next five years.

These are some of the findings of an opinion poll carried out by the state government on a sample group of 606 youths, aged 18 to 29.

Penang Institute senior analyst Yeong Pey Jung (pic) said an overwhelming 90.2% of respondents found it difficult to purchase property in Penang while 43.4% revealed that it was not difficult to rent a property here.

“In looking at the responses on perception towards property prices, 91.8% found prices in Penang to be considerably expensive while 69.3% are of the opinion that affordable housing in Penang is not affordable.

“If we look into the 24 to 29 age group, who have a higher purchasing power, 81.7% conclude that affordable housing is unaffordable. This is a phenomenon observed throughout Malaysia especially in urban areas,” she told a press conference on the outcome of the Penang youth survey in Komtar on Tuesday.

Yeong added that more than 90% of respondents hoped to own property but only half of them believe that it is possible.

“The telephone survey, which was conducted in February this year, was to find out how Penang youths feel towards social, economic and political concerns.”

The survey also showed that over 70% of youths involved in community projects were not interested in taking up leadership roles.

They also expressed a general disinterest in politics.

In terms of health, more than half of youths engaged in regular exercise.

About 56.4% found difficulty in gaining employment, a sentiment shared by their peers and immediate social circle.

Penang Youth and Sports, Women, Family and Community Development Committee chairman Chong Eng said the survey was an initiative towards the Penang Youth Development Blueprint.

“The blueprint will be inclusive and function as a guide to encourage social upward mobility and enhance the youths’ development socially, economically and politically.”

The next phase is to conduct a focus group discussion and in-depth interviews with all sectors of the youth community.

Sources: The Star/ANN



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The Malaysian Anti-Corruption Commission (MACC) needs strong finishing


Biggest seizure: A case that caught the attention of the nation was the seizure of cash, jewellery and other expensive items from the homes of two former top Sabah Water Department officials in October last year.

ONE need not go far to see how effective the Government can be when dealing with highly problematic issues involving people who blatantly do not comply with the rules.

After the National Higher Education Fund Corp (PTPTN) issued a warning to loan defaulters that they would be blacklisted and may not be able to travel abroad, the repayment of their loans increased. There is almost a 300% jump in withdrawals from the Employees Provident Fund’s (EPF) account for education purposes – rising from RM578mil in 2015 to RM1.48bil last year.

According to officials from the EPF, the bulk of the money withdrawn has been channelled toward the repayment of loans owed to PTPTN.

Clearly, the prospects of being blacklisted – a record that will remain forever – and the possibility of being stopped at the airport before leaving overseas for a holiday are reasons enough for them to repay their loans.

The lackadaisical attitude of those who have taken student loans is just another sign of apathy. The former students who are now young working adults know very well that they have an obligation to repay the loans.

However, they do not bother to do so until measures are put in place to hit them hard where it matters.

On a larger scale, corruption is a big problem in Malaysia. It is a major problem that has reached a state where most companies set aside a certain amount to “grease” key people to get jobs.

Everybody knows the danger of getting caught but the practice continues. Towards this end, the Malaysian Anti-Corruption Commission (MACC) has, in recent months, been on overdrive to nab those suspected of corrupt activities.

But has the message that the MACC means business been drilled down?

In South Korea, former president Park Geun-hye was detained on April 1 ahead of her trial. Prosecutors said the allegations against her were grave and the other suspects in the case, including her confidante Choi Soon-sil and Samsung heir Lee Jae-yong, have already been arrested.

In that country, it’s clear that corruption will not be tolerated. Those being investigated will be put behind bars even before the trial starts.

In the last few months, a regular feature in newspapers is the string of high-profile personalities who have been arrested for allegations involving bribery or money laundering.

They include politicians, civil servants, heads of government-linked funds and businessmen. Those who solicit bribes and the parties that give the money or even facilitate bribery have been arrested and remanded.

Some of them have been charged before being let off on bail.

Pictures of the persons involved are all over the newspapers and social media. In some cases, names are mentioned.

The “shaming and naming” of the people hauled up and being investigated is damaging. It is the talk of the town – especially among the private-sector businessmen.

However, there are some reservations on whether the efforts by the MACC would pay off.

At the end of the day, what would matter is seeing how many get prosecuted successfully; how many are handed down custodial sentences.

