Wednesday, 24 December 2008

WTF! @ Crash Boom Bang

These must really be desperate times for our government.

The latest bomb is a The Edge report that an EPF-led consortium is close to buying three parcels of prime land in the Klang Valley.

Producing verbatim snippets here:
“204 acres of land near Jalan Cochrane, Kuala Lumpur. It reported that the provident fund was also the favourite to buy two parcels of land at Rubber Research Institute in Sg Buloh and Jalan Ampang.

According to The Malaysian Insider, property consultants have valued the land in Ampang at between RM150 and RM250 per sq ft (psf), the land in Jalan Cochrane at RM100 to RM200 psf, and the site in Sg Buloh at RM8 to RM12 psf.”

My maths isn’t that good and I might get things wrong here but a guestimate for such an adventure of acquiring Jalan Cochrane alone would cost the EPF led Consortium a hefty RM888.6 million at the lower price or RM1.78 billion at the higher price.

That’s a whole lot of our money to be spent.

I remember the DPM’s statement on the above sometime back and in my mind names like YTL, YNH, Sime, SP Setia, Mah Sing (to name a few) came up as the possible contenders to snap up these prime zones.

These housing Juggernauts are after all well equipped to profit when the good times returns.

I have never been more wrong in my life.

EPF yet again. ValueCap’s injection is still ringing in our ears.

Just like the suspicions cast by many of grubby hands wanting a dip in IJN’s cash reserves, the EPF is - for the umpteenth times - THE honey bowl of which everyone - even those in the streets, that's you and me – want to desperately open up.

Never mind that its our "Simpanan Hari Tua".

Hence the reduction in our monthly contributions: where despite public assertions that many would want to maintain was still forced upon us with silly administrative procedures.

Sometimes its justified for parents to dip into their children’s saving during rainy days, but it is utterly reprehensible to eye the savings as the MAIN option, and especially when the net effect does not in any way benefit the family as a whole.

Pray tell how this move to acquire prime land would benefit the Rakyat?

Does it mean that EPF would sell off the land to a third party?

But at what cost? The additional premium would surely put off any buyers who would probably rather be a first hand purchaser for such transactions to make business sense.

Would they develop it themselves, then?

EPF; in the property business. It’s highly risky, especially since even our giants in the housing sectors seem to be taking things easy for the time being.

And this is despite some having ample liquidity in their accounting.

Just like the IJN piratisation - (ahem.. excuse me) I mean - privatization, move, this doesn’t make sense.

Except for this: The national coffer is empty.

A worst-case scenario whichever way you look at it.

Crash Boom Bang.

Do say a prayer.

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