More properties to be auctioned next year

Dec 23, 2013 –

Next year’s hike in real property gains tax (RPGT) rates and the ban on Developer Interest Bearing Scheme (DIBS) will likely see more property being auctioned in 2014, according to National House Buyers Association (HBA) secretary-general Chang Kim Loong.

“I will not be surprised if there will be a lot of properties for auction next year. I won’t be surprised because a lot of people who bought into properties for investment, they are now caught out with RPGT and DIBS,” he said in a SunBiz interview.

He noted that in case the property market slows down and buyers who acquired properties with DIBS are not able to pay their loans, ending up with their property being foreclosed; these buyers will not be able to repay their debts even after their properties have been auctioned while banks will not be able to recover the loan’s full amount.

“Assuming there is a slow down in the market, do you think the bank will finance 100 percent of DIBS at RM600,000 for a unit that is actually priced at RM500,000 without DIBS? The banks will also not be able to recover the RM600,000 (after the property is auctioned off) because they hiked it up in such a way for interest purpose,” explained Chang.

Notably, the banning of DIBS including any of its permutation is expected to stabilise the property market as well as bring speculation to a more realistic level since property prices will now be more reflective of the market value.

“From the last discussion I had with the Valuation and Property Services Department, they said the market has slowed down to a more moderate level and they expect that there will be a saturation point next year,” he said.

“I hope it becomes a reality and to a certain extent, first time house buyers will be able to buy into properties.”

Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email


Malaysia’s strong economic strength endorsed by World Bank and Moody’s

KUALA LUMPUR: Malaysia’s strong economic and financial situation has been ratified by the World Bank’s Doing Business 2014 report and international ratings agency Moody’s Investors Service, according to Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah.

In the Doing Business 2014 report, the country jumped to sixth spot from 12th position in 2013, showing the Government’s commitment to enhancing the delivery system’s efficiency and transparency, he said when tabling the 2014 Supply Bill at the Senate yesterday.

In November, Moody’s upgraded Malaysia’s sovereign credit outlook to “positive” from “stable”, he said, adding that 2014 promised better global economic prospects, with Malaysia’s gross domestic product (GDP) projected to grow by 5% to 5.5%, from 4.5% to 5% in 2013 and the Federal Government’s revenue collection estimated to rise to around RM224.1bil.

“Taking into account the estimated revenue and expenditure, the Federal Government’s deficit will continue to decline to 3.5% of GDP in 2014, from 4% in 2013.

“This shows the Government’s commitment to continuing to further reduce the fiscal deficit to a lower level, thus strengthening the country’s finances,” he said, adding that private investment’s 16.7% contribution to GDP in 2013 was expected to expand to 17.9% in 2014. – Bernama

Are You The Fool At The Table?

Are You The Fool At The Table?

Steve Blank, Jun. 17, 2011, 8:30 AM 542

My friend Ben Horowitz and I debate the tech bubble in The Economist. This post is the “rebuttal” statement to Ben’s opening comments.
An edited version of this post originally appeared as part 2 of 3.  Part 1 is here.

My esteemed colleague Ben Horowitz essentially makes four arguments: 1) look at how relatively cheap Apple, Google and Amazon stock is compared to their growth; 2) Major technology cycles tend to be around 25 years long with the bulk of the purchases occurring in the last five-to-ten years. The major adoption wave for the Internet technology platform will hit in the next 8 years; 3) the economics of building Internet businesses has changed; 4) the markets are much bigger.

Therefore Ben concludes that boom is coming…and do you want to miss it because it has the possibility of becoming a bubble?

If this were a magic act, we’d suggest that Ben’s arguments are misdirection. To answer the question before the house, “Are we in a tech bubble?” Ben offers that as Apple, Google and Amazon survived the crash, we can ignore the fate of the thousands of failed public and private companies when the bubble burst in March of 2000. I believe the issue isn’t whether we’re on a 25-year tech cycle or that the next 8 years are really going to be great. The issue is whether the next 100+ tech IPO’s carried by this bubble will be worth their offering price in 8 years.

One of the least understood parts of a bubble is that there are five types of participants: Smart Money, the Shills, the Marks, the True Believers and the Promoters. Understanding the motivations of these different groups help make sense out of the bubble chart below.


Smart Money are prescient angel investors and Venture Capitalists who started investing in social networks, consumer and mobile applications and the cloud 3, 4 or 5 years ago. They helped build these struggling ventures into the Facebooks’, Twitters’, and Zyngas’ before anyone else appreciated these companies could have hundreds of millions of users with off-the-chart revenue and profits.

