In This Issue: What Does The Snake Year Hold For The Residential Property Market In The Klang Valley?...Page 1

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1 ISSUE 5, JAN/FEB 2013 In This Issue: What Does The Snake Year Hold For The Residential Property Market In The Klang Valley?...Page 1 Klang Valley Office Sector Review...Page 5 Klang Valley Retail Sector Review...Page 9 Upcoming Events in March & April Page 15

2 What Does The Snake Year Hold For The Residential Property Market In The Klang Valley? By Tang Chee Meng After the blistering and alarming speed at which residential property prices escalated in the years of the tiger (2010) and rabbit (2011), the property market in Malaysia began to show some signs of cooling off in the year of the dragon (2012), after being reined in by several measures introduced by the Malaysian government to head off a potential asset bubble which could be damaging to the economy. These measures included a 70% cap on loans taken after the second mortgage, an increase in the real property gains tax rate to 15% for those who sell within 2 years of purchasing the property and requiring banks to compute loan eligibility based on net income. This last measure in particular, resulted in a significantly higher rate of withdrawals by buyers after they found out that they can only qualify for a smaller quantum of loan. The other factor which may also have played a part in purchasers consciously adopting a wait and see attitude is the uncertainty caused by the long awaited general elections (GE 13). Despite all these, the property market still closed off 2012 on a positive note, with an expected increase in the number as well as value of transactions. The rate of increase in residential prices however, would have eased off from the pace of the preceding two years. Now that we have sneaked into the snake year, what will be in store for the residential property market? We are no soothsayer who can predict the future but we do think that the snake is unlikely to sprint like the tiger and the rabbit and will most likely slither through the year at a slower pace. The following is our take on how the residential property market will be like for A recent survey by REHDA (Real Estate & Housing Developers Association) indicates an improved property market sentiment and outlook for the first half of this year. Generally, property developers in the country are quite positive about the market and have plans to launch more projects below the RM 500,000 mark in the first half of this year. Whilst we would go along with the findings of REHDA s survey, our own view is that the first half of the year could be a slow, wait and see period for the property market. The first two months of the year will typically be slow due to the start of the new school year and the festive season and heavier spending on consumer goods and services. With GE 13 speculated to be held in March / April and in any case not later than June, some investors would probably hold on until the dust settles down after the elections before making substantial financial commitments on a new property. By the time the business as usual sign is put back on, it will be late April / May i.e. assuming that the political landscape is not drastically altered after the elections and investor confidence has not been shaken. We therefore feel that the first half of the snake year will be a period of missed opportunities. The action will begin to ramp up from April / May and barring any major upheavals overseas, should continue till the end of the year. Overall, 2013 should still end on a positive note although in terms of transactional volume and price increase, we foresee that the rate of increase will likely be tapering off from the past three blistering years. The better than expected increase in GDP for the last quarter of 2012 to 6.4%, which is the highest quarterly growth over the past two and a half years, indicates that the country s economic health is still sound, despite strong headwinds overseas. The massive spending under the government s Economic Transformation Programme (ETP) has resulted in an 18.5% growth in the construction industry in 2012 and will continue to provide the base for economic resilience in 2013 together with strong private consumption, whatever happens in Europe and U.S. This will set the scene for continued confidence in the property market and we foresee the property market to continue its growth momentum, albeit at a slower pace. Property prices are expected to continue to go up, driven by strong demand as well as inflationary pressures but the pace will be at a trot rather than a gallop. For this year, the market should see more projects launched for the middle class who has previously being neglected by both the Government and the private sector. The Government has now stepped in with the PR1MA housing schemes to 1 P age