And most importantly, the speed in which these cases are disposed of by the courts.

For now, most of these MACC cases are already being filed in court and some have been charged. But the trial proper is a process that is likely to take a long time.

And the danger is the momentum will slow down when there is no speedy end to the cases.

There is also the issue of managing perception when there are delays in the outcome.

For instance, two senior officials of the Federal Land development Authority (Felda) were charged with criminal breach of trust involving RM47.6mil for a sturgeon-breeding project in March this year. The offences were allegedly committed between January and July 2014. The hearing will probably start in a few months.

In the meantime, Felda continues to fight the battle to improve its perception on improving governance and returns on its investments.

The share price of Felda Global Ventures Holdings Bhd is a far cry from the valuations it fetched during its listing in 2012. The returns from the RM2bil that Felda has invested in Felda Investment Corp is nothing much to shout about.

One case that has caught the attention of the nation was the seizure of cash, jewellery and other expensive items from the homes of two former top Sabah Water Department officials in October last year.

According to reports, it took 30 MACC officers and 15 hours to count the cash of more than RM53mil that was seized.

The display of the stacks of bank notes seized from the homes is still an image that is popular on social media. The case, touted as the nation’s biggest corruption case involving RM61.4mil in cash and other assets, has been fixed for hearing in July and August this year. According to reports, some 200 witnesses will be called for the case.

When the case will be concluded is anyone’s guess. In the meantime, it leaves many wondering if the MACC would be successful in its efforts.

Corruption affects the country as a whole. It is estimated that there is a leakage of about 20% of the annual spending for projects and procurement. For instance, the Federal Government development expenditure for 2016 was about RM50bil and 20% is easily RM10bil.

Larger sums are budgeted for government agencies that are not part of the Federal Government balance sheet. This includes the likes of Mass Rapid Transit Corp Sdn Bhd that handles the rail infrastructure projects running into 10s of billions of ringgit. The government-linked companies are another set of entities with big budgets.

What the MACC needs now is a speedy end to such high-profile cases.

Whether the prosecution is successful or otherwise, a quick closure to such cases will help MACC instil public confidence in it. A strong finish to the investigations is much needed.

By M.Shanmugam The Star

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Good time to invest in property now


Better upside: (from left) Knight Frank Sdn Bhd international project marketing (residential) senior manager Dominic Heaton-Watson, Knight Frank Asia-Pacific research head Nicholas Holt, Sarkunan and capital markets executive director James Buckley at the event

KUALA LUMPUR: The slowdown in the local property market has bottomed out, with prices seen picking up later this year, according to property consultancy firm Knight Frank Sdn Bhd.

“We predict a stable rate in 2017 and we will possibly see better upside towards the end of the year or early next year,” Knight Frank managing director Sarkunan Subramaniam said.

“The market has had a few years of contraction and we feel that this year, what will clear up one of the major concerns of most investors is the political uncertainty,” he said at the launch of Knight Frank’s 2017 Wealth Report here yesterday.

According to the report, “political uncertainty” was among the top concerns of its respondents in Asia at 25%.

“We’re going to have elections possibly this year. Once they have cleared, there will be positive movement in the market and that’s why I feel now is a good time to buy property in Malaysia.

“Once the elections are out, the economy will generally start picking up and sentiments will improve. Capital will also start coming in,” he said.

According to the wealth report, potential fall in asset values was the highest concern among its Asian respondents at 30%, followed by rising taxes and tighter controls on capital movement at 28% and 27% respectively.

Going forward, Sarkunan said affordable homes would primarily drive the local property market.

“Affordable homes will still be a driver to an extent, but medium-to-high end properties will also pick up again. Also, when the mass rapid transit (MRT) lines come into the city, it will drive the commercial market there as well.

“We’ve had a lot of decentralisation push over the last 10 years and the MRT will bring office workers to the city.”

Sarkunan pointed out that locations with light rail transit (LRT) and MRT lines, such as Damansara Heights, have bucked the trend in terms of condominium values.

“Prices have actually increased compared with some of the other areas in Malaysia. Transport hubs or transport-orientated developments, such as Kota Damansara, have also seen improvements in prices.”

The Knight Frank 2017 Wealth Report tracks the value of luxury homes in 100 key locations worldwide, including 19 destinations from Asia Pacific.

