By TAN KARR WEIPhotos by SAMUEL ONG and TAN KARR WEI
Middle Eastern tourists are arriving in increasing numbers and much effort has been made to make them feel at home, including street signs with Arabic lettering in the heart of Kuala Lumpur.
Malaysia has been an increasingly popular destination for Middle Eastern tourists and the city has seen changes over the last few years to cater to their needs.
According to figures from the Tourism Ministry, there has been a rise in tourist arrivals from West Asia over the past three years – 126,050 in 2004, 147,646 in 2005 and 186,821 last year.
All along Jalan Bukit Bintang, you will find shops that have signboards with Arabic words on them.
There are also some signboards at various places that are solely in Arabic.
To add to the Middle-eastern feel, there are a few Arabian perfume stores around the Bukit Bintang area with bright neon lights that are hard to miss.
Restaurants like Tarbush and Naab are also making their presence felt as many Middle Eastern tourists frequent them.
Even the Izzi restaurant, which serves a variety of Italian and Asian food, has promotional signs with Arabic words and a menu that is fully in Arabic.
Head towards Jalan Berangan nearby and you will find an arch carved in Arabic style leading into Ain Arabia, an area set up by the government as a leisure spot that has a fountain shaped like an Arabic teapot and a gazebo.
Hotels and shopping malls have also undergone changes to make Arabic-speaking tourists more comfortable during their stay in Malaysia.
“During the peak season between June to August, we have two permanent employees who speak fluent Arabic to assist tourists,” said Nikko Hotel Kuala Lumpur communications manager Katie Hoo.
To make the guests feel more at home, Nikko Hotel has added the Arab Radio and Television (ART) into the hotel’s TV channel offerings.
According to Mandarin Oriental Kuala Lumpur assistant public relations manager Cindy Wong, the hotel has a permanent Arabic guest recognition officer and they employ another four management trainees from Lebanon during the peak season.
The hotel has also printed guestroom letters, leaflets and brochures in Arabic.
Bandar Sunway is another popular spot for these tourists and it is hard to miss a signboard at the entrance of Sunway Pyramid shopping centre, with a welcome message in Arabic.
According to Sunway Pyramid public relations assistant manager Darren Chear, they have directories of the mall printed in Arabic.
During the peak season, Arabic interpreter Mohammed Youssous Adam is stationed at the information counter to communicate with the Arabic-speaking tourists.
“Some of them are really surprised when I speak to them in Arabic. They’re grateful because many can’t speak English. They ask me for directions to get around the mall and suggestions on which store to shop at.
“Some tourists even ask me about places they should visit in Kuala Lumpur so I would suggest places like Batu Caves, Genting or KLCC,” said Mohammed Youssous, who is from the Republic of Chad.
Chear added that they work together with Sunway Resort Hotel, Pyramid Tower Hotel and Sunway Lagoon to provide a whole package for their holiday needs.
Related Story:Arab tourists won over by Malaysian charm
BY THEAN LEE CHENG
THESE are interesting times. While many of us may perceive that we are cocooned from the financial fall-out of the financial system that began in the US, uncertainty abounds and even as this is being written, the global financial system continues to unravel.
Up until the last quarter of 2006 and way into the first half of this year, business circles, bankers and real estate consultants were euphoric about the state of the world’s liquidity. There was heaps of money sloshing around. There still is. But much of this money is in the hands of those who can, and will, ultimately create markets out of them.
But what has this to do with property-related purchases? Prior to the dismantling of the US sub-prime market (loans made to not so credit-worthy households to buy houses and subsequently repackaged, re-rated and re-sold pegged with high returns), property prices in certain locations were deem to be rather speculative, says property consultants. .
Some KLCC high-rise condominiums, launched several years ago at RM700 per sq ft were now asking for double and more. A new developer in the area pitched his project at RM750 psf during the planning stage. Now that he is ready to launch, he says: “We may up that to RM1,200 or more. We will wait and see how things move because KLCC area is now talking about RM2,000 psf and above.”
A year ago, land prices in Damansara Heights, one of Kuala Lumpur’s prime areas, were averaging around RM350 psf with Jalan Setiamurni area going for about RM450 psf. (Different parts of Damansara Heights command different prices).
Says a property consultant: “Today, most of them are asking RM500 per sq ft as of the first quarter of this year, before the sub-prime market began to unravel (late July). One developer bought land in the area at RM600 per sq ft, which is setting a new benchmark. At that price, how much will they sell the bungalow?”
Some home owners were asking RM10mil to RM13mil for their units in this area and one was sold for RM22mil.
Already, Selangor Dredging Bhd via its property arm SDB Properties Sdn Bhd expects to launch 21 Damansara in Bukit Damansara at RM10mil each.
With such prices, they are essentially catering to foreign buyers from Singapore, Hong Kong and Malaysia’s super rich.
Selangor Dredging’s foray into Damansara Heights, following the E & O group, brings to past a comment by a property consultant from an international agency.
“Damansara Heights prices are essentially between RM3mil and RM6mil. When it touches RM10mil, you need a special group of people to buy because anything above RM10mil will be difficult to sell, unless it is very well packaged and the target audience being foreigners,” he says.
