Infrastructure spending along these lines will act as property boosters for selected areas in Kuala Lumpur and Greater Kuala Lumpur

By Khalil Adis

The last time I was in KL was in January 2020 where I shared the growth areas along the different train lines at Havoc Hartanah.

Despite not being able to physically be present in Kuala Lumpur now due to the Restricted Movement Control Order (RMCO), I wish to point out that there are growth area that prospective buyers and investors should watch out for.

Here are the eight growth areas along the different train lines ranked from the least to most affordable*:

*Note: 
1. Property transactions are based on data captured on Brickz.
2. Monthly mortgage is based on a loan tenure of 35 years with an interest rate of 4.25%. 
3. Affordability is based on the mortgage servicing ratio (MSR) capped at 30% of a borrower's gross monthly income of RM3,000.
4. A monthly mortgage of above RM900 is considered unaffordable.​

#1: Pusat Bandar Damansara

Median transacted price: RM4,000,000 
Monthly mortgage: RM16,484.18
Verdict: Least affordable

Dubbed "the Beverly Hills of Malaysia", Damansara Heights is the most desired address in the country. This is a home among Malaysia's who's who and the address for those who have arrived.

Pusat Bandar Damansara is also a growth area as it is located next to Damansara City. Comprising Menara Hong Leong, Wisma GuocoLand, DC Residency, DC Mall and Sofitel Kuala Lumpur Damansara, Damansara City is an Entry Point Project (EPP) which the Malaysian government had announced in September 2010 to take Kuala Lumpur to even greater heights under its Economic Transformation Programme (ETP) roadmap. 

Soon, it will be home to Pavilion Damansara Heights. Set to open its doors come 2020, the mall will feature 1.17 million sq ft of retail therapy. Amenities here are aplenty to cater to the discerning tastes of the affluent. From high-end grocers at Ben's Independent Grocer to organic restaurants, the lifestyle choices to live the good life here are endless.

#2: Bandar Utama

Median transacted price: RM1,050,000
Monthly mortgage: RM4,327.10
Verdict: Least affordable

Bandar Utama needs no introduction. Home to 1 Utama Shopping Centre, The Curve, IKEA, AEON Bandar Utama, One World Hotel and KPMG Tower, this bustling township comprises mainly landed homes making it ideal for those who prefer a low-density living environment.

Previously, Bandar Utama was very inaccessible. However, since the commencement of the  Sungai Buloh - Kajang Line  (SBK Line) on 16 December 2016, accessibility to Bandar Utama has been greatly enhanced. In addition, a new 35-metre pedestrian link-bridge now connects the station's Entrance B to One World Hotel near the newly relocated Zuan Yuan Chinese Restaurant and the Ground Floor of 1 Utama.

By November 2023, Bandar Utama MRT Station will serve as an interchange station to the LRT Bandar Utama-Klang Line (Klang Valley LRT Line 3). Costing RM16.63 billion, this 37km line will span from Bandar Utama to Johan Setia station with a total of 19 stations. When completed, it is expected to serve 2 million commuters residing in the Western Corridor of Klang Valley.

#3: Subang Jaya

​Median transacted price: RM585,000 
Monthly mortgage: RM4,327.81
Verdict: Medium affordable

Before the advent of Transit Oriented Developments (TODs), Sime Darby has been actively promoting this concept in its township development spanning from Subang Jaya to Ara Damansara.

Subang Jaya is a bustling township that is served by the Kelana Jaya LRT Extension Line which became fully operational in 2016. This extension is part of the government's initiative to extend public transportation to residents living in the southwestern part of Selangor such as Subang Jaya and to Puchong. 

Comprising 13 new stations and covering a distance of 17.4 km, this new extension will bring the total length of the Kelana Jaya LRT Line from 29 km to 46.4 km. The LRT extension line spans from Lembah Subang to Putra Heights and costs RM8 billion to construct.

Connectivity to the airport was recently enhanced in May 2018 via the Skypark Link service that you can catch from Subang Jaya LRT station to Terminal Skypark station. Costing RM533 million to build, the Skypark Link spans some 24km from KL Sentral to Terminal Skypark. 

#4: Jalan Pudu

Median transacted price: RM824,585 
Monthly mortgage: RM3,398.15
Verdict: Medium affordable

Smacked in between Tun Razak Exchange and Bandar Malaysia, Jalan Pudu is located within KL's "Golden Triangle". The former is almost completed and is served by the Tun Razak Exchange (TRX) MRT station while the latter will be served by Bandar Malaysia (North) MRT station. TRX will be Malaysia's first dedicated financial district with a gross development value (GDV) of RM40 billion and with a total gross floor area of 20 million square feet. This iconic project is part of the Malaysian government's Economic Transformation Programme (ETP) to strengthen Kuala Lumpur as the country's financial capital.

Bandar Malaysia will have a gross development value (GDV) of RM150 billion. It will house the High Speed Rail station and two MRT stations - Bandar Malaysia North and Bandar Malaysia South. Bandar Malaysian North will be an MRT station on its own serving the huge mixed-use development. The site area is around 196 hectares and will comprise 27,000 quality and affordable homes. There will also be a dedicated commercial district to support new start-ups as well as small and medium-sized enterprises (SMEs). 

#5: Cyberjaya

Median transacted price: RM512,000
Monthly mortgage: RM2,109.98
Verdict: Medium affordable

Located on the southernmost tip of Puchong, Cyberjaya is poised to enjoy the economic spillover benefits from three major government projects - KLIA Aeropolis, Malaysia Vision Valley and Cyber City Centre in Cyberjaya. The growth areas here will be near Sierra and Cyberjaya City Centre MRT stations.

Being a relatively new township development, Sierra holds the most promise for capital appreciation of property values as many infrastructure projects (including the Sierra MRT station) are still underway. It also with 10 minutes drive to the bustling township of Puchong where it is home to many mega malls and trendy cafes. Sierra is home to only landed homes at the moment.

Meanwhile, Cyberjaya City Centre MRT station is a transit-oriented development (TOD) project to be developed by Malaysian Resources Corp Bhd (MRCB). With its experience in building the transport hub in KL Sentral, MRCB will be developing a new city that will be integrated with the MRT station. Phase one is expected to generate a gross development value (GDV) of RM5.35 billion. It will feature a 200,000 sq ft convention centre, a 300- to 400-room business hotel, low and high-rise office buildings and a retail podium. Cyberjaya City Centre will have a development plan spanning 20 years. The MRT station is located just opposite Lim Kok Wing University of Creative Technology.

