Tony moving on to AirAsia regional chief?

PETALING JAYA: AirAsia Bhd may see a new country head soon, while Tan
Sri Tony Fernandes will remain as the budget carrier’s regional chief,
sources said.

It is worth noting that AirAsia already has CEOs
for its respective operations in Thailand and Indonesia. It also has
plans to list these entities, which have just started making profits.

The
appointment of a new CEO here can be seen as an integral part of
Fernandes’ aspirations to make AirAsia a truly Asean airline.

“Fernandes will stay regional, (there will be) just a new CEO in Malaysia,” said the source.

This
development came amid AirAsia’s fast expansion in the Asian region as
well as the changing landscape of the local aviation industry. Its
latest regional move was the setting up of AirAsia Japan. Fernandes also
hopes to triple AirAsia’s fleet from 100 to 300.

Named Forbes’
Asia businessman last year, Fernandes played a big role in enabling
major changes in the country’s aviation industry this year. The AirAsia
CEO was instrumental in forging closer ties between AirAsia and
Malaysian Airline System Bhd (MAS) in a collaboration estimated to save
both airlines some RM1 billion per annum as both focus on core
competencies.

Under the deal, Fernandes and his deputy Datuk
Kamarudin Meranun took up some 20% in MAS via a share swap deal with
Khazanah Nasional Bhd in August. Khazanah in turn subscribed to some 10%
in AirAsia. There is a two-year moratorium attached to these
shareholdings.

sell substantially to non-Singaporean customers,” said a local property analyst.

Singapore
has had one of the most exciting real estate markets in the region as
investors from China, Indonesia and Malaysia snapped up private
residential properties in the island state.

According to
Singapore government data, foreign buyers accounted for 19% of all
private residential property purchases in 2HFY11, a substantial increase
from 7% in 1HFY09.

However, S P Setia president and CEO Tan Sri
Liew Kee Sin seemed unfazed by the new measures to curb real estate
speculation in Singapore.

Liew said S P Setia’s Singapore
projects are mainly targeted at Singaporeans wanting to upgrade their
dwellings. He expects to sell about 70% of the group’s real estate units
there to Singaporeans.

Additionally, Liew does not expect its
non-Singaporean customers to be frightened off by the additional stamp
duty charges. “The remaining 30% would be foreigners who want to buy
anyway, regardless of the stamp duty and additional 10% charge,” a
confident Liew said after announcing the group’s latest financial
results.

Liew also pointed out that S P Setia’s maiden project in
Melbourne had seen fast take up from Malaysians despite the strong
Australian dollar against the ringgit.

S P Setia made its maiden
foray to Singapore in April after acquiring a freehold development along
Woodsville Close for redevelopment. It plans to redevelop the 0.68-acre
land into a multi-storey residential apartment building with an
estimated gross development value (GDV) of S$130 million (RM316.3
million). The project is expected to be launched in the coming months.

Just
last week, S P Setia announced that its subsidiary had won a tender for
a 4.62-acre parcel at Singapore’s Chestnut Avenue for S$180 million.
The eco-themed development comprises residential apartments with an
estimated GDV of S$465 million. The project is scheduled for launched in
4Q12.

Selangor Dredging Bhd (SDB), another Malaysian property
developer with ongoing projects in the island republic, believes that
Singapore remains a viable investment destination despite the new
measures.

SDB communications and corporate affairs manager Yeoh
Guan Jin said although the impact of the new measures will likely be
felt quickly, the market will adapt to the new regime.

“Speculation
will likely be curbed for now. But in the longer term, demand for
property will return to normal. We are confident that the market will
ride this out. A more stable and less speculative property sector would
be a positive development,” Yeoh told The Edge Financial Daily in an
email response.

Yeoh added that SDB has no plans of delaying the
launch of its fifth Singapore project in Pasir Panjang, which is
currently scheduled for 2H12. In Singapore, SDB has completed and sold
out its low-density apartment called Jia on Wilkie Road.

The
other three projects that are close to selling out are its mixed
development Okio Residences, Gilstead Two apartments and 41-units of
luxury apartments called Hijauan on Cavenagh.

Among the Malaysian
players, IOI Corp and Khazanah (via listed property arm UEM Land) may
be more affected as they have a large landbank there with yet-to-be
launched projects. The latter recently gained control of two plots of
land in the Marina area in exchange for the surrender of the KTM railway
land.

Analysts say that a positive spin-off effect of
Singapore’s move could be a diversion of property investors to Malaysia,
particularly Iskandar Malaysia in Johor and even Penang.

“The
changes in Singapore may affect its attractiveness. It was previously
seen as having quite a liberal environment for real estate ownership by
foreigners. Foreigners do not like changes that affect their
investments. The Malaysian government has been relatively liberal when
it comes to property ownership by non-citizens,” said one property
analyst.

Foreigners in Malaysia are allowed to buy properties
priced at above RM500,000 and own landed homes, the analyst pointed out.
He also claimed that the Malaysia My Second Home programme was “the
cheapest long-term residency programme” in the world.