Another player says with Damansara Heights properties at RM10mil, there are other options, and foremost is Kenny Hills where the air is different, in more ways than one. The land sizes there are 20,000 to 30,000 sq ft (Damansara Heights: 7,000 to 8,000 sq ft). On a psf basis, it is between RM300 and RM400 psf. It comes across as cheaper on a psf basis, but this is because most of the land are on slopes and may not be usable unless owners opt for building on uneven terrain. Which is what Selangor Dredging is doing with 21 Damansara. Hence, the RM10mil price tag.
The Kenny Hill community has about 500-odd properties compared with Damansara Heights’ 3,800 units. Says a Selangor Dredging staff: “It is crowded in Damansara Heights, but the fact it is popular.”
The other crowded location is Mont’Kiara. Sunway City Bhd is selling condominium project Palazzo at more than RM800 per sq ft. At that price, there are other more exclusive options. This being the Jalan U-Thant and Jalan Madge area. Known collectively as the Ampang Hilir area, prices have not yet taken a leap but it will. Because just across Jalan Tun Razak, which divides the iconic Twin Towers and its burgeoning residential projects, prices have gone up considerably while the U-Thant/Madge area is begins from the RM800 and RM900 psf range.
The conclusion of this quick survey? Jones Lang Wootton’s Asia Pacific Property Digest 2007 (first quarter) sums it up. The rising cost of building materials (and cost of construction) are expected to lead to higher launch prices in the short to medium term.
Referring specifically to the condominium market, the report says the exemption of real property gains tax and the sustainable economic growth in Malaysia are expected to stimulate the luxury condominium market. The sales volume of high-end condominium is likely to increase.
However, there is a slight downward pressure on the rental market as 4,150 units are expected to be completed by the end of the year.
Says Khong & Jaafar Sdn Bhd managing director Elvin Fernandez: “The worry today is interest rates will go up globally and high liquidity will contract. We are seeing that already with the sub-prime mortgages in the US.
“Many may say the US can absorb this. But the global financial marketplace is incredibly interconnected. That is the beauty of the global financial system. And these things have an effect on all asset class, including properties. Even the soundest investments can go asunder.
“On the supply side, if everybody builds too many of it, it will not be good. The function of a developer is to access the risk, take the risk and live with it. Don’t expect the government to bail out. On the demand side, can you afford it?”
In a situation such as today, the issue is not the quality of assets (properties) that one has, or desire to have. It is how well we grasp the fleeting nature of liquidity and the importance of cash flow.
Budget reduces corporate tax to 25%
By HARI RAJ
IT'S budget time again! Some of the highlights from the 2008 edition include the reduction of corporate tax to 25% in 2009, allowing for greater economic growth and higher dividends, while RM12bil has been allocated to improve the public transportation system in Kuala Lumpur and Penang.
The Government has also provided stamp duty exemptions on instruments related to mergers and acquisitions of listed companies, emphasising that the large number of vendors in the oil and gas sector (over 1,000) should consolidate in order to be more competitive globally.
The property sector got another shot in the arm following a reduction of 50% in stamp duties for certain purchases, while the agriculture sector has RM6.5bil to enable it to become one of the country's major sources of economic growth. Sabah and Sarawak didn't miss out either, with an allocation of RM4bil each for various infrastructure and development projects.
As such, many observers are looking at sectoral plays, in particular the property sector, on which much pre-budget buying has been centred. Likewise, some feel that construction and agriculture-related companies might be worth a look as well.
TA Securities feels there's a good a chance that the Kuala Lumpur Composite Index will challenge the 1,320 point level following the budget's measures to boost domestic demand, while the rebound on US stocks is expected to fuel follow-through buying momentum, which it hopes will be towards the two billion shares mark.
In turn, this is expected to enhance upside momentum next week, something that analyst Stephen Soo feels will lessen investors' fears and translate to the domestic market.
“I believe the Federal Reserve is well-prepared for any crisis or hiccups in financing or concerns over bankruptcies or foreclosures. Locally, sentiment should mirror external conditions, which I believe will be stable,” he says, adding that the immediate psychological resistance of 1,300 points should become a support level to cushion downside by next week.
On the corporate front, prolonged positive sentiment surrounding the oil and gas sector continues to buoy companies such as Muhibbah Engineering Bhd. A further boost was provided when Muhibbah landed a RM101.56mil contract to build an offshore supply vessel for Inno Marine Services Sdn Bhd. Construction on the latest-generation DP-2 well service support/offshore maintenance vessel will commence immediately, with delivery slated for 2009.
In keeping with the sectoral play, many market watchers are keeping an eye on DNP Holdings Bhd, a 55%-owned subsidiary of Singapore-listed Wing Tai Holdings that is one of the property companies set to benefit in the wake of the new budget. With newly streamlined operations and two luxury condominium projects in the super-prime KLCC area in various stages of completion, things are looking up.
Last but not least, Kumpulan Perangsang Selangor (KPS) has seen active trading of late.
KPS, the listed subsidiary of Selangor state investment arm Kumpulan Darul Ehsan Bhd (KDEB), is seen as the frontrunner for the Pahang-Selangor interstate water transfer project's main contracting job on the back of Energy, Water and Communications Minister Datuk Dr Lim Keng Yaik's proposal that KDEB be given the task to operate the project's water reservoir and treatment operations.
