Presentation by : DATUK SERI MICHAEL K C YAM SMW, DSNS

MD/CEO, IMPETUS ALLIANCE ADVISORS SDN BHD

IMMEDIATE PAST PRESIDENT & PATRON, REHDA

CHAIRMAN, TRITERRA SDN BHD

Listen to your elder ’s advice. Not

because they are always right but

because they have more experiences

of being wrong…

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• World GDP 2016 @ 3.1% • Malaysia GDP 2016 @ 4.6%

The world’s GDP growth has been stagnant for the last 5 years

2016 in Summary – A very volatile and difficult year!

Global Growth from 1961 - 2015

8 Nov – President Trump is elected

23 June

5 Dec – Matteo Renzi , Italian PM resigns after being soundly defeated in a

referendum Increasingly violent terrorist attacks in USA and Europe

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2017 – Even more challenging with looming global uncertainties

• Global growth forecast at 3.4%

• The Trump Factor - Uncertainty • Challenges in the EU

• BREXIT • Germany Elections • France Elections • Dutch Elections

• Asia

• China is Rebalancing • AEC – Work in Progress • TPP – Unlikely

• Malaysia

• GE 14

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2017 – With challenges, there are also positives

China’s Belt and Road – Gateway to the World AEC - ASEAN Economic Community

RCEP - Regional Comprehensive Economic Partnership

FTAs

Malaysia - EU

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PROPERTY OUTLOOK

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JOHOR

SELANGOR

PENANG

PROPERTY OUTLOOK

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KUALA LUMPUR

MELAKA

KELANTAN

PROPERTY OUTLOOK

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016

Value (RM Bil) 61.60 77.14 88.34 81.00 107.44 137.83 142.84 147.87 162.97 149.90 64.6 Volume ('000) 283.90 309.46 340.24 337.86 376.59 430.40 427.52 381.12 384.06 362.11 163.52

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

VOLUME AND VALUE OF PROPERTY TRANSACTION VOLUME (‘000)

OVERALL SALES PERFORMANCE

Including Residential, Commercial, Industrial, Agricultural, Development Land etc

VALUE (RM Bil)

Source : NAPIC 10

Residential

Agricultural

Commercial

Industrial

Development Land

73,469.89

13,087.45

26,399.54

11,970.76

24,970.31

49%

9%

17%

8%

17%

PROPERTY TRANSACTIONS B A S E D O N S U B - S E C T O R ( 2 0 1 5 )

Source : NAPIC 11

RESIDENTIAL TRANSACTIONS P R I M A R Y A N D S E C O N D A R Y M A R K E T

53,777 42,739

193,474 193,228

0 50,000

100,000 150,000 200,000 250,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Primary Market Secondary Market

20,938.99 16,621.38

61,120.60 56,848.51

-

20,000

40,000

60,000

80,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Volume Of Transactions (Units)

Value Of Transactions (Rm Million)

Primary Market Secondary Market Source : NAPIC

Residential

Agricultural

Commercial

Industrial

Development Land

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2008 2009 2010 2011 2012 2013 2014 2015 Completion 134,334 101,316 99,866 64,538 72,247 81,639 96,879 80,850 Starts 108,012 86,549 84,486 115,448 138,407 145,779 155,667 188,757 New Planned Supply 115,874 78,336 81,238 117,291 143,025 152,285 186,174 139,189

-

50,000

100,000

150,000

200,000

UNITS

Completion, Starts & New Planned Supply (2008-2015)

Source : NAPIC

SUPPLY : RESIDENTIAL

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The Edge Financial Daily, 24 Feb 2017

“…RM8.27 billion worth of uncompleted homes on the primary market have gone unsold as of the third quarter of 2016…”

“Condos and apartments (1,238 units) make up the highest number of overhang units followed by flats (283 units), terraced homes

(218 units), cluster homes (129 units)…”

“Only properties in the price range of RM200,001 to RM250,000 saw an increase in sales by a huge margin …”

“…secondary market properties make up about 82% of the total property market…and is still holding strong…”

