Kagan: ‘They are looking at Malaysia because of its legal and physical infrastructure, geographical location, capability to undertake research and development activities and skilled workforce.

Malaysia is now the choice location for US companies that want to diversify in Asia.

Deputy chief of mission of the US Embassy in Kuala Lumpur Edgard D. Kagan toldStarBiz that there were also companies in China that wanted another location in Asia to set up a platform.

“They are looking at Malaysia because of its legal and physical infrastructure, geographical location, capability to undertake research and development (R&D) activities and skilled workforce,” he said.

Also present at the interview were commercial officer Paul V Oliva, economic affairs counselor Andrew R Herrup and public affairs counselor Frank Whitaker.

Kagan said Malaysia, specifically Penang, was now being seen as a choice location for R&D activities.

“We can see an increasing number of US companies that have chosen Penang as a destination for their knowledge-based content here, taking advantage of the skilled workforce and infrastructure,” Kagan added.

Kagan said over the past few years, there has also been a trend of Asian companies looking to the United States to invest rather than just as a place to sell.

“They have found that doing business in the United States can be very cost-effective due to the structural benefits and the market size, especially when the cost of doing business in Asia has risen over the years,” he said.

Meanwhile, Oliva said there were currently some 34 Malaysian companies in the United States negotiating to purchase rights to distribute American films and television programmes and talking to production companies to co-produce films. Oliva said the United States was Malaysia’s fourth-largest trading partner after Singapore, China and Japan.

“Malaysia is the United States’ 22nd largest trading partner,” he said.

Oliva said the top US products to Malaysia included integrated circuits, aircraft and parts, telephone equipment, semiconductors and light-emitting diodes, and scientific equipment.

In 2013, the value of bilateral trade between Malaysia and the United States was at US$44.2bil (RM147.98bil).

The sale of US goods and services to Malaysia was at US$15.5bil, while the export of Malaysian goods and services to the United States was at US$28.7bil.

Source: StarProperty.my

Bank Negara is expected to keep the Overnight Policy Rate (OPR) unchanged at 3.25% in light of the risks and uncertainties surrounding the global economy.

Bank Negara’s Monetary Policy Committee (MPC), which is meeting for the sixth and last time for this year, will decide on the OPR today.

Of the 22 economists polled by Bloomberg, 21 expected the MPC meeting to conclude with a “no hike” decision. Only one economist expected a hike of 25 basis points (bps) in the country’s benchmark interest rate to 3.5%.

“Given the lack of sustained growth momentum externally, the outlook for Malaysia’s export performance also hangs in the balance,” said RAM Ratings Sdn Bhd head of research Kristina Fong.

“Considering the degree of openness of the country’s economy, this will ultimately contribute to some downside risk to domestic GDP (gross domestic product) growth prospects,” she explained.

Fong noted that leaving the OPR at the current accommodative level would be conducive for Malaysia’s growth resilience, which was an important consideration, given the impending implementation of new policies and regulations, such as the Goods and Services Tax.

Source: StarProperty.my

After the successful sales of Pegasus Residence, Pegasus Homes Sdn. Bhd. is launching phase two of their residential development, known as Pegasus Garden CityHone. This development is adjacent to Taman Kerjasama in Bukit Tengah, Penang.

This is a gated and guarded development, comprising 88 unit of 3-storey 1+1 townhouse.  Upper unit type has a built-up area of 1,650 sq.ft. whereas the lower unit type has a built-up area of 1,500 sq.ft. Both types come with two car parking space.

Property Project : Pegasus Garden CityHome
Location : Bukit Tengah, Penang
Property Type : 3-Storey Town House
Tenure : Freehold
Built-up Area: 1,500 sq.ft. (lower type), 1,650 sq.ft. (upper type)
Total Units : 88
Developer : Pegasus Homes Sdn. Bhd.

by Ken Lim

Recently I met up with a friend who is a retiree, owning a semi-detached home in the vibrant neighbourhood of Island Glades. His house could easily fetched more than two million ringgit in today’s secondary market. His daughter now is contemplating to purchase a new property while harbouring plans to get married within two to three years.

