It's one of the great mysteries of the business world: How much is Donald Trump really worth?

It's one of the great mysteries of the business world: How much is Donald Trump really worth?

The world famous real-estate developer and television personality has consistently said it's in the billions. A 2005 book citing anonymous sources said it was between $150 million and $250 million. Mr. Trump sued the writer for defamation. He alleged damage to his reputation that caused him to lose out on future deals in locales from Philadelphia to Kiev.

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Donald Trump discussed how he values his net worth in a deposition.

A hearing in that case will take place Monday in a state court in Camden, N.J. As part of the proceedings, the Donald, as he's known to fans and detractors alike, has provided under oath the secrets to how he values his wealth and treasure. In one case, he says, he does "mental projections."

"My net worth fluctuates, and it goes up and down with markets and with attitudes and with feelings, even my own feeling," he told lawyers in the December 2007 deposition.

The deposition, marked "Confidential," comes to light at a time when some of Mr. Trump's projects, including several condominium developments that bear his name, are struggling. Among the problems are anemic sales, lawsuits, sharp declines in value and troubles with creditors.

In a telephone interview Sunday, Mr. Trump disputed that these are tough times for him. "We have a lot of cash right now. We're starting to buy things," he said while taking a break from playing golf at a Trump course in Bedminster, N.J. He said he stood by the statements he made in the deposition.

In the deposition, given to lawyers representing the book's author, Timothy O'Brien, and its publisher, a unit of French-based Lagardere SCA, Mr. Trump described his public persona. "I'm not different from a politician running for office," he said.

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A city of Chicago flag flies in front of the Trump International Hotel & Tower in the Chicago's business district.

In the deposition, Mr. Trump said that his 2007 estimate of his net worth -- over $4 billion -- is "a very conservative number, in my opinion." He also said $6 billion is a good number, counting his brand value. (In the interview Sunday, he said he was worth $5 billion, not counting brand value.)

Mr. Trump was asked whether he has ever exaggerated in statements about his properties. "I think everybody does," he said in the deposition. "Who wouldn't?"

A follow-up question: Does that mean he inflates the value of his properties in general, nonfinancial public statements? "Not beyond reason," he said in the testimony.

The deposition reveals he told his bankers and New Jersey casino authorities in 2004 and 2005 that he was worth approximately $3.6 billion. In 2005, Deutsche Bank evaluated his net worth as part of underwriting a $640 million construction loan it made to Mr. Trump's Chicago condo and hotel project. The bank said his worth was $788 million, according to information presented by the author's lawyers present during Mr. Trump's deposition.

In his testimony, Mr. Trump discounted that and other low-ball evaluations as "ridiculous." And he noted, "They [Deutsche Bank] still come up with numbers that are many times" what the book's author, Mr. O'Brien, reported. In his interview Sunday, he said Deutsche Bank looked at some of his assets, not all of them, and didn't do independent appraisals. A Deutsche Bank spokesman couldn't be reached.

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A Trump project on Hawaii's Waikiki Beach

Mr. Trump said Sunday that Mr. O'Brien, author of "TrumpNation: The Art of Being the Donald," will "wish he never heard of that God damn book" and predicted that "the publishing company will pay me hundreds of millions of dollars" as a result of the suit.

Mr. O'Brien, who is an editor at the New York Times, declined to comment through his attorney, citing the ongoing litigation.

In the deposition, Mr. Trump discussed how he determined the value of a residential development on old rail yards on Manhattan's west side. According to the deposition, when a newsletter reporter writing about the project's 2005 sale for $1.8 billion said Mr. Trump had a "small interest," Mr. Trump wrote him a note. "You're a real loser. Thanks for the nice story. Is 50% small?"

But Mr. Trump had a 30% limited-partnership interest in the project, according to legal documents. A group of Hong Kong investors were the owners. Asked about this during the deposition, Mr. Trump explained that, in his eyes, he owned half because he gets paid fees for managing the buildings and because he didn't have to put up cash in the deal. "In my own mind I've always felt that," he said. "That 30% is equated to 50%," he said. In his interview Sunday, Mr. Trump said he had owned the equivalent of "more than 50%."

Mr. Trump often licenses his name to other developers in return for a fee or a cut of the sales. During the deposition, Mr. O'Brien's lawyer, Andrew Ceresney, noted that Mr. Trump had claimed publicly that he had a major ownership in one such project.

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A project that Donald Trump is associated with in Las Vegas.

For example, in a November 2007 Wall Street Journal interview cited by Mr. Ceresney, Mr. Trump said he had sold out units at an eponymous condo-hotel project in Hawaii. "The building is largely owned by me," he said in the interview. But in the deposition, Mr. Ceresney produced the licensing agreement for the project. Mr. Trump wasn't a major equity holder in the project, it showed, a fact Mr. Trump didn't dispute.

"Because this is such a strong licensing agreement that I consider it to be a form of ownership," Mr. Trump said. "I'd rather have this than own the building," he said. Moments later he said: "I would say that it could be interpreted to be a form of ownership in the building."

In the deposition, Mr. Trump is asked about the Bedminster, N.J. golf course, which financial statements showed had a net loss of $4.6 million in 2005. Has he ever done a financial analysis of his investment there?

"Yes, I've done mental projections," he said, figuring he'd eventually make $120 million. He never put them down on paper. "You don't really have to," he said. Mr. Ceresney, asks: "Have you discounted in your mind for the risk that you won't sell [memberships] at the prices you are anticipating?"

"I think I will, but it's possible I won't. But I think I will," Mr. Trump said.

