Property expert Dato Sri Gavin Tee predicts that megaprojects will thrive again following an adjustment period where the old inefficiencies are gotten rid of.
Following the cancellation of the KL- Singapore High Speed Rail (HSR) and the announcement to review some megaprojects contracted with Chinese entities, there is a general misperception that the new Mahathir administration is anti-China. “But nothing is further from the truth,” stresses property expert Dato Sri Gavin Tee.
“In fact, I believe Malaysia is the best ASEAN friend to China. There is no doubt Malaysia still supports the Belt and Road Initiative (BRI).
“I believe what the new government wants to do is to restructure the lopsided contracts as well as other unfavourable practices from the former government,” he told a press conference held at the 2018 Swhengtee Property Expo recently.
HSR – GOODBYE FOREVER?
“To me, the HSR is not just about a high speed rail network from Singapore to Malaysia. It is part of the BRI and is envisaged to run from Singapore to Bangkok via Kuala Lumpur and Penang, and then all the way to Kunming via Laos, and then connect via the extensive high speed rail network in China all the way to Europe,”Tee continues.
“What I suggest is that the HSR be reviewed especially the costing aspect, station location and perhaps fresh contracts be awarded.”
Tee adds: ” On a similar note, I feel that the decision to scrap MRT3 should be reviewed because being the circle line, it is essential to connect MRT1 and MRT2 to make the entire MRT line seamless. Without it, the MRT1 and MRT2 will be less efficient and less profitable due to fewer passengers as a result of its lack of seamless connectivity. Again, the timing to build it is right and I believe the government will revive the MRT3 in the near future particularly with a view to reducing its cost. And I believe the new government is more efficient, thus the costing will also be more ‘efficient’.
‘4 NEW PROPOSED MEGAPROJECTS’
“Tourism is key to Malaysia’s prosperity. As such, I propose 4 new megaprojects involving tourism – all of which should be designated free ports or special economic zones where foreigners have special privileges such as easy visas, duty free status, tax breaks, et cetera. This is to attract more foreign direct investment as well as create employment in these world class destinations which will encompass world class entertainment and world class medical facilities:
- An island or zone outside of Kuala Lumpur;
- An island or zone (mixed development) outside of Kota Kinabalu, Sabah (direct flights to Hong Kong, Taiwan and South Korea);
- North of Penang Island/Langkawi linking with Thailand and Indonesia (triangular tourism hotspot); and
- East of Johor linking with Singapore and Bintan island of Indonesia (triangular tourism hotspot).
TO BUY OR NOT
Tee advises that it is still a good time to get into the property market during this adjustment period.
“We expect good news from the new government where property is concerned but we need to study carefully the opportunities thrown up. The government may adjust property-related taxes, loosen up financing for properties and a slew of other changes with a view to long-term stability. This is the time to jump in or it will be too late.”