Penang low cost housing gone awry?

https://youtu.be/oLDMm9NsLLs


https://youtu.be/tJG2cAQaJLQ


https://youtu.be/N_V48-7vG0c

Probe into housing bribery case

MACC investigating Penang rep’s father for allegedly soliciting money

GEORGE TOWN: The father of Sungai Pinang DAP assemblyman Lim Siew Khim is being investigated by the Malaysian Anti-Corruption Commission for allegedly soliciting money from applicants for low-cost and affordable housing.

It is learnt that MACC has begun calling up several people after a video clip purportedly showing Lim’s father, Keat Seong, was posted on social media on Sunday explaining to some people how to “cut queue” in the state’s housing schemes by paying RM260 for the application form and a few thousand ringgit to one “Uncle Lim”.

Penang MACC director Datuk Abd Aziz Aban could not be reached for comment but it is learnt that the commission had begun gathering information yesterday from the so-called victims, those featured in the video and several Gerakan leaders who held a Monday press conference on this.

Penang MCA deputy chairman Tan Teik Cheng said the case may just be the tip of the iceberg.

He said the Penang government should take action over the alleged soliciting of bribes by Lim’s father, a 68-year-old retiree.

“The state government proudly proclaims its ‘ Competent, Accountable and Transparent’ (CAT) policy, hence it should address the case instead of playing up the drama to divert public attention.

“After all, the demand by Penangites for low-cost housing is still high in view of the exorbitant property prices,” he said in a statement yesterday.

State DAP chairman Chow Kon Yeow has also posted on Facebook the photograph of headlines in three Chinese dailies and The Star, which all referred to Lim’s father.

The caption read: “We are politicians and public figures. What we do matters. Unfortunately, what our parents, spouses, in-laws, and even distant cousins do, also matters.”

Penang Gerakan Anti-Corruption and Land spokesman H’ng Khoon Leng said the party would be seeking an audience with the Penang Yang diPertua to ask for the setting up of a Commission of Inquiry into the matter.

State Housing Committee chairman Jagdeep Singh Deo said there was no need to form a commission as it came under the purview of the police.

By  Arnold Loh and Tan Sin Chow The Star

Lim clarifies video comment

DAP rep forced to explain alleged bribery video statement

https://youtu.be/rxtjM3qK8Eo


http://www.thestartv.com/episode/lim-clarifies-video-comment/

GEORGE TOWN: Sungai Pinang DAP assemblyman Lim Siew Khim has been forced to clarify her earlier comments on her father’s alleged corruption case involving affordable housing units after the release of a second video clip on the issue.

“I did receive a call from a youth leader from another party sometime last year but when I confronted my father, he denied any involvement,” she said after opening a Youth Empowerment programme in Sungai Pinang yesterday.

Last Sunday, a video clip purportedly showing Lim’s father, Lim Keat Seong, soliciting bribes to help obtain low-cost housing units in the state as early as June 2015 went viral after being posted on social media.

Siew Khim was then quoted as saying: “All this (in the video) was without my knowledge and I only knew about it on Sunday night.”

Now, a second video clip, which lasted about three minutes, was released yesterday.

This time it shows a screen-grab of a Whatsapp conversation between a mediator and a victim.

“I contacted her and gave her (Siew Khim) one day to reply and find ways for her father to return the money,” the mediator was heard as saying to the victim.

In another conversation, a man, who is said to be Siew Khim’s stepbrother Ong Hock Hin, was heard saying that his sister (Siew Khim) had asked for a meeting to be arranged with the aggrieved parties.

Siew Khim refused to comment on the contents of the second video, urging the person who released it to lodge a police report.

“Why release bits and pieces? They should report it to the police with their evidence,” she said.

Siew Khim also denied asking her stepbrother Ong to arrange for a meeting with any of the victims.

Asked why she only confirmed she had confronted her father when the second video surfaced, she said she could not remember it.

While her father has been remanded for seven days, Siew Khim was grilled for two hours by the Malaysian Anti Corruption Commission (MACC) on Friday.

When contacted, Penang MACC director Datuk Abdul Aziz Aban said he was not aware of the second video but would direct his officers to investigate it.

Siew Khim’s counsel Ram Karpal said it was an offence to withhold information on the case as it was now investigated by the MACC.

