w w w . b - i . b i z PUBLISHER B & I Marketing EDITOR Eric Tan ADVERTISING Josephine Lim EDITORIAL CONSULTANTS Chandra Perumal Pete Wong
EDITOR’SNOTE Time flies by quickly when one is having fun. Before you know it, 2010 draws to a close. It has been a year of renewed confidence and positive outlook for the industry as a whole. We hope this optimism will carry on to the new year and beyond. In this issue, we spoke to several industry players like Khoo Boo Hian of Tempo Properties, who shares with us his green initiatives for his project, The Atmosphere; Puan
RESEARCH & ADMINISTRATION Jennifer Lau Mohamad Azhar Kasim CIRCULATION Tan Wee Aik Don Chin HONORARY ADVISORS Datuk Merlyn Kasimir Dato’ Dr Ken Yeang OFFICE B & I Marketing Suite 201, Block A Mentari Business Park Jalan PJS 8/5, Bandar Sunway 46150 Petaling Jaya, Malaysia Tel: +603 5631 9395 (Hunting line) Fax: +603 5637 4062 E-mail: email@example.com PRINTER Superior Press Sdn Bhd Lot 2063A Jalan Kusta Sungai Buluh Kawasan Industri Taman Jaya 47000 Sungai Buluh Selangor Darul Ehsan ENDORSED/SUPPORTED BY Building Materials Distributors Association of Malaysia (BMDAM) Construction Industry Development Board, Malaysia (CIDB)
Khalidah Mustafa of SIRIM QAS International, who updates us on what her organisation is doing; Saud Salim of Hamriyah Free Zone Authority, who speaks about opportunities in the Middle East; and Ar Von Kok Leong, who brings us on a tour of his Johor Bahru Sentral project. Besides bringing you industry-related news, we are also continuing to beef up our Home Improvement pages to bring you the latest accessories and fittings for your home, including an interesting new interior design for a penthouse in Montréal. On the national front, we are excited by and keeping tabs on the Economic Transformation Programme (ETP) announced in November by Malaysian prime minister Najib Tun Razak. Of particular note are the upcoming opportunities presented to investors, both local and foreign, which we hope will be awarded fairly and on a merit-based system. In the face of competition from China, India and, lately, Vietnam, Malaysia needs to be more pro-active to attract Foreign Direct Investments. Going into 2011, we hope to bring you more news on the ETP. Meanwhile, do have a good read and we hope this issue, our last for 2010, will help to satisfy your thirst for information about the latest industry developments. Feel free to drop us an e-mail if you have suggestions to offer. And here’s wishing you Happy Holidays and see you in 2011! ERIC TAN, EDITOR firstname.lastname@example.org
Malaysia Green Building Confederation (MGBC) Malaysia External Trade Development Corporation (MATRADE) Malaysian Institute of Interior Designers (IPDM) Malaysian Investment Development Authority (MIDA) 4
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contents N O V- D E C 2 0 1 0
CORPORATE VIEWPOINT 6 Khoo Boo Hian, CEO of Tempo Properties Sdn Bhd 12 Khalidah Mustafa, Managing Director of SIRIM QAS International Sdn Bhd 18 Saud Salim al Mazrouee, Deputy Director, Hamriyah Free Zone Authority PROJECT HIGHLIGHT 22 JB Sentral Building, Johor Bahru 26 The POD @ PJCC, Petaling Jaya 28 Sunsuria 7th Avenue, Shah Alam SPECIAL FEATURE 32 IBS Roadmap 2011 38 Building with Timber 42 Modular Coordination Verification Scheme 44 International Conference on Rehabilitation, Restoration & Transformation of Mining Land 46 MCIEA Awards 2010 48 Ceramic World Johor Bahru: 1Malaysia Batik Tiles in Art & Crafts Creation 50 Green Building Asia 2011 51 HC Precast System: Work visit by JKR VIPs PRODUCTS & SERVICE 56 AkzoNobel ushers in the Beauty of ColorFutures™ 2011 58 Success Electronics & Transformer Manufacturer: Provider of NIKKON lighting solutions 60 Aino kitchen 62 3D Board 64 Hock Heng: a name carved in stone 66 tiffinDATA - Malaysia’s first interactive database HOME IMPROVEMENT 68 Penthouse in downtown Montréal 72 JG Group’s Adapta desking system 74 Sally saddle chairs & Sato Sail chairs 76 Desso AirMaster® carpets 78 Artemide pendant lamps 80 Astec sliding door system REGULARS 82 B & I Report 94 Exhibitions & Conferences 96 Advertisers’ Index 5
TEMPO’S IDEAS AT WORK THE TEMPO-EKSONS-GREENA SYNERGY
THE TEMPO-EKSONS-GREENA SYNERGY “Although it cost us a good RM2 million, we took the view that green aspects of the development add to the commitment we make to our stakeholders, with savings in water, energy consumption and so on.” – KHOO BOO HIAN, CEO OF TEMPO PROPERTIES
The Atmosphere’s central park.
