THE NEW

GOLDEN AGE

OF PENANG The Pearl of the Orient rides a new wave of growth and economic transformation

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BEHIND THE

SCENES E&O Passions chats with

Dato’ Lee Kah Choon, Special Advisor to the Chief

Minister of Penang

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E&O PULSE News, updates and happenings

APRIL - JUNE 2015

A newsletter of E&O Property (Singapore) Pte. Ltd. Copyright 2015 Eastern & Oriental Berhad

All rights reserved. Address: 1 Raffles Link #01-01 North Tower, Singapore 039393

T: +65 6337 1680 | E: eospore@easternandoriental.com | www.easternandoriental.com

Once a British colony that became one of the foremost ports in Asia in its early

years, Penang is now riding a new wave of growth and economic transformation

to bring out its best as an international city while retaining its rich heritage and

cultural splendour.

| SPOTLIGHT

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The 2008 inscription of George Town, the capital

of Penang, as a UNESCO World Heritage Site

speaks volumes about the island as a celebration

of colours, cultures and colonial charm that

stretches back over two centuries.

Wander through Penang’s bustling streets today

and you will discover it is alive and thriving in

almost every aspect of everyday life. Hear it in

the speech of the locals—a symphony of Malay,

Chinese, Tamil and English—all mingled

together. Taste it in the street-hawker fare that

is famous around the world.

Most of all, feel it in the unique island rhythm of

Penang living—a pace that is perfectly in tune

with the ebb and flow of the sea. In fact, Penang

is Malaysia’s most visited tourist destination and

a popular tropical haven for a second home or

retirement destination.

The Penang International Airport was recently

expanded as tourist arrivals increased from 4.8

million (2012) to 5.3 million (2013). Tourist

arrivals is estimated to have hit 5.5 million in

2014.

A vision springing to life

A clear indicator of the confidence in Penang’s

prospects is the entry of several major MNCs into

the island’s economy. Citigroup has opened its

second transaction services hub in Penang,

reportedly its largest regional trade and cash

processing centre, handling around 20 million

transactions. Wilmar International, Asia’s leading

agribusiness group, has chosen Penang as the

location of its first global business services centre.

SanDisk Corp, a leading flash memory storage

manufacturer headquartered in California, has

recently set up a RM1.2 billion manufacturing

plant in Penang while Japanese electronics and

ceramics producer Ibiden Co. Ltd. is increasing

production at its second building in Penang

Science Park by investing some RM1.3 billion. It

was also recently announced that computer

peripherals manufacturer Seagate will invest

RM1.05 billion to build a new plant in Penang

while furniture giant Ikea has confirmed its

entry with an RM8 billion project.

Temasek of Singapore has also signed a

memorandum of understanding with Penang

Development Corporation to develop the

Penang International Technology Park and

Business Process Outsourcing Prime at a gross

development value of RM11.3 billion.

With Malaysia described

by some as “medical travel’s

best-kept secret,”

Penang is gaining popularity

as a top medical tourism

destination

SPOTLIGHT |

The legendary Eastern & Oriental Hotel in George Town,

Penang — the hotel celebrates its 130th anniversary this year

A leader in medical tourism

With Malaysia described by some as “medical

travel’s best-kept secret,” Penang is gaining

popularity as a top medical tourism destination,

accounting for 60% of the country’s total

foreign medical tourists in 2011.

Its highly trained medical professionals and

modern facilities offer medical care at

affordable prices, as compared to destinations

elsewhere in the region.

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Other companies that have invested in Penang

in recent years include Bose, an American audio

equipment manufacturer; VAT Manufacturing, a

Swiss vacuum valve manufacturer; and Barkath

Co-Ro, a food manufacturer of brands such as

Sunquick and Hacks.

Investing in the future of Penang

As more investments flow into Penang and more

people move there, they will need safe places to

live, work, and commute. Pent-up demand on

the island remains strong and residential

property prices are expected to remain firm due

to scarcity of land. By 2030, Penang’s population

is projected to rise to between 2 million and 2.2

million, from around the current community of

1.6 million.

Statistics show that in 2013, Penang was ranked as

the third largest property market in Malaysia,

accounting for 9% of total transactions in the

country. A Credit Suisse report in November 2014

highlighted that the Penang property market has

grown by 19% since the first quarter of 2013,

exceeding the national growth rate of 12%.

