Oon Yeoh - The Malaysian paper chase
Posted by ProMahathir
(TodayOnline) AN interesting thing is happening in the newspapers scene in Malaysia. While two leading Malay-language dailies are seeking consolidation, there is an attempt to break up a monopolistic situation in the Chinese-language media.
It has always been known that leading Malay-language newspapers are controlled by the United Malays National Organisation (Umno), the leading component of the ruling Barisan Nasional coalition government.
The party formally controls the Utusan Melayu group with an around 50 per cent equity stake in the company. Umno took over Utusan after a battle with the newspaper's editors and journalists in the early 1960s.
Although the New Straits Times group (NSTP) is not formally owned by Umno it has always been understood that it was indirectly under the party's control (through nominee business groups such as Media Prima, with a 43 per cent stake in NSTP).
Umno's de facto control was something that former Premier Dr Mahathir Mohamad alluded to a few months ago, when he lamented the fact that the group editor of the New Straits Times was a non-Malay.
According to news reports, the two public-listed newspaper companies will be de-listed and then grouped under a yet-to-be named entity. If this merger goes through, it will make Umno's control over the NSTP formal and give the party ownership of the country's largest media conglomerate (Media Prima also owns all the local private TV stations).
This consolidation exercise will allow the Umno-controlled papers to better challenge the other media powerhouse, Star Publications — controlled by the Malaysian Chinese Association, Umno's ally in the Barisan Nasional. Star Publications owns the leading English-language newspaper The Star, various magazines and a couple of radio stations.
From an editorial standpoint, there will probably be no discernible difference. Firstly, the editorial operations of the two companies will remain distinct even after the merger. This is a point that Prime Minister Abdullah Ahmad Badawi has stressed.
Secondly, although media watchdog agencies such as the Kuala Lumpur-based Centre for Independent Journalism and the Bangkok-based South East Asian Press Alliance have all criticised the proposed merger as a bad move for press freedom, the reality is that the government has always had editorial control of both the Utusan and NSTP groups. For example, group editors have always been regarded as political appointments, requiring the blessing of the prime minister himself.
In an interesting unrelated development, while the Umno-controlled media are looking at consolidation, there are moves to break up a monopolistic situation in the Chinese dailies. The four leading Chinese-language newspapers in the country are currently controlled by Sarawakian timber tycoon Tiong Hiew King through his company, Ezywood Option.
Mr Tiong is a former senator and former treasurer of the Sarawak United People's Party, a mainly Chinese component of Barisan Nasional.
Unlike the situation with the Malay newspapers, the concentration of ownership of Chinese dailies in the hands of a pro-government group has been fiercely opposed by the Chinese community.
This has prompted another Sarawakian business tycoon, Lau Swee Nguong, to make a monopoly-breaking offer to buy Mr Tiong's shares of Nanyang Press Holdings, which publishes Nanyang Siang Pau and China Press. The other group Mr Tiong controls is Sin Chew Media Group, which publishes Sin Chew Daily and Guanming Daily.
Said Mr Lau last week: "I shall accept and purchase all shares owned by Tiong, split the shares and re-sell these to any corporation, society or individual from the Chinese community, (provided that) no such corporation, society or individual shall own more than 5 per cent of the entire paid-up capital of Nanyang Press."
He added: "The Chinese community has reacted with great dismay to the unveiling of the Tiong family's controlling stake in Nanyang Press. The general consensus is that a monopoly of the Chinese media is inevitable ... effectively stifling opinions."
Mr Lau has also extended his offer to other shareholders including MCA, which controls 20 per cent of Nanyang Press shares, and has promised to raise RM5 million to be donated to the Chinese community to help them purchase Nanyang shares.
Whether Mr Tiong or MCA takes up Mr Lau's offer is yet to be seen, but there is considerable pressure from the Chinese community for this to happen. The Chinese media has traditionally been more independent than its Malay counterpart when it comes to political coverage and commentary, although industry observers say that this situation has been eroded considerably over the years as government political parties exert increasing editorial control over the dailies they own.
Monday, January 1, 2007
Saturday, December 16, 2006
IRAS scraps concession to defer stamp duty
In what appears to be a subtle warning to the real estate industry to keep the property market in check, the government has withdrawn the concession to defer stamp duty - a move that coincided with last night’s annual dinner of the Real Estate Developers Association of Singapore (Redas).
