Better to buy a car or a house first?


Given a choice, would you prefer to get a loan to buy an item that depreciates over a short period which is deemed as “bad debt” or commit on a “good debt”, which is to purchase a house or asset that will appreciate in the long term?

A car used to be a symbol of freedom and ease of mobility. I could understand the dilemma of having to choose between a house and a car a decade ago.

Even then, we should still have chosen a car within our means to manage our financial position.

Today, with public transportation and the availability of ride-sharing services such as Grab Car, we can now really have the option of buying a house first. This gives us both shelter and value appreciation.

This choice has just been made easier with Budget 2019 and the recent announcement by the Finance Ministry.

The government has rolled out several measures to assist homebuyers, including stamp duty exemptions.

Homebuyers will get a stamp duty waiver for memorandum of transfer (MoT) for the purchase of houses priced up to RM1mil, during the six-month Home Ownership Campaign (HOC) from January to June 2019. In addition, the stamp duty on loan documentation is fully waived up to RM2.5mil.

Besides that, the Real Estate and Housing Developers Association (Rehda) has also agreed to cut the prices of its completed and incoming units by at least 10%.

When I talk to potential homebuyers, they always ask about the right time to own property.

There is no perfect time to buy a house on foresight. If the price is within your means, and you plan to buy it for own stay or as a long-term investment, then anytime is a good time.

However, with the property market at the bottom half of the cycle now, this could be a good time to commit to a house with the attractive tax incentives rolled out by the government.

Homebuyers can grab the “duty-free” opportunity now to explore the property market. Those living in the Klang Valley will be able to find their dream home during the Homeownership Campaign Expo at the KLCC Convention Centre from March 1-3.

The campaign is jointly organised by Rehda and the Housing and Local Government Ministry. Besides having all developers under one roof, the ministry will also be featuring homes under RM300,000 by PR1MA, SPNB, PNB and others.

The Homeownership Campaign was first held in 1998 to lessen the burden of homebuyers and to encourage homeownership. It is re-introduced after two decades now with the same objective.

For homebuyers who don’t like the risk of buying a house under construction, there are plenty of completed units for sale in the campaign.

Buying a house can be emotional and uncertain for many homebuyers. However, in the long run, we can rest assured that we are buying an asset that will appreciate.

For homebuyers, always buy within your means as you can upgrade your house in the later stage of your life.

In this auspicious Chinese New Year, I hope you decide to prioritise a new house over a new car. Gong Xi Fa Cai!

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 bkp@bukitkiara.com
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Are you overpaying your property maintenance fee?


A property, no matter how great-looking it is, is only as good as its management and maintenance. It will look clean and polished when it is new but the good news is, it can still look as good even as it ages.

According to the Strata Management Act 2013 (SMA 2013) which came into effect in June 2015, a strata owner or occupier needs to pay a monthly maintenance fee or service charge to the Joint Management Body (JMB) or Management Corporation (MC) which will be used to manage and maintain the common property of the development.

Other than the maintenance fee, strata owners are also required to contribute to the sinking fund which is normally at the rate of 10% of the total amount of charges.

“A sinking fund is a reserve fund collected from the strata owner for future expenditure which is typically less predictable and cost a lot more than the usual maintenance fee. The sinking fund is usually used for large scale repairs such as a painting job or refurbishment of the interiors of common facilities,” says Chur Associates managing director Chris Tan.

However, some owners may feel that the maintenance fee is too much. But how much is too much? How is the fee amount calculated or set? Is there a formula or a guideline?

Formula to derive the share units

Under the SMA 2013 and Strata Titles Act 1985 (STA), a residential or commercial unit is technically known as a parcel and each parcel has a share value that is expressed in whole numbers under the STA.

“Upon the approval of computation and allocation of share units prepared by the licensed land surveyor, the director of Land and Mines will issue the Certificate of Share Unit. To derive the share units in a strata scheme, there is a standard formula under the Fourth Schedule of the Strata Titles Rules 2015,” explains Burgess Rawson Malaysia managing director Wong Kok Soo.

The standard formula for maintenance fee:

Refer to Table A for an example of how the share unit is derived for an apartment parcel.

What does the maintenance fee cover?

The MC chairman of Sri Penaga, one of Bangsar’s oldest condominiums, Khaw Chay Tee shares with EdgeProp.my that one of the biggest components in the operations expenditure of a residential condominium is security, followed by the property management staffing and cleaning.

