One thing that I would like to remind all people: THE Real Property Gains Tax Act 1976 (RPGTA) has not been abolished but exempted with effect from April 1,2007.
This mean that the government can re-introduce the RPGT if the market become too speculative. This can happen as the government have a track record of inconsistency in it policy. One of the example is make short selling become illegal during Asia financial crisis.
The exemption of RPGT, together with comprehensive changes to the public delivery system in the property sector means that we have shift our focus on attracting FDI in manufacturing sector to Property sector. Will Malaysia become Hong Kong where property sector become dominanat in it economy?
Carmen Chua
The star has reported that: It is not widely known that Carmen had played a key role in the Government’s recent move to abolish real property gains tax (RPGT) to reboot a languishing housing market.Early this year, she was invited by Noordin Sopiee & Associates (NSA) - an offshoot of ISIS founded by the late Tan Sri Noordin Sopiee - for a closed-door presentation, together with three other corporate bigwigs (Lion Group's Tan Sri William Cheng, Tan Sri Rozali Ismail of Syabas, and Kuala Lumpur Kepong Bhd's Datuk Lee Hau Hian).
Her area of focus – how to revive the property sector, one of the pillars of the economy, to aid the nation’s target to grow private investments by 11%. Carmen, together with like-minded friends at NSA, essentially advocated and made a strong case for the abolishment of RPGT.
Truth is, the idea to abolish RPGT is not new. It has been lobbied for so long and by so many but the campaigns, until now, had fired blanks. The difference this time is there appears to be a concerted political will to see it through.
Who is Carmen Chua? She is daughter of Datuk Chua Ma Yu, co-founder of Rashid Husssein Security or RHB Group, founder of Waterfront Group and the person who advocated the merger of plantation group in the country....now under Synergy Drive.
Carmen Chua is a 20 something managing director of ONE KLCC Sdn Bhd. In US, You have seen a number of 20 something boss like Microsoft's Bill Gates, Yahoo's Jerry Yang. In Malaysia, we have Tony Pua. I have also personally work for a 20 something managing director before. He is a selfmade millionaire and extremely competitive.
The only different is....she is female and her father still sit on the board as chairman.
Carmen also sit on the board of Waterfront Incubator and Furniweb Industrial Products Bhd. Carmen has bought a 13.9% stake in Furniweb Industrial Products Bhd.
Another Mah Sing
Mah Sing's CEO Datuk Leong Hoy Kum has in 1992 acquired 20 unit of condominium at Mont Kiara area. In 1993, with shares market super bull run. Rumours said that Datuk Leong amass more than RM20 million in profit. It is not sure whether he paid RPGT at that point of time.
If Datuk Leong have to pay RPGT at 40%. It amounted to RM8 million. It is believe that he has arranged with the buyer for the buyer to bear the cost of RPGT.
Since then, Mah Sing, from a plastic manufacturing company, successfully transform to a property development company and the rest is history.
Now, without RPGT. It is less hassle to repeat what Datuk Leong did in 1993. The problem is....how the stock market perform compare to 1993?
Blog that link here: MindSpace
TechnoratiTag: Business Commentary competitive Economics Economy Malaysia Opinion finance Shares Stock Market klse Property
10 comments:
Wow, impressive. I thought the era of 20-something-year-old entrepreneurs hadn't reached Malaysia yet but obviously I was wrong. To be fair, she DID get up because of her bigshot daddy, but that doesn't mean she's lacking skill in any way.
I've been following your blog for some time now, man. Keep up the good work!
Thank you for your feedback. It really motivated me.
i tot there were a lot of feedbacks here? :P
anyway, carmen made it simply becos of her dad. period. if my dad is a big shot tycoon with a readily built empire... my picture would probably be in the papers too.
good read nonetheless, will come back for more.
I mean email feedback.
You might be correct on big shot tycoon father. However, the intention of my post was not mean to post anybody picture on my blog.
My post actually want to encourage young jobless graduate in Malaysia to venture out on their own.
