I&T Penang Properties Blogs

Global Financial Crisis

The subprime troubles and the ensuing financial crisis in the US has been called the global financial storm. The crisis, which former Federal Reserve chairman Alan Greenspan described as “once in a century credit tsunami” whilst the 2008 Noble Prize Winner U.S. economist Paul Krugman said the crisis bears some resemblance to the Great Depression of the 1920’s.

The IMF has warned of a sharp slowdown in the world economy next year and forecasts that financial sector losses could total US$1.4 trillion(US$1,400,000,000,000.00) whilst as much as twenty million jobs will disappear by the end of next year as a result of the impact of the financial crisis on the global economy, according to UN’s report. The global economic downturn is expected to last two years before it slowly recovers from 2010 onwards as world economy recovery takes time.

Malaysia Response

For Malaysia, like other countries in the world, has already felt the impact of the global financial meltdown as Malaysia’s key sectors show signs of slowdown. The Malaysian economy has been resilient in the first-half of 2008, but is increasingly being affected by the global downturn.

According to MIER, Malaysia’s economy may grow at the slowest pace in eight years in 2009 given the dismal outlook for the global economy stemming from the financial turmoil.

In response to the crisis, the Malaysia Government has already announced several measures of economic stabilisation plan ie. a)Bank deposits are guaranteed by the central bank of Malaysia until the end of 2010 and b) Inject RM5 billion into a special- purpose fund Valuecap to support the stock market etc.

To further cushion the effects of the world economy slowdown, Malaysia’s Prime Minister-in-waiting and Finance Minister Najib Tun Razak has announced the RM7 billion Economic Stimulus Package during his Budget 2009 winding-up speech in Parliament on 4th November 2008, details of the stimulus package are here and here.

Impacts on Malaysia Property Sector

Just about 6 months ago, Malaysia’s NAPIC has projected a bullish property outlook for this year. But the property landscape and market sentiments have changed in recent weeks. Recent statements by REHDA’s President as well as commentary of several property industry experts indicating that Malaysia property sectors are showing signs of softening. The weakening of market conditions has also affected the listing of two largest REITs on Bursa Malaysia.

However, the Malaysia property sector is unlikely to face similar degree of market downturn as experienced by Singapore Property Sector. Malaysian property market still remains attractive to foreign investors. Comparatively, properties in Malaysia are still among the cheapest in the region and property investment remains a solid hedge against inflation in the long term.

For property owners and investors seeking for latest update and outlook on Malaysian economy as well as the Malaysia Property Market amidst the global economy slowdown, here are the several upcoming events and seminars by Malaysia institutions of ASLI, MIER and PEPS:-

National Property Housing Summit 2008 by ASLI;
Date : 13 – 14 November 2008
Venue : Sunway Resort Hotel & Spa, Petaling Jaya

National Economic Outlook Conference 2009-2010 by MIER;
Date: 2 - 3 December 2008
Venue : Hilton Kuala Lumpur

Malaysia Property Market Outlook 2009 by PEPS;
Date : 20th January 2009
Venue : Sime Darby Convention Centre, Kuala Lumpur

In my many years of practice, I have come across land owners who are unsure about the exact land areas and even boundaries of the lands they own whilst some are confused with the land area conversion units from acre to hectare or relong to hectare and vice versa as different states have different adoption of land area measurement system.

www.intproperties.com blogs into this subject of land area conversion units with an aim to give you a better understanding and guides on the current land area conversion units commonly used in the northern states of Peninsular Malaysia ie Penang, Kedah and Perlis as well as the neighbouring country of Thailand.

Hectare, Acre, Relong or Rai

Although Malaysia has officially adopted a metric system since 1982, the British’s imperial units and local units are also very much in use. The computerisation of land titles registration in land offices in Malaysia over the last two decades and the implementation of E Tanah system have replaced much of the old titles and have used International System (SI) unit of hectare in land registrations.

The old unit of acre, which is non-SI, is still widely use in Penang State whilst relong is the local unit commonly used by the people in the Kedah and Perlis States. A browse on the land for sale listing posted on Malaysia’s popular portal of mudah.com shows that relong is still widely use in Kedah. 