3 provide more home ownership opportunities for first time home buyers in this category. Under the My First Home Scheme, those who meet the set criteria will be able to apply for 100% loans to help them finance their house purchase, the price of which should not be more than RM 400,000. Applicants must be aged below 35 and have a monthly income of not more than RM5,000 for individuals or RM10,000 for joint applicants. The market focus will shift to medium cost houses priced below RM 400,000 although in the major urban centres of Kuala Lumpur, Penang and Johor Bahru where land costs are higher, the range will extend to properties priced up to RM 1 million. To accommodate the affordable housing schemes, areas further from the city such as Rawang, Sungai Buloh, Klang, Kajang and Semenyih will witness more projects being launched. Smaller sized houses and apartments will become the flavor of the year as developers look into ways to bring costs down in order to price the houses below RM 400,000. Major developers such as SP Setia and Mah Sing have already staked their claims in the medium cost segment by acquiring land banks for new townships in these areas and are planning to launch their projects this year, if they have not already done so. The 150 km long Mass Rapid Transit system (MRT) has kicked off, with construction works having commenced on the first line, the 51 km long Sungei Buloh Kajang line (SBK line). This line will have 31 stations and serve a population catchment of 1.2 million people. Areas located at or close to the stations will stand to benefit from the improved accessibility and become more desirable for people who depend on public transportation to commute to and from work. As experienced in other cities which are served by a mass rapid transit system such as Singapore and Hong Kong, areas along the MRT line will likely to witness more development activities as well as an appreciation in prices. The extension of the LRT line will also bring similar benefits to the areas along which it runs. The proposed Kelana Jaya LRT extension will have 13 new stations and will link Lembah Subang Kelana Business Centre to Subang, USJ, Alam Megah and Putra Heights whilst the proposed Ampang LRT extension which will consist of 13 new stations, will commence from Sri Petaling and pass through Puchong, Kinrara and end at Putra Heights. On a similar but even more exciting note, the recent announcement of the proposed bullet train project connecting Singapore and Malaysia could have a tremendous impact on the way people live and work in Kuala Lumpur and Singapore. With travelling time between the two cities shortened to only 90 minutes, this may provide the impetus for Singaporeans to invest in cheaper properties in Kuala Lumpur as well as the other three states with stops (Seremban in Negri Sembilan, Ayer Keroh in Melaka and Muar, Batu Pahat and Iskandar Malaysia in Johor) even if they do not actually reside in them full time to commute to work in Singapore. It is however not inconceivable for Kuala Lumpur and the other towns to then become weekend retreats for Singaporeans who will be able to capitalize on the strength of their currency to live, play, shop and eat to their heart s content in a lower cost environment. Malaysian property developers could use this piece of welcome news to make extra forays into the republic to tap into this potentially lucrative market. Back in 2010 when the market was still in the infancy of its recovery from the global financial crisis, developers employed various strategies to boost sales of their projects including DIBS (developer interest bearing schemes). These low entry cost strategies proved to be very effective in drawing out cautious investors still shell shocked from the aftermath of the financial meltdown suffered by the world s largest economy and superpower. These schemes have now become so common place that investors have come to expect developers to provide them as a standard offering whenever they launch any new project. Nevertheless such schemes, if continued for too long, may contribute to a property bubble. Just as the Singapore government have pre-emptive measures and stopped such practices, Bank Negara may also follow suit to curb such schemes if they feel that the measures that they have introduced so far have failed to dampen property speculation activities. Developers have begun to look into other ways of enhancing the desirability of their projects and have introduced new design concepts to boost their competitive advantage. Concepts such as hotel inspired living, medically enabled homes, multi-generational living and an increasing adoption of green building certification have been introduced and we foresee more innovative concepts and packaging to make its way into new projects launched this year. The proposed high speed train project connecting Kuala Lumpur and Singapore is expected to attract development to areas around Seremban, Ayer Keroh, Muar, Batu Pahat and Iskandar Malaysia, by P age

4 TOWER D & E SOLD OUT! Now Selling Tower A, B & F Call us or visit our sales gallery for more info.

5 Klang Valley Office Sector Review Review for 2012 The cumulative supply of purpose built offices in the Klang Valley rose 2.4% in the first 9 months of 2012 to million sq. ft. Approximately 75.6% of the supply is located in Kuala Lumpur whilst the remaining 24.4% is spread over the rest of the Klang Valley. The growth in cumulative supply of purpose built offices in the Klang Valley from year 2008 to Q is shown in the graph below: G Tower offers facilities and services for offices, hotel and club. The building is Grade A, with hi-tech MSC compliant specifications that are smart and green built. Currently asking rental for office space is RM8.00 per sq. ft or higher. Net Lettable Area (million sq. ft.) Cumulative Supply Of Purpose Built-Offices In Klang Valley Q Kuala Lumpur Other parts of Klang Valley (Source: NAPIC / HBM Research) * Other parts of Klang Valley - Selangor State excluding Kuala Selangor, Rawang and Semenyih. As at the first half of 2012, there were 17 office projects in the pipeline which will add another million sq. ft. of space to the market. 7 of the buildings are located within the Golden Triangle whilst 1 is located within the Central Business District and the remaining 9 within the City Centre. (%) 95 Occupancy Rates of Purpose-built Office in Klang Valley As one of the prime buildings that is located within the KLCC area, Petronas Twin Towers (Tower 2) maintained the highest rental of between RM9.00 per sq. ft. to RM12.00 per sq. ft Q Kuala Lumpur Other parts of Klang Valley (Source: NAPIC/HBM Research) The occupancy rate of the office sector in the Klang Valley has improved to 80.24% in Q after the declines since 2009 (87.17% inand 84.24% respectively in year 2009 and Occupancy rates declined further to 79.64% in year Year Occupancy rate (%) (Q3) P age

