18-06-2007: Portfolio review & strategy

Stock prices on Bursa were mostly range-bound last week, although the Kuala Lumpur Composite Index (KLCI) managed to chalk up a decent gain of 8.3 points or 0.6% to end the week at 1,360.7.

Equity markets in the region have been tracking Wall Street's volatile performance over the past two weeks, when The Dow Jones Industrial Average started making triple-digit daily movements. After falling 410 points over three days in the previous week, the Dow Jones Industrials staged a strong comeback to recover about three-quarters of its earlier losses.

The recent volatility is attributed to rising US bond yields, which stayed above the 5% level last week. However, investors took heart from the release of May's producer price index (PPI). Although the PPI reading of 0.9% was higher than expected, prices excluding food and energy costs rose just 0.2% after a flat showing in April. This suggests inflation remained under control.

Despite fears of rising interest rates, Wall Street and global equity markets have been quite resilient this around, as investors appear to be embracing those expectations.

There are several schools of thought to this. One is that the whole world is entering into a new inflationary phase, as evidenced by rising interest rates across much of the globe, and higher commodity prices across the board - from crude oil to agricultural products. An inflationary environment supports higher asset prices, and that includes stocks and property.

Another argument is that rising interest rates are indicative of stronger economic growth ahead — and that translates into better corporate profits. Indeed, some argue that the US economy may have already escaped its worst period, such as the protracted housing slump (especially in the sub-prime market) and a slowing of GDP growth to just 0.6% in the first quarter of 2007.

The local market has also been resilient due to positive domestic economic fundamentals and investor sentiment. The ability of the KLCI to stay above the 1,350-point level is also lending confidence, as that level had earlier proven to provide some strong psychological resistance.

Portfolio review
Our model portfolio performed exceptionally well last week, beating the KLCI squarely and reaching a new record high. Our basket of 16 stocks surged by a significant 3.4% last week — one of its strongest weekly performances. This was nearly six times better than the KLCI's 0.6% gain.

The portfolio's total value, including cash, rose by 2.7% during the week to RM553,713 — a new record high and surpassing the RM550,000 mark for the first time in history. This is a significant 3.5 times more than the RM160,000 we started with a little over four years ago.

Total cumulative profits stood at RM393,713. Compared with our starting capital of RM160,000 on March 3, 2003, we have generated a hefty return of 246.1%. We continue to outperform the KLCI significantly, which is up by 110.4% during the same period.

We had 10 gainers, two decliners and four unchanged stocks last week. Our gainers were very significant, with four stocks gaining over 9% each. Tanjung Offshore and its warrants surged 9% and 11.1%, respectively. They are now yielding us returns of 276% and 2,000%, respectively!

The other major gainers were Muhibbah Engineering (up 10.8% for the week, and 742% from our cost) and DiGi (up 10.7% for the week, and 680% from our cost).

Buying Tekala Corp
We are buying 20,000 shares of Tekala Corp at Friday's closing price of RM1.29 for a total of RM25,800. This will raise our equity weighting from 81% to 86%. After this, we will still have surplus cash of RM78,618 for future investments.

Tekala is shaping up to be not just an undervalued plywood-producing timber company, but also an emerging oil & gas (O&G) play as well.

The company has been benefiting from rising plywood prices and recently posted very strong results for financial year (FY) March 2007. Revenue rose 35% year-on-year (y-y) to RM161.2 million, while net profit surged from RM1.6 million to RM23.1 million, or 15.4 sen per share. This places its trailing P/E at just 8.4 times.

There was a sharp improvement in four-quarter (4Q) FY07 profits, which augurs well for the current financial year if plywood prices hold up and its O&G division makes further inroads. 4QFY07 turnover almost doubled to RM45.8 million, with net profit at RM8.8 million, or 5.9 sen per share.

Tekala has a 25% stake in Offshore Works, which provides services to the O&G industry via four main businesses: (1) construction & engineering services, (2) underwater & ROV services, (3) geo-hydrographic services and (4) ship management and chartering services. Its clients include Petronas Carigali, ExxonMobil, Sarawak Shell, Murphy Oil and Talisman.

The stake was acquired in September 2005, and it is now starting to contribute more positively to Tekala's bottom line, with associate net profit contribution of RM1.9 million in FY07.

Given the strong growth prospects — and rising valuations and investor appetite — for O&G-related stocks, Offshore Works could potentially look exciting for Tekala. This division also provides it with more buffered earnings as compared to other pure timber plays.

Tekala has a very strong balance sheet relative to its small market capitalisation of just RM196 million. It has a sizeable net cash of RM77.1 million, or a significant 50.7 sen per share.