At one point during the deposition, Mr. Trump explained the importance of putting his projects in the best light possible. "Would you like me to say, oh, gee, the building is not doing well, blah, blah, blah, come by, the building -- nobody talks that way. Who would ever talk that way?"

Source: WSJ 18 May 2009

Redeveloping and conserving Penang’s heritage

IT is long overdue for Penang to come out with holistic and well thought out plans and programmes for the redevelopment and rejuvenation of George Town’s inner city.

Proactive and concerted efforts by the state government, the private sector and Penang folks should be initiated soon for a workable blueprint in order for the state to regain its glory as the “Pearl of the Orient”.

In the drawing up of a blueprint for the redevelopment, it is important that all stakeholders, especially property owners and those living, working, and operating their businesses around the inner city perimeters, be consulted and their concerns duly addressed.

Many Penangites, especially those who are illiterate or don’t have the time to read up on current issues, are still in the dark over Penang’s world heritage status and what it means to them.

George Town was declared a World Heritage Site by the United Nations Educational, Scientific and Cultural Organisation (Unesco) on July 7, 2008.

It will do the people good if those involved in the planning of George Town’s growth and development take the initiative to organise roadshows and public education programmes to highlight the salient points and issues to the people, and at the same time get their feedback for the blueprint.

The state government should come out with a referendum and consult all the stakeholders, business guilds, clans, associations, and non-governmental organisations (NGOs) that are working towards conserving Penang’s heritage while ensuring it stays relevant in these modern times.

Although it is important to conserve Penang’s old world charm, rich heritage and culture in keeping with its status as a Unesco World Heritage Site, there should be avenues for the new and modern side of Penang to co-exist with the old to ensure the people’s changing lifestyle and livelihood will not be jeopardised.

As a Penang girl, I am certainly proud of the state’s rich Straits Settlement cum Baba Nyonya heritage and culture that dates back to so many generations of the early settlers from China, India, Indonesia and the Arab continents, among others.

Many Penangites who are now residing in other parts of the country (me included) and overseas always have pangs of nostalgia when recalling their younger days in good old Penang.

Besides the lure of the good Penang cuisines, there are many beautiful historical buildings that were built many centuries ago that are still around in various parts of the island, including the inner city, today.

But there are also many pre-war buildings that are left in very dilapidated conditions after their tenants left those buildings when rentals soared after the repeal of the Rent Control Act in 2000.

Many of these buildings have become hazardous and are unfit for occupancy after their owners failed to upkeep and maintain them.

The introduction of clear and transparent guidelines on what can and cannot be done in the redevelopment of these ageing buildings will revitalise and bring back life to the inner city.

Penang can take a leaf from many cities around the world including London, Sydney and Singapore that have successfully rejuvenated and redeveloped old parts of their cities while maintaining the rich heritage and history for the present and future generations to enjoy.

While many of the historical buildings should be conserved in their current original form such as the restoration of the Cheong Fatt Tze Mansion and Khoo Kongsi buildings, those that are too dilapidated should be redeveloped.

Retaining the original facades of these old buildings while allowing new extension annexes within the permissible heights to be built is one practical way of adding value to these buildings.

Buildings that are too old to be restored should make way for new ones that incorporate the elements of Penang’s “old world charm” in the building’s architecture and facade and are within the permissible heights to blend in with the whole environment.

Making known these practical solutions and guidelines that allow room for value adding and reasonable return on investment will encourage the private sector to partake in the inner city’s rejuvenation and inject a new glow and versatility into George Town.

Currently, some interested parties, including NGOs, are taking a very ad-hoc view of how to go about restoring buildings without looking at the big picture of rejuvenating George Town’s inner city.

Instead of opposing every proposed plans, they should offer value added and constructive ideas that are practical and workable.

It is heartening to note that even Unesco has expressed its empathy for Penang folks and has directed its two representatives, David Logan and Giovanni Boccardi, to appraise the situation on how the 18m height restriction for the four hotel projects approved for George Town’s inner city will affect the stakeholders and the people’s livelihood.

Boccardi, who is Paris-based World Heritage Centre chief of unit for East Asia and the Pacific, and Logan, International Council on Monuments and Sites member, were in Penang from April 26 to 30 to meet representatives of the developers of the hotel projects in the Unesco-listed heritage zone.

Their findings are set to be deliberated at the upcoming Unesco World Heritage Committee meeting in Seville, Spain, from June 22 to 30.

The four developers – Asian Global Business Group, Boustead Group, the Low Yat Group and Eastern & Oriental Group have been granted approvals from the Penang Island Municipal Council to build hotels in the heritage zone before it was placed on the Unesco World Heritage List.

With so much at stake, Unesco’s impending decision will put to rest the anxiety of these developers and hopefully, it will be a well thought out and win-win one for all stakeholders.

Meanwhile, instead of directing the four developers to confine the height of their hotels to 18m or five-storeys, the state government should also wait out for the final Unesco decision on the projects.

After all, commercial projects that are viable will generate huge spin-offs to Penang’s economy and create employment for its people.

·Deputy news editor Angie Ng believes that for George Town to thrive as a vibrant heritage city, it is imperative that quality commercial developments that are within the guidelines of its world heritage status and that add value to the city, be encouraged.

Source: The Star 13 June 2009

Kuala Lumpur's Jalan Imbi set to change

The shops on Jalan Imbi, located in Kuala Lumpur's Golden Triangle, may soon pave way for new developments as land in the city centre becomes scarce. The Imbi stretch from the intersection of Jalan Bukit Bintang to Jalan Sultan Ismail started out with residential bungalows. From the 1950s, shops sprouted up as some of the homes were converted for commercial use.

