Malaysia Defence & Economy Forum

[艹艹艹]

 

[MacanJawa]

that smells like malaysian pm is telling usa not to pursue the 1mdb scandal?

maybe like philipine after duterte kill drug dealer policy get heavy criticized
china now get malay and phil
china 2 - USA 0

 

[CountStrike]

Indo Defence 2016: PT PAL signs MoU with Boustead to build Malaysian Navy ship in Indonesia
Ridzwan Rahmat, Jakarta - IHS Jane's Navy International
02 November 2016

The MRSS will be based on a 150 m design by PT PAL that will be modified, according to the Royal Malaysian Navy's requirements. Source: IHS/Patrick Allen
Key Points

• PT PAL and Boustead Naval Shipyard have agreed to collaborate on a possible multirole support ship contract
• Agreement may see the Royal Malaysian Navy's first LPD-like ship being constructed in Indonesia

Indonesian state-owned shipbuilder PT PAL has signed a memorandum of understanding (MOU) with Boustead Naval Shipyard (BNS) to construct Malaysia's first multirole support ship (MRSS) in Indonesia.

The MOU was signed on 2 November at the Indo Defence 2016 exhibition in Jakarta, and paves the way for PT PAL to work on its first-ever project for a Royal Malaysian Navy (RMN) vessel, if the contract is awarded to BNS.

Managing Director of BNS, Ahmad Ramli Moh Nor, who signed the MOU on behalf of the Malaysian company, described the agreement as a historic moment between the two countries, which were not known to have collaborated on any major naval platforms prior to the possible MRSS project.

According to specifications provided by PT PAL, its basic design for the landing platform dock (LPD)-like MRSS features an overall length of about 150 m, an overall beam of about 24 m, and a draught of 6 m. The platform has been designed with a top speed of about 18 kt, a cruising speed of about 15 kt, and an endurance of about 30 days.

The ship can be armed with a 76 mm naval gun, and a number of 12.7 mm machine gun positions.

However, an official from PT who spoke to IHS Jane's on 2 November at Indo Defence stressed that talks with the RMN and BNS are still ongoing, and a final configuration based on the service's requirements will only be available at a later date.

One of the RMN's requirements is that the ship must be able to accommodate two helicopters on the flight deck, in addition to two helicopters in the hangar, said PT PAL, who added that this may mean extending the platform's length to about 163 m.

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[cirr]

 

[lcloo]

Business News

Home > Business > Business News

Friday, 4 November 2016 | MYT 9:53 PM



Boustead group to supply four mission ships to the Navy
by m. hafidz mahpar

Boustead's concept model of the littoral combat ships ordered by the Defence Ministry earlier.



KUALA LUMPUR: Boustead Holdings Bhd's subsidiary Boustead Naval Shipyard Sdn Bhd (BN Shipyard) has received a non-binding letter of intent for the supply of four littoral mission ships for the Royal Malaysian Navy.

In a filing with Bursa Malaysia on Friday, the conglomerate said the 82% owned subsidiary received the letter from the Defence Ministry on Oct 26. Boustead did not disclose the contract’s value.

On Tuesday, Prime Minister Datuk Seri Najib Razak announced that Malaysia would buy four littoral (close to shore) mission ships from China for the Malaysian Navy, two of which would be built in China and the other two in Malaysia.

Defence Minister Datuk Seri Hishammuddin Tun Hussein said the following day that construction of the ships would be a joint venture between BN Shipyard and China Shipbuilding and Offshore International Co Ltd.sement

The ships are said to be a fast and agile type designed for various operations close to shore. The first ship is expected to be completed within 24 months of the contract signing.

Hishammuddin was reported as saying that the allocation for the purchase was off-Budget, meaning that funding would come from the Malaysian Navy through savings achieved by its 15-5 Armada Transformation Programme.

This is a landmark purchase, as it marks the first time that Malaysia is buying military equipment from China.

In April, it was reported that the Malaysian Navy expected to buy 18 littoral mission ships to strengthen the country’s maritime security.

Besides the mission ships, the Navy will also receive six new littoral combat ships built by BN Shipyard, and worth RM9bil, between 2019 and 2023.

Boustead said it would make further necessary announcements on the project in due course.

