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Design engineers at fault in landslide tragedy, act against negligent engineers

August 31, 2019 — rightways

Design engineers at fault in landslide tragedy | The Star Online

https://rightways.files.wordpress.com/2017/10/8723e-penang2blandslide_tanjung2bbungah1.jpg

GEORGE TOWN: The State Commission of Inquiry (SCI) tasked with investigating the Tanjung Bungah landslide in October 2017 has found the design engineer of the slope primarily responsible for the incident that claimed 11 lives.

The SCI, in its 116-page report made public, has recommended that the engineer be investigated by the police under Section 304A of the Penal Code for gross negligence.

Besides the engineer, the commission found another design engineer responsible for being “contributorily negligent” for allowing excavation to be carried out without design, engineering calculations and supervision.

Chief Minister Chow Kon Yeow said the commission found that the slope failure was a man-made tragedy and entirely preventable if those in charge had taken necessary and proper steps to ensure the stability of the slope and the safety of the workers.

“The landslide did not develop overnight, it was a disaster waiting to happen over a period of time.

“There were ample warnings which were sadly unheeded or inadequately heeded,” Chow said of the report at a press conference at his office in Komtar here yesterday.

Chow said the report, dated July 22 this year, was a result of public hearings conducted over 26 days with testimonies from 28 witnesses.

“The commission also considered voluminous documents, reports, photographs and drawings, as well as the opinions of six expert witnesses.

“The report provides further analysis of the background facts, excerpts of testimonies recorded during the hearings and findings on liability against several parties,” he said.

The commission also found the Occupational Safety and Health Department negligent for failing to take adequate steps to ascertain the extent of the danger posed by the unsafe slope, by not promptly issuing a prohibition notice after its visit to the site on Aug 18, 2017, which was two months before the fatal incident.

Chow said copies of the report would be sent to the police, Attorney General’s Chambers, Board of Engineers Malaysia and other authorities involved.

“The report also contains nine recommendations that the commission hopes will serve as guidelines and prevent such incidents from recurring,” he added.

On Oct 21, 2017, a temporary slope in the construction site of a high-rise apartment block in Tanjung Bungah collapsed while workers were trying to stabilise it. Tonnes of earth crumbled, killing 11 workers.

The full SCI report can be bought at Level Three, Komtar, for RM50 per copy between Sept 3 and 30. For more details, call 04-650 5480.- Source link

Chow: Agencies have to act against negligent engineers

Penang chief minister Chow Kon Yeow

GEORGE TOWN: It is up to the relevant agencies to take action against the consultant engineers who were found negligent, resulting in the Tanjung Bungah landslide tragedy, says Chief Minister Chow Kon Yeow.

“It is up to the agencies and the police to take action as recommended by the State Commission of Inquiry (SCI).

“I have also directed the Town and Country Planning Department, Penang Island City Council, Seberang Prai Municipal Council and other related agencies to come up with recommendations to improve hill development.

“It was discussed at the State Planning Committee meeting and I have directed state housing, town and country planning and local government committee chairman Jagdeep Singh Deo to head the committee and come up with the recommendations within a month, ” said Chow at Komtar here yesterday.

It was reported that the SCI tasked with investigating the Tanjung Bungah landslide in October 2017 had found the design engineer of the slope primarily responsible for the incident that claimed 11 lives.

The SCI, in its 116-page report made public, had recommended that the engineer be investigated by the police under Section 304A of the Penal Code for gross negligence.

Penang Island City Council engineering director A. Rajendran, who was also present at the press conference, said the stop-work order on the project was lifted after the developer completed mitigation works.“However, different engineers have been overseeing the project since work resumed some time ago, ” said Rajendran.

On Oct 21,2017, a temporary slope at the construction site of a high-rise apartment block in Tanjung Bungah collapsed while workers were trying to stabilise it.

Tonnes of earth crumbled, killing 11 workers. – Source link

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Fitch affirms Malaysia’s rating at A- with stable outlook, but heed the economic warning

July 20, 2019 — rightways

Fitch Ratings

KUALA LUMPUR: Fitch Ratings has affirmed Malaysia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A-‘ with a Stable Outlook.

According to a statement posted on the interantional rating agency’s website on Thursday the key rating drivers were its strong and broad-based medium-term growth with a diversified export base.

