2017 Home purchasing trends in Iskandar Malaysia

An analysis of latest transactions, top neighbourhoods and preferred residential products in Iskandar Malaysia:

Source: Google Maps

Highlights
• Terrace homes in Skudai, Kulai and Pasir Gudang showed impressive capital appreciation, recording above average figures of 9.4%, 13.1% and 21.5%, respectively.
• Asking rental yield for apartments appears promising amid a sluggish property market – the top 5 transacted areas provided monthly returns above 5%.
• Properties within the RM260,000-RM340,000   price range were most popular among purchasers – Which begs the question, is this the standard for affordable properties in IM?

Guide
• The period of evaluation is from April 2016 – March 2017.
• Terrace homes comprise of single, double and triple storey houses.
• The price of apartments vary across Johor, in most areas they consist of mid-priced units, ranging between RM150,000-RM300,000. However, apartments in newer areas such as Iskandar Puteri have higher than average selling prices.
• The data used to calculate asking median rent are obtained from iProperty.com.my listings. Only monthly rents within the evaluation period are used to determine the median – this final figure is then used to calculate asking rental yields in each area.
• The type of properties displayed in the “What were potential purchasers searching for” infographic is based on the search tab category in iProperty.com.my.

iPropertyiQ.com data showed that terrace homes appeared as the most transacted product in the landed residential category in Iskandar Malaysia (IM) while apartments were the preferred product among purchasers of high-rise residential units.

For analytical purposes, we will focus on these two products, of which key figures were extracted for the top 5 performing areas within the IM region, for terrace homes and apartments, respectively.

Terrace Homes

Top 3 projects in each area

image: https://focus-my.ippstatic.com/images/ea528b73-f15b-4a54-9f61-6c21226130ff.jpg

Source: iPropertyiQ.com

Save for Iskandar Puteri which suffered a slight drop of 0.7%, the other areas performed remarkably well in terms of year on year (y-o-y) capital growth. This positive trend is contrary to the public’s perception that property prices are devaluing, says Samuel Tan.

Skudai and Kulai are secondary towns within Greater Johor Bahru and have always been very popular among the locals. Price growths of 9.4% and 13.1% are not unreasonable and could be explained by the suburb effect – where locals and city centre folk are drawn to the cheaper housing alternatives available in these areas.

Meanwhile, the substantial appreciation of 21.5% seen in Pasir Gudang is mainly attributed to the mushrooming of new developments in the area, particularly the Eco Tropics project by EcoWorld and Mah Sing’s Meridin East township. These developers are offering housing concepts and products that are fresh and new to the region, at higher-than average price points – a lake garden community with Meridin East and Eco Tropics will be the first gated and guarded development in the Kota Masai area. These ‘new kids on the block’ will inevitably influence the secondary market and pull up its prices as well.

Tebrau is a very mature area – property prices there have been increasing steadily since 2014. It’s boom period kicked in earlier compared to other areas – hence, the smaller growth rate of 4.8% in the recent year. On the other hand, being a greenfield or new development, Iskandar Puteri is still in its ‘teething stages’ – with newly completed units coming onstream property prices are still adapting to market movements. Hence, the slight drop in property values is not alarming.

The rental yields ranging between 3.9% to 5.5% are commendable and appear attractive to investors as the returns are similar or higher than the current fixed deposit rates. In light of economic hiccups and market fluctuations, these healthy yield rates testify that real estate remains as a good investment vehicle.

Apparently, more people in IM are purchasing pricier properties. And yes, we have the data to show.

