KL office market glut to last three more years

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KL office market glut to last three more years

ASEAN+ July 18, 2017 01:00

By THE STAR
ASIA NEWS NETWORK
PETALING JAYA

THE current supply glut in the Klang Valley office market in Petaling Jaya, Malaysia, is expected to stretch for at least three more years.

Savills Malaysia Sdn Bhd chairman Datuk Christopher Boyd said the office market may only start experiencing a “pick-up” beyond 2020, on the back of rising demand for new, “improved” office space.

He emphasised that the incoming supply of offices comprised buildings that were far superior than its predecessors – making them appealing to investors.

“The new buildings that are coming in are a lot better than the ones that came in back in the 70s… the working environment that the new buildings provide today in terms of infrastructure and technology is fantastic,” he said when contacted by StarBiz.

Boyd said the absorption rate for new office space in 2016 was 580,000 sq ft, compared with 330,000 sq ft in 2015. “In a good year, it ranges between two million and three million sq ft per year. The reason for the drop is because major tenants within the oil and gas sector and those that serve them have dropped.There have been fewer investments in this sector since the drop in oil prices.”

On a brighter note, Boyd said the incoming supply of office space did not tantamount to “ridiculous numbers.”

“It’s not reached crazy numbers. It’s a cycle…an evolution process, albeit a painful one…but give it time and the market will self-correct.”

Boyd said more than 15 million sq ft of space was expected to enter the Greater Kuala Lumpur market within the next three years.

“In the next three years, we expect supply to grow further at a compounded annual growth rate (CAGR) of 3.80 per cent.

Significant completions

“Significant completions in 2020 and 2021 will include Lot 91 & Lot 185 in KLCC, LendLease Lifestyle Quarters & Plot 10.17 in TRX. This will add on 3.88 million sq ft of office space in these two locations alone.”

Boyd said the existing supply of office space in Greater Kuala Lumpur stood at 118.4 million sq ft of net lettable area as of the first quarter of 2017.

“In terms of space, we are bigger than Bangkok, Jakarta and Manila,” he said, adding that the CAGR of supply in the past 11 years recorded was at 5.28%, with an average annual addition of 4.65 mil sq ft.

Boyd said the average vacancy rate in GKL had been steadily |growing from 8.1 per cent in 2008 |to 20.6 per cent in 2016.

“This is largely attributable to the gradual increase in vacancy at the back of growing new supply over the years.”

Boyd said the average vacancy rate in GKL increased to 20.9 per cent as of the first quarter of 2017.

“This is due to the higher average vacancy rate in Selangor (26.5 per cent ) and KL suburbs (22.6 per cent ) with the large amount of new completions in the region.

“With upcoming supply in the next two years (estimated more than 10 mil sq ft), we expect the overall vacancy rate to rise further.”

GKL refers to an area covered by 10 municipalities surrounding Kuala Lumpur, each governed by local authorities, namely Kuala Lumpur City Hall, Perbadanan Putrajaya, Shah Alam City Council, Petaling Jaya City Council, Klang Municipal Council, Kajang Municipal Council, Subang Jaya Municipal Council, Selayang Municipal Council, Ampang Jaya Municipal Council and Sepang Municipal Council.

According to the Valuation & Property Services Department’s Commercial Property Stock Table for the first quarter of 2017, there was an existing stock of 435 purpose-built offices measuring 94 million sq ft in Kuala Lumpur, compared with 431 offices measuring 89 million sq ft in the previous corresponding period.

VN govt to divest from two major breweries

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VN govt to divest from two major breweries

ASEAN+ July 18, 2017 01:00

By VIET NAM NEWS
ASIA NEWS NETWORK
HANOI

THE VIETNAMESE government will divest from two major breweries in the country through the open tender method, a Trade Ministry official said.

