Credit-tightening cooling down property market

 Loan approvals for home purchase decline

The banks' tighter lending rules have slightly diminished the actual sales in the residential property market, according to real estate consultants as well as Bank Negara Malaysia data.

Bank Negara's website revealed that the percentage of loan approvals for houses have declined to 46.8 percent in 1H2012 from 50.1 percent over the same period last year.

The amount of mortgage applications for home purchases rose by 2.9 percent year-on-year to RM96.7 billion in 1H2012. However, the value of loans that were approved fell from RM47 billion to RM45.26 billion.

Paul Khong, Executive Director of CB Richard Ellis Malaysia (CBRE), noted that residential property prices could be affected if the mortgage approval rate continues to decline.

"In order to conclude transactions, residential property sellers may now need to realistically adjust their selling prices as many of the buyers cannot get their loan applications approved," added Khong.

CBRE's recent report on Kuala Lumpur's housing market also noted a decline in the percentage of loan approvals in Q2 2012. The report revealed that the rate "was as high as 60.5 percent during the first five months of 2008, and has declined steadily since."

The report also highlighted that the lower rate could be due to the central bank's new lending guidelines.

Anthony Chua, Director of KGV International Property Consultants, commented that although the demand for homes continues to be high, the tougher lending measures have somehow cooled the market.

"We are still monitoring the situation. There is less transactional activity in the market this year for both new property launches and the secondary market compared with last year," said Chua.

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Loan demand remains stable

 Actual sale of residential properties declining

PETALING JAYA: The residential property market may be cooling down in terms of actual sales due to credit-tightening measures by banks, according to real estate consultants and Bank Negara data.

Bank Negara's website showed loan approvals' percentage for residential properties in the country declined to 46.8% in the first half of this year from 50.1% during the same period in 2011.

The number of loans applied for purchases of residential properties increased by 2.9% year-on-year in the first half of this year to RM96.7bil.

However, the number of residential property loans approved during the six-month period declined to RM45.26bil from RM47bil in the same period in 2011.

It is also worth noting that the loan approval percentage for non-residential properties was stable at 52.3% in the first half of this year, compared with 52.4% during the same period in 2011.

The number of loans applied (RM50.35bil) and approved (RM26.35bil) for purchases of non-residential properties was also stable in the first half of this year.

CB Richard Ellis (Malaysia) Sdn Bhd executive director Paul Khong said if the housing loan approval rate continued to decline, it will affect residential property prices.

“In order to conclude transactions, residential property sellers may now need to realistically adjust their selling prices as many of the buyers cannot get their loan applications approved,” he said.

KGV International Property Consultants director Anthony Chua said although the demand for residential properties continued to be high, the credit-tightening measures by banks had resulted in the market “cooling somewhat”.

“We are still monitoring the situation. There is less transactional activity in the market this year for both new property launches and the secondary market compared with last year,” said Chua.

Property consultancy CB Richard Ellis (M) Sdn Bhd had, in its recent report on the Kuala Lumpur residential market for the second quarter of 2012, also noted that there was a significant decline in the loan approval percentage this year.

“The loan approval rate was as high as 60.5% during the first five months of 2008, and has declined steadily since,” said the report.

The CBRE report said that the lower rate of loan approvals this year could be attributed to the implementation of new lending guidelines by Bank Negara.

Effective this year, banks have started using net income instead of gross income to calculate the debt service ratio for loans.

“Anecdotal evidence from real estate agents suggests that transactional activity has also declined as a result.”

The property consultancy also pointed out that despite the lower loan approval rates, buyer interest in new property launches, typically of smaller housing units in secondary locations, during the second quarter remained strong with developers continuing to offer attractive incentives to the purchasers such as the developer interest bearing scheme (DIBS), early bird discounts, free built-in cabinets and free legal fees.

“We expect 2012 to be a period of stabilisation especially within the luxury residential market, with transactional activity depressed by uncertain economic conditions and the reduction in loan approval percentage, which remains well below 50%.”

The CBRE report also said speculative property purchases were expected to be reduced for the rest of this year, as a result of tighter lending conditions, uncertain economic outlook, and concerns about the outcome of the upcoming general election.

Meanwhile, another property consultant said the tighter lending conditions had taken a visible toll on the secondary residential property market.

“Newly-launched properties are selling well thanks to better financing access, especially with the DIBS offered by many property developers.”

The consultant said slower sales activities in the secondary residential property market had resulted in innovative offers from marketing agents.

“This includes transactions where buyers sign the sales and purchase agreement but take the bank loans only a year or twolater. In effect, the buyers lock in the unit price now (perhaps in anticipation of further increases in market prices) and defer payment until much later. This works just like an informal DIBS,” he said.

In a recent report, Kenanga Research also said based on its channel checks, the secondary market appeared to be very weak and prices of secondary and primary products have diverged further.

The research unit opined that buyers were more focussed on new launches due to financing and promotional schemes.

