Lowyat.NET: Latest topics by ipins

Second bridge setting stage for property 'boom'

ipins — Mon, 10 Feb 2014 10:56:34 +0800

I think this is open secret (or not a secret anymore...). But anyhow, this news is for the latecomer.

QUOTE

THE expected opening of the Second Penang Bridge in the first quarter of this year is creating a buzz in the property sector, with the potential entry of new players and growing interest in areas close to Batu Kawan and Batu Maung, which are the landing points for the bridge on the mainland and island, respectively.

The buzz is driven by the better connectivity and access to property developments that were once deemed far away.

Apart from Batu Kawan and Batu Maung, which are yet to be developed to their fullest potential, locations further inland on the island, like Sungai Ara, Teluk Kumbar and Gertak Sanggul, will also appeal to developers and investors.

The spillover effects from the opening of the new bridge are expected to enhance the appeal of Mah Sing Group Bhd's Southbay development at Batu Maung, which is a mixed project with retail shops, high-end residential suites, resort bungalows and three-storey super link houses.

On the mainland, development is likely to be accelerated in areas such as Sungai Bakap, Nibong Tebal, Bukit Tambun and Batu Kawan, which is known for the state stadium and houses developed by the Penang Development Corporation (PDC).

Landowners in areas on the mainland close to the bridge include Asas Dunia Bhd, Tambun Indah and PDC.

New entrants include Aspen Vision Sdn Bhd, which is partnering Ikano Pte Ltd to bring the first Ikea store to the northern region.

Ikano is the franchise holder in Southeast Asia for the Swedish home furnishing store.

The entry of Ikea is bound to fast-track Batu Kawan's development and boost the retail and tourism sectors. Aspen-Ikano Sdn Bhd will carry out a mixed-development project comprising offices and residences on a 99ha site.

The land, which is strategically located at the landing point of the Second Penang Bridge, will be developed over 10 years.

It will also include an Ikea store and a shopping mall.

Eco World Development Group Bhd is also eyeing a piece of the action in Batu Kawan. It is believed the group will emerge as the biggest landowner in Batu Kawan if it wins a bid being carried out by state-owned PDC.

The company is said to be eyeing a 190ha plot there. If it wins, a mixed-development project and a golf course are likely to materialise.

Bidding for the land is rumoured to open at RM45 per square foot.

Its location on a hillock close to the landing point of the bridge will serve as a bonus.

Commercial land in Butterworth is currently tagged at between RM120 and RM150 per sq ft and developers often find themselves constricted by surrounding developments, especially brownfield developments.

The open space at Batu Kawan and its surrounding areas will appeal to those looking for greenfield areas and allow for better planning of satellite townships and retail and recreational spaces.

While hopes are high that the opening of Southeast Asia's longest bridge (at 24km) will ease traffic congestion on the first Penang Bridge, property developers and buyers will now be spoilt for choice as they look to what were once less-than-fashionable residential locations.

Second bridge setting stage for property 'boom'

Where and how can I make fast money?

ipins — Mon, 10 Feb 2014 10:50:01 +0800

QUOTE

I HAVE often been asked this question by young working adults: “Where and how can I make fast money?”

My usualreply comes in the form of another question:“Are you also willing to lose it as fast too?”

Making ‘fast’money doesn’t last.Think about it.

How many times do gamblers put backtheir winnings into the gambling table only to find that they lose everything they have won and more?

Even if it isn’tlost on the same day,over time, gambling is a zero-sum game.

There is no difference in trading or speculating on risky investment instruments if you are not trained to do the job or you are not doing this on a full-time basis.

Think about the last time you made good money from a stock investment – what was the next thing you did?

Plough everything back and maybe more into another stock tip? If you are not careful, after each “winning investment”, the capital invested into the next instrument becomes larger and larger until a bad move wipes away everything including profits from earlierinvestments.

There are no fast ways to make money but there are slow and sure ways that work.

