EP 2 FRIDAY FEBRUARY 23, 2018 • THEEDGE FINANCIAL DAILY

NEWS HIGHLIGHTS from www.EdgeProp.my

PAM: Malaysian buildings need stricter regulations First sub-MC in to be formed The recent collapse of a hotel wall at Bukit Tinggi, underscores The fi rst subsidiary management the need for all building structures corporation or sub-MC in Malaysia is in Malaysia to be strictly regulated, set to be formed at the 1 Mont’Kiara said the Malaysian Institute of Ar- mixed-use stratifi ed development. chitects (PAM) in a statement. The proposal to form the sub- The incident, which took place MC by the 1 Mont’Kiara Dan Kiara on Feb 21, saw an elderly person 2 Management Corporation has and a young boy injured, and 90 received the required agreement hotel guests evacuated as a precau- from two-thirds of the aggregate tionary measure. share units in the development. PAM president Ezumi Harzani The poll result was made offi cial Ismail said that hotels must have a at an extraordinary general meet- Certifi cate of Fitness for Occupation ing held on Feb 5. (CFO) or Certifi cate of Completion Sub-MCs were introduced un- The Edge Property Sdn Bhd (1091814-P) and Compliance (CCC). der the Strata Management Act Level 3, Menara KLK, He also said that hotels that 2013 to address the issue of the No 1 Jalan PJU 7/6, Mutiara have been renovated and extend- maintenance of common property Damansara, 47810 , , Malaysia ed are subjected to CFO and CCC, in a mixed-use stratified devel- depending on the work done to the opment. EdgeProp.my structure, walls, doors, facade, and mechanical and electrical installa- Managing Director/Editor-in-chief Au Foong Yee tions. Moreover, as hotels are com- declined to say when, reported The mercial properties, they fall under Malaysian Insight. EDITORIAL the high fi re risk category known as “All the documents have been Executive Editor Sharon Kam Editor Lam Jian Wyn “designated building” under the Fire signed and we are in the middle of Deputy Chief Copy Editor Services Act. submitting them,” he said. James Chong According to him, Felda is in Copy Editor Geraldine Tan Be patient with possession of the land grant and Senior Writer Rachel Chew land transfer probe, letter to transfer ownership, and is Writers Natalie Khoo, waiting to register the latter. Shawn Ng, Lum Ka Kay says Felda Art Director Sharon Khoh Design Team The Federal Land Development Au- Pavilion’s Desmond Jun Kit, Rajita Sivan thority (Felda) has called for pa- Lim eyes Subang For New Launches/Events/ tience as an investigation into the Press Releases/News Tips dubious land transfer of its Jalan Skypark email: [email protected] Semarak land is underway, with the Property magnate Tan Sri Desmond Airports Holdings Bhd (MAHB) to a high plot ratio given its proximity Tel: 03-7721 8211 Fax: 03-7721 8280 documents to retrieve the 16 parcels Lim is allegedly planning to buy a operate its city airport terminal and to the airport. ADVERTISING & MARKETING to be submitted soon. 60% stake in Subang Skypark Sdn integrated commercial and busi- It is unclear how the billionaire Associate Account Director, Felda chairman Tan Sri Shahrir Bhd for an undisclosed sum, with ness aviation hub, reported The will proceed with the acquisition, as Advertising & Marketing Heidee Ahmad (019) 388 1880 Samad said it had prepared impor- intentions to redevelop the land Edge weekly. he may either take up the stake pri- Senior Account Manager tant documents — such as Form surrounding Sultan Abdul Aziz Lim is said to be earmarking vately or via his listed construction Ian Leong (012) 359 1668 14A for the transfer of ownership — Shah Airport in Subang, where the parcels within the site for low-rise and property development group Account Managers Jeffrey Yeoh (016) 217 9227 and will submit them to the Kuala company has a long sub-lease con- development such as malls, con- WCT Holdings Bhd, where he holds Khairul Amilin Ismail (019) 426 5101 Lumpur land office, although he cession agreement with Malaysia sidering that the land will not have a 19.57% share, said sources. Joane Tan (012) 377 2885 Maddox Wong (012) 342 2707