 

[UMNOPutra]

Based on above spesification... our LCS is "better" than PKR10515 ..... But, it is still below of Singapore's Formidable Class ...
-------------------

China successfully plot Singapore into recession
By admin -November 3, 2016

http://statestimesreview.com/2016/11/03/china-successfully-plot-singapore-into-recession/

According to an in-depth international politics talk show, China is the main reason behind Singapore’s recession today and the plot started from as far back as 10 years ago.

Below is a translation of the key points covered by the talk show:

Host A: Recent quarterly figures GDP revealed that Singapore’s economy has seen a fall of 4.1%, and Prime Minister Lee Hsien Loong said “our economy will eventually turned for the better”. What he exactly mean is that Singapore’s situation is seriously dire, and when will the economy turn for the better – nobody knows.

At a recent dialogue, a university student questioned Lee Hsien Loong “will I still have a future in Singapore? Will we still have good jobs? Why did the Singapore economy suddenly turned for the worst?”

This has to do with China’s One-Belt One-Road policy and Malaysia is a key player in this policy. In recent years, China has been heavily investing in neighbouring state Johor Bahru’s infrastructures – seaport, airport and even now the railway system.

This also means Singapore’s status as a seaport country has been replaced by Shanghai. This year, Singapore’s transport volume is only 80% of Shanghai. Also, China no longer pass their sea goods via Singapore and has instead passed them to neighbouring countries like Malaysia and Indonesia.

China even adopted the Shenzhen-strategy, by uplifting the infrastructure of Johor Bahru to compete with Singapore. Here is the question: Why did China painstakingly plan to act against Singapore?

*Introduction to other guests – Host A summarise again, introduce guest speaker B*

Guest speaker B: This could be a coincidence, but this coincides with the death of Lee Kuan Yew. When Lee Kuan Yew passed away, Singapore’s economy start collapsing. From May 2015, Singapore’s key sectors have been declining. Retail, finance, logistics – every sector is faced with direction competition from China.

Host A: China seems to be gloating at Singapore’s failure at the moment.

Guest speaker B: This is the strategy. China wants to take over as the leader of South East Asia countries, and the ASEAN leader has always been taken by Singapore. So China wants to take down Singapore and take over South East Asia. Singapore claims to be a Chinese society however Singapore leans towards US and UK. In such circumstances, even Philippines bowed down. If China can take Singapore down, it means US no longer have any allies in South East Asia. Taking Singapore down means taking out the US presence in South East Asia.

Host A: Here are some images of popular shopping district Orchard Road. It used to be a very popular shopping district but the malls are now empty.

Guest speaker B: This is a major change because Orchard Road is Singapore’s key shopping district. However, now there is no crowd like before. Even shoppers are also not buying from these retail outlets. Everywhere is under construction but nobody knows if there any new shops after construction.

Host A: So now, let’s focus what did China do over the years.

Guest speaker B: Singapore is now US’s only partner and the only knight in the South East Asia region. The plot to take down Singapore took 10 years. First let’s cover sea trade logistics, let’s focus on the greater geography. China and Thailand are building the Kra Canal. When that is built, there is no need for ships to pass by the Malacca Straits. Singapore’s sea port will collapse.

Look at this graph of Singapore’s container volume versus Shanghai. Over the years, Singapore and Shanghai has been competing closely with each other. But from 2014 and 2015, Singapore went into recession while Shanghai continue to prosper. This is how the trading volume of Singapore became only 80% of Shanghai’s.

Host A: China also has a port alliance with Malaysia and Indonesia. China now invest heavily in Johor Bahru to kick Singapore out just like it is doing now with Shenzhen to kick Hongkong away.

Guest speaker B: This is the ShenJun-strategy – make Shenzhen prosperous and Hongkong will be replaced. This is why China is investing in the Johor Bahru’s Iskandar Special Economic Region. Johor Bahru has always felt inferior to Singapore because it was “unluckily” located geographically. In 2006, Malaysia started the Iskandar Economic Region.

However China did not invest in the Iskandar region initially. It is only a few years later when China start pumping funds into the region and Johor Bahru starts to think about replacing Singapore. The total invested funds amounted to $40 billion. Therefore, it is only a matter of time Johor Bahru becomes the former Shenzhen. Johor Bahru even set up a number of tax-free zones to compete with Singapore.

Then, China only invested in the manufacturing sector of Malaysia. Excluding property, the amount was $13.6 billion and created 20,000 jobs. China even planned to send their citizens as migrants to Malaysia – literally creating Shenzhen.

