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HOUSING

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1. In the 1980’s and early 1990’s there was a great construction boom in Tokyo. Land was sold at USD 3,000 per sq foot. Everyone was rushing to buy expensive land because the market for apartments and office space seem to be forever.

2. Then suddenly the market dried up. The boom became bust. Since then Japan has not been able to really recover.

3. It was the same with Hong Kong. The economy collapsed because of overbuilding.

4. In a way the sub-prime crisis which triggered the financial and economic collapse also had to do with the building industry.
5. I once thought that the tower crane should be included in the coat-of-arms of KL City Council because they were all over the city. KL grew at a rapid pace and the skyline changed almost every day.
6. KL is still growing. New high-rise apartments, condominiums and office buildings are mushrooming everywhere. It is really amazing. We really look like a newly developed country.
7. Can this growth go on forever? True, KL’s population and that of Greater KL (including non-Wilayah areas) have been growing fast. At independence, the population was only 350,000. Today Klang Valley has a population of almost 6 million. Obviously the businesses and the workers at all levels need space to live and work.
8. But it is not impossible that the provision for these would not outstrip the rise in population and their spending power.

9. Shopping complexes are being developed sometimes next to each other. Surely it will cause the shoppers to be divided between them. There will not be enough to support all the complexes. Some will survive, some will die.

10. Already we have seen a few hyper-market chains going out of business. Will this not happen to a few of the shopping complexes? Will this not happen to the other major development projects?

11. And we are told of new giant projects. The Sungai Buloh KL City Centre, the new KL Financial District and the 100-storey Merdeka Tower Project.

12. Some people say that even the Petronas Twin Towers are empty. Well they are not fully occupied. This is because of a policy to allow only prestigious corporations and institutions to have the Twin Towers as their address. In any case, Petronas has enough requests for space to decide to add extra space for the shopping complex and a forty-storey tower.

13. I should really be advising Petronas to abandon its current project. But here I am talking about overbuilding in KL. Really I shouldn’t. But I am really concerned over the possibility of the bubble bursting.

73 thoughts on “HOUSING”

  1. And I also should add about govt finances. The easiest way to confirm this is by looking at public debt to GDP, although chedet will no doubt blast me for this. I apologise in advance, but every other analysts are looking at the same thing if they want to find faults with Malaysia’s finances.
    One can argue about why the government has to borrow so much when we have oil revenue. One can also look at a model sovereign like Norway, who, after having discovered the North Sea oil, decided to establish a wealth fund to save the bulk of money for its future Norwegians. One can also rebut, and we can go back and forth until the cows come home.
    My 2 sen, again.

  2. Dear amintan, sorry i have been away.
    Maybe i should be more specific.
    I was commenting on your statement “Not only is PNB has very deep pocket, but it is guaranteed by the government”. This is wrong.
    What you saw in the ASB book was correct abt the unit trust. The unit trusts are indeed ok, having a guaranteed RM1 value, but the same cannot be said about the manager, PNB. PNB is not guaranteed by govt. Go to their website and check if there is anything to say that the company, or any of its ventures, are guaranteed by govt.
    You need to understand the unit trust business. The manager can go bankrupt but the fund is kept under trust, so they are safe. My concerns are with PNB as a company, so pls understand.
    My 2 sen.

  3. Dearest Tun
    may I..//By amin tanAuthor Profile Page on December 27, 2010 3:26 A.M
    May I refer to Parameswara 2 on December 1,2010 4.10 pm. Personally I would take an opposite stand. Whatever good, development for the people undertaken by the government have always been twisted by the opposition, especially DAP and now PKR as being negative and corrupted…//
    bro amin Tan,
    1-I have always been proud of the World class infrastructure we have in Malaysia and to Tun and his govt we owe our gratitude.No sir those jokers in the alternative coalition,the marriage of convenience of strange bedfellows would not be able to con me easily,esp that it is being led by that backstabber of our beloved Tun.
    2-My opinion that UMNO is not all holy is derived from the facts that have revealed itself through the various significant events of UMNO as well as the concerns that Tun himself has voiced out through the UMNO general conventions,etc,etc.
    3-In the 86 UMNO general election our supposed formidable and invincible Tun won by a very small margin of about 40 votes losing to an unlikely competitors a jv between two otherwise rivals Musa and Kuli.It was obvious that money politics was the culprit that almost defeated the true leader the grassroots actually wanted.
    4-The constitution was amended to ensure that it would be a truly costly affair for anyone who wants to take on the presidency.The main objective of that constitutional change was to curb money politics.Why?Because it exist in a very significant portion in UMNO already.What is money politics?Yes sir,it is buying of votes,a corruption like any other corruption.
    5-And Tun would year after year kept on lecturing about this menace that has already reared its ugly head in this sacred party.For a simple minded guy like me the fact that Tun was harping on this issue indicates that money politics or corruption in UMNO has already become an incurable cancer!
    6-Tun had even demonstrated in one of the general assembly the sickening behaviours of the members who kept coming back for more and more contracts..Now why is this a problem for Tun?Simply because if Tun had not accommodated their request Tun may find his support in UMNO would begin to wean..that’s how a simple minded yet busy layman like me would read the situation.
    7-During Pak lah’s time we have seen Isa Abu Samad caught in the corruption.In the latest GA,Ali Rustam was caught but was simply not allowed to contest but the only son in law of Tun Pak Lah ,also guilty was only given a warning but allowed to contest anyway…In short we can safely say that this corruption is all well and alive in UMNO.Esp when you see how they deal with the offenders!
    8-Under our Najib this corruption aka money politics has not even been mentioned at all in the latest general assembly.It could only mean that while super great Tun Mahathir in all his 22 years,and highly religious pursing al Shafie and al Ghazali type like Tun Pak lah all have not been able to overcome this all gigantic problem,Najib within only three years have eradicated it already.
    9-Have you also not witnessed for yourself the vote buying of the voters in the Sibu by election?The I help you you help me plea by Najib?The fact that money politics is totally silent under Tun Najib while at the same time ,we have seen him in action in broad daylight doing money politics,how am I to judge that UMNO is all that holy?
    10-When a fish stinks it stinks from the head.
    Thanks Tun

  4. Dear Tun,
    May I refer to Parameswara 2 on December 1,2010 4.10 pm. Personally I would take an opposite stand. Whatever good, development for the people undertaken by the government have always been twisted by the opposition, especially DAP and now PKR as being negative and corrupted. Just read Malaysia Kini, they keep on harping UMNO Malays are utterly corrupted, incompetent and unreliable. On the other hand,PKR Malays are efficient, clean, honest, virtuous and are destined to take over the government in PUTRAJAYA come PRU 13. MANY NON MALAYS HAVE bought the fairy tale story whole sale and with enthusiasm. Some Malays like you also are conned and being manipulated by the cunning PKR and DAP collusion.
    There is absolutely no proofs at all that UMNO is corrupted. It has become a slogan for PKR and DAP. BN LOST 5 states in 2008 due to increase in petrol price and toll. Nothing to do with corruption in UMNO at all.
    Dont you see the tremendous advantage of North south highway built during recession of 1986?. We cut short travel time by 4 times and imagine the saving on man hours, vehicle wear and tear and stress.
    The construction of PUTRAJAYA relieve the congestion on KUALA LUMPUR. KLIA is another success. Malaysia has become first world country due to the initiative and vision of Tun Dr Mahathir. Now the opposition is claiming credit and besmear Tun. It is most unkind and unfair. Instead they praise Lee Kuan Yew who has sinister and biased view of Malaysia. I took a SIA flight from Manchester, England to Singapore recently, the route map in the aircraft did not show Kuala Lumpur. It showed Jakarta, Bangkok. This is economic sabotage of your neighbour. Whereas, route map in similar MAS flights shows Singapore, Kuala Lumpur, Bangkok.
    amin tan

  5. The mouse in the room by Bob Ellis
    I might be wrong. But it seems to me on going to press that Assange has altered the way the world functions, and the alteration he has caused is as great, or almost as great, as Gutenberg

  6. The mouse in the room by Bob Ellis
    I might be wrong. But it seems to me on going to press that Assange has altered the way the world functions, and the alteration he has caused is as great, or almost as great, as Gutenberg

  7. Dear Tun,
    May I refer to asgoodasitgets on December 15, 2010 3.16 am.
    Yes, it is stated in PNB investment book that ASB is guaranteed by the government that it will not be below par of rm1 per unit. Other unit trusts have high risk factors.
    Please don’t say PNB is failing. It is not true. Don’t be anti national and another doomsday prophet. Don’t claim that the government is deeply indebted. Don’t cast doubts and aspersion on PNB and the government. They are both prudent and in good hands. Their financial management are sound.
    amin tan

  8. Dear Tun,
    May I refer to asgoodasitgets on December 15,2010 3.16 am. Yes, it is stated in the ASB book in small print that the unit trust is guaranteed by the government that it will not be below par of rm1 per unit. All other unit trust have high risk factor.
    Please don’t say PNB is failing. Don’t be anti national and another doomsday prophet. PNB is not a bank. It is an investment and unit trust company. Please don’t cast doubts and aspersion on PNB. DON’T say the government is deeply indebted. PNB and the government are prudent in their financial management and are in good hands.
    amin tan

  9. Dear amin tan, why do you, in fact many other people as well, assume that PNB is guaranteed by government? Is that mentioned anywhere? Do you see that in their website or their annual accounts? Yes, PNB is an organisation to support bumis but since our government is already deep in debt, what makes you think that they will incur more debt to support a failing PNB? This misguided mentality is what’s causing stupid banks to lend to so-called fellow big banks, thinking that the big banks are ‘too big to fail’ ie that the govt will bail them out in a crisis, hence we shd not worry about lending to these big banks now.
    Just my 2 sen.