At RM1.29, Tekala's shares are trading just marginally above their NTA of RM1.21. Dividends are also generous, with a net dividend yield of 4.7%. Tax-exempt dividends totalled 6 sen for FY07, including a just proposed, and yet-to-be paid, final tax-exempt dividend of 4 sen. — InsiderAsia

Sarawak Wants Construction Sector To Rely Less On Foreign Labour

June 14, 2007 16:40 PM

KUCHING, June 14 (Bernama) -- Sarawak Housing Minister Datuk Seri Abang Johari Tun Openg Thursday proposed that contractors reduce their dependence on foreign labour by investing in the latest technology available in the construction industry.

He said many new gadgets and machines were available in the market that they could use to speed up their work.

"Perhaps, to reduce the cost of labour, I propose that the local contractors invest in the latest technology in the construction industry," he said when opening a one-day roadshow on "Health, Safety and Enviroment in Construction", here.

Abang Johari expressed fear over the growing trend of hiring foreign labour in the construction sector, saying it could have a negative impact on the state but did not elaborate.

-- BERNAMA

At the Johor State Assembly yesterday: Johor to woo Arab tourists

2007/06/23
By : Reports by Chuah Bee Kim

THE Johor tourism authorities are planning to set up an information centre in Kuala Lumpur to attract more Arab visitors to the state. State Tourism and Environment Committee chairman Freddie Long, who was winding-up the debate on the motion of thanks to the Sultan, told the House yesterday that the state government had asked the Johor Tourism Action Council (JTAC) to look for a suitable location.

He said tourists from the Middle East used to flock to Paris, Milan and New York but since the 9/11 terrorist attacks, they now preferred to spend their summer vacations in Asia, especially in Malaysia.

"These visitors usually bring their family members along and stay for as long as two weeks," he said, adding that the government, through the JTAC, had aggressively promoted Johor in Dubai and the United Arab Emirates.

Long said statistics showed that more than 4,000 Arab tourists visited Malaysia in the first four months of the year, as compared to about 2,000 for the same period last year.
"I believe the number will increase when it gets closer to the 50th Merdeka anniversary celebration," he said.

The number of Arab tourists to Malaysia surged to almost 7,000 last year compared to about 2,500 in 2001.

On another issue, Long said work on a structure to prevent riverbank erosion along a 300-metre stretch at Sungai Tiram would begin in September.

The two waves of floods in Johor had caused the riverbank to erode, resulting in the river becoming shallow, according to Maulizan Bujang (BN-Tiram).

Other on-going work in Tiram includes the repairing of bridges in Kampung Tenang, Kampung Sulati and Kampung Atmo. The repairs are expected to be completed in August.

"The rehabilitation of Sungai Tiram is also expected to start in August," Long said.

Long also said that the state was allocated RM5 million under the Ninth Malaysia Plan to maintain six recreation forests in Johor.

"RM150,000 has been allocated this year for the maintenance of Sungai Bantang Recreation Forest in Bekok," he said, adding that the forest received 72,000 visitors last year.

SpotLight: Opening doors to foreigners in real estate

MALAYSIA has all the ingredients to be an Asian haven for foreigners seeking to buy real estate.

But industry experts say it is failing to seriously do so because of inability on the part of local players and the authorities to package good deals.

They say what is needed is for the government to take the lead with the private-public sector to communicate the international profile of local assets to the right people abroad.

These people can then shepherd more offshore investments into what is seen as relatively cheap value-for-money Malaysian property.

These include promoting local properties to foreign private-equity funds, or global investment bank analysts whose critical views and connections can shape international investor perception
"Malaysia has a strong story which is not told. The effort has to be led by the government," said real estate agency Zerin Properties chief executive Previndran Singhe.

In a move to attract more foreign property buyers, Malaysia has in recent months (December to April) introduced several landmark policies to make it easier for them to own real estate.

These include allowing foreign purchasers to own or invest in as many houses costing more than RM250,000 each as they want here without the Foreign Investment Committee’s consent.

The authorities also scrapped the real property gains tax from April 2007 and changed the rules to allow foreigners to take more than three loans to buy property.

Developers, however, claim that efforts to liberalise foreign ownership of properties was being hampered by slow processing at government department level, at the state-level and at local council level.

According to the Real Estate and Housing Developers’ Association Malaysia, some state authorities take up to 153 days to approve property transfers compared with about 14 days in Singapore and Australia.

"The effort to promote Malaysian property must involve the government and all industry stakeholders, including developers, valuers and architects," said Dr Teoh Poh Huat, a director of property agency Henry Butcher Malaysia.

