Malaysia needs to produce more houses to achieve 20/20 by 2020

KL to rank 20th Most Competitive and 20th Most Livable City by 2020

AS I walked the streets in Melbourne, people are either taking pleasure in their daily activities or catching up with their friends. More importantly, they are enjoying an abundance of economic and lifestyle opportunities, supported by their affordable housing prices and convenient transportation. It comes as no surprise that the city has been ranked as the world most livable city by The Economist for years.

Melbourne tops the list as the most livable location, according to a survey of 140 cities conducted by the Economist Intelligence Unit (EIU).

For Malaysians, the good news is, Kuala Lumpur ranked second in South-East Asia after Singapore on the same list, while the challenging part is we were at No. 77 in the world ranking, according to the survey last year.

In terms of competitiveness, the World Economic Forum (WEF) has ranked Malaysia as the 24th most competitive nation among 148 countries in its Global Competitiveness Report 2013-2014. Under the Economic Transformation Programme (ETP), the Government aspires to elevate Kuala Lumpur to be the top 20 most economically dynamic cities and top 20 most livable cities by 2020.

To realise these goals, we need to gear up our efforts in building both the hard and soft infrastructure of the country. And if we are to be a truly developed nation, one of the most critical criteria is to have more homes, as the nation’s housing needs must first be addressed to ensure quality living.

Let’s take a look at how developed nations house their people. Take Australia as an example, where four of its cities, i.e. Melbourne, Adelaide, Sydney and Perth, ranked in the top 10 most livable cities as measured by the Global Liveability Survey in 2012. Australia has a population of around 22 million living in 9.1 million homes, according to its census in 2011, which means their average person per household is 2.5.

Another developed nation in Europe, United Kingdom, has a population of 62.7 million people and number of homes is approximately 25 million, which also works out to have an average of 2.5 persons per household.

In Malaysia, while our population is about 28 million, we only have about 4.6 million homes, according to National Property Information Centre. This is equal to 6.08 persons per household. For us to catch up with Australia and United Kingdom which have an average of 2.5 persons in a household, we would require a total of 11.3 million homes in our country, which is a 250% increase from what we have currently!

However, at our current housing production of about 100,000 homes a year, it would take us 67 years to catch up with the benchmark displayed by these developed nations, assuming there is no additional increase in population.

The statistic above paints a picture of the fundamental required for a developed nation. As a developing nation, the Government and the relevant private sectors need to find ways to grow the number of homes in Malaysia. We are in need of more housing especially when the Government aims to move our country towards developed nation, and to grow the population of Greater KL from 6 million people to 10 million by the year 2020, which would put further pressure on the housing market in urban areas.

Currently, production has not been able to keep up with demand and this has pushed up housing prices. Having ample supply is the only long-term sustainable way to keep housing affordable. The Government needs to streamline the delivery system to increase the number of homes built every year, instead of stifling the supply which also include the cooling off measures which may eventually lead to higher prices due to inadequate supply.

Imagine if we are having 11.6 million houses today instead of 4.6 million, our house prices would be more affordable due to ample supply. The bottom line is we need more houses, especially affordable houses. It will help in the long run if the authorities can find ways to encourage housing supply, and this include putting off cooling measures on the property industry which only work in the short run as shared in my last article “Cooling Off Measures Choke Supply”.

More production of houses will make prices more affordable. And, if the Government can further support the housing needs with infrastructure including having a good public transportation system, the aspirations of making Kuala Lumpur the top 20 most livable and most competitive cities in the world can become a reality by 2020.

FOOD FOR THOUGHT BY ALAN HONG KOK MAU
FIABCI Asia Pacific chairman DATUK ALAN TONG has over 50 years of experience in property development. He was FIABCI World president in 2005/06 and was named Property Man of The Year 2010. He is also the group chairman of Bukit Kiara Properties.

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Prevent ATM thieves and cyber crimes on the rise

Banks to arm machines with ink bombs to stain stolen notes

PETALING JAYA: Thieves who rob automated teller machines will be left with worthless pieces of paper if a Bank Negara proposal is put into place. Dye bombs are to be placed in the ATMs and if anyone tampers with the machines, the “bomb” goes off, leaving the notes stained in red and easily recognisable as stolen money.

Bank Negara, in its guidelines on Dye-Stained Banknotes dated Aug 26, is calling on both banks and Cash in Transit Companies to consider using the currency protection device (CPD) to deter ATM theft.

Local security company Extro Code Sdn Bhd demonstrated yesterday a CPD or dye pack which is already available in the market.

Its technical director Mohd Zaki Sulaiman said that once installed, the dye pack would be triggered when someone tries to break into the ATM.

“The device is like a smoke bomb which releases the ink onto the stacks of banknotes in the ATM,” he said.

Mohd Zaki said there’s no actual explosion but there is some heat when the CPD is triggered.“The actual triggering mechanism is a trade secret,” he added.

He said the ink called Disperse Red 9 was not harmful. He said the ink was imported but the actual CPD was developed and produced locally.

