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.
Related:

Planning for a home

 

Planning for a home

Related posts:

Leaving a legacy by buying a house first before a luxury car

Restructuring our household debt

If it’s too good to be true, something’s wrong 

Too good to be true? Think twice

A challenging year ahead

Advertisements

Penang Forum calls to review Penang mega projects


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

Revise transport master plan because circumstances have changed

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“The massive proposed reclamation will destroy fishing grounds and jeopardise fishing livelihoods and a vital local source of seafood.

“It will be environmentally unsustainable due to expensive maintenance costs required for dredging in the future.

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

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

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

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

He said this was because the proposal was at the Federal level right now, adding that if there was any need to review the project, the Federal Government could make a decision.

He also said the SRS Consortium would be happy to supply the Federal agencies with additional details. – Starmetro

 

Related:

CM: Transport plan components will be fully funded – Metro … 

 

 

Call for review of mega project: Penang transport masterplan – Aliran

Time to review RM46 bil Penang Transport Master Plan | Free …

CAP calls for review of Penang mega projects

 

Residents: Trees to be felled are healthy

Some of the trees along Jalan Loh Poh Heng in Tanjung Bungah,

NGOs hugged wrong trees, says Penang mayor | Free Malaysia Today

The Star on Twitter: “NGOs pleased with council’s explanation over …

NGOs pleased with council’s explanation over felling of trees

 

Related posts:

 

Penang Forum Planning for Penang’s Future

 

Penang new Chief Minister taking Penang to the next level

 

Penang’s eight transport plans unfulfilled, Not even one commenced work, says Teng

 

Penang govt shocked at payment of RM22m to Datuk Seri to cover-up alleged corruption in undersea tunnel project.

 

Opening up a can of worms from Penang Undersea Tunnel project to Ayer Hitam … 

 

More worms open up from Penang Undersea Tunnel project as Datuk Seri photos hots up

Penang has confirmed the illegal hill clearing cases reported by Penang Forum

 

Hills, landslides, floods and damaged houses: What to do?

 

Penang Forum tells Chief Minister: the unmitigated disasters on hill projects

 

Hills clearing in Penang: NGOs not impressed with mitigation work at Botak Hill

 

IJM hill clearing & Trehaus construction damaged nearby houses since 2014 must be mitigated quickly!

 

Penang Island City Council, MBPP councilor Dr Lim fed up change not happening in Penang

MCA had no room to say ‘no’, down but not out: HSR cancellation should have followed due process


 

In the driver’s seat: Dr Wee is widely seen to be the next to helm the party. — ONG SOON HIN/The Star

HIS office is a small room with a great view of the capital city’s central business district. Within its four corners, MCA deputy president Datuk Seri Dr Wee Ka Siong is racing against time to plan the road ahead for the embattled party.

He is now MCA’s sole Member of Parliament after winning the Ayer Hitam seat in Johor.

The party also won the Titi Tinggi and Cheka state seats.

MCA contested 39 parliamentary seats and 90 state seats in the May 9 polls. The defeat has been bruising and Dr Wee has spent the last three weeks charting the road ahead for the 69-year-old party.

“Changing government is not a nightmare, not an impossible thing and can be done overnight,” says 50-year-old Dr Wee in his first media interview after the polls.

He adds that all is not lost following the party’s worst outing, and said MCA is ready to pick up from where it fell, and evolve as a completely reformed and independent entity.

“Our party is now our priority and not the coalition like before.

“There is no more political baggage. In the past there was no room to say ‘no’ or you would be deemed as going against the coalition’s whip.

From his office on the 9th floor of the MCA headquarters in Wisma MCA, Dr Wee says his major task is to put up a team that can move forward to rebuild the party.

“I have been encouraged by people to take up the challenge to provide the leadership, and I am duty-bound to do so,” he said during an interview.

Party president Datuk Seri Liow Tiong Lai announced that he would not seek re-election at the party polls this November, and Dr Wee as his deputy and sole survivor of GE14 is widely seen as his successor.