#6: Sungai Besi

Median transacted price: RM510,000 
Monthly mortgage: RM2,101.73
Verdict: Medium affordable

Sungai Besi is located in a growth area in between Bandar Malaysia and Cyberjaya City Centre. There are still homes in the secondary market priced below RM500,000 here. Home to NSK Kuchai Lama and Terminal Bersepadu Bandar Tasek Selatan, Sungai Besi will be served by the upcoming Sungai Besi MRT station via the Sungai Buloh-Serdang-Putrajaya (SSP Line ).

Meanwhile, Sungai Besi LRT station will be upgraded to an interchange station to connect commuters to this MRT station built adjacent to it. When completed, it will also serve as an interchange to the upcoming High Speed Rail station. Sungai Besi is strategically located and is highly accessible up north to downtown KL and down south to Putrajaya and Cyberjaya via the Sungai Besi Highway.

#7: Nilai

Median transacted price: RM215,000 
Monthly mortgage: RM886.03
Verdict: Most affordable

Nilai is poised for further growth as it is located within the Malaysia Vision Valley. Covering Nilai to Port Dickson, it will have a proposed area of 108,000 hectares. The upcoming industries include high tech, logistics, education, health, tourism and sports. The Malaysia Vision Valley is expected to create some 1.35 million jobs by 2035 and investments of more than RM417.6 billion by 2045.

To support the Malaysia Vision Valley, the Seremban HSR station will be sited in Nilai within the Labu and Kirby estates. Seremban HSR station will also be an interchange station to the Seremban Komuter Line and KTM Electric Train Service.

#8: Bandar Baru Nilai

Median transacted price: RM166,955 
Monthly mortgage: RM688.03
Verdict: Most affordable

Bandar Baru Nilai is a growth area as it is located near to upcoming economic drivers in the pipeline that will include the Malaysia Vision Valley, KLIA Aeropolis and Cyberjaya City Centre. It also close to KLIA and KLIA2 that is served by Express Rail Link (ERL) comprising KLIA Express and KLIA Transit.

Soon, connectivity will be further enhanced via the Bangi-Putrajaya HSR station. The station will be located in the south of Klang Valley and within the state of Selangor at Kampung Abu Bakar Bagindar. There is also a proposed connection to the Putrajaya Monorail that will connect this station to Putrajaya Sentral MRT station. When completed, it will serve as an interchange station to Putrajaya Sentral Express Rail Link (ERL) and link commuters to KLIA and KLIA2.

A combination of COVID-19, an oversupply in residential properties and a lukewarm economy have made it a buyer’s market.

By Khalil Adis

Buying a property in Malaysia is a complex process unlike in Singapore.

Being a small country, one can rely on the Urban Redevelopment Authority’s (URA) masterplan to check for planning developments that will be taking place in the next 30 to 40 years.

In Malaysia, however, such information is scant making property buying an arduous and risky process.

When looking to buy a property, you should target the most affordable property but with the greatest potential for capital appreciation. 

How can you do that? Easy, simply by applying the following 5Cs:

#1: Check the masterplan

A masterplan would typically define a township’s development in the next one to two decades. 

​It would also showcase the different designated land use and transportation plans within that particular township. 

An area deemed highly desirable will attract businesses and residents. 

Think about why properties in KLCC and Bukit Bintang are expensive whereas other areas like Bukit Beruntung are not popular. 

With this in mind, you should find out as much as possible about your new neighbourhood.

 #2: Check the transport masterplan

Generally, properties close to transportation hubs such as MRT or LRT stations can command a premium of between five and 10 per cent over the long term.

This is because people generally want to live close to transportation hubs explaining why Transit Oriented Developments (TODs) have become very popular in KL and Greater KL.

This demand translates to an appreciation of one’s property. 

​Are there MRT or LRT stations that are being planned in your area? What about expressways?  

Study the upcoming Sungai Buloh-Serdang-Putrajaya (SSP Line) and LRT Bandar Utama–Klang Line (Klang Valley LRT Line 3) prior to your property purchase.


#3: Check budget allocation from the government

​ Government policies do have an indirect impact on a property. 

For example, budget allocation for improvements in public infrastructure and new economic drivers will have an impact on new and existing homes in and around the vicinity. 

So check where the government is building new hospitals and so on. 

One good example is the development of the Malaysia Vision Valley in Negri Sembilan.

#4: Check for economic drivers

Have you ever wondered why properties in KLCC are so expensive?

This is because it is home to a number of industries such as petrochemical, banking, finance, tourism and so on. 

The best strategy is to buy in an area that is not yet developed but where there are plans for various economic drivers. 

A government-mooted economic corridor or a reputable developer that has experience in building townships are great indicators if the area will succeed or not. 

#5: Check for job creation

 This is like feeling someone’s pulse. 

You need to check if the township you are eyeing for is going to be a ghost town or a happening place. 

If it is the former, perhaps you should stay away. 

If it is the latter, more and more workers will be drawn there, becoming a magnet for people and a hive of activity. 

People are the lifeblood of a neighbourhood.

As the area becomes highly desirable, people will naturally want to live and work in and around the vicinity. 

As there is an increase in demand, property prices in that area will also rise.

That is how a property appreciates over time.
​
Good luck in your property hunt!

A top neighbourhood in the HDB resale market, Sengkang is a good indicator of the changing mood and aspirations of young Singaporeans.

​By Khalil Adis

Having a newly carved GRC and heavy weight political office holders are generally the necessary ingredients to ensure a clean sweep during Singapore's General Election.

However, that does not appear to be the case in 2020.

As seen during the recently concluded election, even having the labour chief and a Senior Minister of State in the Ministry of Health and the Ministry of Transport could not save Sengkang GRC from its electoral defeat.

Helmed by Ng Chee Meng together with Dr. Lam Pin Min, Amrin Amin and Raymond Lye, the election witnessed  Sengkang GRC falling into the hands of the relatively young and inexperienced team from The Workers' Party.