Jalan Imbi has long been viewed as a possible extension of its more affluent cousin Jalan Bukit Bintang. Developers too have realised this and one developer, Asia Pacific Land Bhd (AP Land), is believed to have acquired over 25,000 sq ft since 2008 in their bid to accumulate landbank. According to AP Land, it is in the planning stages for future commercial developments on their Jln Imbi tracts.

Meanwhile, several existing shop owners too have been buying other shops here to expand their businesses or for investment purposes.

According to property transactions data provided by Burgess Rawson Sdn Bhd, the most recent transaction was recorded in January this year where a 2-storey pre-war shop was transacted for RM2 million. This unit sits on a site of over 1,700 sq ft. An owner is also believed to be asking RM10 million for his two-storey corner unit plus an adjoining lot.

Burgess Rawson's data also showed that the year 2007 saw a spike in the number of transactions on Jalan Imbi and some believe that to be caused by an announcement of the possible redevelopment of the Pasarakyat project nearby.

VPC Alliance (M) Sdn Bhd managing director James Wong told City & Country that land here is certainly valuable due to its strategic location.

"Although demand is high for the shops on Jalan Imbi, owners are not willing to let go as they realise the capital appreciation potential. As demand far exceeds supply, property values are bound to appreciate," he says. He also believes that the shops would eventually be amalgamated for redevelopment.

Principal of Ho Chin Soon Research Sdn Bhd, Ho Chin Soon, feels that future developments at Jalan Imbi would complement the businesses found nearby such as shopping centres and entertainment outlets. "However, the process of acquiring contiguous lots for redevelopment would be a long one, easily between five to 10 years," says Ho.

Source: the Edge Magazine 29 May 2009

Raffles KL to open doors in 2011

The luxury hotel brand Raffles will have its first hotel in Malaysia - the Raffles Kuala Lumpur - which is expected to open its doors in 2011.

The Raffles Kuala Lumpur will be at Pavilion Kuala Lumpur, along Jalan Bukit Bintang. Featuring 200 rooms and suites, each with a minimum of 50 sq m (about 538 sq ft), it will offer the most spacious rooms in the city.

Raffles Hotels & Resorts' signed an agreement on May 28 with Harmoni Perkasa Sdn Bhd, a unit of Urusharta Cemerlang Sdn Bhd, which owns Pavilion Kuala Lumpur.

"The name Raffles is associated with exceptional standards of service, hospitality and cuisine. We look forward to working with Raffles Hotels and Resorts to bring a luxurious lifestyle experience to Kuala Lumpur," said Harmoni Perkasa chairman Tan Sri Zainol Mahmood.

Owned by Fairmont Raffles Hotel International, Raffles Hotels & Resorts is expected to expand from seven Raffles hotels now to 23 hotels worldwide by 2012.

Chris Cahill, COO of Fairmont Raffles Hotel International said the group had always wanted to extend the Raffles portfolio to Kuala Lumpur.

"Now we have an ideal strategic partner and an unrivalled location," he adds. The group also owns Fairmont and Swissotel brands of hotels and resorts.

Raffles Hotels & Resorts' public relations and communications manager Vivian Koh said Raffles Kuala Lumpur will offer six restaurants and bars including a specialty restaurant, an all-day dining restaurant, a lobby lounge, a lobby bar, a pool bar and a Cafe Stelle located at the Couture Pavilion precinct. The cafe which will be a showcase of Raffles' service prior to the opening of the hotel, opened its doors today.

The Raffles Amrita Spa, a signature component of Raffles hotels and resorts worldwide, will feature 10 treatment rooms and an extensive range of massage and wellness treatments.

Source: The Edge Magazine 29 May 2009

Mulpha’s Leisure Farm, Putrajaya Holdings win Cityscape awards

SINGAPORE: Malaysian developers Leisure Farm Corporation Sdn Bhd and Putrajaya Holdings Sdn Bhd had won awards at the 2009 Cityscape Awards for Real Estate in Asia in Singapore on May 19.

Leisure Farm Corp, a unit of Mulpha International Bhd, won in the "Best Best Green Development (Built)" category with its Leisure Farm Resort project.

Leisure Farm is a residential and gated resort development spread over a total of 1,765 acres freehold land in Gelang Patah. This southern gateway to Johor from Singapore has a 36-hole golf course, clubhouse and equestrian facilities.

It has five precincts, comprising of villas with over 11 different architectural and interior design themes, built on bungalow lots measuring 3,000 sq ft to 18,000 sq ft.

This freehold property offers accessibility to Singapore, Johor Baru city and Sultan Ismail International Airport via the Second Link highway, JB Parkway and North-South Expressway.

Meanwhile, Putrajaya Holdings won the "Best Waterfront Development (Future)" category for its Putrajaya Waterfront Development.

The condominium project was designed by Studio Nicoletti Associati and Malaysian-based Hijjas Kasturi Associates. The main residential complex is conceived like a fleet of majestic Sail-Boats floating in the lagoon, with rib-like structural system forms the outer skin of the Sail-Boats

The buildings will be powered using alternative energy and they will emit about 50% less carbon dioxide than other residential projects.

There are 12 award categories in Cityscape Asia 2009, spanning from Corporate Social Responsibility, Green Development, Urban Design and Master Planning through to the best developments in Waterfront, Retail, Commercial, Residential, and Mixed Use Project (with a Built and Future award in each category).

This year, two new green awards were introduced. Singapore's upcoming Ocean Financial Centre by Keppel Land International Limited winning the "Best Green Development (Future)" award.

Singapore's luxury residential development, The Sail @ Marina Bay was also recognised as the "Best Waterfront Development (Built)", while CapitaLand's Muchuan Green Hope School was honoured with the "Best Corporate Social Responsibility Development".