In Kedah and Perlis, the early system of land tenure was influenced more by the ancient Thai Law of Property than by the Malay Customary Law. From an early date, ‘surat putus’ (or document of title) was issued by Sultans. Originally, these ‘surat putus’ was a written decision of ‘hakim’ or judge of the state following an ownership dispute, countersigned by the Sultan. The documents recorded the evidence submitted and the decision made together with the dimensions and area of the land concerned and a rough description of its locality and abuttals. The earliest survey of property lots started by 1912 in Kedah.

Whilst in Penang, the land registration inherited the British land tenure system. The English Law of Real Property and Conveyancing continued to be used until they were repealed and substituted with a system of Registration of Titles under the present National Land Code (Penang and Malacca Titles) Act, 1963. More at related article of history of land system.

Across the border to southern Thailand, the common land measurement is Rai. A Rai (Thai ไร่) is a unit of area, equal to 1,600 square metres (40 m × 40 m), used for measuring land area. Its current size is precisely derived from the metre, but is neither part of nor recognized by the modern metric system, the International System (SI). 1 Acre = 2.5 Rai, 1 hectare = 6.25 Rai. Guide on land measurement conversion in Thailand.

In UK, although the non-SI unit of acre is still in use, it will no longer be allowed when land is being registered come January 2010 in compliance with EU Metric Directive-European Union abolishes the British acre.

For advisory on land investments in Malaysia and Penang Properties, email to us at Izrin & Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

HOW TO CALCULATE LAND MEASUREMENT

SI units (Metric )
1 hectare = 10,000 sq meters

Non SI units
1 acre = 43,560 square foot
1 hectare = 2.471 acres

1 relong = 30,976 square feet
1 relong = 484 jempa
1 jempa = 64 sq ft
1 hectare = 3.4748 relong
1 acre = 4 rood
1 rood = 40 pole
1 rood = 10,890 sq. feet
1 pole = 272.25 sq. feet
1 sq meter = 10.76381 sq feet

Example 1
Land Area 5a 2r 20p = 5 + 0.5 + 0.125 = 5.625 acres x 43,560 square feet
= 245,025 square feet
= 22,763.80 square metes
= 2.2763 hectares

Example 2
Agricultural land in Kedah
Land Area 15 relong 50 jempa = 15 x 30,976 square feet + 50 x 64 square feet
= 467,840 square feet
= 43464.16 square metres
= 4.3464 hectares

Example of site plans attached in the old titles in Kedah and Perlis- with unit measurements in both relong and acre

Example of old land titles in Kedah issued in 1950’s

The recent opening of the Jusco Seberang Perai City in Bandar Perda, Seberang Perai adds the latest foray of a new shopping mall to the highly competitive retail sector in Penang. The RM450 million Jusco Seberang Perai City, boasts a total floor area of 2.28 million square feet built on a 19 acre site with more than 3,000 car parks, is the 2nd Penang outlet by AEON after the successful opening of its first Penang outlet at Queensbay Mall in December 2006.

Jusco Seberang Perai City at Bandar Perda

A growing hotspot in central Seberang Perai

The development gravity is gradually shifting from Butterworth-Perai area towards Jalan Baru-Bukit Tengah-Bukit Mertajam as more lands are make available and earmarked for new housing developments including the partially developed mixed development project of 456-acre Bandar Perda township. Several government bodies such as Local government headoffice of MPSP, District Police headoffice, Bomba and Inland Revenue Department have already relocated to Bandar Perda. Central Seberang Perai is poised to be the upcoming conurbation of mainland Penang.

According to the Property Market Report 2007, Central Seberang Perai (Daerah Seberang Perai Tengah) has the most numbers of newly launched housing units totalling 605 compared to 544 units of North Seberang Perai(Daerah Seberang Perai Utara), indicating that more housing developments are taking place in central Seberang Perai.