6 Office Transactions in Klang Valley, Building Location NLA (sq.ft) Transacted Price 2010 RM Million RM per sq.ft The Icon (East Wing) Wisma Volkswagen Wisma Time Menara Pan Global Menara UOA Bangsar (Tower B) Wisma KLIH Sunway Towers Menara Olympia Wisma UOA Damansara II Dana 13 Menara PKNS Wisma Goodyear 2011 Tower 1, Avenue 7 Tower 1, Avenue 5 Wisma Goldhill Amcorp Trade Centre Menara Multi-Purpose CIMB Building Pudu Plaza , Jalan Cheng Lock Lot 45 & 46, Jalan Syed Putra Menara TSR Tower 8, Avenue 5 Bangsar South (Source: APIC/HBM Research) *GFA - Gross Floor Area The transaction market for purpose-built offices in the Klang Valley appeared to be more subdued in the first half of this year compared to 2010 and During the period 2010 to first half of 2012, the highest transacted price of purpose built offices recorded was for Tower 1, Avenue 5 in Bangsar South. This office building was transacted at RM37.5 million or RM1,010 per sq. ft. based on net floor area. There were only 4 purpose-built office buildings sold in the Klang Valley during the 1 st half of 2012, within a price range of between RM364 per sq. ft. and RM938 per sq. ft. Office rentals were generally stable for Klang Valley. Average asking rentals of purpose-built offices in Kuala Lumpur range between RM5.00 per sq. ft. and RM12.00 per sq. ft. Only a few selected prime office buildings for example Petronas Twin Towers 2, Menara Maxis and G Tower, have asking rentals of RM8.00 per sq. ft or higher (These buildings are Grade A, with modern facilities and located within the KLCC area). Petronas Twin Towers (Tower 2 maintained the highest rental of between RM9.00 per sq. ft. to RM12.00 per sq. ft. On the other hand, prime purpose-built offices in Petaling Jaya are being rented out at between RM3.50 per sq. ft. and RM4.50 per sq. ft. Since the revision of location requirements for MSC Malaysia companies took effect, office buildings located within the MSC Malaysia Cybercentre boundary have increased their asking rentals including Mid Valley City s Menara IGB, Centrepoint South and Centrepoint North whereby the asking rentals now start from RM5.50 per sq. ft. Major projects that will boost the office sector within Klang Valley are the KL Eco City, Kuala Lumpur International Financial District (now renamed as Tun Razak Exchange (TRX)), New MITI and KL Metropolis, Menara Warisan KL and Damansara City 2 in Pusat Bandar Damansara. Jalan Tun Razak Off Jalan Bangsar Jalan Tun Razak Off Jalan Raja Chulan Bangsar Jalan Bukit Bintang Jalan Ampang Jalan Raja Chulan Jalan Changkat Semantan Subang Shah Alam Kelana Jaya Bangsar South Bangsar South Jalan Raja Chulan Petaling Jaya Jalan Munshi Abdullah Jalan Hang Lekiu Jalan Bugis Jalan Cheng Lock Jalan Syed Putra Mutiara Damansara 278,182 43, , , ,298 55, , , ,850 GFA :333, , ,286 46,100 GFA : 37, ,000 Na 541,424 GFA : 51,990 Na GFA : 86,329 GFA : 87,378 30, , Rentals have generally remained stable and newly completed buildings with improved specifications especially GBI-certified and MSC status buildings are able to command higher rental rates. However these buildings are taking a longer time to fill up with tenants Na Na Na Market Outlook for 2013 Demand for office space in the Klang Valley is expected to remain positive in 2013 with the implementation of the various economic initiatives under the Greater Kuala Lumpur NKRA for instance, InvestKL s government supported initiatives to attract 100 MNC s to set up their Operational Headquarters (OHQ), International Procurement Centres (IPC), Regional Distribution Centres (RDC) or Regional Shared Services in the Klang Valley. The unexpectedly strong 6.4% growth posted by the Malaysian economy in Q pushed overall GDP growth for the full year to 5.6% and indicates that the economic fundamentals are still sound and the country will likely continue to ride on the momentum through The massive spending under the Economic Transformation Programme (ETP) will provide not only support for the economy and take up any slack in export growth but will also create demand for services which will lead to higher demand for office space. However, it is noted that the global economic recovery still not taken firm root and the anticipated substantial increase in supply of office space in the Klang Valley may start to put pressure on both occupancy and rental rates in In particular, the significant supply of office space that will come onto the market with the implementation of the various projects being undertaken by the government as well as the private sector viz., the 100 storey Warisan Merdeka Tower, the TRX financial centre, the NAZA Matrade expo centre development and SP Setia s KL Eco-city, poses some concern to industry players as the supply of office space will be significantly boosted with the completion of these projects and may lead to a glut unless there is a quantum leap in the demand for office space over the next few years. 5 P age