Bui Truong Thang, deputy director of the Light Industry Department under the Ministry of Investment and Trade (MoIT), said at a press conference on Friday that the Saigon Beer, Alcohol and Beverage Corporation (Sabeco) and the Hanoi Beer Alcohol and Beverage Joint Stock Corporation (Habeco) will submit their equitisation plans by the end of this month.

The state holds 89.59 per cent and 82 per cent stakes in Sabeco and Habeco, respectively. Together, the two beer makers account for about 60 per cent of the domestic market. Sabeco dominates with 40 per cent.

Thang also said that the MoIT has already submitted to the government divestment and equitisation plans for Electricity of Vietnam (EVN), Vietnam National Oil and Gas Group (PVN), and Vietnam National Chemical Group (Vinachem).

He said a similar plan for Vietnam National Coal and Mineral Industries Group (Vinacomin) would be submitted this month.

Deputy Minister Do Thang Hai said he has ordered close supervision of the equitisation process in order to avoid asset losses.

Hai also said that disciplinary action was likely to be taken against MoIT deputy minister Ho Thi Kim Thoa, with the Party Central Committee’s Inspection Commission viewing her reported wrongdoings as serious.

Thoa is alleged to have committed several violations during her tenure as Communist Party comimittee secretary and director of the Dien Quang Lamp Company, including violations of regulations on equitisation, land management and share transfer. The ministry will announce the disciplinary action publicly when it is taken, Hai said.

According to the inspection commission, as party committee secretary and director of Dien Quang Lamp Company from January 2004 to May 2010, Thoa violated regulations on business equitisation and procedures, and in relation to 6.7 billion dong (about Bt9.9 million) the company had received as an interest rate exemption.

Applicants rush for loan scheme

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Applicants rush for loan scheme

ASEAN+ July 18, 2017 01:00

By PHILIPPINE DAILY INQUIRER
ASIANEWS NETWORK
MANILA

THE PHILIPPINE state-run pension fund Social Security System (SSS) expects to collect an additional 8.6 billion pesos (Bt5.7 billion) in the next five years on top of the 5.2 billion pesos it already collected during the last 12 months from its loan condonation programme.

In a statement Sunday, SSS president and chief executive Emmanuel F Dooc said over 850,000 members accessed the loan restructuring programme implemented for one year starting April 2016.

“We are very much overwhelmed by the huge volume of applicants, especially during the last few days before the deadline. We hope that members will be faithful in paying their restructured loan amortisation’s to avoid further penalties. We are expecting 8.6 billion pesos in collection until the end of the five-year instalment term,” Dooc said.

Total collections from the loan restructuring programme were expected to reach 13.8 billion pesos by 2022, Dooc said.

The program allowed delinquent borrowers to settle their unpaid loans in full within 30 days without added interest.

On third MH17 anniversary, families unveil ‘living memorial’

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A picture taken on July 12, 2017 shows sunflowers set up in front of the St Vitus Church in Hilversum, The Netherlands. / AFP PHOTO

A picture taken on July 12, 2017 shows sunflowers set up in front of the St Vitus Church in Hilversum, The Netherlands. / AFP PHOTO

On third MH17 anniversary, families unveil ‘living memorial’

ASEAN+ July 17, 2017 20:43

By Agence France-Presse

VIJFHUIZEN, Netherlands – Three years after Flight MH17 was shot down by a missile over war-torn Ukraine, nearly 2,000 relatives gathered Monday to unveil a “living memorial” to their loved ones.

A total of 298 trees have been planted in the shape of a green ribbon, one for each of the victims who died on board the Malaysia Airlines flight en route from Amsterdam to Kuala Lumpur.

Dutch King Willem-Alexander and Queen Maxima joined government and international officials at a solemn ceremony to dedicate the memorial in the park of Vijfhuizen, close to Amsterdam’s Schiphol airport where the flight took off from on July 17, 2014.

The names of all the 298 passengers and crew killed in the disaster were read out by their emotional families, and the Dutch royals and others laid flowers.