Marketing Support & Ad Trafˎ c How do I get past issues of this weekly pullout? Madeline Tan (03) 7721 8218 trending email: [email protected] now Go to www.EdgeProp.my to download for free. NEGOTIATOR & CUSTOMER ADVISORY SERVICE Senior Manager Elizabeth Lay Senior Associate Stannly Tan LAUNCHES + EVENTS If you have any real estate-related events, email us at [email protected]. For enquiries and listings Events listed here will also appear on www.EdgeProp.my. email: [email protected] GL: (03) 7721 8175/ 8172 City of Elmina CNY S P Setia CNY open house Heights, Semenyih, Selangor EdgeProp.my pullout is published open house Date: Feb 25 (Sun) Contact: (1800) 888 008 by The Edge Property Sdn Bhd. It is available with The Edge Financial Date: Feb 24 (Sat) Time: 10am to 5pm Light the lanterns and usher in the Daily every Friday. The pullout Time: 10am to 5pm Venue: Setia Galleria, Lunar New Year with UEM Sunrise is also distributed at more than Venue: Elmina Pavilion, 14124, Jalan P15H, Bhd. The activities include a lion 200 ofˎ ces, shopping complexes, condos, medical centres, F&B outlets Persiaran Eserina, Elmina East Presint 15, Putrajaya dance, cultural performances and and LRT stations in the . Sek U16, Shah Alam, Selangor Contact: dough doll-making demonstration. You can also download it for free at www.EdgeProp.my Contact: (03) 7831 2253 (03) 8861 6500 Sime Darby Property Bhd is hosting IJM Land celebrates a open house at CNY @ Pengerang Th e Edge Malaysia the City of Elmina. Activities at the Date: Feb 25 (Sun) open house include a lion dance, Time: 10am to 5pm Publisher and Group CEO 24-season drums, calligraphy and Venue: Sebana Cove Property Ho Kay Tat more. For prospective homebuyers, Gallery, Persiaran Sebana Utama, BRDB celebrates CNY @ Tamansari, Rawang EDITORIAL there will be special rebates of up Sebana Cove, Kota Tinggi, Editor-in-Chief Azam Aris to RM10,000, valid until March 31. Contact: (07) 710 2118 Date: Feb 25 (Sun) CORPORATE S P Setia Bhd will be hosting a IJM Land Bhd celebrates the Time: 10am to 5pm Chief Operating Ofˎ cer CNY celebration Lim Shiew Yuin Chinese New Year open house in Lunar New Year with an open Venue: Tamansari BRDB ADVERTISING & MARKETING @ The Robertson Putrajaya this Sunday. There will house in Johor. Join in the Sales Gallery, Jalan Batu Chief Commercial Ofˎ cer Date: Feb 24 (Sat) be an acrobatic lion dance, Chinese festivities while fi nding out Arang, Rawang, Selangor Sharon Teh (012) 313 9056 Time: 11.30am to 4pm cultural dance and instrumental more about the developer’s Contact: (03) 2727 7550 General Manager Kingston Low (012) 278 5540 Venue: The Robertson Lifestyle performances, game booths, food special promotional packages. BRDB Developments Sdn Bhd Senior Sales Managers Gallery, G7 & G8, 2 Jalan Robertson, carts and cash-grabbing machine. invites all to join its fun-fi lled Fong Lai Kuan (012) 386 2831 , Lunar New Year celebration, Gregory Thu (012) 376 0614 CNY open house Creative Marketing Contact: (012) 260 6662 which will feature a Chinese Chris Wong (016) 687 6577 Celebrate CNY at The Robertson @ Serene Heights drum performance, among Head of Marketing Support with Gamuda Land and meet Date: Feb 25 (Sun) others. The event is also held in & Ad Trafˎ c 988 FM DJs Danny and Cheryl. Time: 10am to 5pm conjunction with the launch of Lorraine Chan (03) 7721 8001 Delicious festive delicacies, BaZi Venue: Serene Heights Sales Art in The Park Sculptural Project reading and investment tips await! Gallery, Persiaran Serene, Serene in the Tamansari township.

EP 4 FRIDAY FEBRUARY 23, 2018 • THEEDGE FINANCIAL DAILY NEWS GCI Development debuts in KL with hilltop villas in Taman Bukit Desa

