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What I like:
- MRT project worth 40 billion. This is long overdue. Please expedite this. We Malaysians really need this. I hope the construction will be done in phases so that part of the MRT could be used staggeredly while waiting for other lines to be completed by 2020. I also hope the construction will factor in future expansions in case they are required. All woes pertaining to current state of public transportation shall be addressed. Besides that, please also expedite the LRT extension project! It shall be completed by 2012 but till now, the project has not been awarded.
- Bumiputra Property Trust Scheme. This is a chance for bumiputra to participate in commercial properties. Currently I don't have any idea how this trust will work. But when I move my property portfolio towards acquiring commercial properties, I hope this trust would help me to achieve this. No doubt that commercial properties are really expensive nowadays and is out of range for most bumiputras. Besides, I also hope with the setting up of this trust, it will eliminate the complaints by developers of not being able to sell the 30% bumi quota for commercial properties. The trust could buy these properties and then sell them to aspiring bumiputra investors. Otherwise, the trust could just let the property for rental and gain income from there, provided the properties are in good location.
- No toll hike on PLUS highways for 5 years. I think the current toll rate is already adequate. What I don't like is the fact that the government have to fork out RM5 billion as compensation to PLUS due to this. As I understand it, PLUS is basically part of GLC which means GOVERNMENT Linked Company. EPF and UEM are the main shareholders in PLUS. So, if they are part of GLC, why should the government fork out such a lot of money for compensation? That means taxpayers money ladies and gentlemen or in other words, our money! RM5 billion is a lot of money. I hope some other means could be used or just kowtim yourselves la between government agencies.
- Duty exemption on hybrid cars extended to next year. This is certainly a right move in the right direction towards encouraging the purchase of hybrid cars. I do think the exemption shall be granted for a longer period since ownership of hybrid cars are still quite low in Malaysia due to the high prices. Many years will be needed before mindset of Malaysians change. Having expensive such type of cars does not help in changing the mindset. Eventually it boils down to what the man on the street could afford.
What I don't like:
- Warisan Merdeka for RM5 billion. It is supposed to be another landmark in KL located near Merdeka Stadium. I'm not really sure what's the purpose of this building but it looks to be another white elephant. If its for office purposes, KL has many office buildings which have yet to achieve full occupancy. If it's for commercial purposes, I doubt people would want to shop in a 100-storey building. Walking around Mid-valley is already tiring enough. With the Kuala Lumpur International Financial District (KLIFD) to be built along Jalan Tun Razak, which means more office buildings, I don't see how these 2 projects would complement each other. By the way, I'm also skeptical with the need for KLIFD.
- Construction of 6 new highways. I don't know whether the government have learnt their lessons from the previous toll hike saga. I would assume that these are tolled highways. Every time hike in toll fares are announced, there will be huge public outrage. Why build more highways when you know such things will happen in the future and further reduce your popularity. Just build normal decent 4 carriageways road. These are responsibilities of the government. Why subcontract your responsibilities to the private sector and let the people suffer with ever increasing tolls? If building of the new highways still goes through, I hope at least the concessionaire agreement will be in favour of the government/people. Don't hang your self with lopsided agreements.
- Increase in service tax to 6%. Can't complaint much though on increase in tax since understandably, government needs income to implement all these projects. However, I do hope the government will spend the money wisely. There are already people questioning the government's prudence. So check the spending and make every sen count.
3 comments:
these are my views
menara warisan- i believe the building of menara warisan is to achieve a greater goal . the multiplier effect from this project will be huge and in a way it will contribute back to the economy . To look at it in a purely real estate point of view is not fair . Give PNB a chance , surely a project this big had been thought after very carefully.
highways - the reason the government resort to PFI in building highway is to ease up the financial burden . Building road and maintaining it need a huge amount of capital.The easiest way is through PFI . Yup toll is an issue but the people must also realised that nothing is free.malaysian are so getting used in being subsidised that they expect any price hike is unfair and unjust.
actually there are a few issues about this menara warisan. 1st.. whether the project has been really thought off is open for discussion. PNB's statement certainly indicate there have done their homework. probably its true, maybe not. if its true, then good. but have they really thought of getting people/business into the building? KLCC took a few years to fill up. now complaints have surfaced in filling the Burj-dubai. even prices of units in that building have actually decreased only a year into operation. with KLIFD also slated for development, will these 2 projects compete or complement each other? i certainly think having a centre of historical attraction is better since merdeka and national stadium is around the corner. plus there's victoria institution. if pudu jail was still there, it can better complement a centre of historical attraction. time will tell..
2nd ly is that PNB claimed that they are using their own money to fund this project. but surprisingly, PM have announced this project in the Budget. the budget is meant for the government's (read peoples) money. why is this project declared in the budget is really mind boggling. it indirectly indicates that the taxpayers money will be used for this project. even PNB is only a trust holder. its not their money. its investors money they are keeping. its either our PM is confused on what to include in the Budget or PNB is confused on who's money they are talking about.
you can't compare dubai with kl . bear in mind that the burj dubai completion coincides with the credit crunch financial crisis in dubai. They are alot number of major project moving at the same time in dubai which had causes an oversupply of office spaces.the burj dubai is part of downtown dubai with a developement cost of usd 20 billion . there are also other building being develop in dubai at the same time . Menara warisan is only rm 5 billion which will only going to be devellop over a period of 10 years . spread the investment amount out and the amount is miniscule.
second - it was not mind boggling when the PM announce all the initiative as it was all under the FIRST STRATEGY - REINVIGORATING PRIVATE INVESTMENT . The title clearly explain that it was a private investment but of course with a high impact project like these government need to play their role as an administrator of this country. do analyse the PM full text speech and you will get what i mean. If you ask me i would like PNB to use my money to invest to get a better return . look at KLCC , the developement of KLCC did not only put malaysia in a world map but the property prices in the surrounding area skyrocketed . this is what we call a multiplier effect. i was told by my collleague in PNB that the planning for menara warisan was done in 2004. rather than critisized directly , we should give suppport on the goverment initiative to boost domestic spending
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