Fascinating Putrajaya

Fascinating Putrajaya
By: Faridah Begum

The nation's administrative city has many attractions that make it a worthwhile place to visit.

1. PERDANA PUTRA
Inspired by former Prime Minister, Tun Dr Mahathir Mohamad, Perdana Putra houses the Prime Minister's Department and overlooks the beautiful Putrajaya Lake. The structural design is strongly influenced by the Malay, Islamic and European cultures.

2. PUTRA MOSQUE
The Putra Mosque is the principal mosque of Putrajaya and is located next to Perdana Putra. There is a large square in front of the mosque that has flagpoles flying the Malaysian states' flags and is a stopover for the numerous of foreign guests who visit daily.

3. PUTRAJAYA INDEPENDENCE SQUARE
The Putrajaya Independence Square or Dataran Merdeka is a city square used or the national day parades and for festivals. It is located opposite the Perdana Putra.

4. Millennium Monument
This national monument is located in a 25ha park in Precint 2 of Putrajaya and was the first national monument to be built here. Built in the shape of the national flower - the hibiscus - it stands at 68m tall and is constructed of solid metal structures.

5. PUTRAJAYA WETLANDS PARK
Putrajaya Wetlands Park is believed to be the largest constructed freshwater wetlands in the tropics. It has a total area of 3.35 sq km and comprises the Wetlands Park, which is also a wildlife sanctuary which attracts a huge variety of animals to the combined terrestrial-aquatic wetland environment.

6. TAMAN SELATAN
Taman Selatan or Southern Park is a cemetery quite like the Arlington National Cemetery in Washington DC, in the United States. It has 570 grave plots, of which 331 are reserves for Muslims, 94 for Buddhists, 55 for Christians, 61 for Hindus and the final 29 plots for those of other religions. Among the notables buried here are the current Prime Minister's late wife Datin Seri Endon Mahmood and Petronas president Tan Sri Azizan Zainal Abidin.

7. MELAWATI PALACE
The Melawati Palace, also known as Istana Hinggap, is a retreat of the Yang di-Pertuan Agong. Located in Precint 1, Purtajaya, it was completed in 2002.

8. PUTRAJAYA LAKE
Located at the centre of this new and latest Federal Territory of Malaysia, it is a 650ha man-made lake that acts as a natural cooling system for the city and is also used for recreation, fishing, water sports and water transport. In September 2004, the F1 Powerboat Championship was held on this lake for the first time and in 2005, Putrajaya hosted the Asian Canoeing Championships.

9. ALAMANDA PUTRAJAYA
Alamanda Putrajaya is the first shopping centre built in Putrajaya and has French hypermarket giant, Carrefour, as an anchor tenant and 180 other tenants. The shopping centre has a variety of shops, restaurants, bowling alleys, movie theatres and a food court illuminated by natural lighting. The centre also features Malaysia' first travelator within a shopping complex that connects the retail outlets and provides access directly to car parks.

10. FOOD
All Malaysian food, even those peculiar to the individual states, can be found here especially in the food court adjacent to the Putrajaya Mosque and in the shopping centre, Alamanda Putrajaya.

Source: Sunday Metro, February 3, 2008

Photographers needed worldwide!

Peel Road

PEEL ROAD
By: David Koh

In the early days of Kuala Lumpur, Pudu was considered one of its boundaries. Jalan Cheras begins at this border and was part of the trunk road to Kajang and further south. (For Google map reference, please log on to http://maps.google.co.uk/ and search for Kuala Lumpur.)

Although some development took place here, as with the northern trunk roads, Jalan Batu and Jalan Ipoh, somehow it did not quite achieve the same heights of success. Many government staff quarters were located here and many remain to this day, around Jalan Cochrane and its vicinity.

There is also a heavy concentration of schools here, with no less than seven in the Jalan Peel-Cochrane area! SMK Cochrane was founded as far back as the year of our nation’s independence!

If that is any indication, it shows that this area is old. The Sacred Heart of Jesus Catholic church was established here in 1960. Many of the features of this tiny pocket of Kuala Lumpur remain unchanged despite rapid development surrounding it.