According to the report, values rose globally by 1.4% on average last year, compared with 1.8% in 2015. Asia was the second best performing world region last year, with prices rising 5.1%.

Australasia was the strongest performing world region with prices rising 11.4% year-on-year.

Source: BY EUGENE MAHALINGAM The Star/ANN

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Penang to set up panel to monitor floods, mudflows, soil ersosion, siltation & pollution


Sabri (fourth left) presenting safety vests to Chow (middle) and Lim to symbolically launch the Ops Lumpur enforcement squad at Komtar.

Putting an end to mudflows

THE Penang government has set up a steering committee to launch ‘Ops Lumpur’ to monitor development activities that could contribute to floods and river pollution in the state.

State Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow is the chairman, while his deputies are state exco members Phee Boon Poh and Lim Hock Seng.

The state Drainage and Irrigation Department (DID) is the secretariat, while committee members comprise those from the local governments, state Economic Planning Unit, state Public Works Department, Department of Environment and district engineers and officers.

Speaking at the launch of the Ops Lumpur enforcement squad yesterday, state DID deputy director S. Ratna Rajah said the committee would make monthly surprise checks at construction sites starting next month.

“Our aim is to ensure that all development comply with the erosion and sediment control plan (ESCP), which is reviewed and approved by the DID.

“The setup of the Ops Lumpur Steering Committee is meant to reduce the risk of flash floods, water pollution and siltation problem,” he said during a briefing at the state DID office in Komtar yesterday.

Ratna Rajah said one of the hotspots was in Paya Terubong, where mudflows and landslips were constantly reported during heavy rain.

He said action could be taken against unregulated project development operators under Section 34 (a) of the Environmental Quality Act, which carries a maximum RM100,000 fine, a jail term not more than five years, or both.

“The authorities can act against developers who have not been given the Environmental Impact Assessment (EIA) and Detailed Environmental Impact Assessment (DEIA) approval, or are caught violating the conditions,” he said.

Ratna Rajah said action could also be taken against the perpetrators under the Street, Drainage and Building Act 1974 (Act 133) by the local councils.

“Under Section 71 of the Act, those who failed to ensure the maintenance on the land, could be slapped with a maximum RM500,000 fine, or five years jail, or both,” he said.

Chow said the steering committee would act as adviser to two Implementation Committees spearheaded by Penang Island City Council mayor Datuk Patahiyah Ismail and Seberang Prai Municipal Council president Datuk Maimunah Mohd Sharif.

“We want to tackle problems like soil erosion and siltation at construction sites, which cause floods and river pollution.

“Our focus is to monitor those project developments with approved plans.

“The landowners, developers, engineers, consultants and contractors should play a role in ensuring they comply with ESCP.

“We need their cooperation so that there won’t be mudflows or river siltation whenever there are heavy rains.

“Sometimes, everything looks good on paper. We need to be at the sites to look for ourselves whether there is any violation of rules and regulations.

“We will visit any ongoing development projects,” he said.

Also present was state DID director Sabri Abdul Mulok.

Source: By Tan Sin Chow The Star/ANN

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Protecting house buyers’ interest


I REFER to the reports “Court: No power to grant extension” and “A fair and right judgment, says housing developer” ( The Star, Feb 28 – Developer has to compensate buyers for delays of projects, Court says).

The High Court decision declaring as ultra vires (beyond one’s legal power or authority) the Housing and Local Government Minister’s granting of a one-year extension of time (EOT) to developers to complete a delayed housing project and thus denying house buyers liquidated and ascertained damages (LAD) provided for under the sale and purchase agreement is timely, sound and indeed meritorious. It is hoped that the decision would be maintained should the minister decide to appeal it.

The Housing Development (Control and Licensing) Act 1966 was enacted for the protection of home buyers.

The long title of the Act (paragraph stating Parliament’s intent for the Act) says: “An Act to provide for the control and licensing of the business of housing development in Peninsular Malaysia, the protection of the interest of purchasers…” This makes clear that the housing development business is regulated to ensure that the protection of home buyers’ interest is paramount.

Two eminent judges, the late Tun Mohamed Suffian, former Lord President of Malaysia, and the late Tan Sri Lee Hun Hoe, the longest serving Chief Justice of Borneo, stated this in two landmark cases respectively.