 

[ahojunk]

Malaysia's Najib risks backlash at home after deals with China
| Mon Nov 7, 2016 | 12:38am EST | Reuters

Malaysia's Prime Minister Najib Razak attends a meeting with China's Premier Li Keqiang at the Great Hall of the People, in Beijing, China, November 1, 2016. REUTERS/Jason Lee/File Photo

By Joseph Sipalan | KUALA LUMPUR

Malaysian Prime Minister Najib Razak is facing grumblings back home that he is "selling off" his country after returning from China with about $34 billion worth of deals, which could help lift the economy ahead of elections.

The concerns emerge from a deep-seated distrust of the Chinese among Malaysia's Malay-Muslim majority, who form the support base for the ruling United Malay National Organisation (UMNO).

Najib was quick to dismiss the concerns after concluding his six-day visit to China.

"Some have scaremongered that Malaysia is being sold off. This is absurd and absolutely false," Najib said in a statement on Friday, insisting the projects will be owned and run by Malaysians.

The deals include Malaysia's first significant defense deal with China, an agreement to buy four Chinese naval vessels.

Najib's visit followed that of Philippines President Rodrigo Duterte, who announced his country's "separation" from the United States and signed agreements and loan pledges worth an estimated $24 billion with Beijing.

UMNO leaders expect Najib to brief them soon so the party can start allaying any fears about China's rising influence in Malaysia, said Shahidan Kassim, a senior member of the party's supreme council and a federal minister.

"All of this has its pros and cons, but in UMNO we must have a policy statement on this," he told Reuters.


ETHNICITY AND RELIGION

Ethnicity and religion are sensitive issues in Malaysia, where Muslim Malays form a little over 50 percent of the population of 31 million. Ethnic Chinese make up about 25 percent and ethnic Indians about 7 percent.

Malaysia's ethnic Chinese have long been a scapegoat for the Malay community, with UMNO leaders pointing to ethnic Chinese economic dominance to unite Malays and keep a firm grip on political power.

Last year, ethnic ties became strained under the weight of two opposing demonstrations largely split along racial lines. A 'Malay pride' rally blocked off Chinatown in Kuala Lumpur in a show of strength following an anti-government rally dominated by Malaysian-Chinese. Najib's government summoned China's ambassador over his remarks ahead of the "Malay pride' rally.

Clashes are expected again this year as thousands of anti-government demonstrators plan to protest in Kuala Lumpur on Nov. 19, calling for Najib to resign over the money-laundering scandal linked to Malaysian state investment fund, One Malaysia Development Berhad (1MDB).

A member of UMNO's policy-making Supreme Council, Irmohizam Ibrahim, said Najib's deals with China have stoked concerns among party leaders.

"We're expecting the prime minister to address these issues at our next Supreme Council meeting," Irmohizam told Reuters.

"We will then need to go down and explain to the grassroots that ... the deals are purely for the economy and trade," said Irmohizam, who also serves as Najib's strategic director in the party.

Malaysia's opposition is questioning the China agreements but for different reasons, saying it is tilting the country toward Beijing.

"Malaysia's economic dependence on any single nation is unreasonable and will affect the country's freedom and geo-political strategy and foreign policy," jailed opposition leader Anwar Ibrahim said in a statement issued from prison.


"GOLDEN JEWELRY"

Najib is planning elections in the second half of 2017, a government source has told Reuters.

The investments from China could help the prime minister pump-prime Malaysia's economy before then. A 2017 national budget Najib announced last month calls for only a modest spending rise, amid a continuing slump in commodity prices.

Senior UMNO leaders and urban Malays, however, are uncomfortable that Chinese money will drive the development of strategic assets, according to James Chin, director at the University of Tasmania's Asia Institute.

Chin says the Malay elite welcomes Chinese investment in purely commercial deals such as property purchases, but are more wary about agreements such as a 55 billion ringgit ($13.11 billion) deal for the Chinese to develop a rail network.

"The problem with these deals is that they are seen as selling the country's golden jewelry," Chin said.

Ties between Malaysia and China reached a high point last December when Beijing came to Najib's rescue with a $2.3 billion deal to buy 1MDB assets, helping ease concerns over its mounting debt.

Relations with Washington became strained after the U.S. Department of Justice filed lawsuits in July implicating the prime minister in the money-laundering probe at 1MDB, the advisory board of which Najib chaired until recently.


