TIOS ASEAN - stregisklresidences.com TIOS-ASEAN-2011-MALA… · Ariffin, Mohd Nazmi Mohd Nur, Tengku Azizah Tengku Ahmad, Datuk Abdul Rahim Hashim, Azura Hashim ... Abdullah, Rosli

Malaysia Edition Version 1

TIOS

2011

ASEAN

A c k n o w l e d g e m e n t s : We WOuld lIke TO Thank The fOllOWIng perSOnS fOr TheIr dedIcaTed help durIng Our reSearch In MalaySIa

In The fIrST TrIMeSTer Of 2011:

The PEMANDU team, Senator Dato’ Sri Idris Jala, Indira Nair, John Low, D Ravindran, Christopher Tan, Dr Sarinder Kumar, Syahrilazli Mahammad, Ku Kok Peng, Miti Murdaya and Jacinta Vythilingam

And of course, Fui K Soong, Dato' Lewre Lew, Timmy Quasem, Biben Akbar, Suryo Sulisto, M Madani Sahari, Emi Fatmawaty Ariffin, Mohd Nazmi Mohd Nur, Tengku Azizah Tengku Ahmad, Datuk Dr Abdul Rahim Hashim, Azura Hashim Kamal, Kumar Tharmalingam, Lalitha Anandarajah, Datuk Wira Hj Ahmad Bin Hj Hamzah, Dr Salmiah Ahmad, Hanim Bt Mohd Yusof, Norhalim Yunus, Zahariah Zabidin, Noor Amal Morah, Datuk Badlisham Ghazali, Vijayaratam T, Nico Marco, Muhamad Amin, Rohit, Datuk Jalilah Baba, Teng Yit Chan, Kavitha Govallen, Mohamad Yusoff, Zaini, Saat Shukri Embong, Lt Col R. Ir Kamarulzaman Zainal, Thomas Tan, Rohani Yahaya, Azmir Agel, Badlisyah Abdul Ghani, Yusri Md Kasri, Ibrahim Hassan, Keni Kamaludin, Mohamad Zaihan Ariffin, Dato' Hafsah Hashim, Nina Syazwani Sarif, Amin Abdullah, Patricia Oh, Kaladher Govendran, Dato' Justin Leong Ming Loong, Joseph Yeoh, Prof Dato' Dr Ansary Ahmed, Datin Azizah Hj Ahmad, Mohd Adli Bin Yahya, Dr Abdillah Suffian, Prof Datuk Dr Ir Badruddin Nordin, Nur Ektierrina Haniz, Dato' Jesbil Singh, Lt. Gen. Dato' Wira Allatif Bin Mohd Noor, Prof Robert Bignall, Mohd Abd Rashid Mohd Fadzil, Tan Sri Dato' Dr Sharifah Hapsah Syed Hassan Shahabudin, Prof Tan Sri Dato' Dzulkifi Abdul Razak, Prof Tan Sri Datuk Nik Mustapha R Abdullah, Prof Dr Azlan Abdul Rahman, Dato' Prof Ir Dr Sahol Hamid Abu Bakar, Prof Dr Wong Tat Meng, Siow Kwang Khee, Jamal Kamaludin, Chew Eng Kar, Farid Jaafar, Ramanrao Bin Abdullah, Elina Baseri, Jamalludin Obeng, Datuk Nasarudin Md Idris, Zakia Hanim, Faridah Hanim Darwis, Yee Yang Chien, Safiah Samat, Adif Zulkifli, Azman Ibrahim, Arif Mahmood, Medan Abdullah, Viswanathan Selvaratnam, Dato' Danny Hang, Ray Tan Kwan Hua, Peter Loo, Jimmy Tang, Rohzalee Hashim, Rowina Ghazali, Peing Tajang, Tengku Abdul Rahman, Faidzal, Dato' Yusli Mohamed Yusoff, Delyana Nordin, Audra Ooi Yen Lyn, Datuk Mohd Najib Hj Abdullah, Robert Ho, Lim Hsin Ying, Shariffuddin Khalid, Lee Poh Fong, Jamy Faisal Md Yusof, Arfa'eza Bt Abdul Aziz, Tricia Yeoh, Tan Sri Sidek Hassan, Firoz Abdul Hamid, Dato' Jebasingam Issace John, Ravindran Kutty, Nuryushida Laily Yusof, Ummi Nadiah Rosli, Marsha Tan, Izyan Ahmad, Ismail Ibrahim, Zaini Long, Nasser Ismail, Balbeer Singh, Teri Loh Sook Fun, Nor Ain Mohd Nasir, Dayan Balkis Binti Md Ramli, Dr Junadida Lee Abdullah, Noharuddin Nordin, Asnor Yidya