Dr Wee, a civil engineer who joined MCA in 1992, rose to become the party’s Youth chief in 2008 and deputy president in 2013.

MCA is the second largest component party of Barisan Nasional which lost its hold on the government for the first time since Independence in 1957 following the crushing defeat in GE14.

As one of three MCA ministers in the last four years, the former Minister in the Prime Minister’s Department explains that the party, bound by the Barisan Nasional spirit, seldom spoke openly on what transpired in the Cabinet.

This, unfortunately, was perceived by people that MCA had not been able to speak up for them or do anything for them.

Dr Wee said the perception had been compounded by negative statements on MCA and the Chinese community made by other Barisan component party leaders.

Statements which openly ridiculed the Chinese community and renowned figures like Robert Kuok and even MCA as a party in the run-up to the polls were certainly damaging.

The damage control also did not help at all.

“Saying that such issues had been voiced out or dealt with in the Cabinet were grossly insufficient.

“Some justice needs to be done and seen to be done.”

Dr Wee conceded that the Barisan spirit had also turned into a form of constraint on MCA and a baggage most of the time in a modern society where people demand openness and action against issues deemed unfair to the community.

At times, he adds, this “behind closed doors diplomacy” was done with the intention of not wanting to prolong an ugly episode and also to preserve harmony in a multiracial society.

“But obviously, this did not augur well for us.”

Going forward, Dr Wee says the role of the party is how to be an effective Opposition and provide the check and balance in the new regime.

He says he believes this is what the people want from the party and what the party can do for them now that it is in the Opposition.

Dr Wee says he will also be going to the ground to identify the party’s weaknesses and drawbacks that contributed to the defeat of the party.

He points out that these constitute important feedback in the party’s bid to reform itself and move forward.

The MCA central committee – the party’s highest decision-making body – has appointed him to helm the party’s reform committee following the GE14 defeat.

Dr Wee envisages a team of young and talented MCA leaders that can take on the new role of an effective Opposition in a new set-up.

The party, he adds, can provide a platform for them.

He says universal values, public policies and the party’s core struggle will remain the foundation.

Dr Wee also says the party will be rebuilt on all levels.

For instance, he says the party will be preparing for local elections (councillors) as the Pakatan Harapan Government has been pushing for it prior to GE14.

On Chinese education and Chinese new villages, of which MCA has been the guardian since its inception in 1949, Dr Wee says he hopes the new Government can do a better job in taking care of the two institutions close to the hearts of the Chinese.

He is willing and ready to provide help and cooperate with the new Government in the two areas upon their request.

“We (MCA) do what is best for the people. We exist because of the people.”

On the scrapping of two mega projects like the High Speed Rail between Kuala Lumpur and Singapore (HSR) and MRT 3 announced by Prime Minister Tun Dr Mahathir Mohamad just 22 days after Pakatan Harapan took over Putrajaya, Dr Wee feels the decisions needed in-depth study.

On the merits of HSR, he notes that Kuala Lumpur and Singapore are the two busiest Asean cities, and boosting their connectivity would be a step in the right direction and for mutual economic growth and benefits.

He points out that there are more than 30,000 flights between the two cities a year.

The HSR was scheduled to be completed in 2026, and it would have been just a 90-minute ride between the two cities.

The 350km track, which was to start in Bandar Malaysia in Kuala Lumpur and end in Jurong East, Singapore, would have passed through stations in Putrajaya, Seremban, Melaka, Muar, Batu Pahat and Iskandar Puteri.

On the MRT 3, Dr Wee said the people are enjoying the convenience of MRT 1 and looking forward to MRT 2 which is under construction.

Like any other big city in the world, Dr Wee said, MRTs are the desired mode of transportation.

He hopes the Pakatan Harapan Government can reconsider the scrapping of MRT 3 for the sake of the eight million Kuala Lumpur folk and the development of the capital city.

By Foong Pek Yee The Star

MCA think-tank: HSR cancellation should have followed due process – Centre For A Better Tomorrow (Cenbet)


 

CENBET – Centre For A Better Tomorrow  says the cancellation of the Kuala
Lumpur-Singapore High-Speed Rail should have been announced after the
cabinet’s approval in accordance to due process. – The Malaysian Insight
pic by Najjua Zulkefli, June 1, 2018.