For commercial/ retail development, Shanghai ICC was named the "Best Commercial/ Retail Development (Future)", while Elements by Hong Kong's MTR Corporation Limited won the "Best Commercial/ Retail Development (Built)".

India's Sis Danube and Golf Greens-Golf Condominiums and Mandeville Golf Villas walked away with "Best Residential Development (Built)" and "Best Residential Development (Future)" respectively.

Meanwhile The Central by Far East Organisation was awarded the "Best Mixed Used Development (Built)", while Aqua Pearl won the award for "Best Mixed Used Development (Future)".

Source: The Edge Magazine 27 May 2009

Penang Should Buck Up On Infrastructure: Lee Kuan Yew

The Penang Government should buck up on its infrastructure as it is inferior, in comparison to those in Ipoh and Seremban.This is the view of Singapore's Minister Mentor Lee Kuan Yew, said Chief Minister Lim Guan Eng.

"That was the reflection of the graceful decline that Penang has undergone over the last 18 years, and we need to improve in order to make up for the previous neglect," noted Lim.

He was speaking to reporters after receiving Lee, Singapore's first prime minister and the Father of Modern Singapore, and his delegation at his office in Komtar here Saturday.The minister mentor is on an eight-day visit to Malaysia.Lee's last visit to the state, better known as the 'Pearl Of the Orient', was in 1989, when Tun Dr Lim Chong Eu was chief minister.Lim said the state government was willing to cooperate with the federal government to improve the city's infrastructure, especially communication and transportation.

He said Lee had also stated that there would be an increase in the number of flights from Singapore to Penang next year."There would be about 12 flights daily and 84 flights weekly for the Singapore-Penang route next year," added the chief minister.On Penang and Singapore, Lim said they shared a commonality in terms of establishing a clean and good government."We may have different thoughts, views and perception but we certainly share the same ideology, in terms of establishing a good government with competency, accountability and transparency," he said.

Source: Bernama 13 June 2009

SunCity prefers Malaysia for listing

PETALING JAYA: Malaysia has become the preferred listing destination for Sunway City Bhd’s (SunCity) proposed real estate investment trust (REIT) although it is not ruling out other proposals for reverse takeovers in Singapore and Australia.

“The authorities in Malaysia are very proactive and doing their level best to get the more established companies to list in Malaysia,” SunCity executive director Datuk Jeffrey Ng told StarBiz yesterday.

Industry sources added that companies also had a more positive view following the revamp of main and second boards into a unified board, further improvement in processes and procedures as well as liberalisation of the 30% bumiputra quota in 27 service sub-sectors.

“Malaysia is definitely a preferred destination,” said Ng. “But we are not closing our doors to other opportunities.

If something very firm comes up, we will study it in the best interests of shareholders, one of which is GIC (Government of Singapore Investment Corp).’’ Early last year, SunCity was reported to be more keen on listing in Singapore where the tax regime is more attractive to REIT investors in relation to withholding tax.

However, the global financial crisis, which erupted in the later part of last year, has changed the scenario and investors turned risk averse.

In terms of mandate, this represents a fresh opportunity to select possibly new parties that can give the best terms. Under the old mandate, the global investment banks were Goldman Sachs and UBS while the local investment banks were CIMB Investment Bank and RHB Investment Bank.

“There could be new parties involving global and local investment banks,” said Ng. “Such a major fund-raising exercise will have to go into the global markets. At the end of the day, we will study what the most aggressive investment bankers have to offer.”

In the wake of early market recovery, SunCity is monitoring the indicators and will make every effort to get into the market as fast as possible. “We don’t want to miss out or be considered slow. We are watching the markets closely,” he said. “If there is a window of opportunity that fits our criteria, we will definitely implement (the listing).”

Among the factors involved are market timing and the need to balance yields in the REIT market and bond yields, which represent the cost of funds and is an indicator used in the calculation of REIT pricing. Investors would also weigh their options in the REIT and bond markets.

StarBiz recently reported that backed by assets valued at RM3.7bil, the proposed REIT listing is possibly the largest in the country. According to the report, about 75% of SunCity’s operating profit of RM175mil for the first half ended Dec 31, 2008, was from its property investment assets and SunCity was expected to receive total rental income of RM285mil this calendar year of which 70% would be from Sunway Pyramid Shopping Mall.

AmResearch managing director/regional head Benny Chew suggested that SunCity list its REIT at a point when property stocks were trading close to their net asset value.
“It will then be seen as a good alternative investment,’’ said Chew, who also expressed concern over the inclusion of diversified assets into the REIT as he considered suburban retail to be the main growth driver. “In general, they have to convince investors on their strategies to grow the fee income.’’

However, other analysts pointed out that SunCity’s proposed REIT would have assets with synergistic benefits in the integrated resort city, education, medical and office, retail, hotel and leisure theme park.

“Next year should be more exciting for the listing,” said a senior analyst with a foreign research house. “It will be cheaper as currently REIT yields are high on worries that rentals might weaken.”

ECM Libra Research acting research head Ching Weng Jin agreed it was time to dust the proposals previously kept on the shelf as market sentiment had changed compared with six months ago. “The properties are well-managed and rental yields are good. It is also more encouraging to list here in view of liberalisation of rules.”

Source: Star 11 June 2009

KYM soars on land sale pact

KYM Holdings Bhd, a Malaysian property investor, soared in Kuala Lumpur trading after agreeing to sell land to Vale SA, the world’s biggest iron ore producer.The stock leapt 55 per cent to 79 sen at 12.30pm, set for the highest close in almost two years.Vale agreed to buy land in Perak, Malaysia, for RM101.9 million (US$29 million) and also has an option to buy additional plots in the north Malaysian state for RM93.7 million, KYM said in a statement yesterday after the market closed.