7 GONG XI FA CAI FEVER IN TOWN! 21 Feb: Henry Butcher KL 25, Jalan Yap Ah Shak Henry Butcher ushered in the New Year with lion dance performance and appreciation buffet dinner at the main office in Kuala Lumpur for all staff in Klang Valley. The rain that evening didn t hamper the lion dancers, who not only move perfectly to the beat of the drums, but also got very creative with the offerings of fruits and greens. 23 Feb: AraGreens Sales Ara Damansara HSB Development Sdn. Bhd., the developer of AraGreens project, organised a Chap Goh Mei lunch celebrations at their sales gallery in Ara Damansara, complete with lion dance performance, Bian Lian (face changing) show and magic show. HSB Development CEO Seth Lim and HSC Healthcare Sdn. Bhd. Chairman Dr. Lim attended the event, together with over 200 AraGreens clients and guests. Other programme highlights include Buyers Get Buyers incentive and opportunity to win prizes at their Wheel of Fortune game. For more pictures, visit

8 Southgate Ushers in the Year of the Snake The Joint Management Body (JMB) of Southgate held its first Chinese New Year celebrations or Chap Goh Mei celebrations at Southgate Kuala Lumpur on Saturday, 23 February The event was organised by Henry Butcher Malaysia Sdn. Bhd. (Building Management) and Henry Butcher Real Estate Sdn. Bhd. (Leasing), appointed property manager and leasing team for Southgate respectively. The highlights of the event included Lion Dance, Bian Lian (Face- Changing), acrobatic performance by the Shanghai Acrobatics Troupe and Guzheng recital. Lucky draw sessions were carried out throughout the entire event with more than 50 prizes sponsored by the tenants and business owners of Southgate. Chairman of the JMB, Mr Kerk Han Meng (who also the Chairman of Technoplx and CJ Polymers Sdn. Bhd.) shared that demand for office space in the Klang Valley is expected to remain positive in 2013 with the implementation of the various economic initiatives under the Greater Kuala Lumpur NKRA. We are glad to see the occupancy rate in Southgate has been improved greatly with the presence of professional property manager and leasing team under Henry Butcher, and we have confident that Southgate will be fully occupied with our JMB ongoing effort and Henry Butcher s expertise, says Mr Kerk. Southgate, an upcoming commercial hub in Sungai Besi, is set to benefit from the overflow of two colossal projects namely the RM26 billion Tun Razak Exchange and the 495 acres Sungai Besi Airport redevelopment a.k.a. Bandar Malaysia under the Greater Kuala Lumpur development plan. This commercial centre features creative work spaces with modern facilities and an atrium with F&B retail shops with the highest standards of a well-planned business park. Southgate s contemporary and stylish concept also makes it an ideal location for niche boutiques, fitness centre and specialty stores. Restaurants, sidewalk cafes, and bistros as well as banks are present to support these business and visitors. Current tenants include Hong Leong Bank, Nissan, MMC Gamuda, Zalora, Nichii, Pappa Rich, and others. More about Southgate Positioned at the intersection of Jalan Dua and Jalan Sungai Besi, this integrated commercial hub spreads over 5 acres freehold land is conveniently located to all the local amenities (Chan Sow Lin LRT station, Pudu Police Department, Jalan Pudu Fire & Rescue Department, City Medical Centre, Prince Court Medical Centre, and Hospital Tung Shin) with good transport links to and from the city centre (Jalan Tun Razak, KL- Seremban Highway, Federal Highway, Besraya Highway, Kesas Highway and Middle Ring Road). This busy location benefits from a high volume of passing vehicular and pedestrian traffic and a good surrounding residential catchment area (Cheras, Bandar Sri Permaisuri, and Salak Selatan). There are five blocks at Southgate; its two main blocks, Apex (offering office space between 5,000 sq. ft. and 50,000 sq. ft.) and Corporate which are highly visible from Jalan Dua and Jalan Sungai Besi respectively, and three shop-office blocks, Vox, Vivo and Vertex (offering office space between 581 sq. ft. and 1,690 sq. ft.) which enjoy interconnectivity through the wide, airy atrium space. Residents and visitors will appreciate the alfresco ambience, ample basement level parking spaces, high speed wireless internet hotspots, 24 hours security surveillance, as well as the artistic landscape and water features within the buildings. For leasing enquiries at Southgate, please contact Ms. Carmen Liew at / or carmenliew@henrybutcher.com.my. Website: 7 P age