While most of the victims were Dutch, there were 17 nationalities on board including Australians, Britons, Malaysians and Indonesians.

“It’s three years to the day that MH17 was shot down in mid-air,” said Evert van Zijtveld, the head of association of the victims’ families.

“But for us it was yesterday. That day… left a void in our lives. There is a life before and after July 17, 2014.

“These victims can never be forgotten,” he said. “This monument is for now and for future generations.”

“A tree symbolises ‘hope’ and ‘future’ in many cultures,” the victims’ families association said in a statement.

“We not only want to honour the MH17 victims, but also want to create a place where everyone can keep their memories of the 298 passengers alive.”

Funded by donations, the project was designed by artist Ronald A. Westerhuis and landscape architect Robbert de Koning after it was chosen out of three proposals by relatives in late 2015.

Never forget

As the third anniversary of the tragedy dawns, no suspects have been arrested although it was announced this month that any trials will be held in The Netherlands.

About 100 people are wanted in connection with the disaster, after Dutch-led investigators concluded the plane was shot down by a Russian-made BUK missile transported from Russia into areas held by pro-Moscow rebels.

In Kiev, Ukrainian President Petro Poroshenko on Monday insisted Moscow must be held to account over the tragedy.

“It was a barefaced crime that could have been avoided if not for the Russian aggression, Russian system and Russian missile that came from Russian territory,” Poroshenko wrote on Facebook.

Russia and the separatist authorities it supports, however, continue to deny any involvement and have sought repeatedly to deflect the blame onto Ukraine.

Sunflowers

The trees in the memorial will be surrounded by sunflowers, which bloom in July, and will “radiate a golden glow”, the foundation said.

The flowers also represent “the sunflower fields in eastern Ukraine where some parts of the plane wreckage were found”.

Each of the trees bears the name of one of the victims. And at the heart of the forest of 11 different tree varieties is a steel memorial shaped like an eye, turned upwards looking at the skies.

One apple tree has been dedicated to 16-year-old Gary, from Rotterdam, whose body has still not yet been identified.

“It’s nice to think that he has a tree, since we have not received his body. We don’t want Gary to be forgotten. We don’t want any of the 298 victims to be forgotten,” his father Jan Slok, told the daily AD newspaper.

The 16-metre-long steel eyebrow above the eye represents “the burden of the loss,” the Trouw daily said, adding with time it will rust, a symbol of the slow passage of pain. The victims’ names are also engraved in the pupil of the eye.

“If you look inside, you can see both yourself and the name of your loved one,” Westerhuis told Trouw.

Major cyber-attack as costly as Hurricane Sandy: Lloyd’s

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(FILE) - A journalist at work reads online news articles about cyber attacks, in Istanbul, Turkey, 15 May 2017.  // EPA PHOTO

(FILE) – A journalist at work reads online news articles about cyber attacks, in Istanbul, Turkey, 15 May 2017. // EPA PHOTO

Major cyber-attack as costly as Hurricane Sandy: Lloyd’s

ASEAN+ July 17, 2017 19:45

By Agence France-Presse

PARIS – A serious cyber-attack could cost the global economy as much as $53 billion, putting it on a par with Hurricane Sandy in 2012, according to a report Monday by Lloyd’s of London.

The world’s oldest insurance market and Cyence consultancy said the threat posed by hacking attacks has surged and the global economy will be increasingly vulnerable to cyber-attacks over the next decade.

The report warned that the danger is also pushing up the cost of insurance for companies.

There was a growing threat that a cloud service provider could be hacked, which could cause losses of $53 billion (46.2 billion euros), it said.

That figure is the average estimate but the report said that given the uncertainty in calculating cyber losses, they could be as high as $121.4 billion or as low as $15.6 billion, depending on which organisations were involved and how long the cloud service disruption lasted.

The report likened the cost of a major cyber-attack to Hurricane Sandy, the second most costly storm in history, which caused damage of between $50 billion and $70 billion to the northeastern United States five years ago.

