Case study 1: Intellectual property can be used as collateral soon

I bring up this article as one of my clientele which is a factory owner(currently in his capacity as Managing Director) would like to sell his business in paper pulp and tooling (as IP), and his factory as one entity.

This is a new venture for real estate and an in-depth study need to be conducted.

Sunday April 29,2012

KUANTAN: A valuation system is being drawn up to allow intellectual property (IP) to be used as collateral for business development soon.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said although IPs were a new source of income generation for the country, these had yet to be accepted as collateral by financial institutions.

“This is important because this type of financing plays a big part in business development. The Government realises this situation and is in talks with agencies to form an intellectual property valuation model for this purpose,” he said after the launch of the National Intellectual Property Day here yesterday.

Ismail Sabri added that the model, which would make it easier for the exploitation of IPs from lab to market, would benefit their owners.

“We hope financial institutions will support this initiative,” he said.

Developed countries, he added, already had IP valuation systems, which allowed properties such as films and songs to be used as collateral because of the value tagged to them. “It is still very early for us.”

Pahang Mentri Besar Datuk Seri Adnan Yaakob, who launched the event, urged IP owners to register their products in order to avoid these from being copied by others.

“Without registration, the products will be exposed to copycat risks by irresponsible parties. This will cause great loss to owners and their businesses,” he said.

Source reference link: http://thestar.com.my/news/story.asp?file=/2012/4/29/nation/11200121&sec=nation

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For Rent : 1 1/2 Storey Small/Medium Industrial, Penang MALAYSIA

Interested contact Vulcan Lau mobile: +6 016 451 1321 for private viewing.

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For Sale or Rent : 2-storey Commercial building

Land area: 2986 sq ft
Build up: 5798 sq ft
Facility: Building newly renovated/Showroom condition.
Location: Prime/Strategic in Georgetown, Penang MALAYSIA.
Type: Freehold

Asking: RM5,000,000.00

Those interested in renting could also contact Vulcan Lau mobile: +6 016 451 1321 for private viewing.

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Penang named most liveable city for second time

Published: Monday April 23, 2012 MYT 3:09:00 PM
Updated: Monday April 23, 2012 MYT 5:29:33 PM

By ANDREA FILMER

GEORGE TOWN: Penang has been named as the country's most liveable city for two consecutive years, Penang Chief Minister Lim Guan Eng said.

Quoting the annual ECA Location Ratings research, Lim said Penang had maintained its position as Asia's eighth most liveable city, while Kuala Lumpur had dropped from ninth to 10th.

"If we only beat them once, people may say it's a fluke. But we have repeated the feat this year.

"It's not a fluke, it's a fact," Lim told a press conference in Komtar here Monday.

He said listed criteria for the ranking included quality of living, climate, health service, isolation, social network and leisure facilities, infrastructure and political tensions.

According to the survey, Singapore maintained its grip on the top spot and also retained its global ranking as the number one most liveable city in the world.

Kobe, Japan stayed at the second spot of Asia's most liveable cities, followed by Hong Kong, Tokyo and Yokohama (tied at fourth), Taipei and Macau.

Seoul, that was ranked as Asia's 10th most liveable city in 2011, edged Kuala Lumpur to tie with George Town in this year's ranking.

ECA International, which carries out the location rating annually, is an international consulting firm that specialises in providing and developing solutions for the management and assignment of employees around the world.

Source reference link: http://thestar.com.my/news/story.asp?file=/2012/4/23/nation/20120423152457&sec=nation

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Deal-based websites – a new lease for properties?

Posted on April 20, 2012

Here’s a pop quiz: name the biggest online trend now. Twitter? Facebook? Google+? You may well be wrong, actually.

Check it's out...http://www.groupon.my/deals/national-deal/osk-property-holdings/716030336?nlp=&CID=MY_CRM_1_0_0_119&a=715827970

Deal-based websites like Groupon Malaysia, Dealmates, and Living Social are fast becoming a growing trend, especially catching on with young urban professionals based around the Klang Valley urban strip.

Click open any of the above websites, and there is bound to be a couple of deals which will seem irresistible to you – with up to 95% discounts for food, jewellery, bargain vacations and right up to baby bottles.

The best part about these deals is that what you see is what you get – there are no hidden charges (unless stated, which makes them “unhidden”) and the quality is never compromised.

Here’s the tricky part – can the property market and its developers play a role in this new business model?