Suffian LP (Sea Housing Corporation v Lee Poh Chee): “To protect home buyers, most of whom are people of modest means, from rich and powerful developers, Parliament found it necessary to regulate the sale of houses and protect buyers by enacting the Act.”

Lee Hun Hoe CJ (Borneo) (Beca (Malaysia) Sdn Bhd v Tan Choong Kuang & Anor): “The duty of observing the law is firmly placed on the housing developers for the protection of house buyers. Hence, any infringement of the law would render the housing developer liable to penalty on conviction.”

Respectfully, it is submitted that the decision to grant the developer of a housing project extension of time and thus deny the home buyers’ statutory rights to LAD ought to be exercised with diffidence. The decision, if any, ought to be made with the Act’s long title in mind, namely, “for the protection of interest of purchasers”.

In doing so, some aspects to consider are:

> In granting EOT, how will home buyers’ interest be protected?

> LAD is agreed monetary payment for home buyers’ losses for delay in completion of a housing project. Is denying home buyers’ the LAD by the EOT tantamount to protecting their interest?

Although Section 11(3) of the Act states that the developer under “special circumstances” may apply to the Controller of Housing for EOT, it is submitted that Parliament and the long title of the Act surely did not intend LAD to be wiped out by “a stroke of a pen”.

To avoid doubt, “special circumstances” would mean act of God or natural disaster, for example earth quake or tsunami, and not business or economic related challenges or hardship.

The above view would make legal sense of Section 11(3).

Again, the High Court decision is lauded.

Home buyers’ interest is of paramount importance under the Housing Development (Control and Licensing) Act 1966. The Controller of Housing’s or Minister’s decision, although seemingly made “by a stroke of a pen”, must materialise or recognise this intent. Failing to do so would be ultra vires the Act.

May the redeeming light of the Housing Development Act (Control and Licensing) 1966 continue to shine effervescently and protect effectively home buyer’s interest for many years to come.

This letter is dedicated to the National Housebuyers Association, its great team of lawyers, professionals and volunteers for their sterling and pro-bono efforts to speak up for and preserve home buyers’ interest.

Source: ROBERT TAN,  Home buyer and author of Buying Property From Developer: What You Need To Know And Do, Petaling Jaya

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Developer has to compensate buyers for delays of projects, Court says


 

 
Take them to task: According to the liquidated damages clause, condo buyers can claim 10 per annum of the purchase price for the delay

KUALA LUMPUR: The Housing Controller has no power to grant an extension of time to developers who delay the completion of housing projects, the High Court has ruled in a landmark judgment.

This means a housing developer has to pay compensation to the affected buyers for delays in the delivery of vacant possession.

High Court (Appellate and Special Powers) judge Justice Hanipah Farikullah also held that the regulation which empowers the Controller to modify terms of the contract of sale was ultra vires the Housing Development, Control and Licensing Act.

The judge said this in allowing an application for judicial review by 71 buyers of the Sri Istana condominiums in Old Klang Road against the Housing Controller and Urban Well-being, Housing and Local Government Minister.

Their lead counsel Datuk Wong Kok Leong told The Star the judge held that the minister’s decision to grant the developer an extension of time to complete the project via a letter dated Nov 17, 2015 was invalid.

In the letter, the minister had granted the developer a 12-month extension to complete the project.

“This means that the Housing Controller has no power to grant an extension of time to housing developers for any delay in completing their projects,” Wong said.

“Now, the developer has to pay the liquidated damages (a pre-determined sum) for late delivery of vacant possession of those condominium units.”

Wong called the decision a landmark judgment as many project developers seek extensions to complete their projects in Malaysia.

“This is a victory for all house buyers. With this ruling, the housing developer can’t just go to the Housing Controller for an extension of time to complete the project in order to avoid paying the liquidated damages to house buyers.

“This is because if an extension of time is allowed, house buyers lose their rights to claim damages for late delivery of vacant possession,” he added.

Wong explained that according to the liquidated damages clause, the condo buyers can claim 10% per annum of the purchase price for the delay.

In their application for judicial review, the condo buyers stated that they wanted to quash the decision allowing BHL Construction Sdn Bhd an extension of time for the delivery of vacant possession from 36 months to 48 months.

They also asked the court for a declaration that Regulation 11(3) was ultra vires of the Housing Development Act (Control and Licensing) Act.