  10. Dear Tun,
    May I refer to Wajaperak December 12 2010, 1:14pm. Mr Wajaperak, please be assured that I have the same understanding and perception of heaven and hell as you have. On this issue, we are at the same level and concurrent. Please refer to my description and perception on the said subject under the topic of MAHA in this blog dated today.
    Amin Tan

  11. Assallmmualaikumwarahmatullahiwabarokatuh..
    Semoga Tun sudi mengizinkan ruang untuk saya..
    [[To Mr Parameswara 2, I wish thank you for your support in my musibah of highway robbery]]
    Of course I feels for your pain Bro Amin Tan..It goes without saying..I just only have one issue in your perception and contemplation of Islam..
    Contrary to many non believer even Muslim themselves,life is not about attaining heaven or condenmed to hell..
    Life is about one perfomances in adhering the rule,laws and regulation that set up by Allah while they tried their utmost best to serves Allah here in the world.The end results of heaven and hell is not us to worry..Just perform and trust you have performed well..Allah will do the rest..That is what faith is all about..
    In this obligation,one must devoted by their own free wills.The job description of Rasullulah s.a.w is actually
    appeal the consciences of human being to coming back to their very own nature that is fitrah..
    In this fitrah ( nature ), one is inclined to his or her soul proclivity.So in the company of pious soul, one feels the serene, calmness and tranquility as opposed by the ‘tortured’ soul.
    Imam Al Ghazali had desrcibes this in detail in Ihya Ulumiddin.When we sought to finds guidance in any related fields,we must search within the bound of FOA ( Figure Of Authority )..
    By defying this convention we are most likely to strays..
    Housing is just a matter that resulted from our dealing in life..
    Tun have proposed a mechanism, a survey in indentifying housing problems..
    But from whose kind of views that it is really matters?
    I strongly believes you must seek the opinion from farmers,peasant,
    tramp,transient and vagabond..
    Maybe we should gives a little thought about..
    For whom the bell tolled??
    Terima kasih Tun..

  13. Dear Tun,
    May I continue with the second part of my Islamic discourse.
    My previous analysis, I divided into 3 main understandings of life and death. Islam, atheists and Incarnationists. According to Islam, it is the only religion acceptable for a person to go to heaven. All other religions are not accepted. It is very clear cut between heaven and hell. Those who are atheists, will think there is nothing after life are absolutely mistaken, according to Islam. They cannot negotiate to choose firewood even. They cannot negotiate not to go to hell because according to Islam, there is only heaven or hell, there is no middle road, meaning, end of the story. They cannot plead ignorance of the revelation of Islamic faith. Surely in the Singapore bookshops, there are plenty of Islamic books available and surely somebody must have read somewhere about Islam. But you refuse to believe. You say Islam is nonsense. You laugh at it.
    For those who believe in incarnation, they will be in the same boat as the atheists. Islam is the only right religion. It will be such a waste and such a pity if a person has to go to hell.
    There is no compulsion in Islam. Nabi Muhammad tried his best to convert everybody to Islam. In the process, he was cursed, laughed at, boycotted, and the Quraisy of Mecca wanted to kill him. Fortunately, Nabi Muhammad was a great man. He managed to escape from Mecca, migrated to Medina, built himself up, and be victorious in the whole of arabian peninsular and now 1billion muslim in the world. I said there is no compulsion in Islam, when we look at Islamic country, the non-believers can practice their own religion in peace. There is a revelation in the quran: lakum diinukum waliyadin. Your religion is your religion, my religion is my religion. According to Islam, heaven is built for the muslims, the other half, hell is meant for non-believers. Sorry to say this folks. The beauty of Islam, is in the Fatihah and its meanings. When a muslim prays, he recites Fatihah as the basis of praying and other verses from the Quran as an addition, and the physical ritual of praying depicts or reflects the meaning of Fatihah. It is about, God being great and human being are always on the losing side, and the muslim pleads to Allah to show him the right path, do not be astray. Wallahua’lam. If I have offended non-muslims, I am sorry. For Malaysia, it will be very beautiful if the non-muslims can become muslims. We will live in peace, harmony and prosperity. To Mr Parameswara 2, I wish thank you for your support in my musibah of highway robbery.
    amin tan

  14. dearest Tun
    may I refer to comments by amin tan on December 9, 2010 2:39 AM.
    1-Sorry to hear about your predicament.
    2-My elderly cousin sister was in ICU about 3 weeks ago after she was pulled down by a snatch thief.Thank God she has recovered now.
    3-My good friend experienced the same thing that happened to you just as he left the ATM machine in Port Kelang got hospitalized and had many stiches on his head.It happened one day before Raya.
    4-The crime rate is getting from bad to worse and inspite of all the measures like mobile police stations available now.
    5-If in such an important and deliverable request like this ,to provide the rakyat with safety and security cannot be provided by Najib,what performance first nonsense is he talking about?
    6-All his devotion it seem is to make sure that the subsidies cut must happen as soon as possible.It has already started step by step and you can expect that eventually a full cut will come.
    7-Maybe I should vote against the Govt to protest their inaction to this basic of our needs,safety and security.If only we have a better and credible opposition…
    8-Cutting down on subsidies will only aggravate the crime rate.Doesn’t Najib understand what motivate people to live the life of crime?
    9-Actually I have intended to conclude my observations on the American economy with that comment on 7th Dec as I do not wish to be regarded as a harbinger of bad news.Thanks for your effort to remind me of our responsibility as a good Muslim.
    Rest well my brother and get well soon!Take care.
    Thanks Tun.

  15. dearest Tun
    may I refer to comments by amin tan on December 9, 2010 2:39 AM.
    1-Sorry to hear about your predicament.
    2-My elderly cousin sister was in ICU about 3 weeks ago after she was pulled down by a snatch thief.Thank God she has recovered now.
    3-My good friend experienced the same thing that happened to you just as he left the ATM machine in Port Kelang got hospitalized and had many stiches on his head.It happened one day before Raya.
    4-The crime rate is getting from bad to worse and inspite of all the measures like mobile police stations available now.
    5-If in such an important and deliverable request like this ,to provide the rakyat with safety and security cannot be provided by Najib,what performance first nonsense is he talking about?
    6-All his devotion it seem is to make sure that the subsidies cut must happen as soon as possible.It has already started step by step and you can expect that eventually a full cut will come.
    7-Maybe I should vote against the Govt to protest their inaction to this basic of our needs,safety and security.If only we have a better and credible opposition…
    8-Cutting down on subsidies will only aggravate the crime rate.Doesn’t Najib understand what motivate people to live the life of crime?
    9-Actually I have intended to conclude my observations on the American economy with that comment on 7th Dec as I do not wish to be regarded as a harbinger of bad news.Thanks for your effort to remind me of our responsibility as a good Muslim.
    Rest well my brother and get well soon!Take care.
    Thanks Tun.

  16. Dear Tun,
    May i refer to Parameswara 2 December 7 2010 2.15 am. Mr Parameswara 2, please let me assure you that we are on the same side. My approach, philosophy and strategy are based and modelled upon the greatest of men that ever lived, the Muslim Prophet, nabi Mohammad(peace be upon him). He was a sensible man. Humble . courageous, honest and most of all he devoted 23 years of his adult life to islam. Mohammad is islam and islam is mohammad. He sought not to destroy his enemy but to convert them. Let’s do the same.
    Bush and Blair in their deeds were deeply anti muslim. These two anti muslim leaders schemed and fabricated evidence of existence of weapons of mass destruction in order to invade Iraq. In islamic history, Abu Lahab was the only personality cursed by the Prophet and all muslims. Not only did he opposed the religion but physically abused Rasullullah and asked his 2 sons to divoice Rasullullah’s daughters Uni Kalsom and Rogayah. Abu Lahab himself was Rasullullah’s biological uncle, father’s side. Too long to talk about islamic history.
    Islam is clear on tauhid and iman. Those who say nobody ever come back to tell you what is on the other side are indeed godless and without iman, without hidayah. They are atheis or incarnationists. When a person dies that is the end of the story. He becomes firewood(feul) or ashes(abu). No heaven or hell. No judgement day. Those are all concocted God and Judgement Day. Not true at all. So they can do what they like,zina,get drunk, plunder, put friends and foes behind bars or exiled them to Sentosa island and america. no need to repent and no need to fear because there is nothing after death. To this people, the muslim say ‘buta hati” or blind hearted. However, it is mandatory upon a muslim to try to explain and convert all and sundry to insaf(to know oneself) and embrace the religion of peace. Those who believe in incarnation means after humans die they will reborn into other living things like flowers, worms, cat fish or elephants.
    For muslims, life is tragic and most restricted. Samiakna wa atokna. Listen and obey says the Quran. They have to comply strictly the 5 rukun islam and the 6 beliefs of rukun iman, including devils, angels, Quran, Judgement Day. It is so clear but many dont believe it. They prefer firewood. They do not want to value their lives more than firewood. But if we study the struggle of Rasullullah, we would be more convinced and if you study the Quran your conviction is strengthened. For a start, try to memorise Al Fatihah in arabic and try to know and REFLECT the meaning thoroughly. you are 90% muslim already and 10% firewood.
    So, Mr Parameswara 2, I believe the current recession and problems in the west is started by Bush in collusion with Blair. Why must we drag Obama inside. We have to clean up the mess left behind by these 2 crooks. Dont blame the jews. Dont blame Mat Salleh. We have no proofs. Dont speculate. We only aggravate the situation and instigate more problems for ourselves. Dont overdo and dont exaggerate. Avoid confrontation like our nabi.
    I too fear world recession like the great depression 0f 1919 to 1923. it was unnecessary and avoidable.
    I agree with you the reasons for the collapse of Roman empire, British empire and now American empire. Look at their social decay; homosexuality, promiscuity and alcohol consumption. But they are spreading our way. OUR CRIME RATE is high but it is under reported. Last week I was robbed and hacked on the head by parang swinging robbers on Kesas Highway.I earned 5 stitches. Please read in this blog under Perkasa. It was horrifying. The banks are the most unsafe place. They should put up hugh signboard inside and outside the banks’BEWARE OF PEROMPAK TAILING YOU’
    amin tan

