Penang Property Talk

There will be no increase in the price of cement, says Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail.

The minister said the decision was made following a meeting with industry players on Tuesday (June 18).

“I have been meeting with the stakeholders for the past few days. Following our discussions, all parties have agreed not to increase the price of cement,” said Saifuddin at a press conference at the ministry here.

Saifuddin added that the price of cement is controlled by the Government and the industry cannot raise the prices without approval.

Recently, several developers and cement product manufacturers have expressed concern that the price of cement could go up by 40% to 50% .

Saifuddin said a hike in the price of cement would be detrimental to the government’s plans to build one million affordable homes for the people.

“However, to be fair to the industry, we allow them to air their views and we listen to their reasoning on why they feel there should be a price increase,” said Saifuddin.

Source: TheStar.com.my

Amansara South, also known as Precinct 1, is the first residential component in Setia Fontaines master-planned township development by SP Setia. Located in Bertam, Setia Fontaines has an estimated gross development value of RM13 billion, to be developed over the next 20 years. It comprises 16 residential precincts, 270 acres of commercial and retail components and 100-acre of greeneries which include a 63-acre man-made lake with musical fountain and a 37-acre town park.

The first residential precinct comprises a total of 392 landed residential units, offering a few types of single and double storey terrace houses. Indicative price starts from RM330,000 onwards.

Project Name : Amansara South @ Setia Fontaines
Location : Bertam, Penang
Property Type : Single & double storey terrace
Land Tenure: Freehold
Total Units: 394
Built-up Size: 1,310 – 1,812 sq.ft.
Indicative Price: RM330,000 onwards
Developer : S P Setia

Location Map:

The Penang government will be submitting its application to the Federal Government to seek an allocation to fund the Penang Transport Master Plan (PTMP) once the necessary approvals are obtained.

Chief Minister Chow Kon Yeow said the state welcomed the statement by Finance Minister Lim Guan Eng who had said that the Federal Government would consider funding for PTMP if asked.

“We will submit our application to the Federal Government to finance some of the PTMP projects, in particular, the light rail transit (LRT) project.

“Public transport is under the Federal’s jurisdiction and LRT is a public transport. The Federal Government has been supporting rail projects in terms of funding in the Klang Valley.

“So, it is quite natural that the LRT project in Penang, being a public transport project, should also receive funds from the Ministry and the Federal Government.

“We understand that the funding will not be in a lump sum but over the duration of the construction period; so as not to burden the Federal Government.

“The Federal Government has a lot of projects to support in the country,” Chow told a press conference in Komtar today.

Chow said that the Federal Government would consider a progressive disbursement of funds.

He also said that the Penang South Reclamation (PSR) project was necessary; not only to finance the PTMP but also to drive the state’s economic development in the future.

“We need land for future development.

“We can relook at the scale of the PSR project if we have the funding from the Federal Government. The size of the land to be reclaimed can be relooked, but the PSR project is still needed.

“Penang is a key contributor to Malaysia’s foreign direct investment (FDI). The state’s FDI for January to March this year represented 42% of Malaysia’s total FDI.

“It is important that Penang continues to grow its economy especially in the electrical and electronics (E&E) sector,” he said.

Chow added that the approval for the PSR must first be obtained before the approval for the LRT could be given.

He also welcomed Economic Affairs Minister Datuk Seri Mohamed Azmin Ali’s statement, that the Federal and the Penang government must work closely to ensure the needs of Penangites be guaranteed and given attention.

Source: Buletin Mutiara

The business community in Penang have raised concerns to the Finance Ministry over the 40% price hike in cement.

Real Estate and Housing Deve­lopers’ Association Penang chapter chairman Datuk Toh Chin Leong said the increase would affect property prices.

He said they were worried that the price hike could be due to a mo­­nopoly by certain companies controlling supply to increase profits.

“This was among our concerns as we do not know why this happened so fast.

According to reports, Hanson Buil­ding Materials Malaysia Sdn Bhd announced a price increase of ready-mix concrete effective Saturday.

Citing the recent 40% price in­­crease in cement and other significant rises in input costs, the company said customers in Kuala Lumpur and Selangor would have to pay about RM40 per cubic metre more than the current price, depending on the mix design.