This trend is expected to stay vibrant on the back

of rising affluence, an infrastructure boom, an

inflow of high-impact investments and sound

government policies.

Added to this is Penang’s natural beauty,

tropical weather and historical significance,

which make it one of the world’s top

destinations to live and invest in. This has been

endorsed by ECA International, which voted

Penang as one of Asia’s most liveable cities in

2010, 2011 and 2012.

Prime living in Penang

Seri Tanjung Pinang—a world-class masterplanned

development by premier lifestyle property

developer Eastern & Oriental Berhad (E&O)—

pays tribute to the heritage of Penang with its

stylish, Straits-eclectic homes. It boasts seafront

living at a prime address that is favoured by

both locals and expatriates. Today, it is home to

a vibrant community of more than 20 nationalities.

Sitting at the final and finest plot at Seri

Tanjung Pinang is 18 East at Andaman, the latest

E&O property gem that is both a home and a

resort. From its fantastic location by the sea,

dwellers get to enjoy the vista of the ocean, the

hills or the scenic skyline of Gurney Drive. At the

heart of Andaman is its spectacular 4.5-acre

waterpark amid 7 acres of green—that is a luxury

in land-scarce Penang and by any standards.

Being a part of the Seri Tanjung Pinang

community, Andaman residents are presented

with endless possibilities for leisure and

recreation. The seaside promenade is ideal for

walks, jogging and cycling while a 10-minute

stroll takes them to the vibrant Straits Quay,

Penang’s first seafront retail marina, bringing to

life the concept of living by the sea.

| SPOTLIGHT

“Little Children on a Bicycle” — famous street art mural by

Lithuanian artist Ernest Zacharevic in George Town, Penang.

The project, known as Mirrors George Town, was

commissioned in conjunction with George Town Festival 2012.

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This beautifully designed complex is also where

residents will be able to shop, dine and be

entertained. It is also home to the Performing

Arts Centre of Penang, the northern region’s

leading hub for the arts.

Residents of 18 East—the most premium tower

in the Andaman series—will enjoy a private

lobby concept with personal concierge services.

Further lending a touch of exclusivity, 18 East

residents will receive the Premier Card, which

entitles them to food and beverage promotions

at the iconic E&O Hotel and the boutique

beachfront Lone Pine Hotel in Penang; discounts

from selected retail stores at Straits Quay;

exclusive invitations to luxury lifestyle events;

and preferential pricing on E&O properties

(subject to terms and conditions).

Security at Andaman at Quayside is among the

most sophisticated in the region. Designed by GDSS

Security Consultants, it employs a multi-layered

zonal system enhanced by fibre-optic fences, 24-

hour CCTV cameras and motion detectors, all

monitored by a state-of-the-art control centre.

With the island’s transformation and growth

gaining momentum, the opportune time to

invest in a Penang property is now. 18 East at

Andaman—those who know, insist on E&O.

www.quaysideresort.com

References:

“Speech By Penang Chief Minister Lim Guan Eng In The ASLI Conference In

Singapore On Penang Investment Opportunities.” www.limguaneng.com,

26 November 2012.

“Bringing out the best of Penang.” Sunday Star, 20 April 2014.

“Citigroup Transaction Services Malaysia opens second hub in Penang.”

Citigroup Inc., 2 July 2013.

“The official opening of Wilmar Global Business Services Sdn Bhd.” Penang

State Government, 6 September 2013.

“California's SanDisk sets up RM1.2billion Penang plant.” AsiaOne.com, 9 June 2014.

“Japan's Ibiden invests RM1.3bil in M'sia, creates 1,500 new jobs.” The Star,

15 November 2013.

“Hot spots emerge as Penang property market stays vibrant.” The Edge

Malaysia, 5 January 2015, p. S10-S11.

“Seagate invests RM1 billion on new Penang plant.” The Malaysian Insider,

9 August 2014.

“Penang government, Temasek and EDIS inks MOU to develop BPO Prime and

Penang International Technology Park (PITP).” EDI Singapore, 22 May 2014.

“Growing at a fast clip.” The Edge Malaysia, 5 January 2015, p. S2.

