ISSUE 7, MAY/JUN 2013

PROPERTY MANAGEMENT,INSIDE OUT

H E A L T H C A R E I N M A L A Y S I A

RINGGIT LOAN FOROVERSEAS PROPERTIES

ART COLLECTING - BUYING ADVICE FOR COLLECTORS

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Healthcare in Malaysia is under the watch of government’s Ministry of Health. There are two types of healthcare system; government-run universal healthcare system and a co-existing private healthcare system. Currently the dependency is highly on government healthcare which provides about 74% of total hospital beds in the country and 68% of doctors in government hospitals and clinics. Infant mortality rate – a standard in determining the overall efficiency of healthcare – in 2010 was 5 (compared to 15 in 1990), while life expectancy at birth in 2009 was 73 years (compare to 71 in 1990) (World Health Statistics 2012). The levels achieved today in Malaysia are close to that of most advanced countries. The society’s demand for improved healthcare services plays an important role in the expansion and development of public healthcare in Malaysia. About 5% or RM19.3billion of the government social sector development budget was allocated for public healthcare - an increase of more than 47% or more than RM2 billion over the previous figure. This provision is anticipated to provide relief in many areas including the refurbishment of existing hospitals, building and equipping new hospitals, expansion of the number of polyclinics, and improvements in the training and expansion of telehealth.

According to a recent report by Frost & Sullivan, the Asia-Pacific

healthcare market was worth USD369.9 billion in 2012 and is

expected to reach USD752 billion in 2018. In Malaysia, the

healthcare sector is expected to grow at an average rate of 8.4%

over the next six years, from a value of USD2.25 billion in 2012 to

USD3.65 billion in 2018.

It is noted nonetheless that per capita expenditure on total healthcare for Malaysia is low - Malaysia spends USD316 per capita on total healthcare compared to other Asia Pacific countries like Singapore (USD1,531 per capita), Japan (USD3,754 per capita) and Korea (USD1,184 per capita). This amount only represents a fraction of per capita expenditure spent by countries in Europe (between USD4,000 to USD8,200 per capita in Europe) including England and also US (USD7,960 per capita) and Australia (USD 3,945 per capita) . In order to maintain the staffing in public hospitals the Malaysian healthcare system requires doctors to perform a compulsory three years of service. Prior to that doctors are required to perform four years including two years of houseman ship and two years of government service in public hospitals to ensure adequate coverage of medical needs for the general population. Foreign doctors with specialist background are encouraged to apply to work in local hospitals. However, there is still a significant shortage of medical workforce especially highly trained specialists;

therefore, certain medical care treatments are only available in larger cities. Corresponding with the rising population and increasing number of foreigners in Malaysia, medical care has been one of the more focused sectors. Medical tourism has now been offered by the government to attract more foreign investors into the country. The government is also trying to promote Malaysia as a healthcare destination, regionally and internationally.

HEALTHCARE IN MALAYSIA By Fahariah Abdul Wahab, Henry Butcher Research

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Malaysia’s Healthcare Indicators

Number of Registered Medical Personnel In 2006, there were 21,937 registered doctors throughout the country. In 2010, the number of doctors increased to 32,979 - a 50% increase within 5 years. It is noteworthy to mention that from 2006 to 2010, more than 80% of the total registered doctors are based in Peninsular Malaysia (Table 1). The number of nurses in 2006 was 34,598. In 2010, an increment of 26% in the number of registered nurses brought the number to 43,439 nurses in the country (Table 1). Based on Table 2, the density of doctors per 10,000 population has increased over 5 years. There was an increase of 30% in density of doctors over 5 years from 8.99 in 2006 to 11.66 in 2010. This however is short of the median given by WHO as per the survey conducted on WHO member states. The median for doctors per 10,000 population is 16. Based on this median Malaysia should have 44,800 (based on 2010 population) giving a shortfall of 11,800 doctors.

Principal Causes of Hospitalization in Government Hospitals In 2009, ‘normal delivery’ recorded the highest number with 281,611 cases (13% from total causes) followed by ‘complication of pregnancy’ at 280,408 cases (13% from total causes). In 2010, ‘normal delivery’ recorded a minimal decrease of 5% to 266,689 whereas ‘complication of pregnancy’ posted a marginal increase of 1% to 282,789 cases. ‘Other’ causes accounted for an average of 27% from the total causes of hospitalization in Malaysia in both 2009 and 2010 (Table 3).

Table 1: Registered doctors and nurses, Malaysia 2006-2010.

Year Registered doctor Registered nurse

Malaysia Peninsular Malaysia Malaysia

2006

2007

2008

2009

2010

21,937

23,738

25,102

30,536

32,979

19,596 (89% of total)

21,330 (90% of total)

20,582 (82% of total)

24,539 (80% of total)

26,550 (81% of total)

34,598

36,150

38,507

40,563

43,439

Source: Malaysia 2011 - Statistics Yearbook Table 2: Density of doctors per 10,000 population, Malaysia 2006-2010.