“Normally these components make up 50% of your service charge. So at the end of the day, it really boils down to how well-managed that property is. If you are able to manage the property well, then you can keep the cost reasonable. There are some condominiums where the MC likes to carry out projects which incur costs, but that is a separate matter. As each condominium differs in its number of facilities and the density of the development, it is not so easy to compare and ask why this condominium in Bangsar is different from that condominium in Bangsar,” says Khaw.

Knight Frank senior executive director Kuruvilla Abraham concurs that the service charge will vary depending on the service level the JMB or MC requires.

“One can find cheaper options for the various services required which no doubt will result in lower service charges. However, don’t expect good service levels. The right thing to do is to get value-for-money services that commensurate with the expected service levels,” he says.

It also depends on the design of the development, he adds.

“The development with a reasonable number of facilities and a greater number of units will generally pay a lower proportion of service charge compared to one with similar facilities but with lower density.”

Furthermore, developments with more facilities such as fountains, gardens or swimming pools would naturally command a higher fee as more maintenance is needed.

When it comes to maintenance, the level of quality is subjective, reminds Chur Associates’ Tan. Hence, questions often arise on whether what they are paying is actually put to good use.

Kuruvilla points out that he has yet to come across a developer that has charged parcel owners more than what they are supposed to pay. (Photo by Knight Frank)

“What is the definition of “clean” to you? For some, clean means I don’t see any rubbish. For others, it means it has to be squeaky clean and sparkling. We cannot even come up with an industrial standard for door size and window size, how do we even budget the cleaning cost then? If I were the cleaning company, how would I charge you if your windows are bigger than others? Do I charge more? Or can I say the unit price is RM2 per window per cleaning [regardless of size]?” Tan questions.

He adds that the priorities of residents in different projects mean the maintenance fee charged for each development would be different.

“Some residents place a lot of emphasis on security, so they would rather [the JMB or MC] spend more money hiring guards from a prestigious company while there may be some who think that [the JMB or MC] should spend the money to clean the swimming pool daily because they use it often,” he explains.

Wong: To derive the share units in a strata scheme, there is a standard formula under the Fourth Schedule of the Strata Titles Rules 2015. (Photos by Low Yen Yeing/EdgeProp.my)

The problem with a low maintenance fee

The Malaysian Institute of Property and Facility Managers (MIPFM) president Sarkunan Subramaniam tells EdgeProp.my that problems often arise when the property developers set a lower-than-normal maintenance fee in the initial period to induce sales.

“During the first two years, the equipment is still under the defects and liability period, so if say, the swimming pool has an issue, you can just call the technician to come over for free. However, when the JMB or MC takes over when the warranty period has passed, cost will start to be incurred,” says Sarkunan.

Under the STA 2013, developers are not supposed to pass on any deficits or liabilities to the JMB and MC.

Chur Associate’s Tan says problems can also crop up later when a developer designs a very over-the-top facility or development but prices the property at a low selling price, hence attracting the wrong user/buyer profile to the project.

Sarkunan: Problems often arise when the property developers set a lower than normal maintenance fee in the initial period to induce sales.

“If I ask you what you want in your development, you will surely say you want everything. But nobody tells you that in order to have everything, moving forward, the monthly contribution will be higher. When the entry point is low, everybody wants to buy but nobody thinks about the maintenance fee in future.

“On many occasions, it is not about who gives the best facility but who is paying for it. Are you going to use it? How often do you go to your condo’s gym or would you rather go to a gym outside? Why? Maybe because you have your own personal trainer or you don’t want to be seen by your neighbour. So are we overdesigning and overproviding?” Tan questions.

In accordance with the Strata Management Act 2013 (Act 757) (SMA), developers shall hand over the maintenance and management of the strata development (common property) to the JMB not later than 12 months of vacant possession or the MC, should the strata titles be issued and transferred to the purchasers, whichever is earlier.

The items developers are required to hand over include the list of assets, fixtures and fittings, as-built plans, operation manuals as well as the audited accounts of the service charges, deposits and sinking fund as prescribed under the SMA via Form 4 (for JMB) and Form 13 (for MC).

The JMB and MC can then decide by votes or by appointing a registered property management company to suggest an amount for the maintenance fee.