THE cancellation of the Kuala Lumpur-Singapore High-Speed Rail project should have been made by the cabinet prior to its announcement as a matter of good governance, said the Centre For A Better Tomorrow (Cenbet).


The think tank said while it supported the new government’s efforts to review potentially wasteful projects and lopsided deals, such decisions should have followed due process.

“If decision on a RM110 billion mega-project can be made without stringent due process, we are worried that this may set a bad precedent in deciding other government projects.

“Such decision undermines institutional integrity which should have never been compromised for political expediency,” said Cennbet co-president Gan Ping Sieu in a statement today.

Based on news reports, Dr Mahathir Mohamad’s May 28 announcement to call off the project was made after chairing his party’s supreme council meeting and not in his capacity as prime minister announcing a Cabinet decision.

Transport Minister Anthony Loke was also reportedly said that the matter was not discussed in a cabinet meeting prior to the Prime Minister’s May 28 announcement that the project would be shelved.

“Rightfully, cancelling a project of such magnitude, involving transnational interests, ought to have gone through a more structured decision-making process. This includes preparing a cabinet paper and getting feedback from all relevant agencies and state governments,” explained Gan.

He pointed out that the federal constitution was clear that the cabinet is the highest executive body and the manner in which the announcement was made contradicted the spirit of accountability and transparency pledged by the new federal government.

“The eventual May 30 cabinet decision can be perceived as an afterthought and clearly without going through sufficient consultation,” said Gan.

He added that institutional decision-making process was an integral part of good governance, which Cenbet promotes.

“All major national decisions must be made by the cabinet after due process and consultation to prevent abuse of power and leakages,” he added. – Bernama, June 1, 2018.

Source: The Malaysian Insight

Related post:

Chinese projects in Malaysia may stay intact

Newly-elected Malaysian Prime Minister Mahathir Mohamad has decided to scrap the Kuala Lumpur-Singapore Rail

Related:

‘Cancellation of HSR should have followed due process’ – Nation 

Co-president Gan Ping Sieu –CENBET – Centre For A Better Tomorrow   MCA Think Tank

MEDIA STATEMENTS
Co-President Gan Ping Sieu on the Cancellation of the HSR Project

Friday, June 01, 2018

The cancellation of the High Speed Rail project should have been made by the Cabinet prior to its announcement, as a matter of good governance. While we support the new government’s efforts to review potentially wasteful projects and lop-sided deals, such decisions should have followed due process.  >> read more


Related posts:

 Malaysia scraps MRT3 project, reviews HSR, ECRL mega projects to reduce borrowings

 

Chinese are the unsung heroes of South East Asia, Robert Kuok Memoirs

Huge landslide in Tg Bungah hill


Disaster zone: An aerial view of the recent landslide in Tanjung Bungah, Penang.
An aerial view of the brown water flowing into the sea from Sungai Kelian.

GEORGE TOWN: Nobody knew a natural disaster was waiting to happen until Sungai Kelian in Tanjung Bungah turned brown and silty.

The sudden profusion of laterite mud flowing out to sea was caused by a landslide even bigger than the one that killed 11 people at a Tanjung Bungah construction site last year.

But it was so far uphill – 231m above sea level – that Penang Island City Council (MBPP) had to use a drone to find it.

As it was a natural landslide, residents are now worried about the fragility of slopes in the Tanjung Bungah hill range and want tighter scrutiny on the many development projects slated for their neighbourhood all the way to Batu Ferringhi.
MBPP issued a statement on Sunday after discovering the landslide on Bukit Batu Ferringhi, in the forest reserve about 1.5km uphill of a disused Penang Water Supply Corporation (PBAPP) intake station.

PBAPP chief executive officer Datuk Jaseni Maidinsa clarified that the station had not been in use since 1999, after the Teluk Bahang Dam was completed.