Year Doctor Population Density

per 10,000 population

2006

2007

2008

2009

2010

21,937

23,738

25,102

30,536

32,979

24,385,860

24,821,290

25,274,130

25,715,820

28,274,730

8.99

9.55

9.93

11.87

11.66

Source: World Health Statistics, WHO Table 3: Principal causes of hospitalisation, Malaysia 2009-2010.

Principal causes 2009 2010

Normal delivery 281,611 266,689

Complication of pregnancy 280,408 282,789

Diseases of the respiratory system 200,718 203,449

Accident 171,735 169,295

Certain conditions originating in the

perinatal period 149,994 156,463

Diseases of the circulatory system 147,843 146,433

Disease of the digestive system 110,690 108,028

Signs, symptoms and ill-defined

conditions 74,957 63,298

Disease of the urinary system 73,258 75,001

Malignant neoplasm 64,578 62,120

Others 559,825 595,253

Total 2,115,617 2,128,818

Source: Malaysia 2011 - Statistics Yearbook

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Highest Causes of Death in Malaysia Highest number of deaths in 2011 was caused by diseases of the circulatory system with 25.64% followed by respiratory diseases with 19.48% from the total cases of death. The lowest cause of death is caused by the nervous system which only accounts for 1.77% from the total deaths in 2011 (Table 4).

Malaysia’s Healthcare Facilities Healthcare under the government consists of hospitals, clinics, health clinics, dental clinics, and 1Malaysia clinics. According to the statistics given by the Ministry of Health in 2012, there are 138 government hospitals with 38,394 beds (74% of total beds) within the country (Table 5). This number comprises of Hospitals and Special Medical Institutions operated by the government. There are 220 private hospitals with 13,568 beds (26% of total beds) in Malaysia, as recorded in 2012 (Table 6). Cumulatively, there are 51,962 beds available in the government and private hospitals in Malaysia. Other private healthcare providers such as maternity homes, nursing homes, haemodialysis centres, and others provide admissions for patients as well.

Admission and Outpatient Attendances in 2011 In 2011, there were 2.1 million admissions and 18.3 million outpatients in government hospitals. Over 28 million outpatients visited the Public Health Facilities in the same year. Private hospitals had 904,816 admission and 3.5 million outpatient visits in 2011 (Table 7).

Table 4: Causes of death, Malaysia 2011.

Causes Cases

1 Diseases of the circulatory system 25.64%

2 Diseases of the respiratory system 19.48%

3 Certain infectious and parasitic diseases 17.02%

4 Neoplasms 11.12%

5 Diseases of the digestive system 5.18%

6 Injury, poisoning and certain other consequences of

external causes

5.03%

7 Diseases of the genitourinary system 4.40%

8 Certain conditions originating in the perinatal period 3.74%

9 Endocrine, nutritional & metabolic diseases 1.88%

10 Diseases of the nervous system 1.77%

Source: Ministry of Health Malaysia 2012 Table 5: Government healthcare facilities, updated 2012.

Ministry of Health No. Beds (Official)

Hospitals 138 38,394

Hospitals

Special medical institutions

132

6

33,812

4,582

Dental clinics

Dental clinics

Mobile dental clinics

51

27

459

27

Health clinics

Health clinics

Community clinics

Mobile health clinics (teams)

Flying doctors services (teams)

985

1,864

-

5

-

-

184

12

1Malaysia clinics

1Malaysia health clinics

1Malaysia mobile clinics (bus)

1Malaysia mobile clinics (boat)

109

5

1

-

8

2

Non Ministry of Health

Hospitals 8 3,322

Source: Ministry of Health Malaysia 2012

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Table 6: Private healthcare facilities, updated 2012.

Private healthcare No. Beds

(official)

Licensed

Hospitals 220 13,568

Maternity homes 25 105

Nursing homes 14 362

Hospice 4 38

Ambulatory care

centre

46 125

Blood bank 5 25

Haemodialysis centre 344 3,113

Community mental

health centre

1 9

Combined facilities 1 14

Registered

Medical clinics 6,589

Dental clinics 1,576

Source: Ministry of Health Malaysia 2012

Table 7: Admission and outpatient attendance in government and private hospitals, updated 2012.

Government

hospitals

(MOH)

Private

hospitals

Admission 904,816

Hospitals 2,139,392

Special medical

institutions

7,570

Outpatient attendances 3,505,591

Hospitals 18,328,343

Special medical

institutions

117,960

Public health

facilities

28,656,444

Non Ministry of Health

Admission 134,118

Outpatient

attendances

1,909,163

Source: Ministry of Health Malaysia 2012

Malaysia, Singapore and Thailand Healthcare Comparison According to World Health Organization, from 2005 to 2011 the ratio of hospital beds per 10,000 population in Malaysia is 18 beds, whilst psychiatric beds is at 1.8 beds per 10,000 people. The median according to World Health Organisation is 26 hospital beds per 10,000 population, which means Malaysia is under providing hospital beds. Based on this median Malaysia needs to have 72,800 beds (assuming 74% under government healthcare and 26% are private healthcare providers: private should provide 18,900 beds). Private sectors are currently having a shortfall of 5,400 beds (based on 18,900 less 13,500 private beds). From 2005 to 2011, Malaysia had the lowest ratio of hospital beds per 10,000 population compared to its neighbouring countries, Singapore and Thailand (Table 8). Table 8: Ratio of hospital beds per 10,000 population, 2005-2011