“The owner has the right to request to see the accounts during the Annual General Meeting related to expenditure and raise the matter during the meeting,” says Knight Frank’s Kuruvilla.

However, he points out that he has yet to come across a developer that has charged the parcel owners more than what they are supposed to pay. In fact, the chances are higher that due to non-payment, the management account is likely to be in deficit resulting in there being insufficient funds to carry out proper maintenance and management of the development.

The problem with strata living is, everybody wants to have a well-maintained place to live but not everyone is prepared to pay for it.

“This is why the government passed the Strata Management Act 2013 (and Acts before this) so that after one year post development, it will give the parcel purchasers/proprietors the opportunity to manage the property and thereby giving them an understanding by getting first-hand knowledge in what it takes to maintain and manage a development well. Until one is directly involved, one will not be able to appreciate why service charges have to be paid on time to ensure there is sufficient funds to pay for the maintenance and management of the development.”

This story first appeared in the EdgeProp.my pullout on Nov 30, 2018. You can access back issues here..
Related posts:

Separate role for property managers

High-rise living in below par, need professionalism in managing the property

STRATA Property insights – Serious on strata

Invest in the future

Young adults in developed countries rent, we buy houses for good

While young adults all over the world are renting homes, successful
Malaysians and Singaporeans prefer to own homes instead of cars, as soon
as they get their first pay cheque.

Instead of blowing their cash on pricey gadgets, young Malaysians are saving up for their first home.

Penang properties: security for homeseekers, location for foreigners, increased value for investors

Malaysian property market correction to continue in 2016, its economic cycles the past 25 years

Money for favours: millions demanded and paid, bribes from property developers


The court cases involving Datin Seri Rosmah Mansor, her former aide Datuk Rizal Mansor and ex-Cabinet member Datuk Seri Tengku Adnan Tengku Mansor centre upon allegations that millions have been demanded and paid in connection with projects pursued by companies. 

Meanwhile, a property developer is charged with bribing Tengku Adnan and the names of other companies and businessmen have appeared in the charges  – The Star

 see more ….

Rosmah slapped with graft charges

  • RM1.25bil solar hybrid project scandal!
Datin Seri Rosmah MansorvShe’s accused of soliciting bribes linked with projects to provide electricity to Sarawak

 

Ku Nan charged with receiving RM3mil bribes from developers – Nation

 

Facing the law: Tengku Adnan being led to the Sessions Court in Kuala Lumpur.
Facing the law: Tengku Adnan being led to the Sessions Court in Kuala Lumpur.

//content.jwplatform.com/players/owD4o7xA-dBiC3tzP.html

Property developer Tan is a self-made businessman – Nation

Malaysia’s Budget 2019: Making the tiger roar again in 3 years?


The Pakatan Harapan government yesterday tabled its maiden budget that sought to restore Malaysia’s status as an “Asian Tiger” with a clean and transparent government that cares for the rakyat. (EPA/FANDY AZLAN)

KUALA LUMPUR: THE Pakatan Harapan government yesterday tabled its maiden budget that sought to restore Malaysia’s status as an “Asian Tiger” with a clean and transparent government that cares for the rakyat.

Finance Minister Lim Guan Eng, in tabling the 2019 Budget in Parliament, said: “As long as we are clean, people-centric and focused on carrying out institutional reforms, we can restore Malaysia back to fiscal health in three years.

“Let our love for our country unite us, our challenges make us stronger and our confidence awaken Malaysia as an Asian Tiger all over again.”

Themed “A Resurgent Malaysia, A Dynamic Economy, A Prosperous Society”, the RM314.5 billion budget for next year has three areas of focus with 12 key strategies.

One focus area — to ensure the socio-economic well-being of Malaysians — will be the key performance indicator of the government’s success.

“We will seek to meet this objective by ensuring welfare and quality of life, improving employment and employability, enhancing wealth and social welfare protection, raising real disposal income and education for a better future,” he said.

In a speech that lasted more than two hours, interrupted by intermittent heckling from opposition lawmakers, Lim announced a slew of measures to address the people’s key concerns, from cost of living to housing, healthcare, education and transport.

Cash grants for the low-income Bottom 40 (B40) group will continue, single vehicle/motorbike owners with engine capacity of 1500cc and below will get targeted fuel subsidy, and the minimum wage will be raised to RM1,100 from Jan 1.