“I urge anyone with information on the matter to pass it to MACC,” he said in Air Itam yesterday.

Penang DAP chairman Chow Kon Yeow said the uploading of the two videos showed it was a politically motivated move against Siew Khim, the state government and DAP.

Source: The Star Malaysia4 Sep 2016By R. SEKARAN rsekaran@thestar.com.my

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Ti: DAP must live up to its own CAT tagline

Penang MCA: Address issue of alleged graft linking rep's father

Penang Gerakan wants probe on alleged graft involving low-cost housing


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Lessons from Penang affordable housing

AS we all know, affordable housing is the saving grace for the middle to low income group in our common dream to pursue the “roof over our heads”.

Most often, aspiring homebuyers are sandwiched between increasing property price and developers’ tendency to build high-end apartments especially in greater KL for the last decade.

The introduction of PR1MA and other affordable housing agencies by the federal government is aimed at addressing this gap and to promote better home ownership as part of the prime minister’s national transformation programme. Nonetheless, not many realised that affordable housing is also a state initiative whereby state governments are free to introduce affordable housing schemes given that land and development are within the exclusive power of the state under the Federal Constitution. For instance, Penang is fully behind the notion of affordable housing by placing their top priority on increasing homeownership ratio within the state.

Checking online, there are currently 29 affordable housing projects in Penang with 12 being developed by the state government and the other 17 by the private sector. Penang is delivering a commendable amount of affordable housing by trading plot ratio of built-up area in exchange for more units to be built.

The state government is constantly reviewing and updating the criteria for the purchase of affordable housing in Penang. A person who already owns a property can still purchase affordable housing in Penang provided the person can satisfy the conditions imposed.

For example, the house to be purchased must be of higher value than the one already owned.

In addition, for those who are not born in Penang, under the talented and skilled category, they may also purchase affordable housing in Penang provided they undertake to reside there for a minimum of five years. In short, affordable has become a driver for talent retention. This ultimately helps to upgrade living standard in Penang.

On the flip side, Penang has uncovered a problem. Those who are entitled to affordable housing may not qualify for financing, especially those from the lower income group as they are considered as high risk by banks.

Job and income security at this level are extremely vulnerable given the high cost of living that in effect reduces disposal income. Bank and financial institution are after all profit-making entities. Loan disbursements below a certain threshold amount does not always generate their desire margin. Many expiring home owners are left helpless.

While nothing is perfect, one can only achieve success through lessons learned along the way and from history. The federal government is aware of the high loan rejection rate. It has, therefore, provided a 10% loan guarantee and First House Deposit Financing to help purchasers with their downpayments. The “Rent to Own” scheme was also introduced to circumvent the stricter loan financing situation.

Penang has introduced a similar Rent to Own scheme. Under this scheme, the state government provides 30% of the home price so that the house buyer can seek a 70% loan margin.

PR1MA, on the other hand, is facing difficulties finding suitable land as land is state matter. There is also a tendency for the state government to allocate land for this purpose in areas they want to urbanise, but which are often far from amenities and transportation links.

We all know that to develop affordable housing is not the best commercial decision to make because profit margins are definitely lower. As such, we cannot expect private sector developers to always bear the cost.

Penang, on the other hand, is able to overcome this problem by reducing the development charges via an increase in plot ratio. This then attracts private sector developers to come in.

A recent survey conducted by PR1MA shows that buyers prefer to purchase residential projects close to schools, clinics and shops. They also prefer access to transportation. Penang is closer to achieving its objective in the affordable housing arena because it “focuses on the homeowners”.

Under the recently announced Penang Transport Master Plan, the state government is mulling over RM8bil worth of projects that will enhance connectivity.

The development of an underground tunnel from Gurney Drive to Bagan Ajam, Gurney Drive to Jelutong Expressway and an alternative road connecting Gurney Drive right up to Batu Feringhi will really improve connectivity.

Penang is ambitious in executing its affordable housing plans. It is also spot-on when it comes to addressing the different issues connected with this subject.

The banking sector must buy into it. Banking and financial institutions are governed by the fiscal policy of the federal government. Maybe some mandatory quota or corporate social responsibility initiatives can be imposed on banks to provide loans to deserving house buyers. So it is timely that Bank Negara has called for a comprehensive and carefully designed National Planning Policy to support the Government’s aim in delivering more social housing in its recently released annual report.

