APR23_High Res

MARCH - APRIL 2018 ISSUE 23
KL
- MOST
UNDERRATED
CITY IN ASEAN? Pg 5
GAVIN TEE: V-SHAPED
RECOVERY FOR MALAYSIA Pg 8
BITCOIN IN REAL ESTATE? Pg 16
TOP 8 FORECASTS FOR
MALAYSIA IN 2018 Pg 24
PP18617/10/2014(034059)
MICA (P) 125/07/2015
PP18617/05/2016(034488)
MCI (P) 046/07/2017
BEST BETS FOR SECOND
PASSPORTS Pg 48
THAILAND’S EEC
– FOREIGNERS TO BENEFIT Pg 52
CLIMATE CHANGE’S IMPACT
ON HOUSING Pg 66

The Largest Real Estate Convention in Malaysia.

EDITOR’S NOTE
KL TAKES CENTRESTAGE
IN 2018
KL takes the spotlight in this issue – the city that a lot of people overlook in favour of
Singapore, Bangkok, Ho Chi Minh City and even Manila. But that’s where they fail
to note the many advantages of KL.
By mid-2018, most likely after the general election, whether or not there is a change of
government, things will move very swiftly for Malaysia due to the political uncertainty factor
being taken out; in fact, one expert, Dato Sri Gavin Tee predicted that 2018 is the year the
property market will make a V-shaped recovery especially KL.
Although there are plenty to dislike about KL – its endemic traffic jam,
red tape, it seems the authorities are bent on making KL a showcase for
all that’s big, bright and beautiful. It’s an ambitious city constantly giving
out a ‘work in progress’ vibe. Very soon, KL will reign supreme again as
the city with the tallest building in ASEAN. That’s not counting a few
more over 100-storey buildings on the way.
There will be a lot of changes as well for the entire country; for example,
durians which was once Malaysia’s best kept secret is now the most
sought-after fruit in China with the highest price tag. That means
durian plantations are doing well. That’s just one of the 8 top forecasts
for Malaysia by Gavin Tee.
Jan at the Taj Mahal
Is bitcoin too speculative to be used for property deals? KL See, deputy
president of MIPEAC thinks so. We examine the issue and think
it can still be used as an alternative payment option especially for
deferred purchases.
Khalil Adis explains what happens when a HDB owner breaks the law; not a good idea in
the ‘fine’ city of Singapore. Plus, having just renovated his studio apartment pretty much
hands-on in Singapore, he will also give tips on how to give your compact living space a more
spacious look.
Knight Frank’s first ever ranking of Belt & Road countries is an eye-opener; it gives you
an idea of which countries have the most to offer and benefit from the biggest project of
the century.
Not to be outdone by its neighbours, Thailand has its own free trade zone coming up
strongly, the Eastern Economic Corridor. The best thing about this is that it would lift many
restrictions against foreigners in terms of property and residency rights.
Of late, alarm bells have been rung about climate change; from the real estate perspective,
it certainly has some impact. Florida’s case is just but one example. We expect many more
climate change refugees and the destruction of property including residential in the coming
years if this crisis is not addressed soon enough.
JAN YONG
Editor-in-Chief
editor@asianpropertyreview.com

March - April 2018
COVER STORY
5 Kuala Lumpur is the most underrated city
in ASEAN, maybe the entire Asia. Asian
Property Review examines why.
8 Most experts believe that Malaysia’s property
market will stage a strong recovery after the
general election which must be held before
August. One expert, Dato Sri Gavin Tee even
predicted that 2018 is the year the market will make
a V-shaped recovery especially KL.
12 Beautiful KL – a work in progress
The KL downtown historic core is undergoing
a renaissance of sorts – a number of projects
have made this part of downtown more
accessible, safer and a place to hangout.
There is certainly a lot of character there compared
with many other places in KL.
16 Would you buy property using bitcoin? Asian
Property Review examines whether it is
prudent.
18 ‘Bitcoin is too speculative for property deals’,
says KL See, deputy president of MIPEAC. In a
Q & A with him, See reveals why.
INVESTMENT
24 Top 8 Forecasts in 2018 by Gavin Tee
“The Malaysian property world as we know it will
evolve into a different landscape with noticeable
changes starting from 2017 and becoming more
pronounced in 2018.”
30 HDB confiscation – Khalil Adis explains what
happens when you break the law.
32 Japan in 2018 as the Olympics nears. Ziv
Nakajima-Magen gives his opinion on condos,
shared offices, budget hotels and bitcoin.
34 Noted land expert, Tan Hwa Chuan reveals
where foreigners should buy in KL.
12
5
24

62
36 Priti Donnelly gives you her take on what
factors to consider when you want to rent out
your property in Japan.
40 Office space demand to surge in most
cities, according to Cushman & Wakefield
WORLDVIEW
48 Should you get a second passport? Asian
Property Review finds out which countries are
your best bet.
52 Thailand’s Eastern Economic Corridor is
making an impact – it’s good news for foreigners
as many foreign restrictions are expected to
be lifted.
54 Knight Frank’s first ever ranking of Belt & Road
countries is an eye-opener.
62 How is Japan coping with climate change?
66 Catherine Ridu tells Asian Property Review
why climate change is an important factor when
it comes to housing.
73 Which Asian countries are most vulnerable to
climate change?
80
74
DESIGN
74 Khalil Adis gives tips on how to renovate your
‘tiny’ home.
TOURISM
80 KL luxury hotels buck trend in a generally
oversupplied market.
FENG SHUI
87 Prof Joe Choo explains why some residential and
commercial properties remain unpopular
despite being located in sought-after locations.

www.asianpropertyreview.com
March - April 2018
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Writer
Contributors
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March - April 2018
5
KL
A TOWERING GEM

6 ASIAN PROPERTY REVIEW COVER STORY
KL – THE MOST
UNDERRATED CITY
IN ASEAN?
Often overlooked in favour of Singapore and Bangkok, KL is in fact
a hidden gem with stunning skylines and world-class infrastructure,
which are complemented by highly ranked education and medical care,
yet it comes with a very affordable price tag.
Text by Benjamin K. Yong
If you google ‘KL underrated city’, you will find a
number of websites including the UK’s Daily Express
newspaper waxing lyrical about KL’s uniqueness and
how it’s been overlooked. Quoting excerpts (edited)
from the said article (published in August 2017): “Friendly,
fascinating and fun, the Malaysian capital offers the best
of Southeast Asia, it has got it all. Kuala Lumpur enjoys
the very best of Southeast Asia without the downsides.
It offers all the glitz and modernity of Singapore without
the tiresome rules and regulations, and its street life has
all the enlivening buzz of Bangkok without the grime or
occasional seediness.”
Quoting the writer further: “While Singapore is
undoubtedly clean, efficient and easy on the eye, it can
also be a little, well… dull. And the Thai capital may be a
thrilling riot of colour and energy but it can be exhausting,
exasperating and the service - outside of top establishments
- is often sketchy, at best.”
“Not only is English widely spoken, there is glorious colonial
architecture and the finest and most varied cuisine in Asia.
It is extraordinarily good value too - accommodation, eating
out and getting around is inexpensive. KL also teems with
quality four and five-star hotels with room rates at a fraction
of that even in other Asian countries.
“Travelling around KL is a breeze, there’s a light railway
system, metro and even a monorail, plus a kilometre-long
elevated Bintang Walkway, an air-conditioned walkway
high above the traffic leading to the tourist, commercial and
nightlife centre of Bukit Bintang.
“It emerges at the Pavilion, one of the city’s largest and
glossiest malls. Just three minutes from Jalan Alor is
Changkat Bukit Bintang, which has cocktail lounges,
classy whisky bars, and pubs. Petaling Street Night Market
in Chinatown is judged by many to be the best in all of
Southeast Asia.”
Panoramic view of a residential area off Old Klang Road,
which is one of the most sought-after locations in KL.

March - April 2018
7
There – the writer spelled out what’s so unique about KL –
from the perspective of a European tourist.
GREAT DIVERSITY
For digital nomad Barbara Riedel who has been travelling
around the world since 2014 and has written a book
entitled “My Trip Around the World”, she has this to say
about KL: “Malaysia gets overlooked. Plain and simple. I’ve
listed Kuala Lumpur as one of the five most liveable cities
in Southeast Asia, but with Thailand next door, Malaysia is
easily overlooked and underrated.
“Malaysia is a great location for expat living. In fact,
Malaysia provides a better standard of living and is a
wealthier country than Thailand. You also have the diversity
of three different cultures, plus a number of expats.
“As a result, I’ve often said that Malaysia is the United
States of Southeast Asia — for all the good things
and none of the bad. The diversity is one of its greatest
characteristics. Malaysia offers so many amenities,
including a great airport. KL is the home for AirAsia and
you’ve also got Singapore next door with more connections.
“Malaysia is a bit of a mix between the two countries
it’s nestled between: Singapore and Thailand. KL, with
its famous twin towers, which are still the highest in the
world, and impressive shopping malls, has many modern
aspects similar to Singapore but without the expensive
price tag. The prices are more comparable to Thailand.
Additionally, Malaysia has a range of beautiful islands that
are worth a visit. The climate in Malaysia is tropical, warm
and sunny, but with abundant rainfall.”
As you can see, Malaysia and in particular KL, gets high
marks from more discerning travellers. Prior to the 2014
twin Malaysian Airlines flight disasters, there had been a
lot of visitors from China but following the unfortunate
incidents, the number had dropped to a trickle at one
point. For the past one year however, it seems they have
returned in big numbers again, no doubt seduced by
Malaysia’s uniqueness and in recent months, its Musang
King durians.
HIGH LIVEABILITY
More Chinese are also choosing KL as a retirement
destination under the Malaysia My Second Home (MM2H)
programme. In fact, Malaysia was ranked top as the ideal
retirement destination in Asia in 2018, according to a new
Retirement Index from International Living.com. The index,
which takes into consideration criteria such as cost of living,
healthcare and climate, ranked Malaysia fifth globally.
Last year, CNN had ranked Kuala Lumpur 6th place
globally for the best place to retire abroad. That’s not
surprising given that KL was also ranked as Southeast Asia’s
second most liveable city after Singapore in the Global
Liveability Ranking released by the Economist Intelligence
Unit (EIU) last year.
Also in 2017, Euromonitor International placed KL at 10th
place in its Top 10 most visited city in the world at 12.3
million visitors.
And the list goes on and on…
Like most of the world’s capital cities, KL is the economic,
trade, financial and business heart of the country. Since the
ringgit depreciated significantly three years ago, Malaysia’s
properties have become one of the cheapest, if not, the
cheapest among all capital cities in ASEAN. It also has
some of the friendliest and most transparent property rules
for foreigners in Asia.
This means, considering KL’s world class infrastructure
(several 100+ storey buildings are about to be completed
soon), and high liveability ranking, it is the best value
capital city possibly in the entire world.

8 ASIAN PROPERTY REVIEW COVER STORY
‘V-SHAPED
RECOVERY
FOR
MALAYSIA
FROM 2018’,
SAYS EXPERT
Most experts are optimistic on prospects for
Malaysia during this critical general election
year – with many convinced that KL will lead the
beleaguered country’s recovery post-GE.
The Exchange 106 is part of TRX and will be Malaysia’s
tallest building when completed soon.

March - April 2018
9
From July onwards after the general
election, Malaysia will start a market
recovery that will last for the next 5 years,
predicts Dato’ Sri Gavin Tee, a prominent
property consultant.
“After a very difficult 4 ½ years for the property
market, Malaysia will come out of the bottom
sometime in late December 2017 till early 2018
and emerge stronger than ever before,” he told a
crowd of about 300 property investors in Johor
Bahru recently.
“The sharp decline of the market lasting almost 5
years while an expected strong recovery starting
from this year and lasting for the next 5 years is
similar to a 10-year V-shaped property cycle,” Tee,
who is also the Founder and President of Swhengtee
Group elaborated.
The recovery will be led by tourism related activities
followed by China’s Belt & Road projects, as well as
the completion of the early phases of several mega
projects such as the Tun Razak Exchange (TRX),
Malaysia’s next financial district, and the MRT and
LRT extension.
Also helping the economy are rising oil prices which
recently topped USD65 per barrel for the first time
since 2014 and the strengthening Ringgit, Tee said.
He further explained that Malaysia has lost out on
its competitiveness since the last 4 years starting
with the disappearance of MH370 followed by
the shooting down of MH17, the 1MDB issue
and the kidnapping in Sabah, among other
factors. The international community has to a
large extent lost confidence and for a few years,
Malaysia was not in the radar of many foreign
investors. “Malaysia even lost out to Thailand, the
Philippines and Indonesia; we are still moving
forward, but moving at a much slower pace than
our neighbouring countries,” he said.
Being an international
destination and the seat of
political power, it has suffered
the worst but KL will also be
the first and fastest to rebound
when the upturn comes.
– Tee
But as with any market cycle, there are peaks and
bottoms; in Malaysia’s case, Tee was confident that
we have seen the worst and this year will see a new
beginning. He emphasised that it will not be a
sudden boom but “there will be a lot of significant
changes in the capital city, Kuala Lumpur, which will
then spread throughout the country until 2022.”
Citing the tourism example, Tee said it will bring
massive changes even to second tier cities like lpoh,
Pangkor, Kuantan, Bentong, Kuching and Taiping
from 2020 – 2022.
“Kuala Lumpur tourism will experience the fastest
rebound followed by Melaka, Iskandar, Penang
and Kota Kinabalu. In fact, KK’s airport is the
second busiest in Malaysia and is being expanded,
while a new international airport is being
considered,” Tee said.
Kuala Lumpur will also for the first time become a
financial, trading, transportation and even an Islamic
hub for ASEAN. “Being an international destination
and the seat of political power, it has suffered the
worst but KL will also be the first and fastest to
rebound when the upturn comes,” he continued,
adding that KL’s property prices are still relatively
low compared to Penang and Johor Bahru even
though it is at the heart of the action.
Dato’ Sri Gavin Tee

10 ASIAN PROPERTY REVIEW COVER STORY
‘MOST COMPETITIVE’
“Malaysia has built up the most competitive
infrastructure in ASEAN – we have the best
strategic location next to Melaka Straits, the best
relationship with China as well as the best cultural
and historical ties with China. We also have the
most investor-friendly policies, a transparent legal
system and multilingual talent force.
“With all these in place, it’s only a matter of time
after the general election that everything will start
moving very fast. It’s as if we are on a standby mode
now – once the political uncertainty clears, Malaysia
will shift to high gears to catch up with the rest of
its neighbours.
He further said: “We will see more contracts signed
for BRI-related projects, more Foreign Direct
Investments (FDI), more land transactions, more
development and construction activities especially
infrastructure projects, megastructures and hubs in
various fields.”
In addition, 2020 has been designated as Visit
Malaysia Year, hence there will be a lot of tourism
activities. Budget 2018 has proposed a lot of
incentives for SMEs in the tourism industry as well
as for hotels.
The tourism boom will benefit Malaysia overall and
will cause demand to spike for tourism-related and
commercial properties. Medical tourism and MM2H
applications will become even more popular among
foreigners as more investments enter the country, the
consultant predicted.
“The tourism spots will also spread out to small
towns and kampongs or villages, giving eco-tourism
a big boost. Malaysia is fortunate to be home to
the world’s oldest tropical rainforest estimated
to be as old as 130 million years. It is located at
Taman Negara which straddles 3 states – Pahang,
Terengganu and Kelantan – another reason for it to
be an eco-tourism hub.”
In terms of man-made attractions, Malaysia’s
UNESCO World Heritage sites in the old quarters
of Melaka and Penang still continue to draw the
crowds; the small town of Bentong meanwhile is
gaining more prominence as Malaysia’s first and only
‘durian town’ as durians start becoming one of the
hottest exports from Malaysia.
Malaysia also has its very own unique culture, for
example, the Malay traditional costumes such as
the sarong kebaya and baju Melayu in addition to
the Malay kampong house and Malaysia’s famed
multicultural array of food.
Photography by Jan Yong
It’s as if we are on a
standby mode now
– once the political
uncertainty clears,
Malaysia will shift to
high gears to catch
up with the rest of its
neighbours.
- Tee
“Tourists nowadays especially those from China
prefer authentic cultural experiences which we have
in abundance. They don’t come here to see the tallest
buildings or the biggest shopping malls anymore
because their own buildings and malls in China are
even taller and bigger than ours,” Tee quipped.
In summing up, the popular speaker believed KL’s
potential as a hub or international centre in many
fields is very strong due to its strategic position
within the BRI – especially if the ‘Project of the
Century’ extends all the way to Australia, America
and Europe.

March - April 2018
11
With climate change being a hot topic
due to extreme weather conditions
worldwide, it is a relief to know that KL
is mostly free from all natural disasters.
– See
See Kok Loong
Prof Joe Choo
KL TO FARE THE BEST
On the same note, Metro Homes director See Kok
Loong believed that KL will fare the best due to
its status as Malaysia’s international city. “KL is
international investors’ target market.”
“KLites also have the highest disposable income
among Malaysians. Its population, which is
reaching 7-8 million (Greater KL) is relatively
younger compared to countries like Hong Kong,
China and Japan.”
“As the capital city, it is home to most of the 9
mega projects in Malaysia, such as the TRX, Bandar
Malaysia and infrastructure-related projects such as
the KL-Singapore High Speed Rail.
“Best of all, prices of property are still relatively
cheap compared to its counterparts in the region like
Singapore, Jakarta and Bangkok. Lately too, with
climate change being a hot topic due to extreme
weather conditions worldwide, it is a relief to know
that KL is mostly free from all natural disasters.”
The property expert also believed that a recovery
is possible during the 2nd half of 2018 after the
general election. “It depends on the GE result and
government policies. In order for the market to
recover, there has to be certainty,” he said, adding
that the market during the 1st half of 2018 will
remain the same (as last year).
From a Feng Shui perspective, the 2nd half of the
year will have plenty of opportunities with many
Photography by Jan Yong
Lunch time crowd at Medan Pasar in KL’s historic core.
good deals, predicted Prof Joe Choo, President
of the Malaysian Institute of Geomancy
Sciences (MINGS).
Choo however cautioned buyers in the Klang
Valley to be careful when buying Transit-Oriented
Development (TOD) projects which have become
ubiquitous with the recent completion of the Klang
Valley MRT (KVMRT) Line 1 project. “Although
properties close to MRT lines tend to enjoy better
capital appreciation and rental price, homes that are
exposed directly to the track tend to be rundown
leading to depreciation in property values. This is a
result of the good energy which is being pulled out
from the property due to the moving train.”