A National Health Protection Fund, with free coverage on four critical illnesses of up to RM8,000 and a hospitalisation benefit of RM50 a day, was also introduced for the B40 group.

For the affordable home programmes, Lim announced an allocation of RM1.5 billion while Bank Negara Malaysia will set up a RM1 billion fund to help those earning below RM2,300 a month to own houses costing below RM150,000.

The government will also allow the private sector to engage in new crowdfunding schemes for first-time housebuyers.

The Education Ministry received the lion’s share of the budget, with an allocation of RM60.2 billion, including RM2.9 billion assistance for the poor and RM652 million to upgrade and repair schools.

An amount of RM3.8 billion has been set aside for government scholarships.

All intra-city toll rate hikes will be frozen next year, said Lim, and public transport users, meanwhile, can buy RM100 monthly passes for unlimited trips on RapidKL rail or bus services beginning January.

A RM50 monthly pass is also available for those who use RapidKL buses only.

Civil servants and pensioners were not left out — staff up to Grade 54 will receive a one-off special payment of RM500; while government pensioners will get RM250.

The budget deficit for this year is likely to be 3.7 per cent, while gross domestic product (GDP) growth is forecast at 4.8 per cent and 4.9 per cent next year.

To ensure strong and dynamic economic growth, another focus area is to promote an entrepreneurial state that leverages innovation and creativity, while embracing the new digital economy.

The government aims to provide at least 30Mbps broadband connectivity outside urban centres within five years, while funds have been allocated to encourage investments in green technology and transition into Industry 4.0.

Corporate tax rate will be reduced to 17 per cent from 18 per cent for SMEs with paid capital below RM2.5 million, and businesses with annual taxable income below RM500,000.

Meanwhile, after inheriting “a worrying state of financial affairs which was in dire straits” with debts amounting to RM1.065 trillion from the previous administration, the third area of focus is to implement institutional reforms that promote transparent fiscal discipline.

“We intend to table a new Government Procurement Act next year to govern procurement processes to ensure transparency and competition, while punishing abuse of power, negligence and corruption,” Lim said.

He said open tenders will not only achieve more value-for-money for taxpayers, it will also nurture an efficient and competitive private sector.

To ensure that Malaysia has a clean government, the budget also saw the Malaysian Anti-Corruption Commission receiving an increased allocation of RM286.8 million.

Lim said the allocation, which is an 18.5 per cent increase from this year’s, will see MACC employing up to 100 more staff next year as the government revs up its anti-graft campaign.

Putrajaya expects to collect a revenue of RM261.8 billion next year, including a RM30 billion dividend from Petronas.

To raise its revenue, the government will leverage its assets and review taxation policies.

This includes reducing its stake in non-strategic companies, expanding the Service Tax to cover online services, and raising licence fees and taxes in the gaming sector.- By Nst Team

The following are the highlights of the 2019 Budget, which was tabled by Finance Minister Lim Guan Eng in Parliament on Friday. (Bernama photo)

The budget carries the theme of “Credible Malaysia, Dynamic Economy, Prosperous Rakyat” and will focus on three main thrusts with 12 key strategies to recapture Malaysia’s ‘Economic Tiger’ status.

The three main thrusts are:

*Institutional reforms

*People’s wellbeing

*Promotion of entrepreneurial culture

.The 12 strategies are:

*Strengthening fiscal management

*Restructuring and rationalising government debt

*Increase government revenue

*Ensuring welfare and quality life

*Increasing job opportunities and marketability

*Improving quality of healthcare services and social welfare protection

*Increasing disposable income

*Education for a better future

*Initiating new economic power

*Grabbing opportunity to face global challenge

*Redefining government’s role in business

*Ensuring economic fairness and sustainable economic growth

Related:

Govt vows to restore our finances – Nation

 

image: https://www.thestar.com.my/~/media/online/2018/11/03/03/17/budget-spread.ashx?la=en

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Separate role for property managers


KUALA LUMPUR: Malaysian Institute of Professional Property Managers and Facility Managers (MIPFM) is suggesting property and facility management to be treated independently from valuation.

President Sarkunan Subramaniam said the bias towards valuers had to stop if property management is to progress in today’s fast-changing digital and technology capabilities.