Comprising He Ting Ru, Jamus Lim, Raeesah Khan and Louis Chua, The Workers' Party emerged victorious with a 52.13 per cent win against the PAP's 47.87 per cent.

The rejection of both the NTUC chief and transport minister speaks volume on how the electorate feels about employment and transportation issues.

In Sengkang GRC's case, they are both intertwined.

Last November, Dr. Lam announced in Parliament the banning e-scooters which saw the livelihoods of many food delivery drivers affected overnight.

The ban appeared to be the last straw that broke the camel's back.

Despite a closed-door session at Sengkang West constituency with Dr. Lam himself and a S$7 million assistance package, the session was reportedly a tense one.

Elsewhere in other constituencies, many PMD riders had also expressed their disappointment with their respective MPs.

Meanwhile, the younger team from The Workers’ Party was a breath of fresh air and appeared closer to the ground.

They were humble and earnest yet are backed  with a strong track record in their respective fields.

Jamus Lim, in particular, won over many Singaporeans’ heart during his live televised debate.

Even the police report filed against Raeesah Khan could not sway voters' opinion.

So what gives?

Young neighbourhood

As a district, Sengkang has a relatively young population.

According to data from SingStats, the total population of Sengkang was 244,600 in 2019.

Of this, 159,840 or 65.34 per cent were aged 45 and below.

If we were to break this down further, 213,380 or 87.23 per cent live in HDB flats.

Of this, the majority of them (99,640 or 46.69 per cent) live in four-room flats.

The young population is worried about bread-and-butter issues such as jobs and social mobility.

A segment of these HDB dwellers were food delivery drivers trying to supplement their incomes.

​That is until the ban of e-scooters affected their livelihoods.

Amid the COVID-19 pandemic, this has helped further exacerbate the unhappiness on the ground which has perhaps translated to protest votes on the ballot box.

The 'Jamus Lim' effect

Then, there is also the 'Jamus Lim' effect.

A newcomer to the political arena,  he mesmerised Singaporeans by being able to hold his own when pitted against the more experienced and senior politician, Dr. Vivian Balakrishan.

His message of not wanting to give the PAP "a blank cheque", seemed to resonate with many Singaporeans.

He subsequently became a trending topic on social media - a medium that is highly popular among young voters .

This, plus the rejection of gutter politics, as seen in the Raeesah Khan case, suggests that young and educated voters appreciate a clean fight and want checks and balances.

It also suggests that they are looking beyond municipal issues such as social inequality.

Clearly, character assasination and dangling carrots no longer work.

Sengkang is the most popular estate for HDB resale flats

Politics aside, Sengkang is the most popular HDB estate where 1,795 resale  flats changed hands in 2019, according to data from the HDB.

This was followed by Woodlands and Yishun at 1,794 and 1,791 transactions respectively.

According to HDB's first quarter of 2020 data, resale HDB flats in Sengkang were transacted at a median resale price of S$340,000, S$425,000, S$480,000 and S$565,000 for three-, four- and five-room flats respectively.

While there are other attractive mature estates with better amenities such as Toa Payoh and Ang Mo Kio, their resale value have nose-dived in recent years due to their diminishing number of leases left.

Meanwhile, the resale value of homes in newer estates like Sengkang appear to be better protected.

This has perhaps explained why Sengkang is a popular neighbourhood among young families.

The lure of living in Sengkang

One such person who is currently looking for a home here is property agent Ady Ahmari.

“The flats in Sengkang are younger but cheaper, especially in Anchorvale,” he said.

Another reason is their generous sizes which is something he can attest to.

The property agent sold a 1,130 sq ft four-room flat in the area two months ago for S$350,000.

“The units are very big and comparable to five-room Built-To-Order (BTO) flats which are around 1,184 sq ft,” he said.

Perhaps one surprising intangible reason that he is lured to looking for a home here is the parks.

“Sengkang has a big garden where my family can enjoy the outdoors,” he said.

Indeed, Sengkang Riverside Park is popular among residents here featuring a constructed wetland and is rich in biodiversity.

In fact, the Sengkang ActiveSG Gym which is located within Anchorvale Community Club is the only such gym of its kind in Singapore offering a scenic river view of the Sengkang Riverside Park.

Amenities aside, Ahmari said having an opposition party there has also influenced his decision.

“I need an alternative voice,” he said.

Swing towards opposition could be due to declining resale value of HDB homes

Homeownership and their property value are closely tied to voters sentiment.

Let's look into the case of Toa Payoh HDB estate which falls under the Bishan - Toa Payoh GRC.

In the 2015 General Election, the PAP scored a victory with 73.59 per cent of the vote share against the Singapore People's Party (SPP).

However, the recently concluded election saw a vote swing of 6.33 per cent towards the SPP at 32.74 per cent.

While the PAP won by 67.27 per cent, its support saw a decline of 6.33 per cent.

Likewise, in other mature estates such as Ang Mo Kio GRC and Tanjong Pagar GRC, the PAP witnessed a vote swing towards the opposition at 6.72 per cent and 14.58 per cent respectively.

Conclusion

​The endorsement of Sengkang GRC of The Workers' Party is reflective of the changing mood and aspirations of young Singaporeans.

Yes, they want a strong and capable government.

However, they also want a government who listens to them and not one who bulldozes through policies.

Some of these policies include the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) which they believe have contributed to social inequalities (CECA became a hot-button national topic last year when Erramalli Ramesh was caught on video verbally abusing a Singaporean security guard at a condominium).

They also want a government that does not resort to hitting below-the-belt when it comes to their political opponents.

While the PAP has retained power in many estates, the vote swing towards the opposition could also suggest that older voters want the diminishing value of their homes addressed.

As one elderly person that I spoke to puts it: “This is not what was promised by Lee Kuan Yew”.

9After a two month lockdown, Singapore is slowly easing its Circuit Breaker measure under Phase Two which began after June 18 at 2359 hours. Taken between 10.30am to 9pm on June 26, the Lion City is slowly buzzing back to life as it readies itself for its most challenging general election to be called on July 10. According to the Ministry of Health, the city-state recorded a total of 43,661 COVID-19 cases as of 28 June.

By Khalil Adis

As Malaysia eases its Movement Control Order (MCO), the Malaysian property market is set for a major reboot as COVID-19 will forever change the way the industry operates. Here are our top eight predictions.