By Chris Tan

Chris Tan is the founder and managing partner of Chur Associates.


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Little by little, a little becomes a lot

NOW that Christmas, New Year and Chinese New Year are over, many of us have started to reconcile the amount spent for these celebrations.

Not surprisingly, many have underestimated the current cost of living and have therefore overspent.

Hence, it did not come as a surprise to me when I overheard one of my relatives saying that the price of an eight-course Chinese New Year package at the restaurant that she often frequents has increased by 15% from RM898++ to RM1,028++ within a year. Not only has the price increased, she also noticed the serving portions were smaller than the previous year.

The rising cost of living caused by the depreciating ringgit, hike in transportation costs, the goods and services tax implementation, etc, was the hottest topic of discussion during these festive gatherings. Among the various counter-measures, some young ones welcomed the option to reduce the Employees Provident Fund (EPF) contributions, citing that it would help relieve their burden.

The reduction in EPF contribution came about early this year when the Government announced that employees had the option to reduce their EPF contribution by 3% from March 2016 until December 2017 to spur economic growth and at the same time, put more money into the rakyat’s pockets. According to our Prime Minister who is also the Finance Minister, this move is expected to increase consumer spending by RM8bil a year.

It sounds good as we now have the option to have more disposable income. Yet, should we encourage spending or saving during this challenging time.

Before answering this question, let’s ask ourselves what we should do with the extra disposable income. Repay credit card instalments, go after items such as expensive household goods, electronic gadgets or gourmet food?

If we are not careful, we will end up spending based on our desire instead of necessity. Hence, having more money to spend is not necessarily good. It depends on how we plan our future finances, and whether we spend the money on “good debt” or “bad debt” as explained in my previous articles.

If we unnecessarily spend the additional income on luxury goods such as a new car which depreciates over time, we are practically paying for “bad debt”, as these items are liabilities instead of assets.

In contrast, if we convert the additional income into “good debt” such as investing in commodities/ shares or to fund our housing loan, we can enjoy the long-term benefits as the value of these assets will likely appreciate over time.

At a glance, 3% taken out from the EPF per month may not be seen as a lot. However, it will become a significant amount in the long term.

For an individual earning RM5,000 a month, 3% equals to RM150. As such, the total amount is RM3,300 for the duration of 22 months (March 2016 to December 2017). Assuming the average EPF interest rate at 6.5% per year (based on the dividend declared this year), the compounding rate for RM3,300 could potentially become RM23,190.64 after 30 years!

Therefore, unless there are really good reasons to use this additional disposable income, it is better to retain this seemingly small amount as retirement funds, giving its potential to grow significantly in the longer term. Besides, the savings in the EPF can also be withdrawn during rainy days to fund the payment for children’s education, purchase a new home and payment of medical expenses for treatment of critical illnesses.

At this testing time when many are faced with the burden of rising costs and economic slowdown, it is important to resist the temptation of instant gratification, be prudent in spending, and be able to differentiate between “good debt” and “bad debt” in making financial decisions.

For those who have yet to opt out from reducing the EPF contribution from 11% to 8%, it is important to use the additional money wisely so as to ensure that your retirement fund is not affected. Every ringgit saved or invested is essential in making a difference in our future financial position.

When I was a kid, my parents encouraged me and my siblings to save. Each of us would have our own piggy banks and they would continue to remind us about the beauty of saving. Until today, I still like this Malay proverb – ‘Sedikit, sedikit, lama-lama jadi bukit’ (little by little, a little becomes a lot).

Datuk Alan Tong has over 50 years of experience in property development. He is the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.

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A challenging year ahead

AS the Fire Monkey swings in to take its place, many have predicted this year as a challenging one. So, what’s in store for everyone in this particular year?

Many came to me for advice on how to deal with this challenging period. Frankly speaking, I am not a feng shui master or an astrologist who can somehow predict the future. Neither do I know how to read a crystal ball and tell you what lies ahead. Having been through a few round of recessions and bad times during my early days, I can, however, only share my own experiences and observations.