Redevelopment efforts along Jalan Peel have so far yielded only Plaza 393, an integrated apartment and shopping mall, with the hypermarket Carrefour as its anchor tenant; and the Queen’s Park concept retail store next door.

ACTING PEEL

Peel Road was named after Sir William Peel, who was a British colonial administrator in Malaya. Surprisingly, Jalan Peel survived in the street-renaming frenzy that followed independence.

This area is surrounded by the Ampang River and Pudu’s “tai sui hum” on the north, and Kerayong River down south. These water forms flow in a southwest direction. Therefore, the ideal orientation for buildings here would be southwest.

DOWNSTREAM DIRECTION

Jalan Peel follows a roughly northwest-southeast direction, which is nearly perpendicular to the rivers. Thus, properties on one side of the road face downstream (good) and those on the other side face upstream (not so good).

Based on this observations, Carrefour is likely to do better if its main entrance were moved from its present northeast direction to southeast or south, where the apartments are located.

Queen’s Park located next door along Jalan Peel would also be likely to do better if it follows the flow of the river. In any case, individual outlets within the complex would also fare differently based on where their entrance are located.

ST JOHN AMBULANCE

Across the road behind the Shell petrol station, is the headquarters of St John Ambulance on Jalan Shelley. The St John Ambulance Association was established in Kuala Lumpur in 1908 by British civil servants and British army medical officers stationed here.

The main entrance of the headquarters faces southwest, which is ideal and may be a factor to its lasting success as a charitable organisation. However, it could do better if the building’s energy is reignited as energy tends to deplete over time in a cyclical pattern.

In other streets in this area, we can see the side that faces southwest seems to fare better than the northeast. The occupants of the former appear to prosper and spruce up their homes more than their neighbours across the road.

HOME IMPROVEMENT

Sure, we will still find the occasional home or two on the “unconducive” side looking better with extensions and renovations. This could be because they are new occupants who just bought the property and making a new start.

The current occupant would have decided to have a makeover to improve his comfort or try and fetch a higher resale price. Or it could be someone trying to implement some geomantic remedies.

KERAYONG RIVER

The next best orientation for this area is southeast toward the Kerayong River. Since this is the nearest river, its impact on the vicinity would be greater. Nonetheless, by facing Kerayong, the buildings will have theirs backs turned to Ampang River. This normally means occupants of buildings here may experience mixed fortunes.

The Cheras District Police headquarters is located at the intersection of Jalan Peel and Jalan Cheras. It has a roughly southwest facing direction. That is quite a good direction.

As we proceed down Jalan Cheras, we come across Taman Maluri, most notable by its landmark, Jusco Maluri. This is a bustling complex that does fairly good business. This part of town is very near the Kerayong River, which runs between Taman Maluri and Taman Shamelin Perkasa.

HIGH TENSION

The Jusco building has two main entrances: one follows the river flow and the other faces the river. This could be a strong factor in favour of its continued success thus far. The only downsides we can see are the high-tension power cables and LRT line that run along the river.

High-tension cables emit a field of electromagnetism. Their impact on health has been hotly debated for years and the verdict is still out. Some quarters believe that they do cause health problems.

Thankfully, these are quite a distance away and the effects may be lessened somewhat. On the other hand, there could be long-term detrimental effects arising from these.

*Log on to www.star-space.com for more. You can also e-mail questions on feng shui and properties to annieo@thestar.com.my. This series appear courtesy of the Malaysia Institute of Geomancy Sciences (MINGS)

Source: The Star, Friday, April 11, 2008

Photographers needed worldwide!

Best of Kuala Kangsar

Best of Kuala Kangsar
By: William Thaddaeus

Kuala Kangsar-there is just so much history and beautiful sights to take in here. It is recorded in history that Kuala Kangsar is the oldest district in Perak with a rich legacy of 150 years that dates back to the time of the Malay Sultanate in the Seventh Century.