Meanwhile, analysts expect the liberalisation of the property market to put the sector on a level playing field with regional countries.

This would mean Malaysia, where real estate is relatively cheaper, stands to gain as it offers a lower entry point into the regional market.

"We believe the government’s latest move to abolish real property gains tax is the turning point of opening up one of the heavily-guarded sectors in the country.

"We expect property prices to accelerate at a faster pace in selected areas like Kuala Lumpur, Penang and Johor," TA Securities Holdings Bhd analyst Kamarulzaman Hassan said in a property sector report.

High-end property prices in Kuala Lumpur, Penang and Johor rose quicker at eight per cent annually, surpassing the national housing price index’s average gain of 3.7 per cent.

Moreover, the gradual strengthening of the ringgit against the US dollar is also good news for for- eign buyers due to the potential foreign exchange gains, and capital upside.

Meanwhile, the House Buyers Association said Malaysia needed to benchmark itself against international standards to be a world-class property destination, said association honorary secretary general Chang Kim Loong.

These include adopting the "build-then-sell" method (or its variant 10:90 approach) for new property transactions, and honing a more efficient public-delivery system.

How Integrated Building System (IBS) Works

IBS System Library Project

Look No Farther

Building Better, Safer Longhouses

May 25, 2007 10:02 AM

By Edward Stephen Subeng

SIBU, May 25 (Bernama) -- The Gawai Dayak festival on June 1 will be something special for longhouse chief or "tuai rumah" Unja anak Bess and another 15 families in Melanggan, an Iban farming village located some 60 km from here.

These Iban families are looking forward to celebrate this joyful occasion in the comfort of their new and better-designed longhouse. This longhouse is expected to be fully completed by the end of this month.

In April 21, 2005, a noon fire destroyed their 51-door longhouse, burning everything to ashes including their freshly-harvested rice.

Since then some of the 51 affected Iban families have been staying in a transit longhouse while others put up with relatives.

Construction of a longhouse for the remaining 35 Iban families will begin later this year.



HOUSING LOAN

Sarawak Minister for Urban Development Datuk Sri Wong Soon Koh and Datuk Robert Lau Hoi Chew, who is the Deputy Housing and Local Government Minister each contributed RM15,000 for the longhouse construction.

Wong is also the State Assemblyman for Bawang Assan and Lau, the MP for Sibu.

And only recently, the fire victims were informed that their housing loan application for the construction of a longhouse has been approved.

State Housing Minister Datuk Abang Johari conveyed the good news during his visit to meet the fire victims.

Abang Johari said each family would be eligible for RM10,000 loan, plus another RM5,000 if they incorporate the ministry's latest fire break feature in each family unit.

He said these fire victims are the first in the state to enjoy the new quantum as the Federal Government has agreed to top up its annual RM5 million contribution for the Longhouse Loan Scheme Fund by another RM5 million.

Abang Johari said the Dayak community should thank Lau for getting the Federal Government to contribute to the fund since 2005.

The fund was initiated by the State Government in 1976.



CONTRIBUTION

Meanwhile, Lau said the extra contribution is vital as each year there are some 10 cases of longhouse fire apart from the spiralling cost of building materials.

State Housing Ministry statistics show that there are some 4,500 longhouses in Sarawak.

A typical longhouse has around 20 families. In Sarawak the size of a longhouse is determined by the number of individual family units. If 20 families stay in a longhouse, then the structure is a 20-door longhouse.

Abang Johari said the loan is for longhouse renovations and repairs as well as for construction of new longhouses. Priority is given to fire victims.



HOUSING DEVELOPMENT CORPORATION

According to Sarawak Housing Development Corporation's (SHDC) Project Development Head, Sapri Ahmad, before February this year, the loan had been fixed at RM10,000 for each family.

At 5.5 per cent interest, the repayment is RM64.00 monthly.

"Under the Third to Eighth Malaysian Plan, the Government had spent RM27.286 million for construction of 279 longhouses with a total of 6,420 rooms", he said.

He said the majority of successful applicants are from the Betong Division. They had been allocated RM7.8 million to build 82 longhouses with a total of 1,743 rooms.

"Those from the Sri Aman Division came next with 41 applications (for 721 rooms) for loans amounting to RM3 million."

Last year, there were 55 successful applications. The Betong Division accounted for the most with 17 longhouses (388 rooms) at the cost of RM2.3 million, followed by Sri Aman Division with eight longhouses (112 rooms) at RM604,274.

For this year, SHDC has allocated RM5 million to build 23 new longhouses with a combined total of 504 rooms.