SHIFTING POSITIONS

China and Malaysia agreed to enhance naval cooperation, after sealing the deal to buy four Littoral Mission ships, fast patrol vessels that can be equipped with a helicopter flight deck and carry missiles.

Malaysia, along with three other members of the Association of Southeast Asian Nations (ASEAN) - the Philippines, Vietnam and Brunei - are among the countries contesting territorial claims with China over the South China Sea. China claims nearly the entire body of water as its territory.

Najib said last month the disputes should be resolved through dialogue with Beijing.

Duterte during his visit persuaded the Chinese to let Philippine fishermen operate around a disputed shoal, before declaring his unhappiness with Washington over its criticism of his lethal antidrug campaign.

ASEAN, meanwhile, has struggled to come up with a unified position on the South China Sea disputes at its meetings.

"ASEAN will not go away... but increasingly the idea of the multilateral track will be downgraded as now we see a swing from two key claimants to a more bilateral approach," said Euan Graham, director of the international security program at the Lowy Institute, a Sydney-based think-tank.


(Editing by Praveen Menon and Bill Tarrant)

 

[UMNOPutra]

Malaysian economic report by OECD (November 2016)

http://www.oecd.org/eco/surveys/economic-survey-malaysia.htm

 

[Hindustani78]

Wed Nov 16, 2016 | 4:54am EST
Japan gives Malaysia two patrol boats
Malaysian Prime Minister Najib Razak (L) shakes hands with Japanese Prime Minister Shinzo Abe at the end of their joint news conference at Abe's official residence in Tokyo, Japan November 16, 2016. REUTERS/Kimimasa Mayama/Pool

http://www.reuters.com/article/us-japan-malaysia-idUSKBN13B0X4

Japanese Prime Minister Shinzo Abe said on Wednesday that Tokyo will give Malaysia two patrol boats, a move that visiting Malaysian Prime Minister Najib Razak welcomed as an aid to promoting stability in the South China Sea.

Najib arrived in Japan on Tuesday on a visit that comes just weeks after he was in China on a six-day visit in which he agreed to buy four Chinese patrol boats in his nation's first significant defense deal with China.

"Today's agreement - Japan is willing to hand over two decommissioned patrol vessels to our maritime enforcement agency - shows the nature of our relationship is now broad-based," Najib said.


Malaysia, along with three other members of the Association of Southeast Asian Nations (ASEAN) - the Philippines, Vietnam and Brunei - are among the countries contesting territorial claims with China over the South China Sea. China claims nearly the entire body of water as its territory.

Najib said talks with Abe touched on this issue, adding: "Malaysia continues to play its part to ensure the South China Sea will be an area of peace and stability, without which we cannot achieve prosperity."

Discussions also included the planned high-speed rail link between Singapore and the Malaysian capital of Kuala Lumpur, set to be built by 2026 and with the two neighbors set to finalize a bilateral agreement in December.

Japan has expressed interest in the project, and Najib said he had assured Abe that the bidding process would be conducted in a fair and transparent way.

(Reporting by Elaine Lies; Editing by Simon Cameron-Moore)

 

[rondo.royal2]

Scavengers hurt diving industry

British battleships HMS Repulse (above) and HMS Prince of Wales are among the ships sunk during World War II near Pulau Tioman being illegally scavenged for scrap metal by boats from outside Malaysia.PHOTO: POPPERFOTO/GETTY IMAGES

THE future of recreational wreck diving appears bleak with the damage caused to shipwrecks by illegal salvage operators, who cannibalise sunken wrecks on the seabed off Pulau Tioman, Pahang.

Efforts must be made to preserve the shipwrecks, which comprised warships, submarines, super tankers and freighters, in Malaysian waters, urged the diving fraternity.

B&J Diving Centre Sdn Bhd managing director Zainal Rahman Karim said it was a shame that sunken ships with a historical significance were disappearing.

He said the country’s underwater sites that had heritage value drew a large number of tourists, who would go on liveaboard diving cruises and day-trip explorations to such sites.

“It is bad news when divers say shipwrecks in Malaysia are being blown apart.

“The popularity of the sites is declining. How would the survivors feel when they hear that the ships they served on during World War 2 are being torn apart?”

He said the HMS Prince of Wales and HMS Repulse Survivors Association and the next of kin of those who died in the war were concerned about the damage to the sunken ships.