The focus in this royal town of Perak is Bukit Chandan where several royal palaces and museums are located. Then there are many old heritage buildings and institutions like the Malay College and Clifford School, both of which are over 100 years old as well as several other heritage type buildings spread across the town.

Kuala Kangsar itself sits squarely on the Sungai Perak and the locals like to gather here to take in the lovely vistas or to simply go fishing. There is a souvenir and handicrafts centre at Arena Square where traders not only sell local handicraft but also products from Thailand, Indonesia, Vietnam and other neighbouring countries.

As for food, you will be spoilt for choice-Malay, Indian, Chinese and lost more-and all are so reasonably priced too. A banana leaf curry meal with your choice of meat or fish is only RM3.50 and any Chinese noodle dish hovers around RM2.50. I would say food prices here are about 40 per cent lower than that in large cities.

The real charms of this town, however, are not so easily experienced by the casual visitor because they are hidden away in quiet nooks and corners. You will need to spend more time and use local contacts to discover them. Here are some pointers.

Colourful Village Life

To start which, there is a village built during the communist emergency period called Kampung Station. This village is a cluster of a few hundred houses, mostly wooden and predominantly occupied by the Chinese and Indians. Here, locals come to buy fresh vegetables, eggs, cow’s milk and free range chickens. The villagers are mainly farmers or tradesmen and they live simple but active lives.


There are also many Chinese temples here and if you come at the right time, you can witness the many cultural activities and festivals, very much in the way of old Chinese traditions and all are welcome to join in their sumptuous feast without any invitation.

The village is also dotted with several eateries by the roadside and there are also many restaurants set within the locals’ homes. The village bakery is a must-stop and its specialty is the high quality bread rusks.

When it comes to cultural and religious events, including funerals, many parts of KK come alive. This is what makes the place so special, be it when the people are celebrating the birthday of Lord Ganesa, the midsummer harvest festival or other festivals. Street processions with police escort are very common here and school bands are often hired to add colour to the events.

Plenty Of Fresh Air

Villages and events aside, what really makes KK so special is the abundance of Nature and fresh air. The town is backed by the imposing Main Range with puffs of clouds resembling sheep grazing in the air! Mornings are fog-filled and air is crisp and cool.

The best way to experience this is to take a stroll up Bukit Chandan. Here, you can enjoy views of the beautiful Sungai Perak, walk under the shade of centuries-old trees and take in the breathtaking sight of the surrounding mountains.

This is also a bird watcher’s paradise as regular “visitor” here include magpies, bulbuls, kingfishers and green pigeons.

A family of about 10 hornbills also make regular visits to feast on fruit. Sometimes, they can be seen perched on structures within the town itself.

Other Attractions

In and around KK are many other interesting places, including Tasik Raban, a lake laden with prized freshwater fish like berlidah, toman, kaloi and lampan.

Tasik Raban Resort sits on this lake and Lenggong Resthouse is only a stone’s throw away. The waterfalls Perahu and Kekabu, located 44.8km away on the road to Grik, are also worth a visit. These amazingly pristine waterfalls are located in thick jungle with treks that are well maintained by the local authorities. If you plan to scale right to the top, do watch out for leeches because the sprays from the waterfalls encourage these blood-sucking creatures to breed. Swim in the lower reaches where you will be safer from leech attacks!

Another attraction is Ulu Kenas a recreational park on the road to Parit/Manong and 16km from KK, with beautiful streams and a camping site.

How To Get There

KK is about 50km to the north of Ipoh, the State of capital of Perak. All major cities and towns in the peninsula are connected by roads or highways with Ipoh from where it is easy to reach KK.

Use the North-South Expressway and exit at the KK toll plaza. Follow signboards to get into town. It takes about three hours' drive to reach KK from Kuala Lumpur.


Where To Stay

There is the government rest house and the Sg. Perak Safari Resort, both managed by the local town council, as well as several other hotels but the Double Lion might be your best choice because it has been run for three generations by the very experienced Leong family. The hotel display many colonial artifacts and antiquities and it has a bakery that adds to a refreshing ambience.