GCI DEVELOPMENT LOW YEN YEING | EdgeProp.my BY LUM KA KAY

KUALA LUMPUR: Having developed four projects in Singapore, GCI Development Sdn Bhd has made its debut in Malaysia with a boutique development comprising eight luxury villas in Taman Bukit Desa, Kuala Lumpur. With a GDV of RM38 million, the freehold 0.45-acre Residensi Millenia offers 6-storey villas with a basement, four levels of living space and a rooftop terrace, said GCI De- velopment executive director Walter Chew. Prices start from RM4.3 million with built- ups ranging between 5,403 sq ft and 6,540 sq ft. Every villa will have five bedrooms “There is always a and will be partially furnished with dry and wet kitchen cabinets, laundry and demand for unique and bathroom cabinets, kitchen appliances, high-quality properties washing machine and dryer, air-condition- as shown by the strong er and branded sanitary wares. There will interest in our project.” be marble flooring in the living area and — Chew solid timber flooring in all family areas An artist’s impression of Residensi Millenia, located in the revitalised Taman Desa and bedrooms. Each home will also sport a private glass lift offering unblocked city we would have had to build a high-densi- construction business. Hence, he believes Residensi Millenia is only a stone’s throw views. The gated-and-guarded project will ty project in order to recoup the land cost. in a hands-on approach so he could keep a from the future commercial and transport have 24-hour security and a 6ft perimeter Moreover, the land is unencumbered and close eye on project quality and costs. hub at Bandar Malaysia where there will wall topped with electric fencing. since this is a very niche and exclusive de- “Our edge is our agility and our highly be two mass rapid transit stations, the “[Our maiden foray into the Klang Valley] velopment, we did not have to rely on bank experienced people, coupled with the tech- KL-Singapore High-Speed Rail Terminal, has been very encouraging. We have man- borrowings to fi nance it. nical skills that we have brought over from and platforms for KTM Komuter and KLIA aged to sell a few units before even [offi cially] “Our conservative strategy has enabled Singapore where the market is much more Transit. launching the project,” said Chew, adding us to fully focus our attention on getting it demanding,” he said. Moving forward, Chew plans to develop that the offi cial launch could be after Chi- all right from the beginning to ensure we Chew expects the Malaysian property larger property projects in Malaysia, espe- nese New Year. Th e villas are expected to be deliver a high-quality product,” he said. market to remain flat in the short term. cially in the southern region. completed in two years’ time. GCI Development has completed sever- “But there is always a demand for unique “We are in the process of planning a few “Taman Desa is on the verge of revital- al niche luxury residential projects — two and high-quality properties as shown by projects in established neighbourhoods isation. Families have been living here for landed and two non-landed in Singapore, the strong interest in our project,” he noted. in Johor Bahru, aimed at local purchasers. many years. Th e houses have remained the namely Costa Este, D’ Kenaris, Casa Meya “Th e government is investing billions to “We have a clear picture of what we need same and there are some very old eateries and Resi @ Limau. All projects were sold upgrade transport infrastructure. There- to do in order to achieve our long-term here. It’s a step back into the past when you out and completed. fore, in the medium term, we expect to see plans. Th is includes building our reputa- come to Taman Desa. As a former group corporate fi nance head a rebound in the property market, espe- tion not only with potential purchasers and “We bought the land a few years ago when of a Bursa-listed construction company, cially with transit-oriented development end-users, but also with all stakeholders in prices were a lot lower than today. Otherwise, Chew hails from a family that used to run a projects,” he said. the industry,” he said.

MAREC’18 to focus on tackling challenges in the digital age

MAREC BY LUM KA KAY “MAREC’18 will be focusing terms of technology but also in forward” and BOVAEP president more on the future landscape of terms of our social lifestyle, our Nordin Daharom who will touch PETALING JAYA: More than 300 the industry and how we can an- environment, legality issues, eco- on “Multi-level marketing in the real estate industry players across ticipate new challenges that are nomic factors and investor appe- real estate industry?” Malaysia and overseas are expected awaiting us,” said Tan, who is also tite,” he added. EdgeProp.sg CEO Bernard Tong to attend the upcoming Malaysian on the MIEA Board of Directors and Beyond tackling digital transfor- will also be speaking on the topic Annual Real Estate Convention an associate director at Hartamas mation in the industry, MAREC’18 of “Leveraging on property data 2018 (MAREC’18) on March 2 and 3 Real Estate Sdn Bhd. will also cover broader issues such analysis to maximise productivity” at Sime Darby Convention Centre, According to him, the theme as changes to Act 242, which now on the second day of the event. Tong Kuala Lumpur. “Embracing changes with inno- includes regulating and registering will share how industry players Organised by the Malaysian vation” was chosen for the confer- property managers under the Board can harness data to benefi t their Institute of Estate Agents (MIEA), ence to refl ect the challenges faced of Valuers, Appraisers, Estate Agents businesses. the annual convention will see by the real estate industry brought and Property Managers (BOVAEP); Other speakers include Exastrata real estate practitioners re-ex- on by new technology and rapid the future of sustainable develop- Solutions Sdn Bhd CEO Adzman amine the way businesses are technological changes. ments and buildings; opportunities Ariffi n, Hartamas Real Estate group conducted in the digital age and “The property landscape is in tenancy administration; and fu- managing director and MIEA pres- identify new strategies in order to rapidly changing and we have no ture hotspots in Malaysia. ident Eric Lim, Institute of Estate enhance their relevance, organis- choice but to embrace it. Technol- Among the main speakers will Agents Singapore immediate “Changes happen not only ing chairman Tan Kian Aun told ogy continues to make great strides be the Real Estate and Housing past-president Jeff Foo, and Ho EdgeProp.my. in terms of technology but into the future. Th e change is so Developers’ Association Malaysia Chin Soon Research Sdn Bhd chair- “Th e conference will feature ex- also in terms of our social rapid that it will [soon] overtake president Datuk Seri FD Iskandar man Ho Chin Soon. perts and prominent fi gures from lifestyle, our environment, us without us noticing. Embracing Mohamed Mansor who will be diff erent sectors of the industry to legality issues, economic these ever-changing and evolving talking about “Rethinking and For more details on the conven- share insights and views on issues factors and investor technology must be part of life. restrategising the housing tion, go to http://miea.com.my/ related to the future of real estate. appetite.” — Tan “Changes happen not only in and property sector — the way marec-2018. FRIDAY FEBRUARY 23, 2018 • THEEDGE FINANCIAL DAILY EP 5 FEATURE How retains its appeal