12 ASIAN PROPERTY REVIEW COVER STORY
BEAUTIFUL KL
A WORK IN PROGRESS
The KL downtown historic core is undergoing a renaissance of sorts –
a number of projects have made this part of downtown more accessible,
safer and a place to hangout for both locals and visitors instead of their
typically visiting the city’s shopping malls.
Text and Photography by Jan Yong
Granted, Kuala Lumpur is nothing like the
acclaimed beautiful cities in the world like
Vancouver, Sydney, Auckland, Venice or even
Hong Kong and Singapore. One thing though
that they all share in common is having a water body next to
it such as the sea or river, and having a historic downtown
core. In KL’s case, there is the Klang and Gombak rivers
which are part of the ambitious RM4.4 bil ‘River of Life’
(RoL) project; and a historic downtown core that has a lot
of inbuilt character.
Old shophouses in KL historic core.
‘River of life’ where water will sprout
from the sides of the 2 rivers with Masjid
Jamek being the focal point.
The focal point of the RoL project is the “Blue Pool”,
which aims to visually transform the convergence point
of the Klang and Gombak rivers into vibrant and bustling
waterfronts. It will provide a view of the river with colourful
lights and water fountains accompanied by music where
visitors can chill out.
Expected to be completed by 2020, the project also includes
a plan to build a pedestrian bridge linking Masjid Jamek
with the Sultan Abdul Samad Building and Dataran
Merdeka - all 3 historic buildings - by cutting travelling
time by half.

According to reports, the beautification will focus on a
10.7km stretch along the Klang and Gombak river corridors
(by 2019), while commercialisation and tourism within the
same riverfront will take place from 2020 onwards.
OLD WORLD CHARM OF SHOPHOUSES
That’s not all – the historic core of KL, covering the area
within 1km radius from Masjid Jamek, will be reimagined
especially the public spaces and even the shophouses.
Unfortunately for KL, the old shophouses do not enjoy the
same UNESCO protection as those in Georgetown and
Melaka. Thus, many have been demolished and redeveloped
while some have been inappropriately adapted.
Still, if you walk around that area, you could still see a
number of those shophouses’ old character being preserved
despite having been converted into budget guesthouses, cafes
and an assortment of shops. You could still get a feel of the
old KL of some 50 years ago when you walk along Jalan
Tun HS Lee where you will encounter an old mom and pop
convenience shop (kedai runcit), an old bookshop and coffee
shops reminiscent of those in the 1950s and 1960s.
Recently, there have been ideas mooted to repurpose
the upper floors of some of these old shophouses into
affordable micro houses to accommodate young working
adults working in the city centre. The grand scheme is to
repopulate the downtown city centre after the ‘suburban
flight’ which saw many KLites moving to suburban
residential estates.
Prototype 2 of the micro house which is envisioned for
the upper floors of old shophouses.
Other ideas that have been executed are kerblets and
parklets. The first are basically outdoor lounges that utilise
upcycled furniture to make use of underutilized pedestrian
space. There are two so far – one outside a decades-old
bookshop and another outside a famous beef noodle shop
along Jalan Tun HS Lee.
Parklets are another new idea - to repurpose former car
park lots into spaces for passerby and pedestrians to rest
and watch the world go by. The first one, located at Jalan
Panggong, features a small edible garden and a seating area.
The second one is located along Jalan Hang Kasturi.
Another highlight are the murals on the
outer walls of the corner shoplots. An
example seen here is one highlighting an
idyllic urban scene which celebrates KL’s
history and diversity.
Even the laneways are not spared – a
few have been beautified as part of the
Laneway Improvement Programme in
downtown KL. The programme aims
to create safer, cleaner, more functional
and attractive laneways/backlanes in the
downtown area.
An example is Lorong Bandar 13, one
block away from the Medan Pasar clock
tower, which has a functional court
for badminton and seating areas in an
outdoor lounge. These are all part of an
experiment in turning an underutilised
space into a place for socialising, respite
and activity within the city.
The cycling lane on Jalan Hang Kasturi, seen from the third
floor of a art deco building across the road.
Cycling lane (identified in blue) is an ongoing
project in the KL historic core

Other attractions include:
KL FOREST ECO PARK
The KL Forest Eco Park is the last remaining tropical
forest within downtown KL. With a 200m canopy walk,
visitors can enjoy an aerial view of both nature and the city
surrounding it.
Popup kerblets along Jalan Tun HS Lee utilise upcycled furniture to make
use of underutilized space.
CYCLING – COOLEST TRANSPORT
Another project that has been 5 years in the making is the
cycle lane that aims to reduce traffic congestion in the city
centre and reduce the use of cars for short point-to-point
journeys within the city. Commonly known as Bike4U
project, it is part of the DBKL cycling and pedestrian
master plan. The lanes connect the Kuala Lumpur
Convention Centre to various hotels as well as span the
core historic centre of downtown KL. So far, five kilometres
of lane have been painted, with city officials aiming for 11
kilometres of usable path within the next five years.
LORONG PANGGUNG
A hidden street next to Chinatown, Lorong Panggung
is reminiscent of 1960s KL. On this street, the charming
past of KL is preserved through old shophouses and truly
local food.
SERANI ROW
Built in 1930, Serani Row was once the residence of
the Eurasian community. Today, this row of abandoned
buildings are brought to life by colourful murals.
REIMAGINED BUS SHELTER
Parisign, in partnership with DBKL and Think City, had
launched a design competition to reimagine KL’s bus stops.
The winning entry incorporates a green roof, rainwater
harvesting and solar power and is located at the Go KL
bus shelter along Jalan Raja Chulan. There is also a kinetic
energy cycle that allows passersby to charge their phone or
laptop with just a few minutes of cycling.
Beautifying the
backlane and
utilizing the space
for activities such
as badminton
and other social
interaction. The
lane, Lorong
Bandar 13, is one
block away from
the Medan Pasar
clock tower.
Street art on the wall of a shophouse along Jalan Tun HS Lee, KL

16 ASIAN PROPERTY REVIEW COVER STORY
BUYING PROPERTY
WITH BITCOIN?
Asian Property Review examines whether it is prudent to
transact real estate in bitcoin.
Text by Jan Yong
On January 9 this year, it was reported that a
Sabahan businessman sold his 1.22ha of land
on an island for half a bitcoin (equivalent to
RM38,000 at the time). Payment was made by
transferring the bitcoin via their Luno wallets. Luno is a
Singapore-incorporated bitcoin platform where people can
buy, sell and trade bitcoins.
The sale price was quoted in both ringgit and bitcoin value.
Malaysia’s Central Bank (Bank Negara) has said bitcoin is
not legal tender but has not banned it outright. As such,
Malaysians can still trade in bitcoin exchanges and if
parties to a deal agree, they could use bitcoin as the primary
or alternative payment method.
Since private contracts are on a willing buyer, willing
seller basis, parties to a contract including the sale
of land or property can agree to whatever terms they
like including the type of currency as long as it is not
illegal. There is nothing in the laws of Malaysia as yet
that prohibits the sale of property in a currency other
than the ringgit; this is likely because this problem
has never been encountered before. It has always been
assumed that property would be paid for in a currency
denominated in ringgit.
Four days following the landmark deal, the Inland Revenue
Department (IRD) froze Luno’s account and requested for
details of all of its customers and their transactions.
Earlier, in December 2017, Bank Negara had proposed
draft regulations for digital currency activities, in particular,
Know Your Customer (KYC) and Anti-Money Laundering
(AML) guidelines in an attempt to provide more
transparency to an industry where the anonymous nature
of its transactions facilitate money-laundering, terrorism
financing and tax evasion.
What happened in Malaysia is symptomatic of the dilemma
faced by regulatory authorities all over the world when
dealing with the new cryptocurrency revolution. 2017 was
the ‘Year of the Cryptocurrency’ which saw the value of
cryptocurrencies skyrocket and the creation of new ones.
Imagine a 1,700% return in about 11 months’ time!

March - April 2018
17
DIVERGENT VIEWS
While some countries have embraced it, for example, Japan
and the state of Arizona in the US, both of which hope
to be the hub of the digital currency revolution, there are
others such as China, India and South Korea which have
clamped down hard on cryptocurrencies. China is said to be
working on blocking all on-shore and off-shore platforms
related to cryptocurrency trading ICOs in an attempt to
quash the market completely. Likewise for India which
plans to eliminate cryptocurrencies altogether from its
payments system. South Korea meanwhile, has banned
anonymous transactions.
Some countries like Malaysia, Vietnam, Indonesia and the
Philippines are taking the middle path by coming up in the
near future with draft legislations to regulate the industry
without totally banning the virtual currency.
More developed financial centres like Hong Kong and
Singapore are fine-tuning their laws – Hong Kong and
Singapore deem some forms of cryptocurrency as securities
to be regulated and subject to various disclosure, licensing
and other laws.
Following the massive Coincheck theft, Japan is now
ensuring stricter monitoring of cryptocurrency exchanges.
It is also creating a database of cryptocurrency investors to
ensure enforcement of its tax laws which impose taxes of
between 15 and 55% on their virtual currency profits.
There are extremely divergent views on its long-term
potential – some think bitcoin will eventually be the gold
standard for digital currencies and may reach the dizzying
price of USD100,000 per bitcoin. Others contend that the
value of all cryptocurrencies will nosedive to zero and will
eventually disappear given its lack of intrinsic value and
practical applications other than as a means of payment.
In January 2018, the plunge in bitcoin value has many
proclaiming that the bitcoin bubble has finally burst.
Prior to that, due to its surge in value to about USD20,000
per coin at its height in 2017, some in the property industry
decided to use it instead of fiat currency.
A few developers in Dubai, followed by Turkey announced
that buyers can purchase their properties using bitcoin.
In the US too, an excited agent raved about a real estate
transaction that he claimed took only 10 minutes for the
bitcoin to be changed to US dollars.
In London, a house owner was willing to accept bitcoin
as payment while a co-living realtor was accepting rental
payment in bitcoin.
In 2017, some property sellers in
Dubai, Turkey, US and London
accept payment in bitcoin.
WHY NOT?
Its excessive volatility is what makes bitcoin totally
unsuitable for real estate transactions, says a realtor in
Malaysia. Imagine the value of your house skyrocketing or
plunging in a matter of days!
Furthermore, transactions in Bitcoin are slow because its
network can only process a few transactions per second.
Compare that to Visa or Mastercard, which can reportedly
process 24,000 transactions per second – nearly 10,000
times more. Transaction costs are also very high.
Then there is the danger of theft of bitcoin wallets as had
happened to Coincheck in Tokyo in January where a mindblowing
46.3 billion yen (US$425 million) was stolen when
the exchange was hacked. Although the exchange owners
had promised to return all the money to its customers,
there was no timeframe set. And what if a bitcoin exchange
suddenly closes down?
While the underlying technology of cryptocurrency,
blockchain, is great and is the basis of the trust in
cryptocurrency (blockchain is decentralised with many
computers around the world recording a transaction), it
is still not backed by a trusted entity as is the case of fiat
money which is backed by governments.
Therefore, when it comes to property, it is recommended
that buyers and sellers refrain for the time being from using
bitcoin as a payment currency.
However, in the case of deferred purchase or rent-to-buy
where the buyer rents first with an option to purchase a
few years later, the contract can fix the price in both the fiat
currency and the equivalent value in bitcoin. To resolve the
issue of volatility, it would be prudent to introduce a clause
stating that should the bitcoin value diverges by say, 10% in
either direction of the price stated in fiat currency, then the
parties must transact in the fiat money.

18 ASIAN PROPERTY REVIEW COVER STORY
‘BITCOIN TOO
SPECULATIVE
FOR PROPERTY DEALS’
Asian Property Review interviews KL See, director of Metro Homes Sdn Bhd
who is also the deputy president of the Malaysian Institute of Professional
Estate Agents and Consultants (MIPEAC) on his views on bitcoin.
Bitcoin should be banned
in Malaysia - this is to
prevent the general public
with no knowledge of
bitcoin being cheated in the
cryptocurrency game.
1. APR: Which countries are you aware
of that have not allowed bitcoin to be used as
payment for property?
KL: While most countries favour bitcoin, others
don’t. They see it as an illegal currency. The fact
that bitcoin can be anonymously used to conduct
transactions between any account holders, anywhere
and anytime across the globe, makes it attractive to
criminal elements.
Among those countries which are not in favour are:
1) Bolivia: The Central Bank of Bolivia has
prohibited the use of cryptocurrencies across
the country.
2) China: It bans bitcoin as a means of official
payment. The banks have also banned it but
individuals are free to use it.

March - April 2018
19
3) Iceland: It is practising strict capital controls
which enable it to prevent the outflow of
Icelandic currency resulting in transactions in
bitcoin being banned as part of the country’s
Foreign Exchange Act.
4) Ecuador: The government has banned
cryptocurrency in the country. Additionally, the
nation has created its own Ecuador’s Sistema
de Dinero Electrónico (electronic money
system).
5) Vietnam: The authorities believe that this
cryptocurrency is not a legitimate payment
method.
6) Kyrgyzstan: All Cryptos are illegal form of
payment in this country.
7) Taiwan: The authorities believe that bitcoin is
not a currency and thus should not be accepted
by individuals or banking institutions. They
have banned Bitcoin ATM Installations.
8) Russia: The legal adoption of bitcoin is
uncertain in Russia. The Ministry of Finance
is seeking to pass the law to ban the digital
currency in the near future.
As bitcoin is not regulated by any central bank of
any country, therefore the only way to make it legal
is for the country to say yes to bitcoin.
Countries where bitcoin is legal are as follows:
• United States
• Canada
• Australia
• European Union
2. APR: Can you give examples of such
property transactions? For example, the recent
Sabah transaction where bitcoin was used as
payment for a few acres of land.
KL: I checked online and many parties are open
to accepting bitcoin but the actual transactions
might not be a lot yet. The recent Sabah case saw
the acceptance of bitcoin as deposit for the land
transaction but other related payments for the
deal still need cash such as fees for the transfer of
title, etc.
3. APR: With such volatility, is bitcoin really
viable as an alternative payment method for
property?
KL: A volatile bitcoin is not good as a payment
method for property as property transactions do
not complete within a short period. For example,
See Kok Loong
in Malaysia, it would need about 90 days for full
ownership to be transferred to the new buyer.
By then the value of bitcoin can be very much
different; hence it’s not fair for one party unless
there are other measures in place which could make
it very complicated.
4. APR: The recent (February 2018) 60% crash
of bitcoin value is causing a lot of uncertainty
about bitcoin’s future. What’s your opinion?
KL: My opinion is that the value of bitcoin will
continue to be uncertain as there is nothing ‘real’
backing the bitcoin. Its value mainly depends on
demand and supply; hence it is easily subject to
speculation. It tends to be more of a speculative tool
than an actual currency. Furthermore, every now and
then, there is a new cryptocurrency created because
“anyone” can just create a new cryptocurrency using
blockchain technology. The new currency will have
no standard and format. Therefore, I believe it is not
going to work and is merely hype.
5. APR: Another threat to bitcoin is theft of
the virtual currency as had happened end January
in Japan with cryptocurrency exchange Coincheck
which lost a whopping 58 billion yen (US$534
million) in customers’ virtual currency holdings or
‘wallets’ through hacking. How will the customers
get back their money or would they lose them all if
the exchange closes down?
KL: Virtual currencies like bitcoin are subject to
cybercrime globally and is no longer just a local
issue. Cryptocurrency exchange closing down is
another risk that customers need to face.
Bitcoin and other virtual
currencies would not
have a bright future in
Asia for the time being
because most countries
would not legalise it.

20 ASIAN PROPERTY REVIEW COVER STORY
6. APR: Would regulation be better than a
direct ban on bitcoin? Or should bitcoin be totally
unregulated? If regulation is better, what would
be the ideal sort of regulation for this virtual
currency?
KL: Bitcoin should be banned in Malaysia but
people who are into it can still trade offshore. This is
to prevent the general public with no knowledge of
bitcoin being cheated in the cryptocurrency game.
Cryptocurrency
exchange closing down
is another risk that
customers need to face.
7. APR: Other cryptocurrencies like ethereum
and ripple are also popular. With so many to
choose from, how do you decide which one to buy?
KL: If I were to buy a virtual currency, it would be
a speculative move and I would buy the one that is
low in value at the initial stage. Also, be prepared
to lose 100% of the value. To me, it does not have
the value yet and is merely speculation or similar to
buying a lottery or gambling.
8. APR: With China, South Korea and India
not looking favourably at bitcoin (the exception is
Japan), bitcoin doesn’t seem to have a bright future
in Asia. What’s your take on that?
KL: Bitcoin and other virtual currencies would
not have a bright future in Asia for the time being
because most countries would not legalise it.
9. APR: Do you think the value of bitcoin can
be wiped off completely one day?
KL: Goldman Sachs’ Steve Strongin has said in
a report dated Feb. 5: “Most digital currencies
are unlikely to survive in their current form, and
investors should be prepared for coins to lose all
their value as they’re replaced by a small set of
future competitors.”
Personally, I believe the value cannot be completely
wiped off one day as there is still a group of hardcore
bitcoin supporters and the moment there is demand,
there is a price for Bitcoin.
10. APR: What’s your advice now for
bitcoin investors especially those in Malaysia who
are now being investigated by the Central Bank
and/or Income Tax department?
KL: My advice is that as a citizen, please follow the
law and declare your income to the Income Tax
department and if you are not involved in any money
laundering or illegal business, Bitcoin is just a form
of high risk investment for you. If you have made
huge profits from bitcoin, then declare it to the IRB
and if they feel that it is income in nature, then pay
your tax. If they exempt it because they deem it as
capital in nature, then you can save your tax. The
Central Bank controls the outflow and inflow of
the ringgit and you need to declare your purpose
accordingly. If they approve the fund transfer, then
it is good to use to buy anything including bitcoin.
Also, any cryptocurrency exchange operating in
Malaysia should supply their customers’ details to the
Central Bank/Income Tax Department if required to
do so. This is because it involves the financial market
of Malaysia if the amount is not tracked properly.
11. APR: Would you say anonymity is still
preferred for bitcoin transactions in view of its
potential to be used for money laundering and
tax evasion?
KL: I don’t think it is a good idea to use bitcoin for
transactions because of its uncertain and speculative
nature. It is also being looked upon as a moneylaundering
and tax evasion tool, therefore, it will
be subject to a lot of unnecessary hassles especially
for big transactions. Furthermore, for property
transactions, many other parties are involved, for
example the land office, legal firm and financial
institutions, etc.

INVESTMENT
What, where, when and how - are crucial questions
real estate investors want to know.
We give you all that sourced from around the world.

March - April 2018
23

24 ASIAN PROPERTY REVIEW INVESTMENT
TOP 8 FORECASTS
IN 2018
BY GAVIN TEE
The Malaysian property world as we know it will evolve into a different landscape
with noticeable changes starting from 2017 and becoming more pronounced in 2018,
said renowned expert, Dato Sri Gavin Tee.
“After the bad times from 2014 – 2018
(1st quarter), I foresee a change of luck,”
property consultant Dato Sri Gavin Tee
said during a press conference recently. He
described the change as similar to a V-shape
development curve. “From 2018, we will be
starting to climb up,” he forecasted, adding
that this was based on his analysis of factors
influencing the past, present and future.
Tee was speaking at Swhengtee’s 11th Annual
Property Forecast Talk, which was held on 28th
Jan 2018 at Swiss Garden Hotel, Kuala Lumpur.
His 8 predictions are as follows:
1.
EVOLUTION TO SHARING
AND CORPORATE TYPES
OF INVESTMENT
Our investment strategy has to adjust to
world market changes. We cannot just invest
individually unless it’s in a matured market.
However, we can pool together our resources and
invest as a corporate entity such as in the case of
crowdfunding, managing hotels, projects or even
offices. So, the future of property investment may
evolve into sharing types of investment. In some
cases, we may not even own the share but only the
right of use, for example, in China, citizens can
only have the right of use of the property for 30
years or longer. Other new examples are co-living
or adult dormitories. Gone are the days when
people traditionally buy for the next generation.