Of the amount, RM2 million has been approved for eight longhouses (200 rooms) for Betong Division followed by Sibu with five longhouses (104 rooms) at the cost of RM1.0 million.

Sapri said there are still 544 applications (11,749 rooms) awaiting approval, which would cost the corporation some RM11 million.

"The majority of the applications are from Sibu (104 longhouses) followed by Betong (98), Sarikei (92) and Miri (72).



LOAN ELIGIBILITY

According to Abang Johari, the criteria for loan approval is based on the applicant's ability to make repayment.

"They must have a stable source of income like being employed in oil palm plantations. Now such plantations are quite widespread in the state".

Abang Johari said even the Penans can apply for the loan.

He said there were times when it was difficult to collect the monthly repayment when the folks concerned had no income.

"But we are flexible on this. We will send our officers to collect from them after the rice harvesting season.

"In the last two years we managed to recover a lot of outstanding loans due to the good market price of rubber. In the future, when we have more funds and no repayment problems, we may provide loans for construction of individual homes like that in the Malay kampung.

Sapri said to build a single-family unit in a wooden longhouse would cost some RM43,000.



LONGHOUSE DESIGN

He said the SHDC has come out with two longhouse designs for those interested in either a single and double-storey building.

Sapri assures that the traditional longhouse feature like the "ruai" or covered common gallery for the holding of meetings, celebrations or funerals would be maintained in both designs.

"But we are expanding on the functionality by incorporating two toilets in each unit. Most family unit now have one toilet. We have also come out with a better drainage system to ensure a cleaner environment."

He said the incorporation of the fire outbreak safety feature in each family unit is mandatory. This is a 200mm-thick hollow brick wall built up to the roof after every single family unit.

"When a fire begins from a family unit, the wall will stop it from spreading to the next unit," he said.

Sapri said another safety standard is the airway built after the living room in each family unit to act as another ventilation channel or an escape route.

Abang Johari said with such fire safety features, insurance companies may be persuaded to provide coverage for fire incidents at the longhouses.



-- BERNAMA

Sarawak Wants Construction Sector To Rely Less On Foreign Labour

June 14, 2007 16:40 PM

KUCHING, June 14 (Bernama) -- Sarawak Housing Minister Datuk Seri Abang Johari Tun Openg Thursday proposed that contractors reduce their dependence on foreign labour by investing in the latest technology available in the construction industry.

He said many new gadgets and machines were available in the market that they could use to speed up their work.

"Perhaps, to reduce the cost of labour, I propose that the local contractors invest in the latest technology in the construction industry," he said when opening a one-day roadshow on "Health, Safety and Enviroment in Construction", here.

Abang Johari expressed fear over the growing trend of hiring foreign labour in the construction sector, saying it could have a negative impact on the state but did not elaborate.

-- BERNAMA

HSL to start RM600m project

By JACK WONG

KUCHING: Hock Seng Lee Bhd (HSL) will embark on its most ambitious high-end mixed development project – La Promenade.

With an estimated gross development value (GDV) of RM600mil, the project is an exclusive gated community in Sungai Kuap area, near Kuching International Airport.

Wholly-owned subsidiary Hock Seng Lee Construction Sdn Bhd will undertake the project, which will have more 1,000 houses, a commercial centre comprising 200 shophouses and office blocks, an international school and a clubhouse.

Executive director Yii Chee Sing told StarBiz the project was now in the detailed planning stage.

Yii said the company expected to start work early next year on another major mixed development project in Samariang Aman in Bandar Baru Samariang, Kuching where it was now building 642 houses.

Yii Chee Sing at the Samariang Aman project site

“This project will comprise 220 shophouses, a seven-storey office block, a mall, a hypermarket and a food court. It will be implemented in three phases over three years,” he added.

On the multi-phased Samariang Baru residential development, he said the first 90 terrace houses had been delivered to buyers. Construction work is under way for 236 more units, which have been sold.

Yii said the company’s two other ongoing residential developments were the Highfields (175 units) in Batu Kawa and Lavender Hills (64 units) at the 21.6km stretch of Jalan Kuching-Serian.

The company is set to launch its first housing project outside Kuching – Vista Parade (39 units) in Sibu – later this year. It also plans to expand its property development to Miri and Bintulu.

Yii said HSL, which diversified into property development in 2000, was tapping into the segment of affordable units priced below RM200,000.

“Our signature product is the courtyard terrace which greatly enhances the ambience of single-storey houses by bringing light and ventilation into the centre of the home.”

Yii attributed the strong demand for HSL-built homes to its variety of innovative design choices.

