Iskandar and Singapore's boom and bust will go hand in hand. I'm still doubtful how SG can have sufficient jobs for a 7mil population, and let Iskandar prosper...
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Economic News
- Thread starter FHBH12
- Start date
Malaise Is Ahead For Malaysia's Bubble Economy
10/15/2013 @ 2:54PM
http://www.forbes.com/sites/jessecolombo/2013/10/15/malaise-is-ahead-for-malaysias-bubble-economy/
10/15/2013 @ 2:54PM
http://www.forbes.com/sites/jessecolombo/2013/10/15/malaise-is-ahead-for-malaysias-bubble-economy/
Budget Surplus and Deficit
Dato' Seri Anwar bin Ibrahim (born 10 August 1947) is a Malaysian politician. He is the Leader of Opposition of Malaysia (Pakatan Rakyat), economic advisor to the state government of Selangor[1] and de facto leader of PKR (KeADILan). He served as the Deputy Prime Minister of Malaysia from 1993 to 1998 and Finance Minister from 1991 to 1998 when he was in UMNO, a major party in ruling Barisan Nasional coaltion. He is an internationally renowned speaker on the subjects of democracy, freedom, governance, Islam and the need for accountability.
Dato' Seri Anwar bin Ibrahim (born 10 August 1947) is a Malaysian politician. He is the Leader of Opposition of Malaysia (Pakatan Rakyat), economic advisor to the state government of Selangor[1] and de facto leader of PKR (KeADILan). He served as the Deputy Prime Minister of Malaysia from 1993 to 1998 and Finance Minister from 1991 to 1998 when he was in UMNO, a major party in ruling Barisan Nasional coaltion. He is an internationally renowned speaker on the subjects of democracy, freedom, governance, Islam and the need for accountability.
Some SMEs rethink Iskandar plans as costs rise
By malminderjit singh [email protected]
Published January 17, 2014
[SINGAPORE] Some Singapore businesses are finding out that Iskandar Malaysia, touted as a more cost-effective destination for them, is no longer that cheap.
The rapidly rising land costs there, in addition to inadequate infrastructure and manpower challenges, are forcing some homegrown small- and medium-sized enterprises (SMEs) to rethink their plan to set up shop in the southern development corridor of peninsular Malaysia.
The Iskandar Malaysia website said commercial land prices there are expected to have gone up by at least 10 per cent in the course of last year alone; at the start of the year, land there had cost up to about RM400 (S$154) per square foot.
But some Singapore SMEs say the quantum of the rise cited is a conservative estimate.
When Tommy Lim, the chairman of manufacturing company Tri-Star Industries, was looking into acquiring more land to add to his 20,000 sq m of factory space near Pasir Gudang, he was shocked to have been quoted S$300 per sq ft for an industrial space in the Iskandar region, which he said was "almost comparable to Singapore rates".
He revised his plans and invested in new machinery to scale up production at his existing factory instead.
Another Singapore SME which came up against the high land cost and lack of infrastructure in Iskandar moved instead to Kuala Lumpur, where land costs were lower and infrastructure is established. (The SME declined to be named.)
Craftech Printing Services was turned off setting up in Iskandar by the lack of available skills and talent there. Its general manager Paul Lim told The Business Times that the company has chosen to stay put in Singapore.
But it is not as if this was the easy option. Staying on here entails dealing with high business costs and a tight labour market, which is why some companies bite the bullet and consider going to the Malaysian economic zone - its challenges notwithstanding.
Mr Lim said: "In Singapore, there is constraint of land and labour, and it is also too expensive to produce here."
Referring to Iskandar's shortfalls in skilled manpower and security, Mr Lim said "these are things you get used to", because cost remains the prime factor.
Among the companies which have already moved to Iskandar is precision-engineering company Grand Team Technologies, which has a 1,000 sq ft facility in Ang Mo Kio; it is also awaiting the completion of its factory in an industrial park in Kempas, a suburb of Johor Baru, and is scouting for yet another site for possible expansion.