Country Hospital beds per 10,000 population

(2005-2011)

Psychiatric beds per 10,000 population

(2005-2011)

Malaysia 18 1.8

Singapore 31 4.2

Thailand 21 1.3

Republic of Korea 103 19.1

Source: World Health Statistics 2012 by WHO

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Source: World Health Statistics 2012 by WHO

Population recorded in 2011 by World Bank shows that Malaysia had a total population of 28.8 million, whereas Singapore was at 5.18 million, and Thailand, nearly 70 million. The number of hospital beds for each country in 2011 was 51,946 in Malaysia, 16,069 beds in Singapore, and in Thailand there were 145,988 beds (Table 9). Table 9: Total population and number of hospital beds, 2011

Country Population (2011) Hospital Beds (2011)

Malaysia 28,859,154 51,946

Singapore 5,183,700 16,069

Thailand 69,518,555 145,988

Republic of Korea 49,779,900 512,733

Source: World Bank and World Health Statistics 2012

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Health Expenditures in Malaysia, Singapore and Thailand In 2000 health expenditure over GDP in Malaysia, Singapore and Thailand’s were 3.1%, 2.4% and 3.4% respectively (Table 10). Over 10 years, there were marginal increase in percentages in the health expenditure over GDP for all three countries; 4.6% for Malaysia, 4.1% for Singapore, and 4.2% for Thailand. This shows that over the years, healthcare expenditures increases as population rises. Government support in the healthcare sector is vital in order to sustain the quality of healthcare of the country’s population. Ministry of Health is responsible for all matters pertaining to healthcare at society level and in private sectors. In Malaysia, government expenditure on health in 2000 was 59% of total expenditure on health (Table 11). Whilst in Singapore and Thailand, government expenditure on health was 51.4% and 56.1% respectively in 2000. In 2009, Malaysia and Singapore expenditure on health dropped to 55.7% and 36.1%. However, Thailand showed an increase in expenditures on health of nearly 20% which brought up to 74.6% in 2009. The private sector helps to boost a country’s healthcare system by having private healthcare institutions and other private healthcare systems to cater to the country’s rising population, hence benefiting the growth of the country’s economy and socio economy. Singapore’s private expenditure was 48.6% in 2000 and 63.9% in 2009. Singapore showed a significant increase in expenditures in the private healthcare system compared to Malaysia and Thailand, whereby both were 41% and 43.9% in 2000 whilst in 2009 they were 44.3% and 25.4% respectively.

Table 10: Expenditures in the health sector, 2000-2009

Total expenditure on health as % of gross domestic product

2000 2009

Malaysia 3.1 4.6

Singapore 2.4 4.1

Thailand 3.4 4.2

Source: World Health Statistics 2012 by WHO Table 11: Government expenditure on health, 2000-2009

General government expenditure on health

as % of total expenditure on health

2000 2009

Malaysia 59.0 55.7

Singapore 51.4 36.1

Thailand 56.1 74.6

Source: World Health Statistics 2012 by WHO

Malaysia’s Healthcare against Other Richer Countries Malaysia has the lowest health expenditure per capita compared to other western countries in the world. In 2009, the total health expenditure per capita for Malaysia was only USD316 compared to its neighbouring country, Singapore which recorded USD1,531. However, Luxemburg recorded the highest in the world with USD8,262 followed by USA with USD7,960 and thirdly came Norway at USD7,533. Developed countries spend between USD4,000 to USD8,200 per capita on total healthcare expenditure. This gives opportunity for improvements and investments for Malaysia since the gap is wide compared to developed nations. Table 13: Total health expenditure per capita, 2009

Total health expenditure per capita in 2009

Country USD Country USD

Luxemberg 8,262 Sweden 4,347

USA 7,960 Finland 4,078

Norway 7,533 Japan 3,754

Switzerland 7,185 Singapore 1,531

France 4,840 Korea 1,184

Germany 4,723 Malaysia 316

Canada 4,519

Source: World Health Statistics 2012 by WHO

KELAB UKAY RESIDENCEKelab Ukay Residence superlink houses is located within an upscale and mature area of Bukit Antarabangsa, one of the elite residential area in Malaysia.

This freehold development is low-density as it offers only 15 contemporary houses. Each unit has an approximate built-up of 6,000 square feet with 800 square feet rooftop garden. These elegant homes come with 4 bedrooms and 4 bathrooms. Its impressive exterior is a blend of modern linear design and floor-to-ceiling glass panel. A private lift leads to all five levels of the home that includes a large service area and two master bedrooms located on two different floors.

In this gated and guarded community, residents are able to enjoy standard facilities such as security, jogging track, ample parking space for four cars at the entryway and an obstructed mountain view that extends to the living area and both master bedroom. As the name of the enclave suggests, Kelab Ukay Residences is within close proximity to a wide range of amenities like Giant Supermarket, restaurants, pharmacy and Petronas stations.