He said they hoped that the authorities would act swiftly to stop the further demolition of the shipwrecks.

“The shipwrecks are big attractions and an icon for technical diving enthusiasts.

” Zainal, better known as Ben among those in the diving community, said although the sites of the HMS Prince of Wales and HMS Repulse wrecks were referred to as “war graves”,

they were not legally war graves. He said the activities of illegal salvage operators were uncovered when they looted several sunken Japanese ships off Penang and in the Straits of Malacca last year.

He said the scavengers then moved their operations to the South China Sea and Java Sea off Indonesia, following reports of their activities.

“If all shipwrecks with a historical significance are protected, no one can remove anything from the country’s seabed. Our concern is that the sunken ships will be removed within the next few years.

” Zainal, who has more than 25 years of diving experience, said scavengers had removed the massive propellers of HMS Repulse and HMS Prince of Wales. He said each propeller blade was worth more than SG$25,000 (RM77,000).

He said the salvage operators ran as syndicates and had a proper understanding of the location of each sunken ship.

“The syndicates include dive crew and crane operators, who would take up any job as long as they are promised lucrative returns.

” Zainal said the explosives used to blow up the sunken ships posed a threat to marine life.

The director of a Singapore-based diving company, David Liu, said he had, on numerous occasions, tried to curb illegal scavenging.

“I am prepared to work with the authorities to find a solution to the problem.

” He said he had risked his life to preserve shipwrecks by taking divers to the site of HMS Repulse to place memorial flags.

However, he was caught by Malaysian authorities during a diving trip this year and consequently, spent 29 hours in detention.

Liu said British families visited the sites every year to perform simple rituals, such as laying flowers, cleaning the Union Jack flag and conducting services in memory of their loved ones, who had served as crewmen on board the ships.

Read More : new straits time online

 

[UMNOPutra]

Scavengers hurt diving industry

British battleships HMS Repulse (above) and HMS Prince of Wales are among the ships sunk during World War II near Pulau Tioman being illegally scavenged for scrap metal by boats from outside Malaysia.PHOTO: POPPERFOTO/GETTY IMAGES

THE future of recreational wreck diving appears bleak with the damage caused to shipwrecks by illegal salvage operators, who cannibalise sunken wrecks on the seabed off Pulau Tioman, Pahang.

Efforts must be made to preserve the shipwrecks, which comprised warships, submarines, super tankers and freighters, in Malaysian waters, urged the diving fraternity.

B&J Diving Centre Sdn Bhd managing director Zainal Rahman Karim said it was a shame that sunken ships with a historical significance were disappearing.

He said the country’s underwater sites that had heritage value drew a large number of tourists, who would go on liveaboard diving cruises and day-trip explorations to such sites.

“It is bad news when divers say shipwrecks in Malaysia are being blown apart.

“The popularity of the sites is declining. How would the survivors feel when they hear that the ships they served on during World War 2 are being torn apart?”

He said the HMS Prince of Wales and HMS Repulse Survivors Association and the next of kin of those who died in the war were concerned about the damage to the sunken ships.

He said they hoped that the authorities would act swiftly to stop the further demolition of the shipwrecks.

“The shipwrecks are big attractions and an icon for technical diving enthusiasts.

” Zainal, better known as Ben among those in the diving community, said although the sites of the HMS Prince of Wales and HMS Repulse wrecks were referred to as “war graves”,

they were not legally war graves. He said the activities of illegal salvage operators were uncovered when they looted several sunken Japanese ships off Penang and in the Straits of Malacca last year.

He said the scavengers then moved their operations to the South China Sea and Java Sea off Indonesia, following reports of their activities.

“If all shipwrecks with a historical significance are protected, no one can remove anything from the country’s seabed. Our concern is that the sunken ships will be removed within the next few years.

” Zainal, who has more than 25 years of diving experience, said scavengers had removed the massive propellers of HMS Repulse and HMS Prince of Wales. He said each propeller blade was worth more than SG$25,000 (RM77,000).

He said the salvage operators ran as syndicates and had a proper understanding of the location of each sunken ship.

“The syndicates include dive crew and crane operators, who would take up any job as long as they are promised lucrative returns.

” Zainal said the explosives used to blow up the sunken ships posed a threat to marine life.

The director of a Singapore-based diving company, David Liu, said he had, on numerous occasions, tried to curb illegal scavenging.

“I am prepared to work with the authorities to find a solution to the problem.