PICTURES BY LOW YEN YEING | EdgeProp.my BY NATALIE KHOO FlowRider in the hile the news of the newly launched oversupply of malls 1 Utama E is a in the Klang Valley simulated wave has been talked generator for about to death and ː owboarding, the fierce competi- bodyboarding Wtion to attract visitors is no longer foreign, and surˎ ng. there are some malls that are thronged all day and all night long. Take 1 Utama Shop- ping Centre (1 Utama), for instance. It is so popular that sometimes it takes more than half an hour to get a parking space during weekends or public holidays. 1 Utama is one of the largest malls in the world. It opened in 1995 and expanded in 2003 to what is called the new wing of 1 Utama. In 2011, the old wing was renovated and refurbished. Currently, 1 Utama attracts an average footfall of 32.5 million annually. Th e current ongoing extension known as 1 Utama E is expected to increase footfalls by a further 2.63 million annually. More recently on Feb 1, a 35m pedestrian link that directly connects the Mass Rapid Transit Station to the mall was completed and opened to the public. Back when it fi rst opened its doors, the way the mall operated was way diff erent from today. 1 Utama Shopping Centre Sdn Bhd director Tan Sri Teo Chiang Kok shares with EdgeProp.my that the mall has certain- ly evolved, thanks to its clientele which has become very much more sophisticated and “Brands who have soaring expectations. come and go So, why are some malls so popular and and tastes what does it take to remain popular? Here change. are some tips from Teo. You need to make sure the correct 1. tenants Fresh tenants and attractions come in at add excitement the right AirRider is an indoor “We always have got to be ahead of the curve place and the skydiving wind tunnel for — so to speak. Brands come and go and right time.” simulated sky diving. tastes change. You need to make sure the — Teo correct tenants come in at the right place and the right time. “People nowadays come into the mall not just to shop, but as an outing. And we 3. want 1 Utama to be a place for outings with Embracing e-commerce family and friends. and technology “Some people come to the mall to do ac- 1 Utama has a mobile application that no- tive sports, to have a good meal or to shop. tifi es customers on the latest events and For those into sports, we have an array of promotions at the mall and, recognising the choices and activities such as rock climbing, paradigm shift towards online shopping, it batting cages and diving pool,” Teo off ers. has also introduced a shopping platform — Expanding on its “active sports” attrac- oneshop.com.my — where purchasers can tions, the mall recently launched FlowRider, pick or buy their products online and collect 4. a simulated wave generator featuring sheet them from the physical store at 1 Utama. Keeping green wave technology designed in the US for fl ow- 2. “We have received very favourable re- 1 Utama has also long adopted green meas- boarding, bodyboarding and surfi ng; it also Find a niche sponse for our online shopping platform that ures to keep operations as environmentally unveiled AirRider, an indoor skydiving wind “Th ere are so many malls in Malaysia now, we launched last year. We also constantly friendly as possible. tunnel for simulated sky diving. so each mall needs to fi nd its own niche. reach out to our customers via our social “One of them is a thermo storage sys- Th e two activity centres are part of the We have always positioned ourselves as a media platforms about our latest happen- tem, which makes ice water at night when fi rst phase of 1 Utama E, the newest exten- family mall where everyone in the family ings,” says Teo, adding that shoppers can electricity is abundant. We utilise the idling sion to the mall which adds an additional —father, mother and kids of all ages — has also sign up for the ONECARD loyalty card. capacity so we don’t have to run the air-con 600,000 sq ft of gross built-up area to the something to do at the mall. It is always our chiller during the day. Because our mall is mall’s existing 6 million sq ft. hope for the family that they will come to the full of people, we want to make sure the mall like how they congregate in the town environment that they are in is healthy and centre during the 1930s and 1940s. Th ey clean. We regularly pump out all the air in can come to 1 Utama together and go on to our mall twice a week at 3am where the air do their own activities and then come back is the coolest and replace it with fresh air. together for a meal,” says Teo, adding that We are also one of the earliest adopters of the company is looking at keeping a family rainwater harvesting to cool the towers, for in the mall for at least four hours at a time. gardening and for the toilet. We save about “It is true that when the wife shops, the 35% of chlorinated water just by doing that,” husband will look for other things to do. shared Teo. We provide benches for people to wait, and Moving forward, 1 Utama looks to grow in fortunately we have mobile technology to strength and be a one-stop mall for visitors to keep us occupied. In fact, we have been shop, play and dine. “We want to go beyond providing free WiFi services for more than the conventional and transform 1 Utama to 20 years,” he added. be more than just a mall,” Teo concludes. EP 6 FRIDAY FEBRUARY 23, 2018 • THEEDGE FINANCIAL DAILY COVER STORY BUYING PROPERTIES WITH A BIT OF A COIN? BY LUM KA KAY ryptocurrency has taken the world by storm and leading the pack is Bitcoin. But what are they exactly? Bitcoin surfaced in late 2008 as one of the fi rst digital currencies, enabling users to exchange trans- Cactions between each other on a decentralised, peer-to-peer network. In other words, such cur- rencies are not controlled by any central authority, making it immune to any government interference or manipulation. Cryptocurrencies exist virtually. Bitcoin is said