For reservations, call Kuala Lumpur Resthouse (05-776 4262), Double Lion Hotel (05-776 8010) Sg Perak Safari Resort (05-777 2020), Tasek Raban Resort (05-751 2799) or Lenggong Resthouse (05-7677 2077)

Source: The New Straits Times, Tuesday, December 18, 2007

Photographers needed worldwide!

Merdeka Square

Merdeka Square
By: David Koh

DATARAN Merdeka has been a focal point for many events. This was the historic site where the Union Jack flag was lowered and the Malayan flag first hoisted at midnight on August 31, 1957, our Independence Day.

This was originally the cricket green and rugby field belonging to the Selangor Club, now called Royal Selangor Club. The field was reclaimed by Kuala Lumpur City Hall in 1987 and developed into an underground shopping mall-cum-car park, with a new field laid on top of it. Plaza Putra, as it is called, is also the site from which a 100-metre high flagpole rises.

Dataran Merdeka is also known for the distinctive and icononic Bangunan Sultan Abdul Samad.(For Google map reference, please log on to http://maps.google.co.uk/and search for Kuala Lumpur).

SUPREME COURTS
After Independence, the building became the site for the Federal Court and Court of Appeals, Both courts have since been relocated to Putrajaya.

The building’s clock tower was used for the countdown to usher in every New Year. Dataran Merdeka attracts a large number of tourists each day. This historic venue is located between the hills of Lake Gardens and the Gombak River. In fact, just behind the courts, there is the famous muddy confluence that gives Kuala Lumpur its name.

RIVER’S EMBRACE
Dataran Merdeka happens to be located in an embracing concave of the Gombak River as it bends twice before joining Klang River. This is where gentle homogenous energy collects and attracts people. Further north, St Mary’s Anglican Cathedral is located at the convex of the river.

Properties located in the concave side ought to do well, provided their orientation is correct. This would be eastward to face the river or southward to follow the river flow. Those facing westward away from the river would struggle in business while north-facing buildings that go against the river flow would find its occupants experiencing mental problems.

Jalan Raja used to encircle Dataran Merdeka anf the Royal Selangor Club. However, part of the road is now sealed off and turned into a pedestrian walkway.

UNDERGROUND
Plaza Putra is an underground shopping complex-cum-car park. It has two entrances that face west and south. The south entrance is quite good as it follows the river flow. However, the west entrance is not as conducive because it faces the hills and puts the building’s rear to the river.

I am not in favour of underground buildings. Hollow spaces in the ground disrupt the flow of earth energy. Energy simply is blocked when it encounters the blank space.

Despite Plaza Putra’s uniqueness, Dataran Merdeka’s popularity with tourists and proximity to the business district, I fear it is not likely to do well.

The Royal Selangor Club, which used the Dataran Merdeka’s field for cricket, was and still is an exclusive club. This old Tudor-style building has two entrances but neither of them is ideal.

Next to the club is St Mary’s Anglican Cathedral. Its entrance faces south which follows the flow of the river. The church is also located on the outer convex of the river.

Let us take a little detour across Jalan Kinabalu, where we find Bank Negara. The entire central bank complex runs parallel to the Gombak River. The main entrance faces south and follows the flow of the river. This is a good configuration.

What keeps the central bank-and the nation’s fiscal health – going? The internal entrance from the car park into the building, I believe, also happens to face south. If it faced north, I would fear for our nation’s monetary future. An entrance that runs against the river flow would create problems.

Nearby, we find Bank Rakyat. Its entrance used to be at the back, facing the hill, into Jalan Tangsi. From a geomancy perspective, it is not good since it faces a hill and has Gombak River at its back.

Bank Rakyat was recently renovated and now has an entrance that faces the river. However, the entire Jalan Tangsi area sits at the outer convex of the river.

CONVEX VS. CONCAVE
Earth energy does not accumulate on the convex side of rivers. As energy reaches the riverbank, it is stopped by the river and deflected in an outward dispersal pattern. Energy only pools in an embracing concave. Thus, properties in this vicinity may not benefit much even if they face the river or have their backs ti higher ground. There is also the elevated highway, Jalan Kinabalu to contend with. Not only is it now “higher ground”, but fast moving traffic create strong winds that disperse energy.