In a bubble the smart money doubles down on their investment in the awareness phase, but when it starts becoming a mania – the smart money cashes out. (Really smart money recognizes it’s a bubble and bets against it.) They manage this all with knowledge of the game they’re playing, but they don’t hype it, talk about it or fan the flames. They know others will.

The Shills are the middlemen in a bubble. They profit from the boom times. They’re the mortgage brokers and real estate agents in the housing bubble, the investment bankers and technology press in the bubble.  Since it’s in their interest to keep the bubble going, they’ll tell you that housing always goes up, that these bonds are guaranteed by a big bank, and that this tech stock is worth its opening price. All the stories peddled by Shills have at their heart why “it’s a new age” and why “all the old ways of measuring value are obsolete.” And why “you’ll be an idiot if you don’t jump in and reap the rewards and cash out.”

The Marks are your neighbors or parents or grandparents. They’re not domain experts. They know nothing about real estate, financial markets or tech stocks, but they don’t want to miss the  ”investment opportunity of a lifetime.”  They hear reassurance from the Shills and take their advice at face value, never asking or questioning the Shills financial incentives to sell you this house/mortgage/tech stock.  They see others making extraordinary amounts of money at the start of the mania (just buy a condo or two and you can sell them in six months.) What no one tells the Marks is that as they’re buying, the smart money and institutional investors are quietly pulling out and selling their assets.

The True Believers don’t financially participate in the bubble like the Marks (lack of assets, timidity, or time) but they could if they would. They have no rational evidence to believe, but for them it’s a “faith-based” belief. By their numbers they give comfort to the Mark’s around them.

Bubble phases

The Promoters are the ones who keep the bubbles inflated even when they know that the asset exceeds its fundamental value by a large margin. While Shills have no credibility, Promoters have “brand-name” credibility that makes the Marks trust them. What makes the role of the Promoter egregious is that they are a small subset of the Smart Money. They loudly tell the Marks and Shills that everything is just fine, enticing them to buy into the bubble, even as the Promoters are liquidating their own positions.

Investment banks who sold CDO’s (synthetic collateralized debt obligations,) in the financial meltdown and the mortgage lenders in the housing bubble are just two examples. Some investment banks actually bet that the very investments they were selling their customers would fail. There’s a special place in hell waiting for these guys (only because our political and financial regulatory system won’t deal with them while they’re on earth.)

To support his position Ben used a quote from Warren Buffett I wish I had found, “The only way you get a bubble is when a very high percentage of the population buys into some originally sound premise…that becomes distorted as time passes and people forget the original sound premise and start focusing solely on the price action…

The “facts” that Ben raises, “the size and scale of these new markets have never been seen before; some of these applications and companies will reach billions of customers, generate unprecedented revenues and profits,” are likely true. But they don’t support his justification of the bubble valuations we are seeing for companies filing for IPO’s (Pandora Media just priced its IPO at $2.6 billion dollars while admitting it will have operating losses through the end of fiscal 2012.)  But to support his position for future valuations Ben lists the low price/earnings ratios of Apple, Amazon, Google,  He argues that if we are in a bubble these companies ought to have their prices inflated as well.

It turns out that’s not how a bubble works. Bubbles attract Marks and Shills to new shiny toys, not existing ones…, Apple, Amazon, et al are not the current objects of desire of this bubble. The question is, are we in a new tech bubble? Do the new wave of social/web/mobile/cloud companies going public have valuations which exceeds their fundamental value by a large margin? (today and in the foreseeable future.)

In other words, “would you want your mother to buy these stocks to hold them – or flip them?”

Every bubble is a big-stakes game – played for keeps. In it the usual cast of characters appear; the Smart Money, the Shills, the Marks and the Promoters.

There’s a saying in Poker, “If you can’t figure out who the Mark is at the table, it’s you.”



Should you invest in a bumiputra lot?

Focus: Should you invest in a bumiputra lot?

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One of the issues always raised by house buyers in Malaysia is whether a particular property is a bumiputra lot or not. There seems to be a stigma attached to property labeled as bumiputra lot not just among the non-bumiputras who shun it in the secondary market but also from bumiputras themselves. Most property investors think that buying and selling bumiputra property is a hassle. It has its own procedures to follow and it takes longer to transfer.

