Floods hit Bujkit Jambul & Hong Seng Estate in Penang


Wet, wet woes: (Above) Bukit Jambul is flooded once again after an evening downpour.

Firemen installing a pump to draw floodwaters from one of the affected houses on a slope in Hong Seng Estate, Mount Erskine.

GEORGE TOWN: A blocked underground drainage saw six houses located on a slope in Hong Seng Estate, Mount Erskine, flooded during an evening downpour.

Firemen and Civil Defence Force personnel had to install a water pump to draw out the rainwater which flooded some of the units to waist-level.

Rojak seller Tan Swee Hoe, 56, said she was shocked to see her kitchen and living room submerged in water at 7pm yesterday.

“I rushed home after receiving a call from a neighbour, saying my house is flooded.

“But I did not expect such a sight. I did not manage to move my furniture and electrical appliances to the upper floor, thus incurring several thousand ringgit in losses.

“I have been staying here for 17 years and this is the first time my house is flooded,” she said at her house.

Pulau Tikus assemblyman Yap Soo Huey said 17 people from five houses were affected while the sixth house was unoccupied.

She said the Fire and Rescue Department and the Civil Defence Force personnel moved in to install a 400m pipe to pump the water out from the house manually.

“The water is channelled to a nearby river and it may take a few hours if the weather is good,” she said, adding that the district office will evaluate the losses.

Late last month, seven houses in the estate were affected by soil erosion. A consultant engineer Datuk Lim Kok Khong had said the soil erosion was due to water seeping under the ground.

Penang Gerakan secretary H’ng Chee Wey urged the state government, with the aid of the experts, to look into the cause of the problems.

“The state government needs to ensure that the existing infrastructure, including the drainage system, can cope with the demand before it approve new development projects.

“We hope the local authorities can be proactive in the matter,” he added.

Rising waters also flooded the Bukit Jambul area, reducing traffic to a crawl.

Bayan Baru MP Sim Tze Tzin said a RM400,000 flood mitigation project started last month.

“The project will create a shortcut for the floodwater to be discharged directly to Sungai Nibong river instead of passing through Jalan Tun Dr Awang,” he said, adding that the project was expected to be completed at the end of next month.

Source: The Star by chong Kah Yuan

Related Links


 

Deluge brings chaos to northern states

Deluge brings chaos to northern states

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Penang landslide tragedy, plea went unheeded, no one listened !


Suspicious activity: A photo taken from Penang
social activist Anil Netto’s blog showing an active stone quarry about
500m directly behind the site of the landslide.

GEORGE TOWN: As the landslide tragedy takes its toll with three workers killed and 11 others feared dead, DAP state assemblyman Teh Yee Cheu said there are still 10 other development projects pending, but his plea to save the hills has been constantly ignored.

Some of the projects will be near hillsides and more are planned along the coastline. A few are projected to be 50 to 60 storeys high, said the Tanjung Bungah assemblyman.

“I objected to each one. I always use the words Saya membantah sekeras-kerasnya (I strongly object) and some city councillors laughed at me and said the approval authority ‘menyokong sepenuh-penuhya’ (fully supports).

“Now see what has happened,” Teh told The Star.

He was referring to the one-stop centre at the Penang Island City Council (MBPP), which is in charge of approving property development plans on the island.

Teh, who rushed to the scene of the landslide shortly after it happened at about 8.30am yesterday, did not hide his discontent over the spurt of development projects in his constituency.

“Not all those development applications have been approved yet.

“But after the general election, I expect a mushrooming of approvals,” he added.

Tanjung Bungah is one of the few residential areas on the island with a low population density.

The Lembah Permai area, locally called Hillside or Vale of Tempe, is a coveted location for its semi-detached, terraced and bungalow homes.

But in recent years, developers have been submitting plans for high-rises that rival even the height of Komtar, in the area’s unoccupied hills and seaside.

Yesterday’s landslide happened at a construction site near Lorong Lembah Permai 3.

Tens of thousands of tonnes of laterite earth slipped down from a height of about 35m, burying the workers.

Firemen told reporters that the search operation had to be carried out slowly because the slope was unstable.