As shared in my last article “Lessons from my father”, I have learnt how to live frugally since young from my late parents. I recalled starting up my own architectural firm at the worst possible time. The year was 1964, and it was during the time of the Malaysia-Indonesia confrontation. The country was experiencing an economic recession and it is not hard to imagine how tough it was to make a living. I basically lived on “char kuey teow” as my lunch for two years! Being frugal and practising delayed gratification somehow helped me sail through that rough period.

While it is wise to spend prudently, it is even wiser not to be in debt during times of uncertainty. I read an article which highlighted that Malaysian household debt as of August 2015 was 88.1% of gross domestic product against only 60.4% in 2008. The figure was among the highest in the region. It is rather alarming considering most young people tend to be indebted with at least a car and a huge outstanding of credit card and personal loan repayment.

It is important not to put ourselves in a vulnerable financial situation, in order to face the challenges ahead. Most items purchased with the use of personal loan, credit card and hire-purchase are likely to depreciate over time. As a result, if repayments are not made on time or at all, these items with depreciated value becomes a loss. Such loans are then dubbed as “bad debt”. A “good debt” is one that brings returns. It is time to re-look into our debt categories and reallocate our resources appropriately.

Conserving funds, while important, is not enough to withstand the inflation impact. It is therefore crucial to invest to fight inflation especially monetary inflation (money printing) which is a real problem in today’s world economy and is currently also causing asset inflation to continue. It is difficult to know the best form of investment during uncertain environment. However, I believe each of us has areas of expertise, and we should focus on those areas.

If you are planning to own a property, a good inflation-hedging tool, do creative searching for your dream home.

Muhamad Azree Abdul Rahim, a 26-year-old Malaysian, solved his problem of owning a property by thinking-out-of-the-box. He turned a used shipping container into his home by taking a RM75,000 loan and buying a plot of 2,400 sq ft land some 25km from Shah Alam. He was able to build a decent, fully-functional home with a garden next to it. His unconventional way of building his own house without being manacled to a 30-year housing loan is something that we should learn.

While everyone would love to stay near to the city centre and preferably, own a big comfortable home, we need to be realistic in order not to be financially overstretched. Start with a smaller home, and buy a home that you can afford, not what you like. It is absolutely fine if you chose a house next to the last MRT station, far away from KL city centre, as long as you find it easy to commute. No point being near the city yet having to endure the daily routine of traffic madness and at the same time, forking out a large sum beyond your means.

In the 1986 recession (the worst recession that I could remember), I had a team of 20 sales team members. Instead of waiting for customers to drop by our office, we went door-to-door and street-to-street to look for customers. Imagine swimming against the current, you may feel very tired and exhausted, but at least you are few steps nearer to your destination and you become a much stronger person. Hence, building resilience and perseverance in weathering the storm during challenging times is just as important.

Back to the year of the Fire Monkey, I realised that there are similar characteristics that we can learn from those who are born in the year of the Monkey. According to Chinese zodiac analysis, monkey is the mnemonic symbol associated with intelligence, creativity, perseverance and flexibility. Perhaps, take the cue from the monkey and brave through this challenging year by applying some of its traits.

Land & Property Food for Thought Alan Tong

Datuk Alan Tong has over 50 years of experience in property development. He was the World President of FIABCI International for 2005/2006 and awarded the Property Man of the Year 2010 at FIABCI Malaysia Property Award. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.

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HOW SCIENTIFIC IS THE SCIENTIFIC SEVEN MINUTE WORKOUT?

A couple of years ago the New York Times wrote about a game changing workout that would get you fit in only seven minutes. Yes, rather than endure 30-60 minutes of moderate intensity physical activity most if not all days of the week, seven minutes every now and then was suddenly enough to cure that heart disease of yours. The strange thing was that the New York Times, a relatively reliable source, had claimed that the workout was scientific.

This contradicted everything I learnt during my seven years at university. Therefore, today I ask in an outraged, yet concerned voice: is the scientific seven minute workout actually scientific?

Why it might be scientific:

Well the seven minute workout was first brought to the light in an article in a scientific, scholarly journal in 2013. For those of you who don’t know, this is basically a book full of studies and scientific articles that nerds who like exercise read – I am one of these nerds. The article did a review of the scientific studies to date on high intensity interval workouts. At the end it outlined an extremely high intensity, bodyweight exercise regime that could potentially lead to results equivalent to hours of endurance and resistance training combined, based on said studies. This is all good, well and even awesome, but there are a couple of barriers before we can call the seven minute workout truly scientific.