Wong said the judge has ordered the parties to address the issue of costs on the next date for case management.

When contacted, SFC Mohamad Rizal said the judge also allowed a similar application involving another group of condominium buyers involving the same developer and project.

Source: By  m. mageswari, royce tan, thean lee cheng, eugene mahalingam, The Star

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Investing in property to let may not be a good idea


Buying to rent may not be a good idea

RENTING out a house or apartment used to be a source of income that would help to pay back the loan instalment or increase one’s available income.

Today, this is no longer a good idea, particularly for those whose income is just enough to meet their needs in the near- or short-term. This is because many people have become less honest.

Those who buy a property with the idea of renting it out may find themselves dealing with a delinquent tenant. To illustrate the situation, I reproduce part of a letter from a reader who is having sleepless nights.

“I have rented an apartment to a Bangladeshi family for a monthly rent of RM900 for several years without a written tenancy agreement. The rental payment went on smoothly until roughly nine months ago, when the tenant started delaying payment of both rental and water.

The rental and water payment was owed several months. Every time he said he would pay, but ended up not paying. He now owes me more than three months rent and more than six months water and has refused to move out, saying he needs time to find a place.

What can I do to get him out, if he continues staying without payment? People have advised me to lodge a police report and get the Rela to forcibly move him out. Is it legal to cut off the water and/or force the tenant out?”

To start with, it is legally wrong to disconnect the electricity or water. Once rented out, the tenant acquires a special kind of right to be on the premises.

A breach by him allows the landlord to terminate the tenancy. Thereafter the tenant becomes liable to pay double rent. The landlord should get a court order to evict him. I don’t think making a police report or approaching Rela will help.

This does not go very far in hel­ping the reader, but what I have to say could help readers who are renting out their property of the type referred to, or who are planning to do so.

Such a person should consider carefully whether he has sufficient spare funds if he is taking a loan. If he is a cash buyer or has resources to pay the instalments then it is fine.

This is because rent will not roll in immediately once the property is ready. There will be a need to spend time and money on putting in some basic fixtures. Time may be required to find a tenant.

In the meantime, the loan instalments will become payable and if he is unable to pay, these will add up and attract penalty interest, increasing the amount of the loan. There will be an added problem if the tenant is only able to pay rent which is less than the instalment.

So what could a landlord do to safeguard himself? The landlord should have a written agreement, and should require at least three months’ deposit at the outset and one month’s rental in advance, with the rental to be paid on or before the seventh day of each month, if not earlier.

Breach of these requirements would entitle the landlord to terminate the tenancy forthwith and require vacant possession.

Once the landlord has put himself in this position, he must monitor the payment of the rent. The tenant may pay late, but the landlord must not keep quiet. When there is a delay in payment but he pays within the month, you must give him a warning that the late payment is a breach.

The need to do this every month is important, because if the landlord allows the tenant to do this repeatedly, the law may regard this as acquiescence and a waiver by the landlord of the obligation to pay on the stipulated date.

If the tenant has not paid for two months the landlord should, by the middle of the second month, terminate tenancy and ask him to vacate the premises. At this stage the landlord has one and half month’s deposit, which allows him to have time to take meaningful action against the Tenant.

Chances are that if the landlord proceeds with such promptness, the tenant will come forward and resolve the matter.

As a term for allowing the tenant to stay on, the landlord could require the tenant to pay the legal costs. In such an event, the tenant would in future pay the rent regularly or he would leave, allowing the landlord to let the premises to another tenant.

Going to court can be costly, but the landlord should not just give up. He should approach a lawyer who can help him with the problem. Not all lawyers are out to make big profits from every client. Some lawyers will even do it for a very low fee, just to help the tenant.

Going to court will look harsh and is something that the owner may not like to do. This is because, at the point of renting, tenants project themselves as very decent and nice people who have every intention of paying the rent promptly. The issue here is: does the owner want his rent to be paid?

If the owner wants to be kind, then the tenant is likely to take advantage of him and drag on the non-payment. Of course, if the landlord is so inclined, he must be prepared to pay the price for being nice.

Law For Everyone By Bhag Singh The star

Any comments or suggestions for points of discussion can be sent to mavico7@yahoo.com. The views expressed here are entirely the writer’s own.

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