Top 3 projects in each area

image: https://focus-my.ippstatic.com/images/6bc54992-387c-401d-ad3c-251b7d8789c3.jpg

Source: iPropertyiQ.com

image: https://focus-my.ippstatic.com/images/0b74d10a-8d91-41e1-beff-bf2f54496a59.jpg

 

Samuel notes one common thread that runs across all these schemes – they are self-contained townships or something similar. Zooming into Iskandar Puteri, the top 3 neighbourhoods – Bukit Indah, Nusa Bestari 2 and Nusa Bayu are commanding robust median prices in the range of RM376-RM460 per sq ft. This is attributed to their proximity to the Woodlands Causeway and the Tuas Second Link, a boon for those who commute daily to Singapore for work. In addition, these residential enclaves are complemented by various supporting infrastructure and amenities – from banks to clinic and grocery stores. Despite their higher than average median prices, convenience is the main driver for the huge demand for properties there. Meanwhile, housing units in the other 4 suburbs offer good value for money deals. Good connectivity links to the JB city centre is a main selling point too.

What were people buying?

image: https://focus-my.ippstatic.com/images/5274b945-1084-4361-a261-160fdfd7b4d4.jpg

The three most popular sizes for terrace homes were:

1) 750-1,000 sq ft 
Traditionally, these are single-storey terrace homes which can accommodate at least 2 bedrooms and possibly an en-suite room cum study room. Units at the end of the spectrum, i.e measuring 1,000 sq ft should be able to house 3 comfortably sized bedrooms. Homes of these sizes are popular among small families and first-time home owners due to the affordable entry point. Some of the government-driven schemes such as PRIMA fall within this size range too.

2) 1,501 – 2,000 sq ft 
These are typically double-storey terrace homes and can comfortably accommodate 3 to 4 bedrooms with at least 2 bathrooms, making it very suitable for the average Johorean household, consisting of 6-8 people. Newly completed units of this size will cost roughly RM400,000 in an average area whereas those more strategically located will bear higher price tags.

3) 1,251 to 1,500 sq ft
Properties in this category are basically large single-storey terrace homes or more compact double storey terrace units. Again, their popularity is due to the affordable factor. Nevertheless, developers are no longer constructing homes within this price range, hence transacted sales moving forwards will only occur in the secondary market.

image: https://focus-my.ippstatic.com/images/29eb8391-5193-480f-99c5-306a92a96bc1.jpg

Preferred price ranges (RM)

More than a quarter or 26.3% of the transactions occurred in the RM260,000 and RM370,000 category. As defined by Bank Negara Malaysia (BNM) these are considered as affordable housing. When compared against the median household income of Johoreans, most can afford to purchase homes up to this price point. Coming in a close second at 23.3% are homes priced above RM470,000. According to Samuel, these purchases would have occurred in the larger, more populous areas like JB. Most double-storey terrace home in the suburbs are already going for RM450,000 and above, with deluxe offerings priced beyond RM1 million.

You get what you pay for – which is why these homes are desirable to those who could afford them as they offer quality, comfortable sizes, strategic location and quality finishes. Another quarter or 29% trended in the price categories not exceeding RM260,000 – one can only deduce that these are for the low and low-medium cost houses.

Future Trends

Within JB, the immediate purchasing trend will be for properties ranging from RM450,000 to RM800,000, shared Samuel. With the stringent loan requirements, however, home buyers must be prepared to cough up more cash for a down payment. This consumer challenge will put a constraint on developers’ selling prices. A similar trend of dampened prices can also be expected for the secondary market. The current emphasis on assisting first-time-house-buyers will see the launching of more properties costing below RM400,000. As can be seen in the few recent government budgets, various schemes have been introduced to assist millennials and civil servants in achieving their home ownership dream.

Apartments

Key figures for top 5 areas

image: https://focus-my.ippstatic.com/images/cbde514e-d444-45ff-9f73-3637ed9c7ac1.jpg

Source: iPropertyiQ.com

Samuel points out that capital growth values for apartments in Iskandar Malaysia are relatively lower than their landed counterparts. This could be attributed to the current oversupply of such products in the local market. Notwithstanding that, it is a pleasant surprise indeed to witness a positive growth rate.

Masai showed the highest y-o-y capital appreciation of 8.6%. The most plausible explanation for this growth trend is the emergence of new apartments in an area which never had many modern residential strata buildings before. Iskandar Puteri showed a marginal growth of 2.6% as this area is still new and property prices there require time to stabilise.