March - April 2018
25
2.
SHIFTING OF
COMMERCIAL HOTSPOTS
Due to the way cities are developed especially
developing cities in ASEAN, new areas or cities
are always being built. As such, new hotspots
are created all the time. For example, in Kuala
Lumpur, the commercial hotspot used to be
the Golden Triangle ( Jalan Sultan Ismail, Jalan
Raja Chulan) and Jalan Ampang. However, with
new mega developments coming up such as
TRX, Bandar Malaysia and even Cyberjaya and
Putrajaya, the hotspots are shifting to the latter.
Technology has also played a part.
Tenants, especially multinationals and globalised
businesses prefer newer premises with more
modern infrastructure like upscale amenities and
facilities including proximity to transportation
links such as the MRT, LRT, and energy
saving facilities like solar power panels, green
environment as well as super fast Internet and even
the office space configuration which tends towards
large open spaces with co-sharing. Some are
even integrated with lifestyle elements including
shopping malls and eateries like those in TRX.
This is the new reality of office spaces and is the
future. Kuala Lumpur is currently transitioning
into such a metropolis.
This phenomenon can be seen all over ASEAN
cities including Jakarta, Bangkok, Phnom Penh
and Vientiane and not just in Kuala Lumpur. A
combination of factors such as globalisation, BRI,
and ASEAN integration are creating new zones
where regional headquarters are attracted to. These
offices which are built using the latest technology
will also demand higher rentals and price points.
Kuala Lumpur is currently transitioning into such
a metropolis.
So, unless the older office buildings can adapt or
modify to the new requirements or even refurbish,
more tenants from these will move to the new
modern offices.
To survive, these older office buildings can either
be repurposed to spaces that are in demand such as
storage, budget hotels, or tech hub. It’s the same
story with the oversupply of shopping malls. Some
20% may close down in the near future – so in
order to survive, they need to be repurposed. Even
the biggest and most popular shopping malls like
One Utama have added in entertainment elements
to attract more footfall.
Gone are the days when
people traditionally buy
for the next generation.

26 ASIAN PROPERTY REVIEW INVESTMENT
4.
TOURISM BOOM IN NEXT
5 YEARS
People on Petaling Street in Kuala Lumpur.
3.
LIGHT INDUSTRIAL ZONE
CRISIS
As Internet commerce undergoes exponential
growth, ways of storage and delivery have
totally changed. Most retailers now place their
inventories for the purpose of online sales in
a centralised centre such as Jack Ma’s Alibaba
regional distribution hub (part of the Digital
Free Trade Zone at Aeropolis KLIA). This leaves
many light industrial zones with few takers
especially those built on small sites with a lack
of infrastructure support. They will be overtaken
by the big new industrial parks coming up which
has the added advantage of government support
and which attracts international players due to the
many supporting infrastructure built around it not
to mention its strategic location.
Tourism properties will be Malaysia’s best
investment from 2018 onwards partly due to the
government’s push in this direction. Budget 2018
has designated 2020 as Visit Malaysia Year and
has proposed to set up an RM2 billion fund for
SMEs in the tourism sector.
Malaysia has so far enjoyed the privilege of an
abundance of natural and man-made attractions
attracting a flood of tourists from China and
ASEAN. We are also comparatively matured
in our infrastructure, education, medical and
tourism services; and are more organised with less
environmental and security problems compared
to our neighbours. Best of all, our multi-cuisine
food is the talk of international travellers. In
recent years, there is a spike in eco-tourism as local
tourism players realise this is one of the top draws
in Malaysia.
However, Malaysia should not rest on our laurels
as our neighbours such as Thailand, Indonesia,
Vietnam and the Philippines are increasingly
attracting the share of the tourist receipts. This is
also partly due to their fast developing economies
which are attracting a lot of foreign investments.
These investments go into building new cities or
industrial areas, hence increasing the number of
attractions. In addition, the increasing population
and higher disposal incomes of the locals also
contribute to their domestic tourism economy.

5.
DURIAN – THE NEW
‘GOLD’
‘A durian tree can be a property’ – believe it or
not. The future of Malaysian durian exports looks
very rosy as increasing appetite for the pungent
smelling thorny fruit exceeded all expectations.
As the world finally wakes up to the fact that
Malaysian durians are the best in the world,
demand started to spike especially since the last
2 years after the Musang King variety became
spectacularly popular with Chinese Mainlanders.
Durian tours and buffets became very popular
and durian smallholders and sellers were reaping
immense benefits.
With the government now getting in on the
action, expect more innovation in the number
of varieties, shorter and year-round harvesting
periods, storage methods, and the development
of tourist durian towns including a durian
museum (Bentong).
As scientists start manipulating the genes of
durians, expect shorter trees with more fruits
and even trees that can have structures built
on top. In Perak, thousands of acres of durian
plantations have been started with an increasing
number of varieties and quantities. The supply is
indeed multiplying at a pace not seen previously
anywhere, any time in history. However,
oversupply is not an issue due to the increasing
industrialisation and centralisation of the
production process.
At the most advanced durian plantations, there
are machines that can immediately freeze the
durian after it drops to the ground; and thereafter
deliver immediately to you. The industrialisation
of the durian supply process ensures that supply
and prices stay constant as much as possible.
Downstream activities are also increasing to bring
a bigger variety of preserved durian products such
as cakes, biscuits, chocolates, ice cream, sweets and
et cetera to the market.
The supply of durians is
indeed multiplying at a pace
not seen previously anywhere,
any time in history.

28 ASIAN PROPERTY REVIEW INVESTMENT
6.
MEDIUM-COST
OVERSUPPLY
With the government’s encouragement, a lot of
low medium-cost housing has been built in the
last few years and more are coming onstream in
the next few years. If there are too many in one
area, say, 10,000 units, this causes an oversupply.
And if these properties are built far away from
transportation hubs, there is a problem with high
vacancies. This causes prices and rentals to fall.
Under such circumstances, it is better to rent than
buy as owning a home can be a burden. It will no
longer be a practical business proposal. This entire
scenario will change the property purchasing and
financing landscape which will never be the same
again like before.
The trend now is if it is a
medium cost place, it will be
forever medium cost if there
are too many of such units
within the same area.
In the past, medium cost housing can be renovated
to become like high end properties but if there
is a concentration of high density medium cost
units in an area, to upgrade is a near impossible
task due to the fact that these units might be of
lower quality build (due to the price pressure to
make them affordable). The uniformity of the
units also makes it more difficult to upgrade its
characteristics, not to mention the difficulty of
attracting new types of tenants, for example,
foreigners or students.
So, the trend now is if it is a medium cost place, it
will be forever medium cost if there are too many
of such units within the same area.

March - April 2018
29
7.
TECHNOLOGY CAN
CHANGE THE FORTUNE
OF A BUILDING
AirBnb for example has transformed ordinary
homes into commercial ventures while hotspot
locations have changed due to the ability of
technology to do away with certain types of
commuting. Think remote working and digital
nomads. People are able to stay further away
from their workplaces. At the same time, the
technology integrated into a building such
as sensors and high end security systems has
increased its value. Smart buildings are becoming
commonplace and sought after.
With the use of technology, a remote area can
be transformed into a livable, comfortable place
giving rise to small resort areas. This enables them
to be turned into eco resorts allowing small SME
operators an additional source of revenue. This is
not just happening in Malaysia but throughout
ASEAN where hotspots are now scattered due to
the advances in technology.
With the use of technology, a
remote area can be transformed
into a livable, comfortable place
giving rise to small resort areas.
8.
MORE G2G AND
CORPORATE CHINESE
INVESTMENTS
The Chinese were leading worldwide property
investments in a big way from 2013 but from
2017, they were hit by Chinese government
controls. Since then, investments from retail and
corporate investors have dipped but in terms of
government-to-government (G2G) investments
and corporate investments related to the Belt &
Road Initiative (BRI), they have risen. From 2018,
I foresee more players going into more functional
types of investments such as those related to
medical, education and tourism.

30 ASIAN PROPERTY REVIEW INVESTMENT
CONFISCATING
YOUR HDB FLAT
– WHAT YOU SHOULD KNOW
While this is the stuff of every Singaporean homeowner’s nightmare,
it is better to err on the side of caution by knowing
what happens when you break the law.
Khalil Adis is a speaker
and author behind
“Property Buying for
Gen Y”. You can reach
him at investorsclub@
khaliladis.com
In Singapore where 80 per cent of
the population lives in governmentowned
flats, (popularly known as
Housing & Development Board or
HDB flats), losing the roof over your head
is really a big deal.
Being government-owned, there are strict
laws and regulations in place governing HDB
flats. They include a minimum occupation
period (MOP) of five years and a minimum
rental period of six months per application
when renting out your HDB flats.
According to the Housing & Development
Board, this is necessary “as it may disrupt
the living environment and pose security
concerns for our residents”.
Take the example of two home owners
whose flats were seized in 2014 for
illegally renting them out to tourists. In
both cases, the two owners had openly
flouted HDB laws by renting them out
on a daily basis.
While there is no latest data as of 2018,
the numbers could be higher due to the
popularity of AirBnb listings. Between
January 2012 to 2014, for instance, the
HDB had seized 202 flats for breaking
the law.

March - April 2018
31
So what can lead to such confiscations?
Here are some of the common scenarios:
You illegally rent out your
property
Every HDB flat has a MOP of five
years. Thus, you are not allowed to
rent out your flat if you have not
reached the MOP.
You rent out for a short-term period
AirBnb type of accommodations
are not allowed in HDB flats as
the minimum rental period for
each tenant must be 6 months per
application. Thus, flat owners are
not allowed to rent out their flats or
bedrooms on a short-term basis.
You did not register with the HDB
after renting out your flat
Granted, you have fulfilled the MOP,
it is still against the law if you do not
register the particulars of your tenants
with the HDB.
Your tenants are involved in illegal
activities
Illicit businesses like prostitution in
the heartlands have become rife and
a common problem nowadays. While
the tenants are the ones breaking
the law, the onus is on the owners to
do regular spotchecks to make sure
your tenants are not involved in such
illegal businesses as this may affect
the harmony of your neighbourhood.
You bought a private property
before the minimum occupation
period is up
Owning a HDB flat is a privilege
and not a right. By buying a
private property in Singapore or
overseas, before the minimum
occupation period is up, you are
essentially denying a more deserving
Singaporean a roof over their head.
You have not been paying your
mortgage
This is a last minute resort if you have
persistently not been clearing your
arrears despite HDB’s best intentions.
In this case, the HDB has the right
to confiscate your flat. However, such
households will be given alternative
accommodation such as downsizing
to a flat that they can afford or
renting a flat directly with the HDB.
With the exception of the last scenario,
losing your HDB flat can have very grave
implications. Let’s take a look at them:
Implication No: 1
FINANCIAL LOSSES
Assuming you had broken the laws, the
HDB has the right to take back your flat
at the price that it was purchased after
deducting a penalty.
While the HDB does not leave you
financially destitute, this also means you will
not be able to enjoy the capital appreciation
on your flat.
Let’s take the case of a property agent, Poh
Boon Kay whose HDB flat was repossessed
by the HDB in 2010 after he and his wife
was found to have illegally sublet his home.
While they both had bought the HDB
flat from the open market at S$150,000,
he was reportedly paid S$125,000 after
deducting the penalties. At the time of the
confiscation, his flat was worth S$320,000.
That’s almost a loss of S$200,000!
Implication No: 2
NO ROOF OVER YOUR HEAD
Unlike the last scenario, because you had
broken the law, you’re on your own. This not
only creates a huge financial burden as you
will now have to either rent or buy a private
property, but also deal with the emotional
stress and uncertainty of not having a roof
over your head.
TAKEAWAYS
While HDB is an asset, it can also lead to
huge financial losses if you break the law.
The takeaway is this, it is always better to
err on the side of caution when it comes to
government-owned flats in Singapore as the
repercussions far outweigh one’s ignorance
and financial greed.

32 ASIAN PROPERTY REVIEW INVESTMENT
JAPAN IN 2018
CONDOS, BUDGET HOTELS,
SHARED OFFICES AND BITCOIN
As the Olympics nears, accommodation demand starts to soar; at
the same time, shared offices are becoming popular while BitCoin
inches closer to general acceptance despite wholesale theft of an
exchange’s entire virtual currency reserves through hacking.
Ziv Nakajima-Magen
is Partner & Executive
Manager, Asia-Pacific,
Nippon Tradings
International (NTI), which
specialises in assisting
investors in capitalising
on Japan’s vast property
market. He can be
contacted at: info@
nippontradings.com or
mobile +81 92 600 1613
Condos – or, more accurately, newly
or recently built residential condos, are
one of the only assets that’s gained in value in
2017 – not only in Tokyo, but all over the country. In
contrast, prices of land, houses and commercial property
have flattened out. A lot of investors have been moving from
commercial to residential, simply because yields are higher,
and the residential market is considered to be more stable overall.
Commercial rents are also forecast to drop, at least in Tokyo, which is
another reason to go for residential properties.
In central Tokyo specifically, as the 2020 Olympics draws closer, demand
is very high, and oversupply hasn’t really hit that hard yet – hotel vacancies
are going to be closer and closer to zero in the next few years, and a lot of
these buyers are local or foreign investors with an eye to the short term stay
hospitality market. Luxury or at least very comfortable, well sized properties,
in close proximity to major train stations, and with good facilities, are going at
a premium these days – but that doesn’t necessarily mean a sustainable market
post-Olympics, so still a case of “buyer beware”.
Hotel vacancies are
going to be closer and
closer to zero in the
next few years, and
a lot of these buyers
are local or foreign
investors with an eye
to the short term stay
hospitality market.
Budget accommodation –
Another asset class that has generated
a lot of interest due to the upcoming
Olympic Games is lower budget
hotels, 2 and 3 stars or guesthouses,
which is where budget or middleclass
tourists tend to stay. With
hotel vacancies in and around Tokyo
forecasted to be close to nil towards
2020, this is a popular investment
asset class as well, and will probably
become more popular over the next
couple of years.

March - April 2018
33
Shared offices– as covered here
previously ( http://asianpropertyreview.
com/v2/rise-modern-shared-spacejapan/
) , shared work spaces are a
big thing in Japan – and all over the
Asia-Pacific region. They are gaining
in popularity, and are the go-to choice
for startups, smaller companies, or
even larger companies with a flexible
staffing footprint, such as temporary
staff companies, legal offices, etc – to the
point where they’ve been eating up a lot
of prime office property, and pushing down
commercial rents.
Digital currency – not only BitCoin, but other virtual currencies, are doing
very well in Japan, with the government declaring last year that all digital
currency transactions will be free from consumption tax. There are already more
than 5,000 stores accepting BitCoin as payment nationwide, not including
a large eye-wear franchise with 334 shops, “Megane Super”, which has just
announced they’ll also be accepting the currency in all of their shops soon.
Japan also has its own share of other cryptocurrencies, including NEM, a
Japanese blockchain-based virtual coin that’s suffered a significant setback end
January, as 58 billion JPY’s worth (approx USD534 mil) of the currency has just
been stolen from Japanese virtual currency exchange Coincheck’s computers –
nearly the company’s entire NEM reserves. Coincheck has quickly announced
that they’ll compensate owners out of their own company funds, but the NEM
has still lost approximately 20% of its value as a result, and the entire market
capitalisation of cryptocurrencies plunged 10% as a result as well.
Regardless, more and more diverse
product spheres are now jumping on
the Japanese digital currency wagon,
with some property managers in the
real-estate sector accepting BitCoin
as well, and even one daring property
agency that has just announced that
they’ll be selling the country’s first
building – valued at approximately
USD6 mil – via a BitCoin
transaction in the coming weeks.
The company hasn’t commented on
other currencies, but it certainly does
expect to continue using BitCoin,
specifically, for future property
transactions as well.
One daring property
agency has just
announced that they’ll
be selling the country’s
first building – valued
at approximately
USD6 mil – via a
BitCoin transaction in
the coming weeks.

34 ASIAN PROPERTY REVIEW INVESTMENT
WHERE SHOULD
FOREIGNERS BUY IN KL?
Very much under the radar globally, Kuala Lumpur, the capital of
Malaysia, is in fact very much a hidden gem and is currently one of
the cheapest property hotspots in Asia.
There is more demand than supply of
housing in Kuala Lumpur based on
projected estimates obtained from
government statistics, says Tan Hwa
Chuan, Merger & Acquisition specialist for land
investment and development.
For foreigners interested to invest in property in
Malaysia, this is good news. It means the potential
for good rental yield and capital appreciation is high.
In Malaysia, foreigners should focus on Kuala
Lumpur for the best return on investment, Tan
advises. Why? This is because of the population
growth, high tourist arrivals, more educational
institutions being built, many big contracts with
China taking place, good transportation links as well
as its status as a regional shopping, transportation
and potentially, financial hub. This will generate
demand for rentals; for those looking to rent out via
AirBnb, the future looks promising as demand is
increasing for such accommodation.
“Assuming a foreign buyer wants to rent out via
AirBnb, he should focus more on residential
high rises with commercial titles such as serviced
apartments. These have no restrictions on AirBnb
short-term rentals compared to residential titles,” the
renowned speaker adds.
“As there is an oversupply of offices, avoid them
unless you can get rental yield of 6% and above. Also
avoid retail units unless the yield is over 7%,” Tan
told a group of Arab investors at a recent seminar in
Kuala Lumpur.
Tan Hwa Chuan
OLD IS GOLD
According to Tan who is also a developer and
founder of BIG Group of Companies, the best
area currently is the old KL city area between the
upcoming 70-acre TRX (Tun Razak Exchange) and
the 500-acre Bandar Malaysia. This area which is
bounded by Jalan Yew/Jalan Sungei Besi and Jalan
Tun Razak is reasonably priced compared to prices
in KLCC and TRX area.
Also, the old shops in the old town area are good
because they used to be very cheap in price. “Hence,
the goods and food they sell are cheaper compared
to those in shopping malls. This areas is also highly
populated and has a wet market, clinics, banks, schools
as well as many coffee shops. In fact, it has a lot of
character reminding one of KL some 20 years ago!”