Teh said he objected to the project’s planning permission about two years ago because the original hill slope had a steepness of 30 to 40 degrees.

“I apologise to my voters in Tanjung Bungah. I objected to the construction, but my words were only taken as a personal view by the MBPP and state government.

“I also apologise to the family members of the victims buried by the landslide,” he said.

Asked about a stone quarry located some 500m further uphill from where the landslide occurred, Teh said that it was active, with rock blasting going on two to three times a week.

“I am against that too, but it was allowed to continue,” he added.

Source: The Star


Another call to stop all hill-slope development immediately


Why must it take a tragedy to happen in Penang before the Penang state and local governments wake up to the dangers of rampant and unsustainable development especially on hill slopes? Or will they wake up?

Two years ago, in December 2015, the Penang Forum, alarmed by such negative developments, organised a half-day event titled “Save Our Hills” in which engineering, planning and legal experts gave presentations on the dangers of hill-slope development. (The presentations are available on Penang Forum’s website.)

It then called on the government to review and stop further hill-slope projects. Very sadly, the call fell on deaf ears and the consequences are painfully evident today after an estimate of perhaps 15 lives are lost in a landslide at a hill-slope project in Tanjung Bungah.

Penang Forum then started Penang Hills Watch (PHW), a citizens’ initiative to provide the state government, information on hill cuttings that it collects from the public. In January 2017, the PHW met with the state government; the present site where this tragedy happened was the first case that PHW highlighted to the state government. (Please visit the PHW website.) Photos of construction and hill cutting on this site were presented to the state government – to which it responded that the “earthwork is being monitored.”

The chief minister of Penang, in the Safety Guidelines for Hillside Development, said: “Penang Local Governments (MPPP and MPSP) are to strengthen their Geotechnical unit, which processes and approves applications for hill site developments, followed by strict enforcement. A monitoring team will be established to ensure compliance in construction and monitoring performance of slopes.”

The question is what happened then? Did the state and local governments follow through their own guidelines? Or was there gross negligence?

Such senseless tragedy could have been avoided. Penang Forum calls for an independent Royal Commission of Inquiry to investigate what went wrong and how such incidents can be avoided in the future. All parties beginning from the State Planning Committee that gave approval for all hill-slope projects, to the One-Stop-Committee of the Penang Island City Council that also approved the project, to the engineers who are supposed to monitor the projects, to the developers and contractors who carried out the project should be investigated and held responsible.

In the meantime, Penang Forum once again calls on the authorities to:

    • stop all hill-slope projects with immediate effect;
    • immediately amend the 2009 guidelines on ‘special projects’ to explicitly prohibit all development on hill lands, except if it is for essential public services;
    • rehabilitate all existing exposed and barren slopes and spaces to prevent further soil erosion;
    • undertake stern enforcement, effective and deterrent punishment on those who clear land illegally or do not abide by conditions imposed to prevent soil-erosion;
    • monitor frequently and effectively all hill slopes by the local authorities;
  • publicly declare and give warning on all hill slopes and areas that are not safe.



Sources: Penang Forum 

Sahabat Alam Malaysia

Consumers Association of Penang 

Residents associations and management committees of Penang

Consumers & Residents tell state govt, ‘We told you so’

 

GEORGE TOWN: The Tanjung Bungah Residents’ Association (TBRA) is demanding for a Royal Commission of Inquiry (RCI) on all hill slope developments in Penang, following a landslide at a construction site this morning that buried nearly 18 people.

TBRA chair Meenakshi Raman said the RCI would be a form of audit on all risky hill slope projects in the state, to prevent any tragedies from happening again.

She also said the TBRA had repeatedly appealed to the Penang government to put an end to hill slope developments as it would have a domino effect on flash floods in the state.

“We were called ‘irrational’ by the Penang government when we appealed for hill slope developments to stop. Who’s irrational now?

“Today’s incident is a grave and grim warning to the authorities to take heed of Mother Nature’s warning,” Meenakshi said when contacted today.

In the 8.50am incident, a 10m-high hill slope came crashing down next to a construction site not far from the Tunku Abdul Rahman College in Tanjung Bungah.