Jason Ng, the company's managing director, said the high costs and tight labour market in Singapore are eating into his company's profits. He acknowledged that Iskandar is beset with its own manpower issues, but said that, for operations needing fewer than 50 employees such as his, this is less of a challenge.
Blue Bay Interactive, on the other hand, has put its Iskandar plans on the back-burner for now. It has decided to wait another year or two to see how things pan out across the Causeway, while carrying out an internal restructuring.
Managing partner Rodney Ang told BT that the company still had some concerns about Iskandar, as it was "used to the stability found in Singapore"; in Iskandar, both national and state policies are less certain, raising the spectre of an "unknown factor", he said.
For his company, Iskandar's lack of manpower - skilled hands, in particular - is an issue.
He added, however, that the company's current restructuring would make its operations less labour-intensive, so the shortage of manpower there would be less of a concern eventually.
Recognising that SMEs here may need to still move away from Singapore to survive, the Singapore Manufacturing Federation yesterday launched a website to help companies here expand into Iskandar and the Riau islands of Indonesia. The one-stop Business Expansion Programme portal features a self-assessment tool and provides information and case studies to help SMEs draw up their moving plans.
The portal is expected to help them reduce the initial cost in expanding - a factor that may help SMEs overcome the rising cost pressures in Iskandar.
http://www.businesstimes.com.sg/pre...es-rethink-iskandar-plans-costs-rise-20140117
By malminderjit singh [email protected]
Published January 17, 2014
[SINGAPORE] Some Singapore businesses are finding out that Iskandar Malaysia, touted as a more cost-effective destination for them, is no longer that cheap.
The rapidly rising land costs there, in addition to inadequate infrastructure and manpower challenges, are forcing some homegrown small- and medium-sized enterprises (SMEs) to rethink their plan to set up shop in the southern development corridor of peninsular Malaysia.
The Iskandar Malaysia website said commercial land prices there are expected to have gone up by at least 10 per cent in the course of last year alone; at the start of the year, land there had cost up to about RM400 (S$154) per square foot.
But some Singapore SMEs say the quantum of the rise cited is a conservative estimate.
When Tommy Lim, the chairman of manufacturing company Tri-Star Industries, was looking into acquiring more land to add to his 20,000 sq m of factory space near Pasir Gudang, he was shocked to have been quoted S$300 per sq ft for an industrial space in the Iskandar region, which he said was "almost comparable to Singapore rates".
He revised his plans and invested in new machinery to scale up production at his existing factory instead.
Another Singapore SME which came up against the high land cost and lack of infrastructure in Iskandar moved instead to Kuala Lumpur, where land costs were lower and infrastructure is established. (The SME declined to be named.)
Craftech Printing Services was turned off setting up in Iskandar by the lack of available skills and talent there. Its general manager Paul Lim told The Business Times that the company has chosen to stay put in Singapore.
But it is not as if this was the easy option. Staying on here entails dealing with high business costs and a tight labour market, which is why some companies bite the bullet and consider going to the Malaysian economic zone - its challenges notwithstanding.
Mr Lim said: "In Singapore, there is constraint of land and labour, and it is also too expensive to produce here."
Referring to Iskandar's shortfalls in skilled manpower and security, Mr Lim said "these are things you get used to", because cost remains the prime factor.
Among the companies which have already moved to Iskandar is precision-engineering company Grand Team Technologies, which has a 1,000 sq ft facility in Ang Mo Kio; it is also awaiting the completion of its factory in an industrial park in Kempas, a suburb of Johor Baru, and is scouting for yet another site for possible expansion.
Jason Ng, the company's managing director, said the high costs and tight labour market in Singapore are eating into his company's profits. He acknowledged that Iskandar is beset with its own manpower issues, but said that, for operations needing fewer than 50 employees such as his, this is less of a challenge.
Blue Bay Interactive, on the other hand, has put its Iskandar plans on the back-burner for now. It has decided to wait another year or two to see how things pan out across the Causeway, while carrying out an internal restructuring.