Investing in a portfolio with the right asset allocation foryour age and life goals is a great way to start.

Check that your portfolio has a right balance between liquid and illiquid assets.
Owning too many illiquid assets (e.g. real estate) can put you or your beneficiaries in a cash-tight
situation which can be financially draining on you in times ofslowerdemand forsuch assets or when borrowing costs escalate, assuming your asset is leveraged.

Annually reallocate the profits you make from your plan. Don’t plough them back into the same instrument.

Place them into an asset class which is under-allocated or utilise the profits to average down on otherinvestments you know eventually will make a come-back.

Some of my retired clients use them to fund their annual holidays!

If you’re still wondering where you can begin as an investor, begin by having an investment plan.

Don’t go bungee jumping when you’re notsure if your heart (and money) can take it.

Discuss this with your financial planner first and stay patient with your plan.

[THESTARONLINE]Where and How I can Make FAst Money

Prices increase over time, Govt to ensure people c

ipins — Mon, 10 Feb 2014 10:44:16 +0800

QUOTE

IT must be understood that prices generally increase over time. This is because of two basic reasons – as populations and living standards rise, there is greater demand for goods and services. The other is when input costs go up for various reasons.

When the Government decided to rationalise subsidies and move towards market pricing for certain necessities, we knew that price increases would be inevitable. In this context, our concern is to ensure that the price increases are not too high and can be absorbed by the rakyat.

What then is the yardstick that we use to measure price increases? Is it the anecdotal experience of individuals who complain that the prices of particular products have gone up or do we do this scientifically?

The latter tends to be more reliable. I am aware that many people will criticise the existing consumer price index or CPI as not reflecting price increases. But really, there is nothing better and more scientific than that to measure price increases.

Let me explain why. The Department of Statistics has followed international standards in measuring price increases systematically and scientifically for many decades now.

Basically, consumption patterns of households are established through surveys and weightages are given for various items of expenditure such as food, transport, clothing, accommodation and such. The weightages are publicly disclosed and changed when necessary.

This is done at town, state and national levels by monitoring prices of 800 items across 30,000 outlets forming 178,263 data points every month. From this, the index is constructed and the overall price movement for the average household is calculated as measured by the change in the CPI.

It is also possible to see how the components of the CPI including food and transport have changed. It is a transparent process and anyone who is interested can see for himself how the entire CPI works.

In 2013, the average Malaysian household experienced a price increase or an average inflation of 2.1%. The inflation rate is derived from the CPI which uses a comprehensive data gathering method as mentioned earlier. However, do keep in mind that it is an average rate and depending on your consumption patterns, which are influenced by a multitude of factors, inflation impact can be different from household to household.

Over the last five years, Malaysia’s inflation rate seldom went above 3% on a yearly comparison basis and it is often much less than that, showing that inflation over the years has been well managed, making us among countries with low-inflation in the world.

Compared with other Asean countries, inflation in 2013 was higher in the Philippines (4.1%), Indonesia (8.4%) and Vietnam (6%) but Singapore and Thailand had lower inflation rates of 1.5% and 1.7% respectively.

Our low inflation factor puts us in a favourable position to implement measures to strengthen our economy including subsidy rationalisation to ensure our economy remains sustainable and able to face future challenges.

Yes, subsidy rationalisation would result in price increases but the question is how significant is the increase?

Let’s look at the December CPI. Compared with prices a year ago, prices in December were up 3.2%, definitely higher yes, but not anywhere near the alarming levels that some sectors are claiming they are at. Furthermore, figures from the Domestic Trade, Co-operatives and Consumerism Ministry show that whilst there have been price increases for some items, prices of other basic items monitored went down in December compared with November 2013 (see charts).

Even so, the Government recognises that it is necessary to keep a lid on prices. We have just concluded a multi-agency lab to look at measures to control prices and will be proposing measures to the Cabinet in six key areas – food, fuel, electricity, housing, tolls and public transport.

The Government is engaging the public and special interest groups in these efforts.