Source: Bloomberg 13 June 2009

Foreigners eye S'pore homes

Most are regional buyers hunting for bargain-price units below $1m in resale market

Unlike the rising market in 2004 and 2005 when foreigners bought mostly new launches, buyers now are largely going for resale homes.

FOREIGN buyers are back to snap up homes here after bolting for the exits during the financial turmoil late last year.

The number of foreign private home purchases in April and May is already up on the first quarter but no one is claiming a significant turnaround is under way, although sales numbers hint at 'green shoots'.

The mix of buyers has also changed from the boom of 2007 and early last year. Then, Koreans, Americans, Russians, and people from the Middle East and elsewhere joined regional buyers to invest at the high end of the market, often with the aim of flipping the property to other investors.

Now buyers from Malaysia, Indonesia and China are dominating, and they are mostly picking up bargain-price units under $1 million for their own use or investment, according to property consultant Jones Lang LaSalle. Its analysis of non-landed private home caveats lodged in April and May found that foreigners bought 202 properties, up 15 per cent from the 175 bought in the first quarter and the 156 deals done in the last three months of last year.

They are taking advantage of bargains in the weak market and low interest rates, said Jones Lang LaSalle associate director of research Desmond Sim.

In the first five months this year, about 57 per cent of the foreign buyer caveats were in the $500,000 to $1 million price category. This is slightly more than for the same periods in 2004 and 2005.

Unlike the rising market in 2004 and 2005 when foreigners bought mostly new launches, buyers now are largely going for resale homes.

'During that period (2004-2005), Singapore prime residential prices were in the region of US$7,745 (S$11,200) per sq m compared to our 'cousin' Hong Kong at US$20,500 per sq m,' said Mr Sim.

Most foreign buyers then came from within Asia and saw cheaper homes here as good investments, he said. Many at the time made use of the deferred payment scheme to earn quick capital gains through flipping the units in the sub-sale market, he added.

Resale homes became popular in 2006 and 2007 as more foreigners - who came mainly as the banking and financial industries grew - chose to buy instead of paying sky-high rents.

Source: Straits Times 12 June 2009

Malaysia: Increase in stamp duty to hit property buyers

KUALA LUMPUR: Those buying and renovating their properties will have to fork out more following an increase in stamp duties.

Master Builders Association Malaysia (MBAM) president Ng Kee Leen said the extra costs incurred would eventually be passed down to the end-consumers.

The amendment of the First Schedule of the Stamp Act 1949 came into effect on Jan 1 this year, where it stated that all “bonds, covenant, loan, services, equipment lease agreement of any kind whatsover” are chargeable with duty at the rate of RM5 for every RM1,000, or part thereof - which is effectively 0.5% of the contract value.

Prior to the amendment, the stamp duty chargeable on a normal service agreement without security was fixed at RM10.

“With the amendment, a RM10mil construction contract will now attract an ad valorem duty of RM50,000, while previously, it was only a nominal duty of RM10 per document regardless of the contract amount,” he said.

He called on the Government to revert to the previous system, and said he would raise this matter in a dialogue with the Finance Ministry on June 11.

“Regardless of whether the contracts are Government or private, the ultimate cost is passed back to the Government and the people,” he told a press conference.

Ng said that although the amendment came into effect in January, contractors were paying the nominal RM10 for the first three months of the year as the government agencies took some time to switch to the new system.

“But since then, many had no choice but to pay according to the new amount. This creates a cash flow problem for our members. If they don’t pay, then they cannot go ahead with their projects,” he said.

MBAM honorary tax adviser Yee Wing Peng said in addition to the increased stamping fee, members were already paying a Construction Industry Development Board (CIDB) levy of 0.125% on a construction contract, and 5% service tax on professional services such as project management, architectural, surveyance and engineering consultancy.

“The construction industry is multi-tiered, meaning there will be multiple levels of sub-contracting works.

The combined effect of stamping all agreements including sub-contracting and outsourcing at 0.5% of the contract value is exponential,” he said.

Source: The Star 5 June 2009

Total demolition of old Jaya supermart depends on MIPW

Work to demolish the remaining structure of the former Jaya Supermarket building can only start after the authorities have been assured that the method to be employed meets Malaysian Institute of Public Works standards.

Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim said the method should also satisfy professional standards set by the Petaling Jaya City Council.

He said the state government had directed the MBPJ to get Jaya Section Fourteen Sdn Bhd, the owner of the building, and its consultants to provide details of the method of demolition.

He told a press conference after the weekly state executive council meeting here yesterday that the stop-work order would only be lifted if the criteria set by the state government were met.

Abdul Khalid said Petaling Jaya Mayor Datuk Mohamad Roslan Sakiman had briefed the meeting that the owner of the building had applied to have the stop-work order lifted.
The remaining structure includes a 19-metre structure that is threatening the safety of nearby homes..

"While the state is aware that the application is to ensure public safety, it cannot lift the order without proper planning,’ he said.

He said the state government hoped to make a decision as soon as possible so that evicted residents could return home.

He said the state government had been informed that all local councils in the state were checking their records to identify if the six companies involved in the Jaya Supermarket project had other development projects elsewhere in the state. 

"Any ongoing projects involving any of these companies will be reassesed and monitored closely to ensure that all safety requirements are followed," he said.

The companies, blacklisted and banned from future projects in Selangor, are Jaya Section Fourteen Sdn Bhd, DP Architects Sdn Bhd, Meinhardht (M) Sdn Bhd. DLS Management, Pembinaan CW Yap Sdn Bhd and Jurutera Perunding Sdn Bhd. 