By Khalil Adis

The Malaysian economy has bucked the trend growing by 0.7 per cent in the first quarter of 2020 from the 3.6 per cent growth in the previous quarter, data from the Department of Statistics Malaysia (DOSM) showed. 

However, the coronavirus pandemic has wreaked havoc in the job market with the unemployment rate increasing to 3.5 per cent compared to the 3.2 per cent recorded in the previous quarter.

"The increase in the unemployment rate was mainly attributed to the adverse impact of the Movement Control Order (MCO) on the labour market," said chief statistician Dato' Sri Dr. Mohd Uzir Mahidin

Meanwhile, employed persons in Malaysia increased to 1.6 per cent to 15.24 million persons in the first quarter of 2020.

The DOSM noted that the highest unemployment rate in Malaysia was in 1986 at 7.4 per cent.

Meanwhile, Bank Negara's Economic and Monetary Review 2019 stated that Malaysia's GDP growth is projected to be between -2.0 per cent to 0.5 per cent this year.

Noting that 2020 is "an exceptionally challenging year for the global economy", Bank Negara said global growth is expected to contract.

"While the Movement Control Order and measures to promote social distancing will dampen economic activity temporarily, they are necessary to contain the spread of the virus," Bank Negara said in a statement.

In terms of the construction sector, DOSM's data showed that it contracted 7.9 per cent from 1.0 per cent in the preceding quarter.

This is the lowest growth since the second quarter of 1999.

Moving forward, Dato' Sri Dr. Mohd Uzir Mahidin predicted that Malaysia is projected to record an unemployment rate of between 3.5 per cent and 5.5 per cent this year due to the impact from COVID-19

With the World Health Organization warning that COVID-19 "may never go away", a new normal in the property sector will emerge influencing how Malaysians will live, work and play.

Here are our top eight predictions arising from COVID-19:

#1: Property market will be extremely muted in 2020

The uncertainty arising from COVID-19 will have an impact on consumer spending. 

Malaysia is expected to enter a recession this year resulting in job losses.

As such, consumers will prefer to hold on to cash amid the uncertainties ahead.

This will likely worsen the supply glut that Malaysia is already experiencing at the moment.

According to data from the National Property and Information Centre (NAPIC), as of 2019, Malaysia has an existing stock of 5,727,814 residential units.

In addition, it has an incoming supply and planned supply of 443,161 units and 441,309 units respectively bringing the total supply to a whopping 6,612,284 units.

Developers with unsold inventory, especially in the medium to high-end segment, will be faced with a double whammy.

They either have to drop prices to entice local buyers or continue to bleed as border controls imposed in the country means foreign investors are not allowed to enter Malaysia to view properties.

Either way, the prognosis does not look very good for the market.

Developers with strong branding, cash flow and who are offering affordable homes for locals will come out as winners amid this pandemic.

As we speak, some developers are currently rolling out Ramadan and Hari Raya packages with a low deposit of RM1,000 to continue enticing buyers.

However, whether or not buyers will be able to get a bank loan is another matter altogether.

#2: Office space demand will decrease 

As businesses cut costs and working from home becomes the new norm, we can also expect a glut in office space supply to increase, particularly for Grade 'A' office.

According to data from NAPIC, as of 2019, Malaysia has an existing stock of 2, 549 office buildings with 22, 590, 473 sq m of space.

As more companies adopt the remote working model for good, existing office buildings will need to reconfigure their current space to factor in social distancing requirements.

Operators of coworking spaces and landlords will thus need to refurbish existing office spaces to continue attracting tenants.

New health requirements such as temperature takings and hand sanitisers may also translate to higher operating costs.

Meanwhile, developers with incoming and planned office supply in the pipeline will need to go back to the drawing board to redesign their office plans resulting in reduced floor density.

Data from NAPIC showed that Malaysia has an incoming and planned office supply of 51 buildings (2, 378, 131 sq m) and 15 buildings (398, 944) respectively as of 2019.

This sector will face downward pressure in their asking prices as more companies adopt a work from home policy.

Overall, the vacancy rate across Malaysia is expected to increase, further exacerbating the supply glut in the office market.

Developers who have already secured corporate tenants for upcoming office buildings in Kuala Lumpur such as Tun Razak Exchange (TRX) and Merdeka 118, before COVID-19 struck, are likely to emerge stronger from the crisis.

#3: Construction costs will increase due to late delivery of projects

The MCO restrictions have resulted in construction delays across all sectors of the property market.

During the MCO, construction sites were closed while materials which were sourced from overseas were impacted from the shut down of the global supply chain.

With the MCO now eased, construction has now restarted but with temperature screenings, staggered working hours and social distancing in place.

With construction now delayed by two to three months and with new safety requirements, we can expect construction costs to increase.

This will likely be passed on to consumers.

Whether or not such new projects can attract buyers with a higher per sq ft price remains to be seen due to the uncertainty in the economy and the job market.

Buyers with cash in hand may instead look to the secondary market where prices are more realistic.

#4: Tourism, food & beverage, transportation, travel, retail and hotel industries will be adversely affected

The MCO has seen a knock-off effect on the tourism, food & beverage, travel, retail and hotel sectors due to international and local travel restrictions.

According to the Malaysian Association of Hotels (MAH), approximately 15 per cent of hotels in the country may have to shut down their operations.

Data from NAPIC showed that as of 2019, Malaysia has an existing stock of 3,404 hotels with 266, 972 rooms.

Several of these hotels, located in tourism hot spots such as Kuala Lumpur, Ipoh and Melaka, have now ceased operations or are in the process of being auctioned off.

With a planned and incoming supply of 114 hotels with 24,161 rooms and 74 hotels with 14,810 rooms respectively, we can expect demand for the hotel sector to remain muted.

As it is, hotel operators are already facing stiff competition face from owners of Airbnb units.

So, until a vaccine is found, the hotel and Airbnb sectors will continue to bleed.

For hotels that are in the planned and incoming supply, they are faced with a dire situation to continue operations but where demand from tourists are far and few between.

It remains to be seen whether the construction of such hotels will continue or if they will be cancelled altogether.

Either way, they will be likely operating in the red.

The only exception is hotels which have been gazetted as quarantine areas.