Tenants at Kuching’s KMC Flats to pay 30% more

By JACK WONG

jackwong@thestar.com.my

KUCHING: The more than 500 families living at KMC Flats in Jalan Ban Hock here will have to fork out 30% more in monthly rental soon.

The flats, built by Kuching Municipal Council (now Kuching City South Council) for rent to the poor 50 years ago, comprise 22 blocks of buildings, the highest being seven-storey blocks.

Under the new revised monthly rental, tenants of the seven-storey single bedroom units will have to pay RM110 (currently RM85).

The new rental is RM119 for three-storey single bedroom units and RM156 for three-storey double bedroom units (up from RM92 and RM120 respectively).

Tenants in double-storey terrace houses will have to pay RM179 monthly as compared to RM138.

With the increase, the City South Council is expected to collect nearly RM790,000 in rentals a year, up from RM600,000.

The council, according to state Environment and Public Health Minister Datuk Michael Manyin, would charge the revised rental only after meeting the tenants to explain the reasons for the rise.

Manyin, who takes charge of local government, said recently that the revised rental was still much cheaper than the market rental rate in the vicinity of KMC Flats.

He said the nightly rate for a single room in a budget hotel in the area ranged from RM45 to RM60.

The council has been subsidising tenants about RM250,000 a year to maintain and improve services at the housing estate.

The subsidy will be reduced to RM72,000 with the rental rise.

The council, which spent RM1.3mil to replace six lifts three years ago, has budgeted RM800,000 this year for the rewiring of the three-storey flats and terrace houses, repairs to drains, repainting the flats and other improvement works.

ABOUT US

ORICON Sdn Bhd has been in the business of the Development of Housing since 1984. Among the distinguished projects are the Satok Parade and Menara Zecon, both are located in Satok, a busy business area in Kuching. Wisma Sultan Tengah, the Head Office for the Perbadanan Pembangunan Perumahan (Housing Development Corporation) was also completed in 1998, and many others.

ORICON SDN BHD has diversified its nature of business to become a Contractor herself (and still holding a Developer’s core business tag). We are one of the local Bumiputra firms, with its core business in Project Development and Construction, has managed to sustain the business until to-date. This were due to the commitment given by the staff in the effort to always meet the minimum standard set by the company.

Oricon has grown to become one of the well known and established Development and Construction companies principally involved in project development and construction, project management, design/build projects, subletting of properties, provision of management services, acquisition and development of land for commercial and residential development and investment.

OUR COMMITMENT

Our experience and performance record has earned us reputation among corporate clients, financial institutions, and government agencies. We have consistently demonstrated the ability to construct projects that are functional, economical, and aesthetically pleasing. From offices to retail facilities, our company has emerged as a leader in the Housing Developer’s community.

Our firm is a licensed building contractor in the state of Sarawak. All construction is supervised and coordinated by our own personal staff, and performed by some of our local's best subcontractors. By being our own contractor, we are able to control the timing and quality of our jobs. It also enables us to reduce overall cost, resulting in the most economical lease rates/purchase prices for our clients. We take pride in that we are able to fast track a project without having to sacrifice quality or cost.

OUR SERVICES

Our established rapport with the local authorities enhances the smooth flow and speed in the implementation of our project planning. ORICON SDN BHD provides a service for the entire project cycle: strategic planning, site selection, the disposal and acquisition of sites, feasibility studies, site plan approval, cost estimating, value engineering, management, development, operation, shell1/interior build-out, project management, field supervision, site development, scheduling, cost control, maintenance and estate assessment. With experience ranging from the construction of low-cost houses, to the restoration of residential units or urban redevelopment, ORICON SDN BHD has provided clients with time, cost and quality effectiveness. ORICON SDN BHD has an obligation to continuously improve the designs, outlook and general beauty of its property development.

THE PROJECT EXPERIENCE

Completed Projects

Year 2007

5 HDC's mini libraries - Bandar Semariang, Tondong, Palma, Demak Laut & Landeh. The first in the State of Sarawak using pre-fab systems (the Integrated Building Syetems). Very fast.

Year 2005

Rancangan Perumahan Rakyat, Taman Sepakat Jaya. Proposed Construction of 304 units Single Storey Low Cost Terrace and 138 units Double Storey Cost Plus Terrace.

Year 2003

(1) Taman Haji Ludin, Lot 2182, Jalan Semariang, Petra Jaya, Kuching. 4 units Semi Detached House and 19 units Terrace.

(2) Tabuan Desa Utara II, BLK 11, MTLD. (Joint Venture project with BLESSED REALTY S/B). 5 units Double Storey Semi Detached House.