A statement released by the Inland Revenue Authority of Singapore (IRAS) yesterday said: ‘The government has decided to withdraw the concession with immediate effect (starting today) as the economic conditions and the property market have improved.‘
The statement was timed to be made public only at 12.05 am today, but news of the taxman’s action surfaced early at last night’s Redas dinner - taking most by surprise.
However, developers BT spoke to said they are not too worried that the change will dampen demand for high-end property. Redas president Kwee Liong Keng said the withdrawal of the concession might not have an effect even on buyers looking to ‘flip’ properties quickly, as previously, they had to pay the stamp duty when selling their properties anyway.
Developers also maintained that speculation is not rampant. ‘If you look at top-end products, I don’t think
Singapore has seen the kind of interest from overseas before. So you can’t use the yardstick from the past to measure,’ said Redas honorary treasurer Eddie Yong.
Minister of State for National Development Grace Fu, who was the guest of honour at the Redas dinner, was more prepared with a comment - and she similarly maintained the government’s official stance that the property market is not seeing a ‘bubble’.
‘As we have done in the past, we will monitor the trends of property prices and rentals quite closely,’ Ms Fu said. ‘So far, the growth is supported by economic growth - it is quite a healthy growth.’ She was unable to comment on the withdrawal of the concession or the reasons behind it.
The concession to defer stamp duty payment was introduced in 1998 to cushion the impact of an economic slowdown. With its withdrawal, buyers of new properties will have to pay stamp duty within 14 days of making a purchase. Previously, they could defer payment until a project received its Temporary Occupation Permit or TOP.
Interestingly, the withdrawal of the concession comes at the time when the most sought-after residential property of the moment, Marina Bay Residences, is being sold, and with at least three more city centre properties about to be launched.
Knight Frank’s director of research and consultancy Nicholas Mak said the withdrawal of stamp duty concession does not necessarily bode ill for the property market. ‘One view is that IRAS does simply feel that with the property market looking up, there is no longer a need for the concession.’
Mr Mak did, however, say that if one ‘read between the lines’, it could be seen as the government, ‘taking a small step towards discouraging property speculation’. However, it is just ‘baby steps’.
Savills Singapore director of marketing and business development Ku Swee Yong agreed, and said that if the government really wanted to curb property prices, it could increase Government Land Sales (GLS) or capital gains tax.
Developers are unlikely to be in favour of increased GLS. At the Redas dinner, Mr Kwee urged the authorities to continue using the Reserve List in its land sales programme to make sure the demand-supply balance is maintained.
He said the Reserve List is one of the key mechanisms that has helped stabilise the Singapore real estate market. Under the Reserve List system, a site is put on the market only after a developer commits what the authorities deem is an acceptable bid for it.
‘With developments at Sentosa Cove and Marina Bay, redevelopments at Orchard Road and Bras Basah Road and the launch of the two large integrated resorts . . . the real estate market is undergoing a significant transformation that will see major adjustments in the supply and demand equation,’ said Mr Kwee.
‘We need to ensure that the supply of real estate over the next few years will not run ahead of demand.’
Separately, the Building and Construction Authority (BCA) yesterday said it will launch three initiatives worth a total of $70 million to bring about more energy-saving buildings.
For private developers, BCA will dangle a carrot by offering a $20 million incentive scheme for projects that meet certain criteria. And a $50 million fund has been set up to intensify R&D efforts in green building technologies and energy efficiency.
Moving with the market
1996: Govt announced measures to curb property speculation, including: Extending stamp duty to buyers of all sales and sub-sales of uncompleted properties. New stamp duty on those who sell properties within 3 years. Tax on gains from properties sold within 3 years of purchase.
1997: Following Asian financial crisis, stamp duty for sellers was suspended.
1998: Stamp duty deferred for buyer of uncompleted properties until TOP or subsequent sale to help improve cash flow of property purchasers.
Dec 15 2006: IRAS withdraws this concession. All property buyers to pay stamp duty (at up to 3% for properties worth over $360,000) within 14 days of the date of acceptance of an Option. Sales before today’s date are not affected by new rule. As transitional measure, buyers who accept an Option or sign S&P agreement between today and the end of the year will have until March 14 to pay the stamp duty.