Managing partner Rodney Ang told BT that the company still had some concerns about Iskandar, as it was "used to the stability found in Singapore"; in Iskandar, both national and state policies are less certain, raising the spectre of an "unknown factor", he said.
For his company, Iskandar's lack of manpower - skilled hands, in particular - is an issue.
He added, however, that the company's current restructuring would make its operations less labour-intensive, so the shortage of manpower there would be less of a concern eventually.
Recognising that SMEs here may need to still move away from Singapore to survive, the Singapore Manufacturing Federation yesterday launched a website to help companies here expand into Iskandar and the Riau islands of Indonesia. The one-stop Business Expansion Programme portal features a self-assessment tool and provides information and case studies to help SMEs draw up their moving plans.
The portal is expected to help them reduce the initial cost in expanding - a factor that may help SMEs overcome the rising cost pressures in Iskandar.
http://www.businesstimes.com.sg/pre...es-rethink-iskandar-plans-costs-rise-20140117
Pressure on Najib to address M'sians' economic concerns
BY S JAYASANKARAN IN KUALA LUMPUR
PUBLISHED JANUARY 23, 2014
VETERAN journalist and influential political commentator Kadir Jasin yesterday warned Prime Minister Najib Razak to either address Malaysians' economic problems or step down. Failing that, he said there was a possibility that the ruling coalition would lose the next general election (GE).
Mr Kadir, ex-group editor-in-chief of New Straits Times Publishing and a close confidant of ex-premier Mahathir Mohamad, painted three possible scenarios, answering a question from an adviser to the premier on Mr Najib's leadership.
"One is for the PM to change and do the right thing to ease the hardship of the people," Mr Kadir wrote in his blog, The Scribe. "Two, for him to be removed if he does not change. And three, he remains, nothing changes and the Barisan Nasional (BN) faces the risk of being thrown out at the next general election."
The unusually blunt assessment from a once-loyal supporter of the United Malays National Organisation (Umno), over which Mr Najib presides, is no longer uncharacteristic in Malaysia. Bloggers aligned to Dr Mahathir, for example, have been venomous in their criticism of what they perceive to be weak leadership.
The immediate catalyst to all this is the government's easing of subsidies after the GE, which the ruling party narrowly won. Then just before the new year, a raft of price hikes - from a 15 per cent rise in electricity tariffs to a proposed assessment rate and toll increases - stirred up public outrage at a time when the government seemingly continued spending.
Mr Najib has tried to mitigate the subsidy cuts by announcing austerity measures, including a cut in the salaries of senior government officials. But this has not blunted the criticism of netizens.
The current political atmosphere evokes memories of the immediate aftermath of the 2008 GE, when there were calls for the resignation of then-premier Abdullah Ahmad Badawi, but with a significant difference: Mr Abdullah was openly attacked by not just Dr Mahathir but by senior Umno officials as well.
Besides from netizens, however, Mr Najib has faced no direct criticism from Umno or Dr Mahathir; if anything, the criticism has been oblique. Last weekend, Kedah Mentri Besar Mukhriz Mahathir fretted that government policies could endanger the Barisan Nasional's electoral chances. Mr Mukhriz is Dr Mahathir's youngest son.
Even Mr Kadir concedes there is no real pressure on Mr Najib to step down. "Yes, he can stay on to complete his term," he told BT. "Then Umno will decide."
While many analysts agree that subsidies have to be cut, they believe that these should have been done in a staggered fashion. Wan Saiful Wan Jan of the Ideas think-tank also argued in TheStar newspaper yesterday that the cuts should come against a backdrop of sweeping cuts in government spending and a plugging of leakages.