March - April 2018
35
8 TIPS FOR FOREIGN INVESTORS
1. Buy in KL city area.
2. Buy new launch apartment (compared
with subsale).
3. Buy with Rebate / Discount of about 20%.
4. Buy with MM2H (Malaysia My 2nd Home)
status which will entitle you to a loan margin of
between 80% and 90%.
5. Buy with zero-down strategy.
6. Buy in old town area especially between TRX
and Bandar Malaysia.
7. Buy below RM1,000 psf
8. Buy commercial title apartment which
allows AirBnB.
Jalan Sungei Besi on a Sunday.
Photography by Jan Yong
The land cost in TRX which is the upcoming “Wall
Street of Malaysia” (HSBC Bank, Tabung Haji,
Mulia Group and Lendlease are confirmed owners)
is about RM3K to RM4.5K psf. Thus, new launch
apartments there are expected to sell at between
RM2K psf and RM3K psf.
On the other hand, a new apartment (400m to
TRX) in the same area is expected to sell at about
RM900 psf (which is half the price of those in TRX)
or thereabouts with the cheapest unit selling at about
RM580K. The gap in price is vast but the old area
enjoys all the same amenities and are near all the
iconic buildings in the heart of the city.
From that location, one can also walk to the nearby
IKEA new mall 150m away. Best of all, it is only
500m to the existing LRT stations (Pudu Station
and Chan Sow Lin Station) and is about 400m to
the new MRT stations (Cockcrane Station and TRX
Station).
Furthermore, within 500m walking distance are 5
shopping malls while Bandar Malaysia where the
upcoming KL-Singapore High Speed Rail terminus
will be built, is only 1 km away.
Scattered in this area also are 14 schools serving
about 40,000 students meaning there are 40,000
potential parents who could be potential buyers or
tenants. In addition, since this is an old town area,
there will potentially be a lot of upgraders.
Traffic-wise, a new highway, the RM900 mil Jalan
Tun Razak ( JTR) Traffic Dispersal Project will be
built which will ease congestion by about 30% in
this area.
TRX will also have seamless access to SMART,
Maju Expressway (MEX) and DUKE-3, making it
one of the most connected districts in KL.

36 ASIAN PROPERTY REVIEW INVESTMENT
FACTORS TO
CONSIDER WHEN
RENTING OUT
IN JAPAN
Letting your property in Japan is quite different from most
other countries. Priti Donnelly gives you the general idea.
Priti Donnelly is the
sales and marketing
manager at Nippon
Tradings International, a
proxy and buyers’ agency
representing foreign
investors with purchasing,
selling and managing real
estate in Japan.
Unlike other parts of the
world where real estate
investments focus on value,
Japanese properties are a
non-speculative investment mainly for
monthly cash flow. That’s not to say
there is no capital growth potential.
After two decades of inflation, signs
of economic progress have been quite
promising, trickling down to the real
estate market.
We have seen property values rise
between 2012 and 2016. Since Prime
Minister Shinzo Abe’s second term in
2012, the “Abenomics” plan produced
significant progress in consumer
confidence. Japan’s stock market
almost doubled in value, increasing
wealth of consumers. The yen fell
by nearly one third against the U.S.
dollar invigorating Japan’s export
industries. Unemployment dropped.
Entering 2015, Japan was positioned
on an upward cycle on the back of
the depreciation of the yen, partly
due to a surge of tourists, and partly
due to corporations relocating their
production from overseas back to
Japan. Although signs of economic
progress continue to appear promising,
stability is uncertain. Therefore,
investors turn to Japanese properties
not for speculative long-term value,
but for month-to-month cash flow
from rental income.
MAXIMISING YIELD
Prior to purchasing a property, as
part of your due diligence, you will
have a chance to find out about the
tenant’s history. If your tenant leaves

March - April 2018
37
earlier than expected, depending on
the profile and location, it could take
one to three months to repair, clean,
renovate, if necessary, and re-populate.
In some cases, where the location isn’t
very attractive, and market conditions
aren’t favourable, it could take as long
as six months.
To protect yourself against the risk of
extended vacancies, aim to purchase
properties with the highest yield
possible in a high occupancy area. If
you own one or two units, you would
be at a higher risk than holding a
larger portfolio in which you can offset
your losses in case of a vacancy.
Therefore, for a low-risk income
average, consider building your
portfolio to be able to diversify your
real estate assets to include properties
with lower yields (6% to 7% net pretax)
in metropolitan cities as well as
higher yield, single units (upwards of
8% net pre-tax), in industrial areas or
less central suburbs of the bigger cities.
RAISING THE RENT ?
Once you own a property, you might
be inclined to raise the rent for
additional profit. Raising or lowering
rents would not be common practice
as long as the same tenant is occupying
the unit. If you do raise the rent before
renewing the lease, your tenant will
probably not take the time to negotiate
with you. Instead, he will likely move
out to avoid any confrontation, leaving
you with a vacant unit.
Since rent rates were higher prior
to the economic downturn, some
investors prefer to find properties
occupied by the same tenant for
several years because their rent will
be higher than the current average.
Until that unit is occupied by a new
tenant, the rent is likely to remain
the same. Keep in mind however,
that when the tenant leaves, the
rent would drop to the current rate,
having an impact on the yield.
RENTAL LENGTH
Japanese leases are normally two years
and automatically renewed unless
the landlord notifies the tenant in
advance. But, you will find that laws
are tenant-oriented. The landlord
would be required to give six months’
notice to terminate a lease, and
tenants would need to provide one
month. A security deposit of one or
two months’ rent would be your best
protection in case a tenant decided to
move out mid-lease.
S MALL VS LARGE UNITS
Is it easier to rent out a large or
small unit? The ideal location for a
larger unit of 30 to 60 sqm would
be in a metropolitan area where
families have access to schools,
hospitals, and shopping. Larger
units are harder to rent than smaller
units, but once occupied, families
stay for the longer term.
Small units of 15 to 30 sqm are much
easier to rent because of Japan’s large
singles demographic. But, singles are
more likely to move. Large or small,
it really depends on the area, and, of
course, on your budget and any other
assets in your portfolio.
Investors turn to
Japanese properties
not for speculative
long-term value,
but for month-tomonth
cash flow
from rental income.

38 ASIAN PROPERTY REVIEW INVESTMENT
Kawasaki, Kanagawa, Japan skyline.
If you are
determined to
rent out units on a
short-term basis, a
better investment
would be to
consider owning an
entire building or a
house in a popular
minpaku area.
AGE AND CONDITION
OF BUILDINGS
Some investors shy away from an older
building on the assumption that if it’s
old, its condition is not great. The truth
is, the condition of a building does
not necessarily reflect its age. Older
properties can be safe investments if
they are well-maintained.
While 1981 was the turning point
for some investors as the year the
Building Standards Act was revised
for earthquake resistant construction
methods, some older buildings built
prior to 1981 can be retrofitted by
regularly renovating, repairing and
re-strengthening exterior walls to
bring them up to code. The condition
of a building does often dictate the
type of tenants in the area -- lower,
middle or high income earners.
Therefore, with careful due diligence
on building repairs and the building’s
accumulated funds, you can find a
less expensive, well-maintained, older
property occupied by tenants with
stable income.
SHORT-TERM RENTALS
Short-term rentals, known as,
“minpaku,” are becoming more
regulated in Japan; and are especially
popular in Osaka, Kyoto and Tokyo.
Minpaku refers to rentals less than
one month. Anything longer than that
is treated as a standard rental lease.
New legislative framework scheduled
to come into effect mid-2018 allows
owners to rent out their unit for up
to 180 days a year. While short-term
rentals could generate higher income
than long-term leases, the caveat is,
if you’re going to own an individual
unit in a co-owned building, building
management authorities can vote to
disallow short-term rental agreements
at any time. Therefore, if you are
determined to rent out units on a
short-term basis, a better investment
would be to consider owning an
entire building or a house in a popular
minpaku area.

40 ASIAN PROPERTY REVIEW INVESTMENT

March - April 2018
41
OFFICE
SPACE
DEMAND TO SURGE
IN MOST CITIES
Take-up levels across the major 25+ cities tracked in Asia Pacific
are set to surge to their highest levels in 2018, at 120 mil sq ft
(msf ), says consultancy.
The best is yet to come for the
office leasing market, as a solid
economic backdrop generates
broad-based employment annual
gains of nearly one million, says a Cushman
& Wakefield recent report. The consultancy
is optimistic that take-up rates will surge to
their highest levels this year.
Led by the tech sector followed by business
process outsourcing (BPO), demand is
expected to continue its upcycle despite
automation and artificial intelligence (AI)
technologies slowly making inroads into the
BPO industry.
In the Philippines, offshore gaming
operators which are now the second-largest
occupier of office space in Metro Manila
after the BPO sector, have been expanding
and providing another shot in the arm to
Metro Manila’s thriving office market.
Banks too, despite further rate hikes on the
horizon, are big occupiers of office space
as they remain better-positioned than
they have been in a long time, with higher
profitability and earnings growth amid
better economies and more constructive
regulatory environments.
“Rapid growth in the co-working sector is
on the cards and will be a key leasing force,
reflecting the influence of a millennialdriven
shift in how and where people
work, and myriad opportunities in secondtier
and fast-growing markets in the
region,” it says.
Source: Cushman & Wakefield

42 ASIAN PROPERTY REVIEW ADVERTORIAL
THE EVOLUTION OF KCC –
A DREAM TURNS
INTO REALITY
Every successful venture starts off with a vision
especially in the property development industry
where a beautiful creation is made a reality only
after years of dreaming, planning and executing
the plan. The evolution of KCC – from a dreamer to a
builder and artist to a nurturer began in 1983 in Muar,
Johor. From a small-time housing developer, it has since
grown from strength to strength and has now evolved into
a regional player with projects stretching across the country
including Johor, Melaka, Negeri Sembilan, Selangor and
Kuala Lumpur.
Founded by Dato’ Ker Chee Chuan, who had a dream –
that of building solid, beautiful and affordable homes for
the people, the group has come a long way since. Dato’ Ker
was instrumental in the success of the group which is rooted
in his own personal philosophy of putting in the hard work
to achieve a desired outcome and of being responsible
for every aspect of a business. Currently as Chairman, he
oversees the overall operations of the group in an advisory
role while his wife, Datin Tan Lih Pyng, oversees the
group’s administration and internal management.
Helping to transform the business to the next level is
their son, Ker Soon Yong, who is the driver of progress
and business expansion across the group. In 2007, he led
the initiative to systemise KCC business operations by
obtaining the ISO certification. He is now leading the
establishment of the group’s hotel division starting with the
completion of the group’s maiden hotel in 2017.
With a hardworking and innovative team behind them,
KCC is a company to watch in the years to come. Its
corporate culture emphasises heavily on knowledge and
commitment. Employees are constantly upgrading their
skills and working smart and efficiently. At the same time,
they are committed to the company’s philosophy of building
‘Desirable Homes Made Affordable’.
to outdo the competition by coming up with the best in
design, convenience, affordability, location, amenities, and
return on investment, among others.
As a result, from its days of building boutique residences
and commercial units to its current undertakings in
large-scale mixed developments, the company, under
KCC Holdings Group, continues to evolve into a more
progressive and advanced entity.
Among the highlights of its CURRENT PROJECTS are:
• Verge 32 @ Melawati, comprising 32 units of
double and triple-storey semi-detached houses and
bungalows perched on a hill in a gated and guarded
neighbourhood that is surrounded by the majestic vistas
of Kemensah’s ridgeline.
• Maharani Ayu II @ Muar, comprising 60 units of
double and triple-storey cluster homes nestled in a
prominent residential address just minutes away from
the city of Muar.
• Rivercity Business Park @ Batu Pahat, comprising 43
units of triple-storey semi-detached, double frontage
and single frontage shop offices, where semi-detached
concept is a first in Batu Pahat; it also integrates
lifestyle elements fulfilling recreational, entertainment
and business needs all under one business park.
Rivercity Business Park
Ultimately, the staff are committed to ensuring that the
company is nationally recognised as a leading, reputable,
reliable and preferred housing developer. Employees are
motivated to do their utmost best to raise the bar and

The number of successfully COMPLETED
PROJECTS highlighted here are a testament of KCC’s
exemplary track record; they include:
• Taman Ametis @ Tampin which features 130 units
of high-end double-storey terrace units, double-storey
semi-detached units and two and a half-storey semidetached
units, tucked on rolling hills amid emerald
foliage yet close to Tampin town centre.
• The Senai Garden @ Iskandar Malaysia (Phase
1) which features 264 premium apartment units
built within three blocks in a gated and guarded
development situated on eight acres of freehold land in
Senai township.
• Klover18 @ Taman Bukit Serdang which consists of
a total of 18 exclusive units of triple-storey superlinks,
semi-detached homes and bungalows.
The Senai Garden Bird Eye View
Rivercity Residence
• Gemilang Heights @ Kulai which features a mix
between 130 units of double-storey semi-detached
homes and double-storey cluster homes in a gated and
guarded enclave in Kulai.
FUTURE PROJECTS HIGHLIGHTS
In the pipeline are a number of transit-oriented projects
across Malaysia that are targeted to unfold in 2019.
They are as follows:
• KCC City - Spanning 12 acres on a prime location
along Jalan Bakri, Muar’s busiest street, it will be the
area’s first mixed commercial development comprising
shop offices, drive-throughs, hypermarkets and
residential apartments with attached retail stores. It will
commence work from the second half of 2018 and is
expected to be completed in five years over two phases.
• The Senai Garden (Phase 2) - As an expanded
expression of Senai Garden’s low density luxurious
Phase 1, Phase 2 consists of two blocks that offer 2 and
3-room units, totalling 128 units, giving a grand total
of 392 units that include Phase 1.
• Rivercity Residence – Set to be Batu Pahat’s most
prominent landmark, this low-density residence comes
with a comprehensive range of resort-style facilities,
and is connected to Rivercity Business Park.
Besides being a builder, the artist that is inherent in KCC’s
corporate DNA will be taking their mission of “building
beautiful and ‘value-for-money’ homes’ one step further
by venturing into building hotels. Through KCC Hotels,
they will be creating exceptional, one-of-a-kind staying
experiences that induce guests to return. The company aims
to develop a new hotel every five years, all of which shall
be in partnership with other hotel brands that will lend
management support on KCC’s behalf.
The grand plan has already been set in motion; the Impiana
Hotel Senai, completed in 2017, is the first 4-star hotel in
Senai, Johor and is managed by the prestigious Impiana
Hotels & Resorts Management Sdn Bhd. The 172-room
luxurious hotel offers a ballroom, swimming pool and
international F&B outlets.
Dreaming, building, and producing artistic creations are
the work aspects but what completes and makes whole the
company’s genetic makeup is its impact on society – the
nurturer aspect that takes corporate social responsibility
very seriously and has a report card to show for it -
• Police Bit Handover Campaign & Open House
Ceremony @ Taman Impian Senai, Johor
• Crime Prevention Campaign For Children @ Johor
• Collaboration with Maxx Sports for the National
Open Badminton Championship, KCC-Maxx
Trophy @ Johor
• Pro Bono Consulting Service @ SJKC Chung Hwa
Ketiga, Johor

44 ASIAN PROPERTY REVIEW ADVERTORIAL
DREAM STAY
@ IMPIANA HOTEL SENAI
Impiana Hotel Senai injects a whole new level of accommodation experience
near Senai Airport in Johor Bahru.
Waking up from a dream truly refreshed is as good
as it gets when it comes to accommodation.
At Impiana Hotel Senai, Johor Bahru, this is
what the hotel strives for – a home away from
home and a sleep that’s full of sweet dreams.
Located at Senai, a rapidly developing township in Johor
Bahru, Impiana Hotel Senai is the first 4-star business hotel
and is set to cater to the needs of business and leisure travellers.
Like a breath of fresh air, it brings hotel accommodation
to a whole new level in the very well connected area. It is
accessible within a few minutes from the Senai airport and at
least a 30-minute drive to Singapore and Malaysia Customs,
Immigration & Quarantine (CIQ) facility and Tuas Link 2.
It is also within the neighbourhood of Johor’s main industrial
and commercial areas as well as local tourist attractions such
as Legoland Malaysia and Hello Kitty Town.
HIGH SPEED INTERNET AND
THE WORKS
Each of the 172 guestroom is equipped with an individually
controlled air-conditioning unit, dedicated workspace with
high-speed internet access and modern amenities.
For conferences and meetings, the hotel offers a grand
ballroom and two meeting rooms that are fitted with stateof-the-art
audio and visual technology, LCD projector,
television and retractable projection screens.
When not dealing with business, guests can enjoy a host of
leisure facilities at the hotel – among them are Impiana’s
signature infinity swimming pool, a fitness gym as well as
reflexology treatments at Chill Reflexology and Acupressure.
The hotel also offers international dining options at the Club
Lounge where guests staying at the Executive Floor can enjoy
both the delectable food and be serenaded by the resident
pianist. The LivingRoom serves drinks and light snacks while
The Tiffin offers all-day dining. If you like spectacular views,
dine at the Pool where the dining experience is enhanced by
the beautiful surroundings.
Impiana Hotel Senai is built by KCC Group under its
KCC Hotels section. It plans to build one hotel every five
years in partnership with other hotel brands that will lend
management support such as the prestigious Impiana Hotels
& Resorts Management Sdn Bhd.