“Speech by Penang Chief Minister Lim Guan Eng in Singapore at the Penang

Investment Opportunities.“ www.limguaneng.com, 14 October 2014.

“ECA names Penang ‘most liveable city’ for second year running.” The

Malaysian Insider, 23 April 2012.

SPOTLIGHT |

Enjoy panoramic views of the Andaman Sea from the comfort of your home at 18 East

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| BEHIND THE SCENES

E&O Passions is pleased to

chat with Dato’ Lee Kah

Choon in our special

feature on Penang. A man

of many hats, Dato’ Lee is

Special Advisor to the

Chief Minister of Penang.

He sits on the board of

various state government-

linked corporations and

private companies. He is

also Senior Advisor on

China-ASEAN affairs to

Zico RMC Pte Ltd, a

Singapore-based multi-

discipline advisory

company.

PENANG Transforming

What are some of the

changes you have seen in

Penang in the last decade?

Penang has always been one of

the most interesting states in

Malaysia with its sense of

history, thriving cultural scene

and strong NGO (non-governmental

organisation) activism.

The pace of development has

picked up in the past few years

but I’ve always been amazed at

how heritage has endured and,

in fact, experienced a

rejuvenation.

You will see it in the traditional

shophouses, which I see as a

symbol of perseverance and

rebirth. Before, they were left

derelict and unwanted; but

because society today is more

aware of its historic and

architectural significance, many

have been given a new lease of

life and are venues to a

flourishing market for artists,

F&B outlets and boutique hotels.

A number of heritage tours

have also been offered to

enhance tourists’ experience in

Penang — trishaw rides within

heritage sites, tours of the

historical enclave around

Armenian Street, clan houses

and Acheen Street, tour of

Cheong Fatt Tze Mansion and

Little India Spice trail.

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BEHIND THE SCENES |

The Penang Bridge is the second-longest bridge in Malaysia and the fifth-longest

in Southeast Asia by total length, with a length over water of 8.4 kilometres

The Penang Heritage Trust

organised living heritage trails of

George Town with self-guided

tours covering traditional trades

and traditional foods. All these

add to the heritage factor that

makes Penang famous.

The Penang skyline has also

changed. It started in the 1990s

when industrialisation, fast-paced

development and rapid

population growth radically

transformed Penang’s urban

geography. New housing estates

sprung up in all parts of the

island, replacing plantations and

vegetable farms. This trend has

continued due to rising affluence,

a pick-up in business activity and

growing investments.

What would you say are

some of the challenges

Penang is currently facing?

We have many things going for

us but with the increasing

number of people who choose

to visit, work and live in Penang,

our infrastructure needs to keep

pace.

We currently have free shuttle

buses and park-and-ride

schemes as stopgap measures.

The state government is actively

implementing infrastructure

projects via the RM27 billion

Penang Transport Master Plan

(PTMP) to revamp the transport

system for the long-term.

What is Penang’s vision and

what would it take to get there?

Despite our size, we aim to be

a vibrant, open and free society

in the heart of Southeast Asia,

with first-world institutions

capable of delivering clean,

democratic and effective

governance. Much like

Lausanne in Switzerland or

Perth in Australia, we aim to

create a sense of pride,

belonging and shared

ownership in the future of our

communities, state and nation.

To immediately improve the

quality of life for many people,

especially work-life balance, I

cannot emphasise enough the

priority of upgrading our

current infrastructure (roads/

port/airport). I’m confident

that’s the first step towards a

better life and future.

If you could share with an

overseas visitor about

Penang’s transformation,

which three main things

come to mind?

I’m extremely proud of our

heritage conservation. Arts and

culture contribute directly to our

sense of identity. Penang’s living

heritage finds expression through

a combination of architecture,

ethnic quarters, languages,

festivals, dances, costumes, art,

music, food and lifestyles.

To celebrate this, the annual

George Town Festival is a month

-long carnival of arts featuring

music, theatre, art, dance and

film. I would encourage the

visitor to stay for the festivities!

I would also highlight our

industrial advancement. This is

proven with the increasing

investments of many MNCs.

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| BEHIND THE SCENES

If your overseas friends were visiting Penang for the first time, which three If your overseas friends were visiting Penang for the first time, which three If your overseas friends were visiting Penang for the first time, which three

places would you take them to?places would you take them to?places would you take them to?