to have been created by a soft- ware developer with the alias of Satoshi Nakamoto, via blockchain technology. Blockchain serves as a public ledger for all transactions conducted on the cryptocurrency network — regardless of where you are, transactions are recorded and confi rmed anonymously. Today, Bitcoin is not the only crypto- currency in the world. Th ere is Ethereum, Litecoin, Monero, Zcash and more than a thousand others. In Malaysia, Bank Negara Malaysia (BNM) offi - cially stated in 2014 that Bitcoin is not recognised as legal tender in the country. Fiat currency is the currency that is declared as a legal tender by the government. Examples of fi at AFFIN HWANG CAPITAL RESEARCH currency are coins and banknotes. you will be adding currency risk into the invest- currency are still liable for Real Property Gains Tax. “Th e central bank does not regulate the opera- ment as you are exposed to the price volatility of “So one possible solution may be for regulators tions of Bitcoin. Th e public is therefore advised to the cryptocurrency and security of the exchange. to allow small-scale transactions via Bitcoin so that be cautious of the risks associated with the usage Th ere have been cases of exchanges closing down. it’s controlled. If the transactions are big, then the of such digital currency,” said BNM at that time. It, “Th ere is the forex risk as well due to currency normal mode of transacting in ringgit applies,” the however, did not and could not — even if it wanted mismatch because cryptocurrencies transact in US analyst suggests. to — stop the trading of Bitcoin. dollar but you are buying a Malaysian property in Instead, it is coming up with a concept paper ringgit,” he adds. Are Malaysians ready? soon to inform the public about cryptocurrencies Kenanga Investment Bank Bhd head of equity so they could decide for themselves whether to research Sarah Lim says: “Bitcoin is essentially Noting that cryptocurrency is a blockchain applica- invest in it or not. money that makes things bite-sized for people to tion, Ho Wah Genting Group (USA) Ltd is currently Noting that BNM has not drawn up clear guide- invest in. With Bitcoin, you can have various per- exploring the viability of allowing Bitcoin as a pay- lines on cryptocurrencies and has not banned mutations to buy a house. However, there is defi - ment means for the sale of its property projects. them, a businessman in has secured a land Loong: There is the nitely an impact on purchasers due to Bitcoin’s “We are banking mainly on the sharing econo- deal using Bitcoin on Jan 9, 2018 — half a Bitcoin extreme volatility.” my and blockchain technology. As we can see, the to be exact, equivalent to RM38,832.50 at the time forex risk as well “Everything is liquid, making the entire property demand for cryptocurrencies is undeniable and of transaction. due to currency market like a stock exchange, so we have to take defi nitely more than we expected,” its CEO Gavin BNM has, however, initiated a policy compelling mismatch because that into consideration,” she tells EdgeProp.my. Lim tells EdgeProp.my. digital-currency exchange operators to report their cryptocurrencies But the bigger question is, will regulators al- “We are only exploring whether to accept cryp- activities. Th ey will be categorised as reporting in- transact in US low the usage of Bitcoin or digital currencies as tocurrency as a form of payment for our projects. stitutions under the Anti-Money Laundering, An- dollar but you are a form of payment one day as the currency gains Th is is possible as we are working with payment ti-Terrorism Financing and Proceeds of Unlawful momentum? processing partners — meaning that buyers pay in Activities Act 2001. buying a Malaysian Another analyst, who wishes not to be named, cryptocurrency and it will be processed by them Besides the land deal in Sabah, a Proton deal- property in ringgit. likens the use of digital currencies for property while we receive payment in fi at currency. er in Seri Kembangan, Selangor has also tried ac- transactions to crowdfunding, where funds raised “Th is does not mean, however, that we are col- cepting cryptocurrency as payment. However, the are usually limited. lecting or holding cryptocurrency, as the volatility dealer’s eff ort to drive sales has been met with a “Like crowdfunding, there will be an implication remains rather high,” he off ers. dealership suspension, as Proton Holdings said on the asset value. But the biggest concern by the Is the Malaysian property market ready for such it will not accept Bitcoin as payment for its cars. government and regulators would be tax evasion mode of payment? Gavin admits that the market So, will it be a norm to see cryptocurrency being as well as implications on the assessment of the needs to be educated fi rst regarding transactions used to buy and sell property in Malaysia? Bitcoin banking system’s risks,” she says. using cryptocurrency. Price Speaking of taxes, on Jan 22, the Inland Revenue “For our group, we see it as another convenient What are the risks? Board of Malaysia was quick to declare that all prop- means or form of payment, just like the fi rst wave (US$) erty transactions in Malaysia secured via crypto- of internet payment. Th e main challenge here is Speaking to EdgeProp.my, investment analysts note the high risk involved in using cryptocurrency for Feb 28, 2017 April 1, 2017 property transactions due to its extreme volatility. US$1,083.24 Japan declares Bitcoin as “Personally, I’d be very cautious. Property invest- a legal payment method ment already has its inherent cyclical risk but still viewed as a relatively safe long-term investment,” says Affi n Hwang Capital Research senior associ- ate director for equity research Loong Chee Wei. “But when you use cryptocurrency to transact, FEB ‘17 MAR ‘17 APRIL ‘17 MAY ‘17 JUNE ‘17 JULY ‘17 AUG ‘17 SEPT ‘17 FRIDAY FEBRUARY 23, 2018 • THEEDGE FINANCIAL DAILY EP 7 COVER STORY