TEMPO PROPERTIES’ GREEN INITIATIVES THE ATMOSPHERE, A COMMERCIAL DEVELOPMENT IN SERI KEMBANGAN WAS WELL AHEAD IN ITS DEVELOPMENT WHEN THE CHALLENGE TO GO GREEN WAS INITIATED. IT SEEMED IMPOSSIBLE AT THAT STAGE, BUT WITH SHEER DETERMINATION, THE RESULT WAS A GREEN MARK CERTIFICATION. AT A RE-BRANDING exercise launched in 15 April 2008, Tempo Properties Sdn Bhd charted a definitive tack, tagged as “Ideas at Work”, towards its future as a reputable boutique real estate developer “doing things differently for better results”. More than a feel-good catchphrase, “Ideas at Work” not only defines Tempo Properties but also embodies its commitment to: (a) perpetually enhance its corporate image, through (b) delivery of true value in property development with original concepts, quality work and creative designs for its stakeholders comprising investors, business owners and patrons, by (c) marshalling an exuberant and forward-looking workforce that moves and keeps in tempo with the times. The envisioned goal is the Building of Homes, Environment and Lifestyle that build Communities. Encapsulating all of the above elements in one address is The Atmosphere, Tempo Properties’ on-going three-staged commercial development in the heart of the Golden Triangle of the South Klang Valley, in Seri Kembangan. Aside from raising the bar on contemporary ideas and design for vibrant urban living, The Atmosphere is also accredited with Green Mark Certification (provisional), the first in the region for
commercial development. In the company of Mr Tang Seng Fatt of Eksons Corporation Berhad and Ms Farizan d’Avezac de Moran of GreenA Consultants, B&I talked recently to fervent green advocate and CEO of Tempo Properties Sdn Bhd, Mr Khoo Boo Hian, who is as passionate about sustainability as he is about giving stakeholders the best deal in town. B&I: By way of introduction to our readership, could you give us a thumbnail sketch of Tempo Properties Sdn Bhd, from its early days back in 1995, to its evolvement as property developers and investors and to where it is today? KHOO: Maybe we should start with the Tempo Group whose shareholders were rice wholesalers in Seremban who in 1995 decided to venture into property development starting with a sizable piece of land in Paroi, Seremban near the Seremban International Golf Club. That first development launched and sold out in 1997 just before the economic downturn, setting a benchmark in terms of pricing and design. Robust sales allowed us to weather the storm until 2000 when we entered into a joint venture with PKPS to purchase and develop a piece 7
The Atmosphere’s main entrance.
of land here. A good three to four years later when we launched Taman Prima Tropika at prices starting from RM260,000, people thought we were crazy to sell at that price when the going rate of houses around that area was below RM200,000, until they saw the things we had to offer. We sold all four phases quickly leaving another 10 acres for the future. In 2006, we re-purchased a piece of land under a joint venture agreement with Eksons Corporation Berhad; with common shareholders, it was an appropriate and synergistic move as Eksons was looking to diversify whereas, as property developers, Tempo had the expertise and knowledge of the area. At the time, Tempo had also developed three-to-four storey shop offices (Medan Suria), right in the heart of Seremban town, with the second phase nearing completion and well sold. In the development of The Atmosphere, Tempo plays two roles, as joint venture partner/owners with Eksons and as project managers. B&I: Has Tempo’s association with a public-listed company hindered your operations and subsequent growth in any way?