” He said he had risked his life to preserve shipwrecks by taking divers to the site of HMS Repulse to place memorial flags.

However, he was caught by Malaysian authorities during a diving trip this year and consequently, spent 29 hours in detention.

Liu said British families visited the sites every year to perform simple rituals, such as laying flowers, cleaning the Union Jack flag and conducting services in memory of their loved ones, who had served as crewmen on board the ships.

Read More : new straits time online

We have to be more alert to Indos .. if not .. they can steal the shipwrecks ... as they did in Java Sea....

 

[rondo.royal2]

^^^
you can write a title " scavengers hurt diving industry " on google search ,hasilnya berita dari new straits time ..oct 26 2015 aka berita tahun kemarin .

So..
British battleships HMS Repulse (above) and HMS Prince of Wales are among the ships sunk during World War II near Pulau Tioman being illegally scavenged for scrap metal by boats from outside Malaysia... The scavengers then moved their operations to the java sea .

we have to be more alertness to malaysia .. If not ..they can steal shipwrecks ..their operations to the sunda strait.. Banda sea..bali sea.. Makassar strait.. flores sea.. Arafura sea..celebes sea..halmahera sea etc

As they did in near pulau tioman

 

[rondo.royal2]

according to new straits time " by boats from outside malaysia " it seems like cover up the crimes committed by scavengers in malaysia.

even according to new straits time with a title "illegal divers strip ship sunk in ww2 for scrap " that the boat operators are mostly from vietnam and thailand


FYI
The new straits time is english language newspaper..which is controlled by media prima bhd .. A company owned by najib's ruling united malays national organisation (UMNO).. Always faced some curbs on free expression.

It shows that "new straits time " has been used by UMNO and the government to wage their propaganda

 

[lcloo]

$100 Billion Chinese-Made City Near Singapore 'Scares the Hell Out of Everybody'
Planeloads of buyers fly in as condos rise from the sea
November 22, 2016
Pooja Thakur Mahrotri
En Han Choong
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Photographer: Ore Huiying/Bloomberg


Scale models of Country Garden's Forest City project on display in Johor Bahru, Malaysia.

The landscaped lawns and flowering shrubs of Country Garden Holdings Co.’s huge property showroom in southern Malaysia end abruptly at a small wire fence. Beyond, a desert of dirt stretches into the distance, filled with cranes and piling towers that the Chinese developer is using to build a $100 billion city in the sea.

While Chinese home buyers have sent prices soaring from Vancouver to Sydney, in this corner of Southeast Asia it’s China’s developers that are swamping the market, pushing prices lower with a glut of hundreds of thousands of new homes. They’re betting that the city of Johor Bahru, bordering Singapore, will eventually become the next Shenzhen.

“These Chinese players build by the thousands at one go, and they scare the hell out of everybody,” said Siva Shanker, head of investments at Axis-REIT Managers Bhd. and a former president of the Malaysian Institute of Estate Agents. “God only knows who is going to buy all these units, and when it’s completed, the bigger question is, who is going to stay in them?”

The Chinese companies have come to Malaysia as growth in many of their home cities is slowing, forcing some of the world’s biggest builders to look abroad to keep erecting the giant residential complexes that sprouted across China during the boom years. They found a prime spot in this special economic zone, three times the size of Singapore, on the southern tip of the Asian mainland.

The Forest City project will span four artificial islands.
Photographer: Ore Huiying/Bloomberg
The scale of the projects is dizzying. Country Garden’s Forest City, on four artificial islands, will house 700,000 people on an area four times the size of New York’s Central Park. It will have office towers, parks, hotels, shopping malls and an international school, all draped with greenery. Construction began in February and about 8,000 apartments have been sold, the company said.

It’s the biggest of about 60 projects in the Iskandar Malaysia zone around Johor Bahru, known as JB, that could add more than half-a-million homes. The influx has contributed to a drop of almost one-third in the value of residential sales in the state last year, with some developers offering discounts of 20 percent or more. Average resale prices per square foot for high-rise flats in JB fell 10 percent last year, according to property consultant CH Williams Talhar & Wong.

Country Garden, which has partnered with the investment arm of Johor state, launched another waterfront project down the coast in 2013 called Danga Bay, where it has sold all 9,539 apartments. China state-owned Greenland Group is building office towers, apartments and shops on 128 acres in Tebrau, about 20 minutes from the city center. Guangzhou R&F Properties Co. has begun construction on the first phase of Princess Cove, with about 3,000 homes.