PATRICK GOH | THE EDGE MALAYSIA LOW YEN YEING | EdgeProp.my HARIS HASSAN | THE EDGE MALAYSIA

Sarah Lim: Bitcoin is Gavin Lim: We see it as Bernard: The technology essentially money that another convenient means needs to be carefully tested makes things bite-sized for or form of payment, just and carefully applied FAQ people to invest in. like the fi rst wave of in a sandbox testing internet payment. environment fi rst. on Bitcoin and cryptocurrencies the liquidity and value of the cryptocurrency that Smart contracts you are banking on. “Personally, I think the Malaysian [property] On the other hand, Bernard says other than look- market in general requires a lot of time and ed- ing at cryptocurrency per se, the property industry What’s Bitcoin? Who mints it? ucation for the market to understand and adopt could perhaps harness blockchain technology to No one. It is created digitally through [the usage of] cryptocurrency,” he says, adding make the industry more effi cient. For instance, it “mining”, like gold miners mine for that one of the biggest advantages of using cryp- could support land ownership registration, which gold. Bitcoin and other cryptocurrencies tocurrencies as a transaction medium is its decen- is a mission-critical data worth securing, off ers tralised structure. Bernard. are mined via powerful computers. He adds that property transaction could also Is it practical? be carried out using smart contracts that contain value and the value will only be unlocked when What does “mining” mean? Ironically, off ering a more technical perspective, certain pre-defi ned conditions are met. These computers will work through complex founder and CEO of LuxTag and president of Ac- This means that when a particular value is calculations tirelessly, contributing to the cess Blockchain Association Malaysia Rene Ber- reached, the smart contract will be triggered to nard does not see cryptocurrencies as a complete execute the algorithms. However, this function blockchain network. And the reward for payment means for properties, because at the end would require an oracle — an agent that verifi es solving these calculations are…Bitcoins. It of the day, one has to exchange the cryptocurren- whether the pre-defi ned conditions are met and is said that only 21 million Bitcoins can ever cies into fi at currency anyway. subsequently submit the info to the blockchain. be mined, making it a limited resource. “In most cases, the [property] developer or “Th is function could in some ways substitute seller would require local fi at currency to pay his escrow third parties involved in the transaction. I business expenses. If the buyers don’t happen to foresee a future with public notaries or government What is blockchain? hold cryptocurrency but desire to exchange fi at agencies becoming oracles as smart contracts on into cryptocurrency to do the purchase, the seller blockchains become escrow accounts. The bigger picture in this whole would have to exchange back into fi at. Th is would “However, the technology needs to be carefully cryptocurrency business is blockchain result in a mere chain of exchanges that would in- tested and carefully applied in a sandbox testing technology, because it doesn’t only work cur undesired exchange fees,” he explains. environment fi rst,” warns Bernard. for cryptocurrencies, but also every While Bitcoin and other cryptocurrencies are In the tech world, a sandbox is a simulation of transaction that involves value — even still young and not too practical for everyday use the actual environment that allows programmers real estate. It is effi cient in reducing fraud in the brick-and-mortar world, this situation could or web developers to test-run their applications