The first is that the studies referenced in this article utilised high intensity training of longer durations. Essentially meaning there is no evidence from this article that seven minutes is long enough for a workout.

The second is that the authors of the article advocate performing the article two to three times, suggesting even they’re not sure whether seven minutes is enough.

The third and perhaps the final, is that they did not directly test the effects of their seven minute workout and workouts that only used a bodyweight circuit. That was until now……


Is it actually scientific?

Yes, the year of 2015 brought the first, and as far as I’m aware, only study directly assessing the effects of the seven minute workout. Nervous? I am.

The study had 96 university students, for eight weeks, perform either: 1. Their normal exercise regime; 2. Seven minute circuit workouts; 3. Four weeks of seven and four weeks of 14 minute workouts.

Improved muscular endurance (number of push-ups) in both the seven and 14 minute group was observed compared to the normal exercise group. The same was true for strength, but only in male participants. Finally, aerobic fitness was also assessed, but only found to have been increased in women in the 14 minute circuit training group.


Is it healthful?

The scientific seven minute workout is slightly healthful. Well, it’s probably better than doing nothing. It will likely improve your muscular endurance and perhaps strength – depending on what sex you are; however, it may not be enough to enhance cardiorespiratory endurance. Further, there are many other variables that exercise alters, that have not been assessed.

Based on the the paper I brought up initially, high intensity workouts of longer duration appear very effective, but to date there is no proof seven minutes is enough.

I hope this has been healthful! 

Isithealthful

I hold a Doctor of Physiotherapy, Bachelor of Exercise Science and am a qualified personal trainer. I have extensive clinical and research experience and a strong passion for all things health. This has driven me to write the blog: Is it healthful, in order to analyse sound scientific research to determine if a product, service or intervention is healthful, or simply a waste of money or time.

Science on why living near trees might improve your health!

Short ‘n’ healthful:

Recently I purchased a property in what can only be described as a tree lined street. Yes, I was finally living the the great Australian dream. Unfortunately not all shared my view.

In fact since this purchase, many have ridiculed me for buying close to, if not at the top of the market. Well, ridiculers it now appears the ridicule is on you. Yes, ladies and gentlemen, a new study has found that living on a block with more trees is the cat’s pyjamas for your health.


The study:

The study I refer to was conducted in the fine city of Toronto. The researchers looked at the density of trees in certain areas of the city and then had a look at health outcomes. It was found that living in a tree lined street was associated with fewer cardiometabolic diseases and perceived better health. Perceived better health is important as it is linked with later death and fewer illnesses, while not having a cardiometabolic disease is great for many obvious reasons. I should note that the study controlled for education level, income and age, meaning it was likely the tree lined street associated with the improved health rather than the aforesaid factors.



How many trees does my street need?

Interestingly, the study found the exact number of trees required to improve health. Ten trees or more in a block was found to improve overall health as much as earning $10,000 more a year would, or being a whooping seven years younger. If we look at cardiometabolic conditions specifically, having eleven trees or more in a block had a similar effect to having an extra $20,000 in annual income or being 1.5 years younger.



Why might it be good to live near trees?

Well, firstly it could just be an anomaly. Studies – ridiculous ones – have found an association between high increase consumption and a high murder rate. I can’t remember the last time I went on a murderous rage after eating some Ben and Jerry’s. Therefore, to say the results are certain, you really need to plant some trees in someone’s street and then analyse the effects on health.

Alternatively, it may be the physical result of reduced carbon dioxide or more oxygen being delivered by the tree. Or it could even be that the being around some nice looking trees then indirectly translates to improved health.

Is it healthful?

Based on some fairly weak, albeit interesting research, living near trees appears slightly healthful. To my friends who ridiculed me, look who’s laughing now – I’m officially seven years younger.

I hope this has been healthful. Your thoughts? Are you about to lobby your local council for a few extra pines.

I hope this has been healthful!

Isithealthful

I hold a Doctor of Physiotherapy, Bachelor of Exercise Science and am a qualified personal trainer. I have extensive clinical and research experience and a strong passion for all things health. This has driven me to write the blog: Is it healthful, in order to analyse sound scientific research to determine if a product, service or intervention is healthful, or simply a waste of money or time.