For Airbnb owners, you might want to convert your units to long-term leases or student accommodations in the time being.

#5: Retail sector will see many businesses cease operations

While shopping centres can now operate, the damage is already done.

The MCO that kicked in on  March 18 means that businesses are greatly impacted as malls are forced to closed.

Combined with running overheads such as cleaning costs, rent, wages, refurbishing damaged goods and other operating costs, shop owners are under great financial stress to either continue operation or wind down their business for good.

Either way, human traffic will not return to normal due to social distancing requirements.

As such, we can expect small to medium retail outlets and F&B outlets, particularly those leasing spaces at high-end malls to shutter.

Instead, they will switch to online shopping.

#6: Digital-related, food, healthcare, pharmaceutical and wellness sectors will thrive

Digital-related sectors such as online shopping, delivery, technology and website hosting will thrive amid the pandemic as working from home now becomes the new norm.

Developers and agents will need to adapt to changing market situation via contactless procedures such as conducting online viewings and meetings to close sales.

For instance, online property portals such as iProperty.com are coming up with innovative ways to help their clients sell property online.

In a post-pandemic world, Zoom meetings have now become ubiquitous.

This is also an ideal time for individuals to start a side hustle such as small home-based business selling cookies online to supplement their income

COVID-19 also means increased demand for food, healthcare, pharmaceutical and wellness industries.

On March 27 2020, the Malaysian government announced a second stimulus package to combat COVID-19.

For instance, an extra RM500 million has been allocated to purchase medical equipments, such as ventilators, personal protective, lab and ICU equipments.

Meanwhile, another RM1 billion is allocated for the purchase of medical equipment and expertise from private healthcare services.

#7: Tenants from healthcare industry will drive the rental market

With RM1.5 billion in total allocated to support the healthcare sector, this presents good news for investors who are holding on to vacant Airbnb units or landlords who are located close to such industries to seek out such tenants.

Having said that, the rental market in Malaysia is very soft at the moment so the rental income may or may not cover your mortgage. 

As data from NAPIC showed earlier, Malaysia has an existing stock of 5,727,814 residential units as of 2019.

This will increase in 2020 arising from the supply from incoming and planned units.

While some investors may have to top up cash,  having a negative cash flow is better than leaving your units untenanted.

Investors should seize this opportunity. 

#8: 2020 is about business consolidation

​As long as there is no vaccine found, business activities will never return to normal.

Forget about whatever business plans that you have planned in 2019.

Instead, brace yourself for a long, cold, winter ahead.

Consolidation will be the new normal for this year as many developers and industry players will focus on conserving cash.

Leveraging on digital technology will be the new norm.

We can expect pay cuts, hiring freezes and retrenchments as businesses cut losses on non-revenue generating departments.

We have already seen certain developers doing this and establishing working from home permanently.

This is the time to learn a new skill, read books and focus on self-development to continue staying relevant in your respective fields.

As morbid as it may seem, estate planning is crucial and timely especially since we are in the middle of a pandemic.

By Khalil Adis

D​eath is a taboo topic that no one likes to talk about.
​
However, it is important to discuss it with our family members as we never know what might happen to us, especially since we are faced with rising COVID-19 cases worldwide.

Even if we eventually emerge victorious against this disease, at least we have made the necessary preparations should something untoward happen to us.

Also, it prevents any family disputes on how your assets will be given away upon your death.

Before going in-depth with this article, I wish to state that different laws apply to Muslims and non-Muslims.

For today’s article, I will concentrate solely on Muslims.

I recently spoke to a lawyer and an HDB officer.

These are my findings that I would like to share with readers.

Muslims

​For Muslims in Singapore, you are permitted to make a will under Section 111 of the Administration of Muslim Law Act (AMLA) to dispose of your assets upon death.

However, your will (or wasiat) must comply with the conditions of, and is subject to the restrictions imposed by the school of Muslim law professed by you.

Section 112 of the AMLA states that the distribution of a Muslim’s estate must be according to the Muslim law.

Under this section, the assets of a deceased Muslim who was domiciled in Singapore at the time of their death shall be distributed in accordance with the principles of Muslim law and Malay custom (where applicable).

In this case, the distribution of assets will be distributed through the principles of Faraid.

Faraid generally applies to your assets which have not been given away under your will to your heirs or beneficiaries.

However, Faraid does not apply to the following excluded assets:

Property held under a joint tenancy

Under a joint tenancy, the right of survivorship means the surviving joint-owner gets 100 per cent ownership of the property.

For instance, if you own the property with your husband or wife, your husband or wife gets 100 per cent of the property depending on who is the surviving party.

Let’s say, you pass on, then your share cannot be distributed to your heirs or beneficiaries under Faraid. 

This is the position that is taken by the Majlis Ugama Islam Singapura (MUIS) and by the civil law courts in Singapore under the 2019 ruling.

You can read more about it here

Nominated Central Provident Fund (CPF) monies

If you have made a nomination for your CPF monies to your wife, then the monies must be distributed to her only.

​Nominated life insurance policy benefits/payouts

Likewise, if you have nominated your wife to receive your insurance policy benefits/payouts upon your death, then only she is entitled to receive the policy benefits/payouts.

You heirs or beneficiaries do not get anything.

Harta sepencarian or assets jointly acquired by a deceased Muslim 

Harta sepencarian has its origins in Malay customs.

Section 112 (3) states that a Muslim who dies intestate (without a will), the court may make an order for the division of the harta sepencarian or jointly acquired property in such proportions as to how the court may  deem fit.

Again, your heirs or beneficiaries are not eligible for this.
​
Assets given away under a will

Assets that are given away under your will must be given away to the beneficiary or beneficiaries.

Your heirs and other beneficiaries are not eligible if they are not named in the will.

What if I am a Muslim and I die without a will?

​In this scenario, Section 112 (1) states that your estate and effects shall be distributed according to the Muslim law as modified, where applicable, by Malay custom.

Also section Section 112 (2) states that this section shall apply in cases where a person dies partly intestate (partly without a will) as well as in cases where he dies wholly intestate (without any will).

This means the principles of Faraid will apply to all your assets except for a property that is held under joint tenancy.

For example, your CPF monies and life insurance policy benefits/payouts will be distributed under the principles of Faraid to your heirs and beneficiaries. 