The Sultan Abdul Samad building is located just beside the Gombak River on the embracing concave side. This is a very conducive location and probably explains its durability. Entrances that face the river (eastward) or follow the flow (southward) are good. When it was used as the courts, this was the case.

Source: The Star, Friday, February 22, 2008

Photographers needed worldwide!

Incentive For the Tourism Industry

Incentive For the Tourism Industry

Tourism projects, including eco-tourism and agro-tourism projects, enjoy tax incentives. These include hotel businesses, construction of holiday camps, recreational projects including summer camps, and construction of convention centres with a capacity to accommodate at least 3,000 participants.

Hotel business refer to the following:
>>Construction of medium and low-cost hotels (up to a three-star category hotel as certified by the Ministry of Tourism)
>>Expansion/modernization of existing hotels

1. Main Incentives For the Tourism Industry

(i) Pioneer Status

A company granted Pioneer Status enjoys a 5-year partial exemption from the payment of income tax. It will only have to pay tax on 30% of its statutory income, commencing from its Production Day which is determined by the Minister of International Trade and Industry.

Applications received from companies located in promoted areas i.e the States of Perlis, Sabah, Sarawak, the Federal Territory of Labuan and the designated ‘Eastern Corridor’ of Peninsular Malaysia are eligible for a 100% tax exemption of their statutory income during the 5 year exemption period. This incentive applies to all applications received by 31 December 2010.

Accumulated losses and unabsorbed capital allowances incurred during the pioneer period by companies whose pioneer status will expire on and after 1 October 2005 are allowed to be carried forward and deducted against post-pioneer income of a business relating to the same promoted activity or promoted product.

Applications should be submitted to MIDA.

(ii) Investment Tax Allowance

As an alternative to Pioneer Status, a company may apply for Investment Tax Allowance (ITA). A company granted the ITA gets an allowance of 60% of the qualifying capital expenditure incurred within five years from the date on which the first qualifying capital expenditure is incurred.

Companies can offset this allowance against 70% of their statutory income in the year of assessment. Any unutilised allowance can be carried forward to subsequent years until the whole amount has been used up. The remaining 30% of the statutory income will be taxed at the prevailing company tax rate.

Applications received from companies located in the promoted areas i.e. the States of Perlis, Sabah and Sarawak, the Federal Territory of Labuan and the designated “Eastern Corridor” of Peninsular Malaysia, will enjoy an allowance of 100% on the qualifying capital expenditure incurred within a period of five years. The allowance can utilised to offset against 100% of the statutory income for each year of assessment. All project applications received by 31 December 2010 will be eligible for this incentive.

Applications should be submitted to MIDA

(iii) Additional Incentives for Hotels and Tourism Projects

Applications received by MIDA from companies to reinvest in the expansion, modernisation and renovation of hotels and tourism projects will be eligible for another round of Pioneer Status or Investment Tax Allowance. However, hotels and tourism projects located in the promoted areas are eligible for the Pioneer Status incentive in accordance with that given to promoted areas:

a) Pioneer Status, with a 100% income tax exemption. Accumulated losses and unabsorbed capital allowances incurred during the pioneer period by companies whose pioneer status will expire on and after 1 October 2005 are allowed to be carried forward and deducted against post-pioneer income of a business relating to the same promoted activity or promoted product; or

b) Investment Tax Allowance of 100%. The allowance can be offset against 100% of the statutory income in each year of assessment. Any unutilised allowances can be carried forward to subsequent years until the whole amount has been fully utilised.

(iv) Incentives for the Luxury Yacht Industry

The luxury yacht industry is promoted as part of tourism product and is eligible for the following incentives:

>>Companies that construct luxury yachts are eligible for the Pioneer Status incentive

Applications should be submitted to MIDA

>>Companies that carry out repair and maintenance activities for luxury yachts in the island of Langkawi, Malaysia are eligible for an income tax exemption of 100% for five years.