However, it also was concerned about its high public debt and some lagging structural factor.

Main points:

* GDP to grow at 4.4% in 2019 and 4.5% in 2020

* Global trade tensions to impact economy

* Private consumption to hold up well, public investment to pick up

* Outlook for private investment is more uncertain

* Weak fiscal position relative to peers weighs on the credit profile

* General government debt to fall from 62.5% of GDP in 2019 to 59.3% in 2021

* Malaysia relatively vulnerable to shifts in external investor sentiment

* Fitch expects another 25bp rate cut in 2020 on the back of continued external and domestic uncertainty.

* Banking sector fundamentals remain broadly stable

Fitch said Malaysia’s ratings balance strong and broad-based medium-term growth with a diversified export base, against high public debt and some lagging structural factors, such as weak governance indicators relative to peers.

The latter may gradually improve with ongoing government efforts to enhance transparency and address high-profile corruption cases.

Fitch expects economic growth to slightly decelerate in the rest of this year as a result of a worsening

external environment, but to hold up well at 4.4% in 2019 and 4.5% in 2020.

Malaysia is a small open economy that is integrated into Asian supply chains, but it also has a well-diversified export base, which helps cushion the impact from a potential fall in demand in specific sectors.

Global trade tensions are likely to have a detrimental effect on Malaysia’s economy, as with many other countries, but this may be partially offset by near-term mitigating factors, such as trade diversion, in particular towards the electronics sector.

Private consumption is likely to hold up well and public investment should pick up again in the next few years after the successful renegotiation of some big infrastructure projects, most prominently the East Coast Rail Link.

However, the outlook for private investment is more uncertain. FDI inflows were strong in the past few quarters, but investors will continue to face both external trade and domestic political uncertainty.

The Pakatan Harapan coalition took office in May 2018 with very high expectations. It has set a number of policy initiatives in motion, but holds only a small majority in parliament and has seen its previously high public approval rates fall significantly.

Uncertainty about the timing and details of the succession of the 94-year old Prime Minister Tun Dr Mahathir Mohamad also continues to linger.

A weak fiscal position relative to peers weighs on the credit profile. The government’s repeal of the Goods and Services Tax (GST) and replacement with the Sales and Service Tax (SST) soon after it took power has undermined fiscal consolidation.

The government aims to offset the revenue loss through measures to strengthen compliance, the introduction of a sugar tax and an increased stamp duty. Its fiscal deficit target for 2019 of 3.4% of GDP, which we believe will be met, includes a special dividend from Petroliam Nasional Berhad (PETRONAS, A-/Stable).

Political pressures and growth headwinds could motivate the government to increase its current spending, but we believe that if it does so, it would seek additional revenues or asset sales to contain the associated rises in the deficit and public debt.

Fitch estimates general government debt to gradually decrease from 62.5% of GDP in 2019 to 59.3% in 2021.

The debt figures used by Fitch include officially reported “committed government guarantees” on loans, which are serviced by the government budget, and 1MDB’s net debt, equivalent at end-2018 to 9.2% and 2.2% of GDP, respectively.

The government guaranteed another 9.2% of GDP in loans it does not service. The greater clarity provided by the government last year on contingent liabilities negatively influenced the debt ratios, but this is partly offset by the improved fiscal transparency.

Significant asset sales, as intended by the government, could result in a swifter decline in the debt stock than its forecast in its base case.

Progress in implementing reforms that institutionalise improved governance standards through stronger checks and balances, and greater transparency and accountability would strengthen Malaysia’s business environment and credit profile.

The World Bank’s governance indicator is still low at the 61st percentile compared with the ‘A’ category median of 76th.

An important change is that all public projects are now being tendered, which increases transparency, creates a level-playing field and should bring down project costs. Prosecution of high-profile cases may also help reduce corruption levels over time.

Malaysia has been running annual current account surpluses for the past 20 years, and Fitch expects it to continue to do so in the next few years, even though the surplus is likely to narrow to below 2% of GDP.

Foreign-reserve buffers were US$102.7 billion (4.7 months of current account payments) at end-June 2019, while other external assets are also significant, including from sovereign wealth fund Khazanah.