What prompted this decision to go green in a big way? KHOO: Personally I have always been interested in controversial issues like the diminishing ozone layer, CO2 emissions and preservation of the environment so when it came to property development, even at the stage of conceptualising the project, we had it in mind to go green. However, our consultants viewed it as costing 15 to 20 per cent more, to incorporate things like rainwater harvesting and so on. It was, therefore, a question of costs and the last thing we wanted was to have minimal environmental impact and the costs passed on to our buyers in order that we can maintain our margins. So we decided to proceed as per normal and be as green as possible at minimal cost. Then we met Ms Farizan d’Avezac of GreenA Consultants, who was passionate in presenting her case which I felt was pointless as we were already quite advanced in our development and 90 per cent sold at the time. The deal was that if she could show how we can actually go green and be
KHOO: Not at all, as we view it very positively. The need to comply with the various requirements including the bureaucracy of internal audits, quarterly progress and cash flow reports to the Eksons Board has allowed Tempo to grow to a different level. I must say that although Eksons’ interests are represented, they do not play an active role and have left operational matters very much in Tempo’s hands. The directions and main decisions are on consensus basis and there are no “big brother ” issues, only the need to be accountable especially with common shareholders. B&I: The Atmosphere is, in essence, a green development that is both unique in concept and ambitious in scope. 8
L-R: Tang Seng Fatt, Eksons’ director; Khoo Boo Hian, Tempo Properties’ CEO; Farizan d’Avezac, GreenA Consultant’s partner; Chandra Perumal, B&I’s writer.
The Atmosphere’s open boulevard.
Green Mark-certified with only a two per cent cost increase, we would engage her. Farizan will attest to it that our other consultants were, with all due respect, very worried that it just could not be done. So, with Farizan taking lead, we manage to get through all the hurdles and here we are today with a provisional certificate from BCA. Although it cost us a good RM2 million, we took the view that green aspects of the development add to the commitment we make to our stakeholders, with savings in water, energy consumption, and so on. These benefits, in turn, will go to investors or landlords who would enjoy constant returns as their shops would never be empty. Also, prices of goods can be maintained at reasonable prices making it an affordable place for patrons to shop. When asked, we replied that going green makes The Atmosphere vibrant, allowing us to establish a name for ourselves in the market in the long term and for our future projects. B&I: So it appears that you were almost deterred from going green with the initial cost estimates of 15 to 20 per cent?
changes to satisfy the necessary requirements of BCA. Further, the project was practically sold out so I told Farizan to work wonders as I was not about to go to each buyer to amend the S&P and change the entire look of the building. To summarise, I would say the first hurdle was, believing Farizan, that it could be done with two per cent cost increase, and the second was convincing all our consultants. The next thing was convincing not only my staff but Eksons as well into spending another RM2 million, to think long term on the other 15 over acres we were planning to develop. Getting the consultants to move at the speed that we wanted was yet another challenge as they were still skeptical; we had to push for information, new quotations for water fittings, lighting, and others which had to be re-specified. The final challenge was convincing BCA and to meet their mandatory requirements for certification as ours was not a stand-alone building but a sprawling development that is sold as opposed to self-owned and occupied. Frankly, BCA was surprised that the development was already 90 per cent sold, so other than facade and air-conditioning system, we had to work around the certification process with co-branding exercises for sustainability of the building. B&I: The average Malaysian consumer has yet to fathom, let alone embrace, the green movement as firmly as his western counterpart. What moves would The Atmosphere be making in driving home and selling its sustainability facilities, particularly to business owners and patrons? KHOO: In a series of talks, our first target audience will be our investors, to emphasise not just on green but many other aspects of the development, for example the architect’s vision, our landscaping concept and Green Mark certification, which is not just a feel-good label but that there are benefits that accrue. Before calling in the tenants next for similar sessions, we intend to engage our suppliers and vendors, and the media, for a comprehensive and in-depth dialogue on our co-
KHOO: To a certain degree initially as we thought that it was all about harnessing solar energy, using photo-voltaic cells, wind power, and so on, which is contrary to what Farizan had to say that we felt went to the core of what being environmentally conscious was all about. B&I: In taking the green initiative for The Atmosphere in collaboration with GreenA Consultants, what were some of the challenges that had to be faced? KHOO: Communicating the benefits to the public was one of the challenges because most are still not familiar with the idea of a green building. The number one challenge, though, was that the layout of the project and design of the buildings were already confirmed, therefore a challenge to incorporate the
L-R: Eric So, Tempo Properties’ sales & marketing manager; Farizan d’Avezac; Tang Seng Fatt; Khoo Boo Hian & Eric Tan, B&I’s editor.