Nor Azmi, Nur Daliza Bt Dohat, Norizan Bt Ibrahim, Shahruddin Bin Abu Sohot, Mohd Izani bin Mohd Zain, Mohd Nazri Bin Noh, Noor Azleen Bin Ambros, Zamri Zainol Abidin, Nirmalan Ramasamy, Intan Zarina Bahri, Dato' Than Tai Hing, Raihana Binti Hj Khudri, Shamsul Qamar Bin Abd Rani, Bastien B. Onn, Dato' Mukhriz Mahathir, Hafeez Basri, Mohd Nizam Bin Mohd Khir, Ooi Goan Lee, Dato' Madinah Bt Mohamad, Kamel Mohamad, Datin Nur Wahidah Wong Abdullah, Rosli Mat Abu, Rosmin Mohamed, Dato' Redza Rafiq, Tan Sri Dato' Sri Hamad Kama Piah bin Che Othman, Adibah Khairiah binti Ismail, Aziz Anwar, Mustafa bin Mohd Noor, Aziz Anuar, Rizal Mansor, Dato' Devamany A/L.S. Krishnasamy, Datuk Tengku Sariffudin Tengku Ahmad, Razi bin Hassah, Aminah Binti Hj Mahadi, Zakri Abdul Hamid, Helen Abdillah, Kamil Daniel Yap, Pele Peter Tinggom, Tay Kah Soon Victor, Gerald De Cotta, Udin Bin Bujang, Azrin Zizal Abdul Aziz, Adnan Ismail, Dato' Dr Jacob Thomas, Amir Firdaus Abdullah, Clair Sondaz, Dr Mary Wong Lai Lin, Dato' Teddric Jon Mohr, Khor Thean Heng, Gayle Barbosa, Dr Junaidi Bin Ismail, Theresa Indra, Dato' Dr Jacob Thomas, Chong Chien Ming, Nik Hasanuddin Haji Mohd Ghazali, Yap Kean Peng, Daphne Goh, Dato' Sri Tai Hean Leng, Shah Hakim Zain, Puan Rohaida, Kanesan Velupillai, Noorizah Hj Abdual Hamid, Khalilah Dato' Mohd Talha, Iskandar bin Dzulkifli, Mohd Muhsin Bin Ahmad Sabri, Dato' Jackon Tan, Joshua Purushotman, B Sureshram, Elaine Chuah, Justin Then, Nazneen Halim, Yap Fei Sen Lichee Chia, Rash Behari Bhattacharjee, Au Fong Yee, Dorothy Teoh, Surin Murugiah, Alison Christina Lim, Sharon The, Dinesh Ranawaka, Mark Rozario, Lillian Lung Hian Li, Dato' Tong Kien Onn, Benny Yap, Lyanna Tew, Diyana Nordin, Dato' Foo Chu Jong, Aidil Zeffri Azman, Foong Pek Foong, Ng Siew Yen, David Khor, Previndran Singhe, May Sim, Dato' Hj Ameer Ali bin Mydin, Kuan Nunkeng, Lim Kuang Sia, Edward Yip, Oh Wai Peng, Tan Sri Lim Wee-Chai, Christine Lim, Eric Hoo Saw Ho, Anita Daud Charles, Mohd Yazid Abd Hamid, Juanita Joseph, Johan Indot, Dato' Dr Mohd Nazlee Kamal, Rossuraya Abdullah, Andrew Moore, Rohit Shukla, Robert George Hercus, Munirah Abdul Hamid, Sasha Nordin, Dr Azmi bin Hassan, Ahmad Fuzli Fuah, Diana Zahidin, Irene Ng, Caroline Filtzinger, Esra Loo, Yoke Ling, Mark Chen, Norizan Yaacob, Dianna Lee, Robert Menzei, Trudy Moreno, Vanessa Lenzlinger, Annies Jaya, Adrian Tan, Yatie Yusoff, Catherine Chan, Bennet Chang, Eugene Yeo, Julian Khor, Fadzillah, Cheryl Loo, Rahayu Kamal, Datuk Peter Brokenshire, Angeline Lue, Sabri Majid, Joeanne Low, Suresh Nair, Rachael Wong, Stephanie Chen, Arno Thony, Penny Ong, Baldev Singh, Pearly Tan, Aaron Tan, Adele Ang-Chen, Darus Ismail, Noraldila Rapek, Lloyd Daser, Song Mei Lan, Elizabeth Lee, Kim Ong, Tim Quarm, Ivy Ang, Cheryl Loo, Johan Chan, Lothar W Nessmann, Ramish Singh, Evelyn Chew, Jay Lim, Cheah Keat Fui, Carolyn Pereira, Rachael Harman, Sim Fooi Lai, Carmen Chua,