  17. Dearest Tun
    1-I seem to be obsessed with this belief that the USA will not be recovering from its economic crisis this time around.That it has finally reach the end of its lifeline.As a result the whole world will soon be experiencing whether we like it or not a situation unlike what we have ever experienced before.We will soon be entering unchartered territories.
    2-And this belief was arrived with confidence because whatsoever that has happened to their economy, the subprime crash whatever,I happen to have predicted it so accurately that my friends themselves were astonished.I have followed ‘the dotcom.crash’ very closely while many Malaysians were quite unaware of the potential disaster that crash could already have caused America then.
    3-The ensuing wars all made sense to me in view of the relevance to their requirement to seek control over nations with large energy reserves like Iraq,Afghanistan and Iran while at the same time exhaust their weaponry in their arsenal so that they can manufacture new more destructive weapons of mass destruction and boost their economy.Of course that too..to distract the American people from the actual state of their economy!
    4-Why must I keep on bringing this up and be considered as mongering fear and predicting doomsday that may lead to the actual fulfilment of that prediction?It has something to do with my sincere desire to warn the people of a highly possible disaster ahead of us that is coming which many people however doesn’t think possible simply because America is just too great a nation to collapse.
    6-A few years before the Roman Empire collapse there were already some people who had sensed that the end for them was nearing based on their knowledge of the rise and fall of civilizations.There was rampant corruption and injustices were all over in the Roman empire and people were revolting.The rulers however were suffering from this complacency syndrome,that they are just too powerful for anybody to destroy.All civilizations end because of this attitude of the rulers.
    7-There were many who didn’t think that the great Roman Empire would ever end.That idea was simply too ridiculous.They could continue with their evil and unjust ways and they would get away with it,as usual.After all the only available threat available then,the mighty Persians have just been defeated in that fierce battle near Mesopotamia.So there was really nothing to worry about.
    8-But just a few years after this joyous victory a new civilization suddenly arose from the wilderness of the desert and took over the whole Roman Empire of the East,all the way from Egypt to Mesopotamia.Soon after that the whole of the Roman Empire disintegrated.Rome suddenly became history.
    9-No matter how impossible, the USA can collapse the same way simply because there is a power greater than any of us in this world,i.e the power of the Creator.All injustices must end and all lies must be exposed because the truth shall prevail in the end.All the signs are clear that time for the world to know the truth is very very close at hand.
    10-For those who think that I am just a soothsayer or bearer of bad news hence negative well it is totally up to you.I meant well,sincerely. I just want the people to verify all the information regarding their investments thoroughly.After you have taken all the precaution then do whatever you think is right.There is always a bright side to everything.
    11-After you have taken everything The FED Chairman Bernanke says with a pinch of salt and have decided rationally based on his track record and credibility prior to the wall street crash in 2008 then by all means ‘Don’t worry,be Happy’.Life is too short to be too careful but only after due diligence and not just blind faith on good old America.
    12-But of course I may be wrong.I am only human.But Bernanke a few hours ago has just announced over CNBC that the QE3 is already on the drawing board!
    Thanks Tun.

  18. 1. Malaysia need world class facilities to attract foreign investors. We need to also maintain the building by world class standard. We seriously have to work on this matter.
    2. Firstly, building or not depend on our country’s economic policy and direction. If we are going to grow and attract the worlds’ best talents and companies, then we need to provide the right infrastructure. So, the success depend not on the building itself, but also by the country’s economic strategy and prospect.
    3. Government monitoring and intervention is very important to ensure there is no speculative nature and excessive risk taking to avoid bubble burst. So, government role is very critical when we are moving into fast lane as a developed nation.
    4. Today, Malaysian is proud of the iconic KLCC, KLIA, F1 etc…..it actually build national pride. We need to learn from some past mismanagement of assets and build on to growth in the future. We must grow as a nation and move forward.

  19. Salam YAB & diKasihi Tun,
    1. Pada pandangan saya projek Menara Merdeka 100-tingkat yang mahu dibina tidak akan membawa manafaat kepada KEBANYAKAN RAKYAT BIASA. Cuma segelintir rakyat yang sudah KAYA-RAYA yang akan mendapat manafaat. Lagipun dalam keadaan di mana ada banyak lagi bangunan/premis kosong (tiada penyewa) dan juga hartanah yang tidak terjual atau TERBENGKALAI, adalah amat tidak logik untuk menambah lagi permasaalahn ini. Lebih elok cari jalan penyelesaian kepada masaalah premis kosong sedia ada.
    2. PM yang melaungkan slogan RAKYAT DIDAHULUKAN, PENCAPAIAN DIUTAMAKAN mestilah berpegang kepada janji. Sila jalankan

  20. Dear Tun,
    Contrary to general opinion, I believe the 100-storey wawasan merdeka to be built by PNB is viable and destined for success. Please don’t be negative and fear-monger with regards to the strategic project to be undertaken by PNB. The project is viable simply because the location is prime, in the middle of Kuala Lumpur and not sub-prime location like Dabong in Kelantan or Masjid Tanah. It is strategically located and have all the modern facilities. It is to be built by PNB, a private entity, which has solid finances and sound cash flow. Of course, with all these strong factors behind any project, the entrepeneur has to be astute and capable. Time and again, Tan Sri Hamad has proven to be excellent in managing PNB. Not only is PNB has very deep pocket, but it is guaranteed by the government. The possibility of failure is very remote and negligible.
    Tun’s observations of many signboards ‘To Let and For Sale’ can easily be explained by the fact that some of these signboards are due to people moving houses or houses in new housing estate. Please don’t be mistaken and confused by abandoned and failed projects. Abandoned and failed projects are due to inevitable factors like poor and inexperienced management, dishonesty, weak finances and simple greed. These are not easily revived because the fundamentals are flawed, structurely unsound in their management like BMF fiasco in Hong Kong and the Bakun project – underquoted by Sime Darby. Every now and then, we will come across this kind of misfortune. Some pseudo enterpreneur try to venture into a project which they know nothing about, or which they do not have any background at all.
    The current economic climate in Malaysia is very rosy and promising under our new Prime Minister, Dato’ Seri Najib who is very wise and cautious in decision making and untainted by scandals and corruption. The present leadership of PNB with the support and endorsement by our wise Prime Minister should see the wawasan merdeka project to a glorious outcome. Our share market is buoyant and the outlook is positive. Bearing unforseen circumstances of world economic recession of untenable proportion, the 100 storey wawasan merdeka project would be successful in terms of demand and profitability. As a matter of comparison, just look at the two pieces of condominium and shopping complexes behind Subang Parade in Subang Jaya, the Empire building, where Tun has a ‘loaf’ outlet, and the Saujana Regency condominium. These two projects registered almost double the value upon completion in two or three years. Basically, this is due to the location and other positive factors.
    Other positive factors being, foreign investors, meaning Japanese retirees and middle eastern citizens making Kuala Lumpur their second home and of course there are also Americans, and other expectriate renting or buying the premises. People don’t mind about high prices as long as you offer quality logistic advantages and convenience.
    Some properties are riddiculously high in their price but there is always higher demand for such properties.
    Underlying all these arguments landed properties will always lead in terms of profitability in long term investments. This is simply because land is limited whereas the demand for limited land is ever greater and increasing. On the contrary, uninhabited land or far away jungles almost have no value because your co-inhabitant will be python or tigers, not suitable for human living. To all doomsday soothsayers and fear mongers and bearer of bad omens, there is always a brighter side to everything. Don’t worry, be happy.
    amin tan

  21. Dearest Tun
    1-I agree with ‘Joetamchi’,the Plaza rakyat is a terrible eyesore. This rotting incomplete structure is more a Plaza Nyamuk at the moment.If there is a great demand for these high rise commercial properties why has this project been abandoned?
    2-This Plaza Nyamuk is in my opinion anytime more accesible to the public than this Warisan Merdeka Tower being closer to Menara Maybank and the old City Centre with more transport services not forgetting the Star LRT that has a station annexed to it.
    3-Revive this project at all cost if that 100 storey tower must be realized.Otherwise the rakyat will be unsure if Najib is actually ‘Glokal’ or ‘Loco’.Or whether it is a business decision or actually just a political decision to make his contractor politicians happy to let him stay in power.
    4-Agree with comments by ‘kugaris’ on Objective Q good hints as to what is the direction our property supply should be,not these high rising monumental commercial properties but more of a mixed residential/commercial buildings that would make more sense.
    5-In my opinion with an already high 6 million pop of Klang valley there will always be a better demand for residential property vis a vis commercial property.So even if these exodus from Middle East don’t happen eventually there will be actual demand from the locals.
    6-After all if there is over time a really a good business growth these residential properties could be renovated to become commercial properties as we often see now how bungalows have been converted to become shop lots or showrooms.
    7-And also agree with ‘ kugaris/objective Q’ again,agriculture is God’s blessings to Malaysia.Let us give more focus and just encourage the rakyat to give their hearts and soul to this sector. It doesn’t make sense that a country so fertile and blessed with all that it takes to be still importing agriculture products.
    8-It seems we need a serious paradigm shift to start exploiting to the maximum what God have given us in abundance instead of just following what the others who do not have what we have, are doing.We should start having more confidence in ourselves.
    9-As long as we have whatever we need to live cheaply from our very own backyards we are already truly rich.Never mind if we are not high income.
    Thanks Tun.