Source: The Business Times, 15 December 2006
A statement released by the Inland Revenue Authority of Singapore (IRAS) yesterday said: ‘The government has decided to withdraw the concession with immediate effect (starting today) as the economic conditions and the property market have improved.‘
The statement was timed to be made public only at 12.05 am today, but news of the taxman’s action surfaced early at last night’s Redas dinner - taking most by surprise.
However, developers BT spoke to said they are not too worried that the change will dampen demand for high-end property. Redas president Kwee Liong Keng said the withdrawal of the concession might not have an effect even on buyers looking to ‘flip’ properties quickly, as previously, they had to pay the stamp duty when selling their properties anyway.
Developers also maintained that speculation is not rampant. ‘If you look at top-end products, I don’t think
Singapore has seen the kind of interest from overseas before. So you can’t use the yardstick from the past to measure,’ said Redas honorary treasurer Eddie Yong.
Minister of State for National Development Grace Fu, who was the guest of honour at the Redas dinner, was more prepared with a comment - and she similarly maintained the government’s official stance that the property market is not seeing a ‘bubble’.
‘As we have done in the past, we will monitor the trends of property prices and rentals quite closely,’ Ms Fu said. ‘So far, the growth is supported by economic growth - it is quite a healthy growth.’ She was unable to comment on the withdrawal of the concession or the reasons behind it.
The concession to defer stamp duty payment was introduced in 1998 to cushion the impact of an economic slowdown. With its withdrawal, buyers of new properties will have to pay stamp duty within 14 days of making a purchase. Previously, they could defer payment until a project received its Temporary Occupation Permit or TOP.
Interestingly, the withdrawal of the concession comes at the time when the most sought-after residential property of the moment, Marina Bay Residences, is being sold, and with at least three more city centre properties about to be launched.
Knight Frank’s director of research and consultancy Nicholas Mak said the withdrawal of stamp duty concession does not necessarily bode ill for the property market. ‘One view is that IRAS does simply feel that with the property market looking up, there is no longer a need for the concession.’
Mr Mak did, however, say that if one ‘read between the lines’, it could be seen as the government, ‘taking a small step towards discouraging property speculation’. However, it is just ‘baby steps’.
Savills Singapore director of marketing and business development Ku Swee Yong agreed, and said that if the government really wanted to curb property prices, it could increase Government Land Sales (GLS) or capital gains tax.
Developers are unlikely to be in favour of increased GLS. At the Redas dinner, Mr Kwee urged the authorities to continue using the Reserve List in its land sales programme to make sure the demand-supply balance is maintained.
He said the Reserve List is one of the key mechanisms that has helped stabilise the Singapore real estate market. Under the Reserve List system, a site is put on the market only after a developer commits what the authorities deem is an acceptable bid for it.
‘With developments at Sentosa Cove and Marina Bay, redevelopments at Orchard Road and Bras Basah Road and the launch of the two large integrated resorts . . . the real estate market is undergoing a significant transformation that will see major adjustments in the supply and demand equation,’ said Mr Kwee.
‘We need to ensure that the supply of real estate over the next few years will not run ahead of demand.’
Separately, the Building and Construction Authority (BCA) yesterday said it will launch three initiatives worth a total of $70 million to bring about more energy-saving buildings.
For private developers, BCA will dangle a carrot by offering a $20 million incentive scheme for projects that meet certain criteria. And a $50 million fund has been set up to intensify R&D efforts in green building technologies and energy efficiency.
Moving with the market
1996: Govt announced measures to curb property speculation, including: Extending stamp duty to buyers of all sales and sub-sales of uncompleted properties. New stamp duty on those who sell properties within 3 years. Tax on gains from properties sold within 3 years of purchase.
1997: Following Asian financial crisis, stamp duty for sellers was suspended.
1998: Stamp duty deferred for buyer of uncompleted properties until TOP or subsequent sale to help improve cash flow of property purchasers.
Dec 15 2006: IRAS withdraws this concession. All property buyers to pay stamp duty (at up to 3% for properties worth over $360,000) within 14 days of the date of acceptance of an Option. Sales before today’s date are not affected by new rule. As transitional measure, buyers who accept an Option or sign S&P agreement between today and the end of the year will have until March 14 to pay the stamp duty.