Applications should be submitted to the Ministry of Finance

>>Companies that provide chartering services of luxury yachts in the country are eligible for an income tax exemption of 100% for a period of five years.

Claims should be submitted to the IRB.

2. Additional Incentives for the Tourism Industry

(i) Double Deduction on Overseas Promotion

Hotels and tour operators qualify for a double deduction on the expenditure incurred for promotional activities overseas. The qualifying expenditure are:

>Expenditure on publicity and advertisement in any mass media outside Malaysia

>Expenditure on the publication of brochures, magazines and guide books, including delivery costs that are not charged to the oversea customer;

>Expenditure on market research into new markets overseas, subject to the prior approval of the Minister of Tourism;

>Expenditure that includes fares to any country outside Malaysia to negotiate or secure a contract for advertising or participating in trade fairs, conferences or forums approved by the Minister of Tourism. Such expenses are subject to a maximum of RM300 per day for lodging and RM150 per day for food for the duration of the stay overseas;

>Expenditure in organizing trade fairs, conferences of forums approved by the Minister of Tourism; and

>Expenditure on the maintenance of sales office overseas for purposes of promoting tourism in Malaysia

Claims should be submitted to the IRB.

(ii) Double Deduction on Approved Trade Fairs

Companies also enjoy a double deduction on expenditure incurred in participating in an approved international trade fair in Malaysia.

Claims should be submitted to the IRB.

(iii) Tax Exemption for Tour Operators

a) Foreign Tourists

Tour operators who bring in a at least 500 foreign tourists in a group in a year through groups, inclusive of tours that enter and exit the country by air, sea or land transportation, will be exempted from tax in respect of income derived from the business of operating such tours. This incentive is only applicable to tour operators licensed by the Ministry of Tourism.

b) Local Tourists

Companies that organise domestic tour packages for at least 1,200 local tourists per year get a tax exemption on the income earned. A domestic tour means any tour package within Malaysia participated by local tourists (excluding inbound tourists) by air, land or sea transportation involving at least one night’s accommodation.

Effective from 2 September 2006, the incentive is extended for another 5 years from the year of assessment 2006 until the year of assessment 2011.
Claims should be submitted to the IRB.

(iv) Tax Exemption for Promoting International Conference and Trade Exhibition

a) Local companies, which promote international conferences in Malaysia, qualify for tax exemption on the income earned from bringing at least 500 foreign participants into the country.

b) Income earned from organizing international trade exhibitions in Malaysia qualifies for tax exemption as long as the exhibitions are approved by MATRADE and the organizers bring in at least 500 foreign visitors per year.
Claims should be submitted to the IRB.

(v) Deduction on Cultural Performance

Expenditure incurred by companies promoting and managing a musical or cultural group and sponsoring local and/or foreign cultural performance as approved by the Ministry of Tourism, qualifies for a single deduction.

To further encourage the private sector to sponsor local arts, cultural and heritage performances and shows, expenditure incurred in sponsoring such performances and shows be increased from RM300,000 to RM 500,000. However, the ceiling for deduction allowed on foreign performances and shows remains at RM200,000 per year effective from year of assessment 2007.

Claims should be submitted to the IRB.

(vi) Incentive for Car Rental Operators

Operators of car rental services for tourists are eligible for full excise duty exemption on the purchase of national cars.

However, effective 2 September 2006, to enable tourist to explore challenging destinations, tour operators are also eligible for a 50% excise duty exemption on locally assembled 4WD vehicles.

Applications should be submitted to the Ministry of Finance.

Source: MIDA: Malaysia: Investment in the Manufacturing Sector: Policies, Incentives and Facilities
February 2007

The latest updates, please visit http://www.mida.gov.my

Photographers needed worldwide!

Spotlight on Visit Malaysia Year II

Visit Malaysia Year 2007 (VMY) got off to a slow start, says CIMB Research, which started promoting the VMY 2007 theme a year ago. It was confident the country could then easily pull off a 15% rise in tourist arrivals to 20.1million. But the year got off a bad start as floods in Johor deterred some tourists.