Year 2002

(1) Tabuan Desa Utara, Lot 640, 4286 & 4287, Block 11, Muara Tebas Land District. 7 units Double Storey Terrace House, 5 units Double Storey Terrace House.

(2) KUCHING COMMUNITY COLLEGE. Has completed a RM7.0 million KUCHING COMMUNITY COLLEGE, Jalan Sultan Tengah, Petra Jaya, 93050 Kuching, Sarawak for Ministry of Education, Malaysia.

Year 2001

(1) Menara Zecon, 9 Storey Office Tower, Lot 370, Jalan Satok, Kuching. Proposed 1 unit 9 -storey Office Tower.

(2) Wisma Sultan Tengah, Interior Renovation, Car Shed, Guard House & Fencing. Renovation works of WISMA Sultan Tengah, SHDC, 6-Storey Office Building at Jalan Sultan Tengah, Off Jalan Kuching-Santubong, Petra Jaya Kuching.

(3) RPR, Matang Malihah Phase 2. Construction of 988 units 2 Bedroom Flats for Sarawak Housing Development Commission.

Year 1999

(1) Taman Sukma II, Block 14, Salak Land District, Jalan Sultan Tengah, Petra Jaya, Kuching. 27 units single storey terrace house, 26 units Single Storey Semi-Detached House (Mutiara Model), 10 units Single Storey Semi-Detached House (Delima Model), 10 units Double Storey Semi-Detached House (Kenyalang Model), 6 units Double Storey Semi- Detached House (Kenari Model), 40 units Semi-Detached Double Storey House.

(2) Tabuan Desa Indah, Lot 2995 & 5394, Block 11, Muara Tebas Land District. 12 units Double Storey Semi Detached House.

Year 1998

(1) Satok Parade Commercial Centre, Lot 350-369, Jalan Satok, Kuching. Proposed 20 units 4-Storey Shophouse.

(2) Wisma Sultan Tengah. Construction of WISMA PERUMSAR, SHDC, 6-Storey Office Building at Jalan Sultan Tengah, Off Jalan Kuching-Santubong, Petra Jaya Kuching.

Year 1996

TAMAN PELITA JAYA. Oricon has completed a RM1.25 million consisting of 1½ Storey Semi-Detached (6 units), Single-Storey Semi-Detached (6 units), Single Storey Detached (3 units) at TAMAN PELITA JAYA, Jalan Sultan Tengah, Petra Jaya, 93050 KUCHING, SARAWAK.

Year 1991

TAMAN SRI SENA. Oricon has completed a RM0.88 million Double Storey Semi-Detached (4 units) & Double Storey Terrace (27 units) at TAMAN SRI SENA I, LOT 1329, JALAN SEMARIANG, Petra Jaya, 93050 KUCHING

Under Construction

Year 2006

(1) Taman Sukma Commercial Centre, Lot 1406-1463 & 1465, Block 14, Salak Land District, Jalan Sukma Dua, Off Jalan Kuching-Santubong. 8 units 3-Storey Shophouse (Blk A) & 6 units 3-Storey Shophouse (Blk B) & 8 units 3-Storey Shophouse. 8 units 3-Storey Shophouse. 8 units 3-Storey Shophouse & 6 units 3-Storey Shophouse.

(2) PJ Heights, Lot 402, Jalan Sultan Tengah, Petra Jaya, Kuching. 4 units of Semi-Detached.