“I urge the Board of Valuers, Appraisers, Estate Agents and Property Managers to reconsider its decision and listen to the professional bodies.

“Giving a property management licence to one who has no or little experience in property management is dangerous,” he said.

Sarkunan was speaking at the MIPFM Conference 2018 on Bridging Property Management and Facility Management.

He said the current real estate degrees are skewed towards valuation subjects. Those who trained in predominantly valuation-based companies have little to no experience in managing properties.

Government valuers, having passed valuers test, are automatically handed the property management licence.

Sarkuanna, himself a valuer, is calling for objectivity. He said the diverse range of office buildings, mixed integrated projects and stratified residential projects must be matched with parallel top grade maintenance. Or their value may suffer.

“I will get a lot of opposition for my views but this is for the good of the real estate sector,” he said.

Sarkunan also highlighted the rife corruption in this field. “Corruption in procurement, kickbacks and side money is so prevalent that it has rusted performance, bringing many buildings to a grinding halt,” he said.

Sarkunan related the tale of two office blocks in Bangsar where seven out of its nine management committee (MC) members have resigned, the chairman among them.

Those who resigned were from Tower A, which the developer had earlier sold to private individual owners. Tower B belonged to the developer who had put the building under a real estate investment trust.

There was a cash surplus in the accounts. It seems that during the period when the developer was managing the property, the developer apportioned all surplus monies collected to the tower they retained. When the MC took over, it faced a defiant developer.

The Commissioner of Buildings has directed an extraordinary general meeting to be held.

In another case, a developer refused to pave the way for a joint management body (JMB) to be formed because it wanted to control the money collected, Sarkunan said. COB stepped in to resolve the issue.

Transparency International Malaysia president Datuk Seri Akhbar Satar said fraud and corruption is common due to the variety of goods and services involved.

Satar said that in 2010, Palm Court Condominium residents alleged that about RM144,000 was misappropriated. The committee agreed to take “appropriate measures” but refused an independent audit.

On Jan 31, 2017, members of a JMB were arrested by the Malaysian Anti-Corruption Commission for allegedly misappropriating RM1.5mil.

Satar said cases like these highlighted the need for a culture of integrity and transparency.

– The Star by Thean Lee Cheng

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High-rise living in below par, need professionalism in managing the property

A strata property living nightmare: leakage

The party responsible is not your upstairs neighbour but the management


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By-laws governing strata property management in Malaysia, part 1

Third Schedule of Strata Management Regulation 2015


 

By-laws governing strata property management in Malaysia, part 2

General duties of a proprietors according to the Third Schedule of Strata Management Regulation 2015



 

By-laws governing strata property in Malaysia, part 3

General prohibitions of a proprietor according to the Third Schedule of Strata Management Regulation 2015


 

Service charges under strata title property in Malaysia

Criminalising non-payment of service charge under the Strata Management Tribunal

Malaysia’s widening income gap between rich and the poor has only RM76 a month after expenses


 

The State of Households – Khazanah Research Institute

 

Launch of State of Households 2018: Different Realities. From left to right: Datuk Hisham Hamdan, Dr Nungsari Ahmad Radhi, Allen Ng, Dr Suraya Ismail, Junaidi Mansor.

Malaysia’s widening income gap

KUALA LUMPUR: The gap in income between the rich, middle class and poor in Malaysia has widened since 2008, according to a study by Khazanah Research Institute (KRI).

In its “The State of Households 2018” report, the research outfit of sovereign wealth fund Khazanah Nasional Bhd noted that the gap in the real average income between the top-20% households (T20) and the middle-40% (M40) and bottom-40% (B40) households in Malaysia has almost doubled compared to two decades ago.

The report, entitled “Different Realities”, pointed out that while previous economic crises in 1987 and the 1997/98 Asian Financial Crisis saw a reduction in the income gap between the T20 and B40/M40, post 2008/09 Global Financial Crisis (GFC), those disparities were not reduced.

But the Gini coefficient, which measures income inequality in the country, had declined from 0.513 in 1970 to 0.399 in 2016, denoting improvement in income inequality in Malaysia over the past 46 years.

Explaining the phenomenon, Allen Ng, who is the lead author of the KRI report, said income of the T20 households had continued to grow, albeit at a slower pace than that of the M40 and B40 since 2010.

