Transparent is vital for a good governance of a corruption-free government. Although the Prime Minister is entrusted with the power to make decision for the country but that does not spare him from being question and be transparent about his decision to the people. Running a country may not be as simple as managing a family household. People deserve to know what is the reason behind government decision. People entrusted the power to the Prime Minister to represent the people and lead the country in the interest of people, not merely lip service. Of course, everyone know the art of politics is to let the mass belief what the politician want them to belief.
In this context, I have written to ASASI (a NGO advocate for human right) because I smell fishy in the recent dealings from Tun Dr. Mahathir visit to China and the abruptly intention to ban foreigner from buying Forest City Property. Unlike the wild spreading scandal haunting Jibby, Tun Mahathir is a much experience and skillful politician that probably able to make things went undetected. However, I would like to make clear that I'm not accusing him for any wrong doing since not many people have access to information about what is being discussed between top government officials. Certainly a nobody like me will only use logic to presume unusual things.
While this have nothing directly related to Sustainable Development other than the heavy carbon footprint left by such grand development need to find reason (such as occupancy and economy benefit). The greenest building is not to build vis-a-vis " the most polluted building is those unoccupied".
The possibility I presumed for Tun Dr. Mahathir decision are as enumerated below;
Possibility 1: Mutual agreement with China government to ban foreigners buyer which effectively stop China Chinese from buying(since 2/3 of the buyers are Chinese) thus it will benefit China from avoiding cash outflow. In return, Malaysia get to stop many of the mega-project awarded to China state-owned company without or with minimum penalty cost.
Possibility 2: China government bribe Tun Dr. Mahathir to stop selling to foreigner buyers in order to stop Chinese investor from cash outflow.
Possibility 3: The Malaysia government genuinely think allow foreigner buy property there bring no more benefit than restrict them, whether for economy reason or sovereignty issues or social (affordability for local people).
Possibility 4: Locking horn with Sultan Johor. A personal/ political revenge against the royalty. Stop foreigner from buying the property effectively scrap off the profit of investor since 2/3 are from China Chinese(foreigner) buyers and the rest are from others foreigners.
The possible outcome is plummeting of Forest City property prices for developer to salvage whatever possible in order to offset loses, but it will not be any time soon. Even it does, maintenance cost will still beyond local affordability. Investors will feel the pain like women deliver baby, ouch!
The economy in vicinity of Forest City will severely affected and so does foreign investor sentiment. Foreign investor will be more cautious to invest in Malaysia due to volatility of the political landscape. Tun Dr. Mahathir is seen to be more pro Japan than China while his predecessor is another way round, however, in politics nobody is known for sure pro who at any moment of time in their life.
If it is a deal with China to stop all mega-projects awarded to China state-owned company that deemed bring no greater benefit to Malaysia then this may be a way to go.
Why?
The world economy is almost at its peak and with many big country like Russia withdrawn from US dollars, big investor start to play slow, and tension of international trade become intense (e.g. China and USA). It seems like the dark cloud is about to precipitate. Another world economy crisis? presume another world economy crisis is about to shower down Malaysia then it is best to stop all those mega-project before too late. if the prediction is true, then Tun Dr. Mahathir made a good deal because when world economy crisis arrive those foreign investor will probably not be able to serve the mortgage too. They probably run back to their own country to recuperate from financial loss or dead. so ban them from falling into their own tomb hole in return to cancel off mega-project penalty cost not only save Malaysia money(risk exposure) but also save the financial institution (banks). Note that Malaysia don't responsible for foreigner's bankruptcy.
This is important because if Malaysia can not pay back China during the construction of those mega project the debt will snowballing to a sum Malayisa considered sold to China. Money is power!
However, if Tun Dr. Mahathir is smart enough to get cash rich Japan help to withstand through the coming crisis and play the contractor (China state-owned) then China will suffer huge financial pain like bitten by Tengu (天狗). Hence, it is not bad for China to let go of those mega-project too.
Nevertheless, it is worth highlight that the Forest City has a very attractive economy prospect. it is expected to have a 700,000 household, a town by itself. Residents are expected to be rich. if each spend RM 10,000/month then it is RM7billion/month money moving in Malaysia. SST 6% tax along able to harvest ~RM420million/ month(assumed tax everything they buy)! Since most are foreigners, they will either bring in money from their country or invest business in Malaysia to sustain their resident here thus we should not overlook to the potential of the economy from Forest City.
Basically, It is a tough life for me after surviving through a suffocating life here. Everyone is seems so selfish and self-centred that nobody trust nobody but appear to trust everybody. Not sure this is Malaysia or Asia things but they say "Malaysia truly Asia".
My message for ASASI is as below;
In this context, I have written to ASASI (a NGO advocate for human right) because I smell fishy in the recent dealings from Tun Dr. Mahathir visit to China and the abruptly intention to ban foreigner from buying Forest City Property. Unlike the wild spreading scandal haunting Jibby, Tun Mahathir is a much experience and skillful politician that probably able to make things went undetected. However, I would like to make clear that I'm not accusing him for any wrong doing since not many people have access to information about what is being discussed between top government officials. Certainly a nobody like me will only use logic to presume unusual things.
While this have nothing directly related to Sustainable Development other than the heavy carbon footprint left by such grand development need to find reason (such as occupancy and economy benefit). The greenest building is not to build vis-a-vis " the most polluted building is those unoccupied".