VMY 2007 Arrivals

To recap, VMY 2007 is not merely about attracting tourists and their spending power, but also about celebrating Malaysia’s 50th anniversary of independence. The government pulled out all the stops to ensure the event is a success.

It has succeeded by all accounts though earlier in the year, there were serious misgivings about the country’s target of 20.1 million tourists for 2007. Before the start of the year, the target did not seem overly ambitious, being just 15% higher than the estimated 17.5 million arrivals for 2006.

But tourist arrivals in the early part of the year appeared to be somewhat behind expectations, partly because of floods in Johor, which were the worst in 100 years. For a while, we were concerned that VMY 2007 would turn out to be disappointment. Fortunately, our fears were unfounded.

Tourist arrivals have bee n respectable from the very start of the year, with January arrivals up 12% on-month and 18%-year. But the real pick-up was seen in May when arrivals surged more than 30% on-year. First half arrivals of 10.7 million were 25% higher on-year, 10 percentage points higher than the government’s target for full year growth.

Tourist receipts have been even stronger with 1H proceeds rising 46% on-year to RM24 billion or 53% of the full year target of RM 45billion. The jump in tourism is backed by anecdotal evidence of high Kuala Lumpur hotel occupancy of over 90% in July and Aug as tourists packed the capital during the Golden Jubilee Merdeka celebrations.

In fact, tourist numbers for Malaysia recently overtook Singapore’s and are closing in on Thailand’s.

Winning Sectors

Many industries are beneficiaries of the higher tourist arrivals –tourism, airlines, tolled highways, hotels, retail and consumer sectors. Transport companies are winners from VMY as air travel makes up 21% of total transport and domestic airfares amount to 3% of tourist spending.

Airlines

AirAsia’s Malaysian passenger traffic soared 42% to 4.5 million in 1H07, driven by strong demand growth, which was supported by higher capacity.

MAS is also one of the key beneficiaries of increased passenger traffic into Malaysia. In July, MAS’s international passenger load factor rose to 75.6%, against an average of 70.5% in 2Q, reflecting the onset of summer travel demand and heightened sales initiatives.

Tolled Highways

As 75% of tourists coming to Malaysia arrive by road and another 10% of tourism spending goes to local transportation, highway concessionaires will benefit form greater usage. PLUS Expressways’ North South Expressway captures traffic from Singapore and Thailand and is the main highway used for intercity travel.

Traffic on the highway grew 6.9% yoy in the first eight months of 2007 versus growth of only 2.3% in 2006 and 0.35 in 2005. Traffic volume growth on the highway was given a boost this year by the absence of a toll hike and the government’s pledge to maintain petrol prices.

Our forecast of 3% traffic growth for PLUS in 2007 appears to be conservative, as the group’s three highways have recorded double that growth in January – August.

Hotels

KLCC Property’s Mandarin Oriental Hotel has enjoyed a jump in occupancy rates from 80% - 85% a year ago to 90% recently while room rates have surpassed RM 600/night vs RM500-RM550/night last year.

Genting Highlands, which has 10,000 hotels and is a major tourist destination in Malaysia, recorded a 12% on-year increase in arrivals to 10 million I 1H07. This is a record for the highlands, which is an hour’s drive from Kuala Lumpur. As a result of the surge in arrivals, Resort World’s hotel occupancy rates jumped 14% y-o-y to 86% in 1H07.

VMY 2007 Extended to Aug 08

Two factors will sustain the momentum of VMY 07 beyond this year. VMY 07, as its name implies, was supposed to end on Dec 31, 2007. But the government extended the event to a year after the 50th Independence Day celebrations as this year is Malaysia’s Golden Jubilee and celebrations are intended to last an entire year. This means that VMY 2007 will end on Aug 31, 2008.

Also, in the recent 2008 Budget, the Finance Ministry allocated a larger amount of RM858 million for the implementation of various tourist programmes, including the provision and upgrading of tourism facilities as well as the diversification of tourism products. This figure is far bigger that the RM149 million set aside for promotional efforts under the 2007 Budget.