Making sure developers behave

HEREIT IS: Johari, Assar Senari Group of Companies CEO Tuan Syeed Mohamad Hussien (second left), Daya Perumahan Sdn Bhd chairman Dr Abdul Rahman Junaidi (front row, third left), Assar Senari Group of Companies chairman Tan Sri Datuk Amar Bujang Mohd (fourth left), Wei (second right) showing a replica of the Sheda Code of Practice at the official launching. KUCHING: Housing developers will eventually have to sign up as members of Sarawak Housing and Real Estate Developers' Association (Sheda) to enable them to obtain their developers' licence from the Housing Ministry. Sheda president William Wei said making it a requisite for developers to sign up with Sheda would be the ultimate target of the association. "We are working closely with the Housing Ministry as we believe that in order to regulate effectively, those who wish to become developers have to be registered members of Sheda." Wei said Sheda and the monitoring department of the Ministry of Housing would work closely to ensure that the behaviour of the developers be closely monitored as the main aim was to protect the interest of house buyers. Commenting on the Sheda Code of Practice (CoP) officially launched by the Housing Minister Dato Sri Abang Johari Tun Openg yesterday, Wei said the association was going all out to educate its own members on what had been spelt out in the code. "The education process is ongoing. They have to understand clearly what are the four parts of the code," said Wei, adding that the working committee of' Sheda would also visit each division in the State to explain the contents and functions of the CoP. "For those who have not joined us, we will also invite them to join us so that this code can be enforced effectively," Wei told reporters after the signing of master agreement between Assar Chemicals Engineering Services Sdn Bhd and Sheda cum the launching of Sheda Code of Practice. Wei, however, did not state how long the educating process of the code would take; pointing out that this would be determined by the working committee. He also noted that most of the housing developers were happy with the implementation of the CoP. "Most of the developers are professionals like CEOs or general managers. Maybe less than 10 per cent are being run China-man style. Ninety per cent of our members are professional people. That's why they are happy this CoP is being implemented." Wei noted that once the CoP had been effectively implemented, the Housing Ministry would then be able to work together with Sheda to ensure that those intending to be housing developers must become Sheda members. Earlier in his speech, Wei disclosed that more than 75 per cent of the registered housing developers in the State were Sheda members. He noted that the CoP would keep Sheda members in check, and ensure that houses purchased by the people would be delivered on time, within budget and of acceptable quality. "The CoP will allow greater accountability on the part of the developers with regards to alleged breach of conduct. Developers who cannot meet the standards of the CoP, we have to release them from Sheda." He said the CoP was launched with the objective to enhance the ethical conduct of housing developers and promote the best practices in all stages of housing and real estate development in the State. "With the CoP, Sheda members have to ensure long-term impact on the lives of house buyers in the years to come," said Wei.

Source from: The Borneo Post, 2007-04-21 Author: Violet Tay

BDC interchange ready by end of Apri

AHEAD OF SCHEDULE: Ting (second left) looks at the plan of the BDC interchange project. With him are Wong (left) and Bobby (second left). KUCHING: The BDC interchange will be "fully" opened to traffic by the end of April. Advisor to the developer, Global Upline Sdn Bhd, Tan Sri Ting Pek Khiing, said the whole project had been "constructionally completed" with the touching up, cleaning and landscaping remaining to be done. "This BDC interchange will be like a garden interchange. Before opening the interchange for ,public use, the final touches will be added. It will be a beautiful garden interchange for everyone," he told reporters yesterday. The project was completed nine months ahead of schedule. Ting said piling to strengthen the foundation of all the four bridges started on May 6 lastyearand on Oct 31 the same year, casting of concrete on the Kuching-to-airport bridge was carried out. He added that yesterday, they were able to cast the last part of the project - the Kuching-to-Serian bridge. Ting said last Dec 31, the first bridge from Kuching to the airport was opened to the public on a trial basis. At that time, Global Upline announced the targeted completion date would be Mar 31 this year and the interchange would be fully open to traffic by the third week of April. "The contract was signed on Dec 12 last year. So we are very pleased the project has been completed very much earlier than scheduled," he said. Among those present were project chief secretary Puan Sri Wong Sui Chuo, deputy project director Bobby Ting and project manager Michael Ting.

Source from: The Borneo Post, 2007-03-30

'Give people new lifestyle at reasonable cost'