March - April 2018
45
VERGE32 @ MELAWATI –
REDEFINING PARADISE
With panoramic hillviews and nestled within a guarded haven close to Kemensah
Forest Reserve, 32 distinctive houses are set to redefine living in paradise.
- not a number usually associated with
anything significant. But at Verge32 @
Melawati, a collection of 6 bungalows and
26 semi-Ds will redefine your view of an
exquisite and tranquil abode. Here is where you live amidst
lush greenery; the sound of birds chirping in the morning,
rustling of leaves when the wind blows, breathtaking
panoramic views – all conspire to instil a peaceful and serene
ambience within a home designed to please all your senses.
Tall trees, manicured leafage and grassy lawn play a part in
the architectural artistry, composing an alluring sanctuary
that redefines contemporary aesthetics and draws you into
a serene paradise. The 5-acre low-density development
is sited at the foot of Bukit Tabur which is known for its
magnificent undulating spine and breathtaking vantage
point of the Klang Valley.
At Verdue bungalows, the smallest detail is given significance,
from the flow of natural daylight and ventilation within
every unit to the high ceiling living hall; to the spacious
master bedroom with private balcony complete with ensuite
bathroom fitted with luxurious fittings and finishings.
Dip in the private pool or bathe in the sunshine by the pool
– this tropical paradise is reserved for only a select few. These
2 and 3-storey villas, with built-ups ranging from 4,822 sq ft
to 6,180 sq ft are personification of an opulent poetry that
speaks of your achievement. Be among those who appreciate
the finest things in life.
Each bungalow comprises 4 bedrooms, 1 storage room
and 5 bathrooms. Selected configurations also come with
a maid’s room.
VERDANT SURROUNDINGS
Nearby, enjoying similar lush greenery and views are 26 semi-
Ds that exude a class of their own. With its private outdoor
garden, the 2 and 3-storey homes are offered in built-up
area of between 3,375 sq ft – 4,190 sq ft. All layouts offer 4
bedrooms and 4 bathrooms.
As with the bungalows, the semi-Ds feature grand double
volume foyer design, high ceiling design for all floors,
private balcony, parking spaces for three cars and the most
sophisticated smart home system.
Close to Kemensah Forest Reserve, this gated and guarded
haven is expected to be completed by 3Q of 2018. The
exclusive Melawati neighbourhood is only 18 minutes’ drive
away from Kuala Lumpur City Centre and is accessible via
major highways such as DUKE, MRR2, AKLEH, Genting
Klang -Pahang Highway and more.
Awarded 5-star Best Property Single Unit and 5-star Best
Interior Design Private Residence Malaysia at the prestigious
Asia Pacific Property Award, Verge32 @ Melawati is built by
KCC Holdings Group, a builder of distinction since 1983.
For enquiries, please visit www.verge32.com and www.kccdev.com.my

WORLD VIEW
Our EXPERTS give their opinions on selected global hotspots

JAPAN
THAILAND
MALAYSIA
SINGAPORE
CAMBODIA
PHILIPPINES
INDONESIA

48 ASIAN PROPERTY REVIEW WORLDVIEW
Blue Water and Green Hills of
Dominica in the Caribbean
FAST TRACK
TO YOUR SECOND PASSPORT
With entry restrictions or even a ban for citizens of several
countries implemented in recent months, it becomes
imperative for such citizens especially business people
and investors to get a second passport that allows them
unhindered access. Asian Property Review talks to Dr
Sadir AlKherdaji, managing director of Cham Consulting
Ltd which has offices in Malaysia and Seychelles about the
viability of such passports.
Dr Sadir AlKherdaji
APR: Based on the Citizenship Index 2018
prepared by your company, which 5 countries are
the most popular for getting a second citizenship?
SA: The following countries are the most in demand
for second citizenship by investment:
• Grenada
• St. Kitts & Nevis
• Antigua & Barbuda
• Dominica
• St. Lucia
APR: Which countries allow purchase of property
as the sole criterion for granting citizenship?
SA: All the above-mentioned countries in addition
to Bulgaria have both ‘donations’ and Real Estate
investment options. However, Cyprus has the
option of property purchase as the sole criterion for
granting citizenship. On the other hand, Malta has
the contribution option only as a sole criterion for
granting citizenship without any real estate option.
APR: Are the countries concerned that the
potential emigrant comes from a country that does
not recognize dual citizenship e.g. Malaysia and
Singapore?
SA: There is no concern at all as the aforementioned
countries do not disclose this matter (i.e. granting of
second citizenship) to the original countries of the
applicants.
APR: Which countries ensure that you get back
your capital (investment) fully after a certain
minimum investment period?
SA: All the aforementioned countries allow the
applicants to sell off their properties after 5 years;
however, the applicants will lose the government
and processing fees, due diligence fees which are all
paid to the government at the time of making the
application. This is in addition to the professional
fees that we will be charging. The most interesting
part is that we have good deals with the developers

March - April 2018
49
COUNTRY FACT SHEET
CARIBBEAN
EUROPE
Antigua &
Barbuda
Dominica
St Lucia
St Kitts &
Nevis
Grenada
Cyprus
Malta
Population Size
100,963
73,543
188,025
54,821
107,783
1.17 Million
436,000
Country Area Size
440 Km 2
750 Km 2
617km 2
174 km 2 -
(67 sq mi)
344km 2
9.251 km 2
(3,572 sq mi)
316 km 2 (122 sq
mi)
Capital City
St. John’s
Roseau
Castries
Basseterre
St. George
Nicosia
Valletta
% Economy
Growth (GDP
2016)
4.4%
0.9%
0.7% Growth
3.6%
1.9%
3.5% Growth
5%
GDP
$1.449 Billion
$525 Million
$1,379 Billion
$916.9m
$1.016 Billion
$19.8 Billion
$10.9 Billion
Import & Export
$703M Im /
$220M Ex
$186.5M Im /
$81M Ex
$642m Im /
$146m Ex
$261m1m /
$78m Ex
$281m1m/$44
.2m Ex
$7B Im /
$3.75B Ex
$6.2B Imp $ 3B
Ex
Unemployment
Rate
14.50%
23%
17%
4.50%
28%
11.60%
4.10%
Number Of Banks
18
7
12 Banks
11 Banks
19 Banks
63 Banks
27 Banks
Currency
USD/ E.
Caribbean
Dollar
USD/E
Caribbean
Dollar
USD / E
Caribbean
Dollar
USD & E
Caribbean
Dollar
USD/E
Caribbean
Dollar
Euro
Euro
Language
Spoken
English, Creole,
French
English,
Creole, French
English, Creole,
French
English, Creole,
French
English,
Creole, French
Greek,English
Maltese, English
Number of
Universities
2
8
7 Universities
10 Universities
5
27
3
Prime Minister/
President
Gaston Browne
Roosevelt
Skerrit
Allen
Chastanet
Dr. Timothy
Harris
Keith Mitchell
Nicos
Anastasiades
PM Joseph
Muscat
Head of State
Queen
Elizabeth 2
Queen
Elizabeth 2
Queen
Elizabeth 2
Queen
Elizabeth 2
Queen
Elizabeth 2
President
Marie-L-Coleiro
Preca
Number of
Embassies
Abroad
3
5
5
7
5
42
24
Number of Tourist
per year
250,000
-
348,000
Tourist (2016)
125,000 Tourist
(2016)
144,000
Tourist by Air
3.1m(2016)
2m(2016)
Number of
International
Airports
1 Airport
0 International
2 Airports
2 Airports
2 Airports
4 Airports
1 Airport
Daily Flights
Arrivals
20 Flights
0 International
7 Flights
15 Daily
10 Daily
100 Daily
S2
Legal Structure
English
Common Law
English
Common Law
English
Common Law
English
Common Law
English
Common Law
English
Common Law
English
Common Law
Number of
Hospitals
2
2
4
4
7 Hospitals
19 Hospitals
8 Hospitals
Number of
Mosques
0
1
1
1
1
13
1
Tax on Global
Income & Assets
No
No
No
No
No
No
No
Employee Income
tax rate
8-25%
15-35%
10%-30%
None
10%-30%
0-30%
0-35%
Inheritance/
death Tax
No
None
None
None
None
None
None
Corporation Tax
on Profit Made
25%
25%
33.30%
33%
30%
12.50%
35%
Courtesy of Cham Consulting Ltd.

50 ASIAN PROPERTY REVIEW WORLDVIEW
CITIZENSHIP INDEX 2018
CARIBBEAN CITIZENSHIP
EUROPEAN
CITIZENSHIP
EUROPEAN RESIDENCY PROGRAMS
Antigua
Dominica
St Lucia
St Kitts
Grenada
Cyprus
Malta
Bulgaria
Greece
Portugal
Malta
Cyprus
Spain
Time to
Passport
3 Months
3 Months
3 Months
3 Months
3 Months
6 Months
14 Months
6 Years
8 Years
6-7 Years
Not Issued
7 Years
10-11
Investment
Option from
$400,000
$200,000
$300,000
$400,000
$275,000
€2m
€350k+
€500k
€250k
€500k
€500k
€300k
€500k
Contribution
Option (Single)
$200,000
$100,000
$100,000
$250,000
$135,000
/
€650k+
/
/
/
/
/
/
Contribution
Option (Family of 4)
$300,000
$200,000
$190,000
$300,000
$185,000
/
€725k+
/
/
/
/
/
/
Minimum
Investment Period
5 Years
5 Years
5 Years
5 Years
3 Years
3 Years
5 Years
5 Years
5 Years
5 Years
5 Years
5 Years
5 Years
Children upto
the age of
26
28
25
30
25
28
25
Any Age
21
21
Any Age
25
21
Time to getting
residency
/
/
/
/
/
3 Weeks
3 Weeks
4 Months 2 Months
4 Months
3 Months
2 Months
3 Months
Time to
getting PR
/
/
/
/
/
3 Weeks
3 Weeks
4 Months
5 Years
5 Years
3 Months
2 Months
5 Years
No.of Visa Free
Countries
125
115
121
127
119
146
152
143
153
155
152
146
156
Visa free to UK
/Schengen
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Global Ranking
of Passport
26th
35th
29th
25th
31
12th
7th
14th
6th
4th
7th
12th
3rd
Include Dependent
Parents
Over 65
Over 55
Over 65
Over 65
Over 65
Any Age
55+
No
Yes
No
Yes
Yes
No
Language test
required
No
No
No
No
No
No
No
No
Yes
Yes
No
Yes
Yes
Global Taxation
No
No
No
No
No
No
No
No
No
No
No
No
No
Physical landing
time or stay
5 Days
No
No
No
No
No
3 Weeks
No
No
2 Weeks
No
No
2 Weeks
How many
visits required
None
None
None
None
None
1-2 Visits
3 Visits
4
1
1
1
1
1
* This Chart is indicative only. Please allow for legal Government fees, Application fees & Professional fees when calculating pricing.
* Contribution Amounts & Government Fees vary depending on family size and age.
Courtesy of Cham Consulting Ltd.

March - April 2018
51
We have good deals with
some developers that ensure
a guaranteed income during
the aforesaid 5 years and in
some cases, we have a sell back
option to be granted to the
purchaser if he/she decides to
sell back the property to the
developer after 5 years at the
same original price.
Limassol, Cyprus
that ensure a guaranteed income during the aforesaid
5 years and in some cases, we have a sell back option
to be granted to the purchaser if he/she decides to
sell back the property to the developer after 5 years
at the same original price.
APR: What are the reasons often cited by
applicants for getting a second passport?
SA: It depends on the nationality of the applicant;
some of them (i.e. mainly from the Middle East) are
concerned with the political stability of their home
countries. Hence, they are keen to mitigate such
risk by getting second passports for them and their
family members so that they will be able to start a
new life without any kind of restrictions that are
usually imposed on nationals of high risk countries.
In addition, by getting a new passport, they will be
able to restructure their assets without being subject
to capital gains tax, inheritance tax, and et cetera.
Last but not least, it is very handy for businessmen
who need a solid travel document that enables them
to do their business globally with much less hassle in
terms of applying for visas.
APR: In the case of the Caribbean countries, are
the investment options fully refunded after the
minimum investment period (including interest)?
SA: There will be no refund to the contribution
amount as it is considered as a one-off nonrefundable
payment. On the other hand, investing
in Real Estate allows the applicant to sell off the
property after five years after getting their new
citizenship which is for life.
APR: Are there any disadvantages to such
citizenships?
SA: From the long experience that we have so far,
we find that these programs present a fast track
and safe solution to those in need of them. There
are no adverse effects as they are governmentinitiated
programs without any legal or validity
risks. Furthermore, the applicants will be subject to
a thorough Due Diligence process initiated by the
relevant government agencies in order to ensure the
clean background of their new citizens.

52 ASIAN PROPERTY REVIEW WORLDVIEW
THAILAND’S
EASTERN ECONOMIC
CORRIDOR
Thailand is betting on the EEC to revive its economy and plans to
come up with very generous incentives for foreigners in terms of taxation,
property rights and visas.
Dr. Ulrich Eder is
Managing Director of
the Bangkok-based
PUGNATORIUS Ltd. The
law firm specializes
in advising on foreign
direct investments into
Thailand.
“Think Asia, Invest Thailand” is
one of the marketing taglines
of Thailand’s investment
promotion agency Board of
Investment (BOI). However, when
foreigners think about Thailand,
they might not immediately think
of all the investment opportunities
but instead are attracted to other
renowned benefits of living in the
land of smile.
Thailand is afflicted by low economic
growth, combined with high
ambitions to catch up quickly with the
development level of industrialized
countries like Singapore, Japan and
Korea. To escape the middle-income
trap, Thailand’s legislators have in
recent years kickstarted a quick series
of incentives and promotions which
steadily evaporated or at least did not
show the desired results.
THAILAND’S BIGGEST
ZONE
The Eastern Economic Corridor
(“EEC”) is the new flagship
investment zone which will
significantly enhance the former
Eastern Seaboard. It aims to be
the manufacturing paradise of
Asia, designed to accommodate
next-generation industries and the
Thailand 4.0 new innovation-driven
economic model.
Covering the three Eastern
provinces of Rayong, Chonburi, and
Chachoengsao with a combined area
of 13,285 sq kms, the EEC is big in
many ways. To implement the EEC,
the government has laid out three
pillars: infrastructure developments,
super-generous incentives, and
investment facilitation.
The corridor is primarily intended
to accommodate investments in 10
targeted “S-curve” industries:
1. next-generation cars,
2. smart electronics,
3. affluent medical and wellness
tourism,
4. agriculture,
5. biotechnology,
6. food processing,
7. robotics for industry,
8. logistics and aviation,
9. biofuels and biochemical,
10. digital and medical services.
However, attractive opportunities are
present in other areas as well.
Not only will the particular foreignerrelated
legislation (land ownership,
business activities, work) be relaxed
for traditional hurdles like the
limited term of lease contracts, a
legal shortcut is also in the making.
Furthermore, some advantages might
be available for foreigners only and
not all regulatory changes will be
EEC-exclusive.

March - April 2018
53
SUPER-GENEROUS
INCENTIVES
The investment promotion package
clearly shows efforts to address the
typical impediments to investment in
Southeast Asia. The EEC arena will
improve its infrastructure and be linked
to international seaports, airports,
high-speed train lines and China’s Belt
and Road Initiative (BRI).
Although the final legislation (the
“EEC Act”) has not been published
yet, the following main tax advantages
can be expected:
1. Under the current regulations,
investment projects which
are promoted by the BOI can
achieve up to eight years of
tax holidays. In the future, the
exemption for corporate income
taxation (CIT) will be granted
for up to 15 years instead.
2. A fixed personal income tax
(PIT) rate of 17% will be
available for management,
investors and experts (i) with
“world class” skills, (ii) who never
worked before in Thailand; and
(iii) who now work in a BOIpromoted
company in the 10
“S-curve” industries.
3. Additional non-tax benefits will
be available regarding long-term
business visa, and extended terms
for land leases which are currently
limited to 30 years.
Having said that, the final legislation
is not yet clear and various delays in
the legislative process make a cautious
approach recommended.
Source: Thai Board of Investment
The final legislation
is not yet clear and
various delays in the
legislative process make
a cautious approach
recommended.
– Dr Eder
THE CHINESE FACTOR IN EEC
The US$44 billion EEC is expected to turn Thailand’s
Eastern provinces into a trade and industry hub creating
100,000 jobs a year by 2020.
With its connection to BRI (Belt & Road Initiative), the
government expects to receive US$43 billion for the EEC
over the next five years.
More than 80 Chinese companies have reportedly
set up manufacturing facilities, research centres, and
operational hubs at the Thai-Chinese Industrial Zone
at Rayong. Investment in the EEC from China reached
US$30 billion by the end of 2016 and is expected to
increase significantly for 2018 and beyond.
The well-connected region (it has deep sea ports, an
airport, rail lines, highways, and industrial estates)
is also a tourism magnet and is complemented by a
skilled labour pool. - Source: Various

54 ASIAN PROPERTY REVIEW WORLDVIEW
SINGAPORE,
MALAYSIA
TOP BELT & ROAD INDEX IN ASIA
Knight Frank’s Belt & Road Index ranks 67 countries in terms of their economic
potential, institutional effectiveness, demographic advantage, infrastructure
development, market accessibility and resilience to natural disasters.
Dubbed the “Project of the Century”,
the Belt and Road Initiative (BRI)
is expected to lift economic activity
and open up lots of opportunities for
countries within the area namely much of Asia,
the Middle East, and North and Eastern Africa,
according to Knight Frank which recently launched
Knight Frank’s Belt and Road Index. The index seeks
to rank the 67 BRI countries according to a number
of key criteria.
Its analysis shows that opportunities are widespread,
providing potential for real estate investment,
development and business expansion.
Notable projects underway include Gwadar Port in
Pakistan, large sections of the Kunming-Singapore
railway link, the Khorgos dry port between China
and Kazakhstan along with the first freight trains
from China to Tehran and London.
In terms of economic potential and demographic
advantage, Southeast Asian countries performed
above par, particularly Malaysia, Vietnam and
Brunei. Strong population growth, accelerating
urbanisation and rising affluence could drive solid
demand for housing, transportation links, valueadded
goods and services.
For Chinese companies, this presents a major
opportunity as countries like Indonesia, Thailand,
Cambodia and the Philippines are expected to
make major investments in infrastructure projects,
such as railways, road networks, and massive
township projects.
Except for highly developed countries like Singapore,
many ASEAN nations are mostly confronting major
infrastructure financing deficits. With support from
the Chinese government and Chinese commercial
banks, one of BRI’s main goals is to seed fund the
infrastructure projects along the BRI.
According to Knight Frank, up to now investment
along the BRI has been relatively patchy, in
sharp contrast with the steady stream of Chinese
investment that has targeted gateway markets of
… investment in developing
countries such as those in
Southeast Asia has so far been
comparatively small. The key
reasons: lack of regulatory
transparency, market depth
and liquidity, asset quality and
assured stability that gateway
Western countries offer.