  22. Salam Tun,
    1) I have met your son, Dato’ Mukhriz in Mecca about 2 weeks ago.
    2) I disagree with comments by Mr. Objective (from Middle East) to turn Malaysia into Agriculture state.
    3) There is no way we can be a full develop nation by 2020 if we do that. To achieve the full develop status nation is the main reason why Tun has changed Malaysia from Agriculture state to Industrial and Trading nation when he was in power.
    4) We should support what is Datuk Seri Najib is trying to do now which is to encourage Malaysians to do more researchs in Science and Technology so we can create something new to the world and this will leapfrog Malaysia to achieve the vision 2020 faster or on time.
    5) I believe Najib is always listening and considering Tun’s advice, feedback from people (rakyat) and also think inline with Tun.
    6) Once we achieve 2020 vision, all Malaysians will benefit because vision 2020 has everything including the good value and morale of the people preserved, we will be a different developed nation than it is currently the other developed nation has. Malaysia not just only fully developed but also its leaders view will be regarded and listened to by other G-8 countries which are currently not listening to any Muslim countries voice in any issue especially Palestine and Iranian issue.
    7) Malaysia need to be the world super power in terms of economy then we can help other Muslim countries more effectively, to be the world super power we cannot be Agriculture nation. Look at all full developed nation, NONE of them are Agriculture nation.
    8) Mr. Objective, I hope they will not be war in the Middle East again, it makes us Muslims in the world becomes weaker an not united.
    9) I hope all Middle East countries and also all Muslims countries in the world to be united and becomes one in its cause to defend and protect each other just like the non Muslim countries are doing for each other.
    10) If there will be a war in Middle east (hopefully not), Malaysia will try to help the war refugees in all it can but first you must encourage your leaders and all our muslim leaders to be united. We have the same Kiblat i.e. Baitullah, the same faith in Islam so we have to be working together to help each other and protect each other.

  23. More shopping complexes does not mean better economy, we dont have enough consumer . end up the same people who share in the existing cakes. Last time you made RM 10 today you made only RM 3, why cause we all share the same pieces of cakes. We should increase our economy , our malaysia made product, our system 1st instead of just building more big elephant building and complexes.

  24. What if Sudan been considered as a Malaysian opportunities that I had evacuated provided better IRR than in Msia, PETRONAS largest oversea investment of USD BILLION had been profitable. 800,000 bpd. After 10 years very rewarding. The only shortfall are due incompetency and the Incountry knowledge. Before it’s too late hope Tun can outline your finding of Sudan
    Tammam, halimsagrod sudan

  25. Dear Tun,
    This is my second year around in Sudan. Not with Petronas but by Allah swt. It is quite interesting how I get here. When your last visit here, my youngest brother sold you a PC that you donated to some needed institution. That was somewhere in late 1990 or early 2000. In 2009 on Mercy mission to Darfur I was there taught to be alone and was hosted by a group of military officer been trusted even handling the Elfasher airport. I believe you had given several tips to the current President and he believe in you too much. Last night when I sent a darfuri back to his home in Omdurman, the only name that pop out is Almarhum Tuanku Abdul Rahman and yours. They still sleep under the moon and stars like how I experience in El fasher last year. I met your son datuk Mukhriz before the next trip to Sudan at masjid negara and everyone are waiting for your visit or at least your son Mukhriz. Sudan is a land of great opportunities. If we understand and explore these opportunities the IRR is so much better than in Malaysia.
    El medani the capital state of ElGeziera with arable land of 800,000 km2! are welcoming namely Malaysian companies. Unfortunately after our agriculture minister 2 hrs+ speech at the Petronas complex that I attended, it the same old story of Malaysian agriculture default failures in many form. I wish to propose to the Malaysian government to leverage on the Dutch Government in the agriculture sector in Elgeziera after this refferrendum on the 9 January 2011. I will stay and see for myself and be back by January 20th onward. I will try and catch you again at Masjid Negara on one of the Jumaat.
    I wish to share my overview of this great SPATIAL SUSTAINABLE INTEGRATED DEVELOPMENT OPPORTUNITIES.
    Let see how many more failures, glut, recession, etc then will Malaysia force ti look elsewhere. Sudan in particular have so much to offer to Malaysian, why are these advantages been ignored? I hope you can what I don’t see here.
    Salam
    Halimsagrod

  26. Salam YAB Tun,
    A very interesting subject on real estate development. I for one support the 100 storey building. I just can imagine the area is going to be very busy when the construction starts. Many small companies will emerge to be the supplier and sub-sub contractor of the big ones. With the many opportunites and investment, many small companies will grow and get listed on BSKL. Look at the North South Highway, such a massive project manage to put more then 10 companies on BSKL. This time there will be at least 20 companies going to BSKL. The cake will become bigger, more opportuintes for all to involve in thsi massive projects. The government must make sure that they nurse the small companies give them more opportunites to grow and be the giant at the end of the construction period. Please do not give to the big giants of today like UEM or Gemuda, they are already big and can compete for the overseas projects, let them go abroad. I am looking positive, I am looking at the good side.
    Who will take up the offices? We are going for the develop country status, more foreign companies will come here to invest., one of which is to build up Malaysia as the Islamic financial centre. We need some what 30 big Islamic Investment companies to come here, and the whole area will be occupioed. Where will the Islamic funds which is in trillion US Dollars go, they need a place. Will they continue to be invested in New York and London. The old funds will stay there, but the new funds will find new financial centres, which Malaysia is hosting as one of them.
    Further I do agree with Mr. Objective comments on Malaysia as an agriculture hub. There is an area of lacking, compared to our neighbours Thailand or Indonesia. Besides palm oil rubber abd cocoa, the others are jaguh kampong only. Let go for more and be on the world map. We can build another 10 Sime Darby, IOI or KL Kepong. the 100 storey building will be fully occupied.

  27. Asslmkum Tun.
    A very interesting take on what may happen to Malaysia. After reading the comments, it is clear that this issue is of pressing concern to many Malaysians. However, the most interesting part of your article actually came from a commentator named OBJECTIVE. He is obviously Middle Eastern and has a point of view that I find most interesting…there is a possibility that war could escalate in the Middle East. It could happen. Much as I hate the prospect, the scenario there is far from being rosy. A belligerent and cunning Israel capable of “killing with a borrowed dagger”. A beleaguered Iranian President facing internal and external pressure. A sickly King in Saudi Arabia. A ravaged and molested Iraq & Afghanistan. A mass of Americans bred on a steady diet of Rambo like movies. Last and not the very least, a frightening military industrial complex of shadowy financiers who know that the only option to stay in $/POWER is to slide parts of the world into military conflict.
    Malaysia could become a haven for displaced Middle Eastern Muslims but it does not mean that we should build a tower of Babel like proportions to accommodate this potential exodus. Can’t we build scalable,meaningful and useful real estate? Take a look at Mid Valley. I have lived abroad and I have also travelled extensively. I am amazed at the development. Hardly an inch is wasted but there is no sense of crampness in the place. The place is a microcosm of Malaysia. A massive development with an Indian temple built into the development!
    Mr Objective, I am also a big believer in agriculture. I have no flair for real estate but I do know that people in houses need to eat! Let the investors/speculators play the game. I’d rather stick to growing things.

  28. it is good to have continuous project on housing or properties. But the not good one thing is the properties’ prices are not reflecting actual people salary and buying power. People need at least both husband & wife salaries more than rm5000 per month to buy a terrace house in klang valley and to sustain the maintenance & family. Who can afford to buy a million ringgit house? Royal families? CEOs with high-paid bonus (from people’s money)? Foreigners? So how about the other 25 Million people? Got to spend the rest of their life and their children life in paying taxes & interest rates? Unless you got a free land title from Perak government. Thank you Pemandu

  29. Assalamualaikum Tun,
    1. I bet there are many property developers who are against what you say. But I am on your side Tun and many others too. We can see these people who against these overdevelopment projects if we look at the wider public.
    2. Many thanks to you Tun, we already know how to build great buildings, high rises and great big cities overnight, loving the KLIA, twin tower, putrajaya, and etc.
    3. Straight to the point, If PNB wishes to continue building, build something like ACROS Fukuoka, Japan or more recently something like Solaris, Singapore, but build them better. Those will sure catch everyone attention. Rather than keep focusing on taller building, focus on a more sustainable/eco project, higher impact, high technology. Make a 30-40 storey building; it will still be able to accommodate offices and apartments while the cost of the cancelled next 50 levels might be channelled to new technologies in sustainable development.
    4. I

  30. “Shopping complexes are being developed sometimes next to each other. Surely it will cause the shoppers to be divided between them. There will not be enough to support all the complexes. Some will survive, some will die.”
    Dear Tun,
    I believe that developing shopping complexes close to each other promotes healthy competition and gives the purchaser the right to chose where he/she wants to shop. Isn’t this better for our economy? In any event, I’ve noticed that although there are many shopping complexes close to each other, they are still thriving lucratively and the whole place is abuzz with activities more so during the weekends, school and public holidays.