In his blog post, Mr Kadir pointed out the premier's tendency to shy away from commenting on controversial issues. He said that through his meetings with employees of government-linked firms and BN leaders, it was "unanimous that the apparent inaction of the prime minister and his rather inelegant silences are a cause for concern".The commentator also decried what he called Mr Najib's tactic of "playing it safe" - saying it no longer worked and that Mr Najib "should abandon it and start taking positions in order to serve the people".
http://www.businesstimes.com.sg/pre...jib-address-msians-economic-concerns-20140123
BY S JAYASANKARAN IN KUALA LUMPUR
PUBLISHED JANUARY 23, 2014
VETERAN journalist and influential political commentator Kadir Jasin yesterday warned Prime Minister Najib Razak to either address Malaysians' economic problems or step down. Failing that, he said there was a possibility that the ruling coalition would lose the next general election (GE).
Mr Kadir, ex-group editor-in-chief of New Straits Times Publishing and a close confidant of ex-premier Mahathir Mohamad, painted three possible scenarios, answering a question from an adviser to the premier on Mr Najib's leadership.
"One is for the PM to change and do the right thing to ease the hardship of the people," Mr Kadir wrote in his blog, The Scribe. "Two, for him to be removed if he does not change. And three, he remains, nothing changes and the Barisan Nasional (BN) faces the risk of being thrown out at the next general election."
The unusually blunt assessment from a once-loyal supporter of the United Malays National Organisation (Umno), over which Mr Najib presides, is no longer uncharacteristic in Malaysia. Bloggers aligned to Dr Mahathir, for example, have been venomous in their criticism of what they perceive to be weak leadership.
The immediate catalyst to all this is the government's easing of subsidies after the GE, which the ruling party narrowly won. Then just before the new year, a raft of price hikes - from a 15 per cent rise in electricity tariffs to a proposed assessment rate and toll increases - stirred up public outrage at a time when the government seemingly continued spending.
Mr Najib has tried to mitigate the subsidy cuts by announcing austerity measures, including a cut in the salaries of senior government officials. But this has not blunted the criticism of netizens.
The current political atmosphere evokes memories of the immediate aftermath of the 2008 GE, when there were calls for the resignation of then-premier Abdullah Ahmad Badawi, but with a significant difference: Mr Abdullah was openly attacked by not just Dr Mahathir but by senior Umno officials as well.
Besides from netizens, however, Mr Najib has faced no direct criticism from Umno or Dr Mahathir; if anything, the criticism has been oblique. Last weekend, Kedah Mentri Besar Mukhriz Mahathir fretted that government policies could endanger the Barisan Nasional's electoral chances. Mr Mukhriz is Dr Mahathir's youngest son.
Even Mr Kadir concedes there is no real pressure on Mr Najib to step down. "Yes, he can stay on to complete his term," he told BT. "Then Umno will decide."
While many analysts agree that subsidies have to be cut, they believe that these should have been done in a staggered fashion. Wan Saiful Wan Jan of the Ideas think-tank also argued in TheStar newspaper yesterday that the cuts should come against a backdrop of sweeping cuts in government spending and a plugging of leakages.
In his blog post, Mr Kadir pointed out the premier's tendency to shy away from commenting on controversial issues. He said that through his meetings with employees of government-linked firms and BN leaders, it was "unanimous that the apparent inaction of the prime minister and his rather inelegant silences are a cause for concern".The commentator also decried what he called Mr Najib's tactic of "playing it safe" - saying it no longer worked and that Mr Najib "should abandon it and start taking positions in order to serve the people".
http://www.businesstimes.com.sg/pre...jib-address-msians-economic-concerns-20140123
Rehda: Cooling measures affecting Johor property
Published: Thursday January 23, 2014 MYT 12:00:00 AM
Updated: Thursday January 23, 2014 MYT 6:54:33 AM
JOHOR BARU: The property market in Johor Baru and Iskandar Malaysia has been negatively affected by the cooling measures introduced by the authorities to address rising property prices, says the Real Estate and Housing Developers’ Association of Malaysia (Rehda).
Rehda Johor chairman Koh Moo Hing said potential property buyers in the two areas were now adopting a wait-and-see attitude.
“Feedback from our members (in Rehda Johor) shows that sales are now slowing down compared with last year, and we also expect fewer property project launches this year. Property price rises were expected to also slow down after this,” he told Bernama here yesterday.