An MBPP engineer said the landslide was about 40m long and 20m wide, but geo-technical experts were unable to reach the site to determine what happened because there are no jungle trails to reach it.

A group called Nelayan Tanjung Tokong shared a video on Facebook last Thursday, showing the russet brown water flowing into the sea from Sungai Kelian and expressed concern.

Tanjung Bungah Residents Asso­ciation chairman Meenakshi Ra­­man said it was worrying because the landslide happened without any human disturbance.

“It shows the hills in the vicinity are ecologically fragile, and we don’t want any untoward incidents to happen again.

“We hope the authorities will tell us what is being done to prevent further landslides,” she said yesterday.

Former Tanjung Bungah assemblyman Teh Yee Cheu said he knew the area well and believed that the landslide took place near the source of Sungai Kelian.

“I have always stressed on how sensitive the hill slopes here are. There are many underground springs in the hills,” he said.

State Works, Utilities and Flood Mitigation Committee chairman Zairil Khir Johari said the landslide happened in the middle of a forest reserve and experts need time to study the slope to understand how it gave way.

He gave an assurance that the mud washing down the river would clear up in due course without long-term damage.

Zairil also stressed that no deve­lopment had been approved near the landslide area.

“The state government’s guidelines on hill slope development are tighter than those used by the Federal Government. We will not approve developments without pro­per compliance,” he added.

Penang Drainage and Irrigation Department director Mohd Azmin Hussin said that it would be difficult to transport machinery to the source of the landslide for mitigation works.

“There are no access roads and the team will have to hike to the site,” he said. – The Star

Related posts:

 

Don’t allow another landslide tragedy to happen !

 

NGO draws up own manifesto to assist the next state government  (From left) Anil, Ben, Dr Chee, Khoo Salma, Dr Anwar and Dr Ka…
Halt all hillslope development, Penang Forum tells state | Free … FMT – GEORGE TOWN: The Penang Forum has repeated its call for al..

Jobs ahead for Pakatan’s first 100 days fiscal reform


Dr Mahathir moves swiftly to inject confidence and stability into the market

WHEN the results of the 14th general election were finally formalised early Thursday morning, showing that Pakatan Harapan had won and would form the new government, there was a sense of excitement among its voters over the reforms promised by the incoming administration.

At the same time, that wave of buoyancy was tinged with worries of uncertainty. Malaysia was taking a path not traversed and for financial markets, anxiety is something they have never digested well.

Prime Minister Tun Dr Mahathir Mohamad since then has moved swiftly to inject confidence and stability among investors and the population.

His swearing in as PM and the announcement of key ministries in the Cabinet will help in soothing nervy investors ahead of Monday when the stock market opens.

Strong track record: Dr Mahathir at the swearing in ceremony as the 7th Prime Minister. He expects the stock market to see its capitalisation increase over time. — Bernama
Strong track record: Dr Mahathir at the
swearing in ceremony as the 7th Prime Minister. He expects the stock
market to see its capitalisation increase over time. — Bernama

The early movements of the stock market will be closely watched and that is something Dr Mahathir too has quickly sought to assuage. He tried calming anxious investors by saying he expects the stock market to see its capitalisation increase over time. He also assured businesses and investors that Malaysia remains business-friendly and the economy is among his top priorities.

Hints of what businesses and investors can expect are laid out in Pakatan’s manifesto and its to-do list within the first 100 days. Central among the pledges is the confirmation that the unpopular goods and services tax (GST) will be cancelled and replaced with a sales and services tax (SST).

The other measures it intends to carry out in the initial period is to reduce the cost of living, stabilise the price of petrol and introduce targeted petrol subsidies, abolish unnecessary debts that have been imposed on Felda settlers, introduce EPF contributions for housewives, equalise the minimum wage nationally and start the processes to increase the minimum wage, postpone the repayment of the National Higher Education Fund Corp or PTPTN for all graduates whose salaries are below RM4,000 per month and abolish the blacklisting policy.