In terms of rental yield, all 5 areas showed commendable rates ranging from 5.6% to 8.0% per annum. Except for Iskandar Puteri and JB, the other regions recorded figures exceeding the market’s standard of a profitable figure, i.e 6%. The above average percentages were probably due to the lower market value of sub-sale units vis-à-vis the monthly rental. Meanwhile, Iskandar Puteri and JB have many higher-priced, new apartments/service apartments and in the current buyers/tenants’ market, it is only normal for the rental yields to be lower.
Top 3 projects in each area

image: https://focus-my.ippstatic.com/images/d177f052-8451-463c-a021-5b4b66886b94.jpg

Source: iPropertyiQ.com

Advice for Homebuyers & Investors
1. Due diligence must-dos include product details, accessibility to convenience, cost of repairs, security concerns as well as the quality and cost of management and maintenance.
2. Find out the ratio of local and foreign purchasers – having more locals within a project/neighbourhood holds more appeal as house prices there tend to be more stable.
3. Considering the current oversupply of high-rise units in IM, investors should be more discerning than usual when making a purchase.
4. Only purchase in popular areas – where tenant demand is high and sustainable.
5. Look for projects with a good concept and a strong management team.

image: https://focus-my.ippstatic.com/images/58e6b769-f620-4ffd-9bde-c61446d3f2ca.jpg

image: https://focus-my.ippstatic.com/images/0e72d563-e400-4cf9-b64b-22d5dc014afe.jpg

 

 

What were people buying? 

image: https://focus-my.ippstatic.com/images/b326afc6-3d36-4cbb-86e7-534caf55e3cb.jpg

1) 750-1,000 sq ft
The lion share of purchases or 41.6% were transacted in this category. Samuel shares that this floor area can comfortably accommodate 3 bedrooms and 2 bathrooms. Also, the living and dining/kitchen areas will be pretty spacious, thus very appealing to families with several children. Prices for new apartments in the JB city centre will range between RM800,000 and RM1.2 million whilst those in the suburbs fall within RM550,000 to RM1.2 million. The higher end ones are usually luxury units with high-quality finishes.

2) 751-1,000 sq ft
These typically feature 2 bedrooms and 2 baths. Larger units might even have an extra bedroom. First time home buyers and young couples especially are the main fans of such ‘starter’ units.

3) 501-750 sq ft
Such units are likely studios or one bedroom apartments. During the property boom in the 2013- 2015 period, numerous developers launched smaller- sized units, which received good response as the price points were very affordable. It is no surprise why these units are popular among those looking to get a foothold on the property ladder as well as investors looking for healthy rental yields. Current prices range from RM250,000 to RM900,000.

image: https://focus-my.ippstatic.com/images/6e9aa42d-afe2-49e5-aaba-bf9527b4cc15.jpg

As enumerated earlier, the RM260,000-RM340,000 price range takes the crown for most purchases. Typically older apartments of over 10 years old with a floor area of roughly 1,000 sq ft are sought after by small families as they feature 3 bedrooms and 2 bathrooms. 19.7% of transactions were garnered for properties priced between RM340,000 and RM420,000. Again
these would be apartments nearer to the city with a floor area of roughly 1,000 sq ft. Given the constant variables with the previous category, these pricier units offer a better location and/or higher quality finishes and more attractive facilities.

There aren’t many property options within the RM220,000-RM260,000 category except for basic apartments in lesser-known suburbs. These cheaper units would appeal to the masses, especially to households with a monthly disposable income of less than RM5,000.

Future trends

Given the current residential overhang, particularly for high-rise units in Johor, the state government had frozen all new applications for service apartments since 2014. Projects being constructed are expected to see completion in the next 2 years. This incoming supply means that it will take some time for the market to digest the excesses, explained Samuel.

Several scenarios are expected to play out in the next few years – developers with unsold stock will be prompted to offer more freebies including cheaper selling prices and special packages to entice purchasers.