Malaysia is nonetheless relatively vulnerable to shifts in external investor sentiment, partly because of still-high foreign holdings of domestic government debt, although these have fallen to 21% from 33% three years ago.

Moreover, short-term external debt is high relative to reserves, although a significant part of this constitutes intra-group borrowing between parent and subsidiary banks domestically and abroad, reflecting the open and regional nature of Malaysia’s banking sector.

Monetary policy is likely to remain supportive of economic activity, after Bank Negara Malaysia’s (BNM) reduced its policy rate by 25bp to 3.0% last May, which seemed a pre-emptive response to increased external downside risk.

Inflationary pressures are limited with headline inflation at 0.2% in May 2019, still low due to the repeal of the GST and lower domestic fuel prices.

Fitch expects another 25bp rate cut in 2020 on the back of continued external and domestic uncertainty.

Banking sector fundamentals remain broadly stable. Elevated, but slightly declining household debt at 83% of GDP and property-sector

weakness should be manageable for the sector, but present a downside risk in case of a major economic shock.

The sector’s healthy capital and liquidity buffers, as indicated by the common equity Tier 1 ratio of 13.4% and liquidity coverage ratio of 155% at end-May 2019, help to underpin its resilience in times of stress.

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)

Fitch’s proprietary SRM assigns Malaysia a score equivalent to a rating of ‘BBB+’ on the Long-Term Foreign-Currency (LT FC) IDR scale.

In accordance with its rating criteria, Fitch’s sovereign rating committee decided not to adopt the score indicated by the SRM as the starting point for its analysis because it considers it likely that the one-notch drop in the score to ‘BBB+’ since March 2018 will prove temporary.

Fitch’s SRM is the agency’s proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a LT FC IDR.

Fitch’s QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within our criteria that are not fully quantifiable and/or not fully reflected in the SRM.

RATING SENSITIVITIES

The main factors that, individually or collectively, could trigger positive rating action are:

* Greater confidence in a sustained reduction in general government debt over the medium term.

* An improvement in governance standards relative to peers, for instance through greater transparency and control of corruption.

The main factors that could trigger negative rating action are:

* Limited progress in debt reduction, for instance due to insufficient fiscal consolidation or further crystallisation of contingent liabilities.

* A lack of improvement in governance standards

KEY ASSUMPTIONS

* The global economy and oil price perform broadly in line with Fitch’s Global Economic Outlook (June 2019). Fitch forecasts Brent oil to average USD65 per barrel in 2019, USD62.5 in 2020 and USD60 in 2021.

The full list of rating actions is as follows:

Long-Term Foreign-Currency IDR affirmed at ‘A-‘;

Outlook Stable

Long-Term Local-Currency IDR affirmed at ‘A-‘;

Outlook Stable

Short-Term Foreign-Currency IDR affirmed at ‘F1’

Short-Term Local-Currency IDR affirmed at ‘F1’

Country Ceiling affirmed at ‘A’

Issue ratings on long-term senior unsecured local-currency bonds affirmed at ‘A-‘

Issue ratings on global sukuk trust certificates issued by Malaysia Sukuk Global Berhad affirmed at ‘A-‘

But heed of Fitch’s economic warning

Fitch Ratings has affirmed Malaysia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A-‘ with a Stable Outlook.

The international Fitch Ratings has given us a warning on the outlook for the Malaysian economy, which we should not ignore.

In preparing for the 2020 Budget, the government’s economic and financial planners should take heed of this friendly warning and act sooner rather than later. We should not let this warning pass, without having more consultations with Fitch, on how serious their constructive criticism could turn out to be.

Fitch Ratings has affirmed Malaysia’s long-term foreign currency issuer default rating at A-, with a stable outlook. But we must seriously take note of the several reservations that Fitch has made, and consider and monitor them, to remain on even keel and progress further.

What are these warnings?

High public debt

The national debt is now confirmed by Fitch to be high. By whatever standard of measurement used – by us, the IMF or the World Bank and other agencies – there is now consensus that our debt is indeed high, although still not critical.

However, the debt has to be watched closely. We have to ensure better management of our budget expenditures and strive to strengthen our budget revenues, to reduce the pressure to borrow more in the short to medium term.

