Vital to address rakyat’s concerns

By Wong Chun Wai, The Star

The Government needs to give careful consideration to the concerns raised about the high-rise and highway plans in the 2011 Budget.

THERE are two post-Budget issues that need tackling. Our political leaders can choose to dismiss them, saying they are private commercial concerns, but it would be politically perilous if they do so because they need to be addressed.

The 100-storey Warisan Merdeka project remains a sore point with the rakyat.

The explanation by Permodalan Nasional Bhd (PNB) that it is a private initiative has not reduced the temperature, judging from comments in the social media.

The delay by PNB to respond did not help either, and when the press briefing was given, they failed to dispel the doubts.

The seemingly blind defence of the project by some politicians, invoking ethnic pride, was hardly a strategic way to engage the critics.

The protest by the Opposition, who said the building would affect traffic flow, is not compelling either.

Surely, they can come up with better arguments for our sake.

Let’s look at the issue rationally so we can educate ourselves.

The 200,000-signature Facebook protest against the project is not to be taken lightly.

It is unprecedented and, certainly, a government that wants to be regarded as responsive to the people would need to recognise this sentiment.

The assumption is that taxpayers’ money would be used.

And it did not help that the project was announced by the Prime Minister at his Budget speech.

It is obvious that PNB’s explanation that it has sufficient funds has not been well emphasised.

One financial magazine report has it that based on its 2005 annual report, PNB had RM1.1bil in cash and this amount would probably have snowballed since then.

What PNB needs to do is to explain to its unit holders and the public how the tower would bring investment returns to its stakeholders.

The concern, based on projections, is that there would be an abundance of office space in Kuala Lumpur.

The fears are not entirely unjustified because, according to the Finance Ministry’s National Property Information Centre (Napic), as at the third quarter this year, only 58.5 million sq ft, or 80.5%, of KL’s 72.7 million sq ft of office space are occupied.

We can expect more office space to be loaded in the coming years.

We can assume that PNB will occupy its 100-storey building once it is completed but we hope, for the sake of its unit holders, that it can fill up the rest of the space.

The PNB obviously needs to do better at the job of explaining to Malaysians and not merely pass the buck to the Government.

PNB should not think of running away or putting its head in the sand.

The issue should not be about a 100-storey building but whether there will be tenants to fill up the floors so that investment returns will be realised.

But it should be noted that construction of supertalls is going on in other cities around the world.

Just do a Google search on the number of skyscrapers currently being built, and Malaysians would find that they are all private initiatives with positive multiplier effects, which lead to more jobs being created as a result of huge investments in construction.

In South Korea, Seoul plans to put up the 133-storey Digital Media City while the 151-storey Incheon Tower will have the world’s tallest twin towers by 2014.

Shanghai’s skyline is still growing with the 121-floor Shanghai Tower currently under construction.

Mumbai in India is also undergoing a massive building boom with hundreds of high-rises and over 85 supertalls currently under construction, including the 125-storey India Tower and 117-floor World One.

Those just approved include four residential towers with 100 storeys and above, all also in Mumbai.

We cannot deny that the Petronas Twin Towers have become the icon for Malaysia; and for a country searching for an identity, foreigners now know Malaysia because of the towers.

Another issue that has caught media attention is the sale of PLUS Expressway Bhd, the country’s most precious and strategic asset.

The recent announcement that there would be no toll hike for the next five years was well received by most Malaysians.

But the catch is that taxpayers will have to fork out RM5bil in compensation.

Another RM2.5bil in outstanding compensation is also due to PLUS.

That is unfortunately the current concession agreement between the Government and PLUS.

There is supposed to be a toll rate increase of 10% every three years for the remainder of the concession period until May 2020.

The interests of taxpayers should not be left out.

Surely, Malaysians should also benefit from the sale of PLUS.

If any party can come up with a better proposal that can abolish toll rates until 2020 or is prepared to restructure the current compensation scheme, then the Government should consider the bid.

There are also political considerations that the Government must make before a decision is reached.