“From a bank's perspective, we think there is a preference to lend to the primary market as it means better asset quality whilst banks can get all-in' deals with developers (for example, end-financing to bridging to land financing) to ensure a more balanced systems loans growth.”

Kenanga Research also opined that as a result, property developers can continue to grab greater market share and chalk-up high sales, although it expected Malaysia's overall residential transaction value growth to be relatively unexciting at 5% year-on-year.

It was noted that despite the tighter lending criteria, Malaysia's total residential transaction values have remained stable in the first quarter of this year.

It said buying interest remained strong, due to residential property buyers hedging against inflation and the lack of alternative investments, but this will be reigned in by more prudent lending criteria and the banking system's fear of real-estate tightening measures such as higher real property gains tax.

By THOMAS HUONG huong@thestar.com.my/Asia News Network

60% of Malaysian accountants from Ktar?

KUALA LUMPUR: Kolej Tunku Abdul Rahman (Ktar) has produced 60% of accountants from Malaysia, said MCA president Datuk Seri Dr Chua Soi Lek.

The college, he added, was also a recipient of the Platinum Status Award by the ACCA (Association of Chartered Certified Accountants).

One of the criteria to qualify for the prestigious award is that students must consistently achieve pass rates that exceed the rest of the world in the ACCA examination.

While Ktar would be elevated to a unversity college next year, Dr Chua gave his assurance that its School of Business Studies would continue to flourish.

Nevertheless, he said there would be some changes like consolidating its 130 programmes, continuing only selected diploma programmes and introducing university programmes.

Dr Chua said deputy president Datuk Seri Liow Tiong Lai has been given a month to come up with recommendations on the changes.

The changes would also make sure that Ktar and Universiti Tunku Abdul Rahman (Utar) would complement each other and develop together, instead of competing against each other, he said in an interview at his office here.

Dr Chua noted that the two institutions were set up and run by MCA to provide quality and affordable education to Malaysians and contribute to the country's development.

Both had produced some 200,000 graduates who found jobs within six months upon graduation, he added.

Dr Chua said the college was proposed by then MCA president Tun Tan Siew Sin at the party's annual general assembly in July 1968.

Ktar, which took in its first batch of 320 students in February 1969, now has a total enrolment of 25,000 at its main campus here and branch campuses in Penang, Perak, Johor, Pahang and Sabah.

It had undergone rapid expansion at its main campus and set up branch campuses under then MCA president Tun Dr Ling Liong Sik in the 1990s, he added.

Dr Chua said the Government's ringgit-to-ringgit annual allocation for Ktar's development and administration costs since 1972 would continue, adding that RM56mil had been allocated for the purpose next year.

The allocation was needed to keep its fees affordable, he said, adding that the fees were between RM9,000 and RM10,000.

Fees at other established private colleges ranged from RM20,000 to RM40,000.

Plans were afoot to expand the main campus here to include a faculty building, students' centre and hall and vocational training building.

He said the development on Ktar's 21ha plot could proceed after the relocation of about 500 squatter families.

Dr Chua said Ktar principal Dr Tan Chik Heok has been given six months, beginning last month, to resolve the squatter issue.

Dr Tan heads a committee of academic staff which is working with Kuala Lumpur City Hall on the relocation, he added.

By FOONG PEK YEE pekyee@thestar.com.my

Learn anything new from MCA Chua Vs DAP Lim Debate?

It’s debatable who triumphed

The second debate between MCA and DAP leadership was less about convincing the audience about whose policies had better served the people than two fierce Chinese leaders slugging it out for the Chinese vote.





THERE was much less hype in the run-up to the second debate between the two leading figures in Chinese politics.

The novelty of the DAP and MCA leadership going head-to-head in a public debate had passed.



Both MCA president Datuk Seri Dr Chua Soi Lek and DAP secretary-general Lim Guan Eng had proven after the first debate that they are more than capable of taking on each other before a live audience.

As in the first debate, Lim had the advantage of being the top dog because he is the Chief Minister of Penang, an MP and an assemblyman.

Dr Chua, on the other hand, has only his party post to ride on and his party is struggling to regain the confidence of Chinese Malaysians.

Given that Lim is in charge of one of the most developed states in the country, he would have more bragging rights as regards the topic of the debate – “Whose policies benefit the country most?”

But not long after the opening remarks by both speakers, Lim went off the debate path and ventured into ceramah mode and after a while, Dr Chua felt compelled to address him on at that level.

Both launched into attack mode, with neither really answering the questions raised.

They were both more interested in scoring points with accusations rather than giving good, convincing answers on issues.

As Fui Soong, the CEO of the CENSE think-tank, said in her forthright way: “It was like cock-fighting. Lots of posturing and both men going at each other, back and forth. There was not enough intellectual content.”

In fact, the whole thing became rather childish at times, an example being when Dr Chua poked holes at Pakatan Rakyat’s Buku Jingga.

Lim, instead of defending the allegations, said that Dr Chua must have read the wrong Buku Jingga.