March - April 2018
55
the US, UK and Australia. “While we are seeing
a slowdown in the Western trophy asset craze of
earlier years, investors are evaluating the assets
carefully and putting an emphasis on returns.”
Markets in developing countries, many sitting on
the Belt and Road, offer relatively higher yields
than Western markets. But apart from a few, albeit
large scale, residential developments, investment in
developing countries such as those in Southeast Asia
has so far been comparatively small.
The key reasons behind this is that developing
countries do not offer the regulatory transparency,
market depth and liquidity, asset quality and
assured stability that gateway Western countries
offer. Some of these developing countries sorely
need infrastructure investment, while others are
still developing a solid commercial real estate
investment market.
For these reasons, Knight Frank expects the bulk of
investment in real estate to continue to be in gateway
Western locations. Over the coming years, however,
opportunities in BRI markets could begin to emerge.
The improvement in infrastructure, multilateral trade
relations and market access, as in the case of many
BRI countries, bodes well for investment.
A major policy drive will channel funds towards
infrastructure building which, subsequently, could
lead to large scale real estate investment.
BAR Index Ranking for ASEAN
1st
6th
11th
19th
28th
31st
38th
51st
Singapore
Malaysia
Brunei
Vietnam
Indonesia
Thailand
Cambodia
Philippines
MAJOR BELT AND ROAD PROJECTS AND ACQUISITIONS
Energy Port Highway $ Economic Zone Railway
Major Projects Countries Types
1 Khorgos Gateway and Free
Trade Zone
China, Kazakhstan
2 Urumqi – Tehran Railway China, Kazakhstan, Uzbekistan,
Turkmenistan, Iran
3 Central Asia – China Gas
Pipeline
4 Kumport Terminal Turkey
5 Haifa Port Israel
6 Yanbu Refinety
Saudi Arabia
7 Moscow – Kazan
High-Speed Railway
8 China – Kyrgyzstan –
Uzbekistan Railway
9 China – Myanmar Crude
Oil and Gas Pipeline
10 Kyaukpyu Port and
Special Economic Zone
11 Gwadar Port and
Special Economic Zone
China, Kazakhstan, Turkmenistan,
Uzbekistan, Kyrgyzstan, Tajikistan
Russia
China, Kyrgyzstan, Uzbekistan
China, Myanmar
Myanmar
China, Pakistan
12 Gwadar – Kashgar Oil Pipeline China, Pakistan
13 China – Mongolia Cross-border
Economic Cooperation Zone
China, Mongolia
14 Power of Siberia China, Russia
15 Arkhangelsk Port Russia
16 Malaysia – China Kuantan
Industrial Park and Kuantan Port
China, Malaysia
17 Pan-Asia Railway China, Vietnam, Laos, Myanmar,
Cambodia, Thailand, Malaysia, Singapore
18 China – Thailand High-Speed Rail China, Thailand
19 Guangxi – Vietnam Expressways China, Vietnam
20 Melaka Gateway Malaysia
21 ASEAN Regional
Highway Integration
22 Cambodia – China
Cambodia
Comprehensive Investment
Development Experimental Zone
23 Thailand – Chinese
Rayong Industrial Park
China, Vietnam, Myanmar,
Laos, Thailand, Cambodia
Thailand
24 Trans-Asian Railway Network China, Kazakhstan, Russia, Belarus, Poland,
Czech Republic, Germany, Belgium,
France, Netherlands, Spain, UK
25 China – Belarus Industrial Park Belarus
26 Klaipeda Port Lithuania
27 Mombasa – Nairobi Railway Kenya
28 Hambantota Port Sri Lanka
29 Colombo International
Financial City
Sri Lanka
30 Kalibaru Port Indonesia
31 Tanjung Sauh Port Indonesia
32 Piraeus Port Greece
33 Doraleh Port Djibouti
34 Mombasa Port Kenya
35 Mohammed VI Tangiers Tech City Morocco
36 Noatum Port Spain
37 Zeebrugge Port Belgium
38 Abidjan Port Côte d’Ivoire
39 China-Egypt Suez Economic
and Trade Cooperation Zone and
Sokhna Port
40 Whangarei – Northport
Infrastructure Project
Egypt
New Zealand
Note: The list is not exhaustive and it includes major projects that involve the Chinese government and Chinese
state-owned enterprises
Sources: Bloomberg, South China Morning Post, Financial Times and various other media outlets
$
$
$
$
$
$
$
$
$
$
$
$
$

56 ASIAN PROPERTY REVIEW WORLDVIEW
OVERALL RANKING OF THE BELT AND ROAD INDEX
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
Singapore
Qatar
United Arab Emirates
New Zealand
China
Malaysia
Estonia
Bahrain
Bhutan
South Korea
Brunei
Israel
Oman
India
Mongolia
Maldives
Poland
Czech Republic
Vietnam
Lithuania
Hungary
Latvia
Slovakia
Georgia
Slovenia
Saudi Arabia
Albania
Indonesia
Montenegro
Laos
Thailand
Turkey
Croatia
Kuwait
Romania
Bulgaria
Jordan
Cambodia
Kazakhstan
South Africa
Serbia
Ethiopia
Macedonia
Myanmar
Sri Lanka
Turkmenistan
Moldova
Bangladesh
Egypt
Armenia
Philippines
Bosnia and Herzegovina
Lebanon
Kyrgyzstan
Azerbaijan
Timor-Leste
Pakistan
Uzbekistan
Russia
Tajikistan
Iran
Ukraine
Belarus
Nepal
Afghanistan
Yemen
Iraq
69.85
59.98
59.43
57.15
57.09
55.50
55.42
54.64
54.21
53.96
53.32
53.15
53.04
52.46
51.72
51.70
51.59
51.51
51.45
51.19
50.49
50.14
50.14
49.63
48.94
48.59
48.09
47.48
47.41
46.94
46.45
46.33
46.22
45.73
45.63
45.46
44.96
44.74
44.45
44.19
43.50
43.36
42.78
42.74
42.44
41.80
41.06
40.91
40.39
39.88
39.78
39.76
39.53
39.49
39.12
38.97
38.07
37.75
37.67
36.38
35.88
35.81
34.41
32.58
27.63
26.67
26.45

March - April 2018
57
BELT AND ROAD HOTSPOTS
Singapore
Singapore, with its strong fundamentals in
transportation, logistics and finance, is a potential
key player in China’s BRI. Strategically located
at the crossroads of East and West, and along the
BRI’s 21st Century Maritime Silk Road, Singapore
can expand its role as a global logistics and
transportation hub along the corridor. The island
state receives some 2,700 vessel calls daily and 6,800
flights weekly, strengthening its global position
as a key maritime centre, the world’s busiest port
and one of the largest air transportation hubs in
Southeast Asia.
Critically, Singapore’s coveted status as a key
regional financial centre and one of the largest
offshore Renminbi centres, provides a pivotal
platform for Chinese companies to go global or via
joint partnerships with Singapore companies.
The country’s strong track record in project
financing, with its established ecosystem of
insurance, legal and arbitration expertise, positions
it as a centre for providing numerous businesses
opportunities in the BRI. 60% of ASEAN
infrastructure projects are mainly financed by
Singapore-based banks.
According to the Ministry of Trade and Industry,
more than 6,500 Chinese companies have
Over the coming years, however,
opportunities in BRI markets could
begin to emerge. The improvement
in infrastructure, multilateral trade
relations and market access, bodes
well for investment.
established their presence in the city, almost twice the
number of companies compared with five years ago.
China remains the top expansion destination
for Singapore companies. In recent years, more
Singapore enterprises and projects have embraced
BRI-related policies and platforms to access the
Chinese market.
One key area is the development of governmentto-government
(G2G) projects, such as Singapore’s
signing of a memorandum of understanding (MoU)
with the Guangxi Government to jointly improve
connectivity between Western China and Southeast
Asia via Guangxi.

58 ASIAN PROPERTY REVIEW WORLDVIEW
BREAKDOWN OF THE BELT AND ROAD INDEX
Economic Potential Institutional Effectivenes Demographic Advantage Infrastructure Development Market Accessibility Resilience to Natural Disasters
Ranking BRI Country 25% 25% 20% 15% 10% 5%
1
2
3
4
5
6
7
8
9
10
11
Singapore
Qatar
United Arab Emirates
New Zealand
China
Malaysia
Estonia
Bahrain
Bhutan
South Korea
Brunei
48.92
60.10
48.64
36.01
56.81
48.51
35.24
36.98
64.78
37.74
55.46
87.69
63.47
66.52
98.76
37.17
58.43
82.40
44.45
59.73
70.24
66.61
44.90
57.68
53.18
37.41
58.94
49.42
28.54
69.03
57.92
39.03
45.52
78.55
50.84
62.84
53.80
54.62
54.33
56.15
71.46
19.71
67.81
28.82
100.00
49.31
57.01
34.85
94.86
62.64
70.42
50.11
41.58
46.02
48.94
98.77
100.00
97.61
88.49
82.55
89.39
96.74
94.83
87.65
87.82
89.59
12
13
14
15
Israel
Oman
India
Mongolia
38.42
36.52
62.40
52.18
69.01
55.12
42.54
52.02
37.54
71.87
49.77
50.91
52.31
45.37
33.83
19.15
62.56
46.92
72.08
82.41
93.66
85.09
79.74
87.41
16
17
18
19
20
Maldives
Poland
Czech Republic
Vietnam
Lithuania
44.41
35.68
31.42
52.85
37.40
37.02
71.09
77.23
38.03
76.00
69.07
32.72
33.13
60.11
28.00
32.43
51.24
48.50
38.98
52.59
78.73
62.98
60.41
72.99
46.62
95.77
87.46
87.99
71.31
93.77
21
22
23
24
25
26
27
28
29
30
Hungary
Latvia
Slovakia
Georgia
Slovenia
Saudi Arabia
Albania
Indonesia
Montenegro
Laos
31.30
38.77
38.65
42.86
27.51
37.27
35.74
48.61
31.07
58.83
63.53
72.24
70.15
60.11
77.14
43.18
48.25
42.16
52.07
28.49
37.17
23.80
32.44
33.45
33.26
48.75
50.48
51.17
35.44
62.55
49.33
50.35
44.86
33.43
52.74
47.78
33.19
30.94
41.81
12.21
76.62
55.04
51.77
77.46
39.28
69.07
75.33
58.13
89.87
63.80
85.75
91.52
90.92
88.70
85.72
93.10
89.59
81.98
85.59
87.75
31
32
33
34
35
36
37
38
39
40
Thailand
Turkey
Croatia
Kuwait
Romania
Bulgaria
Jordan
Cambodia
Kazakhstan
South Africa
33.52
42.94
26.39
46.69
36.54
29.80
29.92
56.05
39.22
24.33
40.51
38.68
63.19
43.06
57.10
55.57
44.82
24.18
35.82
55.77
59.13
46.45
34.09
48.68
33.03
32.16
40.63
50.11
37.96
44.40
43.66
41.52
45.39
39.61
38.75
38.67
42.15
25.60
37.28
42.19
55.84
58.54
59.68
27.17
56.55
75.31
71.86
74.96
77.09
47.64
79.63
91.02
84.68
98.04
82.89
87.11
92.74
66.38
95.82
83.76
41
42
43
44
45
Serbia
Ethiopia
Macedonia
Myanmar
Sri Lanka
32.14
64.52
34.65
61.35
47.21
49.38
19.04
44.10
18.64
44.84
32.42
58.92
36.93
53.59
37.18
35.70
13.96
35.50
18.18
29.45
69.91
43.64
58.97
56.84
34.37
85.68
84.52
89.67
72.30
82.71
46
47
48
49
50
Turkmenistan
Moldova
Bangladesh
Egypt
Armenia
58.81
36.93
56.90
43.73
33.39
9.58
35.26
21.75
20.93
40.05
47.49
36.82
58.93
41.31
31.69
15.57
32.71
21.06
35.94
27.35
81.93
63.94
34.68
57.65
64.04
93.47
87.04
56.67
96.16
93.63
51 Philippines
56.93
37.88
35.08
32.12
42.43
0.00
52 Bosnia and Herzegovina 32.67
38.90
37.85
30.66
54.18
85.65
53 Lebanon
29.89
24.70
35.28
42.99
77.26
93.00
54 Kyrgyzstan
40.96
23.24
42.44
20.62
73.96
89.31
55 Azerbaijan
25.91
27.69
45.39
31.13
73.09
93.24
56 Timor-Leste
46.58
26.24
46.63
8.59 56.11
90.83
57 Pakistan
45.68 20.77
50.33
23.93
38.92
78.19
58 Uzbekistan
55.20 14.30
44.22
17.60
42.90
92.11
59 Russia
24.00 24.85
34.63
45.08
75.48
84.41
60 Tajikistan 49.83
11.55
43.80 15.93
57.79
82.21
61 Iran 35.75 21.17
47.24
32.39
29.66
87.45
62 Ukraine 25.67 26.62
33.26
35.19
62.95
90.29
63 Belarus 18.89 27.38
37.36
33.54
55.83
95.16
64 Nepal 36.98 22.53
55.34
16.64
0.00
82.68
65 Afghanistan 39.12 6.18
48.40
6.41
17.72
77.87
66 Yemen 31.92 1.90
52.86
10.46
17.54
86.45
67 Iraq 30.05
7.51
39.35
10.01 29.38
95.10
Sources: International Monetary Fund, United Nations, World Bank, Transparency International, Germanwatch, Knight Frank Research

March - April 2018
59
Malaysia
Malaysia continues to benefit from China’s BRI due
to its strategic location along the economic corridors.
A large part of why China has invested heavily into
Malaysia is the deep diplomatic relations between
the two countries.
In November 2016, Prime Minister Najib Razak
led an entourage of government ministers and
business leaders in a visit to China and secured
record levels of bilateral deals, with 14 business-tobusiness
MoUs and agreements worth about US$35
billion in various areas such as trade and investment,
development of technology parks as well as supply of
goods and services.
In addition to that, 16 government-to-government
MoUs and agreements were also signed. These
include more than US$13 billion in soft loans from
China for the East Coast Rail Line connecting
Malaysian east coast states with the west coast, as
well as the Malaysia-China Kuantan Industrial Park
in Pahang.
The close ties between the two countries have
also led to the appointment of Jack Ma, founder
of China’s e-commerce giant, Alibaba Group, as
Malaysia’s digital economy adviser in late 2016 and
A major policy drive will channel
funds towards infrastructure
building which, subsequently,
could lead to large scale real
estate investment.
the subsequent formation of the KLIA Aeropolis
Digital Free Trade Zone (DFTZ) Park. The latter,
Alibaba’s first regional hub outside China, will be a
boost to Malaysia’s e-commerce roadmap.
In May 2017, during the Belt and Road Forum held
in Beijing, another nine business-to-business MoUs
with a total value of circa US$7.5 billion were inked.
Also noteworthy are the inroads made by top
Chinese developers into the Malaysian property
market and they include China Vanke, Country
Garden, Greenland Group, China Overseas Land &
Investment and China Fortune Land Development.
Cambodia
While China had been investing in Cambodia
long before the announcement of BRI, China’s
special relationship with Cambodia strengthened
significantly when Chinese President Xi Jinping
visited the kingdom in 2016 and purportedly signed
as many as 31 economic agreements, including
US$238 million in soft loans, US$89 million in debt
forgiveness and US$15 million in military aid.
According to Xi Jinping, bilateral trade reached
US$4.4 billion in 2015 and was forecast to reach
US$5 billion for 2016. China also pledged US$600
million in aid to Cambodia over the next three
years. Following the visit, there has been an increase
in activity from Chinese groups investing in
Cambodia which, in part, can be attributed to the
looser monetary controls on overseas investment in
BRI projects.
These include the announcements that China
Minsheng Investment Group had entered into a
joint venture ( JV) with local developer, LYP Group,
and would invest US$1.5 billion in a 550 hectare
mixed use scheme on the outskirts of Phnom Penh.
Guangzhou R&F Properties had teamed up with
Cambodia’s Royal Group to invest US$3 billion to
build luxury hotels in Cambodia, although this has
now been placed on hold.
There has been a number of smaller scale
developers focusing on luxury residential schemes,
but with the high-end condominium sector now
slowing, the focus is shifting towards commercial
and industrial development, as well as gaming and
hospitality in Sihanoukville.

60 ASIAN PROPERTY REVIEW WORLDVIEW
60% of ASEAN infrastructure
projects are mainly financed by
Singapore-based banks.
Indonesia
In relation to the BRI and to fund a massive
infrastructure program, China’s investment in
Indonesia has more than tripled since 2015 as
President Joko Widodo’s frequent trips and meetings
with Chinese President Xi over the past two years
have started to yield results. Supported by the
investment cooperation in more than 4,000 projects
over the last seven and a half years, China’s FDI
in Indonesia has grown by a staggering 1,024% to
US$1.9 billion in the first half of 2017, compared
with only US$174 million in 2010.
Besides investing in electricity, transportation,
infrastructure and mining sectors, Chinese
investors are also interested in investing in property
developments. Several large Chinese developers
including China Communications Construction
Group, China Fortune Land Development, China
Road and Bridge Corporation, China Sonangol,
Country Garden, Wuzhou Investment Group and
many others have entered the market over recent years.
The medium-term outlook for the Jakarta property
market remains cautiously optimistic with
opportunities and challenges. Despite the successful
local election and tax amnesty program in early
2017, investors are still adopting a wait-and-see
approach due to uncertainties relating to the political
situation as well as concerns over bank transparency
for tax purposes.
This sentiment will likely continue until the
presidential election in 2019 subject to a peaceful
outcome and improved economic conditions. Given
its large population, rising middle-income class
and strong commitment to accelerate infrastructure
projects and connectivity, Indonesia is expected to
remain an important investment destination for
long-term international investors including those
from China.

March - April 2018
61
Thailand
The fraternal bond of cultural and familial ties
between Thailand and China has been established
for over 200 years, but Chinese direct investment in
the property sector has been limited by Thailand’s
foreign land ownership restrictions. Sino-Thai joint
ventures have always played an important role in
the trading and manufacturing sectors but a notable
example in the property sector in recent years has
been the partnership between China’s Holley Group
and the Thai public-listed industrial estate developer,
Amata PCL. Together, they developed the Thai-
Chinese Rayong Industrial Park located in Thailand’s
Eastern Economic Corridor, which has benefitted
from China’s ‘Go Out’ policy, which encouraged
almost 100 Chinese manufacturers to invest US$2.5
billion in this park. It now employs over 20,000 Thai
staff and over 3,000 Chinese expatriate workers.
The recent announcement that HNA Innovation
Finance and CT Bright will contribute equally to
20% of a fund, which may reach US$5 billion within
the next three to five years, to invest in Thailand’s
US$43 billion Eastern Economic Corridor project
also has the potential to have a profound impact on
the area and competitiveness of the country.
Thailand’s role as a transportation and logistics hub
for China in Southeast Asia has been underscored
following the Thai cabinet’s approval for the US$5.2
billion, 256-kilometre railway from Bangkok to
the northeastern province of Nongkhai on the
border of Laos. Chinese expertise will be enlisted to
develop this first phase of a railway network that will
eventually link China to Malaysia and Singapore, via
Laos and Thailand.
Aside from the growing presence of Chinese corporates
in manufacturing and e-commerce sectors, we expect to
see more JVs to be formed in the hospitality sector as
a way to capitalise on the growing numbers of tourists
flocking to get ‘Lost in Thailand’, and expect further
Chinese participation in infrastructure developments
in rail networks and possibly even the Kra Isthmus
Canal project, which could shorten the Maritime Silk
Road by 1,200 km, thus reducing the shipping time of
Chinese commodities to Europe.
Philippines
Chinese investments in the Philippines have been
slowly gaining momentum over recent years. Earlier
informal investments came via Chinese-operated
online gaming companies that set up operations in
the country. These companies have the versatility to
operate out of any fitted or retrofitted space available
which is the reason why it is becoming one of the
fastest emerging sectors of the business process
outsourcing (BPO) industry.
Sources say of the US$26 billion revenues generated
by casinos in 2016, around 85% came from online
betting. Enhanced trade relationship with China was
the main objective during President Duterte’s state
visit in October 2016.
Together with an entourage of reporters and
businessmen, they managed to secure pledges
amounting to US$24 billion to fund mostly
infrastructure projects such as toll roads and railway
systems along with other investments.
The pledges were broken down into US$9 billion
of loans, with the remaining US$15 billion as direct
investments. However, it may take some time before
Sources say of the US$26 billion
revenues generated by casinos in
the Philippines in 2016, around
85% came from online betting.
these pledges come into fruition as they go through
the proper channels.
There are some Chinese groups that have expressed
willingness to invest in real estate and have started
looking for opportunities. Some have come via the
bulk acquisition of residential condominium units,
which are more likely to be used as accommodations
for large tour groups. Others are partnering with
local companies to make offers to undertake projects
such as building schools, hospitals and smaller
infrastructure projects under the government’s
private-public-partnership (PPP) program.