Azran Osman Rani, Shahari Sulaiman, Mohd Faizal Murah, Kelvin Ow, Datuk Rohana Tan Sri Mahmood.

ZMASKAD10268 TIOS ASEAN ADSize: 204.75mm (W) x 273mm (H) • Bleed: 3mm around

BLACKYELLOWMAGENTACYAN

SL (G5-51)M9A60735MAR11

ZMASKAD10268 TIOS ASEAN AD_X6.ai 10/03/2011_10.30PM

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special thanks to

editor-In-chief and executive director: Caroline Couronne

research associate and partner: Emmanuel Lehmann (Citadelle Conseil)

research associate and partner: Romain Bollack (Citadelle Conseil)

aSean regional Manager: Dhyana Torrente

aSean regional analyst: Joshua Brown

South east asia economic Intelligence coordinator: Rafik Ounadi

assistant editor: Walther Hontiveros

designer: Matthieu David

TIOS Group International102 av. des champs elysées75008 parisTel: +33 1 47 22 58 33fax: +33 1 42 89 23 77rcS number:48876843300036

NOW KUALA LUMPUR’S MOST COVETED

ADDRESS IS YOURS FOR THE ASKING

160 breathtaking residences.Six-star amenities and personal butlers.

A private Astor Residence Lounge. In-residence dining, housekeeping and

other personalized services.

for enquiries please contact

[email protected]

or call +6 012 612 1111

stregisklresidences.com

A ONE IFC Residence Sdn Bhd Development. A Starwood Hotels & Resorts Worldwide, Inc. Managed Property. The Residences at the St. Regis Kuala Lumpur are not owned, developed or sold by Starwood Hotels & Resorts Worldwide, Inc. , Sheraton International

® trademarks and

for the content presented herein, including but not limited to, any advertising claims, marketing practices, and data collection and usage, and privacy practices. Hotel services described herein are available from the St. Regis Hotel, Kuala Lumpur on request, subject to availability and at an additional fee, not included in the purchase price.







[email protected]

or call +6 012 612 1111



® trademarks and








[email protected]

or call +6 012 612 1111



® trademarks and


TIOS ASEAN 204.75x273mmFA.indd 1 4/4/11 7:15 PM

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TIOS aSean 2011 - MalaySIa edITIOn, Version 1

one ifc st régisTourism has been earmarked

as a National Key Economic Area (NKEA) by the Malaysian government. Malaysia’s Econo-mic Transformation Programme (ETP) has set targets to grow the Gross National Income (GNI) contribution of the tourism sector already the second largest foreign currency earner for the country, to RM103.6 billion or USD$34.2 billion in 2020 from RM36.9 billion to USD$12.1 billion in 2009. The Ministry of Tourism in line with these objectives, has set a specific target of attracting 36 million tourists annually by 2020 with the hope that they will deli-ver annual yields of RM168 billion or USD$55.5 billion by the same year. One of the first projects to be announced under the Tourism NKEA as an Entry-Point Project was The St Regis Kuala Lumpur development by ONE IFC Sdn. Bhd., a joint venture of the priva-tely held CMY Capital Group and public listed company Malaysian Resources Corporation Bhd.