That is the sort of answer one would give at a ceramah and not at a national debate.

And no one could quite figure out why Lim was pushing for a debate between Prime Minister Datuk Seri Najib Tun Razak and Opposition Leader Datuk Seri Anwar Ibrahim.

He did that right at the start and again towards the end.

By the time the moderator called for a five-minute break, the two debaters had gone well off-topic and were instead taking well-aimed shots at each other.

Dr Chua had accused DAP of being a chauvinist party that is more interested in the “politics of hate and blame” rather than nation-building while Lim declared Barisan Nasional as corrupt and bashed Umno left, right and centre.

Lim is not exactly the best orator on the political ceramah circuit but he is a seasoned speaker and his ceramah style was in full display for much of the two hour-long session.

He had a lot of punchy and pithy lines.

But the thing about the ceramah mode of speaking is that it leans towards drama and exaggeration which is entertaining, but less suited for a debate audience.

Lim was in his street-fighter element when running down Barisan and mocking Umno.

This forum, which comes more than four years into his Penang tenure, would have been the ideal platform for Lim to showcase his achievements as the chief administrator.

But through much of the debate, he was far more successful in rubbishing Umno than convincing the audience that his government and his policies had benefited the people more than the policies of Barisan.

Dr Chua does not have the ceramah flamboyance of his rival.

But he has shown in both debates that his forte lies in being factual and analytical and he thinks quite well on his feet.

He is no drama king and he does not embellish the facts to entertain the people although he can be quite caustic in his rebuttals.

But as many who watched the debate would agree, it is evident that Dr Chua understands policies, is good at facts and figures and his experience in the Government comes across quite clearly.

For instance, when Lim tried to politicise the privatisation of the Penang port, Dr Chua argued the rationale of the move with statistics.

His other advantage was that he could sell the “Najib brand name” whereas Lim was rather reticent about the “Anwar brand” even while endorsing him as the prime minister candidate.

Dr Chua came across as rather staid and serious compared to Lim’s more showy style.

But Lim might want to moderate his ceramah style when speaking before a thinking audience.

He has what the Malays term a senyum kambing side about him when running down his opponents and while that goes down well with his supporters, those less acquainted with his style may find it sarcastic or even arrogant.

A little humility would have served him better.

He is the Chief Minister of a key state and he should try not to sound like an Opposition leader.

Both men started well but as the debate progressed, Lim’s ceramah style put him ahead.

However, Dr Chua made a much more sensible summing up while Lim went over the top with a rousing speech rather than a conclusion.

Said Fui: “I feel kind of cheated. I had expected more but I feel like I didn’t learn anything new.”

ANALYSIS By JOCELINE TAN



Chua vs Lim debate: DAP & MCA: Whose Policies Benefit the Country More?

Photo Gallery : Debate 2.0

KUALA LUMPUR: MCA's Datuk Seri Dr Chua Soi Lek and DAP's Lim Guan Eng took to the podium together for a second time in months on Sunday as both leaders took each other on over whose policies had better served the rakyat.

They engaged in a fiery two-hour debate themed DAP & MCA: Whose Policies Benefit The Country More at the Sunway Pyramid Convention Centre here yesterday, organised by the Asian Strategy and Leadership Institute (Asli).

In his opening remarks, the MCA president highlighted the policies and programmes put in place by Prime Minister Datuk Seri Najib Tun Razak after he took over the nation's helm.

Lim, who is Penang Chief Minister, spoke about the island state being the “most liveable city in the country” while attacking MCA ministers with a string of allegations.

At one point, Dr Chua, who spoke off the cuff, took a swipe at his debate adversary, chiding him for reading from a prepared text and turning the debate into a political ceramah.

Dr Chua noted that with the government's policies in place, Malaysia's share market continued to rise as proof of the local and foreign investors rejecting DAP's theory of gloom and doom of the Malaysia economy.

He hit out at Pakatan Rakyat, saying that its ultimate aim was to grab power in the coming general election “at all costs”.

Likening Pakatan's battle cry, Ubah (change) to “Power First, and Chaos thereafter”, Dr Chua said Pakatan was only good at instigating the people to hate the Government, demonising the country's institutions and causing friction among the various races in the country.

He also pointed out that the coalition was known to be good at making promises to the people when more than 95% of their promises had yet to be fulfilled.

Lim spoke about the various improvements in Penang including poverty reduction, adding it was the first state to provide free WiFi access in public places.

He attacked MCA ministers - Tourism Minister Datuk Seri Dr Ng Yen Yen over the ministry's alleged RM1.8mil to maintain a Facebook page, Transport Minister Datuk Seri Kong Cho Ha for paying more attention to the tender for car number plates, Housing and Local Government Minister Datuk Seri Chor Chee Heung for opposing local government elections and Datuk Seri Liow Tiong Lai for allowing middlemen to be involved in the purchase of drugs.

The debate started with Lim's opening remarks.