What is a bumiputra property?
Before we even go into the definition of bumiputra property, let us see the definition of ‘bumiputra’ itself. The word ‘bumiputra’ comes from a Sanskrit word meaning ‚Sons of the Soil‘. There is no specific clause defining the word ‘bumiputra’ in the Federal Constitution of Malaysia, unlike the word ‘Malay’ which is defined in Article 160(2) of the Constitution as someone who professes to be a Muslim, speaks the Malay language, adheres to Malay customs and is domiciled in Malaysia. In Article 153 of the Federal Constitution, there is a quota set for Malays and natives of any states of Sabah and Sarawak in certain matters. This has been used to define the word bumiputra and relates to bumiputra lots in housing developments.
The quota for bumiputra property is imposed on housing developers but is rarely written on the individual title of the property. The housing developer will control any sale to the general public and make sure the quota imposed is met. Usually, a quota of 30 per cent of the total houses sold in the housing development is imposed on the housing developer to be sold only to bumiputra buyers.
Other than a quota on the number of houses sold, there is a special discounted purchase price with seven per cent discount to be given to any bumiputra buyers. There are states in Malaysia like Johor with bumiputra discount of 15 per cent. When you buy a bumiputra unit from a housing developer and get a bumiputra discount, your property is restricted from being sold to non-bumiputras in the secondary market.
Or is it really?
Malay reserve vs bumiputra lot
When it comes to Malay reserve property, there is no doubt about it. The property can only be transacted between two Malays. The Malay reserve property is even known as ‘red ink’ grant as there is a red label on such title with the word ‘Malay Reserve‚ in order to restrict any transaction. There is no such similar labelling on bumiputra property on the Sale & Purchase Agreement or its individual title.
The only evidence to show whether a property is a bumiputra lot or not is to find out whether the owner is a bumiputra or not. In the absence of such label on the individual title, it is at the discretion of the land office, when registering a transaction to determine whether the transaction at the secondary market is between two bumiputras. This is especially true when the property is a leasehold property requiring consent to transfer and to charge from the State Authority. It is important to justify the sale of your property if you are a bumiputra selling to a non-bumiputra.
In order to understand the working of bumiputra lot, let me give a few examples of property transactions I have done as a bumiputra myself.
I invested in a condominium in Sunway in 2004. I sold it in 2006 when I managed to find a non-bumiputra buyer for it. There was no clause in the Sale & Purchase Agreement (SPA) labelling the property as a bumiputra lot. When I drafted the SPA for the sale at the secondary market, I was required to get the consent from the housing developer which also managed the condominium (the law now doesn‘t require that kind of consent anymore). I was refused the consent by the management as they argued it may affect the bumiputra quota when titles are issued for the condominium. I finally managed to sell off the condominium when the management agreed with my argument that they only need to worry about the quota when the strata titles are issued years down the road.
In another case, I bought a single-storey terraced house as investment in Seri Kembangan in 2005 and sold it in 2009. The buyer was a bumiputra from Sarawak with a non-bumiputra‘s name. I was only allowed to transfer the property into his name after I attached his Amanah Saham Bumiputra book with my second appeal.
Nowadays, Selangor land offices allow the transfer of bumiputra property to non-bumiputras if the seller can show proof that he had advertised in the main newspapers offering the property for sale three times but to no avail. The advertisements must be 14 days apart from each other. This would constitute the proof needed to show that there were no bumiputra purchasers for the property, leaving the seller no choice but to sell to non-bumiputra buyers.
In conclusion, as there are so many bumiputra investors out there, thanks to more awareness about making money from buying and selling property, I think it is safe to say, there is no more stigma on investing in bumiputra property either as a buyer for the bumiputras buying from housing developer or as a buyer of bumiputra property from the secondary market. There is enough money circulating among the bumiputras from buying and selling of properties that a bumiputra property investor can make money by selling their property to another bumiputra or even to a non-bumiputra buyer. There is no good time but right now to buy and sell property whether you are a bumiputra or not. As an investor, I always believe property to be the best way to make lots of money.
Why not? I did.
Khairul Anuar bin Shaharudin is a lawyer and author of “40 More Questions You Should Ask Your Lawyer Before Buying A Residential Property in Malaysia”.

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房市快讯   作者:马来西亚房产网 来源 时间:2013-12-2 10:38:08

从新加坡至吉隆坡的高速铁 路,是马来西亚首相纳吉2011年10月宣布的总值4440亿美元的经济转型计划重点之一。日前,马来西亚首相署部长南茜苏克利表示,新马两国官员将在下 个月会面讨论新马高铁计划的评估报告书,讨论重点将围绕技术工程及法律课题,包括成本和财务及政策制定。






“从新加坡到马来西亚、到泰国等地通过高铁会方便很多,飞机容易延误,高铁快,可以拉近东盟跟中国的距离,做生意也比较方便。” 马来西亚林木生集团董事经理拿督林福山对《第一财经日报》记者表示。



有马来西亚房地产研究机构认为,今年,包括新马高铁在内的几大因素为马来西亚房地产带来活力和价值重估。在近期该区域市场发生投机活动之前,马新两地产 业价格差距700%,一旦高速列车落实,预计将拉低该项差距。马来西亚有望通过高铁计划扭转乾坤,借力快速发展吉隆坡、新山等重点城市,其投资前景亦受到 外国买家看好。