Property Market Report 2007 on Butterworth properties

Notable upcoming residential schemes being launched within the Jalan Baru-Bukit Tengah- Bukit Mertajam growth corridor area include Uda Land’s Taman Pauh Jaya along Jalan Baru, Taman Aman By PPH Group and AMDB Berhad’s Bayu Mutiara in Bukit Tengah area, Parklane Residence and Aston Villa, a RM88 million mixed development project by Ivory Properties Group.

In recent years, selling prices of newly launched housing units in this growing hotspot area of Central Seberang Perai have noticeably fast catching up and match the pricing levels of those similar houses in more established locations of Butterworth- Mak Mandin-Raja Uda area.

Market Prices for conventional double-storey terraced houses in the secondary market for established housing schemes in the vicinity of Bukit Mertajam – Bukit Tengah area namely Taman Gemilang Ria, Taman Jambu Madu, Bayu Mutiara, Desa Palma, Taman Jernih, Saujana Permai, Bandar Perda have crossed to a new price benchmark level of RM250,000.00 to RM300,000.00. However, if you are looking for similar double-storey terraced houses costing below RM200,000.00 per unit, you still have the choice whereby these houses are located in the secondary locations of Bukit Mertajam namely Alma, Juru, Macang Bubuk and Permatang Tinggi area.

Market rental ranges from RM700 to RM1,000 permonth (unfurnished) for a standard 2-storey terraced house in choice locations in central Seberang Perai and those located in secondary locations, the rental rates are in the range of RM500 to RM650 permonth.

The latest trend in the market is that more higher end luxury terraced houses are being launched, these new 2.5 storey to 3 storey terraced houses comes with bigger built up area and better design and services are being priced at new ceiling prices of RM300,000.00 to RM420,000 per unit. Similarly, more higher end with luxury design 2-3 storey semi-detached houses and bungalow are being released to the market with new record pricing ranges from RM600,000.00 to RM1.2 million per unit.

For advisory on individual property investments, purchases and rentals of Penang Properties, email to us at Izrin & Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

butterworth properties -BORR Jln Baru aerial view

butterworth properties BORR-jln baru map

The new MPSP office building at Bandar Perda

The new private hospital at Bandar Perda

newly completed double storey houses in Taman Jambu Madu

Newly completed 2-storey houses at Bayu Mutiara, Bukit Tengah

Newly completed 2.5 storey semi-detached house at Taman Kristal, Bukit Tengah

Penang property owners beware! According to the recently released Auditor-General’s Report 2007 on activities and special studies of Penang State’s government agencies and reports prepared by Penang State Department of Land and Mines, the auditor findings disclosed that there are several land forgery cases recorded in Penang State. Apart from the one landmark case Boonsom Bunyanit vs Adorna Properties Sdn.Bhd, there are also a number of fraudulent cases involving lands in the State.

According to the report, there are 7 cases of signature forgery on transfer form (Borang 14A) and fraudulent land transfers detected and the properties identified are located in both Penang Island and mainland Seberang Perai whilst another 4 cases involving forgery of documents relating to court order, more at Auditor-General’s Report 2007 (page 129 -132, Table 50 & 51). And the shocking revelation is the opinion of the auditor :-

“Pada pendapat Audit, Pejabat Tanah Dan Galian tidak dapat mengesan kesahihan dan ketulenan dokumen yang dikemukakan bagi urusan tanah kerana kakitangan Pejabat tidak ada kemahiran dalam bidang tersebut. Hak pemilik tanah tidak terjamin apabila berlaku pemalsuan dalam urusan tanah.”

(In the opinion of the auditor, The Department of Land and Mines could not detect the validity and authenticity of the documents presented for land dealings because the department staff does not have the expertise in this field. The rights of the land owners can not be guaranteed when forgery in land dealing occurs).

In light of the above, Penang land and property owners are advised not to take things for granted and to exercise caution on the safekeeping of their property title deeds and conduct regular title searches and seek reputable solicitor advice.