  31. Salam Sejathera YTM Tun & Bloggers sekalian,
    I support what you are saying a 100%. I had once asked all the Mega tower fans on a particular blog to ask themselves “What is the commercial benefit of building the tower?” And I then challenged them that if they do not have a valid answer apart from some ethno-pride, then as you had once said, “itu sokongan yang tak berkualiti.”
    When all this spare capacity hits the market, prices will drop. This will cause others to drop prices as well in a vicious race to the bottom.
    Furthermore, when the loans granted to developers start to go bad, banks will react by cutting down credit lines to the consumers, thus dragging them down as well.
    This is similar to what happened in the United States, but the order was reversed. The consumer housing sector dragged the commercial sector down. Nobody said that there needs to be a rule.
    The end result will be a banking crisis. Coupled with a Government Fiscal crisis ( 2012 – 2013), the end result will be three letters :
    I M F

  32. Dear Tun
    You are very right in all aspects.Why KL has to be the only city to have this kind of developments it is already a show case city in Malaysia why not other cities towns in Malaysia so as to balance it out.

  33. Salam 1 MALAYSIA…
    1957 ke 2057
    100 tahun merdeka… Lambat lagi tu eerkk…
    Jgn sampai Menara Apake Nama yang nak buat tu tak siap-siap dah….
    Ahhhh Sudah……
    Dulu……
    Plaza RAKYAT
    Yang DIDAHULUKAN tu pun….
    tak siap-siap….
    Dulu…….
    PLAZA RAKYAT……
    Kerja construction separuh tingkat…
    Tinggalah besi dok naik berkarat….
    Kemudian…..
    Berangan pulak Menara 100 tingkat….
    Ada perancangan depa nak buat….
    PENCAPAIAN DIUTAMAKAN
    Sekarang
    Yang mana satu nak diutamakan…….
    Banyak persoalan…?????

  34. Salam YAB Tun,
    Berapa ramai agaknya mangsa banjir sekarang ini yang berminat dengan topik kali ini.
    Setiap rumah dan bangunan yang pernah dibina oleh manusia pada masa awalnya adalah dianggap yang terbaik, terindah, terkuat, dsn.
    Piramid yang pada suatu masa dahulu pun sekarang ini sudah tidak berpenghuni dan tiada waris yang ingin menuntutnya. Manakala umat yang pernah memahat bukit untuk membuktikan kehebatan skil pembinaan mereka juga habis pupus dan lenyap akhirnya.
    Kita harus ingat bahawa kita cuma manusia biasa sahaja yang seharusnya membuat rumah diatas tanah atau setidak-tidaknya berdekatan paras tanah agar mudah keluar ikut pintu atau tingkap.
    Cuba perhatikan mangsa-mangsa bencana samada banjir, ribut, gempa bumi, gunung berapi, dsn. siapa diantara mereka yang mudah menyelamatkan diri sendiri. Tentunya yang paling miskin dan tidak berharta.
    Siapa yang dapat gerenti tidak akan berlakunya malapetaka dan bencana keatas diri kita pada suatu masa nanti akibat perbuatan tangan-tangan manusia pada hari ini.
    Wassalam.

  35. Salam YABhg TDM
    apa komen YABhg TDM dengan kenyataan Anwar & Azizah berhubung ketuanan melayu. harap komen sikit

  36. Assalamualaikum Tun.
    Bak kata Tun,Tun mengingatkan je,bukan duit Tun pun.Kalau negara ditimpa masalah,kita semua pun bermasalah jugak.
    Terima kasih Tun.

  37. Najib wants the super storey building based mainly on (projected) economic returns and somewhat add image to his lacklusture premiership.
    Taking PNB’s word that the mega project is going to make money (much later) but is it a high ranking investment now with due consideration of the oversupply of rental shop and office space? If at all why a superstructure?
    Understandably PNB is under the directive. All of them agreed. Ikut telunjuk, jaga periok nasi.
    Why the over-concentration of supertsructures in KL? Is it that’s all Malaysia? There is a moral issue here. Don’t the ordinary people in the non-urban areas require improved infrastructures? The returns may not be economically tangible but people will enjoy a healthier and better quality of life.
    Perlu diingat itu bukan duit PNB tetapi modal dari jutaan amanah pelabur dan ramai dari kampong. Duit desa untuk kemewahan orang bandar! Saksamakah?
    Go and immerse yourself in Sarawak, Sabah and the Orang Asli dwellings you will cry for your egocentric, money-crazed misjudgement.
    Who would be the potential occupiers of the 100 1Tower?
    PNB – 6 floors
    CIMB – 5 floors
    Sime Darby – 4 floors
    Felda – 3 floors
    Permata Malaysia – 1 floor
    MAS – 2 floors
    YTL – 1 floor
    Genting Gp – 1 floor
    Ekuinas – 1 floor
    Others …

  38. Salam bahagia Tun.
    All over the country, there are many half built and abandoned construction projects that have seen many changes of contractors and its local Gov. pumping in millions of ringgits to revive it, only to see it gone bust, and another contractor taking over and more monies pumped in, and then gone bust..the cycle seems endless. Endless of money spinning cycles that benefits political inclined individuals rather than the Rakyat who have pour in hard earned monies.
    The ruling Gov. need to weigh carefully its decision to allows or propose such mega projects to ensure the existing ones does not fade away and become an eye sore later on. The proportionate of the inflow of business and foreign investment must be greater than the needs to build such mega projects. In other words, the mega projects must commensurate with the inflow of FDIs to ensure that when built, it will be taken up by new owners, or tenants. This will prevent property gluts.
    For this Tun, I totally agree with you that we need to be careful on planning any mega projects just for the sake of simulating the economy or money spinning or whatsoever because politicians comes and goes, abandoned mega projects will stick out like a sore thumb every time it is reviewed.
    Salam bahagia Tun.

  39. Assalamualaikum Tun,
    Just to put the record straight…the sub-prime crisis was triggered due to banks given out loans to those whose credit worthiness is not good. This means those people that actually should not be given the loans in the first place by the banks, were given the loans.
    Thus the term “sub” prime…prime meaning those who are able to pay the loans, sub prime meaning lower quality of payable people. The banks were overzealous to earn interest income they were willing give loan to everybody. This loans are considered ‘assets’ to the banks since they generate interest income for the banks. What made it worst these loans were then repackaged and sold to other banks around the world.
    Now imagine if thousands of this sub prime loans were given to thousands of people, and these people, being lower income people, defaulted in their loans. This created massive Non performing loan (NPLs) in the billions of dollars. This greatly affected the US banks. Some of the big banks in the US were involved and some when bankrupt because of this. Clearly the banks did not practice prudence. Risk management was thrown out the window.
    As banks are considered the backbone of an economy, as they provide the loans for businesses to run, when the banks that were affected by it had a contagion affect and affected the whole financial system.
    As for a bubbly economy, on one hand I do agree developments has a positive side as they create spin offs but at the same time proper monitoring so that the economy does not turn into a bubble economy. Demand was go hand in hand with supply. There must not be oversupply just as there must be over demand. If supply were to increase, then methods must be done to increase demand and by demand I mean real demand as in people who wants to do business when buying the offices not for speculative purposes to buy and sell to make a quick profit.

  40. Ultimately, Mr.Mahathir your message is disappointing the Class F contractors.
    So much was build during your days:
    – KLIA
    – PTP port
    – Cyberjaya
    – Putrajaya
    – KLCC
    – NSE
    – Bangunan KWSP
    – Langkawi Airport
    – Langkawi Sky-Tour
    I believe Tongkah, UEM, IJM, TNB, TM and many companies benefitted.
    Or could we can point it that, ever since 2003, our Real estate industries had been a glut of Complex and High-Cost apartments, yet lack of low cost and affordable homes to wage earning Malaysians?

  41. DISCLAIMER TO ALL READERS:
    I hope my comments will not be taken out of context since I am NOT encouraging anyone to invest in real estate. I am merely commenting on the resolution of the overhang of unit supply within the real estate sector in Malaysia. I surely would not buy real estate right now, unless it is farming and agriculture land, but that is just me. So, please conduct your own due diligence and do NOT depend on my analysis for any decisions, these are merely my own personal opinions and thoughts.