9 Klang Valley Retail Sector Review Existing Supply The cumulative supply of retail space in the Klang Valley amounted to million sq. ft. as at Q with the bulk of it situated within Kuala Lumpur with a total net lettable area of million sq. ft. This is a 4.4% increase compared to the supply in year Cumulative Supply Of Retail Space In Klang Valley Net Lettable Area (million sq. ft.) Q Kuala Lumpur Other parts of Klang Valley (Source: NAPIC/HBM Research) *Other parts of Klang Valley include Petaling Jaya, Subang Jaya/ Sunway, Damansara, Kelana Jaya, Puchong/ Sg Besi, Ampang, Selayang and Kepong. Future Supply Currently 23 retail malls with a total net lettable area of million sq. ft. are under construction in KL / Selangor and are expected to be opened from year 2013 to These malls are tabulated below:- S/N Name Location Nett Lettable Area (sq. ft.) Nu Sentral KL Sentral 650,000 2 Cheras Sentral (former Plaza Phoenix) Cheras 400,00 3 Encorp Strand Mall Kota Damansara 260,000 4 KLIA2 Sepang 350,000 5 Gateway@KLIA2 Sepang 350,000 6 D Pulze Cyberjaya 300,000 7 Market Pudu Jalan Pudu 250, Quill 15 Jalan Sultan Ismail 1,000,000 9 Sunway Pyramid 3 Bandar Sunway 62, M Square Shopping Centre Puchong 186, Damansara Uptown Mall Damansara Uptown 385, Empire City Mall Damansara Perdana 1,000, Atria Shopping Gallery Damansara Jaya 660, Glomac Damansara Mall Damansara 300, i-city Mall Shah Alam 1,000, The Wharf Puchong Puchong 303, Pavilion KL Phase 2 Bukit Bintang 300, Bangsar Trade Centre Plaza Pantai 100, Da:men USJ 400, Jaya Shopping Centre PJ 300, Sunway Velocity Cheras 1,000, IPC Mall Cheras 1,000, Melawati Mall Taman Melawati 800,000 TOTAL 10,956,000 Nu Sentral, KL Sentral 8 P age

10 Demand Analysis Occupancy rate (%) Occupancy Rate for Kuala Lumpur & Selangor Shopping Complexes, Q Q Year Malaysia Kuala Lumpur Selangor Overall occupancy rates of retail malls in the country declined marginally during the third quarter of 2012, registering at 78.8% compared to 79.5% for 2011 and 80.6% for The increasing supply of retail space appears to be beginning to have an impact on occupancy as well as rental rates, with newly completed malls taking a longer time to fill up with tenants. For Kuala Lumpur and Selangor, occupancy rates of retail malls remained steady during 2009 and 2010, registering at 84.2% and 89.0% respectively. However, by Q3 2012, occupancy rates of retail malls in Selangor recorded a slight decrease due to the addition of more retail space on the market. Occupancy rates of retail malls in Kuala Lumpur as at Q stood at 82.3% after a slight decrease in Capital Values A total of 10 retail malls in the Klang Valley were reported to have been transacted between 2010 and malls were transacted in 2010 at prices ranging from RM378 per sq. ft. for suburban malls (Selayang Mall) to between RM1,561 per sq. ft. and RM2,115 per sq. ft. for retail malls within Kuala Lumpur City Centre. Sunway Pyramid was reportedly transacted at RM1,265 per sq. ft. in 2010 whilst Pavilion Mall was acquired by Pavilion REIT in 2011 at RM2,390 per sq. ft. Retail Transactions in Klang Valley, Building 2010 Selayang Mall Sunway Pyramid Part of Sg Wang Plaza Starhill Gallery Lot 10 1 Mont Kiara* 2011 Putra Place** Pavillion Mall The Gardens Mall Citta Mall Location Selayang Bandar Sunway Bukit Bintang Bukit Bintang Bukit Bintang Mont Kiara Jalan Putra Jalan Raja Chulan Mid Valley City Ara Damansara Net lettable area (sq.ft) 338,515 1,685, , , , , ,000 1,335, , ,467 Transacted Price RM Million RM per sq.ft , , ,265 1,607 2,115 1, ,390 1, (Source: NAPIC/Henry Butcher Malaysia Research) *1 Mont Kiara consists of a 20 storey office tower block and a 5 storey retail mall. **Putra Place consists of The Mall, Putra Place, The Legend Hotel and 1,323 carpark bays. Rental Rates Rentals of retail space in shopping complexes were generally stable with minimal movement recorded over the last two years. The rental rates of some of the major retail malls within Kuala Lumpur City Centre are tabulated below:- Name of Retail Mall Lower Ground Ground First Second Third Rental Rate (RM per sq. ft. per month) Pavilion Sg Wang Plaza BB Plaza P age