After a “cloud” attack, the second most likely threat stemmed from attacks on computer operating systems of the type run by a large number of businesses around the world, known as a “mass software vulnerability scenario”, which could cause losses of up to $28.7 billion.

Lloyd’s warned that most losses from cyber-attacks were not insured, leaving governments and businesses highly vulnerable if they were to occur.

The uninsured shortfall could be as high as $45 billion for the cloud services scenario, and $26 billion in the event of a “mass software vulnerability scenario”.

Inga Beale, Lloyd’s chief executive, said: “Just like some of the worst natural catastrophes, cyber events can cause a severe impact on businesses and economies, trigger multiple claims and dramatically increase insurers’ claims costs.”

In June, a global wave of cyber-attacks that began in Russia and Ukraine and spread to western Europe and across the Atlantic wrought havoc on government and corporate computer systems.

Several multinational companies were targeted, including US pharmaceutical giant Merck, Russian state oil giant Rosneft, British advertising giant WPP and French industrial group Saint-Gobain.

Japanese holiday “Marine Day”

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Japanese holiday “Marine Day”

ASEAN+ July 17, 2017 19:37

By Agence France-Presse

People stand amongst candles lit inside paper lanterns while looking out at Rainbow Bridge (in background) in Odaiba Marine Park in Tokyo on July 17, 2017, as part of a lantern festival.

The festival is held every July as a summer tradition on the Japanese holiday “Marine Day”.

German police launch manhunt after teen brings ‘gun’ to school

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  • A policeman stands in front of a police car close to the Friedrich-Ebert vocational school in Esslingen near Stuttgart, southwestern Germany, on July 17, 2017, after a teenager entered the school reportedly armed with a gun. // AFP PHOTO
  • A policeman stands in front of a police car close to the Friedrich-Ebert vocational school in Esslingen near Stuttgart, southwestern Germany, on July 17, 2017, after a teenager entered the school reportedly armed with a gun. // AFP PHOTO

German police launch manhunt after teen brings ‘gun’ to school

ASEAN+ July 17, 2017 19:28

By Agence France-Presse

BERLIN, July 17, 2017 (AFP) – Police in southwestern Germany launched a manhunt Monday after a teenager entered a vocational school reportedly armed with a gun, forcing a lockdown, authorities said.

The suspect, who did not fire shots at the school in the town of Esslingen near Stuttgart, had entered the building briefly, left of his own accord and fled on a motorcycle, police said on Twitter.

They described the suspect as “male, aged 17-19, 170-180cm (67-71 inches) tall, bearded, darker skin, (wearing) a blue t-shirt and light shorts”.

Witnesses told police they had seen a firearm tucked in the teenager’s waistband.

Police had earlier detained another suspect but released him after determining they had the wrong man.

They searched the secondary school but found nothing suspicious and asked students to assemble outside the building until they could be picked up by their parents, a police spokesman told DPA news agency.

18 dead, 18 missing in China flooding: media

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  • This photo taken on July 14, 2017 shows people looking at submerged cars in a flooded street in Yongji, a county under the administration of the city of Jilin in northeast China’s Jilin province. // AFP PHOTO
  • This photo taken on July 14, 2017 shows submerged cars in a flooded street in Yongji, a county under the administration of the city of Jilin in northeast China’s Jilin province. // AFP PHOTO

18 dead, 18 missing in China flooding: media

Breaking News July 17, 2017 19:25

By Agence France-Presse

BEIJING – Flooding in China’s northeast has left 18 dead and 18 missing, state media said Monday, after the latest deadly deluge to hit the country this summer.

The central and eastern parts of Jilin province were hit by driving rain Thursday and Friday, according to the official Xinhua News Agency.

More than 110,000 were forced to flee the city of Jilin due to the heavy rain, it said, adding that the government had sent over 32,000 rescue workers to the area.

China has been hit by a series of fatal floods this summer, leaving dozens dead and displacing huge numbers of people.