Country Garden said in an e-mail it was “optimistic on the outlook of Forest City” because of the region’s growing economy and location next to Singapore. R&F didn’t respond to questions about the effects of so many new units and Greenland declined to comment.




Singapore Draw

“The Chinese are attracted by lower prices and the proximity to Singapore,” said Alice Tan, Singapore-based head of consultancy and research at real-estate brokers Knight Frank LLP. “It remains to be seen if the upcoming supply of homes can be absorbed in the next five years.”

The influx of Chinese competition has affected local developers like UEM Sunrise Bhd., Sunway Bhd. and SP Setia Bhd., who have been building projects around JB for years as part of a government plan to promote the area. First-half profit slumped 58 percent at UEM, the largest landowner in JB.

A decade ago, Malaysia decided to leverage Singapore’s success by building the Iskandar zone across the causeway that connects the two countries. It was modeled on Shenzhen, the neighbor of Hong Kong that grew from a fishing village to a city of 10 million people in three decades. Malaysian sovereign fund Khazanah Nasional Bhd. unveiled a 20-year plan in 2006 that required a total investment of 383 billion ringgit ($87 billion).

Singapore’s high costs and property prices encouraged some companies to relocate to Iskandar, while JB’s shopping malls and amusement parks have become a favorite for day-tripping Singaporeans. In the old city center, young Malaysians hang out in cafes and ice cream parlors on hipster street Jalan Dhoby, where the inflow of new money is refurbishing the colonial-era shophouses.

Outside the city, swathes of palm-oil plantations separate isolated gated developments like Horizon Hills, a 1,200-acre township with an 18-hole golf course.

“The Chinese developers see this as an opportunity. A lot of them say Iskandar is just like Shenzhen was 10 years ago,” said Jonathan Lo, manager of valuations at CH Williams Talhar & Wong, a property broker based in Johor Bahru. “Overseas investors coming to Malaysia is a new phenomenon so it’s hard to predict.”

Construction soon outpaced demand. To sell the hundreds of new units being built every month, some companies took to flying in planeloads of potential buyers from China, prompting low-cost carrier AirAsia Bhd. to start direct flights in May connecting JB with the southern Chinese city of Guangzhou.

On the first such flight, 150 of the 180 seats were taken by a subsidized tour group organized by Country Garden. Almost half of them ended up buying a residence, the developer said in an e-mail.


stewardesses.

The visitors filed into a vast sales gallery where agents explained the enormity of the project using a replica of the finished town, with model buildings as tall as people. They viewed show flats with marble floors and golden-trimmed furniture, dined on a buffet spread and were encouraged to sign on the spot. A two-bedroom apartment cost as little as 1.25 million yuan ($181,400), about one-fifth of the price of a similar-sized private apartment in central Singapore.

But JB is not Shenzhen. The billions poured into the economic zone in southern Guangdong in the 1980s and 1990s by Hong Kong and Taiwanese firms was soon dwarfed by Chinese investment as factories sprang up all along China’s coast.

In Malaysia, investment growth is slowing, slipping to 2 percent year on year in the third quarter, from more than 6 percent in the previous quarter. The value of residential sales in Malaysia fell almost 11 percent last year, while in Johor the drop was 32 percent, according to government data.

“I am very concerned because the market is joined at the hip, if Johor goes down, the rest of Malaysia would follow,” said Shanker, at Axis-REIT Managers, who estimates that about half the units in Iskandar may remain empty. “If the developers stop building today, I think it would take 10 years for the condos to fill up the current supply. But they won’t stop.”

Ongoing construction of the Country Garden Danga Bay project.
Photographer: Ore Huiying/Bloomberg
Property Pipeline

Developers have a pipeline of more than 350,000 private homes planned or under construction in Johor state, according to data from Malaysia’s National Property Information Centre. That’s more than all the privately built homes in Singapore. Forest City could add another 160,000 over its 30-year construction period, according to Bloomberg estimates, based on the projected population.

“Land is plentiful and cheap,” said Alan Cheong, senior director of research & consultancy at Savills Singapore. “But buyers don’t understand how real estate values play out when there is no shortage of land.”