Amendment to Section 340 National Land Code

According to Ministry of Internal Security’s reply in Parliament house on 9 July 2007, the number of case of fraudulent signature for land title transfer recorded during the period 2001 till May 2007 are 16 cases in 2001, 19 cases in 2002, 22 cases in 2003, 32 cases in 2004, 35 cases in 2005 and 40 cases in 2006 and 16 cases up to May 2007. The statistics disclosed that forgery of land titles and land scams are on the rise. In a move to safeguard and protecting the landowners, Malaysia’s Bar Council has taken a lead and submitted a memorandum to the then Natural Resources and Environment Minister Datuk Seri Azmi Khalid on July 24 last year. It is understood that in the memorandum, the Bar Council proposed several amendments to be made to the relevant sections of the National Land Code (NLC), especially Sections 340(3) and (4) and 187B. Bar Council welcomes move by government to amend s 340 NLC and is expected to be amended by year end.

For advisory on individual property purchases and rentals of Penang properties, email to us at Izrin & Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

The 2009 Budget Speech was presented by the Prime Minister of Malaysia in Parliament House on 29th August 2008 and the highlights of the RM207.9 billion Budget are here(English), here(Malay) and here(Mandarin).

Highlights of Budget 2009 on property and housing :

a) First time house purchasers are eligible for 50% stamp duty waiver on sales and purchase agreement signed during the period of 30th August 2008 to 31st December 2010. Unlike budget 2008, The 50% stamp duty exemption to be extended to loan agreements as well to further reduce the cost of buying medium-cost houses of up to RM250,000. More related information on 50% stamp duty waiver at here, here and here.

The move is expected to help purchasers for homes costing under RM250,000 to save up to RM2,625.00 on stamp duty waiver on transfer instrument and loan document.

Example :

Stamp Duties

i) Loan Agreement
0.5% of the loan amount
ii) Transfer of Title (for completed properties)
1% for the first RM100,000
2% for the next RM400,000
3% on the excess above RM500,000

Purchase Price;RM250,000.00, Housing loan @90% of purchase price; RM225,000.00

Stamp Duty payable on transfer instrument; RM4,000.00
Stamp duty payable on loan document ; RM1,125.00
Total stamp duties payable ; RM5,125.00
Apply for 50% waiver on stamp duties ;RM2,562.50
Amount payable ;RM2,562.50
Savings for house purchaser ;RM2,562.50

b) Reducing withholding tax on dividends of Malaysia REITs to 10%

c) RM330m allocation for Jabatan Perumahan Negara to complete 4,400 units of Program Perumahan Rakyat (PPR) Disewa, 1,500 units of PPR Bersepadu and 600 units of PPR Dimiliki. In addition, Syarikat Perumahan Negara Berhad will build 33,000 low cost houses.

d) Increase the size of the Housing Credit Guarantee Scheme (SJKP) to RM100m from RM20m to assist those without fixed income to own affordable houses.

e) RM50 Million conservation funding for heritage buildings following the recent inscription of Malacca and George Town as historical cities of the Straits of Malacca under Unesco’s as World Heritage Sites(WHS). The Unesco listing of these two historical cities is expected to boost tourism and a boon to the property sector of these two cities.

For advisory on individual property investments, purchases and rentals of Penang Properties, email to us at Izrin & Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

With the completion of the final stretch of Jelutong Coastal Highway(JE) or JE Drive connecting to Weld Quay as well as inner city of Georgetown from Gelugor/Penang Bridge area, travelling time to the inner city of Georgetown from Gelugor / Penang Bridge area via JE has indeed shortened to mere less than 10 minutes drive. This coastal areas along JE has since become one of the Penang’s new property hotspots as the Penang property sector witnessed the completion of several housing parcels within the reclaimed housing project of Bandar Sri Pinang since mid 2004 as well as feverish launchings of several new housing schemes and the much publicized mega project –The LIGHT waterfront project by IJM Group over the last one year. The development of The Light Waterfront is poised to transform this eastern coastal area into a high end integrated housing precinct.

In 1990’s, the former Penang state government has granted approval to IJM Group to develop 338 acres of land in exchange for the construction of the 4.7km Jelutong Expressway. The first 3.1km stretch of the expressway was opened to the public in 2003 while stage two was opened in February 2008.

The whole development will be undertaken over four precincts – Bandar Sri Pinang (82 acres), Metro East (30 acres) and The Light (152 acres) while the balance 100 acres comprising education, medical, art/cultural, commercial and residential components will be for future development. More related info at IJM land to focus on mid to high-end projects and Penang Mega Projects: PGCC and The Light.

