Penang Property Talk

A total 56 development projects under the PR1MA Corporation Malaysia (PR1MA), valued at RM9.98 billion have been cancelled, the Housing and Local Government Ministry (KPKT) said.

The ministry, in a written reply published in the Parliament website yesterday, said the amount was part of the 131 projects that had earlier been planned with a total value of RM25.64 billion.

Following due-diligence on PR1MA’s policies, finances and business model, it was found that the corporation had to improve its financial situation to continue existing projects being carried out, the ministry said.

“Evaluation done showed only 75 phases were viable of being continued,” the ministry said in its reply to Akmal Nasrullah Mohd Nasir (PH-Johor Bahru), who wanted to know the current direction PR1MA was taking and solutions to be taken as recommended by the evaluation report.

The ministry said construction was now at more than 50% for all the ongoing projects and have Advertising Permit and Developer Licenses (APDL).

A quick check at PR1MA website shows that Residensi Batu Ferringhi and Residensi Permatang Pauh in Penang are not affected. However, PR1MA @ Bukit Gelugor has already been removed from the website.

Source: Bernama

The Penang government is in the midst of studying a proposal to build a cable car project from the recreational park in Penang Botanic Gardens to The Habitat in Penang Hill.

Chief Minister Chow Kon Yeow said the proposal was to build the cable car alignment from Rifle Club at Penang Botanic Gardens up to the entrance of The Habitat.

“The plan is to have eight to 10 pylons from the park to the hilltop.

“In fact, the Penang Hill Corporation (PHC) has appointed a local consultant to conduct a pre-feasibility study of the project.

“There are also other alignments to be involved, which is from Penang Hill to Teluk Bahang.

“However, at this stage, the state is looking at connecting Penang Hill to Penang Botanic Gardens,” he told a press conference after attending a luncheon dialogue session with Malaysian International Chamber of Commerce and Industry at St Giles Wembley Hotel today.

In the recent Budget 2020, the Federal Government had allocated RM100 million to the state government to build a new cable car project with any additional costs incurred to be borne by the state.

Chow added that the project initiative was mooted by his predecessor Lim Guan Eng.

In a related development, Chow said there would be adjustments to the cable car project linking island and mainland.

He said the adjustments to the alignment were from the Noordin Street Ghaut station to a place near the ferry terminal.

“It is still on track,” he added.

Chow also revealed that the state and Rapid Penang were reviewing the free bus services. He pointed out that there were many empty seats on buses plying many of the routes.

“It incurs the state and Rapid Penang up to RM17 million annually for the free bus services,” he said, adding that it would be reviewed to provide a better service to commuters.

Earlier, the dialogue session was held to discuss the public transportation network which was moderated by ThinkCity Berhad programme director Murali Ram while the panelists included Prasarana Malaysia Berhad group chief operating officer Muhammad Nizam Alias, Globetronics Technology Berhad chief executive officer Datuk Heng Huck Lee, Gamuda Berhad Transport Planning director Ooi Peng Hong and Chow.

Various modes of public transportation, including their benefits to the people, and suggestions on solving traffic woes were brought up during the event.

Those present also took the opportunity to ask the panelists questions pertaining to the state’s transportation system.

Source: Buletin Mutiara

The Penang government has reminded developers of the importance of building affordable homes following the supply overhang of high-end condominiums and apartments.

“When they build houses worth millions which people cannot afford, an overhang is caused and the government has to come up with a new policy to address it.

“The developers should look at the high demand for affordable homes,” said state local government, housing, town and country planning committee chairman Jagdeep Singh Deo.

He was speaking to reporters after attending the Local Government Empowerment Convention in conjunction with the 7th Asia Pacific Urban Forum at the Setia SPICE Convention Centre in Bayan Lepas on Monday.

In Budget 2020, it was reported that the threshold on high-rise property prices in urban areas for foreign ownership would be lowered from RM1mil to RM600,000 meant to reduce supply overhang of condominiums and apartments.