It also plans to set up a Royal Commissions of Inquiry into 1Malaysia Development Bhd, Felda, Mara and Tabung Haji and reform the governance of these bodies. A Special cabinet committee to properly enforce the Malaysia Agreement 1963 will be set up. There are plans to introduce the Skim Peduli Sihat with RM500 worth of funding for the B40 (low-income) group for basic treatment in registered private clinics, and initiate a comprehensive review of all mega-projects that have been awarded to foreign countries.

What impact the measures will have on government finances is another source of uncertainty but Socio-Economic Research Centre executive director Lee Heng Guie feels it’s too early to assess any impact. “We will have to wait and see if Pakatan will table a new budget. The current estimates are based on the old budget, but I believe the Pakatan budget will continue with fiscal consolidation,” he says.

Pakatan’s alternative budget projects for a smaller fiscal deficit of 2.04%.

AmBank Group Research chief economist Anthony Dass says there needs to be some clarification on the new government’s policy and strategy without risking the ratings.

“Removing the GST and introducing the SST and other subsidies will act positively on the economy, as they help to improve the disposable income of households, and thus, spending. This will help buffer any shortfalls from the GST. Besides prudent financial management as we have seen in Selangor and Penang, a more transparent public procurement system or tendering process will improve competition and lower margins for players and ease budget strains,” he says.

Improving disposable income: Central among the pledges is the confirmation that the unpopular GST will be cancelled and replaced with the SST.
Improving disposable income: Central among the
pledges is the confirmation that the unpopular GST will be cancelled
and replaced with the SST
.

Fiscal implications

Among the to-do list for its first 100 days in office, it is the promise to repeal the GST that has rating agencies worried.

“We are closely following the developments around some campaign promises that could have a negative impact on market sentiment and trigger volatility in the financial markets. These dynamics will take time to unfold and a lot will depend on what the new Government unveils in the coming weeks and months,” says Moody’s Investors Service Financial Institutions Group vice-president Simon Chen in a statement.

“If investor sentiment worsens materially, we will see increasing risks of capital outflows and a further weakening of the ringgit, that could in turn dampen private-sector consumption and operating conditions for banks in Malaysia.”

He did, however, say that Malaysia has weathered challenging periods, in particular, during the 1MDB scandal.

Fitch Ratings in a statement says the May 9 results means a higher likelihood of fiscal and economic policy change.

“The extent to which the new government’s agenda will shift major policy is uncertain, but the Pakatan victory and its policy platform indicate a much greater potential for change. In the meantime, Fitch will monitor the new Government’s policy agenda as it evolves,” it says.

It views policy slippage leading to deterioration in fiscal discipline and higher government debt or deficits as a negative rating sensitivity.

“Among the most notable proposals is the replacement of the GST – a value-added tax launched in 2015 – with the narrower SST that had preceded it. The GST has become a key source of government revenue, accounting for 18% of total revenue equivalent to just over 3% of gross domestic product (GDP) in 2017.

“By comparison, the SST accounted for only 8% of total revenue and 1.6% of the GDP in its last year, 2014. As such, absent offsetting measures, the replacement of the GST would result in a correspondingly higher deficit,” it says.

Lee: We will have to wait and see if Pakatan will table a new budget.
Lee: We will have to wait and see if Pakatan will table a new budget.

Fitch points to another significant proposal, which is to reinstate some of the fuel subsidies. It says that if fuel subsidies were to be reinstated, they could offset some potential budgetary gains from rising oil and commodity prices.

Maybank Investment Bank in a report says that the removal of the GST will mean a projected revenue loss of RM44bil based on the current budget estimates. It says that even if the GST is replaced by the SST, which brought in RM17bil in 2014, there could be a prospective loss of RM27bil in government revenue and that could lift the budget deficit by 1.9 percentage points.

The report, however, does point to Pakatan’s alternative budget released in October 2017, which says that abolishing the GST will stimulate the economy and raise other tax revenues by boosting consumer and business activities. It says tax revenues will rise from better economic growth, higher receipts of corporate income tax, real property gains tax and other sources of income.