The developers haven’t been helped by government measures designed to prevent overseas investors pushing up prices. In 2014, Malaysia doubled the minimum price of homes that foreigners can buy to 1 million ringgit, and raised capital gains tax to as much as 30 per cent for most properties resold by foreigners within five years.

The stream of new developments has scared away some investors, pushing developers to concentrate more on finding families who will live in the apartments, said Lo at CH Williams. Profit margins have fallen to around 20 percent, from 30 percent when land was cheap a few years ago, according to his firm.

Ongoing construction of the Tropicana Corp's Danga Bay project.
Photographer: Ore Huiying/Bloomberg
Singapore billionaire Peter Lim’s Rowsley Ltd. said last year it will no longer build homes in Iskandar and will instead turn its Vantage Bay site into a healthcare and wellness center.

“The Chinese players have deep financial resources and are building residential projects ahead of demand,” Ho Kiam Kheong, managing director of real estate at Rowsley said in an interview. “If we do residential in Iskandar, we would be only a drop in the ocean. We can’t compete with them on such a large scale.”

UEM Group Bhd., the biggest landowner in Iskandar, is selling plots to manufacturers to boost economic activity in the area.


“The market is joined at the hip, if Johor goes down, the rest of Malaysia would follow”

A Country Gardens ad outside the sales gallery.
Photographer: Ore Huiying/Bloomberg
“Industries are the queen bee,” creating jobs and wealth for local residents, said Chief Executive Officer Izzaddin Idris. “That will bring a demand for the houses we are building.”

U.S.-based chocolate maker Hershey Co. is among those building a plant in Iskandar, joining tenants such as amusement park Legoland Malaysia and Pinewood Iskandar Malaysia Studios—a franchise of the U.K.-based movie studio.

Meanwhile, sales reps sell a Utopian dream—a city of the future with smart, leafy buildings and offices full of happy, rich residents.

“It will take a while for all the parts to fall into place: infrastructure, manufacturing, education, healthcare and growth in population,” said Ho at Rowsley. “But I have no doubt it will happen eventually.”

—With assistance from Emma Dong.

 

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Most of Chinese soldiers are from PLA Hong Kong Garrison special force, including a nine female combat team. This is the first time PLA Hong Kong garrison has gone overseas for exercise. English code for this exercise is Peace and Friendship 2016.

Home > News
Joint military exercise to enhance collaboration, disaster relief
2016-11-23 13:45

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  Zulkifeli (front R) shaking hands with Fang Fenghui as Ambassador Huang (front L) looks on, after the opening of China-Malaysia joint military exercise. Photo courtesy: Sin Chew Daily

DENGKIL, Nov 22 (Sin Chew Daily) -- Armed forces chief General Tan Sri Zulkifeli Mohd Zin said Exercise Aman Youyi 2016, the joint military exercise between China and Malaysia, would focus on humanitarian assistance and disaster relief, and both countries would enhance bilateral military collaboration transcending politics, religion and race.

Zulkifeli said during the opening of Exercise Aman Youyi 2016 today that humanitarian assistance and disaster relief were essential since a total of 160 disaster cases took place in Asia Pacific last year, causing 16,000 deaths and loss amounting to US$45.1 billion, adding that all countries would need to strengthen their operations in this area.

"Such friendly joint military exercise will help enhance synchronization with all countries on humanitarian assistance and disaster relief operations. It will also help increase awareness.

"We believe while disasters bring casualties and damages, aid relief provided by countries are a reflection of humanitarian spirit."

Among those attending the ceremony were Fang Fenghui, a member of China's Central Military Commission (CMC) and chief of the Joint Staff Department under the CMC, and Huang Huikang, China's Ambassador to Malaysia.

Zulkifeli said the joint military exercise which started in 2014, had entered its third year and that Malaysia and China had succeeded in consolidating ties through military cooperation.

He also thanked the Royal Thai armed forces for sending ten representatives as observers and, hoped in future Thailand would send its troops to participate in the joint military exercise.

Exercise Aman Youyi 2016 is held from November 21 to 25 at Paya Wetlands Park in Dengkil, Selangor.

215 soldiers from Malaysia armed forces and 195 from China's People's Liberation Army (PLA) are taking part in the exercise.

During the five-day exercise, Malaysia armed forces will demonstrate jungle survival, tracking mission and hand-to-hand combat skills while the PLA will demonstrate short range shooting and hand-to-hand combat skills.

Both countries will also exchange information and share their experiences in humanitarian assistance and disaster relief operations.