Last week, OSK Property Holdings Berhad and Groupon Malaysia collaborated on an exclusive one-of-a-kind discount deal, where buyers pay RM500 for an RM8000 cash voucher, which can be redeemed for the developer’s latest premium property, Paragon @ Pangaea, a SOFO Suites development in Cyberjaya.

The developers have made it even more attractive, by making the cash voucher valid for the property’s downpayment, and providing refunds for buyers who are unable to purchase the unit of their choice or whose bank loans have been rejected.

Now, isn’t this a good way to spend RM500?

As of now, 14 people have bought the deal on Groupon’s website, and it can be considered quite a healthy number, judging from the fact that buying a property is not like buying a t-shirt – it’s a lifetime investment, and requires long-term commitment.

Discounts are always appreciated, and developers can really benefit from marketing their properties on such deal-based websites instead of only relying on mass media, as they tend to reach out to the right crowd and word-of-mouth will definitely spread the word through.

Social media will always remain relevant to today’s youth community and are recommended for every property developer, but deal-based websites provide a direct platform for them to actually see and purchase cash vouchers or coupons to buy their own piece of property – the kind of purchasing power any consumer will feel good about.

We think OSK’s plunge into the discount market will definitely stir some competition and inspire other developers to walk a similar path by making use of the myriad of deal-based websites frequented by Klang Valley’s yuppies.

It would be interesting to see if this latest trend manages to make a lasting mark on the online business-property relationship, like how the Internet became a platform to look for property years ago.

Below picture: Paragon @ Pangaea, OSK's Groupon pioneer

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Factory for sale at FIZ, Penang MALAYSIA.

Status Update: Sold.

This is urgent sale.

Land area: 1 acre (43,560 sq ft) inclusive of 15,500 sq ft empty space that can be developed.
Facility: Office and production area.
Lease: till 2052(still have 40 years)
Asking: RM5,500,000.00

Interested contact Vulcan Lau mobile: +6 016 451 1321 for private viewing.

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Hotel For Sale | For Sale By Tender : Resort Hotel at Batu Ferringhi,Penang MALAYSIA

- Tender document can be obtained at RM200.00 per copy.
- Land status : Freehold
- Location : Miami Beach
- Reserve price : RM88,000,000.00
- Room : 350
- Land Area : 2.7 acres or 10,926.51 square meter or 117,612 square feet
- Gross Area: 54,348.28 square meter 585,000 square feet
- Tender dateline : 18th May 2012 at 5pm.

International chain of hotels that would like to expand their operation in Penang, MALAYSIA are encourage to apply and purchase.

Private viewing of property could be arranged as it is basis.

Interested please call Vulcan Lau, mobile no: +6 016 451 1321.

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Malaysia | Govt may double minimum price of houses foreigners can buy :RM1mil floor price?

Tuesday April 10, 2012

By DANIEL KHOO
danielkhoo@thestar.com.my

RM1mil floor price?

KUALA LUMPUR: The Government is considering raising the minimum floor prices of houses foreigners are allowed to buy to RM1mil from the current RM500,000 in an effort to control the rise in property prices, sources said.

They said such a decision was “in the pipeline” and the implementation would be made by the economic planning unit (EPU) under the Prime Minister's Department currently headed by Minister Tan Sri Nor Mohamed Yakcop.

“From what I understand, these revised guidelines have been discussed at the ministerial level and should this be enforced, it will mean that foreigners will only be allowed to buy properties priced above RM1mil. For now, the base price is set at RM500,000 for foreigners. This base price is a bit low looking at present circumstances,” a government source who requested anonymity said.

“The current trend in the property market indicates that prices are still continuing to climb despite measures by Bank Negara to curb property prices from spiralling out of control. We need to act before it goes further out of hand,” the Putrajaya source added.

Another source said the revised guidelines would also consider a slightly lower base price threshold of RM800,000 for residential properties in selected economic corridors such as Johor's Iskandar Malaysia to ensure the development and success of these corridor hotspots.


“This base price will also be subject to reviews by the Government from time to time depending on the inflationary situation of the economy and to keep overall inflation in check,” the source said.

Deputy Finance Minister Datuk Donald Lim had recently told the press that the Government would take “strict measures” to avoid a US subprime mortgage financial crisis after average house prices jumped almost 7% in the fourth quarter of last year despite measures announced by Bank Negara to rein in property prices.

“The Government is worried about property prices causing a bubble and we don't want banks to overlend to the property sector,” Lim said.

Industry sources surveyed by StarBiz said foreigners that tend to buy properties in Malaysia were those from South Korea, Japan, China and Singapore.