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STEADY POPULATION GROWTH

-

2 ,000.0

4 ,000.0

6 ,000.0

0 - 9 10 - 14 15 - 19 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 69

70 - 79 80 +

2010 2015 2020

Population Profile Typical House Requirement Location Age 20 – 24 Student Housing, Starter Homes Accessible to private college

Age 25 – 34 Starter Homes (Studio, SoHo, 1-2 Bedroom), Smaller Units

Near Central Business District area

Age 35 – 64 Affordable to Lifestyles and High-End property

Residential development with facilities & amenities

Age 65 and above Retirement Home, Aged care, purchase for children

Near hospitals and public transportation

More younger population in 20 – 44 years & is expected to form family, thus creating

strong demand for housing

Population Projection by Age

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CURRENT TREND

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DEMOGRAPHIC

05

04

03

02

01

Demand for green development

Demand shift

Changing taste

Urban population

Younger population

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SUPPLY : RESIDENTIAL WHAT’S IN DEMAND TODAY?

Quality

Lifestyle Choice

Mixed Housing

Enhanced Value

Environmental Friendly

Market Niche Integrated

Development

Building Efficiency

Public Transportation

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TRIBECA, BUKIT BINTANG Luxurious serviced apartment

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SENTRAL SUITES, KL SENTRAL Suites

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CHALLENGES

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CHALLENGES Affordability

End-financing

Increase cost of doing business

Land cost

Compliance and contribution cost

Construction cost

GST

Highly regulated industry

Cooling measures by Government

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THE NEXT BIG THING

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Accessibility Mixed-Use & Diversity Connectivity Quality Architecture &

Urban Design Smart Transportation -

TOD

Sustainability Safety & Security

features Aged Care

facilities Quality of Life Branding

THE NEXT BIG THING…

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THE NEW

ERA OF REAL ESTATE AGENT

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Property Transaction today is more complicated and complex … Buyers are more learned and demanding, real estate agents need to be equipped with:

Tech-savvy

Financial skills

Research expertise

Creative with new avenues of marketing

More specialized in the niche development

Understand the laws and regulations related to the industry

MOVING FROM THE TRADITIONAL WAY …

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TRANSFORMATION DRIVERS – 6Ds

1. DISCOVER

a) Your own SWOT

b) PEST Factors

c) Soul searching (Do you have what it takes?)

d) Job satisfaction

2. DETERMINE

a) Core /Non Core – Resi, Retail, Commercial, Industrial, Leisure, Hospitality

b) Upstream/Downstream – Project, New built, Rental, Resale, Facilities

Management, Conceirge service, M & A

c) Geographical Footprint – Local, district, state, cross border, international

tie-up, Franchise, Co-broke

d) X & Y Generation, Millenials, new sales & marketing techniques, IOT

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3. DESIGN

a) Refresh Vision, Mission, Core Values

b) Strategise – e-Commerce, internet approach

c) Allocate 6Ms – Money, Management, Manpower, Method, Material &

Machinery

d) Eureka moment, new ideas

4. eDucation

a) Ensure right talent & leadership

b) Continuous education & training

c) Customer focus & bespoke service

d) More R & D

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5. DELIVER

a) Steadfast & diligent execution of the strategies & Plan set

b) Enhance core competencies

c) Disrupt

d) Continuous adaptation

6. DEDICATION

a) Recognition of achievement

b) Properly devised incentive for business sustainability

c) Long term customer satisfaction

d) Structured CSR programme is a good marketing platform

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I’M 40 AND I FEEL GREAT!

WHO SAID REAL ESTATE PROFESSION WAS STRESSFUL?

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Remember this; an optimist is a person who sees a green light everywhere, while a pessimist sees only the red stoplight…….the truly wise person is colourblind. Oprah Winfrey “ I believe that one of life’s greatest risks is never daring to risk” Helen Keller “ No pessimist ever discovered the secret of the stars or sailed an uncharted land or opened a new doorway for the human spirit”.

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