Some lagging structural factors

The structural factors would refer to our need to raise productivity, increase our competitiveness and meritocracy and strengthen our successes, in combating corruption and cronyism.

How far have we advanced to deal effectively with these longstanding structural issues? In the minds of our foreign and even domestic investors, how successful have we been compared to the previous regime?

Fitch expects the economy to slow down to 4.4% this year and 4.5% in 2020. With the US -China trade war looming large and the general world economic uncertainty, investors can get even more jittery and hold back their investment plans. Thus, the low economic growth rates for this year and ahead should not be ruled out.

If the economy softens further to around 4% per annum, the implications of unemployment, and especially for our graduates, could be worrisome. The small and medium businesses and farmers and fishermen and smallholders in our plantation industries could suffer much from any slowdown.

But we are still slow and are struggling in trying to restructure the economy. We have not yet adopted major changes of transformation of the economy, which is largely raced-based to the vital requirement, to become more needs-based in our policies and implementation.

We need a New Economic Model but it has been difficult to adopt it as soon as possible.

Weak governance relative to peers

To be fair, many measures have been taken to strengthen the institutions of government. We have seen this in the parliament select committees, the Election Commission, the MACC and the civil service and other institutions.

We cannot do too much too soon, as good governance takes much longer to restore and build, after several decades of neglect in the past. But our people and investors are somewhat impatient for more rapid changes for better governance.

Fitch has, however, subtly warned us to compare our “weak governance relative to our peers”. Thus, we have to take note of the more rapid progress made by our neighbouring countries in Asean, like Vietnam, Thailand and Indonesia and, of course, Singapore, to measure our real success in good governance.

Investors have the whole world to choose from, to put their money where their mouth is. They also need not look at the comfortable physical climate and tax incentives alone to be attracted to invest in Malaysia.

Racial harmony, religious understanding and political stability are also major considerations for both domestic and foreign investors and professionals. This is where the reduction of the brain drain is important. But we continue to have strong outflows of brain power, which is debilitating.

Fitch warns that the PH government holds only a small majority in Parliament and has seen its previously high public approval rates fall significantly. Fitch’s assessment is quite correct. This has been due to too much politicking and allegation of sex scandals. All this does not give confidence to investors and even consumers who will be dampened in their enthusiasm to increase consumption and investment.

Fitch Ratings has subtly and politely warned us of the challenges we are facing. It has also emphasised in its usual guarded fashion the essential need for us to take heed of their advice and warnings, to make the necessary socio-economic and political adjustments, changes and even transformation, without undue delays.

We could face a real slowdown all round if we don’t consolidate our strengths to overcome our lingering weaknesses to forge ahead for a better Malaysia in the future – for all Malaysians.

By Tan Sri Ramon Navaratnam, chairman of the Asli Centre for Public Policy.

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Landslide tragedy caused by slope instability, was a Construction mishap, not landslide!

June 27, 2019 — rightways

Video:

https://www.thestar.com.my/news/nation/2019/06/27/pwd-tragedy-caused-by-slope-instability/?jwsource=cl

Earth patch: Workers covering the landslide area with canvas to prevent more soil erosion in Tanjung Bungah.

Construction mishap, not landslide’

GEORGETOWN: The incident that claimed four lives at a beach resort in Tanjung Bungah was a construction mishap, said Penang Island City Council (MBPP) mayor Yew Tung Seang (pic)

He said that the slope was unstable due to digging activities as the resort’s owner was building a retaining wall without informing the authorities.

“It’s not a landslide. The incident occurred after the retaining wall collapsed within the resort’s premises.

“We need to be informed of any construction activity and make sure that it is done under the supervision of engineers.

“We are monitoring the situation closely before making a decision on whether to stop the resort’s operations,” he said at a press conference after the launching of the Karpal Singh Digital Hub at SK Sungai Gelugor yesterday.

On Tuesday, four foreign workers were buried alive in a freak accident at the construction site in Tanjung Bungah.

It is learnt that the resort owner recently contracted a Myanmar worker to build a retaining wall after finding that the hill separating the resort and Jalan Batu Ferringhi showed signs of erosion.

The contractor hired three other Myanmar nationals to assist him.