Guan Eng at the debate

Lim: "MCA is not qualified to talk about politics here, as it is not MCA who decides - it is Umno who decides.

"The MCA speaks only for the Chinese, and those from the Peninsula - not Sabah or Sarawak.

"It is different for DAP - we want to speak for all Malaysians. Malay, Chinese, Indians, Iban, Kadazan.
"We are all Malaysians. Look at the NFC scandal," he said.

"Who gains? The cronies. The losers are the citizens of Malaysia.

"For last 50 years, consumed by race and religion. For the next 50 years, let us be consumed with the tasks of economic wellbeing.

"BN has never spoken truthfully to the people. Let Pakatan Rakyat speak truthfully to you.

Dr Chua stressing a point during the debate with Lim listening intently

"DAP believes a clean government can always perform better than a corrupt government.

"If Penang dares to review the assets of the CM, why is the PM afraid of reviewing his assets and those of his ministers?" he said.

Dr Chua: "Just now YAB asked why the PM didn't want to debate with Anwar. I want to say here, it hasn't happened because he is the prime minister. He is busy with the transformation policies, to improve the country. "From 2008 to 2011, the ease of doing business improved compared from 2003 to 2008. Malaysia is the fifth most favoured FDI nation in Asia.

"They haven't been empty promises like those from Pakatan Rakyat. The promises were fulfilled. These three years, the rakyat has gotten what was promised under the leadership of Najib."

"Anwar is full of rhetoric, no specifics, short on delivery. He has to convince us to translate this rhetoric into what we call delivery.



"MCA has been involved in nation building from day one. We were the one involved in the fight against the communist insurgency, the resettlement of the Chinese in new villages, the fight for independence, the rights of citizenship after independence. That's why citizens like Guan Eng are citizens of the country.

"We laid down the foundations. We have progressed, advocated integration not assimilation. That's why Guan Eng is not called Sukarno Lim.

"This is all history. All part of nation building. DAP has no role to play."

"What has PR done for us? No clear direction.

"Look at the four PR states, 95% of the promises are janji janji kosong.

A section of the crowd enjoying the debate

"Everyday tell the whole world you give hundred dollars to the old people.

"Two hundred to the newborn and they must be voters. We give RM200 to our newborn babies.

"State government giving RM100, RM200 all populist policies. Does not address fundamental problem of country."

"DAP has only one thing to show. They collect a lot of money from the rakyat. Despite calls of accountability, transparency - nothing to show. Transparency, Accountability, where are they? Where has the money collected gone to?

Question: Mr President... Many urban voters perceive MCA has not done enough. The perception is that many urban voters are not supporting MCA. What would you do to try regain more support for MCA?

Dr Chua: We accept the fact this is a multiracial country and the policy of BN is the policy of balancing. DAP likes to tell the Chinese they are marginalised. The poverty rate of the Chinese is still lowest among three major races. Employment rates the highest. Property ownership largest. Cannot deny in the implementaion process there are people who benefit more than others, this is the bone of contention, causes a lot of Chinese to be angry with the government and MCA bears the burden of this.

"DAP tries to portray itself as a multiracial party, but only dares to contest in Chinese constituencies.
"Why don't you contest in multiracial constituencies? We are a mono-ethnic party, but our aims are clear.

"In this country we have to balance the needs and sensitivities of all countries. No particular race will feel happy.

The crowd at the Debate 2.0

"In the same way we sometimes feel government giving too much to bumiputra. But some bumiputras not happy with government."

Question: Many people still see DAP as Chinese-based party. Are you a Chinese party or multi-racial party, how would you try to win more support among other races if you are multiracial.

Lim: From the very start we are a multiracial party. Our chairman is Indian, we have Indian MPs, have Malay MPs and state assemblymen in the past. We are fair to all regardless of race and religion. Would like the MCA president know that not every Chinese rich as the MCA leaders.

Not every Chinese can apply for PR in Australia.

Don't forget that the Chinese community pays the most taxes in Malaysia.

At the same time we want to see justice and see our Malay brothers and sisters are assisted.

Why is it poor Chinese can't get scholarships but rich bumiputras can?

Don't go and talk about DAP forming a kindergarten. We are a political party to determine the future of Malaysia.

TAR College is clearest example of failure of MCA. Why was it established? Because of unfair quota policies where qualified students cannot enter public universities. so you formed TAR College. Shame on you MCA.

Don't say we haven't built low cost housing. We have built. Don't lie.

Question:Is MCA scared of Umno, that they don't dare to question corruption claims? Is there equal partnership in BN?

Dr Chua: I take objection to that question to say MCA is sacared of Umno. Not a fair question. If I say - and I've always said - if the state Cabinet, state exco and federal Cabinet, all the discussions are taped. The government should declassify the tapes and then they understand better the role of MCA in a multiracial country.

Why is DAP so quiet about Anwar's alleged account of RM3bil, this from a statutory declaration?