At the time of writing, two survivors were rescued, while two more bodies were retrieved from the mud and rubble. Although their identities are not yet known, they are believed to be foreign workers.

Meenakshi said during last month’s flash floods, TBRA and other residents’ associations made a collective appeal to the state government to end all excess developments and hill clearing in the state.

TBRA, concerned groups, and Sahabat Alam Malaysia (SAM) had also previously called on the Penang government to amend existing guidelines concerning hill slopes.

Meanwhile, SAM president S M Mohamed Idris said the NGO had written to the Penang government “several times” urging them to stop hillside developments.

“We have warned that hill slopes are fragile ecosystems and cannot be touched.

“And now, we are really shocked that the lives of many have been sacrificed. We support TBRA’s call for an urgent RCI,” he said when contacted.

Source: Free Malaysia Today

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Sixth body pulled out from Penang landslide heap

 

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


Behind BJ Cove houses at Lintang Bukit Jambul 1 is an IJM Trehaus Project.
Approximate Coordinates : 5°20’38.47″N,100°16’52.82″E
Reported  in August 2016. Photos taken in November 2016 and 2014 by Penang Forum
PHW Report

Click to see Video/images: https://hillclearinginpenang.ushahidi.io/views/map

https://hillclearinginpenang.ushahidi.io/views/map

Sources: Penang Hills Watch (PHW) | Penang Forum

Hill clearing activity by IJM Trehaus Project


Clearing and construction for a condo and semi-detached housing project, Trehaus, reported in http://anilnetto.com/ 26 Aug 2016. Photo taken in 2014 …

Behind BJ Cove houses at Lintang Bukit Jambul 1 is an IJM Trehaus Project.

IJM Hill Clearing 2014

Two invalid pipe culverts formed sinkholes at BJ Cove houses

The following plan clearly shows an underground pipe culvert from the IJM Trehaus site that converged  directly, vertically at BJ Cove houses from another underground  pipe culvert at nearby pond were burst, caused house cracks, floods, formed sinkholes (by two pipe culverts converged in red) and damaged  to  BJ Cove houses in 2015 due to blockages of waters whenever rains and because of lack of drainage systems.  The sinkhole was caused by soil erosion due to waters under the ground.Therefore, damages to houses were caused by severe soil erosion due to water movement under the road and buildings.

Underground Pipe Culverts from IJM Trehaus site on the left and nearby pond on the right

The following is an underground pipe culvert from the IJM Trehaus site behind BJ Cove houses at Lintang Bukit Jambul 1:

IJM constructing an underground pipe Culvert in 2014 to BJ Cove Houses

IJM constructing an underground pipe Culvert in to BJ Cove Houses

IJM Underground Pipe Culvert to BJ Cove Houses

IJM Underground Pipe Culvert to BJ Cove Houses
Waters gushing down from IJM Trehaus site to BJ Cove houses:
Waters flow from IJM Trehaus to BJ Cove houses

 

Waters gushing down from IJM Trehaus site to BJ Cove houses

Waters from IJM site stucked at behind BJ Cove houses

The nearby pond besides IJM Trehaus site:

Serious Drainage Issues

The Department of Irrigation and Drainage (DID or JPS) has just started
constructing the drain from the pond to divert the waters:
A drain under construction by JPS to divert waters from the nearby pond but show no sign to divert waters from IJM Site
Drain water flow under construction by JPS to divert waters from the nearby pond
We are concerned as to how IJM is going to resolve the pipe culvert from their side as JPS has confirmed IJM failure to comply with sediment control plan (ESCP).

Letters fromThe Department of Irrigation and Drainage (DID or JPS)

Clearly, the underground pipe culverts leaked and waters seeped through the
cracks as it did not happen immediately but over a period of time!

Despite the underground pipe culverts declared invalid by JPS and the Penang City Council’s (Majlis Perbandaran Pulau Pinang, i.e. MBPP) has issued stop work orders directing the developers, Worldwide Venture Sdn Bhd, a subsidiary of IJM Land to rectify the damages within 1 and 2 weeks time since 2015 (as per the attached letters below), multiple wall cracks, slabs collapsed, PBA water pipes burst, leakage charges, damaging ceiling, electrical DB board, and tiles fallen, broken/popped up,  are still pending settlement and remedial works to be carried out by parties responsible for the damages since 2014 !!