Notable completed housing schemes within Bandar Sri Pinang are Fortune Park, completed in 2005, an integrated industrial park comprises terraced light factories catering to small & medium scale industries whilst Lot 28 comprises 2 and 3 storey shopoffices. Ocean View, completed in 2004, comprises 11 storey Medium Cost Apartment and some 2,242 low and medium cost housing units of Desa Pinang and Pinang Court etc. Other mid range completed housing schemes located along the JE are Mutiara Heights and Mutiara Idaman. Generally, the rental for medium range three bedroom apartments in Jelutong area ranges from RM650 permonth onwards whilst selling prices for mid range apartments are in the range of RM120,000 to RM200,000 per unit.

Whilst the newly completed housing schemes include Nautilus Bay - 78 units of 3-storey terraced courtyard terraced houses prices ranging from RM780K to RM1.2mil 21’x70’ built up area 2,600 sq ft and The Spring, high rise condominium blocks with floor areas ranges from 925 to 1,281 sq ft. Other upcoming housing projects include Summer Place and Platino luxury condos.

The Jelutong coastal area is turning into an Urban Park by the sea with the recent completion of a A 3.6 km long RM7mil promenade along the Jelutong Coastal Front. In addition, the Penang state government is currently evaluating plans to built a multimillion ringgit Meetings, Incentives, Conventions and Exhibitions (MICE) centre in Jelutong, Penang.

Update : There is also a proposal to transform the existing 20 hectare landfill site into an urban park along the coastline near the JE.

For advisory on individual property purchases and rentals of Penang apartments and condominiums, email to us at Izrin & Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

Jelutong Map

General View of the Jelutong coastal front

The new commercial centre of Bandar Sri Pinang. To the rear is the newly completed The Springs Condominium

Newly completed Nautilus Bay.

Ocean View / Desa Pinang medium cost apartments.

Mutiara Idaman/Mutiara Heights Apartments along JE

A SME conference has been held in Penang recently. The one-day event, with the theme “Globalization of SMEs- The Next Battleground” was organised by The ACCA and officiated by Penang Chief Minister YAB Mr Lim Guan Eng with more than 350 delegates attended the conference.

SME developments in Penang

The developments of SME in Penang are mostly supporting MNCs. According to InvestPenang Chairman of the Executive Committee, Dato Lee Kah Choon, Penang economy has undergone five decades of evolution with the industrial transformation started 35 years ago. To date, the growing sectors in Penang are E & E and ICT sectors. As at March 2008, there are a total of 146 MSC status companies in Penang.

Dato Lee Kah Choon, Chairman of InvestPenang presenting his paper at the SME conference in Penang

Penang’s industrial evolution

New growth sectors for Penang

MSC companies in Penang

A recommended resource centre on SME developments in Malaysia is www.smeinfo.com.my by Central Bank of Malaysia which provides much related information in three languages. Another official website for SME in Malaysia is SMIDEC.

SME Outlook and Funding

The Malaysian Government, through SMIDEC, provides various facilities and assistance programmes to assist local SMEs to be globally competitive.

According to MITI’s website, the statistics on the utilisation of Funds (Grants and soft loans) for SMEs for the northern states (Perak, Penang, Kedah and Perlis) as the end of April 2007 are as follows:-

Grants
• As at the end of April 2007, a total of 17,015 applications were received by SMIDEC for the various grant schemes. Out of these, 12,417 applications (73.9 per cent) valued at RM270.61 million have been approved.
• The highest approval was for Grants for Certification & Quality Management valued at RM82.3 million (77.0 per cent) of the total grants approved.
• Total approvals of grants for the Northern Region states are 2,592 amounting RM59.7 million (21.4 per cent).

Soft Loans
• As at April 2007, a total of 1,685 applications for soft loan were received, of which 1,046 (62.7 per cent) were approved valued at RM530.7 million.
• Total approvals of Soft Loan for the Northern Region states are 193 amounting RM 112.46 million (21.2 per cent).