The possibility I presumed for Tun Dr. Mahathir decision are as enumerated below;
Possibility 1: Mutual agreement with China government to ban foreigners buyer which effectively stop China Chinese from buying(since 2/3 of the buyers are Chinese) thus it will benefit China from avoiding cash outflow. In return, Malaysia get to stop many of the mega-project awarded to China state-owned company without or with minimum penalty cost.
Possibility 2: China government bribe Tun Dr. Mahathir to stop selling to foreigner buyers in order to stop Chinese investor from cash outflow.
Possibility 3: The Malaysia government genuinely think allow foreigner buy property there bring no more benefit than restrict them, whether for economy reason or sovereignty issues or social (affordability for local people).
The possible outcome is plummeting of Forest City property prices for developer to salvage whatever possible in order to offset loses, but it will not be any time soon. Even it does, maintenance cost will still beyond local affordability. Investors will feel the pain like women deliver baby, ouch!
The economy in vicinity of Forest City will severely affected and so does foreign investor sentiment. Foreign investor will be more cautious to invest in Malaysia due to volatility of the political landscape. Tun Dr. Mahathir is seen to be more pro Japan than China while his predecessor is another way round, however, in politics nobody is known for sure pro who at any moment of time in their life.
If it is a deal with China to stop all mega-projects awarded to China state-owned company that deemed bring no greater benefit to Malaysia then this may be a way to go.
Why?
This is important because if Malaysia can not pay back China during the construction of those mega project the debt will snowballing to a sum Malayisa considered sold to China. Money is power!
However, if Tun Dr. Mahathir is smart enough to get cash rich Japan help to withstand through the coming crisis and play the contractor (China state-owned) then China will suffer huge financial pain like bitten by Tengu (天狗). Hence, it is not bad for China to let go of those mega-project too.
Nevertheless, it is worth highlight that the Forest City has a very attractive economy prospect. it is expected to have a 700,000 household, a town by itself. Residents are expected to be rich. if each spend RM 10,000/month then it is RM7billion/month money moving in Malaysia. SST 6% tax along able to harvest ~RM420million/ month(assumed tax everything they buy)! Since most are foreigners, they will either bring in money from their country or invest business in Malaysia to sustain their resident here thus we should not overlook to the potential of the economy from Forest City.
Basically, It is a tough life for me after surviving through a suffocating life here. Everyone is seems so selfish and self-centred that nobody trust nobody but appear to trust everybody. Not sure this is Malaysia or Asia things but they say "Malaysia truly Asia".
My message for ASASI is as below;
refer to the facebook posts and link below, this issues might not directly related to human right but the transparency and integrity of High Public Official. Refer to The Edge Newspaper dated 28th August 18, Tun Dr. Mahathir recently announced the USD100 billion Forest City property development is not for foreigner buyer.
I would like to dissect the decision by Tun Dr. Mahathir in regard to the matter. Forest City is developed by Chineses' developer and targeted for high-end market and two third of the buyers are from China. a few points worth noting are:
-From China government perspective, the project result cash outflow from the country (China) is not very good for China economy. Thus China will do anything to stop it.
-Forest City has a very narrow target clients and linked to much of the clientele from China and Hong Kong thus has a very niche market that does not affect the local market much, since it is almost certain the price bracket is beyond affordability of the average folks here.
-The project benefit Malaysia construction market and job market.
-Since the project market is very niche thus the nearby or elsewhere in Malaysia is less likely to negatively affected by it in terms of price war. Therefore the question of affordability for local do not exist because it does not affect the prices of others project much.
-If the project is occupied by wealthy foreigners than local economy will be benefitted. others business around the area such as food, shopping malls, education institution, automobile, public transport, luxury brands retailers and entertainment industry will be benefited tremendously, as well as the government.
-Wealthy residents will bring good economy to Malaysia.
these are the opportunity cost Malaysia will miss out if decided to restrict foreign buyers. The ramifications of such decision will probably see the followings;
- Stagnant in sales thus affect the economy
-Nearby business lost the potential business and job opportunity.
-Government loss out the potential tax collected from supply the wealthy foreigners maintenance.
However, else where in the world like Singapore, Australia and Toronto (Canada) is increasing the stamp duty to cool down the property market in order to make it affordable for the local. Also worth highlight that unlike Forest City case Chinese investor there is competing with the local in buying local property market which directly affect the affordability and ownership rate of the local people in the respective country.
Instead of increase stamp duty or even double up like what Australia did, why Tun Dr. Mahathir intend ban it totally without consider the economy effects as a result? Especially after visited China. I'm not accusing any corruption cases but government should give valid reasons for the decision.
I hope the government is more transparent about any decision they made to avoid any unnecessary suspicion.
China government is known for their result-oriented action (by all means). By hook or crook, China will do anything to protect the interest of China. We do not know if there is any corruption cases in the matter and shall not accused without evidents but it is very unlike for any outsider to access into top official dealings.
As citizen, what we could do is demand the logic behind the decision. What the decision benefit the people? after all they are elected to represent rakyat(citizen) and answerable to the people.
I'm a non-partisan. I belief assess matter objectively without political influence is of paramount to land on the sound review of their decision and action.
Henceforth, may I ask NGO like you to demand logic and more details about such decision made by the government.
Reference:
http://www.theedgemarkets.com/article/forest-city-not-foreign-buyers-%E2%80%94-pm
http://mobile.abc.net.au/news/2017-08-31/chinese-property-investment-starts-to-cool/8858866
https://m.scmp.com/week-asia/politics/article/2064002/real-reason-malaysias-mahathir-taking-sultan-johor?amp=1
http://seawapa.org/crisis/
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