Checks found that the retaining wall, which was supposed to be about 5m wide, had yet to be built but there were other retaining walls beside it.

State local government committee chairman Jagdeep Singh Deo said mitigation works along the 50m stretch of Jalan Batu Ferringhi would be completed in three to four weeks’ time.

“Although the incident happened on private land, it has affected the federal road where many heavy vehicles pass by every day.

“It is important to stabilise the road to ensure the safety of road users,” he said.

Meanwhile, Citizens Awareness Chant Group adviser Yan Lee called on the MBPP to reveal its standard operating procedures for investigating illegal earthworks done in the state.

“I hope that the council can share with us how many officers or workers are available to check on such earthworks,” he said.

Source link

GEORGE TOWN: Soil movement due to slope instability is said to be the cause of the freak landslide that claimed four lives at a beach resort in Batu Ferringhi, says Penang Public Works Department (PWD) director Shahabuddin Mohd Muhayidin.

He said preliminary investigations showed that the slope was unstable as a result of digging by a third party.

“The digging at the slope caused soil movement with a whole lot of earth coming loose.

“Right now, we are taking the necessary steps to stop further soil erosion at the slope.

“After this, we will install sheet piles to stabilise the slope,” he told reporters at a press conference in Komtar yesterday.

Following the landslide, Chief Minister Chow Kon Yeow had ordered PWD to conduct a thorough study of Jalan Batu Ferringhi to check on conditions of the road and slopes along the 15km stretch.

“If the study finds any of the slopes or roads unsafe, repair works will be carried out following recommendations from the study.

“For now, a 50m-stretch of the road leading to Teluk Bahang has been closed for mitigation work and to ensure the safety of road users.

“The mitigation work is expected to be complete within three to four weeks, and in the meantime, a flagman will be assigned at the road stretch to direct the one-way traffic,” said Chow at the press conference.

He said the state had no information on the status of the Myanmar workers who died in the incident.

“Relevant authorities will need to investigate the landowner and project owner so that appropriate action can be taken.

Chow said they have called on the police and government agencies like the Department of Occupational Safety and Health to investigate the and take action against those responsible.

“From monitoring at the site, we believe the works to build the retaining wall were carried out without professional help.

“It was just action taken by the landowner who wanted to fix a condition on the site. And, due to the way the work was carried out, it caused soil movement and eventually the soil collapsed.”

He said PWD and the Penang Island City Council (MBPP) would continue monitoring the issue.

“In this incident, the landowner should be responsible as he or she is responsible for monitoring the land.

“Although the landowner tried to take the initiative to build the wall, professional help should have been sought to ensure safer and more secure work.”

MBPP mayor Datuk Yew Tung Seang said the council would serve notices to the landowner and other parties concerned under Section 70A of the Street, Drainage and Building Act 1974.

“MBPP is investigating, and will take appropriate action against the parties involved.

“Although we have a team monitoring illegal construction, the construction work on this particular site was not visible to public view.”

Yew advised landowners to apply for permits before embarking on any construction work in future.

Source link

Experts: Human error could have led to landslide

GEORGE TOWN: A landslide which occurred even when there was no rain to trigger it might have been due to many reasons, including human error, says an expert.

Universiti Sains Malaysia geotechnical engineering professor Prof Dr Fauziah Ahmad said the workers may have dug at the toe of the slope while trying to build a retaining wall.

“During the digging process, pressure might have been released from the top of the wall, which could already have had cracks.

Prof Fauziah said traffic vibrations could also trigger pressure and cracks on the wall.

“Once there are cracks, water will seep through over a period of time, and when it reaches the instability between backfill and the wall, the slope will collapse,” she added.

Prof Fauziah was asked to comment on the incident on Tuesday where four foreign workers were buried alive in a landslide at a construction site in Batu Ferringhi.

Universiti Teknologi Malaysia Centre of Tropical Geoengineering director Prof Dr Edy Tonnizam Mohamad said the stability of a slope, among others, depends on its soil properties, slope geometry, volume, effect of gravity and also the pore water pressure.

“A slope could fail if one or a combination of factors passed its equilibrium and factor of safety.

“If the geometry of a slope is not properly designed according to geologic, engineering and climatic factors, a slope failure could occur.

“There have been several cases of landslides even when there was no rain,” he said.

