EPF consortium likely to buy government land around KL
MI
KUALA LUMPUR, Dec 23 — The Employees Provident Fund could end owning three of the best pieces of real estate in the Klang Valley — and in the process boost government coffers by several billion ringgit.
Government sources told The Malaysian Insider that an EPF-led consortium is a cusp away from snaring the 204 acres in Jalan Cochrane while the EPF with its unmatched financial muscle is the clear favourite to buy a tract of land at the sought-after Rubber Research Institute of Malaysia in Sungai Buloh and Jalan Ampang.
In November, Finance Minister Datuk Seri Najib Razak announced that the government would be monetising some of its assets, including pieces of valuable real estate. For a start, government-owned land in Jalan Cochrane, Sungai Buloh and Jalan Ampang would be placed on the market.
This news created a buzz in the market because the land in Jalan Cochrane and Sungai Buloh has been eyed by prominent politicians and well-connected businessmen for years. Property consultants have valued the three pieces of land at between RM8 and RM12 per square foot (Sungai Buloh); RM150 and RM250 (Ampang) and RM100 and RM200 (Jalan Cochrane).
In a recent article in the Edge Financial Daily, a few property developers gave the Cochrane land the thumbs-up for its location and size, expecting the land value to increase to RM250psf if it is parceled into smaller plots while several others favoured the Ampang Hilir land, noting its proximity to the exclusive U Thant area puts a premium on this tract.
Government sources said that the EPF and several property players including MRCB have submitted a master plan to the government to develop the Cochrane area. With crude oil price hovering around US$50 per barrel and the drop in palm oil price, the government's ability to collect revenue will be severely challenged in 2009.
At the same time, the government will have to spend more and consider launching more stimulus packages to boost domestic demand and cushion the impact of the global economic crunch on the Malaysian economy. Faced with these twin challenges, the administration is looking at monetising its assets to raise funds. Property developers have valued the three pieces of land at about RM3 billion.
Showing posts with label monetising assets. Show all posts
Showing posts with label monetising assets. Show all posts
Tuesday, December 23, 2008
Monday, November 17, 2008
GOVT looking at assets to raise revenue
Malaysian Insider
Government looking at assets to raise extra revenue
KUALA LUMPUR, Nov 11 - Desperate times call for unusual measures of raising revenue and drumming up investment. This appears to be the mantra of the Economic Council as it readies the country for slower growth and tougher times, and revisits areas and policies long considered sacred.
For a start, the government is:
# Surveying all the assets it owns – lands, shares in government-linked companies, infrastructure – and assessing which can be monetised.
# Planning to overhaul the Malaysia My Second Home programme to make it easier for foreigners to buy property here. It is also considering allowing those with professional qualifications and above 50 years old to work on a part-time basis. In this way, Malaysian industry can benefit from the skills and knowledge of some of these foreigners who have settled here under the programme.
# Going to make it easier for knowledge workers and their spouses to obtain permits to work in Malaysia. This move will address the lack of talent in several fields including biotechnology which has held back the inflow of investments from abroad.
The Economic Council, which consists representatives from the Cabinet, public sector and corporate captains, was set up a few months ago to come up with strategies to cushion the impact of the global economic turmoil on Malaysia. The 40-member council met yesterday to discuss the state of the economy and structural changes that the country needs to make.
The Malaysian Insider has learnt that the Finance Ministry is conducting an audit of assets that it owns or has a stake in. This will not be the first time that the government is mulling the possibility of raising cash by disposing of its assets. In the past, senior government officials also raised this possibility but it was shot down by more conservative elements who argued that there was little need for such a drastic approach given the steady flow of revenue from Petronas and other sources of growth.
But with crude oil prices slumping, revenue from palm oil likely to be flat and the budget deficit slated to become the highest the in the region at 4.8 per cent of the Gross Domestic Product (GDP), the administration has little choice but to generate revenue from idle assets.
In the stimulus package unveiled by Finance Minister Datuk Seri Najib Razak last week, the government said that it would develop several tracts of land in Sungai Buloh, Jalan Cochrane and Jalan Ampang Hilir. Under this plan, private developers or government-linked companies can bid for parcels of land and then develop it according to a masterplan for the whole area.
Only after the first parcel has been developed, will the government consider selling or leasing the second parcel, presumably at a much higher price than the first parcel. At a roundtable discussion organised by The Edge last week, Datuk Azman Yahya, a member of the Economic Council, said that the government should have a listing of the assets it owns.
“Monetising these assets means many things… it could include selling and leasing back of buildings, sale of property or through leases, you know…It also can be done in a way that the government does not lose ownership in the long run,’’ he said.
Apart from land, the Finance Ministry, Khazanah Nasional and Perbadanan Nasional Berhad also own stakes in companies and government-linked companies including Sime Darby, Tenaga Nasional Berhad and Maybank.
Government looking at assets to raise extra revenue
KUALA LUMPUR, Nov 11 - Desperate times call for unusual measures of raising revenue and drumming up investment. This appears to be the mantra of the Economic Council as it readies the country for slower growth and tougher times, and revisits areas and policies long considered sacred.
For a start, the government is:
# Surveying all the assets it owns – lands, shares in government-linked companies, infrastructure – and assessing which can be monetised.
# Planning to overhaul the Malaysia My Second Home programme to make it easier for foreigners to buy property here. It is also considering allowing those with professional qualifications and above 50 years old to work on a part-time basis. In this way, Malaysian industry can benefit from the skills and knowledge of some of these foreigners who have settled here under the programme.
# Going to make it easier for knowledge workers and their spouses to obtain permits to work in Malaysia. This move will address the lack of talent in several fields including biotechnology which has held back the inflow of investments from abroad.
The Economic Council, which consists representatives from the Cabinet, public sector and corporate captains, was set up a few months ago to come up with strategies to cushion the impact of the global economic turmoil on Malaysia. The 40-member council met yesterday to discuss the state of the economy and structural changes that the country needs to make.
The Malaysian Insider has learnt that the Finance Ministry is conducting an audit of assets that it owns or has a stake in. This will not be the first time that the government is mulling the possibility of raising cash by disposing of its assets. In the past, senior government officials also raised this possibility but it was shot down by more conservative elements who argued that there was little need for such a drastic approach given the steady flow of revenue from Petronas and other sources of growth.
But with crude oil prices slumping, revenue from palm oil likely to be flat and the budget deficit slated to become the highest the in the region at 4.8 per cent of the Gross Domestic Product (GDP), the administration has little choice but to generate revenue from idle assets.
In the stimulus package unveiled by Finance Minister Datuk Seri Najib Razak last week, the government said that it would develop several tracts of land in Sungai Buloh, Jalan Cochrane and Jalan Ampang Hilir. Under this plan, private developers or government-linked companies can bid for parcels of land and then develop it according to a masterplan for the whole area.
Only after the first parcel has been developed, will the government consider selling or leasing the second parcel, presumably at a much higher price than the first parcel. At a roundtable discussion organised by The Edge last week, Datuk Azman Yahya, a member of the Economic Council, said that the government should have a listing of the assets it owns.
“Monetising these assets means many things… it could include selling and leasing back of buildings, sale of property or through leases, you know…It also can be done in a way that the government does not lose ownership in the long run,’’ he said.
Apart from land, the Finance Ministry, Khazanah Nasional and Perbadanan Nasional Berhad also own stakes in companies and government-linked companies including Sime Darby, Tenaga Nasional Berhad and Maybank.
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