Situated on a prime location overlooking Kuala Lumpur’s largest green lung in KL Sentral, the city’s main transportation hub, the project of a total deve-lopment area of 1.4 million square feet, will consist of a 208-room six-star hotel, 200,000 square feet of convention facilities and 160 units of serviced apartments. With piling works underway, the construction of the mixed-use development commenced in November 2010 and is on schedule for completion in November 2014.

The RM1.2 billion or USD$396.4 million capital commitment for the development of the six-star St Regis hotel and branded residence is entirely private sector funded and represents approximately 3 percent of the total capital investment targeted under the programme for the construction of the estimated incremental hotel rooms required by 2020. “As one of the largest private sector-driven initiative, the St Regis project is a catalyst for growth and is an inte-gral part of the Greater KL Master Plan and the Tourism NKEA. It will contribute to job creation and multiple economic activities, both during its construction period and upon its completion,” said Car-men Chua, chief executive officer of ONE IFC.

In line with ETP and the 10th Malaysia Plan objectives, The St

Regis Kuala Lumpur will have a significant positive overall impact on the country’s growth, contri-buting towards achieving the targeted average 6 percent GDP growth rate, doubling per capita GNI to USD$15,000 by 2020 and creating 3.3 million jobs.

Malaysia’s growth in the tou-rism sector has been predomi-nantly reliant on growth of arrivals rather than yield with 75 percent of growth coming from increases in tourist arrivals and only 25 percent coming from growth in yield, according to PEMANDU. To counter this trend PEMANDU has laid out plans under Entry-Point Project 12, under which to the St Regis development falls, to improve the rates, mix and quality of hotels in order to successfully at-tract high-yield tourists. Malaysia today has a lower mix of five-star hotels versus its regional counter parts. Just 5 percent of Malaysian hotels are five-star hotels versus 13 percent in Singapore and 14 percent in Thailand. To move towards the ambition of growing tourist yields by three times and tourist arrivals by 1.5 times the country will have to upgrade and increase the supply of high-end hotels, according to the ETP Road-map, PEMANDU’s comprehensive outline of the programme. Upon its opening, The St Regis Kuala Lumpur will join the global St Re-gis portfolio as one of the world’s finest international destinations.

"Investing in Tourism: Major Hotel Projects Pave the Way for FutureInvestments."

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“This project will create a new benchmark in the hospitality industry and service sector; and will be a new landmark in Malay-sia’s international tourism promo-tion”, Carmen Chua adds. As part of Starwood’s global network of marketing and distribution, and reservation systems, the St Regis Kuala Lumpur will attract a his-torically untapped market of high-income high-yield tourists as the hotel of choice amongst a loyal base of Heads of States, diplo-mats, dignitaries and captains of industries, which includes the Chinese President Hu Jintao, Sin-gapore Minister Mentor Lee Kuan Yew, United States Secretary of State Hilary Clinton, royalty from Europe including Prince Andrew Duke of York, haute couture desi-gners including Roberto Cavalli and Polo Connoisseur Nacho Figueras. Starwood is one of the leading hotel and leisure compa-nies in the world with approxima-tely 1000 properties in more than 100 countries with a portfolio of brands that include the St Regis, W, Westin, Le Meridien, Sheraton and aLoft.

Following in the tradition of the legendary St Regis New York, St Regis Kuala Lumpur will feature the famed hallmarks of St Regis hotels – butler service and a custo-mized guest experience in luxury accommodations. The renowned St Regis Butler Service offers unpa-ralleled round-the-clock personal attention to every guest. Trained in the English tradition, the butlers will provide ever-present yet unob-trusive service while anticipating guest needs and customizing each guest’s stay according to his or her specific tastes and preferences.