A number of schools are within short driving distances from Kelab Ukay Residence. The closest one would be the SMK Lembah Keramat II followed by SMK Lembah Keramat, SMK Sri Inai, SJK Lembah Keramat, Mutiara International School and Kuala Lumpur International School – all of which are no more than 3km away. For recreational activities, Zoo Negara can be accessed within a mere 10-minutes drive while Time Square Theme Park is about 9km away.

Kelab Ukay Residence is well-connected via several major highways, especially MRR2 which is about 2-minutes away. Apart from that, it is served by DUKE highway and AKLEH. As it is positioned along MRR2, buses and taxis can easily be hailed as there will be many.

For more information or you need to view the site please feel free to contact our sales team:

Christine Chua +6012-314 2864CK Lum +6016-302 8936Carolyn Liu +6017-872 2781Office +603-2693 8380

Taman Kelab Ukay

ROOFTOP GARDEN offers panaromic view of tranquil mountain ridges

SPACIOUS living area, dining room and kitchen are hosted on the same floor

3 + 1 + 1-STOREY SUPERLINK with lift

Exclusively marketed by,HENRY BUTCHER REAL ESTATE

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A property manager, be it a person, firm or company, is expected to manage properties under his portfolio with the knowledge and skills on subjects which include, but are not limited to, building maintenance, facilities and service management, financial management, property laws and insurance management. At the end of the day, a well maintained property will preserve its marketing appeal and have its value enhanced, providing maximum returns for the owner. HB Herald interviews the general manager of HB property management division Mr. Low Hon Keong about the current affairs of property management and what it takes to be a good property manager. Henry Butcher has been managing properties since 1985. Compare to current business environment, how was it then? When we first started out, we took in all types of properties ranging from low-cost apartments and condominiums to small commercial properties. But since 2003 we change our business direction to focus on high-end residential properties, gated and guarded developments and office buildings. We have successfully grown the business from about five projects in year 2005 to forty projects to date thanks to our dedicated team of staff and supporting directors. What major issues and challenges did you face concerning the property management service line? I would say mainly is the lack of quality manpower. Back when I was the building manager of Menara Genesis, a 25-storey office building in Kuala Lumpur where HSBC Bank Malaysia Berhad is the anchor tenant, my team member (executives and technicians) and I were very committed to our job and responsibilities. We would worked till late evenings, on weekends and sometimes during public holidays, just to make sure the job is done. But nowadays it is not easy to get dedicated staff as they tend to favour short-term gains, or worse, job hopping. Another challenge that we had during the earlier years was “selling” our management services. It took us many, many years of toil and sweat to convince our

prospective clients who were mainly the developers, joint management bodies (JMBs) and management corporations (MCs) that having a competent property management unit will ensure their properties are in good condition, functional and up to date in the long term and eventually benefit the investors, i.e. enhanced property value, and property owners, i.e. peace of mind.

On 1 June 2010, the Board of Valuers, Appraisers and Estate Agents Malaysia formulated and implemented the Property Management Standards (in existing Act 242 which came into force on 4 February 1981) to improve the regularisation of the professional property management practice. The proposed amendments, amongst others, require the registration of property managers. From your personal experience, do you think the amended Act 242 has changed the status quo for the better? This is one of the signs that we are heading towards mature property management in Malaysia comparable with our neighbouring countries. The important question here is whether we can get personnel who are not only committed and competent but also of high integrity to manage our upcoming real estate. Future development projects are getting bigger with thousands of residential and commercial units. Just imagine a scenario whereby the service charge is RM0.50 per square foot and the development has 900 units with an average size of 1000 square feet per unit. You would be talking about the management of millions of ringgit of service charges annually! Can the stakeholder or owner of the property afford to make the wrong decision by appointing an incompetent and unlicensed property manager? Who will bear responsibility or worse, liability when something goes wrong at the end of the day? With the guidelines and regulations in Act 242, property owner

PROPERTY MANAGEMENT, INSIDE OUT By Lim Sooi Ping, Henry Butcher Public Relations

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The Annual General Meeting is among the most fundamental and important parts of condominium democracy; it is where the board accounts for itself and receives its

mandate from the owners.

Henry Butcher has been managing Livilas, a residential condominium

consisting of four apartment blocks of 18 and 19 storeys with a total of 380 units, located at Section 16, Petaling

Jaya, Selangor since 2008.