KUCHING: Housing Minister Dato Sri Abang Johari Tun Openg wants housing developers to play a role in modernising the lifestyle of the people of Sarawak, but not by burning a hole in their pockets. "We should give people a new lifestyle at a reasonable cost and in the reach of our common people," he said, believing that the happiness of people with their lifestyle could contribute towards the progress of the State. "What is important is that we change the whole industry. Our products must be of standard; we must have developers of standard; we upgrade the infrastructure and at the end of the day we deliver good products to the people. People will be happy and the nation will continue to be strong." Johari said this yesterday at the signing of master agreements between ASSAR Chemicals Engineering Services Sdn Bhd (ACES) and members of the Sarawak Housing and Real Estate Developers' Association (SHEDA), which also launched its Code of Practice (CoP) at the same function. Johari considered the signing of the agreements for the provision of ACES' ASSAR prepaid system (APS) for piped-in gas in new housing projects, and the launching of the CoP as a step into a new dimension in housing development in Sarawak. The CoP, he said, had enabled the housing industry to become self-regulatory, much like lawyers and their Bar Council. He emphasised that developers had an obligation to provide the best practices and products to buyers. "I think this CoP is the first one for developers in Malaysia, and I understand that SHEDA's counterparts in East Malaysia is asking for a copy of the CoP," said Johari. He conceded that when he was appointed to the Housing portfolio, he had found the ministry to be a "problem ministry", and though much had changed in the last few years he was confident that SHEDA's CoP would further improve the housing industry, particularly in tackling problems like abandoned housing. On the APS, Johari thanked ASSAR Senari Group of Companies and its subsidiary, ACES, for working closely with his ministry and its Housing Development Corporation (HDC). He said the APS was a modern convenience that would improve the lifestyle of the people through economical means, and he looked forward to exploring its uses in affordable housing. He said he was looking into installing a water-cooling system in affordable housing and together with ASSAR and HDC, they were now calculating the cost of installing the system. ACES yesterday signed four agreements with SHEDA members and handed out letters of intent to 20 others. ASSAR Senari Group of Companies chairman Tan Sri Datuk Amar Bujang Mohd Nor said the APS offered a sophisticated, safe, convenient and secure prepaid piped gas at an affordable price for modern living. "With the APS you don't have to worry about running out to buy gas, or carrying the gas cylinders up staircase or strangers coming into your homes to install the cylinders. We hope that APS will be perceived as a necessity in daily life," he said. Bujang announced that all s developers who signed the a agreement yesterday would get a 10 per cent discount on all APS equipment supplied to them. He said that with the signing of the agreement, SHEDA members would install the APS in their new projects subject to the suitability of the project. Also present at the function yesterday were HDC chairman t Abdul Wahab Aziz, Daya a Perumahan Sdn Bhd chairman Dr Abdul Rahman Junaidi, Housing Ministry Permanent Secretary Abang Affandi Abang Anuar, SHEDA president William Wei and ASSAR Senari Group of Companies CEO Syeed Mohamad Russien.

Source from: The Borneo Post, 2007-04-21 Author: Raynore Mering

Big market for student hostels

TOKEN OF THANKS: RHB Bank Berhad's head of strategic programmes, planning and projects division and head of East Malaysia and Brunei, Datuk Ahmad Ibrahim (centre) present a souvenir to Johari while Sheda president William Wei (left) looks on. KUCHING: The government and property developers have to form more aggressive strategies this year to deal with a potentially easing property sector, with student hostels for institutes of higher education high on the list of potential new markets, said Minister of Housing Dato Sri Abang Johari Tun Openg. Speaking at the Sarawak Housing and Real Estate Development Corporation (Sheda) "Sarawak Property Report/Market Outlook 2007" yesterday, Johari reminded developers not to jump into new projects with a "herd mentality", which was typical in Asia, without conducting market research or studying other lucrative opportunities. Citing strategic examples from Australia, Johari said developers erecting apartment buildings should design the buildings in such a way to allow conversion to student hostels. He foresaw a jump in demand for student housing for those studying at Swinburne, Universiti Malaysia Sarawak (Unimas), and Sarawak Biodiversity Complex. "We have to be more aggressive in strategic formulation this year ... developers must find new market opportunities," he said, adding that working and completing infrastructure - such as nearby schools, transportation services and utilities - was also extremely important to the success of housing projects. As for government action, Johari said the plan was to attract more overseas students to come to study here at the existing institutes of learning and the Sarawak Biodiversity Complex, which would in turn increase the population and market demand. Meanwhile, this year property prices for prime and up-and-coming residential areas are expected to remain stable or to increase marginally while prices overall are not expected to come down anytime soon, according to Wong Ing Siong, managing director of CH Williams Talhar Wong & Yeo Sdn Bhd. He predicted that the public could expect a continued slack in sales performance, fewer new launches, more re-launches and more promotional packages as developers try to recoup and sell excess units in the face of short-term economic fluctuations and the uncertainty of oil prices. "Oil analysts have predicted that by the year end, oil price could rise to near $100 per barrel... and to $150 per barrel within the next ten months. High levels of non performing loans (NPL) and consumer credit default will also caution banks to be more selective in lending," he said. On the upside, low-medium-cost and medium-cost housing was likely to remain in good demand, while developers are advised to identify potential areas and build up land banks for the future, which holds good long-term prospects. "Long term prospects are good due to a young housing market full of potentials... growing population, increase in households and improved wealth and lifestyle," he said. Interest rates would be expected to remain at the current level of base lending rate of 6.75 per cent for this year, while the takeoff of the Ninth Malaysia Plan anticipates funds pouring in for infrastructure, utility and rural development for Sarawak, and not forgetting buoyant consumer price index and good timber prices in the world market, he said. Sarawak's property market demand for low and low to medium-cost housing from 2007 to 2025 is said to be 15,200 units every year, with some 5,000 in residential areas of Kuching, he said

Source from: The Borneo Post, 2007-03-02 Author: Jamie Wang