Finance Minister Lim Guan Eng was quoted as saying the lower threshold was only applicable to existing unsold units, adding that it would not cover new projects that have yet to be launched.

The decision was to reduce the residential overhang amounting to 32,810 units as of June 30, 2019, valued at RM19.76bil, with condominiums making up 42% of the total value, or RM8.3bil.

Jagdeep said that in Penang, the minimum price for foreign purchases was RM3mil for landed property and RM1mil for condominiums on the island, while on the mainland, the threshold was set at RM1mil for landed property and RM500,000 for condominiums.

He said he would bring up the newly announced policy at the state exco meeting for consideration.

At the same event, Housing and Local Government Minister Zuraida Kamaruddin said every state could set their respective guidelines for minimum price range as different states have different property costs.

“I have no problems with Penang having their own guidelines, to suit their situation.

“They know the suitable threshold for their state. Hence, they can amend it,” she said after launching the convention.

On another matter, Jagdeep said he welcomed the RM10bil allocation for the Rent-To-Own (RTO) financing scheme as announced in the Budget 2020.

He, however, hoped the Federal Government would give priority to buyers from the low-income group.

“The scheme is to overcome the high loan rejection rate, especially in the low-income group who want to buy houses under the low-cost, low medium-cost and affordable categories,” he said.

Lim had earlier said the government would work with financial institutions to implement RTOs to help those who are unable to afford the initial 10% deposit to buy their homes.

“Through this scheme, for the purchase of the first home of up to RM500,000, financing of up to RM10bil will be provided by the financial institutions with support from the government via a 30% or RM3bil guarantee,” Lim said while tabling Budget 2020 on Friday.

Meanwhile, Zuraida said her ministry was planning to extend the councillors’ term period to five years.

“The current one or two years is insufficient for the councillors to carry out their duties effectively.

“The existing period is also insufficient to learn and use the knowledge they have to serve the people.

“This means the local councils will not be able to improve,” she said.

Source: TheStar.com.my

The Penang government is hoping to call for an open tender for the Penang Transport Master Plan (PTMP) projects in the second half of next year.

Chief Minister Chow Kon Yeow said the state and the project delivery partner were looking at the financial structure and other aspects of the PTMP.

“The second half (target) is more realistic. The first half is a bit too soon.

“We welcome those interested to put in their proposals and their bids (when the tender is called) so that the government can choose the best ‘solution’ to help us realise the projects under the PTMP.

“I believe that there will be many consortium of companies that will be interested,” Chow told reporters after delivering his keynote address at the Penang Transport Forum 2019: Unlocking Mobility in Penang Through Rail at St Giles Wembley Hotel in George Town today.

Chow was referring to the Penang South Reclamation (PSR), Pan Island Link 1 (PIL1) and Bayan Lepas LRT projects.

“Like it or not, it (the PSR) is the financial model to support the (other) two projects.

“The three projects (PSR, PIL1 and Bayan Lepas LRT) are ‘bundled together’,” Chow said, adding that several consortium of companies and banks had expressed interest in taking part in the projects.

Chow said that works within each project could be packaged out.

“Works such as the civil structural works, the system, and others can be packaged out.

“We have no restriction on foreign companies bidding for the projects. They may also work together with local companies. I believe that the projects are quite big.

“Of course, we welcome local participation,” he said.

Chow said that the PTMP is viable.

“If the PTMP is not viable, companies and banks would not have come forward and they would not have formed consortiums to arrange the financing of the projects.

“This gives us the confidence to move ahead since it is financially possible to deliver the PTMP projects,” he added.

Source: Buletin Mutiara

About City of Dreams

A freehold luxury lifestyle development at Seri Tanjung Pinang. The residential units come with size ranging from 1,000 sq.ft. onwards, with a well equipped kitchen accessories. Resident can also enjoy a wide range of luxury facilities such as private lift, private lobby, yacht services, Rolls Royce limousine, private bowling alley, private cinema, sky lounge, sky pool and many more.

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