The former Jaya Supermarket was about to be demolished when it collapsed on May 28, killing seven workers.

Source: New Straits Times 10 june 2009

Robert Kuok at top of Malaysia’s 40 richest

By now it is no surprise that the rich around the world are getting poorer. Malaysia is no exception: Its 40 wealthiest are worth US$36 billion (RM126 billion), down from US$46 billion a year ago. That loss is largely in line with the 21 per cent drop in the Kuala Lumpur Composite Index and not too bad considering the fact that the ringgit has lost 10 per cent against the US dollar, the currency in which net worths are measured.

Malaysia's billionaires continue to dominate. The country's two richest people, Robert Kuok and Ananda Krishnan, both again No. 1 and No. 2, are worth a combined US$16 billion and account for 44 per cent of the top 40's wealth. They are also the two richest people in Southeast Asia. The country's nine billionaires are worth US$30 billion, or 84 per cent of the total, the biggest wealth disparity among any of Forbes Asia's other rich lists. Vincent Tan is the only Malaysian to have dropped out of the billionaire ranks in the past 12 months as share prices in his companies declined.

There are signs of recovery. The nation's stock market index has been climbing in the past two months. Kuok's fortune is up US$2 billion since March, when he appeared on the world's billionaires list. Five other billionaires have posted a combined US$800 million in gains since then. Kua Sian Kooi grabbed the last spot on the list as a result of a big rally in his insurance firm Kurnia Asia's stock, up 50 per cent since the start of April.

Three newcomers debut, thanks to the discovery of better or new information. They include software executive Goh Peng Ooi, IOI board member Chan Fong Ann and gaming tycoon Chen Lip Keong, who operates a casino in Cambodia and a tourism business in Malaysia.

Four people have returned to the ranks after an absence of a year or more. Among them are Syed Mohd Yusof Syed Nasir and Tan Teong Hean, who cashed out of Southern Bank several years ago and are now making new investments.

Among those who dropped off the list are several tycoons who barely missed the cut, including CIMB Bank's Nazir Razak and OSK finance group's Ong Leong Huat. Malaysian citizen Ong Beng Seng, who has lived in Singapore for decades, is wealthy enough to qualify but stands to be listed among that nation's 40 richest in September, largely due to the fact that he and his wife, Christina, who is a citizen of Singapore, share a number of holdings.

1 Robert Kuok US$9 billion diversified 85. Married, 8 children

Onetime rice, sugar trader heads multinational Kuok Group. Biggest source of wealth is stake in Wilmar International, palm oil outfit run by his nephew. Other big holdings are Hong Kong real estate group Kerry Properties, hotel operator Shangri-La Asia. Has an interest in South China Morning Post publisher. With Filipino tycoon Eduardo Cojuangco Jr's San Miguel, plans to spend up to US$1 billion to develop public land for farming to boost agricultural sector.

2 Ananda KrishnanUS$7 billion telecom 71. Married, 3 children

Runs Maxis Communications, Malaysia's largest cell phone service provider, with more than 10 million subscribers; took it private in June 2007 in US$12 billion deal, then sold 25 per cent to Saudi Telecom the same month. Last year sold Excel, the exhibition venue in London's Docklands, for reported US$230 million and bought 20 per cent stake in British regional newspaper chain Johnston Press, luckily a small holding, as stock has dropped more than 80 per cent since as it struggles with debt. Modern art collector, has homes in Kuala Lumpur, London and south of France; has a son who is a monk living in the forest.

3 Lee Shin Cheng US$3.2 billion palm oil 70. Married, 6 children

Former plantation field supervisor heads IOI Group, one of world's leading operators of palm oil plantations, refineries. Took its IOI Properties private in April. IOI's stock has doubled since November but still down a third since last year amid falling commodity prices.

4 Lee Kim Hua US$2.5 billion gaming 80. Widowed, 6 children

Widow of Lim Goh Tong, who transformed a jungle on outskirts of Kuala Lumpur into one of world's most successful casino resorts. Genting Group now run by her son Lim Kok Thay (No. 14) but inheritance held in trust to benefit Lee, her children and grandchildren.

5 Teh Hong Piow US$2.4 billion banking 79. Married, 4 children

Former bank clerk opened first bank in 1966. Now his Public Bank has 14,000 employees; branches throughout Malaysia, also in Cambodia, Laos, Sri Lanka, Hong Kong, China. Set up Public Islamic Bank as a subsidiary in November 2008. Donates to medical institutions and to the Malaysian Nature Society to fund planting of trees.

6 Quek Leng Chan US$2.3 billion diversified 68. Married, 3 children

Heads conglomerate Hong Leong GroupMalaysia, with interests in finance, entertainment, real estate. Bought 5 per cent stake in Mokhzani Mahathir's (No. 16) Kencana Petroleum and 3 per cent in Intercontinental Hotels Group last year. Family's GuocoLand is planning retail, residential, office projects in China. Inherited business from his father, one of 3 brothers to start a banking group in 1920s.

7 Yeoh Tiong Lay US$1.8 billion diversified 79. Married, 7 children

Founded YTL Corp, one of Malaysia's largest conglomerates, run by son Francis.

8 Syed Mokhtar Al Bukhary US$1.1 billion diversified 57. Married, 5 children

Former rice trader controls Malaysia Mining Corp. (MMC); has stakes in Malaysia's Johor Port, independent power producer Malakoff, natural gas distributor Gas Malaysia. Inking projects in Saudi Arabia, Jordan. Lost billionaire status earlier this year but back up top thanks to rebound of MMC stock. His Albukhary Foundation offers scholarships to students from poor countries to pursue college education in Malaysia.