“This move will give an advantage to locals, especially those in the middle-income category as locals will not need to compete with foreigners. I am not surprised by this move, but our agency has so far seen mostly people from China and Singapore buying properties above RM1mil anyway,” a KL-based licensed real estate negotiator who did not want to be named said.

“However, we may see fewer transactions from the Koreans and Japanese. Westerners such as those from the United States and Europe won't usually buy. They prefer to rent instead,” the real estate negotiator added.

Meanwhile, the implementation of the higher floor price is expected to have a minimal impact on the property market in Malaysia as official statistics show that only 2.4% (worth RM1.45bil) of transactions conducted in the residential sector last year were worth RM1mil and more.

The Finance Ministry's Valuation and Property Services Department Property Market Report 2011 released last week showed there were 269,789 residential property transactions worth RM61.83bil transacted last year, the highest recorded in the last five years.

“Both volume and value recorded double-digit growth of 18.9% and 22.1% respectively. The All House Price Index surged to 156.9 points in the fourth quarter (Q4) of 2011 against 147.2 points registered in Q4 2010,” the report said.

The report said that landed housing was on a “general upward trend” in Malaysia and also attributed the rise in property prices to the Sungai Buloh-Kajang My Rapid Transit project.

“Across the board, terraced houses in KL recorded increases of 8%-13%. Increased prices of landed houses on Penang island were apparent. The highest transacted price of two- and three-storey detached (houses) were at RM2.05mil and RM5.15mil respectively,” the report said.

Source reference link:
http://biz.thestar.com.my/news/story.asp?file=/2012/4/10/business/11075217&sec=business

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Internet mobile penetration in Malaysia | Business benefits for mobilecomputing

Date: 8 April 2012

Business benefits for mobile computing in Malaysia.

Source reference link:
http://thestar.com.my/news/story.asp?file=/2012/4/8/nation/11027755&sec=nation

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Tambun Indah developing five Penang projects valued at RM571m

Saturday April 7, 2012

By DAVID TAN
davidtan@thestar.com.my

GEORGE TOWN: Tambun Indah Land Bhd is undertaking five development projects in Penang with a combined gross development value (GDV) of around RM571.5mil this year.

The projects are the RM131.3mil Pearl Indah and RM180mil Pearl Residence 1 in Simpang Ampat; RM39.3mil BM Residence in Bukit Mertajam; RM41mil Carissa Villas in Bagan Lallang; and RM180mil Straits Garden in Jelutong on the island.

Group managing director Teh Kiak Seng told StarBizWeek after an EGM that with the exception of the Straits Garden project in Jelutong that would be launched in the third quarter of 2012, the construction for the other four projects had started.

“Both Pearl Indah and Pearl Residence 1 are in the RM2bil Pearl City project, where we plan to build some 5,600 landed residential properties and 1,400 commercial properties.

“The first two phases of the Pearl City project the Pearl Garden and Pearl Villas are 90% and 80% sold respectively. Some 41% and 28% of the purchasers for Pearl Villas and Pearl Garden respectively are from the island,” he said.

The funding of the projects would be through the issuance of 88.4 million rights issues of new shares that would raise RM44.2mil for the group.

The two-for-five rights issues, which were approved at the EGM and expected to be completed in June, would effectively increase Tambun Indah's share capital to RM154.7mil, comprising 309.4 million shares.

“We have a landbank of 625 acres, which has a GDV of RM2.8bil. We are constantly on the lookout for more land in Penang. We are also exploring land outside of Penang,” he said.

Teh said the Penang property market was expected to chart commendable growth in the coming years, as it had been identified as one of the world's top 10 most dynamic industrial clusters and contributed 28% or RM17.7bil of Malaysia's total foreign direct investment in 2010-2011.

“In addition, the Malaysia My Second Home initiatives over the past years have resulted in a spill-over benefit for Penang's property market,” he said.

“As for properties in Seberang Prai, we believe the prices will be well sustained, due to the completion of the second link in 2013, which will have a positive effect on properties in Batu Kawan and Simpang Ampat.”

The rising prices on the island were prompting many young families to explore properties in Seberang Prai for quality lifestyle at affordable prices, Teh added.

Teh(below): 'We are constantly on the lookout for more land.'