change in the coming years with ongoing network before a system or application is deployed. because every single transaction would and technology upgrades. All that being said, it seems that the usage of be recorded and distributed on a public “Who knows, perhaps alternative currencies cryptocurrency for real estate transactions is still too ledger that anyone can access. And most could become legal tender one day, even in Ma- early to take off in a big way, but in this quick-chang- importantly, no one is able to edit these laysia. Some individuals who are saving money in ing digital world, those days could be here quicker records that went into blockchain, making crypto assets and accumulated signifi cant savings than we think, the way Bitcoin appeared. everything permanent and immutable. over time might want to spend part of it on real estate purchases. (US$) Dec 16, 2017 “Due to the current hassle in exchanging 20,000 larger amounts of crypto into fi at, it could be a US$19,343.04 Is cryptocurrency legal? all-time high welcome accepted mode of payment for them Due to the extreme volatility of these digital if they could use crypto directly for a purchase. currencies, several countries have banned What more when Malaysia has yet to have a the usage of Bitcoin for transactions, such as reliable operating crypto-ringgit exchange,” Indonesia, China and Vietnam. On the other says Bernard. Cryptocurrency exchanges are 15,000 hand, there are more digital currency-friendly online platforms where you can exchange Feb 20, 2018 countries including Japan which recognises one cryptocurrency for another or for fi at US$11,527.94 currency. Bitcoin and other digital currencies as legally- accepted means of payment, where a Japanese internet company GMO Internet will start paying part of its employees’ salaries in Bitcoin! 10,000 SOURCE: COINDESK.COM/PRICE How much is one Bitcoin worth? As of Feb 1, 2018, it was US$10,100 or Dec 1, 2017 RM39,400. The price of a single Bitcoin has Price breaks soared from US$1,000 (about RM3,901) US$10,000 for the fi rst time Feb 5, 2018 5,000 to almost US$20,000 in less than 12 Price tumbles months’ time during end-2017. However, to US$6,914.26 the price has taken a beating early this Oct 12, 2017 year as central banks clamp down on Bitcoin reaches cryptocurrencies. As of press time, each US$5,000 mark Bitcoin is valued at US$11,527.94. 0 OCT ‘17 NOV ‘17 DEC ‘17 JAN ‘18 FEB ‘18 EP 8 FRIDAY FEBRUARY 23, 2018 • THEEDGE FINANCIAL DAILY SPOTLIGHT

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RM2,250,000 RM678,000 RM1,570,000 RM450,000 The Northshore Garden, Ion Delemen, Agile Mont Kiara, Desa Green Serviced LID1254390 LID1240803 LID1255430 LID1220435 Desa ParkCity, KL Genting Highlands, Pahang Mont’Kiara, KL Apartments, Taman Desa, KL Type: Condominium Type: Serviced residence Type: Condominium Type: Serviced residence Tenure: Freehold Built-up: 2,454 sq ft Tenure: Freehold Built-up: 550 sq ft Tenure: Leasehold Built-up: 2,065 sq ft Tenure: Freehold Built-up: 604 sq ft Bedrooms: 5 Bathrooms: 5 Bedrooms: 2 Bathroom: 1 Bedrooms: 4 Bathrooms: 3 Bedrooms: 2 Bathroom: 1

Renovated and partially furnished. Comes Fully furnished. Free 10-day stay with 7% Partially furnished unit with two car park Brand new project next to proposed with three car park bays. High ː oor unit with returns annually. Five-minute drive to Genting bays. Project features a 6.5-acre ‘Secret Bandar Malaysia transportation hub. Located swimming pool and lake views. Casino & Themepark. Available free shuttle to Garden’. Walking distance to Publika & Solaris in between PJ and Cheras. Three minutes Genting Casino, theme park and Gohtong Jaya. Mont’Kiara. to Mid Valley and seven minutes to KLCC.