He decided to seek my view on what are the possible steps the government could undertake to exert a certain degree of control on the property price. My message to him is very simple – If all house owners would find time to collaborate and reach the consensus to sell their house at the same price as the initial purchased price then the property price will remain stagnant. Therefore I initiate an offer to purchase his semi-detached abode at the original developer’s price with the understanding that one of the units of my condominium at Tanjung Tokong will be released to her daughter based on the original transacted price.

Understandably, he has rejected my offer without even blinking his eyes.

So, let us take a moment to ponder.

Would you like to even contemplate about the possibility of housing prices dropping?

If you are a first time buyer and you have purchase your condominium at four hundred thousand ringgit, would you be exhilarated if the next phase is selling at a much lower price with respect to the unit you purchased two years earlier?

In 2005, a 1,300sq.ft. unit at Bayswater Resort Condominium would easily fetch a price of three hundred and twenty thousand ringgit only. If it is still selling at that price currently, I’m very certain that everyone will be extremely excited and would not hesitate to grab one now.

However there are two possibilities for the price to stay at three hundred and twenty thousand ringgit after nine years:

1. Growth has stagnated in Penang and everything remains at status quo. Property price is unchanged at every nook and corner of Penang. However property developer continues to build condominium and still sells it to the public at the same price.
2. The condo is so bad in terms of its design and construction that no one would be keen enough to purchase with the purpose of staying . That’s why its price does not appreciate at all.

So, would you be excited with the three hundred and twenty thousand price tag?

It is plausible to conclude that everyone who owns a property, be it for own stay or investment, will be very excited and exhilarated to find their property value gain a measurable appreciation.

The reality is such that whenever we wish to purchase a property we would have hoped that the price at the time of purchase would be so far below prevailing market price yet when we have a property of our own, we would harbour the hope that the price of the property will hit the roof.

This article is not meant to lend credence to the act of speculation however the most likely scenario is that property prices will continue to be on an upward trend.

– Ken Lim
(Founder and Principal Reviewer, PenangPropertyTalk.com)

The flood situation in Bayan Baru on Wednesday after it rained for almost two hours. File pic: NST Online

The Penang government is considering a freeze of new development projects in Sungai Relau and Sungai Ara area until a detailed study on storm water management is carried out.

This comes on the heels of flash floods hitting many parts of Bayan Baru and Relau here on Wednesday, the worst in recent years, making many roads impassable to light vehicles.

State Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow said the developer of a river diversion project had been ordered to take immediate measures to desilt Sungai Relau.

“The Drainage and Irrigation Department, the Public Works Department and the Penang Island Municipal Council (MPPP) have ordered the developer to desilt the river.

“We have completed the site visit. We are thinking of freezing new applications for development projects in the area until a detailed study on the drainage system and water storm management is laid out.

“Apart from that, the developer will also be getting Telekom Malaysia Bhd to complete their cable works on the new bridge at Jalan Dato Ismail Hashim. Once completed, I hope flash floods will not occur,” he said, adding that the bridge is expected to reduce traffic congestion in Bayan Baru and Relau.

The flash floods, caused by a downpour which started at 11am, some low-lying areas were knee-deep in water, resulting in many stalled vehicles.

The floods also caused a massive traffic snarl in the Bayan Baru township, home to one of the most densely-populated areas on the island.

Other areas such as Sungai Ara and Paya Terubong were not spared as well.

Meanwhile, Sahabat Alam Malaysia (SAM) said the drainage system in these areas should be looked into to prevent flash floods in the future.

Its president S.M. Mohamed Idris urged the state government to stop high rise developments on the island, which was also believed to have aggravated the flash floods.

“Enough damage is done in the island. I do not think the island can cope with more developments.

“Those times Relau and Bayan Baru area had very poor drainage system and for some time it was under control.

“Once developments take place, it causes flash floods similar to the challenges faced by Penangites back in the 90s,” he said when contacted.

Source: New Straits Times Online