“However, because they (the T20) started at a higher base, the income gap between the T20 and M40/B40 had continued to grow despite the fact that the relative (income growth) is actually narrowing post-GFC,” Ng explained at a press conference after the launch of the report here yesterday.

On that note, Ng calls for greater emphasis and investment in human capital to address the income disparities in the country.

“Human capital is the lynchpin that will help us in the next mile of development,” Ng said.

“Based on the work that we have done, and the way we read the issue, the most important equaliser in terms of income inequality is actually human capital. If we don’t address the quality of our education system, we will not be able to solve the problem of income inequality,” he added.

Among the many key issues highlighted in the report, the state of human capital development in Malaysia was noted as a crucial element to complement the country’s transition towards a knowledge-based economy.

“To complement the knowledge-based economy, the state of human capital development in this country – of which 20% of government expenditure goes to education – has plenty of room for improvement,” the report stated.

Worryingly, the report noted that despite Malaysians receiving 12 years of schooling, they receive only nine years’ worth of schooling after adjusting for education quality.

“The central issue of generating high-quality human capital in this country is an important one as the transition to a high-income nation requires human capital levels that continuously improve productivity, sustain growth and are able to create or utilise technological advancements rather than being substituted by it,” the report said.

Meanwhile, KRI also noted that despite the improvement in income inequality and declining poverty rates in Malaysia, poverty in the country remained rampant.

“While the absolute poverty rate has been steadily declining, it is estimated that an additional one million households lived in ‘relative poverty’ in 2016 compared to two decades ago,” it said in its report.-  The Star

Malaysia’s Lower Income Group Only Has RM76 To Spend A Month After Expenses

Shocking.
Some numbers for your soul.- PIC: Department of Statistics Malaysia

According to The Star Online, these households — categorised under the bottom 40% (B40) income group in the country because they are earning less than RM2,000 a month — only have RM76 to spare, after deductions, in 2016.

As comparison, these households have a residual income of RM124 in 2014.

The reason for the sharp decline? They were forced to spend more of their income on household items.

The study revealed that these households are spending 95 per cent of their total  income on consumption items in 2016 compared to 2014, when the same households spend ‘only’ 92 per cent of their income on daily items.
So, what’s the cause behind this worrying trend?

The report indicated that the rising cost of living is mainly to be blamed for the increase in household expenditure, so #ThanksNajib.

In fact, the report revealed that the high cost of living has affected not only the B40, but all income groups as well.

The real residual household income has, according to the report, reduced
for all income classes. For example, households earning above RM15,000
has a real resi­dual income of RM13,100 in 2016, down from RM14,458 in
2014.

Sigh, we guess we just have to spend our money wisely from now on. No more RM16 Caramel Frappuccino® from Starbucks from now on.

Money, where did you go?

We know we keep saying that we’re broke, but after reading this report, we found out that there are a lot of people out there who are having it worse than us.

A recent Khazanah Research Insti­tute (KRI) study revealed that every month, the average lower-income household in Malaysia has barely enough to survive after household expenses are deducted.

It’s, like, really, really bad!
Related:

We need a complete overhaul of our education system, says NUTP – Nation

 

Malaysia’s widening income gap between rich and poor – Business …

 

 

 

Bukit Kukus paired road hits snag before mishap, stop work order to contractor on collapsed beams


Precarious situation: The collapsed beams along Jalan Tun Sardon which fell and broke after being knocked down.

Video:

https://content.jwplatform.com/players/rQ2BJiZc-d74adXtC.html

https://www.thestar.com.my/news/nation/2018/10/14/stop-work-road-contractor-told-dosh-to-look-at-work-sites-procedures-after-mishap/?jwsource=twi

Stop work, road contractor told

 

BALIK PULAU: The contractor of the 600m elevated road project linking Jalan Bukit Kukus to Jalan Tun Sardon here has been issued with a stop-work order.

The order came following a mishap on the site where 14 concrete beams measuring 25m each fell onto a slope in Jalan Tun Sardon on Thursday.

Eleven beams broke apart in the 8.30pm incident. However, no injuries were reported.

It is learnt that a crane operator accidentally knocked down one of the beams laid on the ground, causing others to fall onto the slope like dominoes.

Penang Department of Occupa­tional Safety and Health (DOSH) director Mohd Rosdee Yaacob said the contractor had been instructed to be present at the DOSH office tomorrow for a meeting.