As more units flood the market, investors will be competing over a limited pool of tenants, giving rise to a tenant’s market. With the exception for some premium apartments, owners of most schemes will find yield accretion a challenge. Securing a tenant in the first place will not be an easy task, given the supply-demand mismatch.

However, with the serviced apartments freeze as mentioned, there may be a new pent-up demand for apartments from 2020 onwards. Considering the developments in technology and innovations such as Industrialised Building System, the new breed of apartments will be quite different from their predecessors.

In line with consumers’ demand, we can expect to see more uniquely designed homes with carbon-free and environment-friendly features as well as the utilization of artificial intelligence and Internet of Things (IoT).
 

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RTS to Shorten Travel Time Between JB and Singapore

IM2

The Rapid Transit System (RTS) Link connecting Singapore’s Woodlands with Bukit Chagar in Johor Bahru is expected to ease the travelling time between both countries.

On Monday (22 September), state-owned transport firm Prasarana Malaysia and Singapore’s SMRT Corp have signed a memorandum of understanding to create a joint venture to design, fund, build, operate and maintain the 4km rail line.

Next Tuesday, both entities will jointly hold a briefing to update would-be bidders on the tender process. The governments of Singapore and Malaysia will also sign a legally-binding agreement with the project’s full technical details by December 2017, and launch the tender thereafter.

Upon completion by December 2024, 10,000 commuters will be able to travel across both countries per hour using the RTS link. This is expected to speed things up as about 126,000 cars cross the causeway between Singapore and Malaysia per day, making it one of the busiest crossings in the world.

The improved transportation system is anticipated to attract more people to live in Johor, particularly in the Iskandar region, where home prices are more affordable.

This is because it would be easier to make the daily crossing into Singapore, where wages and exchange rates are higher but property prices are more expensive.

In turn, this is expected to reduce the oversupply of houses in the Iskandar region, where many China-based developers are undertaking major developments like Country Garden’s US$100 billion Forest City project which consists of four man-made islands.

As of July 2017, the government of Johor Bahru approved a total of 344,977 units. However, the Penang Institute said in August that about a third of this remains unsold.

Collectively, China-based Greenland Group and Country Garden account for 12 percent of the overall number of residential properties in Johor Bahru, but two-thirds are still looking for buyers as these units were mostly marketed to people from mainland China before Beijing restricted money outflows to overseas real estate.

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High Speed Rail (HSR) raises Hope for Iskandar’s Recovery

IM

The Kuala Lumpur-Singapore High-Speed Rail (HSR) is expected to contribute RM21 billion in gross domestic product (GDP) growth to Malaysia and Singapore and create 111,000 jobs by 2060.
Land Public Transport Commission (SPAD) CEO Mohd Azharuddin Mat Sah, said through a comprehensively inclusive plan, the HSR was expected to deliver significant socio-economic benefits to both Malaysia and Singapore.
“The KL-Singapore HSR is a game-changer and it will pull isolated regions closer, spur growth and development and help several towns along the way and unleash their hidden potential by making them highly accessible, not just to tourists, but also to workers and investors,” he said in his opening keynote address at the 4th International Summit of the HSR Asia 2017 today.
He said the HSR project is expected to not only transform the transport landscape but also create long-term economic and social benefits for Malaysia.
“We expect the HSR to substantially increase the number of travellers across the two countries, and under the transit-oriented development concept, engender economic activities along its route, including and not limited to business activities in the surrounding areas of the stations,” he said.
He said there is so much pent-up demand for travel between Kuala Lumpur and Singapore, as seen by the number of cross-border buses and flights between the two cities.
“Introducing the rail into the equation will offer a competitive option that promises to not just save time but also lead to many other opportunities,” he said.
Nevertheless, he said, there were complex issues to be worked on, including funding options, network expansion, capacity increment, communications and signalling and safety and security.
“In this regard, complex undertakings like a cross-border high-speed rail cannot be executed by looking at mere anecdotes or skimming through easy examples – we need to analyse comprehensive data sets to arrive at more robust conclusions,” he said.
He said that together with its counterparts, Land Transport Authority of Singapore (LTA), SPAD would ensure that safety remained the key consideration in design and operations of the HSR.
Mohd Azharuddin said following the success of the first industry briefing held in Singapore on July 5, MyHSR Corp Sdn Bhd and LTA would jointly conduct the second briefing in preparation for the HSR tender.
“The second briefing, which is scheduled for Sept 26, 2017, will provide in-depth information on technical, commercial and project governance aspects of the project and also serve as a platform to share key features of the project with the industry and interested participants.”
He said Malaysia and Singapore are expected to sign a bilateral agreement for the Johor Baru-Woodlands Rapid Transit System Link project this December.
The two-day summit, which starts today, discussed the challenges and opportunities in high-speed rail and rail construction in Asia based on the success of other countries.