I do work with a young enterpreneur who managing a business that generate RM2 million to RM4 million turnover per month, and when I work with him. He is only 24 year old. Unlike Carmen Chua, he never work with any body before since graduated from university. He only work for himself.And he do not have big shot father.
Despite his father also sit on the board as company chairman. it is non-executive chairman and I never see his father come to office or interfere the company's operation.
The board of director, majority non-executive directors are mainly his father's friend who merely provide advise and networking for him.
He do borrow from loan shark ( Ah Long ) and mortgate his car initially. (Don't borrow from Ah Long. It doen't mean I advise you to do so) He paid off his Ah Long's debt within one month...how? This is trade secret!
She started off at the Peak and shall reap great business and financial success easily.
I hope this easy success won't make her fat-headed and affects her future Strategy formulation, for property development can be a very lucrative and equally risky one too.
That can also meant she must continue to develop similar projects or greater types of Super-Condos. which are most capital intensive and niche too.
Perhaps to further strengthen her learning spree, she should try developing a Township in the Secondary Market areas. If she can also reap great success there, I believe there is no property developments she cannot succeed, and in the coming decades, she shall be a very successfull property developer... provided she is equally successful in having an equally brilliant and ambitious husband to augment her....which is easier said than done as most corporate first-man are more often than not Toy-boys or BMW drivers.
Hi Shanghai Tower,
Secondary market have different key success factor.....like cost control whereas in high end market. Cost not a key success factor as people willing to pay high price for quality.
Donald Trump move from secondary market to high end market. It is like manufacturing company in the western country to move from low value added product to high value added product to compete with China.
I feel it is more difficult to move from high end product to secondary market than from secondary market to high end product.
Are you sure the current Super-condo. craze isn't another passing shower, just like the Golf resort craze of the 1990s ?
How long will this placebo effect last is anybody's guess.
The Secondary Market has survived since the 1970s and looking at all the many Project Launches going on, it is poised to last for no less than another century, as long as the population and GDP / GNP continues to grow.
Due to its Market demand, customer afforability, low entry barriers & reasonable Capital Gains, even Big Brothers like I.O.I, WCT, GAMUDA and SETIA are banging hard on this Secondary Market segment both to augment-grow and sustain its property development business,
And because Carmen Chua is a Newcomer, I only wanted to forewarn her not to believe blindly that Property Development is always a Bed of Roses; beware also of the thorns and insects / vermint...eg the imported species....
As a Market Veteran I find it appropriate to sound the Fog-horn too.
In Dubai, when a baby is borned, The Govt. gave him/her a million Durham plus an acre of land to build their house.
And so if you got 10-babies, The Govt. will give your family 10,000,000 durhams { RM 9,888,888 } plus 10-acres of land.
Malaysia is also an Oil-Producing Country like Dubai, so when is she also going to implement this baby-friendly policy ?
Meamwhile it should be most appropriate to abolish all those Stamp duties, quit rents, land premium, advertising permit fees and Development licence fees.
Subsidies the hefty Lawyer fees too.
The One Stop Centre should also function holistically instead of acting as another branch of the MAJLISESSSSSSS.
OSC should function like a Bank or Hospital where everything concerning its business and thats Property Development Matters are deliberated and approved within its premise.
Taking a year or ten to obtain Earthwork & Building Plan approval is not rewarding to the Developer nor its Purchasers.
Business is about making profit and serving the Customers besides augmenting National and Social Progress and Auspice.
Thus the Govt. must lead by Excellent Examples; the Dubai way.
i cannot agree more with angry medic. since young, carmen has been doing her best at school. she's not the spoilt child like some who come from a rich family background. no doubt her dad has been behind her, educating her from a businessman perspective that one may not get from the books eventhough she's a First Class Honours student in LSE. she has to work doubly hard than any other average person (if not the same) with the pressure upon her to show the shallow-minded ones that she worked for it too. no matter what, I'm sure she'll do fine and succeed even better with the guidance from her dad. and ZEWT, not all those who have a big shot tycoon as a dad make it big. some only take it for granted.
Thanks for the info, really helpful
Property Development
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