Mohd Zaki declined to reveal the cost of each dye pack and the installation cost. “Who pays for the device will depend on Bank Negara and the banks,” he said.

He said there are four ATM providers in the country but installing the dye-packs in the different machines should not be a problem.

The Bank Negara guidelines state that the CPD would emit a bright coloured dye by smoke, liquid or any other agent to stain the currency in the event ATMs are broken into.

This will enable authorities and the public to easily identify the defaced stolen currency and render them unfit for use.

The guidelines also sets out conditions under which these banknotes will be replaced. Among them:

• > The ink has to be indelible by water, fuel, gas, bleach and detergent.
• > It must be traceable to the ATM, to assist police investigations.
• > It must stain at least 10% of each bank note.
• > It can be detected and rejected by banknotes authentication machines used by banks such as Cash 

Deposit Machines. >It must be non-hazardous and non-toxic.

If banks retrieved the dye-stained currency, they can submit the banknotes to the central bank for assessment.
Tellers will also be trained to detect these banknotes.

The public and retailers will be advised not to accept dye-stained banknotes as they are likely to be stolen.

These measure, Bank Negara believes, will reduce ATM robberies.

In the United States, banks have dye bombs in vaults and any unauthorised person who tries to remove any money will trigger the bomb, leaving all the money – and the robber – stained in ink.

- Contributed by NEVILLE SPYKERMAN  neville@thestar.com.my

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Cyber crimes on the rise - millions of ringgit being lost annually to scams

 

Public awareness: (From left) Ambank deputy managing director Datuk Mohamed Azmi Mahmood, Khalid and AmIslamic Bank Berhad CEO Datuk Mahdi Morad at the launch of the Scam Alert campaign in Bukit Aman 

KUALA LUMPUR: Fraud and cyber crimes in the country have risen unchecked due to the lack of public awareness, while victims are hesitant to report the crime, the police said.

Millions of ringgit have been lost annually to crimes like sms scams and parcel scams, which have mostly gone unnoticed in the public eye.

In a bid to stop such crimes, the police has launched an awareness initiative on the various types of scams in the country.

Inspector-General of Police Tan Sri Khalid Abu Bakar said the initiative, under the National Blue Ocean Strategy, comprised cooperation with the Association of Banks in Malaysia (ABM) and the Association of Islamic Banking Institutions Malaysia (AIBIM).

The public would be informed and educated on the different types of fraud and cyber crime scams being used by today’s criminals.

“We are posting a list of the various methods and modus operandi used in these scams at our official police website at www.rmp.gov.my.

“This will be linked to the websites of all banks in the country so that anyone can easily access the information which will be regularly updated,” he said after launching the initiative at Bukit Aman yesterday.

Khalid said RM98.6mil in losses was recorded last year in cases involving cyber crimes, including Internet banking fraud as well as sms and parcel scams.

“So far this year, such losses have reached RM80.7mil, which shows that such cases and losses are increasing,” he said.

He added that losses to sms scams had jumped from RM5.8mil last year to RM39.2mil so far this year.

- The Star/Asia News Network

China's steams ahead; Reforms enter critical stage

Industrial Output growth at quickest pace in 17 months

China’s industrial output grew at the fastest pace in 17 months in August and the broadest measure of new credit almost doubled from July as a recovery in the world’s second-largest economy gains traction.

Factory production rose 10.4 percent from a year earlier, the National Bureau of Statistics said in Beijing today, Aggregate financing was 1.57 trillion yuan ($257 billion), the central bank said, topping the median analyst estimate of 950 billion yuan. UBS AG said China’s liquidity and credit squeeze appears over, while Societe Generale SA said corporate and local-government debt is rising from already alarming levels.

Premier Li Keqiang said today that August data show a recovery trend, after the government used measures from tax cuts to extra spending on railways to defend the year’s 7.5 percent expansion goal. As Communist Party leaders prepare for a November meeting to discuss policy reforms, Li said that industrialization and urbanization will fuel growth, the official Xinhua News Agency reported.

“The government growth target appears within reach, which reduces the chance of stimulus and allows the government to focus on reform,” said Ding Shuang, senior China economist at Citigroup Inc. in Hong Kong.

The benchmark Shanghai Composite Index rose 1.2 percent to the highest close since June. The yuan was little changed at 6.1200 per dollar.

The gain in output compared with a median forecast of 9.9 percent in a Bloomberg News survey. The government doesn’t release separate industrial data for January and February, which are distorted by the Chinese New Year holiday.

‘Downside Risk’

“If credit growth picks up persistently from here, China’s current growth recovery may well last a bit longer and go a bit further,” said Yao Wei, China economist at Societe Generale in Hong Kong. “However, that only adds to the downside risk afterwards, as the leverage of Chinese corporates and local governments keeps rising from the already alarmingly high level.”

Industrial production topped all 45 analysts’ estimates in a Bloomberg News survey, with projections ranging from 9.2 percent to 10.2 percent, following a 9.7 percent gain in July. Thirty-nine of 41 industries reported growth, including a 13.6 percent gain in ferrous metals and 12.3 percent in chemicals, according to the statistics agency.