Letters from Penang City Council’s (Majlis Perbandaran Pulau Pinang)

Letters from Developers: Worldwide Venture Sdn Bhd, an subsidiary of IJM Land:
 

 

 Damaged houses

 Damages appeared after IJM began construction works in 2014, like hill clearing, rock-blasting, piling and digging culvert at Trehaus site. As a result, waters seepage through multiple cracks on the ground, walls, tiles fallen from roofs and popped up from the ground due to vibration from rock-blasting and piling for the building.

 Pictures showing floods, sinkholes at Lintang Bukit Jambul 1, 11900 Penang,  damaged to BJ Cove houses, cracks, waters leakages seeped through the cracks, slabs collapsed, ceilings & tiles broken & fallen, electrical DB board explosion, etc caused by severe soil erosion due to water movement under the road and buildings. The underground pipe leaked and waters seeped through the cracks!

Sinkhole at BJ Cove house no. 20
IJM converted the sinkhole into a manhole waters from their underground pipe culvert at Trehaus
Sinkhole at house 20 is covered up by IJM’s underground pipe culvert from  IJM Trehaus
IJM converting the sinkhole at BJ Cove no. 20

We demand immediate enforcement & Actions, Truth be told:

 

1. The parties responsible must quickly without further delays, to settle the claims and start the remedial works to the damaged houses without condition, as both JPS has declared underground pipe culverts invalid and BPP has  issued stop work orders directed the developers, Worldwide Venture Sdn Bhd, a subsidiary of IJM Land to rectify the damages  ithin 1 and 2 weeks time since 2015!

2. Enforce IJM’s & MBPP’ Letters/Stop-work Orders (above attacked), and divert waters from the two invalid underground pipe  culverts deemed illegal at the IJM Trehaus site and nearby ponds which must be closed and grouted as a long term solution to the problems.

3. Beef up the enforcement and accountability not just in government agencies but also in professional bodies, like the Board Of Engineers Malaysia (BEM),  the Institute of Engineers Malaysia (IEM), etc to  uphold the professional ethics, integrity and standards, to ensure public safety of the buildings and people life.

Findings from Penang Forum 

Dr Kam, a scientist, focused on expansion of impermeable surface area (caused by ill­ planned development and replacing natural ground cover such as hills, fields and trees that act as a water ­absorbing sponge) and soil erosion and landslides (caused by cutting and development in hill areas) as two factors that need special attention.

She quoted Datuk Kam U Tee, the Penang Water Authority general manager (1973~­90), as having correctly explained the Penang floods of October 2008, as follows: the floods were caused by conversion of the Paya Terubong and Bayan Baru valleys into “concrete aprons that do not retain water. The water immediately flows into streams causing flash floods even with moderate rainfall. Because of hill­cutting activities, the flowing water causes erosion of the slopes which carries mud and silt into the river beds”. ( The Star, Oct 24, 2008).

See more.. Penang floods and landslides, looking beyound natural causes!

Credits – Slides presented by Environmental, health and safety consultant Aziz Noor, and scientist Dr Kam Suan Pheng at the Penang Forum event on Oct 29, 2017

Practise true CAT for Sustainable Development

  • Penang government must provide a COMPETENT flood mitigation plan for the state starting with a comprehensive Drainage Master Plan Study and not slogan.

  • The Penang government has to be ACCOUNTABLE to the people and not private developers. In other words, ‘Politicians should be ‘wakil rakyat’ and not ‘wakil pemaju’. If certain waterways and catchment areas have to be gazetted as permanent drainage and storage areas, then so be it.

  • The safety and well-being of the Rakyat has to come first.  In the interest of  TRANSPARENCY, Penang has to launch an inquiry into how the local council approved property developments on slopes without adequate slope protection.

 See more …

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Getting titles right in the engineering field in Malaysia

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The rail economics of East Coast Rail Link (ECRL)


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Rail link seen as game changer but cost is a concern.