This is equal partnership, let me tell you PR claims equal partnership but until today PAS have never openly endorsed Anwar as prime minister.

You can't even agree on a party common symbol and logo and register the party.

Question: I've read your Buku Jingga, stated among other things that if party win GE, forms central government they are going to abolish all road tolls, PTPTN and give income to houses that make less than RM4,000 to make up that amount. Lots of other goodies. How are you going to implement these policies bearing in mind annual revenue does not exceed RM200bil.

Lim: This the first time I'm hearing from a minister admitting corruption cost us RM26bil. Question is, what you doing about it? Are you accepting the fact that BN permits corruption? That's why I say shame on you again.

Don't talk about collections from public. When DAP organises dinners, we don't give free dinners like MCA or Umno. We charge because we rely on public funds to survive. We don't steal the government's money. That is the difference between BN and PR, the difference between MCA and DAP.

I think you need to read the right Buku Jingga, I think you read the wrong one. Abolish tolls, estimate of RM35mil. If you don't believe can be done, vote us into power and we show you can be done.

Question: On Chinese independent schools.

Dr Chua: I only wish DAP is more specific. Why is it not written more clearly they will build more Chinese schools? Independent schools? Recognise UEC?

I openly asked Anwar, are you going to build more Chinese schools? More independent schools?

Because if it is from DAP, I dont trust it. Why? Cos DAP will say this is not common policy framework.

Lim:We are not like MCA leaders who go to jail for cheating rakyat of its money.

When you talk about building of schools, judge by the deeds of the PR government in Selangor and Penang. We have given land, we have given funding, we have given funding every year. If PR can give to all these schools, independent, Indian, Chinese, every year funding, why BN cannot do so?

Don't question our openess to allow independent Chinese schools.

When you talk about Anwar if PR wins power he will be Prime Minister.

Question: What national education policy should there be to generate competent citizens?

Lim:We cannot ignore the fact that human talent will be the future of our country.

Not a question of building human talent but retaining human talent.

Since Merdeka two million Malaysians left the country because they see no future for themselves or Malaysia.

They see they don't have freedom, integrity or justice. That's why we are fighting for freedom, democracy, integrity, justice. To fight corruption is not hard, only depends on whether you got political will. No laws (to combat corruption) in Penang but we have wiped out corruption in Penang, I am proud to say.

If we win power in Malaysia, we will do the same in Malaysia. That is why so many people are afraid.

Dr Chua: When people are educated or talented, they have economic independence and social mobility. Almost all developing countries face brain drain.

This no justification. That's why when I say we trained 200,000 talented people, the Penang Chief Cminister says shame on us.

Look at our meritocracy policy, number of non-Malays in tertiary gone up. Last year, JPA gave more scholarships to all races, 20% to needy, disadvantaged in Sabah and Sarawak.

Talent Corp is another good example of reaching out. When we train talent they say shame on you. If you can't do it, admit you can't. No country in the world can meet needs of education for all citizens.

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Whose Policies Benefits the Country Most, MCA or DAP? Chua-Lim Debate 2.0

PETALING JAYA (July 8 2012): The second debate between MCA president Datuk Seri Dr Chua Soi Lek and Penang Chief Minister Lim Guan Eng has started at the Sunway Pyramid Convention Centre in Subang Jaya.

Dr Chua being greeted by a well-wisher upon his arrival at the hall.





















The debate started with Lim's opening remarks.

Lim: "MCA is not qualified to talk about politics here, as it is not MCA who decides - it is Umno who decides.

"The MCA speaks only for the Chinese, and those from the Peninsula - not Sabah or Sarawak.

"It is different for DAP - we want to speak for all Malaysians. Malay, Cina, India, Iban, Kadazan.

"We are all Malaysians. Look at the NFC scandal," he said.

"Who gains? The cronies. The losers are the citizens of Malaysia.

"For last 50 years, consumed by race and religion. For the next 50 years, let us be consumed with the tasks of economic wellbeing.

"BN has never spoken truthfully to the people. Let Pakatan Rakyat speak truthfully to you.

"DAP believes a clean govt can always perform better than a corrupt govt.

"If Penang dares to review the assets of the CM, why is the PM afraid of reviewing his assets and those of his ministers?" he said.

Dr Chua: "Just now YAB asked why the PM didn't want to debate with Anwar. I want to say here, it hasn't happened because he is the prime minister.

"From 2008 to 2011, the ease of doing business compared from 2003 to 2008. The fifth most favored FDI nation in Asia.

"They haven't been empty promises like those from Pakatan Rakyat. The promises were fulfilled. These three years, the rakyat has gotten what was promsied under the leadership of DS Najib."

"Anwar is full of rhetoric, no specific, short on delivery. He has to convince us to translate this rhetoric into what we call delivery.

"MCA has been involved in nation building from day one. We were the one involved in the fight against the communist insurgency, the resettlement of the Chinese in new villages, the fight for independence, the right of citizenship after independence. That's why citizens like LGE are citizens of the country.