Source: The Business Times, 15 December 2006
Friday, December 1, 2006
IRAS scraps concession to defer stamp duty
IN WHAT appears to be a subtle warning to the real estate industry to keep the property market in check, the government has withdrawn the concession to defer stamp duty - a move that coincided with last night’s annual dinner of the Real Estate Developers Association of Singapore (Redas).
A statement released by the Inland Revenue Authority of Singapore (IRAS) yesterday said: ‘The government has decided to withdraw the concession with immediate effect (starting today) as the economic conditions and the property market have improved.’
The statement was timed to be made public only at 12.05 am today, but news of the taxman’s action surfaced early at last night’s Redas dinner - taking most by surprise.
However, developers BT spoke to said they are not too worried that the change will dampen demand for high-end property. Redas president Kwee Liong Keng said the withdrawal of the concession might not have an effect even on buyers looking to ‘flip’ properties quickly, as previously, they had to pay the stamp duty when selling their properties anyway.
Developers also maintained that speculation is not rampant. ‘If you look at top-end products, I don’t think Singapore has seen the kind of interest from overseas before. So you can’t use the yardstick from the past to measure,’ said Redas honorary treasurer Eddie Yong.
Minister of State for National Development Grace Fu, who was the guest of honour at the Redas dinner, was more prepared with a comment - and she similarly maintained the government’s official stance that the property market is not seeing a ‘bubble’.
‘As we have done in the past, we will monitor the trends of property prices and rentals quite closely,’ Ms Fu said. ‘So far, the growth is supported by economic growth - it is quite a healthy growth.’ She was unable to comment on the withdrawal of the concession or the reasons behind it.
The concession to defer stamp duty payment was introduced in 1998 to cushion the impact of an economic slowdown. With its withdrawal, buyers of new properties will have to pay stamp duty within 14 days of making a purchase. Previously, they could defer payment until a project received its Temporary Occupation Permit or TOP.
Interestingly, the withdrawal of the concession comes at the time when the most sought-after residential property of the moment, Marina Bay Residences, is being sold, and with at least three more city centre properties about to be launched.
Knight Frank’s director of research and consultancy Nicholas Mak said the withdrawal of stamp duty concession does not necessarily bode ill for the property market. ‘One view is that IRAS does simply feel that with the property market looking up, there is no longer a need for the concession.’
Mr Mak did, however, say that if one ‘read between the lines’, it could be seen as the government, ‘taking a small step towards discouraging property speculation’. However, it is just ‘baby steps’.
Savills Singapore director of marketing and business development Ku Swee Yong agreed, and said that if the government really wanted to curb property prices, it could increase Government Land Sales (GLS) or capital gains tax.
Developers are unlikely to be in favour of increased GLS. At the Redas dinner, Mr Kwee urged the authorities to continue using the Reserve List in its land sales programme to make sure the demand-supply balance is maintained.
He said the Reserve List is one of the key mechanisms that has helped stabilise the Singapore real estate market. Under the Reserve List system, a site is put on the market only after a developer commits what the authorities deem is an acceptable bid for it.
‘With developments at Sentosa Cove and Marina Bay, redevelopments at Orchard Road and Bras Basah Road and the launch of the two large integrated resorts . . . the real estate market is undergoing a significant transformation that will see major adjustments in the supply and demand equation,’ said Mr Kwee.
‘We need to ensure that the supply of real estate over the next few years will not run ahead of demand.’
Separately, the Building and Construction Authority (BCA) yesterday said it will launch three initiatives worth a total of $70 million to bring about more energy-saving buildings.
For private developers, BCA will dangle a carrot by offering a $20 million incentive scheme for projects that meet certain criteria. And a $50 million fund has been set up to intensify R&D efforts in green building technologies and energy efficiency.
Moving with the market
1996: Govt announced measures to curb property speculation, including:
Extending stamp duty to buyers of all sales and sub-sales of uncompleted properties.
New stamp duty on those who sell properties within 3 years.
Tax on gains from properties sold within 3 years of purchase.
1997: Following Asian financial crisis, stamp duty for sellers was suspended.
1998: Stamp duty deferred for buyer of uncompleted properties until TOP or subsequent sale to help improve cash flow of property purchasers.