components like hotels and service apartments, so we are not rushing into it as there will be a lot of emphasis on details. B&I: Looking, as it were, into the proverbial crystal ball, any indication as to the future plans for Tempo Properties in the short- to medium-term?
The Atmosphere’s sheltered boulevard.
branding exercise, with real numbers on savings, data on the energy efficiency of air conditioning system, etc translated to dollars and cents. The other group would be potential business owners; the campaign, so to speak, to drive the message home that they are the main beneficiaries of our green initiatives, the direct recipients of lower energy, utility and other costs. Be it KFC, McDonalds, or Old Town Coffee, we want to inculcate a habit of caring for the environment through collaboration with business owners, years after handing over the keys. That is why The Atmosphere is strata-titled, so that we can maintain control of waste management system and maintenance of facilities for the disabled, for example. In walking the talk on sustainable buildings, we aim to set yet another benchmark that, hopefully, will have a domino effect in the industry. B&I: At the media launch on 21 September, Phase 3, to be launched in 2011, is envisioned to be the regional retail and commercial centre. Could you, at this time, oblige us with a preview of its scope, design components and features? KHOO: That is what’s on the drawing board. It will not be just another shopping centre. We want shoppers to have The Atmosphere in mind when they think of going shopping because we have more to offer. By location we want to attract patrons from as far as Seremban and Melaka. When we unveil the project next year, I am sure the media will be quite impressed but, just now, we are not at liberty to disclose details except to say that green aspects and sustainability will be put in place. Financing, as always, is a challenge and the other is timing. For now, we are researching, working out numbers, talking to retailers whether this is an area they want to look at, analysing our Phase 2 cash flow and how it may support Phase 3. For sure, it will be huge, 14.5 acres and a GDV of more than RM 500 million, with office blocks, SOHO and residential 10
KHOO: For The Atmosphere itself, with more components and higher GDV for Phase 3, we will have a lot of work to do and another set of in-depth thinking altogether in terms of detailing. For the sake of our stakeholders, we will be very particular even with little things like corridor width of service apartments, orientation of drain gratings, number of parking bays, kerb height, location of dustbins, park benches, toilets and signage, to name a few. All this will take a good five years. At the same time, Eksons and Tempo are looking for new land banks within or outside the state. For now, we want The Atmosphere to be on the lips and minds of the general public so that every time we launch something, it will be rated as a good buy, a vibrant place to go to. We see ourselves as a niche property developer, with “Ideas at Work” and moving in the right direction. ■
BIODATA: Khoo Boo Hian, CEO Tempo Properties Sdn Bhd With a B. Com. and LLB from Australian National University after his name, Khoo Boo Hian began practicing law in Kuala Lumpur following membership with the Malaysian Bar in 1996. The legal trail eventually led him back to his hometown Seremban, to a partnership in a locally-based law firm before his move and appointment as Legal Advisor to the Tempo Group of Companies. From the onset, Khoo had been involved in property-related transactions, specialising in corporate conveyance, and it was a cinch, therefore, for his natural progression into the property development industry. Taking up the mantle as Chief Operating Officer of Tempo Properties Sdn Bhd in February 2003, his fullfledged appointment as Chief Executive Officer followed four and half years later. For Tempo Properties, Khoo’s vision has always been to turn it into a property development company which delivers quality products of exceptional value through innovative ideas in design, space utilisation, common amenities and customer service. To this purpose, he embraces four key values that is a win-win scenario for all – human resource development, environmental issues and IT for production efficiency and business efficacy. For more information, visit theatmosphere.com.my or www.greenaconsultants.com