He added the Malaysian Property Exposition in Johor in November last year also recorded fewer visitors.
Last year, the Government, in tabling Budget 2014, raised the Real Property Gains Tax to 30% for properties disposed within three years, while the Johor government raised the minimum value of properties that foreigners could buy from RM500,000 to RM1mil.
The second measure had had a bigger impact on the property market in Johor Baru, Koh said.
Potential buyers were now more wary and wanted confirmation that a completed property had been occupied before making a decision to buy, he said. — Bernama
http://www.thestar.com.my/Business/...da-Cooling-measures-affecting-Johor-property/
Published: Thursday January 23, 2014 MYT 12:00:00 AM
Updated: Thursday January 23, 2014 MYT 6:54:33 AM
JOHOR BARU: The property market in Johor Baru and Iskandar Malaysia has been negatively affected by the cooling measures introduced by the authorities to address rising property prices, says the Real Estate and Housing Developers’ Association of Malaysia (Rehda).
Rehda Johor chairman Koh Moo Hing said potential property buyers in the two areas were now adopting a wait-and-see attitude.
“Feedback from our members (in Rehda Johor) shows that sales are now slowing down compared with last year, and we also expect fewer property project launches this year. Property price rises were expected to also slow down after this,” he told Bernama here yesterday.
He added the Malaysian Property Exposition in Johor in November last year also recorded fewer visitors.
Last year, the Government, in tabling Budget 2014, raised the Real Property Gains Tax to 30% for properties disposed within three years, while the Johor government raised the minimum value of properties that foreigners could buy from RM500,000 to RM1mil.
The second measure had had a bigger impact on the property market in Johor Baru, Koh said.
Potential buyers were now more wary and wanted confirmation that a completed property had been occupied before making a decision to buy, he said. — Bernama
http://www.thestar.com.my/Business/...da-Cooling-measures-affecting-Johor-property/
Flat pack giant IKEA posts fresh record full year profit
Published January 28, 2014
[STOCKHOLM] IKEA Group, the world's biggest furniture retailer, posted a 3.1 rise in full-year net profit on Tuesday and said consumer spending was beginning to recover in many markets.
Net profit at the Swedish flat-pack furniture giant was a record 3.3 billion euros in the 12 months through August 2013.
"Consumer spending is improving in many countries," IKEA chief executive Peter Agnefjall said in a statement.
"While the challenging economic situation may not be over, there are positive signs."
The group, whose largest markets are Germany, the United States and France, repeated its target of doubling sales to about 50 billion euros by 2020.
The company had earlier reported a 3.1 per cent rise in sales for the full year. - Reuters
http://www.businesstimes.com.sg/bre...-posts-fresh-record-full-year-profit-20140128
Published January 28, 2014
[STOCKHOLM] IKEA Group, the world's biggest furniture retailer, posted a 3.1 rise in full-year net profit on Tuesday and said consumer spending was beginning to recover in many markets.
Net profit at the Swedish flat-pack furniture giant was a record 3.3 billion euros in the 12 months through August 2013.
"Consumer spending is improving in many countries," IKEA chief executive Peter Agnefjall said in a statement.
"While the challenging economic situation may not be over, there are positive signs."
The group, whose largest markets are Germany, the United States and France, repeated its target of doubling sales to about 50 billion euros by 2020.
The company had earlier reported a 3.1 per cent rise in sales for the full year. - Reuters
http://www.businesstimes.com.sg/bre...-posts-fresh-record-full-year-profit-20140128
Quite a good property seminar is coming up in Singapore:
http://seminar.stproperty.sg/?utm_source=Rotators&utm_medium=banner&utm_campaign=Asiaone_18012013
http://seminar.stproperty.sg/?utm_source=Rotators&utm_medium=banner&utm_campaign=Asiaone_18012013
But she is damn rich so it is small change for her :pI am sure most forumers here would agree with u....as most are vested...heheheheh...huat ah~~~!!
Property is safer
I am sure most forumers here would agree with u....as most are vested...heheheheh...huat ah~~~!!