  42. Dear YAB Tun Dr. Mahathir,
    Allow me to be the bearer of good news and bad news.
    The Good news is that while, your point is as usual spot on, and your observations are supremely accurate YAB Tun. I have a parallel scenario that might unfold, which leads me to be confident that Malaysia may be on the cusp of experiencing one of the fastest growth spurts in history of South East Asia.
    Please allow me to humbly explain my rationale.
    Fact: As a very conservative savvy investor I can confirm that KL exhibits all the symptoms of a real estate bubble, especially in the commercial sector where Malls are being built faster than palm oil trees. Indeed there is a definite real estate bubble in Malaysia. A huge bubble in fact. BUT, the bubble may Not burst at all, and here is why I think Malaysia is about to experience one f its biggest booms ever.
    The reason for that is WAR and Inflation!
    Unfortunately, War in the Middle East and Inflation Globally!
    Allow me to elaborate further.
    Every single research paper or white paper written by every single respectable think tank and specialized publications, that I have read regarding the likely potential of War in the Middle east unequivocally agree on one single point.
    It is going to be a Grand Mess of a conflict. Experts might be able to predict the starting point of the conflict, but not even the most experienced of Generals, Politicians or Economists could fully analyze how big of a mess it could get.
    This is going to be a real Grand Mess of monstrous proportions.
    So, how is that related you may ask to a real estate bubble in Malaysia!?
    Allow me to answer the question by presenting my answer through the following scenario.
    If you happen to be a middle-eastern,

  43. Dearest Tun
    1-I agree with Tua Cheng.You must have all the development during your power days to feed your contractor politicians so that they will have a reason to support you and Najib must also now do the same.If there are no development then people will say Najib is really only all rethorics,cakap tak serupa bikin.
    2-Just like Tun Pak Lah who is cemerlang gemilang terbilang in I don’t know what.Najib is now screaming One Malaysia while at the same time insisting that the Ketuanan Melayu is irrevocable.Until today all that Najib has delivered are only promises but nothing has actually been delivered yet.
    3-So you can’t blame him to desperately contribute to the property bubble.Afterall a politician is one who shake our hands before election and our confidence after that …..Whether many investors will get their fingers burnt is really nothing he can do.Its their money they should know what to do.A fool and his money is soon parted,its normal in life.
    4-Actually Allahyarham Tunku Abdul Rahman himself has been critical of you on all those high rise property boom that you had aggressively promoted during your days.Could you now be just as wrong as Tunku had been then?
    5-Anyway let it be Tun.Life is short so don’t worry be happy.Let Najib do whatever he must do.And don’t be afraid,Najib is no ordinary guy Tun, he is very ‘glokal’ person,have you forgotten?One who is so Local yet so Global.UMNO and the nation is in safe hands.I think.
    Thanks Tun

  44. Assalamu Alaikum Tun,
    Tun, talking about future means talking about something that may happen and might not happen in future. In short, talking about uncertainties. we can only predict what will happen in future based on information and facts and many other unknown factors that we have. The most important parts of prediction is how best are we in compiling and analysing the information. If we fail in this part, we will come out with a weak and incomplete conclusion. Even in many occasions past great world leaders had made wrong prediction dan decision eventhough they had been guided by sufficient information and strong analysis. So our leaders and expertise should do at their best before comming out with decision.

  45. Salam YB Tun,
    Saya ingin berkongsi pendapat berhubung pasaran hartanah terutama di kawasan saya iaitu Johor Bahru.
    Daripada pemerhatian saya:
    1) Harga pasaran hartanah di Johor Bahru adalah tinggi walaupun ianya tidak disokong atau selari dengan kerancakan aktiviti ekonomi di persekitarannya. Kalau di Kuala Lumpur, saya faham kenapa hartanah di sana tinggi, kerana ia disebabkan aktiviti ekonomi yang rancak.
    2) Walau pun ada beberapa kawasan penempatan yang tidak mendapat sambutan di mana premisnya tidak dapat dijual, harga pasaran hartanah tersebut masih tetap tinggi.
    3) Walau pun masih banyak bangunan yang tidak dijual (hanging), kerajaan masih memberi kelulusan untuk membina bangunan-bangunan baru sama ada komersial atau penempatan. Terlalu banyak bangunan kosong (atau majoritinya kosong) contohnya Lot 1, Bangunan di Jalan Storey, City Plaza, Danga City Mall, Landmark, Zenith dan banyak lagi.
    Sepatutnya pembangunan hartanah mestilah selari dengan pembangunan aktiviti ekonomi dan bukan hanya berdasarkan spekulatif.
    Mungkin pihak kerajaan terlalu terikut kepada satu teori yang mengatakan RM1 daripada bidang pembinaan akan menjana beberapa Ringgit peluang aktiviti ekonomi. Tetapi kita kena ingat setiap pembinaan mestilah berkualiti, bertepatan dengan permintaan, tiada unsur rasuah dan memberi manfaat maksima kepada rakyat jelata terutama yang berpendapatan rendah.
    Semoga YB Tun sihat sejahtera.

  46. Assalamualaikum Tun,
    The monetary system is a game. In any game there are inherently winners and losers, and ultimately there can be only one winner once the game ends. This game we are all playing cannot go on indefinitely as should be obvious to any rational being. In the money game, those with the money win and those without money lose. The problem is that games are not meant to be serious, they are, by their very nature, meant to be for entertainment purposes only. Having the survival of humanity based on the outcome of a game is just plainly insane.
    Krishnamurti repeatedly mentioned in his talks, the matter of being serious. If we want to change ourselves and hence the world, we can’t be playing a game. The game must stop and we must become serious. If we continue playing the game, (As quoted from Peter Joseph)…”we’re f***ing doomed”
    We “rational” beings have invented nuclear weapons and are prepared to use them to defend imaginary lines called “borders”. Half of the world don’t believe in global warming. We openly scoff cynically at donation collectors, we dump our waste everywhere. We find doing the little things like trying to conserve energy consumption to be annoying and not worth our time. We harvest shark fins and rhino horns, but we can’t be bothered to sign organ donor cards.
    Your premise depends on “rationality”, unfortunately it is in short supply. We’re stuck in a perpetual poker game, and nobody wants to leave the table and be left out.
    Reference : http://forum.lowyat.net/topic/1616890

  47. Moderation in any is the teaching of Islam.
    Our graphic is good to be constant and average.
    High peak,low peak is no good.
    Outside world,DON,T. BOTHER OF WHAT THEY,LL BE.
    MODERATIONS IS SUCCESS.
    Develop Nations,like Singapore want to be the best of every,
    LET THEM BE.There,ll be good on one hand, and no good on the other.We cannot have everything in life.
    To be contented,to have proper meal,clothing,shelter is success.
    Over Develop,over doing, will ruin life,will ruin nations.
    WHAT MOST IMPORTANT IS BE WE WANT TO BE.
    ALIBABA business must be abolished.
    Authority must be put into action,law must be implimented
    to clause ALIBABA as illegal.
    Alibaba ruins the Bumis positions.
    Invasions of foreign investment must have limits.
    They are here to INVEST, NOT TO INVADE.
    Consenting investment does not mean consenting Invasion.
    Bumi must be protected,curbs must be made,law must be highly implemented,to secure the Bumi,s and future.
    Damn the Malay leaders,who cannot read this.
    You are oblight the responsibility to understand this meanings.
    You are accountable for failure,
    You,ll be credit for success.

  49. Dear Tun M,
    The only group who will gain benefit from the project is a racist DAP supporters…they will complain and make noise..but at the end of the days this racist group of DAP supporter will make tans of money…becaouse they are the one who control the construction material and logistic…
    So all this racist Chinese who very kiatsu….that “I want yours but mine is mine” will benefit from this project…Remember anything that benefit Bumiputera is racist project but if everything benefit racist chinese it will be said as fair…
    So Tun don’t make racist chinese angry by opposing this project that will make them tans of money….you must support this project so they will have more business and make more money to sponsor DAP & Pakatan Kencing Rakyat to go against BN….
    Can’t you see that Tun….racist chinese did not oppose this project..coz they are counting the money……
    But Tun…not all chinese kiatsu mar…

  50. Dear Y.A.B. Tun,
    1. Tun’s view of housing is somehow timely for me and I’m sure for
    thousands of Malaysians out there who bought what they thought
    would be their homes but only to find out otherwise being
    cheated by developers.
    2. Till today there are no laws in place to protect us housebuyers.
    Sure there’s the S+P but alas it’s only a document that serves
    scruplous developers who cheat, lie and manipulate the system
    for self gain in cohorts with the corrupted civil servants.
    3. Allow me to state my case.
    4. I bought a condo unit in 1995 in Pinggiran Taman Tun Dr.
    Ismail and duly signed the S+P in 1996.
    5. Up till October 1999, I had through my bank paid the developer
    65% of the value of the unit then.
    6. The project was then declared abandoned by the Min. of Housing
    and then revived in 2007.
    7. The project will complete soon under a new developer but my
    problem now is that this new developer does not want to sign a
    supplementary agreement with me on my unit although I’ve agreed
    to pay the additional amount to the purchase price(20%).
    8. My repeated complaints to the Min. of Housing had not helped me
    at all.
    9. The Pengarah told me that there’s this strong and influential
    Dato’ who always use the name of a Sultan so much so that the
    Ministry is afraid to act! The Sultan is the owner of the land.
    10. I found out that the new developer is now selling off pre-sold units for the price of RM 450,000.00. It’s impossible if the people
    in the Ministry of Housing does not know about this.
    11. As for me being a first time house buyer and after waiting for
    15 years, I find it a real let down in my life as a Malaysian.
    12. That a document like the S+P is now treated like a piece of
    dirt by a greedy developer and the Government seems helpless in
    protecting the rakyat.
    13. I am not the only one Tun, there’s scores of others like me.
    What makes it worse is that this is Tanah Rezab Melayu and the
    Dato’ that is sullying the Sultan’s name is not Melayu!
    14. Tun don’t get me wrong. I am not racist but seeing 15 years of
    my hard earned money being lost just to the Developer(old and
    new) and the Bank so that they can make a buck is really too
    much too handle.
    15. I am now resigned and advised by the Ministry to go to the
    courts and spend more money and heartache but somehow my heart
    says it’s a waste of time. I just don’t have faith in the
    system anymore.
    I wish Tun and Tun Dr. Siti Hasmah a good life and may Allah bless the both of you. Salam.