11 Market Outlook for 2013 The retail property market in the Klang Valley was stable in 2011 through to the first half of 2012 though there were uncertainties with the impending general elections in Malaysia, the European debt crisis and global economic slowdown as well as tightened credit measures introduced by Bank Negara to address the issue of high household debt. Some notable events in the retail property market over the past two years include the launching of Pavilion REIT in 2011 and IGB REIT in These two REITs were valued at RM3.19 billion and RM 4.6 billion respectively. A more recent event was the acquisition of Carrefour s hypermarkets by Aeon Japan and their rebranding as Aeon Big. A number of key retail players like Parkson and Aeon Malaysia have announced plans to increase their presence throughout the country whilst some of the leading malls are also embarking on expansion plans. These include Pavilion Phase 2, Sunway Pyramid 3 and Suria KLCC extension. Although these will add substantially to the supply of retail space in the Klang Valley and exert some pressure on overall occupancy rates, these malls which have been able to attract high footfalls should be able to fill up the space and maintain, if not improve on their overall position in the market with the new retail attractions that they will be able to bring on with the additional space. Going forward, if the nation s economy is able to sustain its growth, the retail industry should retain its growth momentum although overall occupancy rates may come under increasing pressure with the opening of the many new malls currently under construction. The development of Phase 3 of Sunway Pyramid consists of both retail and hotel properties. When completed in mid-2014, this will bring in additional retail space of 62k sq. ft., 435 new hotel rooms and some 760 new car parking bays. Sunway Pyramid 3 is estimated to attract 111k new visitors. With the addition of 140,000 sq. ft. of net lettable area, Suria KLCC now boasts 1 million sq. ft. of shopping, leisure and entertainment mix. The iconic shopping mall features more than 320 specialty stores and enjoys a steady occupancy rate of over 99%. IGB REIT was launched in 2012 at the value of RM4.6 billion with assets comprising Mid Valley Megamall and The Gardens Mall. Currently it is the largest retail REIT in Malaysia by asset size. In November 2012, AEON acquired the operation of Carrefour Malaysia with an enterprise value of 250 million. AEON is now the second largest retailer in the nation with the combined sales from AEON Retail stores (formerly known as JUSCO) and current Carrefour outlets. Pavilion KL Mall is one of the premium shopping centers in the heart of golden triangle of Kuala Lumpur. Located at one of the busiest streets in town, Bintang Walk area of Jalan Bukit Bintang, Pavilion KL Mall is well positioned to be a key shopping destination for tourists. 10 P age

12 MALAYSIAN & SOUTHEAST ASIAN ART AUCTION SUNDAY 21 APRIL 2013, 1PM SIME DARBY CONVENTION CENTRE, KUALA LUMPUR Ballroom 3, 1A, Jalan Bukit Kiara 1, Kuala Lumpur, Malaysia PENANG PREVIEW March 2013, 11am - 7pm a2 Gallery 27 Lorong Bangkok, Penang, Malaysia. SINGAPORE PREVIEW 4-7 April 2013, 11am - 7pm Helutrans Artspace 39 Keppel Road #01-05, Tanjung Pagar Distripark, Singapore KUALA LUMPUR FULL VIEWING April 2013, 11am - 7pm White Box, MAP@Publika Level G2-01, Block A5, Dutamas, 1 Jalan Dutamas 1, Kuala Lumpur, Malaysia. ABDUL LATIFF MOHIDIN Mindscape, 1983, oil on canvas, 182cm x 91cm, estimate RM 250, ,000 25, Jalan Yap Ah Shak, Kuala Lumpur, Malaysia. t f info@hbart.com.my Enquiries: Chris Tay chris@hbart.com.my

13 Malaysia My Second Home (MM2H) Programme by Bao Fun (MM2H) Sdn. Bhd. Bao Fun (MM2H) Sdn. Bhd., a new service arm under the Henry Butcher Malaysia group, is established to assist foreigners who wish to either retire or invest in Malaysia. When our clients choose to apply for MM2H status through us, our service starts from the comfort of our clients home wherever they are, right up to finding a new home and settling down in a new country. As a Licensed MM2H Agent by the Ministry of Tourism Malaysia, we work closely with the Ministry by taking part in foreign and local expatriate and tourism exhibitions. MM2H participants are allowed to invest and participate in business, subject to existing Government policies, regulations and guidelines which are in force for the relevant sectors. They are also allowed to apply for a special work permit (up to 20 hours a week) to work under certain critical sectors subject to the prevailing guidelines of the Immigration Department of Malaysia. Bao Fun (MM2H) truly believe Malaysia is a beautiful country to work, live and play, without compromising one s need to feel more at home; and hence our concerted effort to promote Malaysia as a whole to the world. For enquiries about MM2H application and requirements, please contact our Ms. Carrine Koay at or baofunmm2h@gmail.com. The MM2H programme was introduced by the Government of Malaysia to allow citizens of all countries that are recognized by Malaysia, regardless of race, religion, gender and age to stay in Malaysia for a period of 10 years and renewable thereafter. It initially started out as the Silver Hair programme in year 1996 to attract foreigners but was later rebranded as the Malaysia, My Second Home programme or in short MM2H in year 2002 with many conditions being relaxed compared to the previous programme. Participants are welcome to stay here for 365 days a year without having to leave the country. There is also no minimum stay requirement and participants are free to enter and leave the country anytime. To qualify, participants must fork out at least RM150,000 (RM300,000 for those below 50 years of age), which will be kept as a fixed deposit at any banking institution in Malaysia. Alternatively, participants who have purchased and fully-owned residential properties (at RM1 million and above) in Malaysia are only required to open a fixed deposit account of RM100,000 (RM150,000 for those below 50 years of age). 12 P age