Prof Edy added that to prevent such incidents, monitoring and inspection before and during construction is important.

“Professional supervision is also needed at the construction site.

“During construction, the standard operating procedure should be made clear.

“The construction site should be managed properly and safety procedures adhered to,” he said.

‘Owner built walls on his own’

Earth patch: Workers covering the landslide area with canvas to prevent more soil erosion in Tanjung Bungah. — MUSTAFA AHMAD & ANDY LO/The Star

GEORGE TOWN: The owner of a resort along Jalan Batu Ferringhi may have been building walls on his own to prevent soil erosion for some time before a landslide struck, killing four foreign workers.

Penang Works, Utilities and Flood Mitigation Committee chairman Zairil Khir Johari said there were signs of such efforts but the authorities had never been informed.

“It appears to me like he had been doing it on his own, without informing the authorities,” he said.

Attempts to contact the resort owner for comments were futile as of press time.

On Tuesday, four foreign workers were buried alive in a freak landslide at a construction site in Batu Ferringhi at 9.21pm.

George Town OCPD Asst Comm Che Zaimani Che Awang said all four bodies had been recovered.

He added that three of the victims were discovered in a standing position while holding the metal poles for the retention wall while the other was leaning over.

He said the victims did not have any identification papers.

It is learnt that the resort owner had recently contracted a Myanmar worker called Ong to build a retaining wall after finding that the hill separating the resort and Jalan Batu Ferringhi showed signs of erosion.Ong then hired three other Myanmar nationals, to assist him.Checks found that the retaining wall, which was to be about five metres wide, had yet to be built but there were other retaining walls beside it.

The exposed slope has been covered with tarpaulin sheets to prevent further erosion.

Read more:

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https://youtu.be/kslhytLg-Wc

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Introduction to Slope Stability | Soil Mechanics

https://youtu.be/rlCmaYi2rYk

Are you overpaying your property maintenance fee?

December 1, 2018 — rightways

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..
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Road shoulder at Paya Terubong collapses after downpour terrifying motorists

November 22, 2018 — rightways

The road shoulder along Jalan Paya Terubong that caved in after a downpour today

Another view of the collapsed section of the road connecting Air Itam and Relau.

Road users fear landslip that killed nine nearby may affect safety of route

GEORGE TOWN: The landslip along Jalan Paya Terubong near Majestic Heights apartments is causing worry among thousands of motorists using the route to work daily.

They are worried if the incident, which occurred after several hours of heavy rain, would pose a danger to them.

The motorists use this hillside road to get to Relau and Bayan Lepas from Ayer Itam and Paya Terubong.

The affected stretch goes past the Jalan Bukit Kukus highway construction site where a landslide on Oct 19 killed nine foreigners.

It is only a few hundred metres away from the tragic site.

State Works Committee chairman Zairil Khir Johari said the state authorities would not close the road as the soil erosion did not pose any danger to road users.

“All motorists and motorcyclists can still use the road safely without concern.

“The hillside area where the soil erosion occurred was already undergoing repairs prior to the incident.

“The contractor in charge will continue to oversee and restore the affected hillside area,” he said.

Zairil said apart from the restoration project, Tenaga Nasional Bhd was also carrying out rewiring works nearby.

“For the time being, the rewiring works have been halted and all power supply has been cut,” he said.

State Environment Committee chairman Phee Boon Poh advised Paya Terubong residents to avoid using the road if possible.

“Yes, we know how vital the road is especially for those who work in the Bayan Lepas factories,” he said.

Without this connection to Bayan Lepas, the residents of Paya Terubong and Ayer Itam will have to use Jalan Masjid Negeri to reach Bayan Lepas. This route takes longer and is time-consuming.

Jalan Masjid Negeri can see a bumper-to-bumper crawl during rush hour with motorists travelling from other parts of George Town to the island’s south.

George Town OCPD Asst Comm Che Zaimani Che Awang said the police were keeping the road under close observation.

Meanwhile, police have finished their investigation on the Jalan Bukit Kukus landslide and the report will be referred to the Deputy Public Prosecutor’s office.

Penang police chief Comm Datuk Seri A. Thaiveegan said they submitted the report yesterday.