“We are thrilled with the land-mark entry of St Regis brand into Malaysia, Kuala Lumpur, as the capital of Malaysia, represents the heartbeat of Malaysia. The growth of international arrivals has remained strong through Tourism Authority of Malaysia’s efforts at promoting Malaysia and Kuala Lumpur as a destination for business, leisure and meetings,” said Mr Miguel Ko president of Starwood Hotels & Resorts, Asia Pacific. “The sustained demand for luxury accommodation, the renowned Malaysian hospitality combined with the legendary bespoke service of the St Regis brand, and the unrivalled loca-tion of this hotel in the exclusive urban centre of KL Sentral, will make this property an extremely

attractive choice for travellers to Kuala Lumpur,” he added.

With significant multiplier ef-fects on tourism, services, finance and retail, building materials and manufacturing industries, the pro-ject will catalyze greater econo-mic activity, generate demand for additional high-value employment and increase per capita incomes of the large employment base in the tourism sector. “The hotel aims to recruit 95% of its staffing requirements locally and will be trained under St Regis’ existing training programs in service. The St Regis training program is our investment in human capital and represents our commitment and dedication to support a high-skill, knowledge-based economy.”

In moving towards the target of growing tourist receipts by three times, Malaysia will need more investments to upgrade and increase the supply of high-end hotels, according to PEMANDU. The St Regis will help to move the sector forward in this regard and has started the ball rolling on a number of other significant pro-jects under the transformation program.

Indeed, Teluk Datai Resorts and several YTL hotels have both had subsequent Entry-Point Projects announcements committing in excess of RM400 million as a group. The rapid uptake in the Tourism NKEA has exposed new opportunities for investors both foreign and domestic interested in capitalizing on the growth story in Malaysia’s tourism market and has paved the way for future invest-ment into the space.

“This project will create

a new benchmark in the hospitality

industry and service sector;

and will be a new landmark

in Malaysia’s international

tourism promotion.”

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industry outlook: tourism

Tourism is the second largest foreign currency earner for Ma-laysia after oil and gas and is one of the most important drivers of growth in the country. Today, it is the 9th most visited country in the world and receives more than RM1 billion or USD$330 million per week in tourist receipts from foreign visitors. The government has earmarked the industry as a whole under its Economic Trans-formation Programme (ETP) as a National Key Economic Area (NKEA) and the Ministry of Tou-rism has set a target it refers to as, “2020:36:168,” which translate to a target of 36 million tourist arri-vals and RM168 billion in tourist receipts by 2020. To achieve this ambitious target, Malaysia will need to grow its tourism industry by a factor of three to contribute RM3 billion or USD$990.2 mil-lion in tourist receipts per week by 2020. Malaysia’s launch towards its tourism goals comes from a strong starting point, with the industry growing consistently at about 14 percent per annum in the last decade. The tourism space is relatively proving to be competitive against other regional players and the standard of service is constantly improving.

Yong Yoon-Kit, Associate Di-rector of Tourism NKEA, says the industry is relatively easy to grow in comparison with other sectors of the economy. “In terms of job creation, it is an easy industry to grow because it is products that are sold locally,” said Mr Yong. Moreover, “there is no major capital expenditure.

Growth can be relatively easy as long as you have a good product. There is significant opportunity to grow the tourism industry both in terms of incomes and in terms of jobs.” The government’s own ETP Roadmap rightly identifies several megatrends affecting not just Malaysian tourism, but also tourism globally. We will focus on just three here that are largely interconnected.

The world is witnessing the creation of the global elite. There are increasing numbers of high-income or high-net worth consu-mers around the globe with high expectations of service and pro-duct quality. These consumers are in part driven by a second me-gatrend emerging from the faster pace of life globally. The increased stress levels and reduced time for leisure that has accompanied urbanization and increased com-petition in the global workforce has left urban consumers more willing to spend on short escapes from their daily lives. The effect has been an increased number of leisure departures per person and shorter lengths of stay.

Lastly, and perhaps of greatest relevance, is the rise of the emer-ging market consumer. Much of the emerging world is underre-presented in the global tourism market both in terms of depar-tures and expenditures. However, as these economies continue to grow, consumer’s disposable in-comes will increase, which lead to more people who can afford to travel. Malaysia already has a strong presence in the Middle

East segment but should conti-nue to benefit from the growing middle class in Southeast Asia, particularly as the region moves towards greater integration and connectivity.