What if am a Muslim and my property is held under tenancy-in-common?

Under tenancy-in-common, both parties hold a percentage of shares in the property (for example, 50 per cent - 50 per cent).

Upon your death, your share will be distributed according to your will.

If you do not have a will, then the principles of Faraid apply.

This means your share will be distributed according to Islamic laws to your heirs or beneficiaries.

What if I am a single Muslim and I am the sole owner of my property?

​This will apply for those of you who had bought a flat under the Singles Scheme.

​If you did not make a will, then Section 112 of the AMLA applies.

This means that the distribution of your estate must be made according to Muslim law through the principles of Faraid.

If you had made a will, then there will be an executor of your estate and your property may be inherited by your beneficiary.

For the avoidance of doubts, you should speak with a private solicitor.

What if I have an outstanding loan?

HDB flat owners are protected under the Home Protection Scheme (HPS) which is administered by the CPF Board.

Under this scheme, you and your family are protected from losing your HDB flat in the event of death, terminal illness or total permanent disability before your mortgage is paid up.

You can read more about it here.

However, this only applies if you are paying your mortgage via your CPF savings.

If you are paying cash to service your mortgage, the HPS is optional.

According to the CPF Board, in this scenario, you are "strongly encouraged to apply for an HPS cover if you are an owner of the flat and if you do not have adequate financial protection for your share of outstanding housing loan".

Your eligibility for HPS coverage is subject to approval and you being in good health.

If you are the sole owner or if you did not make a will and if your property is to be sold on the market, the proceeds will be used to clear the remaining loan balance before your beneficiary receives the cash proceeds from the sales.

If you are the sole owner, paying by cash and if you had made a will, then your beneficiary or beneficiaries will then need to service your remaining loan.

Again, please speak to a private solicitor for the execution of your estate.

With the virus now declared a global pandemic, it is as though we are forced us to slow down and reflect on what really matters.

By Khalil Adis

I woke up today feeling like the universe had pressed a reset button forcing the entire world to slow down.

This came amid the rising number of COVID-19 infections outside Singapore.

It all started from a nightmare I had over the weekend where I had dodged several black coloured snakes.

I think they were meant to symbolise the coronavirus.

Meanwhile, next door, I could hear my mother coughing loudly the entire night.

I wondered if she had caught the virus and if so, will she survive? 

I had read that the elderly are particularly susceptible to the virus and the fatality rate is high.

I also wondered if I had enough resources as a caregiver should she fall ill.

It’s funny how it is usually the unmarried child who ends up taking care of their parents while their married siblings are noticeably absent.

Then, it got me thinking if I had saved enough for my retirement and what will happen to me upon death. 

In introspective mode

As morbid as it may seem, COVID-19 had forced me into a period of introspection.

I found myself asking questions I never did.

For a while, I was going through life on an autopilot mode, especially in this age of social media where everything seemed so fast-paced.

As a result, I would often write articles in listicle format as readers nowadays want bite-sized news as opposed to analytical pieces.

It’s a recurring problem fellow journalists had also complained about as they are increasingly being replaced by content marketers for ‘click-bait contents’. 

It felt as though we were not making an emotional connection with our readers.

Yet, amid COVID-19, here I am writing on my blog as to how I would usually write in my journal entries.

A global pandemic

Last week, the World Health Organization (WHO) officially declared COVID-19 as a pandemic.

Everything now appears to have ground to a screeching halt with the restricted movement order that kicked in on Wednesday in Malaysia and containment efforts within Singapore.

The Singapore government on Sunday announced a new 14-day stay-home notice that will take effect from 11.59 pm on March 16 for all travellers with a recent travel history to ASEAN countries, Japan, Switzerland or the United Kingdom.

This comes as Singapore and Malaysia are reporting a daily spike in new infections.

Meanwhile, for the first time in Singapore’s history, Friday’s prayers were cancelled islandwide amid new clusters of infections that were linked to the Sri Petaling mosque outbreak last week.

It will continue to be closed till March 26.

It’s a strange feeling passing by mosques that remained closed.

All these new measures will definitely have an impact on the economy and especially for small businesses.

In the property market, events are now either being postponed or cancelled.

My developer clients are now working from home.

This will not bode well for Singapore and Malaysia as both countries are facing a supply glut in residential properties.

It is as though the entire world is forced to slow down and connect with each other on a humane level.

Moving forward

My friends and relatives had previously admonished me for writing about what I go through saying it may not be good for business.

Somehow, during a time of crisis, sharing about our personal struggles seemed relevant as they make us more relatable as a human being.

Do I worry about business amid COVID-19? Yes, of course.

On a side note, as much as I would like to launch my book, this is very much dependent on getting sponsors on board.

With the lull property market and developers cutting back on their marketing budget, it does appear challenging.

It also does not help that Malaysian developers generally prefer to meet in person and do not respond well over e-mail.

However, I now see it as a blessing amid what the world is going through at the moment - it is not a good time.

Nevertheless, I do hope the book will see the light of day as it contains nuggets of useful information on the various train lines in Malaysia since I started researching about them in 2008.

I wished a similar property guide book was written in Singapore when the city-state started building its MRT system in the 1980s.

In the meantime, let us stay healthy, remain calm and vigilant during this difficult period.

Retailers in the hip Jalan Dhoby enclave in Johor Bahru say a sense of normalcy is slowly returning as locals are getting used to COVID-19.

By Khalil Adis

​It used to take me almost an hour plus to take bus 160 from Jurong East to Johor Bahru.

However, since the COVID-19 outbreak, crossing the causeway is now a breeze due to the lull traffic.

One destination of choice that is incredibly popular among Singaporeans is at the hip Jalan Dhoby enclave.

Reminiscent of Georgetown in Penang, Jalan Dhoby is home to famous eateries making it a favourite haunt among tourists and photographers.

“Come, come! Feel free to take photos. You can even take photos inside,” said the friendly auntie at Hiap Joo Bakery while taking my orders.

Known for their flavourful banana cake and buns that are slow-cooked over wood in a traditional kiln, she admits that business has been gravely affected since the first coronavirus case was reported in Johor Bahru in January.

“Yes, of course. We used to have a lot of Singaporean customers but they are all scared to come to JB now,” she said matter-of-factly while wrapping up two packets of freshly baked banana cakes.