  51. Dear Tun,
    May you always be in good health.
    1. I fully agree with you. However, when I read newspapers and watch news on television, there some parties who seem to be in denial. Probably, they are just protecting their interests.
    2. Some parties are aiming at government lands in Kuala Lumpur. They say it is better for the government to alienate the lands as the government needs money. As a matter of fact, in a forum held on the ETP Open Day in Kuala Lumpur about two months ago, Dato

  52. Money is not what we live for, we pursue the money just because we need the money to build something and to tell everybody that we are able to do it. Not to embrace money, but to embrace achievements.

  53. The property sector may experience an oversupply next year due to a burst of launches from developers that have been held back since the start of the global economic crisis.
    Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia (PEPS) president James Wong said developers would need to come up with

  54. QUOTE: “Some people say that even the Petronas Twin Towers are empty. Well they are not fully occupied. This is because of a policy to allow only prestigious corporations and institutions to have the Twin Towers as their address. In any case, Petronas has enough requests for space to decide to add extra space for the shopping complex and a forty-storey tower.”
    A prestige club… who decides whether a corporation or institution is prestigious or otherwise? What is the criteria? Maybe we should go through the existing list of occupants to see if every single one of them is indeed prestigious.
    Adding extra space for the shopping complex and a forty-storey tower when the existing premises is not fully occupied doesn’t make any sense at all. Where is the logic? Even if the existing premises is fully occupied, there is still no logic!

  55. ….kadang rasa iri hati juga….nak buat berbillion ringgit tapi saya beli rumah dah nak masuk 6 tahun terbengkalai…memang tak ada kaitan saya dengan tower merdeka tu…..tapi mata melihat dan hati menilai….

  56. Hello tun,
    I share the same view with you. I have been seeing properties around my areas that have been vacant for 2 yrs with no takers and it is worrisome to see so many semi-d vacant and all these within these last 2 yrs.then even my neighborhood area such as kinrara ouching is clearly going through an oversupply situation.
    As for wawasan I have been joking abbot it. But next year is election year so why are you surprise all these mega projects coming now?
    Tun I must thank you, I am always proudly telling people that though petronas was once the tallest building, it will always remain and should remain for a long time to come the tallest twin tower! Great vision tun!

  57. Ayahanda Tun,
    SE Asia
    HOME > BREAKING NEWS > SE ASIA > STORY
    1. Nov 30, 2010
    Najib defends 100-storey KL tower
    2. Malaysia’s Prime Minister Najib Razak defended a plan to construct a US$1.6 billion 100-storey tower in Kuala Lumpur. — PHOTO: AFP
    3. KUALA LUMPUR – MALAYSIA’S prime minister has defended a plan to construct a US$1.6 billion (S$2.1 billion), 100-story tower in Kuala Lumpur, saying it will contribute to long-term development of the city.
    4. However, Premier Najib Razak says the project’s owners must first ensure the building is ‘financially viable’ and will provide economic opportunities.
    5. Mr Najib told reporters on Tuesday that ‘it is a long-term project for 10 years and beyond, not for one or two years.’
    6. Critics have slammed the privately financed project in downtown Kuala Lumpur as an unnecessary extravagance at a time of belt-tightening and rising prices.
    7. Even former Prime Minister Mahathir Mohamad, who presided over several massive infrastructure projects during his time in office, has been critical. — AP
    Comment:
    If he thinks that his legacy and cronies are more important than the country 1st, let Rahman curse ends in PRU 13. If not, just call for snap election ASAP to prove us his mandate that people want him to be the PM.

  58. SALAM BUAT TUN BERDUA MOGA DIRAHMATI ALLAH S.W.T.
    1) PENDAPAT TUN TEPAT SEBAB SEBAGAI BAPA PEMBANGUNAN TUN SUDAH MULA MENYEDARI AKAN IMPLIKASI PEMBANGUNAN YANG ‘RAKUS’. RAKUS MEMBAWA ERTI DALAM PEMBANGUNAN YANG AKHIRNYA MEMBAWA PADAH KEPADA KEHIDUPAN MANUSIA.
    2) KES SUPRIMA DI NEGARA AMERIKA SEBENARNYA ADALAH UNTUK MENOLONG RAKYAT MISKIN MEMILIKI RUMAH-RUMAH. TETAPI DISEBABKAN ADANYA DASAR-DASAR SEPERTI ‘RIBA’ ATAU ‘BUNGA’ YANG BOLEH MENJERAT PEMBELI MAKA AKHIRNYA MEMAKAN BALIK DIRI SENDIRI.
    3) ADA BEZA MENGAUT KEUNTUNGAN CARA BETUL DENGAN MENGAUT KEUNTUNGAN BERLEBIHAN DARI HARGA ASAL. CONTOH SEBUAH RUMAH YANG DIJUAL MAHAL BERPATUTAN DENGAN KOS BARANGAN YANG TERPAKSA DITANGGUNG OLEH PEMAJU ,TETAPI ORANG TENGAH YANG MEMUDAHKAN CARA KEPADA HUTANG YANG MENGANDA DARI HARGA ASAL ADALAH BAGAI ‘RIBA’ YANG BOLEH MEMAKAN DIRI KERANA TIDAK HALAL.
    4) KENA FAHAM KONSEP SEUMPAMA HARAM OLEH ARAK ,BEGITU JUGA RIBA OLEH HUTANG. DIKATAKAN YANG MEMABOKKAN ITU HARAM BERMAKNA SEBARANG YANG BOLEH MEMBAWA KEPADA MABOK. BEGITU JUGA RIBA BUKAN HANYA BUNGA TETAPI YANG BERSAMAAN KAEDAH PERGANDAAN YANG TIDAK MEMATUHI HUKUM YANG TERCATAT DALAM AL-QURAN BOLEH MEMBAWA ERTI KEPADA ‘RIBA’.
    5) MABOK DI HARAMKAN KERANA MEMBAWA MASAALAH. RIBA MEMBAWA KEPADA MASALAH KEPADA PEMBELI MAKA SEBARANG KAEDAH YANG LAIN YANG MEMBAWA MASAALAH KEPADA EKONOMI MANUSIA YANG KITA KATA BETUL TETAPI RIBA OLEH ALLAH S.W.T. JADI ADALAH BAIK KITA IKUT SERATUS PERATUS SEPERTI YANG TERTULIS DALAM AL-QURAN.
    6) TIADA SALAH PADA PEMBANGUNAN TETAPI PERLU ADA PEMBERIAN BALIK KEPADA MANUSIA TAMPA MENGIRA DARJAT MISKIN ATAU KAYA LEBIH -LEBIH LAGI WANG YANG DATANG DARI BARANG YANG KITA JUAL YANG BUKAN KITA CIPTA. MAAF ADA BEZA PERKATAAN PEMBERIAN UMTUK RAKYAT SECARA PERCUMA DENGAN PEMBERIAN YANG TERPAKSA DIBAYAR KERANA IA LEBIH KEPADA MENJUAL BUKAN PEMBERI.
    7) KALAU TUN KATA PEMBANGUNAN YANG BERLEBIHAN MUNGKIN MEMBAWA KEPADA KENAIKAN HARGA TANAH YANG AKAN MEMISAHKAN ATAU BOLEH BERLAKU PENINDASAN KEPADA YANG LEMAH KITA FIKIRLAH APA FAEDAHNYA DIKEMUDIAN HARI.
    8) TERFIKIRKAH KITA MEMBERI PELUANG ORANG TENGAH PEKERJAAN KADANG-KADANG MEMAKAN DIRI SEHINGGA MEROSAKKAN INDUSTRI PEMBANGUNAN KERANA MEMYEBABKAN KOS NAIK DAN MEMBEBANKAN PEMBELI.
    9) ‘RIBA’ DAN ‘HARAM’ TELAH DICIPTA OLEH MANUSIA INI, SEBAB ITULAH PANDUAN AL-QURAN DIBERI KEPADA KITA UNTUK MENGELAK KITA SAMADA KE NERAKA ATAU KE SYURGA.
    10) PEMBANGUNAN KITA AKHIRNYA AKAN MUSNAH JUGA BILA TIBA HARI AKHIRAT.
    WALLAHU’ALAM

  59. Dear Tun,
    I don’t subscribe to your view on this subject. I think let the market forces determine the growth of building industry in Malaysia. The up and down of property prices are cyclical. But in the long run the supply and demand will achieve its equilibrium. I think our banks are very cautious about extending loan facilities to speculators. They should learn good lesson from the sub-prime crisis. If they don’t then the bankers deserve “leher mereka dipancung” !!!!
    With regard to the Warisan Merdeka project, I think PNB should proceed with the building of the 100-storey tower. You don’t have to worry about Petronas Twin Tower being outshined by the new tower.After all it is only one tower instead of two!!

  60. Tun
    Your comment on domestic investment is good because all the Perkasa drum banging are chasing the “pendatang and pelacur” from investing in Malaysia but instead invests overseas. Your directive to Najib can only happen if Perkasa and Umno Hissamuddin and other malay extremists stop their pendatang and pelacur abuse.
    Treat the chinese and indians as people.Tax or steal never mind but do not completely steal all. Umno is the chief of thieves. Send the submarine thieves, port thieves, to jail.

