Archive for April, 2008

Update on high rise building maintenance–whither improvement ?

Monday, April 21st, 2008

Since the Building and Common Property (Management and Maintenance) Act 2007 [BCPMM Act] came into force on 12th April 2007, many housing developers in Penang have started to form JMBs for their stratified housing schemes. Under this new act, developers have 12 months from the time of vacant possession to set up a Joint Management Body (JMB), consisting of 8-12 owners and 2 representatives from the developer.

For existing completed high rise buildings prior to the introduction of this new act, developers are required to form JMB within 1 years after the new act is enforced or before the dateline 11th April 2008. For developers who fails to form the JMB within the stipulated time period can be fined fro m RM20,000.00 whilst the strata unit owners who fail to settle their maintenance charges risk having their properties confiscated and auctioned off. More details at related blog at Focus on the impact of new legislations on management and maintenance of stratified properties in Malaysia.

Penang’s state development agency, PDC, being one of the largest housing developers and has so far built more than 22,000 housing units, have started a series of night briefings as well as meetings with many units owners on the need to form JMB in their housing schemes over the last three months. It is understood that the exercise is still ongoing and there will be more than 40 JMBs to be set up soon for PDC’s housing schemes as required by the new BCPMM Act. The name list of joint management committees(JMC) will then be required for submission to the commissioner of building (COB). There are housing developers who called for meeting to form JMB were still not ready with audited accounts when demanded by the residents. More related info at Developers not going in for audited accounts. With the formation of JMB, stratified housing owners will now have bigger say on the management and maintenance of their housing schemes.

A recent reported case on high rise buildings which experienced poor maintenance in Butterworth; here and here, would see how the COB with his power vested under this new act, and together with the relevant parties, could step in to overcome its longstanding maintenance woes.

Many of first time house buyers and new apartment and condominium owners are also not fully aware of this new Act and the responsibilities of JMB. As property investments in stratified housing units involve high capital or long term loan commitment, it is therefore prudent for house buyers to choose housing schemes with good maintenance track record. Good stage of maintenance for high rise stratified units is considered to be one of the key factors towards capital preservation and value appreciation of your property investments. Read more at Good maintenance begins with the developer.

To know more about the new BCPMM act, COB and JMB, a recommended resource website is www.hba.org.my.

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.

High rise residential buildings in Air Itam township, Penang …

Another view of the Sungai Dua housing area near USM..

Penang as outsourcing and training hub

Monday, April 7th, 2008

THE new Penang state government wants to develop the state into an outsourcing and training centre for new industries. Penang’s new Chief Minister Lim Guan Eng unveils new strategies to drive the state forward. More at Star Business report on Penang as outsourcing and training hub. Penang’s industrialisation, which started in early 1970’s, has transformed the manufacturing sector currently contributes 40% to state GDP.

Industrial Parks in Penang

According to the state government development agency, PDC’s website, the agency has developed six industrial parks with a combined size of 2,384 hectares (5,890 acres) and with about 686 existing factories of which only one industrial park is located on the Penang Island whilst the remaining five are located in mainland Penang of Seberang Perai. Click here to view the location map of Penang Industrial Parks. The six 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.

Due to the scarcity of land on Penang Island, the state government has expanded the existing Bayan Baru Industrial park via land reclaimation along the south eastern coastal area of Penang Island. Future industrial expansions will continue to take place in mainland Penang particularly in Bukit Minyak Industrial Park and Batu Kawan township near to the proposed Second Penang Bridge.More related info at The new conurbation area in Central mainland Penang.

The state will likely to see new investments from South Korean’s Samsung which may invest RM3.5 billion at 32 ha site in Batu Kawan, near the Second Penang Bridge.

The sales price for leasehold industrial land in Bukit Minyak industrial area ranges from RM13 per square foot whilst selling price for freehold industrial land in central Seberang Perai ranges from RM20 per square foot.

For advisory on industrial lands and 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.

New Economic Agenda for Penang

The new administration has outlined its New Agenda for Penang and pledged to pursue investor friendly policies and to make Penang a dynamic economic, inter alia, to upgrade hi-tech industries, manufacturing and SMIs/SMEs on the global value chain, rejuvenate tourism and service industries such as building more green lungs, a new Penang Zoo, hotels and tourism heritage areas, Revamp and restructure Penang Development Corporation, InvestPenang, Penang Skill Development Centre and Penang Port Authority to stimulate greater foreign direct investments, comprehensive plan to promote Knowledge-based economy to secure Penang’s place in the rapidly changing globalised world and tapping into ‘Penang Diaspora’ to complement “Brain Gain” Programme.

Projects Pending Review

Several major infrastructure projects namely second Penang Bridge, PORR, monorail, airport and port expansion under the NCER initiatives will be continued as planned whilst some will be subject to close scrutiny. Two high profile projects in Penang namely PGCC and Gurney Paragon project are pending approval or review. Read more at Large projects to come under scrutiny, Snapshot of projects, Gurney project in Penang may be reviewed and Will Penang’s property market continue to boom?

A landmark industrial building in Prai Industrial Estate, mainland Penang visible along North-south Highway.