TOK Bali, a fishing village in Kelantan with its beautiful sandy beaches and pristine blue waters has long been a hidden gem among well-travelled backpackers. But that may soon change. The idyllic town is one that is touted to potentially become a tourist hotspot, as it sits along the alignment of the East Coast Rail Link (ECRL), a multi-billion infrastructure project that promises many economic spin-offs.

After almost a decade in planning, ECRL was launched with great pomp this week.

Touted as a key game-changer for the east coast states of Peninsular Malaysia, the interstate ECRL is expected to help the economy of the four states that it covers by an additional 1.5% per year over the next 50 years.

On a micro level, more employment opportunities, particularly skilled jobs, will be made available to Malaysians. Domestic industry players especially in the construction sector, can now anticipate construction contracts to the tune of RM16bil, at least.

   
Another milstone:Najib checking out a train model at the ground-breaking ceremony this week.He called ECRL ‘another milestore in the country’s land public transport history”.

The ECRL is expected to benefit freight transport because it would link key economic and industrial areas within the East Coast Economic Region such as the Malaysia-China Kuantan Industrial Park, Gambang Halal Park, Kertih Biopolymer Park and Tok Bali Integrated Fisheries Park to both Kuantan Port and Port Klang.

Prime Minister Datuk Seri Najib Tun Razak called it “another milestone in the country’s land public transport history”.

Despite the much highlighted economic benefits from the rail network, the venture is attracting its own share of controversies from the way the contract was awarded to the price of contract.

For one, China’s state-owned China Communications Construction Company (CCCC) has been appointed for the construction of ECRL via a direct negotiation method.

Detractors have labelled ECRL – at a cost of RM80mil per kilometre – as the world’s costliest rail project. Note that, the Gemas-Johor Baru double-tracking stretch costs RM45mil per km.

ECRL, however, will go over hilly terrain and has several tunnels to be built.

There are questions on whether the 688km rail venture, at RM55bil, will be financially feasible.

Sources say the price tag is unlikely to have included land acquisition costs.

They indicate that close to half of the land plots required for the rail link sit on private land and would require land acquisition. At this point, the total land acquisition cost is unknown.

No money in rail

The concerns of the critics are understandable, given the fact that public infrastructure projects, namely rail projects are usually not commercially viable.

A quick check on the finances of Malaysia’s very own Keretapi Tanah Melayu Bhd (KTMB) and a number of major rail operators abroad, affirms the fact that rail projects do not promise easy money.

The loss-making KTMB which was corporatised in 1992, has not been able to financially sustain itself, resulting in the deterioration of its level of service despite attempts to turn around the company.

According to the railway service operator’s latest publicly available audited report for financial year 2013, the group registered a total net loss of RM128.2mil. However, note that, the net loss had narrowed by 46% from RM238.5mil in the previous year.

Had it not been for the government’s subsidy which kept it afloat, KTMB would find it difficult to continue its operations without a further raise of its fare.

In India, where railway is a favoured mode of transportation, the Indian Railways has been incurring losses on passenger operations every year. Earlier this year, the lower chamber of the Indian parliament was told that the state-owned rail operator recorded a loss of Rs359.18bil (RM24.04bil) in the period of 2015 to 2016.

This was slightly higher than its loss of Rs334.91bil (RM22.42bil) in the period of 2014-2015.

On the other hand, China’s state-owned rail operator, China Railway Corp, was reported to have recorded a 58% increase in earnings last year despite huge losses in the first nine months. However, a zoom into its finances reveals that the high profit made was only possible due to a significant annual government subsidy.

Similarly, Singapore’s SMRT Corp which manages the city-state’s rail operations posted a profit of S$7.4mil (RM23.33mil) in its financial year of 2016. This was on the back of a revenue of S$681mil (RM2.15bil), which rose by 4.1% year-on-year.

While the rail operations saw higher ridership in that year, SMRT Corp would have registered a loss of S$9.6mil (RM30.26mil) for its rail business, if not for the net property tax refund of S$17.1mil (RM53.9mil).