An extended VMY 2007 is certainly good news, not only for sectors that will benefit form continued high inflow of tourists, but also for the overall economy and general sentiment.

As we elaborated in our Nov 6 2006 note, the VMY 2007 programme is not just about economies but also politics. Also, as we explained in the Malaysia Strategy piece we released on June 27, 2007, we are increasingly of the view that general elections will be held later rather than sooner, perhaps in 2H 2008 or even the early 2009 deadline. It is hope that an extended VMY 2007 will buoy spending, corporate profits and consumer sentiment.

Furthermore, the VMY programme will help put the country on the tourist map, furthering Malaysia’s longer-term tourism ambitions.

Best Proxies for VMY 2007

In our view, the best proxies for VMY 2007 include transport companies such as AirAsia, MAS and PLUS Expressway as well as tourism-related companies such as Resorts World and KLCC Prop.

AirAsia’s budget travel business has gained from its capacity expansion that will allow it to accommodate higher demand. MAS has enjoyed a marked increase in its international passenger load factor while PLUS’s traffic volume growth this year is double our expected rate.

A prolonged VMY 2007 will benefit Resorts, which is already enjoying record arrivals. KLCC Property’s Mandarin Oriental hotel and Suria KLCC shopping complex are also direct beneficiaries of increased tourism.

AirAsia

AirAsia’a network around Asean will also benefit from the success of VMY 2007, helping the low-cost carrier to fill more seats as more planes are delivered. AirAsia is also increasing its penetration into southern China, where the boom in travel demand is pushing Chinese tourists all across South-East Asia and beyond.

The impending launch of AirAsia X’s long-haul flights to Australia and China will also ride on the success of the VMY 2007 campaign and bring tourists into AirAsia’s short haul network. Although fuel prices threaten to spoil the party, AirAsia is extremely leveraged to US$ depreciation and very sensitive to higher fuel surcharges.

KLCC Property

The company owns the best real estate in Malaysia, primarily buildings around the Kuala Lumpur City Centre including the iconic Petronas Twin Towers. Other prime assets held by the group include the 5 star Mandarin Oriental Hotel, arguably the best and most popular hotel in Kuala Lumpur, and Suria KLCC shopping mall which is the premier shopping destination in Malaysia.

The Mandarin Oriental and Suria KLCC are both beneficiaries of higher tourist arrivals as profitability of hotels is leveraged to room and occupancy rates while Suria KLCC derives 10% to 15% of its earnings from revenue sharing with tenants.

MAS

As the national airline, MAS is on of the key beneficiaries of increased passenger traffic into Malaysia. On top of that, active yield and load management will begin to show results.

In July, MAS’s international passenger load factor rose to 75.6%, against an average of 70.5% in 2Q, reflecting the onset of summer travel demand and heightened sales initiatives.

High fuel costs are manageable in a strong demand environment as fuel surcharges are raised. The main share price catalyst is a set of strong 2H results, which will increase confidence that MAS is on course for sustained profitability.

PLUS Expressways

We maintain PLUS Expressways as an OUTPERFORM as the company is one of the main beneficiaries of the rise in travel during VMY 2007.

Traffic volume growth for the Jan-Aug period was double our full year growth forecast of 3%. The three domestic highways, coupled with its existing three overseas highway ventures (one in India and two in Indonesia) and two local highway acquisitions (Elite and Linkedua), will transform the group into a regional player with new recurring income streams.

Dividend yields remain a draw at 5%-6%.

Resorts World

Resorts own Genting Highlands resort, arguably Malaysia’s largest tourism attraction, which is expected to attract 20m visitors this year.

With a 10,000 room inventory, Resort is hitting 90% average occupancy, pointing to its appeal to both domestic and foreign tourists.

This is undoubtedly positive for its casino gaming operations, which are riding on higher headcount and spending per head. Improving yield management will underpin bottomline growth.

Other catalysts include potential M&A activity, capital management initiatives and likely upward revision in its dividend policy.

Source: FinancialDaily, Monday, October 1, 2007


Photographers needed worldwide!