Last week authorities said that at least 63 were killed by landslides and floods in central China, which forced 1.6 million to flee.

Authorities in the southern region of Guangxi earlier this month said two dozen people had been killed or gone missing due to flooding, which also damaged thousands of houses.

Top Philippine paper in sale talks after Duterte threat

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File photo

File photo

Top Philippine paper in sale talks after Duterte threat

ASEAN+ July 17, 2017 16:38

Manila – Top newspaper the Philippine Daily Inquirer said Monday its owners are in talks to sell the publication, months after President Rodrigo Duterte threatened a shame campaign against them over critical coverage of his drug war.

Marixi Prieto, chairwoman of the Inquirer Group of Companies, said the family had decided to quit the newspaper business and was in talks to sell it to tycoon Ramon Ang, president of top Philippine conglomerate San Miguel Corp.

“The Prieto family’s decision to divest after 25 years is a strategic business decision that it believes will maximise group opportunities for the Inquirer group,” the paper said in a statement.

Ang said Monday he has accepted the Prieto family’s offer to invest in the Inquirer Group but gave no details.

Neither side mentioned the paper’s longstanding dispute with Duterte, who has said Ang helped fund his presidential campaign.

In March Duterte described the Inquirer and major television broadcaster ABS-CBN as “sons of whores” and warned them of karmic repercussions for criticising him for alleged human rights abuses in the drug war.

“I’m not threatening them but someday their karma will catch up with them,” Duterte said, singling out the Prietos as well as the Lopez family that controls the television network.

“They’re shameless, those sons of whore journalists.”

He also threatened to use the government’s television station to shame the two families, and the subject has been a recurring theme in many of the president’s speeches.

Duterte had vowed during the election campaign last year to kill tens of thousands of drug dealers and users to stop the country from sliding to narco-state status.

Since he came to power a year ago police and unknown gunmen have killed thousands of suspects, but Duterte has rejected criticism from human rights groups that his crackdown may amount to a crime against humanity.

Prieto described Ang as a “longstanding friend and business partner” and said the talks, begun in 2014, restarted early this year.

“The family is confident that Mr Ang will uphold the Inquirer Group’s commitment to pursuing the highest standards of journalism.”

Ang said in a statement the paper would “continue to uphold the highest journalistic standards and make a difference in the society it serves”.

The planned Inquirer acquisition follows a pattern of Philippine conglomerates buying into news outlets, sparking concern about media consolidation.//AFP

Behind-the-scenes : Singapore PM Lee’s recent Germany trip

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  • PM Lee and having an informal dinner with younger members of his delegation at a restaurant in Munich. PHOTO: SINGAPORE EMBASSY IN BERLIN/FACEBOOK
  • First Secretary Tan Tah Jiun explaining to PM Lee Hsien Loong the history of the München Rathaus and its famous 5 o’clock “performance” in Munich. PHOTO: SINGAPORE EMBASSY IN BERLIN/FACEBOOK

Behind-the-scenes : Singapore PM Lee’s recent Germany trip

ASEAN+ July 17, 2017 13:56

By The Straits Times
Asia News Network

Singapore – What goes on behind the scenes of an overseas ministerial visit? Plenty of hard work and planning that begin way before the trip is even made.

The Singapore Embassy in Berlin, in a Facebook post on Sunday (July 16), shared snippets of the effort and preparation that went into Prime Minister Lee Hsien Loong’s working trip to Germany earlier this month.

Work began three weeks before PM Lee’s visit, with officers from the Ministry of Foreign Affairs and Berlin embassy involved in the planning.

Civil servants accompanying PM Lee, who attended the G-20 summit in Hamburg, also clocked long hours preparing his programme for the following day.

From updating PM Lee on his schedule to playing tour guide, they worked tirelessly to ensure everything ran smoothly.

The post also revealed that PM Lee makes it a point to have an informal meal with younger members of his delegation during overseas visits.