Property Hunter Magazine Property Hunter Magazine Issue 53 - April 2014 | Page 61

Why Malacca Could Be the Next Big Thing After Iskandar Malaysia Malacca Pete Wong is the founder of Awarna Media with offices in Kuala Lumpur, Singapore and around the region. He made his foray into property on both sides of the Causeway since the early days - when Orchard Road was still known as District 9 and Mont’ Kiara was mostly inhabited by monkeys. Besides travelling around Asia on business, he finds time to write about the property scene, often advising investors with local insights. Pete is also the editorial consultant for Building & Investment magazine and one of the judges for the SEA Property Awards. Pete commented, If you find investing in local properties too daunting and Iskandar Malaysia overhyped, you may want to check out Malacca. During a recent visit to the historic city, I was surprised by its transformation. A few years ago, there weren’t many tall buildings and one could basically drive through town and see all there is to see in less than 15 minutes. Now, not only are there more buildings, well-known retailers are moving in and the number of tourists has shot up significantly. New hotels like Hatten are running at close to full occupancy despite it being just over a year old. Familiar shops like Esprit, MNG and Charles & Keith are nearby and you might get the feeling like you are in suburban Toa Payoh or Tampines. However, the difference here in Malacca is that your hotel rates and food prices are easily less than half of what you have to pay in Singapore, thanks to the strength of the dollar. One developer credited with transforming downtown Malacca from a sleepy town into a respectable retail hub is Hatten Group. The developer first came into prominence when it took over an abandoned project and re-launched it as Dataran Pahlawan Melaka Megamall in 2006. Since then, they have added a string of other projects including retail malls, hotels and condominiums, mostly around Malacca. Iskandar to Benefit From FilmMaking Industry nformation, Communiction and Culture minister Datuk Seri Dr Rais Yatim (third from left) looking at a model of Pinewood Iskandar Malaysia Studios Iskandar Malaysia Studios Sdn Bhd (IMS) is positioning Pinewood Iskandar Malaysia Studios as the preferred location for filming and television-related activities in the region. year experience and global reach to attract clients from around the world. While Johor is one big state and getting from one location to another is a long drive, most of Malacca’s attractions are within easy reach. Driving from the city centre to the ancient ruins of A’Famosa, for example, is only 15 minutes. Chief executive officer Michael Peter Lake said growth prospects in the film-making industry would be good in years to come and would create economic opportunities for Iskandar Malaysia. Malacca also has a killer advantage -a UNESCO World Heritage Site status. The only other place in Malaysia with a similar status is Penang’s Georgetown. “Prospects in the film-making industry will not only come from the region but also from the United States as well as Europe,’’ he told reporters following the signing of a joint venture agreement between Imagica Corp, a unit of Imagica Robot Holdings Inc, and Candelon Ventures Sdn Bhd, a special purpose vehicle of Khazanah Nasional Bhd, for the setting-up of a post-production facility, Imagica South East Asia Sdn Bhd at Pinewood Iskandar. Combine the city’s historical significance with its compact size, throw in famous food and restaurants at bargain prices and a growing retail scene – and what you get is a winning formula. In fact, hotels are not building fast enough to accommodate the exponential growth in tourist arrivals, especially during peak season. Located almost midway between Singapore and Kuala Lumpur, the city attracts holidaymakers and foreign tourists from both cities. If you were to invest in Malacca with a view to tap on the increasing number of tourists, you may be getting better returns than anywhere else in Malaysia. Signing on behalf of Imagica were president Yukihiro Fujikawa and strategic business development head Shinichi Noguchi while Candelon director May Quah Bee Fong represented the company. Lake said Candelon and Imagica would jointly market the post-production facility at the studios and the latter would be banking on its 78- “It is a win-win situation for both parties with us having world-class facilities at our studios here and our Japanese partner’s expertise as a strong selling point,’’ he said. Lake said Johor Baru could be the next Bangkok in the postproduction-related services as Malaysia was now ready to go all out in the filming and television industry. He added that apart from offering services in film making, Pinewood Iskandar had a wide range of facilities, a tank that could store 10,000 litres of water as well as facilities to produce TV series and postproduction work. Meanwhile, Noguchi said it would be 30% cheaper by having a post-production facility in Iskandar Malaysia, compared with Japan and competitive costing would be the main criteria to attract clients here. “Our decision to invest RM9mil overseas, the first for us in 78 years is largely due to the high operating cost in Japan and Iskandar’s strategic location at the crossroad between East and West,’’ he said. www.PropertyHunter.com.my 61