Federation of Malaysian Manu­facturers Penang chairman Datuk Dr Ooi Eng Hock said the sudden increase would affect the price of affordable housing projects.

“We foresee that it will affect 15% to 20% of the housing costs, as well as the cost to build factories,” he said.

Penang Master Builders and Buil­ding Materials Dealers Asso­ciation adviser Datuk Lim Kai Seng described the sudden increase as “unfair”.

He said the price per 50kg for cement could have gone up to RM16, as compared to between RM9 and RM12 previously.“The materials for cement are locally sourced. Such an increase is really unfair as it will affect construction works, especially contracts which have been signed.

“We cannot increase the prices now,” he said.

Guan Eng said he would bring up the matter to Domestic Trade, Consu­me­­rism and Cooperatives Affairs Mi­­nister Datuk Seri Saifuddin Nasu­tion Ismail in a meeting this week.

“After listening to the business communities here, we are told that the price hike will create a chain effect, resulting in changes in prices for development projects involving roads, houses and factories.

“About 85% of the cement supply comes under one company and this can negatively impact the industries. There is no reason for such a hike,” he said.

In a statement, the Cement and Concrete Association of Malaysia said over the past few years, the cement industry has been suffering from an increase in electricity tariff, following the withdrawal of the Special Industrial Tariff and the implementation of Imbalance Cost Pass Through, increase in packing materials and rising cost from imported fuel, materials, engineering spares and equipment.

“While the industry has been absorbing these cost increases, cement prices in Peninsular Malay­sia have been on a downward trend since 2016 and has reached a level that is not sustainable.

“Collectively, the cement industry provides hundreds of thousands of jobs directly and indirectly.

“These jobs will be put at risk if the industry continues to operate at a loss,” it said.

The association added that the cement industry was “highly capital intensive” and needed a reasonable return on its investments to meet the expectations of all stakeholders.

Source: TheStar.com.my

Mega projects planned for the state, such as the RM46 billion Penang Transport Master Plan (PTMP) and Penang South Reclamation (PSR), may be modified, scaled down or even reviewed depending on the situation and change in circumstances.

Chief Minister Chow Kon Yeow, however, insisted that both projects would not be scrapped at all cost, despite continuous opposition from various quarters.

Speaking to the New Straits Times in an exclusive interview recently, Chow said this was probably the final opportunity for the state to lay the proposed PTMP projects.

Explaining, he said if the PTMP was implemented 20 to 30 years down the road, imagined how many houses need to be torn down to find the alignment.

“We proposed as much as how the island can support… Nothing more than that.

“Transport mobility, logistics and telecommunication infrastructures are all necessary for any state to move forward. We have travelled to many other places and things that distinguished them from us are these components.

“Having such infrastructures will enable us to face challenges in the future, and more importantly, this is the only one project that the island can afford physically,” he said.

The PTMP project, announced back in 2015, consists of a light rail transit (LRT) system, an undersea tunnel and highways, among others.

To fund the PTMP, the state plans to embark on a massive reclamation to create three man-made islands, with a total land area of 1,800ha.

Elaborating, Chow said there were a lot to be put into the PTMP, in order to finalise the agreement, especially the technical aspects and the design.

“This is why we have yet to sign the agreement. The cost and the value of the land involved are big issues to be finalised, and even then, it can still throw a spanner into the works if we cannot agree to the terms.

“We are committed to the project but also to good governance. We will still negotiate for the agreement where we want to put the dot in the ‘I’ and also the cross in the ‘T’.

“I do not see calling off the project at this juncture but can come up with compromise.

“Also, we have yet to get approval for the LRT, and once we get it, we can decide which system to use. It is still very open and we will also look at cost saving aspects,” he said.

Chow expects the approvals for components in the PTMP to be obtained within this year and works to begin within a year.

He explained that the LRT and PSR should start together or better still for the reclamation to go ahead first as it is the funding model.

Chow, however, stressed that the intention of the reclamation was not solely to fund the PTMP but the lands, to be reclaimed, are necessary for future developments, for the next 30 to 50 years.

“The reclamation will take about 15 years to complete. Along the line, if there are any changes in circumstances, such as federal funding, it can be reviewed,” he added.

Source: NST Online