"We laid down the foundations. We have progressed, advocated integration not assimiliation. That's why LGE is not called Sukarno Lim.

"These are history. All part of nation building. DAP has no role to play."

"What has PR done for us? No clear direction.

"Look at the four PR states, 95pc of the promise is janji janji kosong.

"Everyday tell the whole world you give hundred dollars to the old people.

"Two hundred to the newborn and they must be voters. We give 200 to our newborn babies.

"State govt giving 100, 200 are all populist policy. Does not address fundamental problem of country."

"DAP has only one thing to show. They collect a lot of money from the rakyat. Despite calls of accountability, transparency - nothing to show. Transparency, Accountability, where are they? Where has the money collected gone to?

"DAP is a camoflauge for Chinese chauvinist party."

Question: Mr President, stated number of major achievements of MCA, contributions to nation building. Yes today, many urban voters perceive MCA has not done enough. Perception that many urban voters are not supporting MCA. What would you do to try regain more support for MCA.

Dr Chua: We accept the fact this is a multiracial country and the policy of BN is the policy for balancing. DAP likes to tell the Chinese they are marginalised. The povery rate of Chinese is still lowest among three major races. Employment highest. Property ownership largest. Cannot deny in implementaion process there are people who benefit more than others, this is the bone of contention, cause a lot of Chinese to be angry with the govt and MCA bears the burden of this.

"DAP tries to portray itself as a multiracial party, but only dares to contest in chinese constituenciaes.

"Why don't you contest in multiracial constituencies? We are a mono-ethnic party, but our aims are clear.

"In this country we have to balance the needs and sensitivities of all countries. No particular race will feel happy.

"In the same way we sometimes feel govt giving too much to bumiputra. but some bumiputras not happy with govt."

Question: Many people still see DAP as Chinese-based party. Are you a Chinese party or multi-racial party, how would you try to win more support among other races if the latter is true.

Lim: From the very start we are a multiracial party. Our chairman is Indian, we have Indian MPs, have Malay MPs and state assemblymen in the past. We are fair to all regardless of race and religion. Would like MCA president know that not every Chinese rich as the MCA leaders.

Not every Chinese can apply for PR in Australia.

Don't forget that the Chinese community pays the most taxes in Malaysia.

At the same time we want to see justice and see our Malay brothers and sisters are assisted.

Why is it poor Chinese can't get scholarship but rich bumiputras can?

Dont go and talk about DAP forming a kindergarten. We are a political party to determine the future of Malaysia.

TAR College is clearest example of failure of MCA. Why was it established? Because of unfair quota policies where qualified students cannot enter public universities. so you formed TAR College. Shame on you MCA.

Dont say we haven't built low ccost housing. We have build. Don't lie.

Question:Is MCA scared of Umno

Dr Chua: I take objection to that question to say MCA is sacared of Umno. Not a fair question. If I say - and I've always said - if the state Cabinet, state exco and federal Cabinet, all the discussion are all taped. The govt should declassify the tape and then they und better the role of mca in a multiracial country.

Why is DAP so quiet about Anwar's alleged account of RM3bil, this from a statutory declaration.

This is equal partnership, let me tell you PR seize equal partnership but until today PAS have never openly endorsed Anwar as prime minister.

You can't event agree on a party common symbol and logo and register to party.

Question: I've read your Buku Jingga, stated among other things that if party win GE, forms central govt, going to abolish all road tolls, PTPTN and give income to houses that make less than 4K to make up that amount. Lots of other goodies. How are you going to implement these policies bearing in mind annual revenue does not exceed RM200bil.

Lim: This the first time I'm hearing from a minister admitting corruption cost us RM26bil. Question is, what you doing about it? Are you accepting the fact that BN permits corruption? That's why I say shame on you again.

Talk about collections from public. When DAP organises dinner, we don't give free dinners like MCA or Umno. We charge because we rely on public funds to survive. We don't steal the govt's money. That is the difference between BN and PR, the difference between MCA and DAP.

I think you need to read the right Buku Jingga, I think you read the wrong one. Abolish tolls, estimate of RM35mil. If you don't believe can be done, vote us into power and we show you can be done.

Question: On Chinese independent schools

Dr Chua: I only wish DAP is more specific as when they see a Chinese... why is it not written more clearly they will build more Chinese schools? indeopendent schools? recognise UEC?

I openly asked Anwar, are you going to build more Chinese schools? More independent scghool? pls tell me.

Because if it is from DAP, I dont trust. Why? Cos DAP will say this is not common policy framework.

Lim:We are not like MCA leaders who go to jail for cheating rakyat of its money.

When you talk about building of schools, judge by the deeds of the PR govt in Selangor and Penang. We have given land, we have given funding, we have given funding every year. If PR can give to all these schools, independent, Indian, Chinese, every year funding, why BN cannot do so?

Don't question our oppeness to allow indepndent Chinese schools.