Stocks can vaporise overnight, property will last for a few generations (unless wartime).
Many people are getting burnt in stocks now. They have forgotten what happened during Q4 2008 - Q1 2009.
Q2 2014 onward will be a good period for Iskandar properties
Stocks can make you very rich in a short time too.
Many people I came across, made their first pot of gold through stocks.
Just make sure you invest with money you can afford to lose.
Be greedy when others are fearful, be fearful when others are greedy.
Many people I came across, made their first pot of gold through stocks.
Just make sure you invest with money you can afford to lose.
Be greedy when others are fearful, be fearful when others are greedy.
Malaysia exports surge in December, seen robust in 2014
Published February 07, 2014
[KUALA LUMPUR] Malaysia's exports and imports both surged by more than 14 per cent in December from a year earlier, much better than expected, strengthening expectations that a robust trade performance will support the Southeast Asian economy this year amid a cooling of consumer demand.
Exports climbed 14.4 per cent from a year earlier, driven by a strong rise in electronics shipments and petroleum products, while imports jumped 14.8 per cent, government data showed on Friday. Economists in a Reuters poll had forecast gains of 9.0 per cent and 8.0 per cent, respectively.
Exports to China, Malaysia's largest trade partner, surged 37.1 per cent from a year earlier.
The December trade surplus was 9.5 billion ringgit (US$2.97 billion), according to data from the Statistics Department. Economists had forecast a trade surplus of 9.6 billion ringgit, compared with 8.0 billion ringgit in November.
Robust exports, helped by a weaker ringgit currency, are expected to support Malaysia's economy this year as domestic demand cools in the wake of government moves to cut food and fuel subsidies that have weighed on public finances.
The ringgit has fallen about 1.4 per cent against the dollar this year amid flagging investor confidence in emerging markets, adding to losses of more than 6 per cent last year.
The trade ministry forecast a 3-4 per cent rise in exports in 2014, with imports seen up 8 per cent.
A stronger trade performance in the last months of 2013 helped make up for a weak first half of the year. In April, Malaysia's trade surplus fell to its lowest level since the 1997 Asian financial crisis, raising fears the country could soon be running a trade deficit.
For the whole of 2013, Malaysia's exports gained 2.4 per cent, while imports were up 7 per cent, partly driven by large infrastructure projects under the government's flagship economic development programme.
Most analysts expect Malaysia's economy to grow 5 per cent or more this year, following an expected expansion of 4.5-5.0 per cent in 2013, helped by a brighter global economy. - Reuters
http://www.businesstimes.com.sg/bre...orts-surge-december-seen-robust-2014-20140207
Published February 07, 2014
[KUALA LUMPUR] Malaysia's exports and imports both surged by more than 14 per cent in December from a year earlier, much better than expected, strengthening expectations that a robust trade performance will support the Southeast Asian economy this year amid a cooling of consumer demand.
Exports climbed 14.4 per cent from a year earlier, driven by a strong rise in electronics shipments and petroleum products, while imports jumped 14.8 per cent, government data showed on Friday. Economists in a Reuters poll had forecast gains of 9.0 per cent and 8.0 per cent, respectively.
Exports to China, Malaysia's largest trade partner, surged 37.1 per cent from a year earlier.
The December trade surplus was 9.5 billion ringgit (US$2.97 billion), according to data from the Statistics Department. Economists had forecast a trade surplus of 9.6 billion ringgit, compared with 8.0 billion ringgit in November.
Robust exports, helped by a weaker ringgit currency, are expected to support Malaysia's economy this year as domestic demand cools in the wake of government moves to cut food and fuel subsidies that have weighed on public finances.
The ringgit has fallen about 1.4 per cent against the dollar this year amid flagging investor confidence in emerging markets, adding to losses of more than 6 per cent last year.
The trade ministry forecast a 3-4 per cent rise in exports in 2014, with imports seen up 8 per cent.
A stronger trade performance in the last months of 2013 helped make up for a weak first half of the year. In April, Malaysia's trade surplus fell to its lowest level since the 1997 Asian financial crisis, raising fears the country could soon be running a trade deficit.