Eugene Yap (REN 12217) Eugene Yap (REN 12217) Eugene Yap (REN 12217) Javen Low (REN 20679) Focus Estate Agency Sdn Bhd Focus Estate Agency Sdn Bhd Focus Estate Agency Sdn Bhd SPC Property Sdn Bhd E (1) 1751 E (1) 1751 E (1) 1751 VE (1) 1568 +6012 625 9888 +6012 625 9888 +6012 625 9888 +6017 311 2788

RM1,800,000 RM580,000 RM2,500,000 RM680,000 Section 4, Petaling Jaya, Sutera Maya, Jalan Klang Sri Langit, Seputeh, KL Taman Bukit Angsana, LID915062 LID1190064 LID1276185 LID1276241 Selangor Lama, KL Type: Condominium Cheras, Selangor Type: Bungalow Tenure: Leasehold Type: Condominium Tenure: Freehold Built-up: 2,900 sq ft Type: Terraced house Built-up: 5,000 sq ft Land: 6,752 sq ft Tenure: Freehold Built-up: 1,341 sq ft Bedrooms: 4 Bathrooms: 4 Tenure: Leasehold Built-up: 1,650 sq ft Bedrooms: 5 Bathrooms: 4 Bedrooms: 4 Bathrooms: 2 Bedrooms: 5 Bathrooms: 3 Surrounded by amenities and a 10-minute Leasehold renewal expiry in 2107. Nearby Unit comes with two covered car park bays. walk to and Mid Valley A leasehold enclave comprising 2-storey link Assunta Hospital, two schools, church, Condominium offers a landscaped roof Komuter station. Accessible via NPE, Sprint, houses, ː ats and shops. Facilities include mosque and Hindu temple. Driving distance garden, exercise zone, recreational and SMART, East-West, KL-Seremban and Sungai jogging tracks, playground, business centre, to shops and pasar malam. childen’s play area, and swimming pools. Besi highways. cafeteria, covered parking and mini market.

Javen Low (REN 20679) Edmund Liao (REN 05205) Levis Chan (REN 15150) Levis Chan (REN 15150) SPC Property Sdn Bhd Kim Realty Huttons Oneworld Sdn Bhd Huttons Oneworld Sdn Bhd VE (1) 1568 E (3) 0211 E (1) 1286 E (1) 1286 +6017 311 2788 +6012 619 3102 +6014 623 9125 +6014 623 9125

For rent

RM2,000/mth RM1,600/mth RM4,500/mth RM3,500/mth Menara Puteri, Brickˎ elds, Pandan Puteri, Villa Putera, KL City, KL ViPod Residences, KLCC, KL LID1283171 LID1283015 LID1276191 LID1270957 Kuala Lumpur Pandan Indah, Selangor Type: Condominium Type: Condominium Type: Condominium Type: Condominium Tenure: Freehold Built-up: 2,900 sq ft Tenure: Freehold Built-up: 635 sq ft Tenure: Freehold Built-up: 1,087 sq ft Tenure: Leasehold Built-up: 1,010 sq ft Bedrooms: 4 Bathrooms: 4 Bedroom: 1 Bathroom: 1 Bedrooms: 3 Bathrooms: 2 Bedrooms: 3 Bathrooms: 2 Fully-furnished condominium. Conveniently Fully furnished luxury condominium. One car park bay included. Fully-furnished Unit in a nine-storey condominium. Comes next to and near PWTC. Strategically located at centre of city, within unit. Facilities: swimming pool, gym, minimart with one car park bay. Facilities: swimming and Opposite PWTC LRT station, 10-minute walk to walking distance to Suria KLCC, Pavilion, and launderette. Five-minute walk to wading pools, jogging track and playground. Titiwangsa monorail and eight-minute walk to KLCC Park, Menara KL, Avenue K, banks, LRT station. Accessible via Jln Pandan Indah, SBE and MRR2. Putra Komuter station. hotels, etc.

Henry Lim (REN 06092) Henry Lim (REN 06092) Levis Chan (REN 15150) KT (REN 24799) Rina Properties Asia Sdn Bhd Rina Properties Asia Sdn Bhd Huttons Oneworld Sdn Bhd Oriental Realty E (1) 1607 E (1) 1607 E (1) 1286 E (3) 0050/7 +6017 698 8618 +6017 698 8618 +6014 623 9125 +6012 969 8261