It was reported that police had recorded statements from almost 70 witnesses in its investigation on the landslide for criminal negligence.

Apart from the nine foreigners who were killed, four others also sustained injuries in the incident.- The Star

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Engineering Consultant gets show-cause letter for ‘overlooking hilltop stream”, the main cause for landslide

October 23, 2018 — rightways

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Consultant gets show-cause letter for ‘overlooking hilltop stream’

GEORGE TOWN: The consultant of the Bukit Kukus Paired Road project has been slapped with a show-cause letter for allegedly overlooking a stream on top of the hill before commencing work.

Penang Island City Council (MBPP) mayor Datuk Yew Tung Seang said the stream had been blocked, and this could be the main cause for the landslide on Friday.

“We found the stream on top of the hill on Saturday morning.

“You don’t need an expert to tell you that a diversion was needed in this situation before starting work on the hill.

“For me, this (the blocked stream) could be the main cause for the landslide,” he said at the site in Paya Terubong yesterday

The contractor has since diverted the flow of water

Yew also said stern action would be taken if professional negligence was found to be the cause once the investigation was completed

“This is a straightforward engineering project that needs to comply with standard operating procedure.

“We want to know why the need to divert the water was overlooked. I believe the tragedy could have been prevented,” he added.

Asked about the project, Yew said it would go on.

“I hope the project will be completed on time and in proper order by 2020.”

The RM530mil alternative road linking Lebuhraya Thean Teik in Bandar Baru Air Itam to Lebuh Bukit Jambul began in January 2016.

So far, nine bodies have been recovered from the scene. They included Indonesian worker Subaeri, 34, found at about 12.45pm yesterday and Bangladeshi Muhammad Uzzal, 33, at 5pm.

Muhammad Uzzal is said to be without a valid working permit.

Firemen found his body pinned under a container and took about 40 minutes to extract it before sending it to the Penang General Hospital for a post-mortem. The bodies of Bangladeshi workers Mithu Hossain, 30, Mustak Hossain, 25, and Md Jalil, 34, were pulled out of the rubble on Sunday.

Hill stream overflowed – Heavy rain, water on slope cause of Bukit Kukus landslide

Rescue operations at Jalan Bukit Kukus Paya Terubong

GEORGE TOWN: Water flow from a stream on the hilly area at Jalan Bukit Kukus, Paya Terubong has been identified as among the causes of the landslide there last Friday, according to the Mineral and Geoscience Department.

The department’s director for Perlis, Kedah and Penang, Azhari Ahmad, said the finding was made based on its inspection and monitoring since yesterday.

“Our team, which arrived at the location yesterday morning, conducted an observation and identified several factors that caused the landslide, resulting in all containers on the hill slope to slide down with the earth.

“The main factor that caused the land slide is the water flow from a stream near the slope, and heavy rain since Friday morning caused the water to overflow,” he said.

The department had taken immediate measure by diverting the flow of water from the stream elsewhere to avoid worsening the situation, especially during the search and rescue (SAR) operation, he said.

Azhari said further inspection conducted at 7.30am yesterday found the water flow on the slope was less, but the department will continue to monitor the situation with the help of equipment from the Special Malaysia Disaster Assistance and Rescue Team (SMART) to ensure the safety of SAR personnel.

Based on observation and inspection at the scene, the department found the location of the landslide to be at the concave slope which easily collected water.

“But, we have not ruled out the possibility of follow-up landslides in the area due to the soil structure and there is still water flowing that can cause landslide.

“We have also advised the rescue team to stop operation immediately if it rains as it could cause another landslide.”

He said the department was assisting the rescue team in the SAR operation and did not rule out the possibility of it conducting further investigation to determine the actual cause of the landslide.

“We hope for fine weather and no rain so that the SAR operation can continue until all victims are found,” he said.

The tragedy occurred following heavy rain in the state since Thursday afternoon until noon the following day, causing the landslide at the container and kongsi area at the Bukit Kukus paired road construction site.