Malaysia’s tourism sector is not without challenges though. One such central challenge is that of yield. Malaysia’s growth is predo-minantly reliant on the growth of arrivals rather than yield. Seventy-five percent of Malaysia’s growth has been due to the increase of tourists arrivals compared to only 25 percent of growth from yield. Comparatively, growth in Singa-pore was driven by 65 percent by arrivals and 35 percent by yield. In Thailand, growth increased by 42 percent by arrivals and 58 percent by yield.

Long-haul tourists currently spend an average of 10 nights in Malaysia versus 14 nights in Thai-land, spend less and come from predominantly short-haul, low yield markets.

To address these challenges Malaysia will need to upgrade tourist offerings and services and enhance connectivity to key priority markets. Entry-Point Pro-jects have been outlined in the ETP Roadmap and have seen some of the strongest private sector uptake of any of the NKEAs. Some of those key projects include a RM1.2 billion or USD$396.1 million com-mitment by One IFC Residences Bhd. for the development of the St Regis Hotel and a RM1.86 billion or USD$613.9 million commit-ment by AirAsia X Bhd. for new planes to connect medium-haul

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markets. Based on demonstrable strength in Entry-Point Projects, TIOS Group is positive on the Malaysian tourism sector and expects continued investment in upgrades across the sector in subsequent ETP announcements.

“The good thing about tourism is it is very high profile by nature and each project is sizeable but not too big – not like oil and gas where this is just one big invest-ment – tourism has a very wide scope, from buying airplanes to

building hotels. The industry itself is highly varied and presents a lot of opportunities for investment to come in.

NKEA Tourisminterview

TIOS Group International talks to Yong Yoon Kit, Associate Director, Tourism, PEMANDU

TIOS Group International: Please define the scope and breadth of National Key Economic Area Tourism activities.Yong Yoon Kit: Tourism has 12 major Entry-Point Projects, which were identified during the two-month labs. These range from duty free Malaysia, to the Kuala Lumpur-Bukit Bintang shopping precinct, to premium outlets and more. Most of these are very private sector driven with very minimal public sector funding required. It is mostly the effort of getting it through the machinery that we help with. We can improve rules and help get things done. That is what the main purpose of these projects is.TGI: Tourism has had one of the strongest investment uptakes in terms of number of projects. Do you expect to see that same rate of uptake going forward?YYK: We will try to do at least one in every announcement. The good thing about tourism is it is very high profile by nature and each project is sizeable but not too big. Unlike oil and gas where this is just one big investment, tourism has a very wide scope from buying airplanes to building hotels. The industry itself is highly varied and presents a lot of opportunities for investment to come in. In terms of number of announcements, there will be a lot from tourism.TGI: There is some overlap with other NKEAs. When a project comes in that overlaps – for example Tourism and ‘Wholesale and Retail,’ another NKEA – what is the decision making pro-cess to classify that project?YYK: If we can break it up into parts then so be it. Otherwise, if the majority of the project is mainly healthcare for example, then we’ll park it in healthcare. If it is mainly in ‘Wholesale and Retail’ we’ll park it there. In the end, we will join in those meetings anyways. It’s not a clear-cut line and we will participate wherever we can add value.TGI: What facilitation resources and tools are at your disposal?

Yong Yoon-KitAssociate Director, Tourism, PEMANDU.

Yoon Kit joined PEMANDU on 1 October 2010, after serving in the Tourism NKEA lab in June-July 2010 leading up to the completion of the Economic Transformation Programme roadmap.Prior to that Yoon Kit was the Group IT Manager for Royal Selangor International, a pew-ter manufacturing company. He is also currently the Deputy Chair of the ICT & Multimedia committee for the Federation of Malaysian Manufacturers (FMM), Council Member of the Malaysian National Computer Confederation (MNCC) and Vice Chair of the Malaysian Chapter of the Internet Society (ISOC). He is a graduate of Imperial College, University of London.

Documents

TIOS ASEAN - stregisklresidences.com TIOS-ASEAN-2011-MALA… · Ariffin, Mohd Nazmi Mohd Nur, Tengku Azizah Tengku Ahmad, Datuk Abdul Rahim Hashim, Azura Hashim ... Abdullah, Rosli