Considering the lack of commercial viability in such rail projects, ECRL would ultimately require assistance from the government in ensuring smooth operations, while maintaining an affordable service for its users. This is akin a crucial trade-off, to complement the government’s move to provide an integrated transportation system in Malaysia, which is long overdue.

AmBank Group’s chief economist Anthony Dass tells StarBizWeek that for every ringgit spent on capital projects such as transportation, it generates a return or multiplier effect of around 5% to 20%.

In his estimation, he says the ECRL should create around RM50-55bil in terms of gross domestic product.

“The impact of this project to the economy will be multilevel. Impact on the respective states’ GDP and national GDP will be evident, though the magnitude of the impact on the respective states is poised to vary.

“On a longer term, once the entire project is completed, we expect strong benefits seeping into services related activities. Properties in the major towns is likely to enjoy more especially the port-connected towns, driven by logistics- and trade-related businesses.

“Other areas would benefit from the movement of tourism. As for the smaller towns, they are more likely to enjoy from the spillovers of this connectivity through movement of people commuting to work and new areas of business growth especially in areas like the small and medium businesses,” says Anthony.

High cargo projections

By the year 2040, an estimated 8 million passengers and 53 million tonnes of cargo are expected to use the ECRL service annually as the primary transport between the east coast and west coast.

By 2040, ECRL is projected to support a freight density of 19 million tonnes.

The freight cargo projections of the rail network stands in stark contrast to the total cargo volume running through the entire Malaysian railways today.

As of 2015, the entire Malaysian railways operations handled a sum of 6.21 million tons of cargo, according to a study related to the ECRL.

To note, the revenue from the operation of the venture is projected to be obtained through a transportation ratio of 30% passengers and 70% freight.

If the projections of ECRL are anything to go by, the planners are anticipating a ballistic growth in volume of cargo being moved along the tracks.

Is this realistic?

Socio Economic Research Centre executive director Lee Heng Guie remains concerned on the details of the project financing, albeit the expected trickle-down benefits of ECRL.

“While ECRL has been identified as a high impact public transport project that will connect east coast states with the west coast, especially Greater KL and Klang Valley, the high cost of RM55bil requires further justification. More clarity on the cost structure and terms and conditions of the loan is needed to ease public genuine concerns.

“It must be noted that the high costs, low profits and long gestation periods of transportation projects do not always make them financially viable. The financial viability of the ECRL would depend on the revenue generated to cover operating cash flow, including interest expenses.

“As the loan will have a seven year moratorium, the bunching of loan repayment together with interest payment will be substantial in the remaining 13 years,” he says.

Lowering cost the key

In terms of funding, 85% of the total project value of RM55bil would be to be funded by Exim Bank of China’s through a soft loan at a 3.25% interest.

The balance 15% would be financed through a sukuk programme by local banks.

There is no payment for the first seven years, and the government starts paying after the seventh year over a 13-year period.

At 3.25% interest per annum, the interest servicing bill for the project is huge.

“Hence the main challenge to this project will be to bring down cost as low as possible. The lower the cost, the lesser it would be the burden on the government’s balance sheet,” says an industry player.

Echoing a similar view, Lee noted the ERCL project loan is expected to be treated as “contingent liability” as it will be taken by Malaysia Rail Link Sdn Bhd, a special purpose vehicle owned by the Ministry of Finance.

This is also to ensure that the Federal Government will not breach the self-imposed debt to GDP ratio of 55%.

As at end-March 2017, the Federal Government’s debt stood at RM664.5bil or 50.2% of GDP.

At the end of the day, despite the concerns on the possible cost overrun in the ECRL project, proper management and efficiency in project delivery could lead to cost savings and ultimately lower overall expenditure for ECRL.

History has shown that Malaysian companies can lower the cost, especially on rail projects compared to foreign players.

In the late 1990s, a consortium of India and China state-owned companies were awarded the contract to build a double track electrified railway system from Padang Besar to Johor Baru. The cost was estimated at RM44bil and paid through crude palm oil.

However, an MMC Corp Bhd-Gamuda Bhd joint venture managed to win the job in 2003 with a RM14.3bil proposal. However this project was shelved and subsequently continued after a lull of few years.