Government expenditure is also expected to drop by cutting certain allocations such as for the Prime Minister’s Office that can help buffer the cost of the GST removal.

It says that operating expenditure could be improved by having open tenders and the rationalisation in non-critical spending from supplies and services, which accounts for 14.4% of operating expenditure, grants and transfers to state governments and statutory bodies (9%) and the others’ category (7.8%), which consists of grants to statutory funds, public corporations and international organisations as well as insurance claims and gratuities.

Higher oil prices, however, are a revenue source for the Pakatan government and can help mitigate the loss of income from the removal of the GST. Maybank’s analysis shows that for every US$10 rise in the crude oil price, government revenue will rise by between RM7bil and RM8bil. That increase will have to be balanced out by the Pakatan manifesto’s pledge to give higher royalties to Sabah and Sarawak, and petrol subsidies.

Growth direction

Fiscal consolidation will mean there will likely be an impact on economic growth, as government expenditure plays an important role in generating growth. Economists are, however, optimistic that consumption boost from lower prices from the removal of the GST will help buffer any shortfall from spending.

They feel that the policies that will be rolled out in the coming months will be positive for the market and economy.

“We reiterate our -2.8% budget deficit to GDP for 2018 with the GDP to grow around 5.5%, supported by domestic demand and exports on the back of a stronger global GDP,” says Dass.

“We foresee better management in the operating expenditure with a more transparent procurement system or tendering process and efficiency in development expenditure projects and targets.”

Maybank is keeping its 2018 growth target at 5.3%, pending details on Pakatan’s economic policies.

“We are neutral to positive on the consumer spending growth outlook, based on Budget 2018 and Pakatan’s GE14 manifesto on measures to address living costs and boost disposable income. The main issue on the growth outlook now is investment, as businesses adopt a ‘wait-and-see’ stance and amid potential government reviews of several China-linked infrastructure projects and investments,” it says.

The investment climate, though, will be crucial in generating higher economic growth for the new government.

Lee says investor-friendly policies are important and the next three to six months will be important after Cabinet positions are filled and their work starts.

“Dr Mahathir’s strong track record, added with Datuk Seri Anwar Ibrahim as the prime minister-in-waiting and the maturity of Malaysians as reflected in this GE, augur well for the country. These are positive signs on the business and consumer confidence,” says Dass.

“This will help the investment mood to improve and the pick-up in capital expenditure.”

By jagdev singh sidhu, The Star
Related story:

Analysts say fulfilling election pledges may raise fiscal deficit

In the spotlight: Many shed tears of joy when Dr Mahathir was sworn in as the seventh Prime Minister.

Old PM heralds hope for new corporate culture

MALAYSIA’S poor handling of public finances is a subject matter that has very often lit controversy. It is not only during the Datuk Seri Najib Tun Razak government but stretches back to the days of our new ‘old’ Prime Minister, Tun Dr Mahathir Mohamad.

Related posts:

Earth-shattering news: The aftershocks of the general election are not over by any means. Voter turnout declined by 8.84 percentage poi…

Najib and Mahathir face off in fierce Malaysian election:   https://news.cgtn.com/news/ 3d3d414f33517a4d77457a6333566d 54/share.html ..

  Mahathir to be sworn in as PM on May 10 https://youtu.be/zsOkQeJxojk After six decades in power, BN falls to ‘Malaysian tsuna…

Don’t allow another landslide tragedy to happen !


Image result for Tanjung Bungah landslide
Image result for Tanjung Bungah landslide
Image result for Tanjung Bungah landslide

Image result for Tanjung Bungah landslide

Image result for Tanjung Bungah landslide

 

STATE exco member Jagdeep Singh Deo should stop talking only of the 76m altitude restriction and also talk of 25-degree slope gradient restriction on hillside development.

According to The Star on Labour Day, state exco member Jagdeep Singh Deo wrote in his Facebook page: “I want everyone to get their facts right during this election campaign…”, and he went on to state that the Penang government did not approve projects on land more than 76m (250 ft) above sea level.