Dec 15 2006: IRAS withdraws this concession. All property buyers to pay stamp duty (at up to 3% for properties worth over $360,000) within 14 days of the date of acceptance of an Option. Sales before today’s date are not affected by new rule. As transitional measure, buyers who accept an Option or sign S&P agreement between today and the end of the year will have until March 14 to pay the stamp duty
A statement released by the Inland Revenue Authority of Singapore (IRAS) yesterday said: ‘The government has decided to withdraw the concession with immediate effect (starting today) as the economic conditions and the property market have improved.’
The statement was timed to be made public only at 12.05 am today, but news of the taxman’s action surfaced early at last night’s Redas dinner - taking most by surprise.
However, developers BT spoke to said they are not too worried that the change will dampen demand for high-end property. Redas president Kwee Liong Keng said the withdrawal of the concession might not have an effect even on buyers looking to ‘flip’ properties quickly, as previously, they had to pay the stamp duty when selling their properties anyway.
Developers also maintained that speculation is not rampant. ‘If you look at top-end products, I don’t think Singapore has seen the kind of interest from overseas before. So you can’t use the yardstick from the past to measure,’ said Redas honorary treasurer Eddie Yong.
Minister of State for National Development Grace Fu, who was the guest of honour at the Redas dinner, was more prepared with a comment - and she similarly maintained the government’s official stance that the property market is not seeing a ‘bubble’.
‘As we have done in the past, we will monitor the trends of property prices and rentals quite closely,’ Ms Fu said. ‘So far, the growth is supported by economic growth - it is quite a healthy growth.’ She was unable to comment on the withdrawal of the concession or the reasons behind it.
The concession to defer stamp duty payment was introduced in 1998 to cushion the impact of an economic slowdown. With its withdrawal, buyers of new properties will have to pay stamp duty within 14 days of making a purchase. Previously, they could defer payment until a project received its Temporary Occupation Permit or TOP.
Interestingly, the withdrawal of the concession comes at the time when the most sought-after residential property of the moment, Marina Bay Residences, is being sold, and with at least three more city centre properties about to be launched.
Knight Frank’s director of research and consultancy Nicholas Mak said the withdrawal of stamp duty concession does not necessarily bode ill for the property market. ‘One view is that IRAS does simply feel that with the property market looking up, there is no longer a need for the concession.’
Mr Mak did, however, say that if one ‘read between the lines’, it could be seen as the government, ‘taking a small step towards discouraging property speculation’. However, it is just ‘baby steps’.
Savills Singapore director of marketing and business development Ku Swee Yong agreed, and said that if the government really wanted to curb property prices, it could increase Government Land Sales (GLS) or capital gains tax.
Developers are unlikely to be in favour of increased GLS. At the Redas dinner, Mr Kwee urged the authorities to continue using the Reserve List in its land sales programme to make sure the demand-supply balance is maintained.
He said the Reserve List is one of the key mechanisms that has helped stabilise the Singapore real estate market. Under the Reserve List system, a site is put on the market only after a developer commits what the authorities deem is an acceptable bid for it.
‘With developments at Sentosa Cove and Marina Bay, redevelopments at Orchard Road and Bras Basah Road and the launch of the two large integrated resorts . . . the real estate market is undergoing a significant transformation that will see major adjustments in the supply and demand equation,’ said Mr Kwee.
‘We need to ensure that the supply of real estate over the next few years will not run ahead of demand.’
Separately, the Building and Construction Authority (BCA) yesterday said it will launch three initiatives worth a total of $70 million to bring about more energy-saving buildings.
For private developers, BCA will dangle a carrot by offering a $20 million incentive scheme for projects that meet certain criteria. And a $50 million fund has been set up to intensify R&D efforts in green building technologies and energy efficiency.
Moving with the market
1996: Govt announced measures to curb property speculation, including:
Extending stamp duty to buyers of all sales and sub-sales of uncompleted properties.
New stamp duty on those who sell properties within 3 years.
Tax on gains from properties sold within 3 years of purchase.
1997: Following Asian financial crisis, stamp duty for sellers was suspended.
1998: Stamp duty deferred for buyer of uncompleted properties until TOP or subsequent sale to help improve cash flow of property purchasers.
Dec 15 2006: IRAS withdraws this concession. All property buyers to pay stamp duty (at up to 3% for properties worth over $360,000) within 14 days of the date of acceptance of an Option. Sales before today’s date are not affected by new rule. As transitional measure, buyers who accept an Option or sign S&P agreement between today and the end of the year will have until March 14 to pay the stamp duty
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