62 ASIAN PROPERTY REVIEW WORLDVIEW
HOW JAPAN IS
COPING WITH
CLIMATE CHANGE
For an island nation with 30,000 kms of coastline, Japan is seriously looking into
solutions for climate change which will inevitably impact many of its coastal
cities – meaning a shift in accommodation patterns is a possibility although no
concrete research has yet been known to be undertaken to date.
Ziv Nakajima-Magen
is Partner & Executive
Manager, Asia-Pacific,
Nippon Tradings
International (NTI), which
specialises in assisting
investors in capitalising
on Japan’s vast property
market. He can be
contacted at: info@
nippontradings.com or
mobile +81 92 600 1613
As we all know all too well –
the effects of climate change
and, more specifically,
global warming, are going
to drastically change almost everything
about the world we, and even more so,
our children and grandchildren, are
living in – and in the vast majority of
cases, for the worse.
Asia is one of the places where these
effects are going to hit the hardest,
according to scientists, who predict
an increase of approximately 50% in
rainfall in coming years – barring a
few countries such as Pakistan and
Afghanistan, which may actually
experience a decrease – and since
these rainfalls will be limited to fewer
and far more intense days annually,
the results, rather than prop up
agriculture production and vegetation
– will have the opposite effect that is
of destroying crops and man-made
structures through floods. Coupled
with the rising temperatures, typhoons
and cyclones will also become – as
they already are becoming – more
frequent and volatile.
Japan, which has 30,000 km of
coastline and is, essentially, a large
group of islands, is one of the
countries destined to be most gravely
affected by the recently amended
expectation of a 3-degree Celsius
average rise in global temperatures by
the year 2100 – with a devastating 3-7
degrees in the sea of Japan alone.
AGRICULTURE
Japan, which like many of its Asian
neighbours, relies on rice as the basic
staple food for all ages, will suffer
a serious blow unless it somehow
adapts, as rice production is expected
to drop by 50%, accompanied by a
doubling of production costs in the
next eight decades. Equally alarming
is the anticipated collapse of all coral
reef systems in the region, which
naturally spells disaster for marine
ecosystems and the extinction of
a huge proportion of the nation’s
seafood supply, on which it heavily
relies for both domestic consumption
and export.

March - April 2018
63
Aerial photograph of Tokyo, Japan.
ENERGY
The anticipated scarcity of
cooling water will lead to reduced
productivity in thermal power plants,
intermittent performance of hydropowered
installation due to uncertain
water flows, an increased reliance
on unsustainable fossil fuel, which
will further exponentially increase
the pace of the climate change in
a vicious circle and, eventually –
potential wars and conflicts over
limited power sources.
ECONOMY
A Japanese study as to the effects of
sea-levels rising conducted in 2013
and published in part by “The Japan
Times” has determined that the height
of waves hitting the coast would be
three times larger in the event of a
60-cm rise in sea levels combined with
a typhoon that is 10% stronger than
average. As a result, inundation zones
widen and concrete sea dikes can be
breached by extra-large waves, which
can cause subsequent damage.
Additionally, since groundwater in
coastal zones is directly linked to the
height of the sea nearby, when sea
levels rise, the groundwater table rises
as well. Soil in coastal areas can then
become saturated, causing it to be
vulnerable to liquefaction in the event
of an earthquake, of which Japan has
one of the world’s highest frequencies.
Low-lying coastal areas are
especially prone to the risk of
flooding and liquefaction, with the
coastlines around Tokyo Bay, Osaka
Bay and Ise Bay representing the
highest risk. Osaka is among the
world’s 10 most vulnerable cities
to rising sea levels, and is where
damages have the most devastating

64 ASIAN PROPERTY REVIEW WORLDVIEW
Many, who are also
aware of the fact that
climate change is
going to make things
worse, are choosing to
live away from coastal
areas, or in the upper
floors of buildings
– but as there is no
surveying of opinions
or data on the subject,
no accurate numbers
or levels of such
awareness have been
published.
potential - as economists project
that the city could suffer the loss or
damage of nearly U.S.$1 trillion in
assets owing to coastal flooding by
the 2070s—more than four times its
current economic risk (UCS).
Nagoya, which is also one of Japan’s
most vulnerable cities to climate
change, is also one the least prepared –
and is actually among the top 20 cities
with the largest growth of annual
flood losses in the Asia-Pacific region
between 2005-2050, according to “The
Third Pole”, the institution dedicated
to understanding and providing
solutions for Asia’s impending water
crisis and its numerous aspects.
HOUSING
The millions of people living in
and around the coastal areas of the
country are painfully aware of Japan’s
painful past, in which Tsunamis often
saw large swaths of coastal areas
underwater throughout history – with
the latest disaster, in 2011, costing
more than 18,000 lives (approximately
2,500 people still reported as missing,
with the rest confirmed dead) and over
USD309 billion in financial and asset
damages to the nation as a whole.
Many, who are also aware of the
fact that climate change is going to
make things worse, are choosing to
live away from coastal areas, or in
the upper floors of buildings – but
as there is no surveying of opinions
or data on the subject, no accurate
numbers or levels of such awareness
have been published.
SOLUTIONS
From a national perspective, the
general mindset seems to have
come to terms with the fact that
the current pace of climate change
and its forecast effects are no longer
likely to be avoided or slowed in any
way, and so efforts are now focussed
on preparation and minimisation
of potential damages. Expenditures
required for this purpose are focussed
on several crucial areas –
1. Prediction and monitoring
2. Upgrades of existing port facilities
3. Re-modelling of coastal structures
4. Construction of anti-tsunami
barriers
Back in 1993, cost estimates put the
required expenditure at over 12 trillion
JPY (over USD110 billion) – however,
as the effects of climate change
become more and more pronounced,
the cost of protection naturally rises
as well.
In Japan, things are further
complicated by the stringent budgets
allocated to local governments, which
in practice means that only national
governance can take on the job. With
40% of Japan’s coastal protections
outdated and deteriorating, the
national government has taken on
several initiatives to renovate and
reform the current state of readiness –
but in some places, like Nagoya, where
these projects have only just begun to
scratch the surface, there is much work
to be done, and the danger is immense.
As of recent reports, the executed
plan has been receiving a budget of 1
trillion JPY (approximately USD800
billion) annually, which are allocated
to various areas such as those detailed
above. One can only hope that, unlike
other global climate change tackling
initiatives, this will not turn out to be a
case of “too little, too late”.

66 ASIAN PROPERTY REVIEW WORLDVIEW
Cape Town will be the first major city in the world
to run out of water this April.
The cause?
Climate change.
The planet’s average surface temperature has risen
by about 2.0 degrees Fahrenheit since the
late 19C. Most of the warming occurred in the past 35
years, with 17 of the 18 warmest years on
record occurring since 2001. The year 2016
ranks as the warmest on record.
Over 97% of scientists worldwide agree that
human activities are causing global warming and
climate change through an increase in carbon
emissions. (Source: NASA/GISS).

March - April 2018
67
DOES
CLIMATE CHANGE
AFFECT HOUSING?
Asian Property Review interviews Catherine Ridu, CEO of SEDA
(Sustainable Energy Development Authority Malaysia) on whether climate
change has any impact on where people choose to stay.
1
APR: How vulnerable are some countries to
climate change, in particular Malaysia?
CR: According to the Climate Change
Vulnerability Index (CCVI), Malaysia is rather
blessed because the country is rated as medium as
far as the index is concerned:
https://reliefweb.int/sites/reliefweb.int/files/
resources/verisk%20index.pdf
So, compared to other ASEAN countries like the
Philippines, Vietnam and Myanmar, Malaysia is
less vulnerable to climate change. Some of the
countries in Asia which are extremely vulnerable to
climate change include India, Bangladesh, Pakistan
and Nepal. Be that as it may, rising sea levels are
already happening in Malaysia and a study by the
National Hydraulic Research Institute of Malaysia
(NAHRMIM) under the Ministry of Natural
Resources and Environment (MNRE) projected
that by 2100, Peninsular Malaysia may experience
up to 0.52m Sea Level Rise (SLR), Sabah up to
1.03m, and Sarawak up to 0.63m. Globally, the 4th
Assessment Report (AR4) by the Intergovernmental
Panel on Climate Change (IPCC) projected SLR
of up to 0.59m. With all these data before us, yes, it
would be logical to think that buildings should move
to higher grounds in Malaysia and also the rest of
Asia. But cities next to the coastline typically have
buildings (e.g. residential homes, office buildings,
hotels) that are already built close to the shoreline
due to their high end real estate market values. I
think the real challenge is identifying cost effective
measures to preserve these buildings in the face of
rising sea levels.
The future of energy is
in sustainable energy
comprising both renewable
energy and energy efficiency.

68 ASIAN PROPERTY REVIEW WORLDVIEW
2
APR: How do we prevent the adverse impact from
climate change such as rising sea levels?
CR: This will call for several climate adaptation
measures. In order to accommodate SLR, adaptation
measures are already available such as elevating
buildings, incorporating water harvesting, and
installing solar PV systems with energy storage in
order to achieve some levels of water and energy
autonomy in cases of extreme weather events
(EWE). The shoreline can also be protected against
SLR by constructing barriers (rock bund/revetment/
retaining wall, wave buffer, sandbags) or even
constructing tidal gates to prevent sea water from
flooding into river systems.
With planet Earth, we
simply do not have a plan
B, there is no alternate
earth.

March - April 2018
69
3
4
If we want the future
generation to survive, we
have to act now! The window
for turnaround is projected
to be no more than 15 years.
APR: Would it now be more prudent for
housebuyers to take into account climate change
factors e.g. floods, erosions, landslides, rising sea
levels, etc?
CR: Yes, it certainly would! SLR is not the only
impact of climate change. EWE can come in the
forms of extreme drought or flood; with floods, this
will loosen soil and create landslides. I think we
have witnessed enough climate related events that
had resulted in severe floods, landslides and forest
fires in recent years. Despite measures to mitigate
climate change, climate change will continue to take
central place due to legacy carbon in the atmosphere.
Therefore, climate adaptation is important across
all sectors and industries to ensure human life and
economy are sustained.
APR: How should the government respond?
CR: Scientists have largely agreed that climate
change is caused primarily by carbon emissions due
to human activities. Climate change needs to be
addressed in 2 ways:
• Climate change mitigation – government
should incorporate policies to facilitate energy
transition to decarbonize especially the energy
and transportation sectors. These 2 sectors
constitute about 80% of the country’s total
carbon emissions. Decarbonizing of the energy
sector will require deliberate policies to phase
out the use of fossil fuel (e.g. coal, gas, oil) and
increasing the use of renewable energy (e.g.
solar, hydro, bioenergy) and energy demand/
supply management. In the transportation
sector, the government should encourage nonfossil
based transportation and avail mass transit
to the public. The government should also adopt
policies that promote greater carbon sinks (a
forest, ocean, or other natural environment
viewed in terms of its ability to absorb carbon
dioxide from the atmosphere. Examples include
reforestation and afforestation, carbon farming).
• Climate change adaptation – this will
require adaptation across all critical sectors
(e.g. agriculture, power & water utilities,
infrastructure). Although electricity and
transportation are important, water and food
form the basic human needs. After all, water
is life and energy is wealth! For this reason,
farmers will need to plant crops that are more
resilient to EWE (e.g. drought). For countries
that are vulnerable to drought (e.g. India),
there is a need to improve their recharge of
groundwater and ensure water stress is reduced.
The government should
incorporate policies to facilitate
energy transition to decarbonize
especially the energy and
transportation sectors which
contribute about 80% of the
country’s total carbon emissions.

70 ASIAN PROPERTY REVIEW WORLDVIEW
5
APR: How should ordinary citizens respond?
CR: I feel that climate change is a wake-up call for
mankind to be better custodians of planet Earth. For
an ordinary citizen, he/she should learn to preserve
precious resources (e.g. water, food, energy). There
are pragmatic measures to take at home to conserve
the use of such scarce resources.
The consequences
of rising sea levels
for some of these
tiny island nations
have given rise to
increasing climate
refugees.
6
The government is responsible to educate the
public about climate change and its impact. Once
the public is aware of its consequences, there will
be sufficient vox pop [published public comments
or opinions] to sustain a culture that will promote,
for instance, the deployment of greater renewable
energy instead of coal and gas for electricity
generation, to reduce wasteful water and food
consumption. With planet Earth, we simply do not
have a plan B, there is no alternate earth. If we want
the future generation to survive, we have to act now!
The window for turnaround is projected to be no
more than 15 years. Today, our global total carbon
emission per year is estimated to be 40,000 billion
tonnes. By 2050, we need to reduce to not more
than 600 billion tonnes in order for global average
temperature to be capped at no more than 2 degrees
Celsius. In fact, some scientists have concluded that
by 2050 our earth needs to achieve carbon neutrality
by then. Obviously, time is not on our side. We are
answerable to our children because the earth we
have now is borrowed from them.
APR: If the sea level rises significantly, what
would happen to island nations like Singapore,
Maldives, etc?
Catherine Ridu
CR: Let’s concentrate on smaller islands e.g.
Maldives, Kiribati, Tuvalu, Marshall, as these are
tiny nations with little capacity to defend against
It is said that the climate
change impact has the
potential to create a global
crisis and chaos especially
by reducing food, water, and
land space in the face of an
ever increasing population.

March - April 2018
71
Flooding in Din Daeng District after the heaviest rains in 20 years in Bangkok on October 14, 2017.
Fossil fuel burning activities
are the primary cause of
climate change (besides
unsustainable deforestation
and land use).
rising sea levels. The consequences of rising sea levels
for some of these tiny island nations have given rise
to increasing climate refugees. Yet under the Paris
Climate Agreement, these countries are the first to
pledge towards decarbonising. While international
funds (e.g. Green Climate Fund) have provided
some assistance on climate change and adaptation
projects in these islands, globally there must be
greater concerted and committed efforts to rapidly
scale up measures to reduce carbon emissions
and increase carbon sinks (e.g. reforestation).
The solutions have been mentioned in preceding
responses e.g. construct barriers, elevate houses,
etc. It is said that the climate change impact has
the potential to create a global crisis and chaos
especially by reducing food, water, and land space in
the face of an ever increasing population.
In conclusion, we need to understand what is the
cause of climate change that is spawning so much
global concern. Fossil fuel burning activities are the
primary cause (besides unsustainable deforestation
and land use). Specifically within the energy sector,
we must be mindful to learn our lessons that the
future of energy must not put human lives at risk
any more. To this end, my message is that the future
of energy is in sustainable energy comprising both
renewable energy and energy efficiency. To SEDA
Malaysia, the future is here!

72 ASIAN PROPERTY REVIEW WORLDVIEW
WHICH ASIAN COUNTRIES ARE
MOST VULNERABLE TO
CLIMATE CHANGE?
Most Asian countries are considered medium risk when it comes to how
vulnerable they are to the impact of climate change, says analyst.
Dr Richard
Hewston,
Principal
Environmental
Analyst at global risk
consultancy Verisk
Maplecroft which has come
up with the Climate Change
Vulnerability Index says:
GLOBAL
RANK
14
34
47
65
COUNTRY
Timor-Leste
Philippines
Indonesia
Cambodia
CCVI RISK CATEGORY
Extreme risk
High risk
High risk
High risk
“In Asia, Timor-Leste
and the Philippines are
the highest risk countries
in the Climate Change Vulnerability Index (CCVI),
with Indonesia and Cambodia also classified as high
risk. Among the key risk drivers in Southeast Asia are
increasingly variable rainfall patterns, which will likely
amplify the prevalence of flooding and droughts. High rates
of poverty and a reliance on climate-sensitive sectors, like
agriculture, further heighten vulnerability.
Vulnerability to climate change in many of the region’s
biggest cities is further compounded by unprecedented rates
of urbanisation coupled with poor urban planning.
The presence of informal settlements increases risks to
health, life and property. Within our CCVI, Manila
(Philippines) and Jakarta (Indonesia) are classified as
extreme risk; Mumbai (India), Bangkok (Thailand) and
Ho Chi Minh City (Vietnam) are high risk; and Tokyo
( Japan), Shenzhen and Shanghai (China) are categorised as
medium risk.”
For reference, CCVI is comprised of three pillars:
• Exposure: assesses the degree to which countries are
exposed to the physical impacts of climate extremes
and future changes in climate over the next three
decades.
• Sensitivity: assesses the human population’s
susceptibility to the impacts of extreme climate related
events and projected climate change. Sensitivity is a
77
78
85
95
97
110
144
148
155
India
Malaysia
Vietnam
Singapore
Thailand
Taiwan
China
South Korea
Japan
Medium risk
Medium risk
Medium risk
Medium risk
Medium risk
Medium risk
Medium risk
Medium risk
Low risk
function of a population’s existing physical, social and
livelihood circumstances, with the index examining
aspects of sensitivity related to health, poverty,
knowledge, infrastructure, conflict, agriculture, and
population and resource pressure.
• Adaptive Capacity: assesses the present abilities
of a country’s institutions, economy and society to
adjust to, or take advantage of, existing or anticipated
stresses resulting from climate change. We focus on the
structural, gradually changing factors that determine
adaptive capacity, and are thus likely to also be broadly
representative of a country’s future climate change
adaptation capabilities.

FACADE DESIGN
& ENGINEERING
ASIA
25 TH APRIL 2018
SINGAPORE
Grand Copthorne
Waterfront
Developers, project owners and building owners should attend
to understand what is possible for their future projects. Meet the
most innovative architects and designers who can help deliver
their dreams for new build, redevelopment and retrofit projects,
the consultants who can ensure high performance and low costs
and the suppliers who can even monetise their buildings.
Lead Sponsor
*Please note attendance is complimentary for developers,
project owners and building owners for early registrations
Come join the discussion.
Brought to you by
Media Partner
FIND OUT MORE BY VISITING
www.facade-asia.globaleventsource.net or by
emailing enquiry@globaleventsource.net

74 ASIAN PROPERTY REVIEW DESIGN
HOW I TURNED MY
SMALL STUDIO INTO A
COMPACT
LIVEABLE SPACE
Achieve economies of scale when renovating your home
through these simple design tips and tricks
Khalil Adis is a speaker
and author behind
“Property Buying for
Gen Y”. You can reach
him at investorsclub@
khaliladis.com
Recently, I became a home owner.
Although I was elated, I almost got a heart
attack when I got a quote from an interior
designer on how much it would cost to do
up my apartment.
At almost S$35,000, that’s more than what I
had in mind for my 484 sq ft humble abode.
For starters, there is a difference in hiring an
interior designer versus a contractor.
If you are starting from scratch and have no
design idea at all, then you should opt for an
interior designer.
They don’t come cheap though and can
cost as high as RM8,000 and S$6,000 in
Malaysia and Singapore respectively - that’s
just on design fees alone.
Not only that, they will be on hand to
advise you on the colour scheme and project
manage the entire renovation.
However, if you have an idea how your
home will look like or have some design
skills, you can cut costs by going directly to
the contractor.
This can result in a cost saving of almost 50
per cent.
Now, a contractor is not a design person
and will follow your design specifications.
He may at times provide other more viable
solutions for your design but the design
process is entirely yours, which could be a
wonderful thing. You have complete control!
Bear in mind though, for this to happen,
you need to be very hands-on during the
entire home renovation process.
By going directly to
the contractor, this can
result in a cost saving of
almost 50%.