Steel production rose 15.6 percent in August, up from 10.9 percent in July, and electricity output expanded 13.4 percent, compared with 8.1 percent the previous month.

Retail Sales

Retail sales advanced 13.4 percent, while fixed-asset investment excluding rural households increased 20.3 percent in the January-August period, both topping estimates.

The median estimate for retail sales was a 13.3 percent advance after 13.2 percent in July. Fixed-asset investment was projected by economists to rise 20.2 percent in the January-August period, after a 20.1 percent gain in the first seven months of the year.

A separate report today showed China’s passenger-vehicle sales gained the most in four months in August, led by sales of sport utility vehicles. Wholesale deliveries of cars, multipurpose and sport utility vehicles climbed 11 percent to 1.35 million units, according to the state-backed China Association of Automobile Manufacturers today.

China’s exports rose 7.2 percent from a year earlier, the General Administration of Customs said Sept. 8. That exceeded the 5.5 percent median estimate of analysts. At the same time, imports rose a less-than-estimated 7 percent from a year earlier, leaving a trade surplus of more than $28 billion.

Inflation, Stimulus

Consumer prices rose 2.6 percent in August, the statistics bureau said yesterday, leaving room for extra stimulus if needed. The producer-price index (SHCOMP) fell 1.6 percent, the least since February.

Premier Li, in an opinion article published yesterday in the Financial Times, said the economy “will maintain its sustained and healthy growth,” with expansion around a 7.5 percent “lower limit” intended to ensure steady growth and employment.

Goldman Sachs Group Inc. last week raised its estimate for China’s economic growth for the third and fourth quarters, citing improving global demand and a stronger-than-expected domestic industrial recovery. JPMorgan Chase & Co. and Deutsche Bank AG raised their growth forecasts over the past month, bolstering optimism that Li will meet the government’s target for expansion this year.

Analyst Forecasts

Analysts surveyed by Bloomberg News last month gave a median estimate for 7.5 percent expansion this quarter and 7.3 percent in the October-December period.

China’s top solar-panel makers are returning to profitability following two years of losses as higher demand and prices drive up margins. JinkoSolar Holding Co. last month reported second-quarter net income of $8 million, its first profit since the third quarter of 2011, as sales jumped 43 percent from a year earlier.

In other economies today, French industrial production unexpectedly fell in July from the previous month, while Italy released final figures for second-quarter gross domestic product that showed a deeper contraction than initially estimated.

- Contributed  by Bloomberg News

 Reforms enter critical stage, says Premier Li Keqiang 

Finance-sector restructuring poses the greatest challenges as drive moves into 'deep-water zone'

Premier Li Keqiang says Beijing's economic restructuring drive has entered a critical stage, with an overhaul of the financial sector one of the most important and most complicated tasks to be tackled.

Indicating concerns that the world's second-largest economy might decelerate too much as overdone, Li said the central government was confident it could meet this year's economic goals through structural reform, ruling out the need to significantly loosen fiscal or monetary policy to stimulate short-term growth.

Financial reform is an important part of economic system reform. It is a complex, systemic project

In his opening speech to the World Economic Forum in Dalian yesterday, Li also said the government would seek to identify the core issues in reforms, which, once implemented, could exert a major impact on the entire process.

"Financial reform is an important part of economic system reform," he said. "It is a complex, systemic project, and because it is such a complex, systemic project, it means China's reforms have entered a deep-water zone, or the most difficult phase." In the next stage, he said, the key was to stick to market-oriented principles. The government would "actively and steadily" push forward with interest rate and exchange rate liberalisation, promote the yuan's convertibility under the capital account, and ease barriers for new, smaller players to enter the state-dominated financial industry, he said.

The steps already taken by Beijing to stem a sharp slowdown in economic growth had had an effect, he said.

"Some people expressed concern about whether China's growth might decelerate too fast, as some other countries experienced, or even see a so-called hard landing," he said.

But Li said the economy's fundamentals were "sound" and its operations stable.

The mainland's economic growth cooled to 7.5 per cent in the second quarter, from 7.7 per cent in the first and 7.9 per cent in the fourth quarter of last year, hit by global headwinds and excess capacity at home.

Since then, Beijing has cut tax for small companies, boosted investment in railways in poorer regions, and raised spending on urban facilities, while maintaining its grip on credit growth.

Industrial output growth jumped to a 17-month high last month while export growth quickened, suggesting a solid recovery in economic dynamics.

Li also said that local governments' borrowings, highlighted by analysts as an area of concern for financial risks, remained "safe and controllable".

- Contributed by Victoria Ruan South China Morning Post

Premier Li Keqiang's Profile:

Li Keqiang, born in 1955, became China's premier in March 2013. Like ex-president Hu Jintao, his power base lies with the Communist Youth League, where he was a member of the secretariat of the league’s central committee in the 1980s and later in the 1990s the secretariat’s first secretary. His regional governance experience includes a period as vice party boss, governor and party boss of Henan province between 1998 and 2003 and party boss of Liaoning province beginning in 2004. He became vice premier in 2008. Li graduated from Peking University with a degree in economics.