Source reference link:
http://biz.thestar.com.my/news/story.asp?file=/2012/4/7/business/11066286&sec=business

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Pinterest widget | Pinterest twitter | Social photo sharing | DIYPinboard | Social media involvement: Pinterest

Those interested in Pinterest could refer to: www.pinterest.com/VulcanLau

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10-20pc increase in house prices healthy, says Donald Lim

By Lee Wei Lian
The Malaysian Insider

KUALA LUMPUR, April 3 — Malaysia is not experiencing a property bubble and price increases of up to 20 per cent per year is acceptable, said Deputy Finance Minister Datuk Donald Lim today.
This comes as increasing numbers of Malaysians, especially city dwellers, have become concerned over the affordability of housing.

Lim said the government wanted to ensure healthy growth in the property market which would give better returns than money parked in fixed deposit accounts.

“An average increase in house prices of 10-15 per cent per annum is healthy as compared to fixed deposits in the bank,” Lim said in a press conference today. “For areas like KL, a 20 per cent increase is quite acceptable.”

When asked whether such a high annual increase in property prices is out of sync with annual income increases in the general population, Lim said that KL is still cheap compared to some of its Asean neighbours.

“We know at the moment that prices are low compared to Thailand and Singapore,” he said. “We are talking about the coming three to five years (for house price increases) after which there is a stabilising period.”

Lim said that the government was monitoring the situation and had taken pro-active steps to avoid a sub-prime crisis from happening in Malaysia.

“We will intervene when we find the figure (for property) has shot up too high,” he said.

He said, however, that one of the measures introduced last year to combat rampant property speculation — the increase of the real property gains tax (RPGT) from five to 10 per cent for houses sold within two years — had not met with stiff resistance.

“A lot of people find it (the increase in RPGT) reasonable,” he said.

Property prices in urban areas such as Penang and Kuala Lumpur rose by up to 40 per cent in 2010 fuelled by low interest rates and a surge in speculative buying, although prices grew slower last year due to dampened sentiment from tightening measures such as a hike in the real property gains tax for early disposals.

Some reports have also estimated that property prices jumped from 5.9 times income in
1989 to 10.9 times in 2010.

The Demographia International Housing Affordability Survey rates markets, whose property prices are 5.1 times median income or more, as “severely unaffordable”.

The House Price Index (HPI), as prepared by the Valuation and Property Services Department, rose 7.5 per cent in the second quarter of last year as compared with the same period in 2010.

For urban centres like KL, to which young working adults are gravitating, the HPI has seen a rapid increase since 2004, growing relatively slowly from 100 in 2000 to 108 in 2003, before rising sharply from 115 in 2004 to 167 in the second quarter of last year.

Lim said in a speech today that the overall HPI has increased 6.6 per cent to 156.9 in the fourth quarter of last year.

He said that the value of All House Price in Malaysia hit RM217,297 in the fourth quarter.

Kuala Lumpur had the highest All House Price at RM487,219 followed by Selangor at RM327,237.

While Asia appeared to have escaped the house price crash that affected the US and parts of Europe, some governments in the region took steps to cool the rapid increase in house prices in an effort to avert a property bubble.

The value of Singapore’s private homes suffered their first quarterly drop in nearly three years following government-imposed measures to cool the property market.

Advance estimates from the Urban Redevelopment Authority (URA) yesterday showed that private home prices fell 0.1 per cent in January-March as compared to the last three months of 2011.

Chinese Premier Wen Jiabao was also reported as saying on March 14 that home prices in the world’s second largest economy were still far too unreasonable and the Chinese government could not relax curbs on the property market as it could result in “chaos”.

Wen also said that reasonable housing prices should reflect personal income, investment and reasonable profits.

----------Vulcan agreed----------
HBA Secretary General Chang Kim Loong said in October last year that the increase of RPGT from five to 10 per cent for houses sold within two years of purchase would be meaningless to short-term speculators looking to flip houses for profit.

He pointed out that properties are typically not allowed to be sold during the construction stage, which takes two to three years, and therefore, raising the RPGT from five to 10 per cent for properties sold within two years would have little impact.

Chang said that under the revised RPGT, speculators could purchase properties from developers during a launch and flip the properties on completion after two years and would have to pay only the same existing five per cent up to the fifth year, after which all profits are not taxable.
----------Vulcan agreed----------

Source reference link: http://www.themalaysianinsider.com/mobile/malaysia/article/10-20pc-increase-in-house-prices-healthy-says-donald-lim/

Lim said the government wanted to ensure healthy growth in the property market which would give better returns than money parked in fixed deposit accounts.

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Eden Ferringhi, Batu Ferringhi Penang MALAYSIA

Double Storey Semi Detach @ Eden Ferringhi for sale.

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