The three places would be: 1) the heritage enclave to get a sense of our past; 2)

the Penang National Park (the first protected area legally gazetted under Malaysia's

National Park Act of 1980) to get an appreciation of our natural resources; and 3)

Penang Hill for a sense of our present and possibly, our future.

Favourite street food:Favourite street food:Favourite street food:

Pan Mee (ban mian), Ban Chang Kuih and Nasi Melayu

Favourite place to hang out in Penang:Favourite place to hang out in Penang:Favourite place to hang out in Penang:

I enjoy the kopitiam experience so you will find me at the local

coffeeshops!

In the late 1990s, electrical and

electronics growth slowed down

and the situation worsened in the

2000s with the diversion of

foreign direct investments (FDI) to

other emerging countries in Asia.

From the late 2000s, however,

through effective programmes by

the state government and local

agencies to promote high-value/

value-added industries and create

an enabling business and innovative

environment, MNCs started moving

up the value chain by launching

R&D centres and locating their

shared service centres for global

operations in Penang. This is a story

worth retelling as it demonstrates

our resilience, which has resulted in

this exceptional turnaround.

Finally, I would talk about our

relentless environmental

protection that we give to our

natural resources. Due to

limited land on Penang island,

development has been pushed

further uphill and into the sea,

resulting in the need for

eco logica l ly susta inable

hillslope treatment and coastal

reclamation.

From cultivating day-to-day

habits such as “no free plastic

bag” campaign to developing

an urban regeneration and

renewal strategy, we’re always

thinking ahead of what we can

do to enhance the public realm

and harness the potential of

our historic quarters.

What do you think is the

winning factor that makes

Penang a vibrant property/

retirement hot spot in Asia?

It is a perfect combination of

hospitable weather, competitive

cost of living, good quality of life as

well as accessible and affordable

healthcare support system.

What is the one achievement

you are most proud of?

In my work with InvestPenang,

I would say being directly

involved in the successful

transformation of Penang into

a location of choice for

investors, tourists, retirees and

residents.

Illustrations: Proposed redevelopment concepts for Landmark House and Thames Tower 9

E&O PULSE |

E&O acquires Hammersmith site in London

E&O has acquired a 1.2-acre freehold site in Hammersmith, West London, at the

purchase price of RM308.9 million (£57 million). Prominently located along the

principal road connecting Central London to Heathrow Airport, the site is currently

occupied by two connected prime office buildings: the 11-storey Thames Tower and

the 15-storey Landmark House, which were constructed in the 1960s.

Dato’ Terry Tham, E&O Group Managing Director notes, “This prime freehold parcel in

the established commercial hub of Hammersmith represents a significant refurbishment

or redevelopment opportunity for E&O in the future. Subject to the relevant authority

approvals, there is the potential to create Grade A office space and residential

accommodation in an area where demand for quality new build property is strong.”

Supported by excellent connectivity, Hammersmith’s London Underground stations

provide access to the Piccadilly, Hammersmith & City and District lines. The two

stations are within two minutes’ walking distance from the site.

To date, E&O has three property assets in prime London locations — Princes House acquired

in 2012, ESCA House acquired in 2014, and the latest Hammersmith project, which together

have a combined gross development value of approximately RM1.4 billion (£269 million).

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| E&O IN THE NEWS

Media: Business Times, Malaysia (3 February 2015)

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E&O IN THE NEWS |

Media: The Star, Malaysia (21 February 2015)

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Actual photograph taken at the waterpark

Appreciating the enduring values in people’s lives inspires us to create places of true worth.

18 East at Andaman is a premium reserve collection of exquisitely-appointed

residences with dedicated entrances and personalised privileges. This exclusive

seafront condominium is set within a fully-completed 4.5-acre waterpark within

Seri Tanjung Pinang, the address of luxury island living and a haven to create

memories that last a lifetime.

Those who know, insist on E&O.

Opening Hours Monday - Friday | 9 am - 6 pm

Saturday | 11 am - 4 pm

OPEN FOR SALE

Call or visit the E&O Gallery Singapore at One Raffles Link #01-01 for a taste of life at the

pinnacle of the Andaman Sea.

SINGAPORE 65 6337 1680