Keeping everything is place requires a good relationship between the management and committee.

or committee will have some protection against errant property managers when making such important appointment. Besides the management of physical asset that is the subject property, are property managers expected to manage ‘residents’ as well? What are the qualities that property managers should have in order to perform their duties well, and at the same time, keep everyone happy? You need to become a good magician, i.e. a property manager is expected to solve problems in a snap of fingers, like magic! Joke aside, the right candidate for this industry must be pro-active, with good management and human skills. He must first and foremost see himself as part of the community, like he’s living or working at the property. There is a big difference between entering an office building simply to be to be greeted by polite security personnel, lovely notices at the lift area and sweet smelling air freshener and stepping into an office building with a lift that is out of order! If the property manager has a high-end condominium in his portfolio, he would have to bear more expectations from the residents, like keeping the facilities in tip-top conditions. As a property manager he must see himself as one of the residents and ask questions like, “Am I happy with where I’m staying?” or “Do I feel at home here?”. This kind of thinking will help the property manager make better decisions regarding the welfare of the residents. It is not an easy task to manage high-end projects because the name Henry Butcher is always on the top of everyone's mind, whether it’s about finished hand soap in the common toilet, an out of order treadmill in the gym room, a disabled lift, lost Astro reception, or even a squabble between the husband and wife because the visiting mother-in-law couldn’t find the visitor car parking space! It will be a plus point to have the building manager staying in that condominium that he or she is managing to gain first hand feedback from the residents.

Can you share some experience from one of your project sites? How do you achieve the management-resident balance? Livilas is one of the high-end condominiums located in Section 16, Petaling Jaya. In order to achieve that management-resident balance, an influential but understanding committee that supports the decisions of the property manager is very important. The management needs to be firm when making decisions yet is amenable to consider all factors before coming to a decision. Now imagine a scenario whereby the house rules say

no entry for lorry after 5.00 p.m. and you have a fridge delivery at 6.00 p.m. due to traffic jam. What will you do when the owner of the fridge calls you on the phone? Will you let the lorry into the premise and thus, break the house rule or asked the owner to get the fridge redelivered the next day? If you think you can’t handle such situation, then it’s high time you appoint Henry Butcher as your property manager! The committee can also play their part by educating their neighbouring friends, “gym kaki”, and others. What I’ve mentioned here is just the tip of the iceberg when it comes to the day-to-day operations at Livilas. Nonetheless we are proud to say that the management is performing very well with full cooperation from the committee.

LEGAL & PRACTICE ISSUES ON: 1. STRATA TITLES AND THE PROPOSED STRATA MANAGEMENT ACT 2013 2. GATED DEVELOPMENTS UNDER “LANDED STRATA”

Conducted by:

MR. TANG KEAN ONN

Advocate & Solicitor, LL.B Hons (UM), LL.M (UM)

Mr. Tang Kean Onn is a practicing advocate and solicitor of the High Court of Malaya and a senior member of the Malaysian Bar. He has vast experience in commercial and banking litigation as well as conveyancing and documentation procedures over the last 29 years. Throughout these 29 years, he has also conducted numerous courses and seminars relating to legal issues on banking for the Institute of Banks, Malaysia (IBBM) and various banks and financial institutions throughout Malaysia In recognition for his contributions to legal education especially in the areas of banking law and practice, Mr. Tang has been conferred the Associate Fellowship of the Institute of Banks, Malaysia (FIBM). He was also a Part-time Senior Lecturer and Examiner of the University of Malaya in the Faculties of Law, Business Administration and Accounting. He has lectured both the Undergraduate and Post Graduate programs for more than 20 years.

A Seminar Organized by: HBM Building Solutions Sdn. Bhd. (892943-A)

DATE : 31ST

JULY 2013 (WEDNESDAY)

TIME : 9.00AM – 5.00PM

VENUE : DOUBLE TREE AT HILTON, KUALA LUMPUR

PRICE : RM 750 PER PAX

(REFRESHMENT AND LUNCH PROVIDED)

Course Outline

The current application of the Strata Titles Act 2007 and the latest Strata Management Act 2013 and the Housing Development Act 2007 and 2010

To what extent the Housing Developers Act 2007 and 2010 and the Strata Titles Act are applicable to “Strata Bungalows” under a Gated Development in Malaysia

Management of condominiums, service apartments/suites; Gated

Developments and other Strata Developments under The Housing Developers Act; The Strata Titles Act; and The Building And Common Property (Maintenance and Management) Act 2007 and the proposed Strata Management Act 2013

Application of the Strata Titles Act – Meaning of opening of the “Strata

Book.” – Legal and practical importance

Importance of the Issuance of the Strata Titles

Joint management by the JMB/JMC and the role and duties of the Commissioner of Building (COB)

Collection and Recovery of Service/Maintenance charges

Jurisdiction of the Tribunal for house buyers under the Housing

Developers Act

Duties and liabilities of architects, engineers and stakeholders (solicitors)

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More than 400 VVIP bank customers witnessed the official launching of Maybank’s Overseas Mortgage Loan Scheme for the purchase of residential properties in

Sydney, Perth and Singapore.

Henry Butcher International Marketing was invited by Maybank Berhad to showcase their overseas property projects, namely the developments in London and Singapore, at the 3rd edition of Maybank Property Talk 2013 on 11 May 2013 at Shangri-La Hotel, Kuala Lumpur. More than 400 VVIP bank customers attended the annual event. The Maybank Property Talk series are part of the Maybank’s signature series of events that bring in property experts to share their insights and experience in real estate with Maybank’s customers. The talks have been held in the Klang Valley, Penang and Sabah. The event kicked off with the official launching of Maybank's latest product, the expanded Overseas Mortgage Loan Scheme for purchase of residential properties in Sydney, Perth and Singapore, as witnessed by deputy president and head of community financial services Datuk Lim Hong Tat, head of consumer finance En. Hamirullah Boorhan and head of high networth and affluent banking Mr Choong Wai Hong.