  61. YABhg Tun is so excited with the privatisation and development but he is more concern on the economics benefit that is carried out from the initiatives. He is more substance and realistic in nature by taking into accounts of histories and track records. I take his opinion as it is really important to the nation development.
    Manusia Biasa

  62. Salam TUN dan semua
    Saya pun ada menulis tentang harga rumah pada sekarang ini yang dikira amat tinggi, ibarat beli rumah sekarang untuk harga 10 tahun akan datang. Saya bersetuju dengan pandagan TUN mungkin berlaku bubble dalam property market kerana kelihatan ianya oversupply dan waktu yang sama harga melambung agak tinggi.
    Cadangan saya juga agar pandangan TUN agar rakyat Malaysia beranak lebih sikit dengan populasi sekitar 70 juta menjelang 2020 boleh di galakkan kerana ianya penting untuk menggerakkan ekonomi domestik.
    http://pantausblog.blogspot.com/

  63. Salam Ayahanda Tun,
    Thanks for highlighting this issue.
    I agree and fully support the build for the new City Center, Financial District and the 100 storey Merdeka tower but the site should be elsewhere and not focused in Klang valley only.

  64. Tun, you worry too much. Bad for your health.
    Anyway, i truely agree with Tun regarding the said topic.
    Take care Tun.

  65. Assalamualaikum.
    Gelembung harga dan penawaran harta tanah sememangnya amat membimbangkan ahli ekonomi kerajaan dan swasta. Ianya akan mengwujudkan kesan berganda kepada kejatuhan ini. Sememangnya terlalu banyak projek harta tanah komersil dan kediaman sedang dan akan dilaksanakan dalam masa terdekat ini. Kita telah melalui keadaan banyak projek terbengkalai pada masa lalu terutamanya semasa krisis 1997/98. KLCC berjaya disiapkan walaupun pada masa itu keadaan amat tidak memberangsangkan. ALHAMDULILLAH sebaik siap kita berjaya mengharungi kegawatan ekonomi dan KLCC berjaya mendapat penyewa sehinggakan ianya begitu meriah pada hari ini.
    Saya berpendapat projek warisan merdeka PNB ini seharusnya diteruskan kerana PNB sendiri memerlukan ibupejabat baru bagi menggantikan yang lama. Ini dengan sendirinya menjadikan projek ini berdaya maju kerana sudah ada penyewa walaupun PNB membinanya untuk kegunaan sendiri. Dengan kekuatan kewangan PNB saya percaya INSYAALLAH projek ini berjaya disiapkan sepertimana yang dirancangkan. Pelaksanaan projek ini memberi saingan yang hebat kepada pemaju dan pemilik bangunan sedia ada untuk menarik pembeli atau penyewa bangunan mereka. Ini tentunya menjadikan mereka lebih kreatif dalam pemasaran dan peka terhadap keperluan penyewa, seterusnya menjadikan Malaysia sebagai pusat operasi serantau kerana sewa bangunan bermutu yang tidak terlalu tinggi disokong pula oleh kos sara hidup yang sederhana, kualiti kehidupan yang tinggi, kestabilan politik serta keselamatan dan keharmonian sosial.
    Secara umumnya jika kita semua faham tugas dan tanggungjawab, kita mampu melakukan perkara yang luarbiasa apatah lagi perkara asas yang sememangnya keperluan dalam kehidupan kita. Untuk mengelakan para peniaga yang tidak bertanggungjawab mengambil untung secara berlebihan maka pelaksanaan GST hendaklah dilaksanakan secepat mungkin. Kecekapan kerajaan memungut cukai dan mengelakkan pembaziran dalam perbelanjaan akan menjadikan ekonomi kita mampu bertahan mengharungi gelombang globalisasi. Kecekapan faktor ekonomi ini seperti buruh, modal dan teknologi beserta insfrastruktur ini memberikan kita kelebihan yang tiada tandingan dalam persaingan ekonomi global masa kini. Terpulanglah kepada kita semua untuk menyahut ataupun menolak cabaran ini.

  67. dear tun,
    the cost of acquiring property in malaysia keeps on rising, and the wages of employees have been stagnant for ages. the govt initiative to drive malaysia into high income economy is laudable, but i doubt it, simply b’cos the politicians r obsessed with lousy politics which certainly will not bring anything good to rakyat.

  69. Dear Tun
    Thank You for your posting on the property bubble. Basically Tun is echoing most of the property analyst opinion. My personal opinion is that the bubble is mostly fueled by low interest in credit and clever marketing ploys by the developers.
    What does Tun think of the easy credit coupled with low interest being offered by bankers to the working people making them to be deep in debt. I was told not sure if this is true but Malaysians have the highest household debt in Asia.
    Thank You

  70. 14. By the way, Ayahanda Tun, Hong Kong is a Special Administrative Region economically for Mainland China and in year 2047, Hongkongers may choose whether they want to be controlled by Central Beijing Government politically and economically or they may ask for another 50 years of extension to remain as HKSAR to mainland China with Juriciary of Court remains under the Common Law of UK.
    15. Recently, HKSAR is appointed by Central Beijing Authority to trade yuan currency to the world and its yuan value will be determined by global market demand and supply which no single governmet in the world can manipulate politically including USA.
    16. In order to stabilize and cool of the value of high rise apartments in private sector, the HK Housing Ministry may open more lands to be tendered for housing purpose to cool down the inflated price due to genuine demand.
    17. From here, the government will be able to see the genuine demand vs supply curve for the property construction sector because those developers who tender such lands will be able to tell the Housing Ministry who are they and what are their housing portfolio; and if they have bad records and corrupted images wrote by HK paparazi, they will be turned down. What about Malaysia?
    18. Majority of Hongkongers have moved all their manufacturing Industries into mainland Southern China; and for those who want to import products from China owned by foreign entities, they may choose to import in yuan, dollar, pounds, Hong Kong dollar, Singapore dollar or euro.
    19. Hong Kong & Shanghai Bank Bhd is appointed as the sole banker to trade yuan as mentioned by one of the blogger (?); will there be more bankers will be allowed to trade yuan in Malaysia in 2011 due to supply and demand to avoid artificial inflated US dollar caused by the election of US Presidency by democrat and republican parties in 2012??
    20. Hongkong is the most transparent, accountable, advanced and developed free port connected to the world, hence, Hongkongers will be able to ride through the storm of quatitative easing of USA policy because Hong Kong has the choice to trade other currencies as well and at the same time, they can work closely with Macau (Portoguse) to develop Guangdong Province for the next 50

  71. Thank you for highlighting this issue sir. it is a major problem in KL. I’m an architect and I see these problems and the consequences to it. Why must all the project be focused in the central region. We should be expanding elsewhere and maybe the development might have a balanced growth. I support the build for the new City center, financial district and the 100 storey Merdeka tower but the site should be elsewhere and not focused in Klang valley only.

  72. Ayahanda Tun,
    1. Property Bubble oledi busted and our DM is Housing Ministry said the average unit price for housing has increased 3.3% only. How he gets this percentage? There are many property in KL are owned by high profile companies, are they doing well really?
    2. The bubble is oledi busted but BN will not admit and will try to cover up so that they can build more construction to cover-up their losses after US Sub-Prime Mortgate Meltdown.
    3. Malaysian politicians especially our Malays (I am not being racist) are copy cats and they only copied for the sake of copied.
    4. Chinese no longer trust MCA because MCA Politicians are more interested to protect their construction contract more then the people.
    5. The more BN politicians play politicking to cover-up their losses by building more buildings, the more people are fed-up with increased of living standard with stagnant gaji.
    6. Bullet train in Malaysia is viable and affordable?
    7. Malaysians are used to owned vehicles/ motorcycles on road once they come out to work especially in urban cities.
    8. Bullet train in Malaysia is viable and the pricing is competitive enough to wollap businesses from airlines through back-door?
    9. Even if Bullet Train is built, our people still opt for travelling with vehicles because we love the scenery and the states’ cultures traditions in the country.
    10. When Housing Minister, Chor Chee Heung, a Kedahan, even though he may know that MCA may not retain its power in Perak, informed The Star Group he estimated that 70% of the population will move to
    cities, who is he to determine the property market?
    11. To Singaporeans, they can adapt to higher pricing with higher salary because PAP Government and Businesses are separated since 1990 when Mr Harry Lee resigned as PM.
    12. When PM launched Little India in Brickfield, he gave us the impression to the property buyers that this area is mainly for Indians.
    13. KDN will import more Chennai to boost up this area knowing that they cannot afford the property?
    Good day Ayahanda Tun. There are many empty buildings in KL and PJ.

  73. Mr.Mahathir, from your statement above, honestly speaking I’m suprised.
    In fact very suprised, as your days of helming the Captaincy, it was mentioned that Privatised projects not a worry to the government.
    It was, the KLCC & Bakun which Private entities were awarded the contracts and funded privately. Not to forget PKFZ, PLUS Highways and etc.
    The arguments of that day, it was beneficial to spur the growth of the economy and the nation needs the progress.
    The arguments stated, that such development projects increase business,jobs and more positive traits.
    But for this case of 100storey complex, so it is not good Malaysia. There are gluts and possible bubble burst per your meaning.
    But the true equals that, many Ali Baba’s Contractors from UMNO, are short of work currently. In Selangor, Kedah, Kelantan and Penang, they’ve got no more, sure/guarantee contracts.
    PM Najib/UMNO President, has to create jobs for his supporters. How come, it is so unfair now?
    Many riches was created during your time, why can’t PM create such riches to his supporters. In cases, they may be Perkasa members as well.

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