“We are reviewing the standard operating procedures at the work site.

“For now, the contractor is not allowed to load and unload other concrete beams,” he said yesterday

Mohd Rosdee said his officers were only sent to the site on Friday as they were not immediately informed of the incident.

State Works Committee chairman Zairil Khir Johari said the contractor had been told to prepare a full report for DOSH.

He said the Penang Island City Council (MBPP) would also initiate an internal inquiry tomorrow.

The construction of the elevated road, together with the upgrading of a 1.1km stretch along Lebuhraya Thean Teik and a 1.5km stretch along Lebuh Bukit Jambul, is a MBPP project costing RM275.6mil and is scheduled for completion early next year.

The three segments are part of the project for the construction of the RM545mil alternative road – Jalan Bukit Kukus – to help ease traffic snarls along Jalan Paya Terubong, which is an arterial road linking Bayan Baru, Balik Pulau and Air Itam.

The construction works involve linking Lebuhraya Thean Teik in Bandar Baru Air Itam and Lebuh Bukit Jambul in Penang via Jalan Bukit Kukus, building an elevated U-turn along Lebuh Bukit Jambul for those who want to make a turn and go back to Relau. – The Star

Paired road already hits snag

 

Slow path ahead: The elevated road near Jalan Paya Terubong in Penang will not be ready for another two years.

GEORGE TOWN: Work on the RM545mil Jalan Bukit Kukus paired road project has hit a snag even before the construction mishap in Jalan Tun Sardon.

The completion date on the project, an alternative road linking Lebuhraya Thean Teik in Bandar Baru Air Itam to Lebuh Bukit Jambul, will be delayed by a year till mid-2020 due to unforeseen obstacles during construction.

State Works, Utilities and Flood Mitigation committee chairman Zairil Khir Johari, in describing the project as “very complicated”, said it was constructed by three parties as a cost-saving measure.

“The Penang Island City Council (MBPP) will construct 2.8km of the stretch, while PLB Land Sdn Bhd and Geo Valley Sdn Bhd will construct the remaining 1.4km and 0.7km respectively,” he said.

Zairil said while the three parties involved in the works faced various issues resulting in the delay.

“For example, the MBPP which is working on the 2.8km stretch costing RM275.6mil, faced a delay due to land acquisition issues, realignment and relocation of cables.

“The project is 69% done and to be completed by early 2020.

“PLB Land faced issues with big rocks and boulders. The RM150mil section has progressed 36% and scheduled for mid-2020,” he said.

Zairil said that Geo Valley faced legal issues as the residents affected by their section of the project took up matters with the Appeals Board and the case was pending.

The RM120mil stretch by Geo Valley is now 18% completed.

“Once PLB and Geo Valley complete their portions, we will connect them accordingly,” he said.

It was earlier reported that the contractor of the 600m elevated road project linking Jalan Bukit Kukus to Jalan Tun Sardon was issued with a stop-work order.

The order came after a mishap on the site where 14 concrete beams measuring 25m fell onto a slope in Jalan Tun Sardon on Thursday. No injuries were reported.

It is learnt that a crane operator accidentally knocked down one of the beams laid on the ground, causing others to fall onto the slope.

Paya Terubong assemblyman Yeoh Soon Hin hopes that there will be no further delays.

“About 60,000 vehicles use Jalan Paya Terubong daily to get to Bayan Lepas, and traffic congestion is bad during peak hours.

“I hope the project will be completed safely according to specifications and on schedule for the people to use,” he said.

Once the alternative route is completed, traffic is expected to see a reduction of at least 30%.

The new link will comprise a dual carriageway with a bicycle lane, walkway and LED street lights.

A small waterfall on the hill will also be retained and construction would go around the waterfall.

Last month, MBPP mayor Datuk Yew Tung Seang said the construction on the paired road would take up RM44.2mil of the council’s budget next year. – The Star by Lo Tern Chern

Related:

Dosh: Stop-work order on elevated road project stays 

 

Public talks heading nowhere – Metro News

 

Penang Forum wants eco-review of PIL 1

 

The Tips and Procedures for Issuing a Stop Work Order

2 Things You Should Never Say To A Contractor – Residential …

 

 

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PAC blamed Penang Island City Council (MBPP) for failing to enforce laws on hillside development 

 

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