Despite the absence of Singaporeans, the bakery still remains popular among Johoreans as all their buns were already sold out by 2 pm.

Over at Siva Hairdressing Salon, located nearby at Jalan Pahang, its owner shared a slightly different take.

“Last two weeks was dead. Now, we are slowly seeing Singaporeans and tourists returning here,” said Mr Siva. 

A glance outside his shop confirmed this, although their numbers are still significantly lower than before.

Meanwhile, next door, his daughter, who has just opened a chocolate shop called Act Spot, remained optimistic.

“We have many chocolates to choose from which are produced and sourced locally. Hopefully, more Singaporeans will come here once the situation has improved,” said Ms Jaya.

The lunchtime crowd at IT Roo Cafe located just opposite her shop is also slowly returning to normal albeit comprising mostly of regular local customers.

The good news is getting a seat here is no longer a problem. 

In the past, you will have to wait till after 2 pm or sit alfresco style under the hot sun. 

Just opposite IT Roo Cafe is Salahuddin Bakery which sells buns, curry puffs and other confectionaries which are cooked in a kiln, just like at Hiap Joo Bakery.

When asked if business has improved, the owner, who wishes to remain anonymous said that while it is not as good as before, customers are slowly returning.

“People are slowly coming back. Like it, or not, life will have to go on,” he said.

Over at Santai2, a massage parlour that specialises in traditional Malay massage, the shopkeeper said business is not as robust as before.

“At first, human traffic was greatly affected by the road works which has now completed. After that, we were affected by the coronavirus outbreak. We used to see a lot of Singaporean customers,” she said. 

As I made my way to Al-Fayeed Cafe for dinner, business appeared busy as usual.

Known for its mix of Western and local dishes as well as delectable shisha offerings, Al-Fayeed Cafe continues to attract a strong Johorean crowd, albeit slightly younger.

“People here are a bit more laid back although they are aware of the coronavirus outbreak,” said a server.

Judging from my recent day trip to Johor Bahru, it is clear that the unwavering spirit among Johoreans is alive and well as they remain steadfast in the face of COVID-19.

If you want to avoid the crowd, this is now the best time to explore Johor Bahru.

Just make sure you take the necessary precautions such as washing your hands frequently and wearing a face mask if you are unwell. 

Here are some of the places to explore:

#1: Hiap Joo Bakery
​13, Jalan Tan Hiok Nee, 80000 Johor Bahru, Johor, Malaysia

Hiap Joo Bakery is one of JB's best-kept secrets that it reportedly counts the Sultan of Johor as one of its fans.

Renowned for their coconut buns and freshly made banana cakes, many locals make a beeline for them.

In fact, their coconut and kaya buns are so popular that they usually run out by noon.

What makes Hiap Joo Bakery authentic is its old-school method of cake-baking which it inherited from its former British owner.

All the cakes and buns are baked in a classic wooden kiln which leaves them with a unique charcoal aftertaste.

If you still can't get enough of its freshly made cakes and buns, fret not!

You can buy its very own kaya spread to savour it from the comfort of your home.

#2: IT Roo Cafe
17, Jalan Dhoby, 80000 Johor Bahru, Johor, Malaysia

For lunch, head to IT Roo Cafe located just around the corner.

Touting itself as having "the best chicken chop in town", you can choose to have it either grilled or fried with a choice of mushroom or black pepper sauce.

The dish comes complete with a serving of coleslaw and fries.

Aside from its signature dish, IT Roo Cafe also serves up popular local dishes like fried rice and noodles.

#3: Act Spot
6A Jalan Pahang, 80000, Johor Bahru, Johor, Malaysia

Act Spot is a local chocolatier that sells an assortment of flavoured chocolates such as hazelnut, cappuccino and tiramisu.

Produced and sourced locally, the chocolates are touted as a healthy alternative as they are less sweet, non oily and with zero trans fat.

The chocolates come in an attractive packaging and are priced from RM10 onwards. 

#4: Salahuddin Bakery
26, Jalan Dhoby,  80000, Johor Bahru, Johor, Malaysia

Salahuddin Bakery is one of the oldest bakeries in Johor Bahru that has been around since 1937.

They specialise in triangular-shaped curry puffs that are filled generously with beef and potato fillings as well as coconut and red bean buns.

Aside from its signature curry puffs, the bakery also sells an assortment of confectionaries.

What makes Salahudin Bakery a draw is its old school method of baking inside a kiln which you cannot find elsewhere (except at Hiap Joo Bakery).

Prices start from RM1.70.

#5: Al-Fayeed Cafe
Off Jalan Pahang, 80000, Johor Bahru, Johor, Malaysia

Fancy a serving of shisha?

Well, look no further than Al-Fayeed Cafe which is also located within walking distance.

Prepared by tattoed servers with technicoloured dyed hair, there are many flavours to choose from with an option to have it served with ice.

Al-Fayeed Cafe also serves up popular side dishes such as fries to go along with your shisha.

For those who prefer a heartier portion, the cafe also offers a wide selection of Western and local dishes at very reasonable prices. 

Music can get a tad bit loud with popular hip-hop tunes and EDM club bangers blaring from the speakers.

#6: Pasar Karat
Jalan Segget, Bandar Johor Bahru, 80000, Johor Bahru, Johor, Malaysia

​Stock up on those pomades in various fragrances or shop for handphone covers at this night market located just a stone throw's away from the heritage area.

Pasar Karat which means rusty market comes alive from 7 pm onwards and attracts a strong Johorean crowd.

Selling just about anything from exotic pets to Malay kuehs, the night market gets especially busy during Ramadan as many would throng the market as they gear up for Hari Raya Aidilfitri.

#7: Santai2

​Offering foot massage and traditional Malay urut, Santai2 is a welcome respite after all those walking.

Foot massage starts from around RM45 while a full body traditional Malay urut is priced from RM65.

Both male and female therapists are available.

Singapore's retail and tourism industries appear to be reeling from the impact of COVID-19. Taken between 12 noon to 3 pm on 26 February 2020, human traffic at Orchard Road, Chinatown, Waterway Point, Tanjong Pagar, Raffles Place and Dhoby Ghaut has decreased significantly.