For the whole of 2013, Malaysia's exports gained 2.4 per cent, while imports were up 7 per cent, partly driven by large infrastructure projects under the government's flagship economic development programme.
Most analysts expect Malaysia's economy to grow 5 per cent or more this year, following an expected expansion of 4.5-5.0 per cent in 2013, helped by a brighter global economy. - Reuters
http://www.businesstimes.com.sg/bre...orts-surge-december-seen-robust-2014-20140207
Malaysia's and Singapore's economy should do quite well this year. If the growth can really hit 5%, a lot of people are likely to continue buying properties. Hold on to your Malaysia properties
Wow lau , the whole Singapore is talking about property market cooling off , still want to buy now ? However , I dont see property bubble in Malaysia just yet , but Iskandar properties most likely will also get affected if SG kool off .
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Not Singapore properties. I think there is still some room for Iskandar properties to appreciate. Hold on to them. If really want to buy more then u must do a lot more homework now.
Raising price of raw water sales to S'pore LONG OVERDUE - Johor official
Tuesday, 18 February 2014 08:44
JOHOR BARU - JOHOR has been making a meagre RM7,500 from the sale of 250 million gallons of raw water at 3 sen per 1,000 gallons (4,546.09 litres) to Singapore daily for the past 53 years, state Public Works, Rural and Regional Development Committee chairman Datuk Hasni Mohamad revealed.
The state, he said, however, spent RM2,500 for the purchase of five million gallons of treated water at 50 sen per 1,000 gallons from the city-state daily.
"This means Johor makes a net gain of only RM5,000 daily. Therefore, it is time to review the raw water agreement with our neighbour.
"The Johor government is hoping that the revised rate will be sensible to both sides. I hope it is an all's-well-that-ends-well deal," Hasni told the New Straits Times yesterday, adding that the state government received much feedback that the agreement was outdated and that the rate did not reflect the effect of inflation over the years.
Currently, under the terms of the Malaysia-Singapore Agreement in 1961 and 1962, Singapore's Public Utilities Board purchases raw water from Johor at 3 sen per 1,000 gallons (4,546.09 litres) and sells the treated water at 50 sen per 1,000 gallons to Johor.
Johor sells 250 million litres of raw water to Singapore daily, and buys two per cent of the total back from them in the form of treated water, equivalent to five million litres daily.
In Putrajaya, Foreign Affairs Minister Datuk Seri Anifah Aman said Malaysia would start talking with Singapore if the republic's response on the proposed revision of rate was positive.
"If there is any need for review, we will forward it to Singapore, and if their response is positive, we will start talking," he told reporters yesterday.
Anifah, however, stressed that Malaysia would honour the existing agreement.
"Agreement is an agreement. When there is an agreement, we will honour the agreement."
On Sunday, Hasni was quoted as saying that the agreement was set to undergo a review after the Attorney-General's Chambers had given the Johor government the green light to reassess the rate charged for the raw water it supplied to Singapore.
Johor is expected to raise the rate some time this year.
Although the rate has yet to be announced, it is believed that the state will stick to the rate proposed during the tenure of former prime minister Tun Dr Mahathir Mohamad, which was 60 sen per 1,000 gallons of raw water.
Hasni had said the state executive council had discussed and raised the matter with the Federal Government last August and received a favourable reply from the A-G's Chambers on the legal aspects of the revised rate early last month.
"The A-G's Chambers met a Johor legal advisory team in Kuala Lumpur in early January and told them that we have the right to review the rate. With the green light, it is just a matter of time before we come up with the new rate."
He also said raising the price of raw water was long overdue and Malaysia had been doing a social service by selling raw water to Singapore at a low rate for too many years, adding that the new rate would reflect the actual price of raw water.
Johor, it was reported, would also embark on a "zero water dependency" programme by June this year so that it would no longer need to purchase treated water from Singapore.
The state government is anticipating that when the rate of raw water is raised to 60 sen per 1,000 gallons, Singapore will also hike the rate of treated water sold to Johor.