Anwar, I cannot blame CSL because he gets his buku jingga from Chor Chee Heung, don't know what document they are reading. Maybe I should send videotape to you.

When you talk about Anwar if PR wins power he will be PM.

-------------------------------------------

PETALING JAYA: The Star Media Group will provide live coverage of the debate between Datuk Seri Dr Chua Soi Lek and Lim Guan Eng tomorrow. (8 July 2012, Sun 2:30pm)

SwitchUp.TV, The Star's web TV site, will stream the debate live at 2.30pm. Those who wish to view it can watch live from the switchup.tv here below:

Catch the streaming video of the Chua-Lim debate on the topic, "DAP & MCA: Whose Policies Benefit the Country More?" live from Sunway Pyramid Convention Centre on Sunday, July 8, 2012 at 1430-1630hrs :



The debate will also be broadcast live over the radio by The Star's radio stations 988, Capital FM and Red FM.

Another option is to listen to it via the stations' websites www.988.com.my, www.capitalfm.com.my and www.red.fm.

Updates will also be provided on The Star Online as well as via Twitter through @staronline.

The MCA publicity bureau will also be streaming the debate live through the party's website at www.mca.org.my or its official UStream homepage at www.ustream.tv/channel/mca-tv1.

Unlike the previous debate which was televised live, a delayed recording of tomorrow's event would be shown on Astro Awani and Astro AEC at 11pm on the same day.

Asian Strategy and Leadership Institute will provide video recordings on YouTube with a delay of between eight and 10 minutes.

Its senior vice-president Ng Yeen Seen said plainclothes security officers would be among the audience during the debate to ensure that order was maintained.

This is one of the security measures to be taken by Asli, which is the organiser of the debate.

“While we are not expecting things to get violent, it is important to have moves in place in the interest of safety,” Ng said.

She said there were no untoward incidents in the first debate between the two politicians on Feb 18 and the same was expected for the one tomorrow.

During the first debate on Feb 18, some of the audience turned rowdy when posing questions to Dr Chua, who is MCA president, and Lim, who is the DAP secretary-general and Penang Chief Minister.

Some were seen snatching the microphone and shouting during the debate titled “Chinese at the crossroads: Is the two-party system becoming a two-race system?”.

For tomorrow's debate at the Sunway Pyramid Convention Cen-tre, Ng said MCA and DAP would each be allocated 400 seats for their supporters at the right and left sides of the hall, respectively.

“In the centre rows, 500 seats have been sold to the public while another 100 are reserved for Asli's guests,” she said, adding that reporters would be seated at tables in front of the hall to allow them to monitor the debate.

The debate, titled “DAP & MCA: Whose Policies Benefit the Coun-try More?”, will be conducted in English in front of a 1,500-strong audience.

By YUEN MEIKENG meikeng@thestar.com.my
  
Related:

Nightmarish hunt for a home ?

Property consultants forecast the property market to remain slow for the rest of the year. Will the average middle-income earner be able to afford the house of their dream now?
 
COMMUNICATIONS executive Michelle (not her real name) has been house-hunting for a while now but has yet to find a property that suits her budget.

Having been in the workforce for nine years, Michelle, 33, feels it is time to buy her own house. But with the prices of residential properties in Malaysia skyrocketing over the last two years, her prospect of getting her dream home looks bleak.

“Back in 2009, my friends were telling me to buy my own place but at that time, my priority was to travel. Around last year, when I was finally ready to commit to getting a house, prices weren't what they used to be any more.

“A decent 1,000sq ft (93 sq m) apartment that used to cost around RM200,000 to RM300,000 is now RM500,000 to RM600,000. That is far beyond what I can afford,” she laments.

Soaring interest: Prospective house buyers at a property launch. — Filepic

 

From early 2010 up to the end of last year, residential properties in good locations within the Klang Valley have seen a sharp spike of between 20% and 40% in price, a trend which has caused grave concern for potential house-buyers.

But how is the scenario looking in 2012?

According to KGV International Property Consultants executive director Anthony Chua, the first half of the year has been generally quiet.

“There seems to be a breather in the residential market. It's definitely not as busy compared with the same period last year. (The number of) inquiries with us have also lessened significantly,” Chua says.

He explains that inquiries in 2012 with KGV on high-end properties (above RM2mil) have gone down by about 30% compared with the first half of last year. Inquiries on other segments (between RM1mil and RM2mil, and below RM1mil) have also gone down but not as drastically.

Reasons for this could include tighter lending guidelines set by the banks and buyers taking a more cautious approach on their investments this year.

(Following Bank Negara's new lending guidelines, which came into effect on Jan 1, loans are now approved based on net income compared with gross income previously, in addition to the need for more documentation. The new guidelines are intended to help keep household debt in Malaysia to reasonable levels.)

Chua: ‘While interest in property purchase has waned, prices are still going strong for landed property.’

Chua adds that there was a lot of speculation in the property market in the past two years, and that the market is due for a correction.