March - April 2018
75
THE DESIGN PROCESS
I am truly blessed as I was trained
in interior design and architecture at
Singapore Polytechnic. As such, I have
the necessary design skills at my finger
tips and a sense of ergonomics (space
required for a comfortable living and
working environment).
This negates the need to hire an
interior designer.
My apartment is really small and compact.
This has given me a design challenge and
I needed to think creatively how to make
every inch count yet liveable.
First, I started out by concealing any odd
corners to create a seamless space.
My humble 484 sq ft of space is where I start my design process. Always begin with the end in mind
by using your floor plan to maximise every nook and cranny.
LIVING ROOM AND
DINING ROOMS
My living room and dining room exposes
unsightly columns, odd corners, and
uneven walls. To hide them, I have created
a 600 mm space along the sides of the wall
to build a full-height cupboard that runs
the entire length from the dining to the
living room.
This gives the impression of a bigger
space while allowing me to store my
things vertically.
The full height cupboard not only helps
to conceal the uneven walls and columns
but also has a space above to conceal the
air-conditioning system in both the dining
and living rooms with louvres.
Before: Exposed column and uneven wall.
After: The full height cupboard helps to conceal uneven walls and columns while the storage room door
is concealed by a sliding door.

76 ASIAN PROPERTY REVIEW DESIGN
Before: Exposed bedroom door and odd corners with columns and walls.
After: Full height retractable door that looks like a cupboard to conceal the TV console on the wall, columns and bedroom door.
Vertical lines force our
eyes to look upwards to
make small interior space
seems higher.
I have also built in a ceiling mounted
shelving unit just above my dining table that
doubles up as a storage space and a stand
out feature to place a ceiling-mounted lamp
for my dining area.
To allow flexible use of space, I have used
a sliding door to separate the living and
dining rooms.
I have also concealed the TV console unit
and the door leading to the bedroom by
building a wooden sliding door.
In addition, I have designed a storage space
on the top and bottom of the living room
window that gives the impression of a bay
window. The bottom storage space also
doubles up as a sofa.

March - April 2018
77
Before: Odd corner from the bedroom door to the window with wasted space.
After: A built-in full height wardrobe that gives a seamless look to the entire bedroom. The top of the
wardrobe features a space to hide the air-conditioning system.
BEDROOM
I have built a full-height wardrobe by
creating 600 mm space to hide the
unsightly column and to give the room a
regular sized shape. By eliminating the odd
corner, this makes it much easier to design
the rest of the space as well as plan where to
put the beds and side tables.
BATHROOM
I have kept my bathroom relatively
clutter free. For this, I have designed a
custom-made vanity that holds the sink
while simultaneously offering a storage
space below.
A vanity with storage space to keep the bathroom uncluttered.

78 ASIAN PROPERTY REVIEW DESIGN
KITCHEN
Designing the kitchen was tough as I had
to bear in mind the usage, flow of the
space and feng shui fundamentals (e.g., the
stove should not be next to the sink as it
encourages quarrels).
In the end, I came up with an L-shaped
design that demarcates the main kitchen
from the laundry-cum-patio.
The main kitchen features a full height
kitchen cabinet with an island ceilingmounted
cabinet in the centre.
To accentuate this island ceiling cabinet, I
have designed it in such a way to conceal an
indirect LED light that washes the ceiling
to give the illusion of a floating space.
In addition, the cooker hob faces the
window to facilitate ventilation.
I have also flushed in the refrigerator
by incorporating it into the entire
cabinet design.
Meanwhile, the laundry-cum-patio features
a manoeuvring space of 800 mm for me
to access the washing machine and to do a
little bit of gardening for my herb garden. I
have also built in a cabinet to tuck away all
the detergents and gardening tools.
STORAGE ROOM
The HDB bomb shelter while is a legal
requirement can be an abomination.
For this, I have converted it into a full height
walk-in wardrobe which can store all my
clothing while doubling up as a storage space.
A mirror and couch accentuate the feel of a
dressing space.
Before: Bare kitchen unit.
After: The L-shaped main kitchen with a laundry-cum-patio space.

March - April 2018
79
WHAT THE EXPERTS SAY
Prof. Joe Choo
President of Malaysian Institute of Geomancy Science (MINGS)
Karen Tan
Founder of Pocket Projects, a design consultancy
LIVING ROOM
Perfect design without
much furniture to block the
energy flowing in from the
main entrance.
BEDROOM
The bed should be relocated
to the most right (when
looking at the bed) to avoid
the toilet door hitting the
bed. Ensure that the height
of the bedside table is either
the same or lower. The
length of wardrobe should be almost the same as the bed,
otherwise it is considered as a corner hitting the person
sleeping in the bed which will affect the health.
KITCHEN
The distance of the stove and basin is ideal based on the
proportions of the space.
LIVING ROOM
Incorporating visual connections
between adjacent spaces, in this
case, the living room and the
dining room, helps to enhance
the impression of spaciousness
within the flat. Smartly
concealed storage spaces are
essential to making the most
of a small flat. They reduce
visual clutter as well as deftly
converting dead spaces into
useful ones.
BEDROOM
Sometimes less is more, especially for small rooms. Keeping
a clean, simple layout in a bedroom such as this one,
allows for a calm space with balanced proportions, which
facilitates rest.
KITCHEN
This kitchen enjoys nice natural light and ventilation from
its large windows. Using the kitchen counter and hob
as a partitioning device is a good idea because it allows
unobstructed light from the windows into the depths of the
kitchen. It also allows cooking smells to be naturally vented
out the windows with ease.
COLOUR SCHEME
Second and most importantly is the
colour scheme.
I have chosen a monochromatic palette as
they are easy on the eyes and are timeless
classics that will never go out of style.
I rely solely on the fittings such as cushions
and posters for a splash
of colours.
For the walls, I have chosen a wallpaper
design with vertical lines in monochromatic
colours as well.
Why vertical? This is because such lines
force our eyes to look upwards to make
small interior space seems higher. Do also
note I have used small art posters that are
arranged vertically.
While home renovation is a lot of work,
remember this - only you as a home
owner will put in your 110 per cent effort
as you have a direct vested interest to
ensure this is a place that you can truly
call home.
Do not be afraid of using your creativity
and hone your design skills to make your
home truly your own.
Good luck!

80 ASIAN PROPERTY REVIEW INVESTMENT
KL LUXURY
HOTELS
BUCK TREND
With oversupply being the overriding theme for Malaysian properties
in 2017 and 2018, it’s refreshing to know that there are several property
types that are still in demand – among them, tourism properties.
Despite all the hullabaloo about oversupply in
Kuala Lumpur, one type of property that’s
still attracting high investment dollars is super
luxury branded hotels. Buyers include HNWI
(High Net Worth Individuals) from Malaysia, the Middle
East and Hong Kong looking for a primary residence or
trophy asset. Others include buyers from China, Indonesia
and Taiwan looking for investment opportunities.
According to a recent report jointly prepared by hospitality
consultancies C9 Hotelworks and Horwath HTL, the KL
market will see an increased supply of luxury hotels over the
next 5 years.
Some of the hotel brands include the Ascott, Dorsett, Four
Seasons, Ritz Carlton, St Regis and Urban Resorts Concept
(The Ruma).
In summary, there are 3 trends:
PRICING POINT
Broader types of buyers due to
more affordable pricing points
UNIT SIZING
Unit configurations shifting
to smaller sizes which impact
brand positioning and pricing
FULLY FURNISHED
Fully furnished units attracting
foreign buyers due to ease in
rentals
Source: C9 Hotelworks Market Research

March - April 2018
81
Kuala Lumpur is clearly a transportation hub especially
for low cost airlines (think Air Asia and Malindo Air);
the number of hotels has of all types including super high
end, budget, mid-range and even AirBnb has multiplied
in recent years. Most travellers would tell you they have
been to KL at least once (whether as a stop-over or on
transit). It is also the gateway for international visitors to
Malaysia with many stopping over at least for a night or
two at the capital.
Many travellers are attracted to its cosmopolitan feel,
multi-cuisine food and an almost unlimited number of
shopping malls!
As a result, demand for accommodation has outstripped
supply – but only just – according to the report.
HISTORY
Demand growth over the last 10 years outpaced supply, but
only just!
• The performance of 14 branded upper upscale and
luxury hotels were analyzed. They comprised a
combined daily guestroom inventory of approximately
6,500.
• The Y-o-Y growth of guestroom supply over the
period 2007 – 2016 grew at 3.0%, outpaced slightly by
demand at 3.1%.
• The impact of the oil & gas price crisis on hotel
demand was quite significant as evident in 2015.
• Over the period to 2016, only 3 new hotels
opened; the Grand Hyatt (2012), Aloft (2013) and
St. Regis (2016).
• The increasing supply of branded hotels (usually
perceived to be better quality) has been able to induce
new demand.
• In the luxury hotel category, its occupancy levels have
been consistently below the combined category.
OUTLOOK
• Over the next 5 years, (2018-2022), approximately
3,400 new guestrooms (12 hotels under construction)
will enter the market. 2021 will contribute the highest
level at close to 1,300 guestrooms. The Y-o-Y increase
is approximately 9%.
• Like the current supply, most of the new supply will
be located in the KLCC / Bukit Bintang enclaves.
• Nearly 85% of the new guestrooms are categorized
as luxury. The new luxury guestroom addition will
increase its market share to 62% from 50% as at 2017.
• With a number of large mixed use development
undergoing currently, such TRX, Bandar Malaysia,
KL Metropolis and along Jalan Ampang, it is
expected more upper upscale and luxury hotels will
enter the market over the medium to long term.

82 ASIAN PROPERTY REVIEW INVESTMENT
Average Daily Room Rate (ADR) on upward trend
despite increasing supply
• Combined ADR Y-o-Y increase of only 2.5%
with Revenue per Available Room (RevPAR) also
registering 2.5% growth.
• In 2008, the combined ADR registered an
extraordinary increase of 13%, followed by a drop of 6%
and 1% in the next 2 years. Since, 2011, the ADR has
chalked up growth.
• The ADR of the luxury hotels captured a higher Y-o-Y
growth of 3.0% with RevPAR registering lower growth
of 1.3%.
• The ADR premium captured by the luxury hotels over
the combined market has consistently been at 1.2. But
in 2015 and 2016, this was increased to 1.3.
• However, the RevPAR premiums registered by the
luxury hotels over the combined market were constant
at 1.1 since 2008.
• In terms of location, hotels in KLCC captured higher
ADRs over those in Bukit Bintang and KL Sentral
areas, with premiums between 1.1 and 1.2.
OUTLOOK
• Eight of the 12 confirmed new hotels have guestrooms
under 260. These hotels are expected to position their
ADRs at a premium over the current market rates.
• Over the short to medium term, ADR growth rates are
expected to remain low; however, the entry of super-
Luxury brands such as Four Seasons, W, Park Hyatt,
Kempinski, Banyan Tree, Sofitel SO and Jumeirah, is
expected to elevate the ADR of the luxury hotels to a
higher level.
• The entry of a significant number of guestrooms (both
in the upper upscale and luxury) is expected to put
downward pressure on occupancy levels over the short
to medium term.
CORPORATE & DIRECT FIT /
OTA EXPECTED TO DRIVE
DEMAND AND ADR
• Demand segment is more or less divided between
Corporate (including MICE) and Leisure.
• Direct FIT/OTA sub-segment consists both
Corporate and FIT Leisure.
• Oil & Gas sector is the main dominant corporate
sector for demand in KLCC whilst both KL Sentral
and Bukit Bintang hotels have a wider spread of
corporate sector.
• High content of Wholesale Leisure in Bukit Bintang
expected in view of the shopping and entertainment
enclave of KL.
• MICE is expected to remain an important demand
segment in KLCC due to KL Convention Centre,
although most demand captured are in-house MICE.
• Wholesale Leisure is expected to decrease while FIT
Leisure expands as new luxury hotels enter the market.

March - April 2018
83
Foreign guest mix dominates
across locations
• Domestic market share is the highest
at KLCC hotels.
• The favourite locale for Middle East
guests is Bukit Bintang where hotels
there captured the highest market
share.
• East Asian guests are indifferent to
hotel locations..
• Mainland Chinese guests are still
dominated by tour groups as FIT
travelers are increasing.
• Domestic guests are expected to
decrease in the coming years as
higher positioned hotels enter
the market.
• The share of guests from ASEAN is
expected to increase over the medium
term with enhanced connectivity and
the High Speed Rail.

84 ASIAN PROPERTY REVIEW INVESTMENT
Hotel brands driving pricing upwards as 75% of units have
price tag over MYR2 million
The report shows that hotel affiliation is correlated to
real estate pricing premiums. Across the market, this is
translating to a 25-35% uplift in pricing. The luxury hotel
residences at Ritz Carlton, Four Seasons, and St. Regis offer
various layouts of significantly bigger size units, from oneto
five-bedroom duplex units and are seeing strong interest
from end-users who are looking at the convenience of a
development with extensive facilities, services and prestige
of a hotel brand.
We are seeing a new trend of upscale and midscale
brands into the sector, which will in turn be opened to a
broader range of property buyers. Meanwhile, upscale or
midscale hotel residences provide a limited choice of unit
configurations from one-, two- and three-bedroom units
only. Given less barriers to entry by property developers in
this segment, highlighted by lower underlying land cost, this
type of offering is expected to gain stronger traction across
Kuala Lumpur’s expanding cityscape.
TRENDS
• Quality of the surrounding area and accessibility are
critical factors buyers consider. The Petronas Twin
Towers and KL Tower remain significant viewpoints
that add demonstrated value to property offerings.
• Fully-furnished units are preferred by foreign buyers
who focus on recurring rental yields. A number of hotel
residence projects provide fully-furnished properties.
• An increasing number of global high net-worth
individuals is diversifying Kuala Lumpur’s traditional
geographic source markets profile. Foreign buyers are
entering the market both at the top end and entry
levels. We expect the most movement in upscale or
midscale hotel residences with a growing appetite for
smaller units at lower absolute pricing points.
There are currently eight projects classified as hotel branded/managed residences in the market
Project Name – Currently for Sale Location Total Units Launch Year Hotel Affliation
Ritz-Carlton Residences JL Sultan Ismail 279 2009 Marriott International
St. Regis Kuala Lumpur JL Damansara 158 2010 Marriott International
Four Seasons Place JL Ampang 242 2013 Four Seasons
The Ruma Hotel & Residences JL Kia Peng 453 2013 Urban Resort
Dorsett Residences JL Imbi 252 2013 Dorsett
Tropicana The Residences JL Ampang 353 2014 Marriott International
8 Conlay by Kempinski JL Conlay 564 2016 Kempinski
Ascott Star KLCC Residences JL Yap Kwan Seng 346 2016 Ascott
2647
Project Name – Incoming Pipeline Location Total Units Opening Year Hotel Affliation
Jumeirah Hotel Residences JL Ampang 267 Q42021 Jumeirah
So Sofitel Hotel Residences JL Ampang 590 Q42021 Accor
Source: C9 Hotelworks Market Research

March - April 2018
85
OUTLOOK
• There continues to be concern over China’s restrictive
policy for outward investment. This remains a volatile
challenge for developers of larger mega-projects that
expect to tap into a broad market.
• A shift in investor profile is mainly attributed to the
changing geographic source market of tourists. The
market volume of mainland Chinese buyers looking to
invest in rental properties is expected to remain active.
• Hotel group brand recognition itself is a key
influencing factor as certain brands inevitably appeal to
different demographics or source of buyers.

FENG SHUI March - April 2018
87
FENG SHUI AFFLICTIONS
IN KLANG VALLEY’S
PROPERTY HOTSPOTS
Despite being located in sought-after locations, some residential
and commercial hotspots remain unpopular due to the surrounding
landforms and other negative influences.
Prof. Joe Choo is
President of the Malaysian
Institute of Geomancy
Sciences (“MINGS”). She
also has two new books
published called Year of
Dog Outlook 2018 and
Feng Shui Fundamentals.
Check them out at www.
joechoo.net
Shophouse for rent at Jalan Sungei Besi, KL. In the
horizon is a residential apartment under construction.
Photography by Jan Yong
Mention Taman Desa
and Pandan Indah -
both located in Kuala
Lumpur – and the first
thing that comes to mind are the
many condominiums and serviced
apartments that are concentrated
in the areas. Despite being popular
neighbourhoods, the commercial
activities there are less than vibrant
while some areas in Pandan Indah
have been known to be hotspots for
break-ins and snatch thefts. As a result,
we have seen some businesses move
in and out of the area. Why is this the
case? This is because of the landforms
surrounding the areas.
Take Taman Desa for instance. This
neighbourhood is a hilly area with a lot
of nicely renovated homes. However,
the landform is such that the front of
the house is higher than its rear. In
feng shui principle, this is considered
bad. While the area is popular among
home buyers and commercial tenants
because of its sought-after location,
the landform does not invite good
energy to make them want to stay as
the road is higher than the house. This
may invite afflictions such as sickness
and so on.
As such, for the area to thrive, the
commercial or residential areas
must commensurate with the type
of business activities. Taman Desa
is located in Eastern Klang Valley
and east is related to wood and fire.
As such, wood-related businesses
such as property, media, carpentry
and education will thrive. Likewise,
anything that utilises light or heat
such as firework and food & beverage
will do well.
Prime location but …
Let’s also take a look at the area along
Jalan Sungei Besi which is home to
many commercial activities and near to
the upcoming Bandar Malaysia High
Speed Rail terminus. While the area
has many old shophouses, it is run
down due to the energy from the train
running along Chan Sow Lin LRT
station pulling all the good energy from
the commercial areas. The area also has
two elevated highways which are doing
likewise. Collectively, in Feng Shui, this
is not good. As such, the commercial
activities here are less than vibrant.
Closer to Golden Triangle, let us take
a look at a shopping mall opposite
Melia Kuala Lumpur along Jalan Imbi.
The shopping centre has a very tricky
landform where the back is slightly
lower than the main drop off point.
Again, this is against the Feng Shui
principle. For business activities to
thrive here, it must commensurate
with the sector as mentioned above.
For instance, you can see property
developments doing well but not retail.
In closing, it is important for business
owners who have consulted with Feng
Shui masters to do what is advised. A
good Feng Shui master will also be
able to tell you how landforms play an
important role so you can tap on the
good earth energy so your business
can prosper.