9 Tiong Hiew King US$1 billion timber 74. Married, 4 children

Dubbed by some as Asia's Rupert Murdoch — his Chinese Media International has 5 newspapers, 30 magazines in Southeast Asia, Hong Kong, mainland China, Taiwan, North America. His Rimbunan Hijau, which means "forever green," has palm oil, timber assets. Big player in New Zealand, where he owns timber, property and fish farming companies; also in Papua New Guinea, where he has an English-language newspaper, hypermarkets and controversial logging operations.

10 Vincent Tan US$750 million diversified 57. Married, 11 children

Has run Berjaya, which means "success" in Malay, since 1984; interests in hotels, lotteries, real estate, finance. Operates 7-Eleven, Wendy's, Starbucks, Borders in Malaysia. Opened first Krispy Kreme store there in April. Also operates water and sewage treatment and sanitary landfills in Malaysia, Indonesia and China. Selling stake in moneylosing US eatery Roadhouse Grill; setting up a school in China.

11 Azman Hashim US$470 million finance 69. Married, 5 children

Longtime banking executive has been executive chairman of Amcorp since 1993. Malaysian financial services group. Opened Brunei operations in May. Chairman of the Malaysian Investment Banking Association. Loves scuba diving, painting and fast cars. A singer, has also recorded numerous albums.

12 William H.J. Cheng US$390 million retail 66. Married, 3 children

Runs the Lion Group, which has interests in plantations, steel, property. Though nicknamed "Steel King," biggest source of wealth is his indirect stake in Chinese retailer Parkson Retail, which he chairs. Also known as Cheng Heng Jem.

13 G. Gnanalingam US$260 million ports 64. Married, 3 children

Former tobacco and advertising executive cofounded, heads Westports Malaysia, one of nation's biggest ports. Private company valuation up because of better information from outside analysts; expects volume to contract for first time since it started as a container business in 1996. Has stake in transit hub KL Sentral.

14 Lim Kok Thay US$225 million gaming 57. Married, 3 children

Son of late Lim Goh Tong, has run Genting since 2003. Building gaming resort on Singapore's Sentosa Island, slated to open in 2010. His Star Cruises is working with Filipino tycoon Andrew Tan's Alliance Global to develop resort complex in Manila Bay.

15 Anthony Fernandes US$220 million airlines 45. Married, 2 children

Perennially optimistic travel tycoon on move during recession. His AirAsia, region's largest budget airline, adding flights to Bali, Taipei; secured debt financing for 15 new planes. Stock down just 2 per cent in past year. Its two-year-old long-haul discount airline AirAsia X began flying from Kuala Lumpur to London in March; Richard Branson is an investor.

16 Mokhzani Mahathir US$215 million oil services 48. Married, 5 children

Son of former PM Mahathir Mohamad runs petroleum company Kencana; former chairman switched roles and was redesignated chief executive in September. Investors include Quek Leng Chan (No. 6). Recently became chairman of fibre optic cable outfit Opcom Holdings, replacing his brother, its founder, who was named deputy international trade and industry minister. Also Malaysian Grand Prix chief, authorised Porsche dealer.

17 Lee Oi Hian US$210 million diversified 58. Married, 4 children

Chief executive of Kuala Lumpur Kepong, involved in plantation, property, retail. Bought palm oil business, Ladang Perbadanan-Fima last year; disposed of stake in Barry Callebaut Malaysia. Its Crabtree & Evelyn brand being hit by economic downturn. Also chairs Malaysia Palm Oil Council, chemicals company Batu Kawan; serves as director of British chemicals maker Yule Catto & Co Plc.

18 Chan Fong Ann US$209 million palm oil 78. Married

Joined board of Lee Shin Cheng's palm oil group, IOI 1985; remains a non-executive director and one of its biggest individual shareholders with a nearly 3 per cent stake.

19 Kamarudin Meranun US$205 million airlines 48. Married, 5 children

Deputy chief executive of AirAsia, which he cofounded with Anthony Fernandes (No. 15). Also close partner with Tony in several other businesses including AirAsia X, in which he owns a bigger stake; Tune Hotels, which has 5 locations and is opening 7 more; and Tune Money.

20 Chong Chook Yew US$200 million real estate 87. Widowed, 4 children

Columbia University grad has run family's Selangor Properties since 2000. Stock down just 5 per cent in past year, buoyed by successful housing project in Claremont, Australia.

21 Chen Lip Keong US$195 million gaming 61.

Founded NagaCorp in 1995, the year he obtained 70-year gaming licence in Cambodia; eventually built country's largest gaming resort, NagaWorld. Listed in Hong Kong in 2006. Serves as economic advisor to Cambodia's prime minister. Controlling shareholder and president of Malaysia tourism company, Karambunai. Trained medical doctor, headed Composite Technology Research, aerospace outfit owned by Malaysian government, for 7 years.

22 Lee Swee Eng US$190 million oil services 53. Married

Runs KNM Group, which provides services and equipment to oil and gas industry; stock dropped by more than half in past year. In September announced joint venture with France's Prosernat to form KPN Gas Technology. Fortune includes shares belonging to wife, Gan Siew Liat, head of human resources.

23 Jeffrey Cheah US$185 million real estate 64. Married, 3 children

Accountant started local tin mining outfit in 1974. Became Sunway Group, with interests in property, infrastructure, education, hotel and health care. Bulk of fortune held in property arm Sunway City, which is expanding in China and India.