“The economic scenario is not as rosy and people are expecting things to worsen, which could be why they are hesitant to invest. And to a lesser degree, it could also be the coming general election, which is causing some uncertainties,” Chua says.

Paul Khong, executive director of property consultancy CB Richard Ellis (M) Sdn Bhd, shares similar sentiments.

“The number of buyers (for properties above RM3mil) has dropped by about half with the stricter bank-lending guidelines, which has eliminated the speculative group (of buyers).

“For properties below RM2mil, the market is relatively active with more real transactions. With the new lending guidelines in place, many investors have disappeared from the radar,” Khong says, adding that those who want to purchase their third property now will need 30% in cash for downpayment.

“So, to buy a RM3mil property, they'll need RM1mil in cash if it is their third property. Previously, RM400,000 was enough,” Khong says.

Interestingly, Chua notes that while interest in property purchase has waned, prices are still going strong for landed property.

However, sellers are seen to be less aggressive this year.

“They seem to be less demanding and more willing to accommodate. Last year, they would have said this is my price', and would have refused to budge,” he says.

Property consultants forecast the property market to remain quite slow for the rest of the year.

Khong: ‘The number of buyers (for properties above RM3mil) have dropped by about half.’ >>

Even so, for average middle-income earners such as Michelle, the current prices of properties in various locations within the Klang Valley (refer to chart) leave her with few options.

“I don't even dare look at landed property any more. Even apartments at relatively good locations cost RM400,000 and up.

“For my budget, an apartment around RM200,000 to RM350,000 would still be quite comfortable,” says Michelle, who currently lives with her family in Petaling Jaya.

A mass communications graduate from the United States, Michelle draws a salary of about RM5,000 a month, which goes into paying for her car loan, household expenses, utilities, and credit card bills.

“Household expenditure doesn't just cover grocery shopping. I also have to pay for medical bills, car maintenance and repairs as well as give my parents some money too,” she says.

“As banks are now looking at net income, the loan amount I qualify for is unlikely to be enough for me to even afford an apartment in the Klang Valley.

“Sure, you can still get cheaper houses in places like Bukit Beruntung, but it's just too far away. My life is here. At the rate property prices are going, the thought has crossed my mind that I may never be able to afford a place of my own.”

It's not just within the Klang Valley that property prices have escalated.

Early last month, it was reported that residential property prices in Penang have shot up by more than 25% over the past five years.

Condominium units in Batu Ferringhi, Tanjung Bungah and Gurney Drive, with sea-front views, are being sold at astronomical prices, in some cases beginning with RM2mil for a 1,000 sq ft unit.

Houses which cost about RM500,000 in 2007 now cost RM800,000 an increase of about 30%.

Chang: ‘An entire generation of young adults could be locked out of property investments.’

Raine & Horne Malaysia director Michael Geh was reported as saying that the increase was among the steepest in the Pulau Tikus, Gurney Drive, Tanjung Tokong, and Tanjung Bungah residential neighbourhoods, which experienced a 25% increase in prices of condominium units.

Other areas where prices of condominium units and terrace and semi-detached houses have shot up by at least 25% are Bayan Baru, Sungai Ara, Minden Heights and Batu Maung.

Medium-range housing schemes in George Town neighbourhoods of Perak Road, MacCallum Street, Jelutong Road and Sungai Pinang have also not been spared an apartment located in such a neighbourhood cost RM180,000 in 2007 but is now RM250,000.

It is precisely with this concern in mind that the National House Buyers Association (HBA) has come up with a 10-point proposal to the Government, to find solutions which it claims will hopefully bring prices down.

Among the proposals are for the Government to unlock its land banks in various locations and give priority to affordable housing projects rather than high-end properties.

The HBA is urging the Government to take the lead in developing affordable homes and not leave it to property developers.

It has also proposed that those who buy homes under the affordable housing projects (with a proposed price range of RM150,000 to RM300,000) be barred from selling their property until after 10 years. Before the 10-year period is up, they should only be allowed to sell the house back to the Government.

The association has also proposed that the Government impose a higher stamp duty and real property gains tax as well as tighter mortgage rules for those buying a third and subsequent properties.

HBA secretary-general Chang Kim Loong notes that with the way prices are climbing, the majority of young working adults will not be able to afford to buy a home.

“I'm talking about young people from around the age of 25 to 35 years old, with an average income of about RM3,500 per month.

“The rule of thumb is that a third goes into paying for your home.

“But with RM1,000, many will still not be able to afford it. The consequence of this could be that an entire generation of young adults could be locked out of property investments,” he explains.

A question that needs to be asked, however, is whether HBA's proposal for “affordable housing scheme” by the Government will be able to meet the needs of the urban middle-income earners such as Michelle.

“There are several factors to consider. The location, for example,” Michelle says.

“If the design and quality is decent, then yes, I am willing to consider it. But this doesn't mean we have to settle for bad quality homes, with cheap construction materials.”

BY LISA GOH lisagoh@thestar.com.my

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