Maybank is the first Malaysian bank to offer ringgit loans for overseas properties when it introduced the Overseas Mortgage Loan Scheme for London properties in 2011, followed by Melbourne properties in 2012. To date, the scheme has successfully approved new loans from this portfolio in excess of RM720 million, with 90% covering properties in London while the balance was for Melbourne purchases. According to Lim, the loan scheme would enable Malaysian investors to finance their properties in ringgit without the concern of fluctuating foreign exchange rates as well as assistance with the necessary regulatory approvals in Malaysia for the financing facility.

The new mortgage facility with up to 80% loan is being offered for properties that are completed or off-the-plan, and they could be for own occupation or for investment purposes with financing option of term loan, overdraft, or a combination of both. In addition, customers can opt for an additional 5% loan as financing for mortgage reducing term assurance, and legal and valuation fees. At the exhibition area where Henry Butcher International Marketing was promoting properties in London (375 Kensington High Street, Marine Wharf, Surrey Quays and One Blackfriars, South Bank) and Singapore (Twin Peaks, Orchard Road and Residences, Emerald Hill), director of Henry Butcher Marketing Consultancy Ms. Jazmine Goh shared some overseas property investment sentiments.

“As the business centre and gateway to Europe, London is uniquely positioned to continue attracting investment and interests from the rest of the world. “The London property market has long been established as one of the safe investment markets due to its positive investment storyboard, transparent legal system, tax advantages for foreigners, and historical low interest rates at 0.5%. The cheaper pound and deterring property cooling measures and political instability in the investors

RINGGIT LOAN FOR OVERSEAS PROPERTIES: LONDON, AUSTRALIA AND SINGAPORE By Feng Wai Chia, Henry Butcher International Marketing

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“London properties are still very much sought by Malaysian investors,” commented Goh before going back to her clients at Henry Butcher’s booth.

Q&A session with Adrian Un, Paul Conti, Rupert Su and David Koh.

Participants taking a break.

home countries are also driving foreign investors into the city. “Because London still suffers from a lack of residential supply, demand has forced prices upwards. The UK government has published a report stating that London will see over a 40% increase in number of household which creates a demand of over 525,000 new homes. With only 277,240 new units currently on the books, London will be facing close to a 50% under supply,” she said. “Notwithstanding, for foreign buyers, Singapore remains attractive for the fact that it is stable with good protection of property rights and minimal currency risk. Despite its 712 square kilometres size, it is a regional financial and economic hub with a first-rate transit system, world class health care and excellent international schools. “Moreover, given that the world is now awash with liquidity amid low interest rates and high inflation, property will likely remain a viable option for investable funds,” added Goh. Four experts in their field were invited to give presentations during the event: CEO of SkyBridge International Mr Adrian Un, CEO of Time Conti Sheffield Mr. Paul Conti, partner at R&R Lawyers Mr. Rupert Su and founder of Malaysian Institute of Geomancy Science Master David Koh. Adrian Un shared some local market outlook and gave some simple yet useful tips when discussing about positive and negative gearing in property investment. Paul Conti and Rupert Su discussed about property investment opportunities in Sydney and Perth, and highlighted the current market trend and demand, including potential suburbs. Last but not the least, David Koh shared his knowledge on enhancing the interior living energy with Feng Shui. The event ended on a high note with an appreciation lunch for all the attendees.

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Australian capital cities, April 2013, Property Market Snapshot.

Source: RP Data Rismark May 2013

Average annual price change in residential property prices. Source: Land Registry, UK

London Property Market at a Glance The April data for London shows a monthly increase of 1.4% with an average of 6.2%, the annual change for London is considerably higher than other regions in the UK. House prices in England and Wales on the other hand rose at 0.7%.

Annual price change by London borough (selected). Source: Land Registry, UK

London borough Annual

change (%)

City of Westminster 9.5

Croydon 4.7

Hammersmith and

Fulham

11.0

Islington 3.7

Kensington and

Chelsea

9.8

Lambeth 9.2

Lewisham 6.2

Tower of Hamlets 4.2

Wandsworth 10.8

Australia Property Market at a Glance

Sydney Sydney house prices went up by 1.1% whilst the unit (apartment) prices went up by 1.3% over Q1 2013. Average median prices of houses and unit are

AUD650,000 and AUD500,000 respectively. Average gross rental yield ranges between 4.3% and 5%, taking into account all suburb and core central business district within Sydney.

Melbourne Melbourne house prices went up by 1.9% over Q1 and unit prices increased by 1.6%. Overall a positive growth with median prices for houses at AUD530,000 and units at AUD433,500. Melbourne house prices are still

significantly lower compared to Sydney; however prices in both cities are growing at a steady pace. Gross rental yield in Melbourne ranges between 3.6% and 4.4% as of Q1.