For this year, the government has allocated RM4.5 billion for 198 small and medium enterprise (SME) development programmes and more funds will be allocated to SMIDEC under the mid term review of 9MP. The government has also announced that an additional RM1.2 billion worth of financial facilities will be make available to assist small and medium enterprises (SME) to manage rising business costs.

The Malaysia Government will continue to provide matching grants and soft loan schemes for SMEs , If your company are one of these SMEs and your businesses are within the threshold of SMIDEC, there are many types of grants and soft loans available for local SMEs; here and here.

For advisory on SME property needs or property investments in Penang, email to us at Izrin & Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

The Malaysian Government has tabled its 9th Malaysia Development Plan 2006-2010 (9MP) mid term review in Parliament House recently. Despite the Federal Government increased the development allocation to RM230 billion, the development allocation of several infrastructure projects including Penang’s monorail and PORR, however, have been deferred.

www.intproperties.com researched on these two affected infrastructure projects following the latest decision by the Federal Government to defer it which are considered important projects to Penang economic development.

Background

The proposal and ideas on Penang’s planned infrastructure projects ie Monorail (LRT) system, PORR, Penang Bridge Expansion and Penang 2nd link have been floated since mid 1990’s, more than 13 years ago.

According to a report way back in year 1995, the Penang’s Light Rail Transit (LRT) system was scheduled for completion in year 2002. The proposed LRT system, costing RM650million at that time, was supposed to be implemented under “Built-Operate-Transfer” basis by Business Focus Sdn Bhd. It was also reported that a close-end fund under the name of Dana Mutiara was being set up to undertake infrastructure-related projects including Penang 2nd Link, PORR, monorail system etc. The idea of setting up a close end fund has since fizzled out and most of these planned infrastructure projects were shelved due to the onslaught of Asian financial crisis during 1997-1998. Read more at here and here.

The planned infrastucture projects were subsequently revived and incorporated in the 9th Malaysia Plan 2006-2010 in year 2006 and endorsed in the blueprint of NCER launched by the Prime Minister of Malaysia in August 2007.

Highlights of 9MP Mid Term Review

According to the Mid-Term Review of the 9MP, the Malaysian Government is allocating another RM30bil for development expenditure under the Ninth Malaysia Plan (9MP), increasing the ceiling to RM230bil and here are the highlights of 9MP mid-term review. Several infrastructure projects which are considered important to Penang ie.Penang Monorail, Highway Projects Are Not Under 9MP now despite the Federal Government has endorsed these projects under the initiatives of NCER launched less than 1 year ago.

Reasons and Reactions on deferment

The reason cited for the two Penang projects being deferred (RM2bil monorail and RM1.5bil Penang Outer Ring Road) was to relocate resources to cushion the impact of the increase in global oil prices and focus on people-centred projects. more at here and here. And here are the reactions from the Penang state administration. The Penang Chief Minister is urging the federal government to restore these 2 mega projects and explain the allocation cut to Penang State. The Penang NGOs, on the other hand, have dissenting views and are calling the authorities to establish a Penang transport masterplan. More views and comments relating to Penang’s planned infrastructure projects in Penang-Jelutong MP cum blogger Jeff Ooi’s blog.

Impacts on developments

The deferment of these mega projects would likely to have impacts on ongoing and new planned developments surrounding the PORR and monorail route. More info about mega projects at related blogs; NCER and the high impact projects on Penang and Penang Mega Projects.

For advisory on individual property matters in Penang, email to us at Izrin & Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

The new Penang state government land policy seeks to encourage Penangites to become permanent landowners and boosting commercial and industrial growth. Under the new policy, industrial landowners in Penang can apply to extend their lease period from the present maximum 60 years to 99 years, while owners of leasehold residential lands can apply to convert their land to freehold status. More at We will be fair in land conversion.

The conditions and procedure for conversion are here and here.[Update : The official guidelines (Bahasa Malaysia version) on the new land conversion policy and the application form (Borang 12A) is now available and can be downloaded from the website of Penang State's Department of Land and Mines].

Land owners can begin submitting individual applications after June 15 to change the status of their land titles.