24 Lim Wee Chai US$180 million rubber gloves 51. Married, 2 children

With his wife, spent US$180,000 in savings in 1991 to start a business trading rubber gloves. Later moved into manufacturing. Now his Top Glove is one of world's largest producers, with 850 customers in 180 countries; claims to have 24 per cent global market share. Apparently benefiting from ageing population, medical threats like swine flu. Shares up 12 per cent in past year, more than 50 per cent year-to-date; fortune down because of lower value of personal property.

25 Ahmayuddin Ahmad US$175 million port 52. Married, 4 children

Board member of both transit hub KL Sentral and Westports, the port he cofounded with G. Gnanalingam (No. 13) and which counts Li Ka-shing's Hutchison Whampoa as an investor.

26 Lee Hau Hian US$174 million diversified 55. Married, 1 child

Son of late rubber baron Lee Loy Seng is managing director of Batu Kawan and board member of KLK, which brother Lee Oi Hian runs. Batu Kawan's stock has rebounded 30 per cent since October low, but still down for past year.

27 Lau Cho Kun US$165 million diversified 73. Married

Largest shareholder in tilemaker Malaysian Mosaics, bought out its stake in Hap Seng, with interests in plantations, property, credit finance. Hap Seng's auto division operates Mercedes-Benz dealerships that supply Samling Group, run by his son-in-law, with logging trucks and transportation vehicles. Has no position at either company.

28 Vinod Sekhar US$150 million rubber 41. Married, 2 children

Late father invented process to devulcanise used tyres so they can be recycled. Vinod has been working to commercialise it. Timberland is first footwear manufacturer to incorporate Green Rubber, to be used in two of the company's fall 2009 collections. Reportedly being tested by several tyre companies. Minor investors include Mel Gibson, Forbes family members and Bruce Willis, who sued last year for return of funds after company didn't go public but later settled. Valuation down because of market conditions and few exit strategies for small tech outfits.

29 Liew Kee Sin US$140 million real estate 50. Married, 4 children

Former banker joined real estate firm SP Setia in 1996 as a director and is now group's managing director. With partners, developing US$620 million urban project in Vietnam.

30 Tiah Thee Kian US$135 million real estate 61. Married, 5 children

Cofounder of TA Enterprise, with property, financial interests. Owns Radisson in Sydney; announced purchase of the Westin Melbourne. Returned to board in 2007 after 5-year ban tied to conviction for reporting irregularities on Malaysia bourse. Wife Tan Kuay Fong filled as chairman during interim and remains chief executive.

31 Rozali Ismail US$130 million infrastructure 53.

Got start in law, then Islamic banking. Now executive chairman of water treatment and distribution company Puncak Niaga. Initially rejected Selangor government's offer to buy out some of its water concessions but is still negotiating. Shareholder in TRIplc Bhd. and WWE Holdings; trading in both suspended because of profitability issues.

32 Lin Yun Ling US$115 million infrastructure 54. Married, 2 children

Managing director of infrastructure group Gamuda, which has investments in such places as Indochina, South Asia and the Middle East. Sold part of his stake last year.

33 Yaw Teck Seng US$113 million forestry 71. Married

Founder of Samling Group, one of world's biggest forestry companies. Depressed plywood prices and lacklustre housing demand have led to falling profits. Stock dropped nearly two-thirds in past year; down three-fourths since its public offering two years ago. Son Yaw Chee Ming, who runs the firm, is worth US$85 million, just missing cut.

34 Goh Peng Ooi US$112 million software 53.

Electronics engineer worked at IBM Malaysia for 9 years. In 1989 founded Silverlake Axis, which provides banking and financial services software to companies across the globe. Educated in Tokyo.

35 Eleena Azlan Shah US$110 million infrastructure 49. Married, 2 children

Trained as a lawyer in Britain. Set up her own firm in Malaysia in 1987. Her wealth comes from her being the largest individual shareholder in infrastructure firm Gamuda.

36 David Law Tien Seng US$105 million mining

Cashed out his stake in Australian iron ore mining company Midwest when China's Sinosteel took company private in September. Apparently involved in philanthropy projects in Malaysia.

37 Syed Mohd Yusof Syed Nasir US$100 million banking 61. Married, 3 children

Former chairman of Southern Bank, sold out in one of nation's biggest deals of 2006. Since then has bought shares in pipemaker YLI, which have since dropped. Has had better luck with investment bank K&N Kenanga, whose shares are up 63 per cent. Partnering with Ong Beng Seng to develop first Four Seasons hotel in Kuala Lumpur.

38 Hamdan Mohamad US$98 million infrastructure 53. Married, 2 children

Australian-educated engineer controls infrastructure conglomerate Ranhill. Took its Ranhill Utilities private last year in a US$290 million deal; recently sold nearly 5 per cent of Ranhill to an undisclosed buyer. Avid polo player.

39 Tan Teong Hean US$95 million banking 65. Married, 3 children

Chief executive director of Southern Bank for 23 years until it was bought out in 2006. Former MasterCard board member now chairs Singaporean smart card outfit Cassis International. Also chairman of Southern Capital Management and member of the Board of Trustees of the Malaysian Institute of Economic Research.

40 Kua Sian Kooi US$90 million insurance 56. Married, 4 children

Executive chairman of insurance firm Kurnia Asia, which claims to have 6,500 agents, 3.5 million policyholders in Malaysia. Leading provider of car insurance, looking to diversify. Stock up 50 per cent since start of April.

Methodology

The list was compiled using shareholder and financial information provided by individuals themselves, stock exchanges, public documents and analysts. For people with publicly traded documents, net worths were calculated using stock prices and exchange rates from May 15. Privately held fortunes were calculated using database company BRIS and other sources to estimate what companies and assets would be worth if public. 

Source: Forbes 3 June 2009