不过,拿督林福山认为,这些措施对中国买家的影响不会太大,即便最低价格门槛调高了50万林吉特,还是有人买。在拿督林福山看来,投资马来西亚房地产的 优势在于,马来西亚政策稳定,房子价格很便宜,跟中国内地、中国香港、新加坡比,价格仍然很低。另外,马来西亚地理位置也不错,中国坐飞机到马来西亚只需 三个小时,距新加坡、泰国都很近。


Super Hospital Project To Put UiTM On World Map

Super Hospital Project To Put UiTM On World Map

News Pic

UiTM Vice Chancellor, Sahol Hamid Abu Bakar. Pic: Noraini Ahmad
From Sharifah Nur Shahrizad Syed Mohamed Sharer

MONTREAL (CANADA), Sept 21 (Bernama) — Universiti Teknologi Mara (UiTM) will soon make a name and enforce its credibility on the international level through efforts to build a Super Hospital.

UiTM Vice-Chancellor Datuk Prof Ir Dr Sahol Hamid Abu Bakar said the university was ready to pioneer a hospital project.

“This project will place UiTM on the world map,” he told reporters after the signing of a partnership agreement between UiTM and McGill University Health Centre (MUHC) here on Monday.

The agreement will see both institutions exchange knowledge and expertise to develop a training hospital which provides the best and latest in world-class medical facilities.

A similar agreement will also be made in the near future between UiTM and two other international universities, namely Harvard University and John Hopkins Hospital.

At the ceremony, UiTM also signed an agreement with the Research Institute of McGill University Health Centre (RI MUHC) to obtain cooperation in the fields of cardiology, cancer and the healthcare of senior citizens, as well as exchanges of technical power, research and students from both universities.

“This project is based on a speech by the Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin at the last convocation ceremony, where he said UiTM should have a hospital which could not only promote medical tourism but also allow students to train and get experience,” he said.

Dr Sahol said with the project’s approval, UiTM’s Super Hospital, which was a project under the Faculty of Medicine, will be built at the campus in Puncak Alam, Shah Alam and become the first hospital in the country with Super Hospital status.

However, he said the project would be carried out in stages, according to the university’s financial capabilities, and was expected to be fully completed in 10 years.

“Although money is the primary obstructing factor, we will try to find other financial sources, including funds from the private sector, to work together on the project, he added.


末日博士警告 全球房市有泡沫化之虞–finance.html

末日博士警告 全球房市有泡沫化之虞

東森新聞東森新聞 – 2013年12月5日 下午8:04


  • 末日博士警告 全球房市有泡沫化之虞看相片末日博士警告 全球房市有泡沫化之虞

被 稱為末日博士的紐約大學教授羅比尼警告,全球有18個國家或地區正出現房市泡沫跡象,包括香港、中國及新加坡在內。擔心未來一旦泡沫破裂,傷害恐難想像。 羅比尼雖然沒有直接點名台灣,不過台北的房價痛苦指數卻在全球大城之中排名第10。就連財政部長張盛和也說,台北房市已達泡沫化指標,而央銀總裁彭淮南之 前也坦言,台北的房價實際上比東京更貴。

這是號稱全球最貴的豪宅倫敦的海德堡公園一號,對一般人而言遙不可及,房價驚驚漲高不可攀,全球許 多地方都有類似的問題,有末日博士之稱的紐約大學教授羅比尼最近撰文更點名全球18個國家地區,包括香港、中國、新加坡以及英、法、德、加拿大和澳洲的都 會區房價狂漲,房價所得比和房貸占家庭負債比偏高,羅比尼擔心房價持續走高,未來一旦泡沫破裂對經濟及金融的傷害難以想像。

羅比尼雖然沒有 點名到台北,不過一份調查顯示,台北的購屋痛苦指數全球排名第10,甚至超過被羅比尼點名的許多地方,財政部長張盛和在立院表示,台北市房價已達泡沫化指 標。而央行總裁彭淮南日前還痛批,台北房價比東京還高。央行總裁彭淮南:「人家在日本買30坪可以住30坪,在台灣買30坪只能住20坪,所以說用這個實 際能夠住的房價,單位除以房價來的話,台北房價比日本還高。」

官方喊打房,喊了好多年台北房價卻是愈打愈高,不過房市泡沫化不是一句警語而 已,美國在2008年曾經面臨次貸風暴,兩大房貸巨頭面臨倒閉危機,斷頭者欲哭無淚,市場一片恐慌殷鑑不遠。然而面對高不可的攀的房價,小老百姓恐怕是連 夢也沒有,而如果真的泡沫化,後果又是誰能承擔。