The Penang Structure Plan clearly states that sensitive hill land is defined not only as land over 76m above sea level but also slopes of more than 25 degrees; the development of such land is restricted to “special projects” only.

Any construction on slopes of more than 25 degree contravenes the second condition. Hillside development cannot be discussed only with reference to the altitude.

For slope stability, the higher the slope face and the steeper the angle, the higher the risk of slope failure.

While the previous Barisan Nasional government here approved many such hillside developments, the record of the present state government shows that more development on sensitive hillsides have been approved.

State exco member Chow Kon Yeow, in his reply to an enquiry in the State Assembly on November 2015, revealed that 56 high-rise towers have been approved on sensitive hill land between 2008 and end-2015.

In the case of the Tanjung Bungah landslide tragedy, DAP leaders claimed that the project was on flat land when it was evident that it was built on land that was once a slope and had been cut flat.

During the earthworks stage of that project, a 20m high, 60-degree angle slope was then formed at the boundary.

It was this slope that failed and buried 11 workers alive.

Under the Hillside Development Guidelines 2012, such a slope is classified as Class Three. Submission requirements include a geo-technical report by a geo-technical engineer and a geo-technical review report by an independent checker.

At present, another proposed project above the Miami Green Resort Condominium is on Class Four land (with slopes greater than 35 degrees) which is classified as “Environmentally Sensitive Areas with Disaster Risk”.

Under the draft Penang Structure Plan 2020, no form of development is allowed on such land.

A technical review of the site by Zeezy Global, a consulting firm, found that the proposed development is on a hill, on Lot 62, with height ranges from 40m to 140m above sea level.

Almost 50% of the slopes have a gradient of more than 25 degrees, and in some areas as steep as 40 to 50 degrees. Some parts of the area designated for construction are higher than 76m.

The project consists of two 34-storey towers of serviced apartments, each with 336 units, and a 20-storey “affordable housing” tower with 197 units.

Two retention ponds larger than an Olympic-sized pool with total capacity of 5.2 millon litres on the hill are planned to cater to expected high surface run-offs during and after construction.

The existence of such a huge mass of water poses potential risks to residents if the slopes de-stabilise during or after construction, particularly if monitoring, maintenance and enforcement are weak.

Existing gunite slopes in Miami Green are not designed for additional loading.

With the new project, exertion of loads at the upper slopes could endanger the residents.

The disturbance from the construction could affect the integrity of the existing slope. No assurance has been made regarding risks of landslides or slope failures during and after construction.

In light of the Tanjung Bungah tragedy, lessons must be learned. If the local and state authorities do not have the technical capacity to implement, monitor and enforce the present hillside guidelines, a moratorium on hillside development should be imposed until such time that this problem is resolved.

The public should not be put at risk anymore. Eleven lives were lost and hopefully not in vain.

By Dr Lim Mah Hui Former Penang Island City councillor
Dr Lim says hillside development cannot be discussed only with reference to the altitude

Related posts:

 

https://youtu.be/QB45Q2_mOG0 Suspicious activity: A photo taken from Penang social activist Anil Netto’s blog showing an active s..

 

Penang landslide, whose faults?

 

 

Halt all hillslope development, Penang Forum tells state | Free … FMT – GEORGE TOWN: The Penang Forum has repeated its call for al…

 

 

NGO draws up own manifesto to assist the next state government  (From left) Anil, Ben, Dr Chee, Khoo Salma, Dr Anwar and Dr Ka…

https://rightways.files.wordpress.com/2017/10/2611f-penang2blandslide_forum.jpg?w=300

Penang landslide tragedy, why it happened?

Speaking out: Penang Forum members protesting outside the CAP office in George Town. Don’t just make it about worker

 

Penang floods and landslides, looking beyound natural causes! 

Seeking solutions: Penang Forum member and soil expert Dr Kam Suan Pheng giving her views during the dialogue session themed ‘Penang Fl..


Choong (in white) surveying the deforested hillslope next to Majestic Heights. PENANG MCA has raised concerns about the safety of the r…

 

Wet, wet woes: (Above) Bukit Jambul isvflooded once again after an evening downpour. Firemen installing a pump to draw floodwater…

 

Council should not bow to development or political pressure, says city councilor, Khoo ‘Politicians shouldvvbe ‘wakil rakyat’ and n..