 

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Teega Vacation Club

Welcome to

 

Vacation Club @ Teega

 

Persons to Contact @ www.teega.club

Joey De Silva   +60129442643   (Executive)

Joel De Silva    +60177138789    (Manager)

Joanna Tay      +601128772232  (Director)

Danny Chua     +601128769911  (MD)

 

Your Airbnb Vacation Rental Management Solution

Office @ Teega Tower #1-02  Property Scoopers Sdn Bhd

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Sunway Iskandar – Citrine Designer Offices for Rental

Sunway Iskandar – Citrine Designer Offices for Rental

Unit 3A-10 755 sq ft available for sales at RM700K or Rental at RM2500 pm. PM Danny Chua or app +601128769911

Citrine at The Lakeview housing practical Boutique Retail, contemporary Designer Offices and practical Citrine Residences, has a 20-acre Emerald Lake garden as its neighbour, cradled by a 5km cycling track/jogging trail. Inspired by a rolling landscape, Citrine at The Lakeview is designed to capture the timeless beauty of nature within a well-thought infrastructure. Crafted to become a sustainable and eco-friendly landmark, natural lighting, air ventilation as well as rainwater harvesting systems are just a few green features embracing this integrated development. Situated within the city of Medini, Citrine at The Lakeview is crafted to showcase an awe-inspiring lifestyle within exquisite designs.

The Designer Offices take convenience and desirability to a new level combining lower floors of retail amenities and an annexed serviced residences. Right from its statement glassy façade to the incorporation of advanced infrastructure, every aspect has been meticulously set up that serves its purpose as a world-class working environment enveloped with eco-friendly and energy-savings features. The modular office suites are the perfect platforms for one’s business to excel, and are highly adaptable making them ideal for establishments of virtually any industry and any size.

UNIQUE FEATURE

Special Privileges like:

Direct Access of approximate 5km to Singapore 2nd link
Next to Sunway International School (ready by 2017)
Real Property Gain Tax Exemption
Special Medini Incentive Scheme
No Foreign Capping; Foreigners able to purchase at any price
Lakeview Lifestyle with scenic view of mangrove nature reserve, medini & sea

CONNECTIVITY

5km to Singapore Second Link via Coastal Highway Southern Link (CHSL)
5km to Pinewood Studio & Legoland Theme Park
8km to Puteri Harbour& EduCity
24km to Johor Bahru
35km to Senai International Airport
46km to Singapore’s CBD
66km to Changi International Airport
Future Accessibility

Ferry Service to Singapore & proposed MRT by 2018 to Singapore
Upcoming Coastal Highway Southern Link (CHSL) Sunway Iskandar to Second Link (Tuas Causeway) (completed by 2017)
Proposed LRT from Iskandar Malaysia to Johor Bahru (JB) city centre by 2020
Proposed High Speed Rail (HSR) from KL – JB – Singapore by 2020

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Lendlease to expand into Iskandar Malaysia with Retirement Villages

Lendlease intends to sell up to half of the retirement village business, which is said to be worth A$2 billion. Likely bidders are Singapore’s GIC and New Zealand’s infrastructure group HRL Morrison, according to The Australian Business Review. “We are looking to bring in co-investors and actively continue to grow the business,” says Lombardo. This will allow Lendlease to reinvest in new villages as well as refurbish and update the care facilities in the existing villages, he adds.