By Khalil Adis

When China sneezes, the entire world catches the flu.

In this case, COVID-19 is already affecting the global economy resulting in supply crunch, travel bans, pay freeze and global retrenchments.

Just recently, HSBC axed 35,000 staff as part of its global restructuring exercise on 18 February.

Singapore, in particular, is vulnerable due to its open economy and small domestic market.

Already reeling from the impact of the ongoing US-China trade war, the government has announced several measures under Budget 2020 to save jobs and to pass on rental rebates and waivers to affected tenants.

Meanwhile, Temasek Holdings, CapitaLand and SMRT announced pay freeze and wage cuts while Singapore Airlines is freezing hiring.

While the Singapore government has done a good job in containing the outbreak (62 recovered cases, 31 still in hospital), we are possibly faced with a global pandemic.

According to the World Health Organization (WHO), as of 26 February, the number of new cases reported outside of China exceeded the number of new cases in China for the first time.

For example, new cases are now emerging in Brazil, Iran, Pakistan, Greece, Georgia and Norway while South Korea and Italy are scrambling to contain the spread.

In South Korea alone, the Korea Centers for Disease Control & Prevention (KCDC) said it reported an additional 334 new cases as of 27 February, bringing the total tally to 1,595.

WHO added that COVID-19 has killed more than 2,700 people and infected at least 80,000 in 34 countries with the vast majority of cases in China.

Should the situation gets even worse, there is a possibility of a deep and long recession ahead.

Here are photos that were taken yesterday across Singapore amid the outbreak.

​Totalling S$106 billion, this year’s budget is aimed at helping businesses, Singaporeans and workers stay afloat in the face of an outbreak while navigating a weakening economy, technological disruptions and an ageing population.

By Khalil Adis

​Walk around Singapore and you will notice that malls have now become eerily quiet while coughs and sneezing in public have become socially taboo.

Just take a ride on the MRT and observe the look of disdain whenever someone were to accidentally do so. 

Welcome to the Lion City in 2020 where face masks and sanitisers have become the latest fashion accessories.

Already impacted by the ongoing trade war, Singapore is now faced with another invisible threat in the form of a coronavirus which now has a name - COVID-19.

Fresh from the Lunar New Year celebrations, businesses will usually see an increase in consumer spendings during this period.

However, this year is different with a notable dour mood.

Everyone is wary and jobs are now uncertain as the tourism, aviation, hotel, F&B and MICE industries take a hit. 

Thus, it is no surprise that this year’s budget was a marked increase from Budget 2019’s S$78.2 billion to cope with the extraordinary circumstances.

Against a backdrop of a possible election this year, Budget 2020 tackles bread and butter issues head-on.

Here are some of the key takeaways from Budget 2020 and its impact on the property market.

#1: S$800 million budget to fight the virus

Singapore is a global city and an important trading and aviation hub. 

Home to Changi Airport, it is, therefore, susceptible to any major shocks in the region and COVID-19 is no exception.

As such, the entire world is watching closely how Singapore is handling the outbreak and this will have an impact on investors’ confidence.

The World Health Organization (WHO) has so far praised Singapore’s response in containing the coronavirus situation.

With 81 confirmed cases so far, the government has set aside S$800 million for the Ministry of Health and other ministries to protect Singaporeans from the risk of a further spread of the COVID-19 virus.

This budget will have far-reaching implications as it will help to bolster business confidence, protect jobs, minimise economic disruptions while keeping Singaporeans healthy.

#2: Support for hotel, retail, food services, tourism and air transport sectors to minimise business disruptions

These industries will receive help in the form of the enhancement to Adapt and Grow Initiative to help in job redeployments, property tax rebate for qualifying commercial properties, a new Temporary Bridging Loan Programme (TBLP) for tourism sector enterprises, aviation sector measures, 50 per cent port dues concession and rental waivers for commercial tenants in government-owned / managed facilities.

More details can be found here.

Collectively, these measures will minimise business disruptions while mitigating retrenchments.

#3:  S$4 billion Stabilisation and Support Package will help keep businesses afloat

Aimed at helping workers and enterprises weather near-term economic uncertainties, the Stabilisation and Support Package will cushion the impact of COVID-19 and the global headwinds.

For this, the government will introduce a Jobs Support Scheme (JSS) to provide wage support to enterprises that retain local workers.

Employers will receive an 8 per cent cash grant on the gross monthly wages of each local employee for the months of October 2019 to December 2019, subject to a monthly wage cap of S$3,600 per employee.

This applies to Singapore Citizens and Permanent Residents only.

The government will also enhance the Wage Credit Scheme (WCS) to help enterprises with the cost of wage increases.

The monthly wage ceiling for the WCS will be raised from S$4,000 to S$5,000.

These measures are especially beneficial for small to medium enterprises (SMEs) who are facing cash flow problems.

#4: Stabilisation and Support Package and Care and Support Package will help local workers stay employed while defraying living costs

For the average person on the street, the Stabilisation and Support Package means that local workers will remain gainfully employed.

This means their life will go on as usual such as having the ability to continue paying for their HDB or private property mortgages with minimal disruption.

In addition, the Care and Support Package will help to offset their day-to-day living expenses via cash payout of S$300, S$200 or S$100 (depending on their income), Workfare Special Payment with a minimum payment of S$100 for the work year of 2019, a S$100 grocery vouchers for each year, in 2020 and 2021 (subject to eligibility conditions), Additional GST Voucher – U-Save and Service and Conservancy Charges Rebate.

To be eligible for the grocery vouchers, only Singaporeans aged 21 years and above, who live in 1-room and 2-room HDB flats and do not own more than one property, are eligible.

More details can be found here

#5: Budget could mitigate rising home defaults 

Homeowners defaulting on their mortgages have been on the rise since 2015 amid rising interest rates and job uncertainty.

According to data from the Credit Bureau Singapore, there were 65 such cases in 2015 which have since increased steadily to 105, 112 and 156 in 2016, 2017 and 2018 respectively.

Meanwhile, from January to July 2019, the number stands at 79.

Against the backdrop of the COVID-19 outbreak, the number of cases for 2020 could be further mitigated with this budget.

In closing, Budget 2020 is generous and extraordinary to help Singaporeans, businesses and local workers during these extraordinary circumstances.