.

Behind BJ Cove houses at Lintang Bukit Jambul 1 is an IJM Trehaus Project.  Approximate Coordinates : °20’38.47″N,100°16 

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

Related articles:

Zairil under fire over high-rise – Nation

Uphill battle: Miami Green Resort Condominium residents protesting against the upcoming hillside project located behind their high-rise.
Uphill battle: Miami Green Resort Condominium residents protesting against the upcoming hillside project located behind their high-rise.

Jagdeep: Project behind condo not 76m above sea level as claimed

Penang government needs ‘check and balance’ – Malaysian Chinese …

 

Now Bukit Jambul hit by hill-clearing more than 250 feet above sea level

anilnetto.com › Economy › Development issuesAug 26, 2016 – This is apparently for a condo and semi-detached housing project by a major property developer. The site lies along Lebuh Bukit Jambul, on the hillslopes

just north of Inti College and near Equatorial Hotel in Bukit Jambul. The irony is that such ‘back to Nature’ projects are being advertised as ‘green …

Southern Bukit Jambul – READ MORE:  Penang Forum discusses its Penang Hills Watch Report 2016 with state government


READ MORE:  Penang Forum 8: Dialogue on floods – a call to action (videos)
 

 

 DAP rep slams state govt over hillslope project, Malaysia News …

The DAP state assemblyman for Tanjung Bungah has hit out at state authorities for approving another hillslope project on the … They were concerned about the possible violation of law related with hillslope development guidelines by either the developer or the state government, or both.
Related posts:

NGO draws up own manifesto to assist the
next state government  (From left) Anil, Ben, Dr Chee, Khoo
Salma, Dr Anwar and Dr Ka…

Penang landslide tragedy, why it happened?

Speaking out: Penang Forum members protesting outside the CAP office in George Town. Don’t just make it about worker safety issues …

Behind BJ Cove houses at Lintang Bukit Jambul 1 is an IJM Trehaus Project.  Approximate Coordinates : 5°20’38.47″N,100°16’…

Penang floods and landslides, looking beyound natural causes! Seeking solutions: Penang Forum member and soil expert Dr Kam Suan Pheng giving her views during the dialogue session themed ‘Penang Fl..

Penang hit by floods again !

https://youtu.be/ooyXvqmxbvw GEORGE TOWN: Some 20 houses located on a slope in Hong Seng Estate in Mount Erskine were flooded due


 

It’s hard to deny when the effects of climate change are all around us  Andrew Sheng says that from increasingly intense hurricanes t…

Hills, landslides, floods and damaged houses: What to do?

https://youtu.be/kslhytLg-Wc Hills, landslides and floods: What to do?   The mega floods in Penang which followed the landslide…
Choong (in white) surveying the deforested hillslope next to Majestic Heights. PENANG MCA has raised concerns about the safety of the r…

 

Wet, wet woes: (Above) Bukit Jambul is flooded once again after an evening downpour. Firemen installing a pump to draw floodwater…

 

Council should not bow to development or political pressure, says city councilor, Khoo ‘Politicians should be ‘wakil rakyat’ and n…
(From left) Dr Kam will deliver a talk on ‘Understanding the Causes of Floods and Seeking Solutions. State assemblymen expressing inter…
https://youtu.be/4qaOB1n5tgA GEORGE TOWN: The Penang Island City Council has lodged a police report against the consultant of the aff…

 



https://youtu.be/QB45Q2_mOG0 Suspicious activity: A photo taken from Penang social activist Anil Netto’s blog showing an active s..

 

Becoming bald: A view of the clearing work seen at Bukit Relau which was visible from the Penang Bridge in November last year. GEORGE..

 

  Fake Awards Scam for Penang Island City Council, Seberang Perai Municipal Council ! 

Home locked by Penang City Council over RM468 paltry arrears of assessment 

%d bloggers like this: