Monday, May 24, 2010

Of Trains Stations and Airport Askar.... a quick look at atas angin deals

I saw Jebat's post on KTM Land earlier...

Wanted to comment tapi tak sempat....

Anyway.....now the news is out

SINGAPORE: Malaysia agreed on Monday to move the Keretapi Tanah Melayu Berhad (KTMB) station at Tanjong Pagar here to the Woodlands Train Checkpoint (WTCP) by July 1, 2011.


Malaysia will also co-locate its railway customs, immigration and quarantine (CIQ) facilities at the WTCP.


These were some of the major decisions reached by Prime Minister Datuk Seri Najib Tun Razak and his Singapore counterpart Lee Hsien Loong during the leaders' retreat at the Shangri-La Hotel here.


When they met, both leaders were looking at the matters arising from the Points of Agreement (PoA) on Malayan railway lands in Singapore which had long become the obstacles to their countries' good bilateral ties.


Najib and Lee agreed to move the issues forward and both countries decided to jointly develop the KTMB lands around Singapore to maximise its full potential. At their joint press conference after the retreat Monday, both leaders agreed that a Malaysia-Singapore joint company, known as M-S Pte Ltd, be established before Dec 31 this year to develop the lands vacated by KTMB.


The company will be set up by Malaysia's Khazanah Nasional Berhad and Singapore government's investment arm, Temasek Holdings Limited, with each holding 60% and 40% equity respectively.


KTMB lands in Tanjong Pagar, Kranji and Woodlands and three additional pieces of land in Bukit Timah, with a total area of 271 hectares, will be vested in the company for joint development.


The developed KTMB lands could in turn be swapped, on the basis of equivalent value for pieces of land in Marina South and Ophir Rochor here.



The leaders said both countries would conduct their respective valuations and Lee would visit Kuala Lumpur within a month with a proposal for the land swap for Malaysia's consideration.


They agreed that the transfer of the land parcels to M-S Pte Ltd would take effect when KTMB vacated the Tanjong Pagar Railway Station.


According to a joint statement on the meeting, a rapid transit system link between Tanjung Puteri in Johor Baharu and Singapore, aimed at enhancing connectivity between the two countries, will be jointly developed.


The rapid transit system link will be integrated with public transport services in Johor Baharu and Singapore.


For the convenience of commuters, the rapid transit system link will have a single co-located CIQ facility in Singapore with the exact location to be determined later.


It is targeted that the proposed rapid transit system link will be operational by 2018, and thereafter, Malaysia may consider relocating the KTMB Station from Woodlands to Johor.


Both leaders also agreed to task a joint implementation team, to be led by the Secretary-General of Malaysia's Foreign Affairs Ministry and the Permanent Secretary of Singapore's Foreign Affairs Ministry, to further discuss the implementation details.


The team will discuss, among other things, the establishment and the framework governing M-S Pte Ltd, the rapid transit system connectivity between Johor Baharu and Singapore, and the co-located CIQ in the Woodlands train checkpoint.


The joint implementation team will complete its work by end of this year (Dec 31).


The outcome reached by the joint implementation team on the matters discussed should be reflected in a written instrument to be signed by both countries upon approval from their respective governments.


Najib and Lee also agreed that the Tanjong Pagar Railway Station passenger terminal building be conserved, given its historical significance, and will be a centerpiece for the new proposed development on the site.


In addition, the old Bukit Timah Railway Station building at Blackmore Drive can also be conserved. - Bernama

So how should one perceive the deal ?


My basic understanding of the 1918 Agreement was that the Land can only be used by KTM for rail services....which is why KTM have been servicing the unprofitable Singapore route for fear that the land will revert to Singapore.....


At the same time the Land in which KTM operates...create this so called "security risk" for the Singaporean Government.....cause it is creating a land in which our Authorities Operates ..pernah ke lu masuk negara lain pastu Cop Passport by your own immigration officers in the Foreign Country...tu belum kira orang campak dadah keluar pintu keretapi.......go here for some readings on the issues


Bagi gua most of the statement in Bernama tak la jauh sangat from the Points of Agreement 1990

So we give up the Operation of the Customs & KTM station....pump in the land in a Company co-owned with Singapore on a 60:40 basis.....

We gonna control 60%.........there's gonna some sort of rules on the decision making embedded in the Shareholders agreement......this is what we need to know ...

The 60% shares is meaningless if the 40% is controlling everything......

If we pump in the land what is Singapore pumping in?

Is it development expertise? Is it the fact that they "allowed" us to depart from the 1918 agreement to be able to use the Land for other purposes?

Shit I dont know.....lets wait for more info on the matter.....lets also see how the accountants deal with the valuation of the Land from KTMB point of view and how this is transferred to Khazanah who will inject it into the M-S Pte Ltd....

Whatever it is......kita dapat monetised the value of the Land in this deal....kacing!

Now to another topic on Land.....

I saw Syed's post......this one a bit scary

The Government is also scaring me with even newer and weirder proposals. Why should a Qatar Investment Agency be even considered to redevelop prime land at the Sungei Besi Airbase? What is the basis to give it to a foreign company? Was there an Open Bid? How can we give our prime land to a Qatar company without even an Open Bid? Are they better than Malaysian companies who may be asked to put in Open Bids? If so, how come? Which part of the Federal Constitution says that companies from Qatar can gain access to our prime land without even putting in an Open Bid.


Gua pun macam biasa kari cari online la apekebenda mamat ni cita......


So this is what I found .....


PETALING JAYA: The Government will transfer ownership of the prized land in Sungai Besi, currently the base for the Royal Malaysian Air Force, to 1Malaysia Development Bhd to be developed into a multi-billion ringgit commercial project, akin to an “urban renewal project,” said a source.

It will basically be a left hand, right hand transfer. The Government has entrusted the land to 1MDB, which is a wholly-owned government agency, which will then be responsible for unlocking the value and maximing returns from the land.

“1MDB will manage the entire process and with the mandate as a land owner, it will woo foreign parties to contribute to foreign direct investments in the country,” said a source close to the plans.

It is believed that the massive project will be developed through a joint-venture with Qatar Investment Authority (QIA), which only recently signed a memorandum of understanding with 1MDB for a strategic real-estate development in the Klang Valley. More here


This parcel of land ni sebenornya cerita lame.....dulu YTL wanted to get it under a privatisation project...


Senduk Bola Kecik have raised some valid points about the deal ....in his post

The latest on the blocks – and the offer appears to be shrouded in mystery is the re-development of the Old Air Force airport in Sungai Besi. It is rumored that the land is offered to a consortium led by One Malaysia Development Bhd, LTAT and an investment arm of the Qatar government.
One Malaysia Development Bhd is owned by One Malaysia development Fund, the successor of the Terengganu Sovereign Wealth Fund (?). Does that mean that earnings going to the Terengganu Sovereign Fund/One Malaysia Development Fund will be applied to property development here in Kuala Lumpur? That will mean, that the fund intended to develop and prosper the recipient of the oil royalty which is Terengganu directly, will just be applied to a portfolio investment. This raises the question, who is advising the One Malaysia Development Fund. Are they the young boys running around with Taek Jho Low who is pressuring One Malaysia Development directors to follow their leads?
LTAT is the only component belonging to the government. The investment arm of the Qatar government is probably talked into coming in by that young Chinaman, Taek Jho Low who gave Datin Sri Rosmah a gala of a party in New York last year.
If this is true, it will certainly raise some very tough questions. Why should any of the government linked company ( LTAT) belongs to the Armed Forces -get involved in this deal? That would suggest the consortium needed a friendly party to government as a softener, to secure this project. If any company that is related to the government even remotely is taken into the consortium, than its bids stands as a conflict of interest.
How can the government decide fairly when one of it sown is making the bid?
So, the LTAT should withdraw itself from this consortium. That would leave One Malaysia Development Berhad whose shareholder I believe is the Terengganu government. I am asking the more intrepid readers of this blog to verify this. The Qatarian government's investment arm is obviously brokered by the Taek Jho low- the super rich kid which the Malaysian press and groveling-at-the feet- analysts readily confer extraordinary business acumen to. Yes, it's the same young man, who 'thought' of the Terengganu Sovereign Fund which later became One Malaysia Development Fund.
It is also rumored that this same consortium, instead of developing the land directly will be looking for parties with deep pockets to buy the 'project' from them.


Now this becomes slightly more interesting....1MDB ni dulu Terengganu Investment Authority Berhad...


I wrote about what I think of it when it was just an Idea....go here


Now its operational and is getting into the deal making activity.........


This is their business model


1MDB has a unique difference in its pursuit of economic growth. It creates business opportunities and forges global partnerships to bring home foreign direct investment for new high-impact growth.

1MDB forms equal-capital joint ventures in investments with high multipliers, especially energy, real estate, tourism and agribusiness. This business model is proven successful with an early indication of USD3 billion investments from the Middle East.

1MDB will continue to be swift in responding to rapid-changing global market, seizing opportunities before others do.

1MDB will have an initial funding of RM11 billion (USD3.13 billion). The first tranche of RM5 billion (USD1.7 billion) was raised in the capital market with the issuance of Islamic Medium Term Notes guaranteed by the Federal Government. 1MDB’s shareholders will determine the future funding for the balance.


I also saw this today


KUALA LUMPUR: The government will unlock the strategic value of its idle or under-utilised land to benefit the country’s economy.
“We have land owned by the government that is now idle or under-utilised for various reasons.
We now want to unlock the strategic value of these federal assets.
“Our objective is simple, to capture high multiplier effects by unleashing the full economic potential of these assets to spur growth for a thriving and competitive economy,” Prime Minister Datuk Seri Najib Razak said in a posting on his 1Malaysia blog.
There would be no open tender as it involved transfer of land within the government.
However, I do intend to have an open tender of government land for development. It is incorrect to assume all government land will be monopolised by a single institution.” He cited a joint-venture project with the Employees Provident Fund (EPF) involving a piece of government land in Sungai Buloh that will be tendered out.

“While this mega development plan will add to our economic growth, it is also expected to benefit the 10 million EPF contributors.” Najib also cited the development of a piece of land in Sungai Besi linked to a recent signing of a memorandum of understanding between government-owned strategic development company, 1Malaysia Development Bhd (1MDB), and Qatar Investment Authority (QIA).
“The QIA is keen to invest US$5 billion (RM16.34 billion) in Malaysia. It will be a comprehensive development that will include foreign as well as local players such as Lembaga Tabung Angkatan Tentera (LTAT).” As lead agency, 1MDB will utilise its global networks to select and appoint local and international partners to harness the diversity of global as well as local experience for the best results.
“These are exceptional deals for our country and I hope for more high-level partnerships that will promote an infusion of global and local t a l e n t s. ” He also said Malaysia was trying to attract long-term capital from foreign direct investors with substantial financial clout and global partnersh i p s.


I'm not quite sure how all of this fits together.......the very the sikit la info online about all these things


Senduk asks about the transparency in the Valuation of the Land/project and of how the land was transferred to 1MDB, and of the various parties involved in the transactions.....Syed asks about the Role of Qatar as a Financial Investor......


I'm gonna ask simpler questions ...


How is the value being unlocked as claimed by Jingong? and how sure are you that you are not being short changed in the process


Who is the recipient of this value? How is Federal Asset being transferred to a State (assuming Terenganu here) And how is the ownership structure of 1MDB?


And how sure are you that 1MDB & Qatar can deliver? Neither has real estate development capacity. 


What about other Domestic Real estate power house? Why cant the Government enter into a jv with a local instead to develop the site .....It's Sg besi siut besar nak mampus pulak tu how difficult could the project be? If foreign investors want to come in, buy the long-term bonds that will finance the project tak boleh ke? If they want to come in at later stage buy the REITs tak boleh ke?


Who takes the risk in the overall project? Considering that the liabilities of 1MDB is Gov Guaranteed


And my final question.......


what the Fuck Happened to Pelaburan Hartanah Berhad? are they gonna get a piece of the pie above (KTM Land and Sg Besi projects)?


follow the trail of the money folks........happy hunting
Minds are like parachutes; they work best when open. -Lord Thomas Dewer