Besides looking to maintain its pole position in Australia, Lendlease has also set its sights farther afield. It is looking to expand the senior living village business to Shanghai, given China’s huge population base, says Lombardo. “When you look at China’s demographics, there will be more than 400 million people over the age of 65 by 2050, and they will require retirement villages to move into.” As such, Lendlease intends to be a first mover in the market.

Elsewhere in Asia, Lendlease sees Iskandar Malaysia as another ideal place for the development of retirement villages, owing to its lower land cost and operating costs, adds Lombardo. In addition, Iskandar Malaysia’s proximity to Singapore will be a plus for ageing Singapore citizens looking for affordable retirement villages, he says.

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HSR can power economic growth

HSR

Much has been said about how the anticipated high speed rail (HSR) from Kuala Lumpur to Singapore will slash travel time to as few as 90 minutes, thus expediting the rapid movement of people between the two countries.

However, this particular HSR project is much more than just a mere transportation project, even if its very basic premise is to shorten travel times.

Critics who rail against the project on the grounds that there is very little, if at all any, need for one to be whisked rapidly to and from Singapore, often miss the fact that there is now an opportunity to create entirely new townships around the seven stations on the Malaysian side – Bandar Malaysia (KL), Putra­jaya (and by extension, southern Selangor), Seremban, Ayer Keroh (Malacca), Muar, Batu Pahat and Iskandar Puteri (all in Johor).

HSR has the ability to compress geographical distances, and with that, change entirely how people live, work and play.

Imagine the ability to get to Seremban from KL in possibly no more than 25 minutes.

Love Malacca? A trip from Bandar Malaysia to Ayer Keroh can be made in approximately less than 40 minutes, which is even shorter than what some Klang Valley residents endure while driving to and from work every day.

And for Muar and Batu Pahat residents with jobs in Singapore, daily travel to work can be as short as approximately 45 minutes and 30 minutes, respectively.

This drastic shortening of travel times will open up many possibilities, some of which are unimaginable in the pre-HSR era, contends MyHSR Corporation Sdn Bhd, the Finance Ministry-owned entity tasked with managing the bilateral project.

Synergy is the key

“The HSR will enable the spreading of development out of the Klang Valley,” says MyHSR Corp CEO Mohd Nur Ismal Kamal.

“It will uplift the Gross Domestic Product (GDP) for the entire southern corridor, and the country’s as well. Not everything has to happen in KL anymore. This is similar to the idea behind the United Kingdom’s HS2 (high speed rail project) where they are trying to rebalance the economic growth by spreading development to central England, the Midlands.”

The Malaysian government wants to harness the agglomeration of resources and human capital from combining Kuala Lumpur with Singapore, along with six Malaysian cities.

“It is about being seen as an integrated market when multinationals and investors look at the area. Combining KL (six million people) with Singapore (five million) gives a population of around 11 million, which is a larger consumer market and talent pool compared to viewing the two cities separately. This is enabled by the fact that people can move freely from end to end in just 90 minutes,” says Mohd Nur.

“It is not about size nor ranking, but about being seen as an integrated market in many aspects, including GDP. When you bring cities closer together, they start acting like a large single entity. In this case, HSR is able to overcome physical distance by shortening travel times.

“The HSR will further enhance the GDP growth of intermediate cities such as Seremban, Ayer Keroh, Muar and Batu Pahat when managed properly in tandem with the availability of HSR.

“With the HSR operational in 2026, you could potentially have vibrant cities along the southern corridor all the way to Singapore,” he says.

Plans in place

MyHSR has been conducting extensive studies of HSR-related developments globally to find the right model for Malaysia.