Two bodies were recovered on Friday, that of Indonesian national Samsul Asman, 19, and Bangadesh worker Attrul, 35, while the bodies of Myanmar woman Khin Aye Khaing, 33, and Indonesian Bahtiar, 36, were recovered yesterday at 1.30am and 11.55 am, respectively. – Bernama

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

October 15, 2018 — rightways

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

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Penang govt rapped over hill slope development

May 1, 2018 — rightways

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Engineer: Lives at risk in Penang hill project

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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April 20, 2018 — rightways

https://youtu.be/GL2DRy_6PpU

Hard questions: Teng holding up leaflets highlighting ‘51 Empty Promises’ of the state government.

GEORGE TOWN: From a monorail over Penang Bridge to the undersea tunnel project, the state has not delivered any of them, said Penang Barisan Nasional chairman Teng Chang Yeow.

“Between 2008 and 2016, there were public transport proposals from a tram, a monorail, Penang Sky Cab, aerobus between the island and mainland, light railway transit, cable car and underground subway to underground mass rapid transit.

“Eight promises made but until today, not even one has commenced work,” Teng told a press conference yesterday.

In November 2008, a few months after helming the state, Chief Minister Lim Guan Eng said the state was considering adding a hanging monorail along Penang Bridge, among other transport projects.

Teng brought up these unfulfilled transport projects yesterday.

He also maintained that the state could cancel the Penang undersea tunnel project because there was no clause in the agreement to pay compensation for cancellation.

“I am shocked that Chief Minister Lim Guan Eng said I should pay compensation if the project is cancelled.

“The question is why the state government still refuses to cancel the contract.

“With so many missed deadlines and no construction after five years and the tunnel feasibility studies not completed, we wonder why the state government still refuses to cancel the project.”

Teng was responding to Lim who said on Wednesday that when a signed contract was cancelled, there must be some sort of compensation – The Star

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Penang Landslide occured days after remedial works started

January 25, 2018 — rightways

Cracks at Tanjung Bungah site began in June, Commissioner of Inquiry told

Expert panel: (From right) Yeo, Dr Gue and Prof Ramli arriving for the inquiry.

GEORGE TOWN: A temporary structure supporting a worksite slope in Tanjung Bungah developed cracks in mid-June, a Commissioner of Inquiry heard.

Soil Mechanic Sdn Bhd director Cheah Wing How, who was a sub-contractor of the project where a landslide killed 11 workers, said he was informed by a clerk to carry out remedial works as the granite wall had cracked.

Cheah said his team left after completing the granite works and soil-nailing works to enhance the stability of the temporary slope.

There was, however, no mention when they completed the works.

“When we returned, we found there were pile cap excavation works carried out near the slope.

“We believe there was soil movement that resulted in the cracks on the granite wall.

“We were carrying out remedial works and 11 days into the job, the landslide happened,” said Cheah, who has 20 years’ experience in the field.

Cheah was testifying on the first day of the public hearing into the landslide tragedy by the State Commission of Inquiry (SCI) at City Hall in Esplanade yesterday.

On Oct 21, last year, a landslide hit the affordable condominium project made up of two 49-storey towers with 980 units in total within the Permai Village township near the Tunku Abdul Rahman University College.

Among the 11 killed was site supervisor Yuan Kuok Wern, 27.

During the proceeding, the Penang Island City Council (MBPP) also presented eight drone videos that showed the slope and the surrounding area after the tragic incident.

SCI chairman Datuk Yeo Yong Poh said they planned to carry out a site visit tomorrow.

He also fixed the hearing to continue until Monday, followed by Feb 8 to Feb 11, March 24 to March 28 and April 18 to 25.

Other members of the commission are geotechnical expert Datuk Dr Gue See Sew and forensic geo-technical engineer from Universiti Teknologi Malaysia Prof Ramli Nazir.

The SCI was gazetted on Dec 21 last year to investigate the landslide after Yang di-Pertua Negri Tun Rahman Abbas gave his consent on Dec 6, 2017, for the appointment of the members of the commission and its terms of reference.

Meanwhile, Penang Citizens Awareness Chant Group (Chant) adviser Yan Lee said the entrance to the Teik Granite Quarry, which is located near the site where the landslide occurred, should be fenced up.

“Anyone can just walk into the site as the safety measure is not up to mark.

“We have voiced our concern to the Penang Island City Council, the Department of Environment as well as the Land and Mines Department,” he said yesterday.

By Chong Kah Yuan and Jo-Leen Wong The Star

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