Mega-tower: A sense of deja vu


Najib’s recent announcement that a 100-storey tower will be built in the capital by a government investment fund comes as global liquidity is flooding the region and raises concerns the project could represent the front end of a coming new crisis.

Najib unveiled the plans for the tower, to be known as the Warisan Merdeka, or Independence Heritage, on 15 October. Two weeks later, Asian Development Bank chief Huruhiko Kuroda warned of two risks facing developing Asian economies like Malaysia: that the recovery in developed economies could be elusive and speculative capital inflows into developing economies could prove volatile.

The United States Federal Reserve is expected to announce a second round of quantitative easing this week, which could prompt the flow of even more speculative capital in search of higher yields into Asia’s developing economies.

Full story in Asia Times Online

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7 Nov 2010 9.42am

House prices going through the roof, not just in Penang, but in KL.

AN industry observer has called it “escalation gone mad”. “Property prices, after going through the roof, are reaching for the sky,” said another.

Ten months back, one could get a double-storey terrace in Taman OUG, Kuala Lumpur, for RM380,000. Today, it’s RM590,000.

Another example: in July last year, a corner lot double-storey link house in Damansara Jaya could fetch RM520,000, but now, a basic unit is going for as much as RM850,000.

3 Nov 2010 10.54pm

There is a strong correlation between construction of tall buildings with recessions.

saw seu
saw seu
3 Nov 2010 3.01pm

Just a few months before that,there was that announcement that we have to cut subsidies, that we must be on an austerity drive, or the country would go bankrupt. The oil wells will dry up,gas too wound stop squirting, and the global economy is in the doldrums.
Then out of no-where there comes this proposal to build a 100 storey block!PNB must be borrowing money to build it and if they cannot pay, the Government must bail it out and future generations will have to
settle such loans. Haven’t they learnt from Dubai? Morons!

4 Nov 2010 3.03pm
Reply to  saw seu

One fine day, we will have our beloved country put up for sale due to some recalcitrant nincompoops running the country to bankrupcy. Already the 2nd Penang Bridge is being built on China’s loan, and one fine day, if we cannot repay the loan…

Malaysia Boleh Dijual Murah!

7 Nov 2010 9.09am
Reply to  tunglang

BN fellows tried to cash in as much as they can, knowing that their time is up afte the next GE.

2 Nov 2010 10.17pm

100 stairways
The ego of a life
It takes the trip
With money from the people

100 stairways
Think what do you gain?
Causing traffic jams
Causing losses in the end

The ego trip of a life
100 stairways prompting a desire
The history of footprints
Money from the people

100 stairways
This isn’t the way
The people needs
It shouldn’t forget

2 Nov 2010 8.28pm

What the hell is wrong with our ministers? More importantly, what the hell is wrong with people who voted for them?

3 Nov 2010 8.30am
Reply to  Huda

When BN want money, they will just ask PNB to launch another one of their ASS …. (I mean, Amanah Saham scheme lah ) and you will find stupid fellas queuing up round 3 blocks just to ‘invest’ their money with them. And the non-bumi portion is snapped up in a matter of minutes. Then, very generously, they will release a portion of the ‘unsold’ bumi allotment to those who want to invest but cannot get it. And it gets snapped-up again. Now we see some of the same people complaining about PNB ‘building’ this phallus(-symbol)… But remember lah, in… Read more »

3 Nov 2010 11.32am
Reply to  Param

So true….