ECRL is a seven year project to be built in stages. Many factors can come into play in that period like delay in construction and rise in material costs.

However in the bigger picture, the infrastructure venture should not merely be seen from a commercial-viable lens alone. The trickle-down benefits on the economy and the Malaysian population should also be factored into the calculations.

The lower the cost, the higher the multiplier effect.

Source: The Star by ganeshwaran kanaandgurmeet kaur

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Wall and awning collapsed in house near construction site


Brought down: A view of the fallen backyard wall and awning of the house.

 

Penang MCA: Guan Eng must explain cause of incident in house near construction site

GEORGE TOWN: Penang MCA is seeking an explanation from Chief Minister Lim Guan Eng on the collapse of a perimeter wall and an awning of a house in Jalan Bagan Baru 1, Butterworth.

Its organising secretary Dr Tan Chuan Hong said the house owner believed the collapse could be due to nearby construction carried out by Penang Development Corpora-tion (PDC), of which Lim is the chairman.

The area is also under the Bagan parliamentary seat which Lim is the MP.

Dr Tan said the house owner had earlier complained to PDC after seeing cracks on the wall at his backyard about one year ago.

He said PDC was carrying out piling works then for its two affordable housing projects.

“Luckily, nobody was hurt in the incident but the authorities came forward only after the wall fell,” he said when contacted yesterday.

“That is against their ‘competency, accountability and transparency’ policy.”

Dr Tan urged the state to conduct a safety review on the projects.

When contacted, Sungai Puyu assemblyman Phee Boon Poh said the awning and wall collapsed due to soil movement during the construction of a drain at the projects.

He said that after being told of the incident, he went for a site inspection with Seberang Prai Municipal Council president Rozali Mohamud, representatives from PDC and the contractor.

“I told the house owner that the state would take full responsibility.He will be fully compensated and repairs will be done soon.”

He added that the council issued a stop-work order for the drain construction pending investigation.

“Our geo-technical expert will do a soil test while PDC and council safety officers will investigate the incident,” he said.

Source: The Star  by Crystal Chiam Shiying

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


 

DURING big festive celebrations such as Hari Raya Aidilfitri, Deepavali and the recently celebrated Chinese New Year, it is common to see families with a few generations gathered together.

Our grandparents, parents, uncles and aunties would talk about the legacies left by our ancestors, and the stories often attract a lot of attention whether from the young or old.

Perhaps, the topic of leaving a legacy is something worth sharing as we embark on a brand new year.

For years, I have been touched by the catchy tagline of a renowned Swiss watch advertisement, “You never actually own a (the watch brand), you merely look after it for the next generation”.

While most of us can relate to the thought, not all of us can indulge in such luxurious watches or be interested in buying one. However, at some point in time, we may be looking at buying a property to pass down to our younger generations.

Whenever the topic of leaving a legacy is brought up, I would recall the lesson that I learnt from my late father. My father embarked on a long journey from China to Malaysia at the age of 16. With years of hard work and frugality at his peak, he managed to own a bus company, the Kuala Selangor Omnibus Co.

Other than his bus transport business, he only invested in his children’s education and real estate. He financed seven of his eight sons to have an overseas university education, and when he passed away, he also left four small plots of land in Klang and a company which had 34 buses.

As I look back now, what my late father invested in unintentionally was very beneficial to me when I came back from my studies as an architect. With the land he handed down and the knowledge he equipped me with, I intuitionally got myself involved in small real estate development, and later founded my property development company, Sunrise, in 1968.

Many people have thought of leaving a legacy. The crucial questions often asked are, when should we start planning for it, and how should we go about it?

For financial planning and investment, I always believe that the earlier we start, the better off we are. The same goes to leaving a legacy.

If you plan to buy a property, it is advisable to start earlier as it is more affordable to buy it now as compared to 10 or 20 years down the line especially with rising costs and inflation in mind. You can start with what you can afford first and focus on long-term investment.

It is proven that property prices appreciate over a period of time, especially when we plan to hand over assets to the next generation that easily involves a 20- to 30-year timeline.

As a developing nation which enjoys high growth rate, Malaysia’s property values will also appreciate in tandem with the economic growth in the long run.