And here are the views and comments on the state’s new land conversion policy from man on the street, local community leaders, property consultants and housing developers to legal practitioners.

The move is expected to benefit industrial land owners or companies to secure financing to expand their factories as presently commercial banks are less keen to provide banking facilities to industrial lands and factories with short leasehold tenure of less than 30 years as collaterals.

Industrial/Housing schemes to benefit from this new land conversion policy

Industrial lands and factories in Penang’s Industrial Parks developed by Penang Development Corporation (PDC) are alienated on 60 years lease. These industrial parks are Bayan Lepas Industrial Park, Mak Mandin Industrial Park, Seberang Jaya Industrial Park, Prai Industrial Park, Bukit Tengah Industrial Park and newly developed Bukit Minyak Industrial Park.

Whilst PDC’s housing schemes are mostly leasehold properties of 99 years namely Bandar Bayan Baru and Bandar Seberang Jaya, Taman Pelangi and Komtar development area in Georgetown.

Other notable housing schemes built on state alienated lands of 99 years lease are Techware’s condominium schemes along the Sungai Nibong coastal area ie Gold coast, Putera Marine, Villa Emas, Putera Place and IJM’s housing schemes ie Tmn Sri Damai, Alphine tower, Parkview tower, Lakeside, Ocean view, The Spring etc. Others such as Mewah Court, Midland condo, Mutiara Idaman, Mutiara Heights, Pangsapuri Tanjung Tokong and Sri Saujana at Harbour city.

However, owners of leasehold high rise stratified units seeking to obtain freehold rights may have to be patient until the state government resolved legal matters with the Federal Government. More at Freehold land applications now on hold.

Several high profile townships such as the Seri Tanjung Pinang and Bayan Bay development (both on the Penang Island) and 456-acre Bandar Perda township and Bayu Mutiara in Bukit Mertajam of mainland Penang have since been granted conversion from leasehold to Freehold status. Related link at Penang projects to gain from conversion.

For more insights on Malaysia’s land administration policy, a recommended website by Ministry of natural resources and environment provides resources on Malaysia’s current land administration process, types of land titles , classification of lands etc.

For advisory on individual property investments in Penang, email to us at Izrin & Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

Aerial view of the Perai Industrial Park in central mainland Penang and its coastline. The development of the industrial parks in Penang since 1970’s have transformed Penang into the biggest industrial hub in the northern Peninsular Malaysia.

Bandar Perda, a privatized 456-acre housing project in central Seberang Perai which have been granted Freehold status…

Institution of Surveyors Malaysia (ISM) Northern Branch has recently organized its 15th anniversary dinner. The event was attended by more than 250 members of ISM and the guest of honor of the event was the newly appointed Penang Chief Minister Mr Lim Guan Eng. During the function when speaking to members of the ISM and guest, the Chief Minister acknowledged the role of the Surveying Profession within the construction industry comprises 4 main divisions ie GLS, PCVS, QS and BS and hopes to establish close relationship with professional bodies and invites qualified professionals to sit in the Penang Tender Board’s Committee.

The Chief Minister stressed that the new state administration of Penang is a CAT government, Competency, Accountability and Transparency and Penang will lead to be the first state government that adopts the CAT governing philosophy.

On foreign investments, Mr Lim disclosed that two foreign companies from Japan and USA have confirmed their investments in Penang. It was later reported in the media ie. Japanese firm invests RM1.2b and Honeywell to invest RM115m in Penang. The new administration hopes to achieve RM3.1 billion foreign investment this year.

Earlier, the state government has endorsed the Northern Corridor Implementation Agency Act which empowers the agency to implement plans for the Northern Corridor Economic Region (NCER) to speed up economic development in the region and federal projects in Penang. More at Penang supports NCER agency act.

To know more about Penang’s new Chief Minister, there is a blog that provides a compilation of media reports and press statements since March 2008, click here.

Penang Chief Minister, Mr Lim Guan Eng addressing members of the ISM northern branch at its 15th anniversary dinner at Gurney Hotel on 23rd May 2008…

Guest and Members of the ISM Northern Branch at the 15th anniversary dinner..