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Without knowledge of or exposure to the art world, starting an art collection may seem daunting. Here are some tips for novice and experienced collectors alike:

Artist A person who expresses himself through a medium, who uses imagination, talent, or skill to create works that may be judged to have an aesthetic value, intrinsically tied to the role of art, an artist creates art within a societal context, supported and buffeted by the conditions of the time – resources, technology, intelligence, knowledge, economic, political, social, cultural and religious or philosophical conditions of the the moment of the creation. Art projects back to humanity knowledge and awareness of the reality, which in turn allows humanity to understand reality better.

Art Gallery A room or series of rooms where various forms of art are displayed to the public, mostly for commercial purposes. Art galleries sell art. Their role is to stimulate, educate, inform and entertain diverse audience by seeking out new talented artists. A good gallery often helps their artists develop and mature artistically and eventually bring their work to the attention of the buying public via strategic, marketing and advertising of the works and artists they represent. A well curated exhibition is often coupled with a well written catalogue as galleries seek inclusions of the art in scholarly articles and books.

Art Dealer/Advisor Economically conscious individuals specializing in a particular style, period or region, and art dealer seeks out

works or artists to recommend either to galleries or directly to collectors. Equipped with vast understanding of the art market and trends, they are often able to anticipate market trends and influence the taste of the market. They are kept to date with art happenings and often credited as figures to introduce new paintings on the auction map, while representing collectors and institutions in acquisition.

Auction House A business organisation that conducts sale by means of auction. They derived income mainly from buyer’s premium and seller’s commission for its services and expertise advice. Evolved from making profit based entirely on auction, auction houses today act as dealmakers and low-key middleman. They provide a platform to feature masterpieces as well as a transparent and fair market transaction, often perceived to be a more objective pricing mechanism for artworks.

Art Fair

Art fair are temporary spaces where galleries from all over the world bring artworks to sell. The art is bought by people visiting the fair, mainly dealers, collectors and gallerists. A showcase of the best of the best, and art fair congregates the gems of each participating gallery, allowing the works and artists and international exposure and recognition. It is also a good opportunity to spot trends and new developments in ideas and mediums. A string of fringe events are often held in the course of an art fair.

ART COLLECTING – BUYING ADVICE FOR COLLECTORS By Chris Tay, Henry Butcher Art Auctioneers

Buying art from a reputed auction house has its own merits, especially for collectors looking for specific artworks. Generally, auction houses actively source important

works in an attempt to bring them to an auction, while collectors and dealers wanting to sell artworks often try to route them through auctions.

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Tips to Keep an Eye Out For in an Artist

Always read the artist bio

Consistency in progress and development

Strong technique and skills

Proper management of artwork, not commercial and not overproducing

Exposure and collector base

Represented by professional galleries

Questions to Ask When Visiting a Gallery

Who is this artist? What is the work about?

Ask yourself, what do you appreciate in the (particular) art? A good painting speaks and connects to you.

Can I afford this? Not all good works are expensive, and not all expensive works are good. Shop within your budget, the idea is to enjoy the artwork, not enslave yourself for it.

Would you look back and regret this in 3 years? The first 3 years of collecting may be the most uninformed. Make sure you make an informed decision.

Would you like to grab a cup of coffee? Invest some time to speak to the gallery owner and the artist

How to Start a Good Collection

Do your homework. Find out more about the artist and his oeuvre. However, do not restrict yourself from falling in love with a piece of art once in a while.

Set a direction for your collection. Let your collection be a journey of your art endeavour!

Itemise your collection. Keep count of your eggs (and where it has been).

Proper art care and handling, art should be stored in a controlled environment. The condition matters a lot!

Follow up. Be in the know, know what the artist is doing, understand the development and if there is a change of direction in the artist’s creation.

Support your artist!

Myth Busted!

Art is for the elitist. NOT EXACTLY. It is for everyone and anyone who is willing to spend their time in galleries to learn and appreciate the arts.

If you buy art, you must be rich! WRONG. Most collectors end up pursuing their passion for arts and are rewarded with a home with walls filled with amazing artworks instead of Porches and Lamborghinis.

An artist will only be famous if they are depressed, emotional, suicidal a drama mama, or if they are dead. FALSE. Art is well received by both the younger and elder generations as it transcends age, language and culture; the only barrier is the price tag!

Artists are eccentric. NO. Okay, maybe a little. They are more in touch with issues. It is due to their sensitivity to things that the public is numb to that inspires them.

The gallery business is simple, just hang and exhibit. On the contrary, starting up a gallery is as tough as setting up for retail, if not tougher. A gallery not only services their client to satisfy their unique tastes and needs but also hunts for potential artists to be introduced to the scene. Not forgetting their constant headache and pursuit to ensure the artists meet each deadline!

Market Scene, Undated by Sudjono Abdullah Estimate RM4,000-6,000

Sold for RM37,400 at Henry Butcher Malaysian & Southeast Asian Art Auction April 2013

The Very Extraordinary Voyage, 2010 by Haslin Ismail Estimate RM22,000

Sold for RM28,000 at The Young Contempo Auction 2012

A R T AU C T I O N M A L AYS I AO C TO B E R / N OV E M B E R 2 0 1 3

an inv i tat ion to cons ign

We are currently accepting consignments for our forthcoming sale

in October/November 2013. We invite you to contact us to explore

consignment and valuation opportunities at HBArt.