Nowadays, we often hear youngsters comment on the challenges of owning a house due to the rising cost of living. I believe that besides starting with what you can afford, it is also important to plan your financial position wisely and to differentiate between investment and spending.

Investing in properties, commodities, shares, etc. is also a form of savings which can help to grow your wealth and to leave a legacy. On the other hand, money spent on luxury items may depreciate over time from the day you buy them. If we can prioritise investment over expenditure, it is easier and faster to achieve our financial goals.

So, if you haven’t already started to plan, do consider leaving a legacy by buying a house first before a luxury car, branded bags or expensive gadgets, as the latter are considered ‘luxury’, not necessity.

Even if you may not have a spouse or children at this point in time, it’s better to start now than later, as our financial commitments tend to grow bigger as we progress into the next stages of our lives.

Most of us hope our lives matter in some way that can make an impact on our loved ones. The idea of leaving a legacy can take many forms, such as equipping the younger generations with knowledge and values, or leaving them fond memories.

Those are all important to work on and they leave a footprint to those lives you touch. If you are also planning to hand over physical gifts, always remember to start earlier with what you can afford, and focus on long term investment.

By Food for Thought Alan Tong

Datuk Alan Tong has over 50 years of experience in property development. He was the world president of FIABCI International for 2005/2006 and awarded the Property Man of the Year 2010 at FIABCI Malaysia Property Award. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.

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Penang construction industry in 2016 to stay flat


It is expected to generate RM6.8bil in jobs in 2015

GEORGE TOWN: Penang’s construction industry is expected to stay flat this year with a value of about RM6.8bil, which is almost the same in 2014.

“The RM6.8bil mark is one of the highest in the history of the construction industry in Penang.

“Due to the economic slowdown, it will be difficult to surpass this figure,” said Penang Master Builders and Building Materials Dealers Association president Datuk Lim Kai Seng.

Lim said the bulk of the projects were hotel and mixed development schemes.

PMBBMDA president Datuk Lim Kai Seng: ‘Due to the economic slowdown, it will be difficult to surpass this figure (RM6.8bil).’

“For the first six months of this year, the value of jobs given out reached RM2.68bil for 171 contracts.

“Of that total, some 153 are from the private sector while the remainder are government contracts,” he added.

The value of contracts from the private sector is around RM2.47bil, while government contracts total RM214mil.

The business contracts generated in 2014 was revised to RM6.8bil from RM4.8bil announced previously, after taking into consideration projects tendered out in late 2014.

Lim said that the association was confident that there were at least over RM4bil contracts given out in Penang in the second half of 2015.

These contracts, he said, were for mainly new hotels and mixed integrated developments.

Some of the big projects are from IJM Land Bhd with a gross development value (GDV) of RM486mil, Eco World Development Group Bhd (GDV: RM600mil), Mah Sing Group Bhd (GDV: RM1.005bil), Sunway Bhd (GDV: RM150mil), Ivory Properties Group Bhd (GDV: RM1.156bil) and Ideal Property Group (GDV: RM1.8bil).

Lim pointed out that the construction cost for the projects would come up to about 40% or about RM2bil of the total RM5bil GDV.

“The renovation will cost about 30% or RM600mil of the RM2bil spending for construction works.

“We can expect spending of over RM800mil for construction and renovation works annually for the next three years from these projects alone,” he added.

Lim said the new shopping malls being planned now would also generate about RM3.5bil worth of jobs for the local construction industry over the next five years.

“This means that there will be about RM800mil to RM1bil worth of construction jobs given out in Penang per annum starting from next year,” he said.

These shopping malls include Penang Times Square Phase 3 which will have a net lettable area (NLA) of 230,000 sq ft, City Mall Bayan City (300,000 sq ft), Southbay Plaza (424,000 sq ft), Penang World City (1 million sq ft), Sunshine Tower (2 million sq ft), The Light Waterfront Mall (1 million sq ft), Mall@Southbay City (750,000 sq ft), The Designer Village (400,000 sq ft), Ikea & Ikano Power Centre (NLA not available), and a mall project by Belleview Goup (1.5 million sq ft).

By David Tan The Star

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