14 Eating Out in Cambodia A Delightful Experience By Issac Neng Amazing meals at surprising low prices that s how I wish describe my maiden trip to Phnom Penh, the capital and largest city of Cambodia. A self-confessed night owl, I was inundated by the vibrant nightlife and numerous bars and pubs located along the bustling banks of the Mekong River. Towers of beer in R&B and Hip Hop bars, Rock N Roll live band, a glass of imported wine or champagne with some Jazz and Oldies playing in the background, or even a cup of flat white with Gelato - there was always something, for everyone! I had the Angkor beer, the national beer of Cambodia, which many claim as the best beer in the region. I was immediately localised and hooked! Rich golden colour, light hoppy aroma and full bodied with a hint of bitterness, the beer comes down my throat smoothly and feel very enjoyable to drink. A glass of Angkor beer only costs 0.5USD, a glass of rum costs 3USD and a glass of cocktail costs 4USD. Imported goods in Cambodia are cheap as the government imposes low import duty on them. Liquors at the grocery store next door are priced lower than those sold at airport. The land size of Phnom Penh is about 678 square kilometres, roughly 0.37% of Cambodia s total area and populated by over 1.5million people. Being a small town, I was surprised by the number cafes and restaurants available to the locals as well as tourists. One can easily dine on anything in the town centre, from the local Cambodian Lok Lak to Mexican Fajitas. Going along the recommendation of my two other friends, we went to Aria D Italia Pizzaria for some real pizzas. We ordered the Bruschetta, Parma ham Pizza and Marinara pasta. For desserts, we had Panna Cotta and Tiramisu. Total bill = 21USD. I believe this meal could have easily cost a minimum of RM100 back in Kuala Lumpur! Still looking for Western dining experience, I dropped by Java Café and Gallery. Amidst a backdrop of artworks including local paintings and sculptures, this café serves a wide variety of salad, sandwiches, and their specialty burgers and coffee. Lovely Bruschetta Panna Cotta I was totally satisfied with their bacon gruyere cheese burger slices of crispy bacons and chunks of melted Swiss cheese sandwiched between warm, toothsomely brittle buns, and accompanied by generous servings of fresh-cut fries, lettuce and tomatoes slices - absolutely yummylicious! A cup of flat white was served right after my burger. I have to say their coffee is one of the best in town. My friend, Ryan had the local Cambodian coffee, which is a dark coffee without milk. In fact, the taste is thick, rich and definitely worth a try. Bacon gruyere cheese burger Moving on, the local fare was simply delightful. I was introduced to an openair Cambodian food court that offers midscale dining experience with a tropical ambience. The kitchen and food counters were located at the middle of the food court and each counter served different type of dishes. Fresh ingredients were placed at the front of each counter. What caught my eye were the heaps of skinless and plump frogs, ready to be cooked to your preference. These edible frogs can be easily found in Malaysian night market. But it was the first time I see an open display of fresh frogs! Do try the local deep fried frogs served with pepper lime sauce. Fresh frogs on display I tried their local ginger fish dish with rice noodle. This dish can also be served with eel or chicken. The ginger and fish were cooked in a wholesome soup, and served with fragrant herbs, such as mint, lemongrass, Kaffir lime and coriander. Dining in Cambodia is such a pleasant activity due to the wide menu selections and affordability. Cambodia was once part of the colony of French Indochina from 1863 to One of the French influences on Cambodian cuisines includes the popular baguettes bread. There are many street stalls, selling fresh baguette, filled with Laughing Cow cheeses, pieces of roquette, meat slices, butter and sauces at only 1.5USD. They are simple, yet tasty. The high influx of expats in recent years has brought different culture and dining experience into Phnom Penh. Due to the low cost of living and low import tariff, the price of goods and services in the city is one of the lowest in region. Based in Phnom Penh, HB Consultancy (Cambodia) Pte. Ltd, a member of Henry Butcher Malaysia group has been in operation since Jan The company offers consultancy services related to valuation, project marketing, agency, research, property management and plant and machinery. For enquiries, please call , or hbccambodia@gmail.com. 13 P age