Under the programme, to be completed in a year, the state government will lay more pipes and improve the capacity of water treatment plants. - NST
Full article: http://www.malaysia-chronicle.com/i...overdue-johor-official&Itemid=2#ixzz2tdWrurRO
Follow us: @MsiaChronicle on Twitter
Tuesday, 18 February 2014 08:44
JOHOR BARU - JOHOR has been making a meagre RM7,500 from the sale of 250 million gallons of raw water at 3 sen per 1,000 gallons (4,546.09 litres) to Singapore daily for the past 53 years, state Public Works, Rural and Regional Development Committee chairman Datuk Hasni Mohamad revealed.
The state, he said, however, spent RM2,500 for the purchase of five million gallons of treated water at 50 sen per 1,000 gallons from the city-state daily.
"This means Johor makes a net gain of only RM5,000 daily. Therefore, it is time to review the raw water agreement with our neighbour.
"The Johor government is hoping that the revised rate will be sensible to both sides. I hope it is an all's-well-that-ends-well deal," Hasni told the New Straits Times yesterday, adding that the state government received much feedback that the agreement was outdated and that the rate did not reflect the effect of inflation over the years.
Currently, under the terms of the Malaysia-Singapore Agreement in 1961 and 1962, Singapore's Public Utilities Board purchases raw water from Johor at 3 sen per 1,000 gallons (4,546.09 litres) and sells the treated water at 50 sen per 1,000 gallons to Johor.
Johor sells 250 million litres of raw water to Singapore daily, and buys two per cent of the total back from them in the form of treated water, equivalent to five million litres daily.
In Putrajaya, Foreign Affairs Minister Datuk Seri Anifah Aman said Malaysia would start talking with Singapore if the republic's response on the proposed revision of rate was positive.
"If there is any need for review, we will forward it to Singapore, and if their response is positive, we will start talking," he told reporters yesterday.
Anifah, however, stressed that Malaysia would honour the existing agreement.
"Agreement is an agreement. When there is an agreement, we will honour the agreement."
On Sunday, Hasni was quoted as saying that the agreement was set to undergo a review after the Attorney-General's Chambers had given the Johor government the green light to reassess the rate charged for the raw water it supplied to Singapore.
Johor is expected to raise the rate some time this year.
Although the rate has yet to be announced, it is believed that the state will stick to the rate proposed during the tenure of former prime minister Tun Dr Mahathir Mohamad, which was 60 sen per 1,000 gallons of raw water.
Hasni had said the state executive council had discussed and raised the matter with the Federal Government last August and received a favourable reply from the A-G's Chambers on the legal aspects of the revised rate early last month.
"The A-G's Chambers met a Johor legal advisory team in Kuala Lumpur in early January and told them that we have the right to review the rate. With the green light, it is just a matter of time before we come up with the new rate."
He also said raising the price of raw water was long overdue and Malaysia had been doing a social service by selling raw water to Singapore at a low rate for too many years, adding that the new rate would reflect the actual price of raw water.
Johor, it was reported, would also embark on a "zero water dependency" programme by June this year so that it would no longer need to purchase treated water from Singapore.
The state government is anticipating that when the rate of raw water is raised to 60 sen per 1,000 gallons, Singapore will also hike the rate of treated water sold to Johor.
Under the programme, to be completed in a year, the state government will lay more pipes and improve the capacity of water treatment plants. - NST
Full article: http://www.malaysia-chronicle.com/i...overdue-johor-official&Itemid=2#ixzz2tdWrurRO
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This is a very smart move by Johor government to raise the water issue again when the reservoirs in Singapore are drying up. IMHO, PUB has mis-calculated Singapore's water self-sufficiency. The second (final) water agreement will expire in 2061.
another MNC is the northern jb side opening.
http://www.theedgeproperty.com/news...-create-up-to-400-jobs-in-next-two-years.html
http://www.theedgeproperty.com/news...-create-up-to-400-jobs-in-next-two-years.html
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