It is cognisant of the fact that the mere presence of HSR in a town alone is no guarantee for success. In particular, it wants to emulate the examples found in Shin-Yokohama after the Tokyo-Osaka HSR started operations in 1964, as well Lille’s following the commencement of the London-Paris HSR service in 1993.

“Developments and activities around the stations have to be planned from the start,” says Mohd Nur.

In Shin-Yokohama, the development of the biotechnology and ICT industries happened with target policies and incentives driving the efforts. Combined with other enabling components of a city such as improved connectivity through public transport, the city saw an increase of 147% in the population and approximately 700,000 jobs created from 1966 to 2006.

To prevent sub-optimal developments from sprouting around HSR stops, MyHSR Corp is collaborating with public and private agencies to ensure that everyone is on the same page. Thankfully, all the states are clamouring for HSR, which is a good start, according to Mohd Nur.

“Besides the partnership with Economic Planning Unit, we are working with other federal government agencies, state authorities, statutory bodies, as well as private organisations and associations to ensure all the benefits arising from HSR will be realised.

“We are helping to set the direction of development. To spur the right kind of activity or industry, our plan will have incentives, the provision of basic infrastructure, and so on. All this requires federal intervention, and all parties have to work together to push this comprehensive agenda forward.

“In this regard, the conversation to create synergy has to cut across the entire corridor, rather than leaving them to grow on their own. We have to ensure complementary growth – this goes back to minimising overlapping, to allow each city to capitalise on their respective unique propositions,” says Mohd Nur.

Alignment of interests

The HSR can help to realise the aspirations in the 11th Malaysia Plan (2016-2020), the Economic Transformation Programme, the Government Transformation Prog­ramme, the respective State Struc­ture Plans, as well as Local Struc­ture Plans (Rancangan Struk­tur Tempatan).

“All these will be taken into consideration in our Strategic Deve­lopment Framework (SDF), which is premised upon the economy, inclusiveness, and sustainability pillars. There are efforts to ensure effective local participation, and there definitely has to be a spillover of benefits to locals in terms of jobs, transit oriented developments, and so on,” says Mohd Nur.

“MyHSR Corp has been actively doing many engagements over the entire year, going back as far as January. There were labs with the public and private sectors to test the viability of ideas and proposals,” he says.

Mohd Nur stresses that every­thing about HSR-related developments is never top down.

“This is not an independent plan crafted in a silo. It is about fulfilling earlier plans like the ETP and so on, and giving them a much needed boost.

“A lot of the components of the ETP are incorporated, with focus areas including healthcare, tourism, and financial services. It is about alignment of interests.

“The right (federal) incentives will be there to spur the desired kind of activities, and we are working with Mida, Matrade and Miti to come up with them,” says Mohd Nur.

He assures that there will be intense joint scrutiny of every development proposal to ensure they make economic and rational sense.

The big picture

For sure, the HSR project is capital intensive, even if MyHSR is in no position to reveal how much it expects the final cost will be as an international tender will be called soon.

“We should not merely look at the financial payback period. We are looking more at the economic rate of return, which is way more important,” says Mohd Nur.

Based on a study conducted in 2015, the wider spillover benefits from HSR is estimated in the region of RM21bil of GDP in 2060 with 111,000 jobs created. This is on top of the direct and indirect GDP impact in the region of an estimate RM29bil, as well as RM70bil in multiple benefits from the construction process.

“It is not just building a railway. It is about turning the southern corridor of the country into an economic powerhouse, which is all part of a grander plan to achieve the aspirations of the country by creating jobs and wealth so that we can be a high-income nation.

“There is a plan, and we are putting into place a mechanism to make the plan happen,” says Mohd Nur.
Read more at http://www.thestar.com.my/news/nation/2016/12/24/hsr-can-power-economic-growth-the-klsingapore-high-speed-rail-project-is-more-than-just-about-fast-t/#Q0IlEQ5yRiaYldCq.99

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