15 Upcoming Events March 2013 Exclusive Preview Baltimore Tower, Canary Wharf, London E14 Baltimore Tower is within 10 minutes walk or 2 stop hop on the DLR from Canary Wharf. With over 93,000 people already working in and commute to Canary Wharf daily, Canary Wharf remains a powerhouse of global headquarters and the fastest growing business district in the UK. It is also the center of fashion and recreation with 200 quality boutiques, brand name shops, bars & restaurants. Baltimore Tower has no equal. It is the place to be for the Canary Lifestyle! Date: 1-3 March 2013 Time: 10.00am 7.00pm daily Venue: Mandarin Oriental Kuala Lumpur, Kuala Lumpur. Contact Person: Jazmine, , london@henrybutcher.com.my AraGreens Bumiputera Property Exhibition 2013 The Bumiputera Property Exhibition (BPEX) is an exhibition that highlights the properties from various developers to sell off their Bumi lots to potential customers. Exclusive for this event, AraGreens Residences will be offering up to 9% rebate*, free legal fee and DIBS to potential buyers. Date: 1 3 March 2013 Time: 11.00am 9.00pm daily Venue: Mid Valley Exhibition Centre, Mid Valley City, Lingkaran Syed Putra, Kuala Lumpur. Contact: Exclusive Preview The Hamptons, Breakfast Point, Australia The Hamptons the latest release in Sydney s premier harbour front community at Breakfast Point. The Hamptons contains a mix of 44 x 1 bedroom and1 bed + study apartments, 37 2 bedroom and 2 bed + study apartments, only 5 x 3 bedroom apartments and 5 exclusive luxury penthouses, all a short walk from world famous Sydney harbour at Breakfast Point. These apartments are ideal for owner occupiers and investors looking for a low maintenance home close to the harbour and enjoying world class facilities and lifestyles. Date: March 2013 Time: 10.00am 7.00pm daily Venue: One World Hotel (Room Iris & Hibiscus), First Avenue, Bandar Utama City Centre, Petaling Jaya, Selangor, Malaysia Contact Person: Jazmine, , australia@henrybutcher.com.my Art Auction Malaysia April 2013 Penang Preview Henry Butcher Art Auctioneers returns in its fifth sale with the highly anticipated Art Auction Malaysia this April Selected highlight pieces will be shown in a traveling exhibition, starting at Heritage Island up north Penang! Date: March 2013 Time: 11.00am 7.00pm daily Opening Night: Thursday 28 March 2013, 7pm Venue: a2 Gallery, 27 Bangkok Lane, Penang, Malaysia. Contact Person: Chris Tay, , chris@hbart.com.my 14 P age

16 Upcoming Events April 2013 Art Auction Malaysia April 2013 Singapore Preview Henry Butcher Art Auctioneers returns in its fifth sale with the highly anticipated Art Auction Malaysia this April Selected highlight pieces will be shown in a traveling exhibition, stopping at the Art Hub of Southeast Asia Singapore! Date: 5 7 April 2013 Time: 11.00am 7.00pm daily Opening Night: Thursday 4 April 2013, 7pm Venue: Helutrans Artspace, 39 Keppel Road #01-05, Tanjung Pagar Distripark, Singapore Contact Person: Chris Tay, , chris@hbart.com.my Art Auction Malaysia April 2013 Kuala Lumpur Full Viewing Henry Butcher Art Auctioneers returns in its fifth sale with the highly anticipated Art Auction Malaysia this April Collectors and art lovers alike will have the opportunity to view the entire collection exhibited in Kuala Lumpur before they go under the hammer. Date: April 2013 Time: 11.00am 7.00pm daily Venue: White Box, MAP@Publika, Level G2-01, Block A5, Dutamas, 1 Jalan Dutamas 1, Kuala Lumpur, Malaysia. Contact Person: Chris Tay, , chris@hbart.com.my Art Auction Malaysia April 2013 Auction Day Henry Butcher Art Auctioneers returns in its fifth sale with the highly anticipated Art Auction Malaysia this April Date: 21 April 2013 Time: 1.00pm Venue: Sime Darby Convention Centre, Ballroom 3, 1A Jalan Bukit Kiara 1, Kuala Lumpur, Malaysia. Contact Person: Chris Tay, , chris@hbart.com.my Henry Butcher Retail Director Speaking Engagement with FMM Marketing & Branding Conference 2013 The 6th FMM Marketing & Branding Conference will highlight the best practices of industry leaders and solutions from the retailers. It will bring together decision makers of the retail sector, established market leaders as well as industry incumbents to build new networks, share winning strategies and provide participants with innovative ideas to sharpen their competitive edge through meaningful brand experiences across a multitude of customer touch-points. Mr. Tan Hai Hsin, Managing Director, RGM Retail Group (Malaysia) Sdn. Bhd., will be giving a talk on Tomorrow's Cities in Malaysia: Future for Shops and Shopping Centres at 9.45am. Date: 18 April 2013 Time: 8.00am 5.15pm Venue: The Royale Bintang Damansara Hotel, 2, Jalan PJU 7/3, Mutiara Damansara, Petaling Jaya, Selangor. Contact Person: Jackie, , jackie@fmm.org.my 15 P age

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