CHRIS TAY +6016 298 0852 | chris@hbart.com.myGENERAL +603 2691 3089 | info@hbart.com.my

www.hbart.com.my

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HB Property Management Annual Dinner 2013 The property management team is proud to announce their annual dinner with this’s year fun theme, ‘Back to School’! The team has grown from strength to strength with 38 projects around Klang Valley and over 200 dedicated personnel. Date: 8 June 2013 Time: 7.00pm Venue: Grand Ballroom, Impiana KLCC Hotel Contact: Callie Poh, +6205 3330, calliepoh@henrybutcher.com.my

Henry Butcher Retail Director Speaking Engagement with Victorian State Government's Super Trade Mission – Food Sector The Victorian Government aims to increase exports from and investment into Victoria through a program of multi-sectorial large scale missions to key markets that are being targeted (China, India, UAE and SE Asia). Food sector (processed food in the retail industry) is one of the key sectors. Mr. Tan Hai Hsin, Managing Director of RGM Retail Group (Malaysia) Sdn. Bhd. will be giving a talk on ‘The Food Retailing in Malaysia’, covering topics like the food retailing and restaurant trends in Malaysia, current consumers' shopping behaviour and patterns and food retail market size in Klang Valley and Malaysia. Date: 17 June 2013 Time: 11.30am Venue: Menara IMC, Kuala Lumpur Contact: Suzanne Ong, +603-2055 1503, suzanne.ong@dbi.vic.gov.au

Business Delegation Seminar on Malaysia Real Estate In a joint collaboration, Henry Butcher Malaysia and pH Capital Limited of Hong Kong will be organising a briefing on Malaysia property market to a group of Taiwan delegation from the Real Estate Investment Association of Taipei, Taiwan. The briefing is expected to cover topics concerning the local residential, commercial/office and retail property market. UM Land is also invited to present their upcoming product, Suasana Bukit Ceylon. Date: 14 June 2013 Time: 10.00am Venue: Suasana Bukit Ceylon, Persiaran Raja Chulan, Kuala Lumpur Contact: Suyi Chong, +603-2694 2699, suyi@henrybutcher.com.my

Events – June/July 2013

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Australia Property Showcase Featuring the best of Melbourne and Sydney CBD properties: MY80, a high rise city apartment that is located at the corner of Elizabeth St. and A’Beckett St. and overlooks Melbourne University and RMIT; Haus, an eight-level apartment located nearby Smith St., an emerging hotspot in Collingwood; Coburg Hill, a new 52 acres masterplan development with nearby schools, sporting facilities, retails and parklands; and Skye by Crown, a stylish 20-storeys luxury apartment with glass facades designed by renowned architect Koichi Takada. Date: 15-16 June 2013 Time: 10.00am – 6.00pm daily Venue: Henry Butcher International Gallery, Damansara Intan Contact Person: Jazmine, +6017-877 7489, jazgsh@henrybutcher.com.my

Exhibition – Lord House, Kensington High St., London W14 A prestigious collection of 1, 2 and 3 bedrom apartments and penthouses located at Kensington High Street. A rare and remarkable investment opportunity in the Royal Borough of Kensington and Chelsea. Private resident’s leisure suite include swimming pool, spa, fitness studio and business suite. Comes with Harrods concierge service. Date: 6 - 7 July 2013 Time: 10.00am – 7.00pm daily Venue: Mandarin Oriental Hotel Kuala Lumpur Contact Person: Jazmine, +6017-877 7489, jazgsh@henrybutcher.com.my

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ValuationMr. Long Tian Chek, hbmalaysia@henrybutcher.com.myMr. Gary Liew, hbmalaysia@henrybutcher.com.my

Project MarketingMr. Tang Chee Meng, tang.cm@henrybutcher.com.myMs. Linda Ooi, lindaooi@henrybutcher.com.myMs. Lenna Liew, lennaliew@gmail.com

Agency & InvestmentMr. Tang Chee Meng, tang.cm@henrybutcher.com.myMs. Lenna Liew, lennaliew@gmail.comMr. Low Weng Soon, wengsoonlow@gmail.com

International MarketingMs. Jazmine Goh, jazgsh@henrybutcher.com.my

Research ConsultancyPn. Fahariah Abdul Wahab, hbampang@henrybutcher.com.my

Retail ConsultancyMr. Tan Hai Hsin, tanhaihsin@yahoo.com

Asset ManagementMr. Low Hon Keong, secretarypropmgt@henrybutcher.com.my

AuctionsMr. Tang Chee Meng, tang.cm@henrybutcher.com.myMr. Tan Peen Yeow, hbaamalaysia@gmail.com

Plant & MachineryMr. Gary Liew, hbmalaysia@henrybutcher.com.my

Art ConsultancyMr. Christopher Tay, chris@hbart.com.my

MM2HMs. Suyi Chong, suyi@henrybutcher.com.my

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