"Smart Housing & Smart Citizen. Balancing citizen's needs & developer's ROI accordingly" Presented at ASLI Talks & Forums, Prince Hotel & Residence KL 2013.

1. Greater KL and Smart Cities Summit
Prince Hotel & Residence – February 25th, 2013
Affordable housing projects as part of a Smart City Platform
Connecting the dots between economic - demographic trends and
housing projects affordability
REI Group of Companies
Presentation by Dr. Daniele Gambero

2. The six pillars of “Smart City”
The “Golden Ratio Balance”
Smart City definition and the “six dimensions”
Malaysian economic performance
Malaysian demographic indicators
Urban versus rural – The current flow
Malaysian Wealth distribution
Vertical or horizontal? Future challenges

3. The six pillars of “Smart City”
The “Golden Ratio Balance”
EC
I TY O
IL N
B O
O M
ENV
M Y
E
PEOPLE
NC
IRO
NA
NM
VER
ENT
GO
LIVING

4. The road to …..“Smart City”
A city can be defined as ‘smart’ when
investments in human and social capital and
traditional (transport) and modern (ICT)
communication infrastructure fuel sustainable
economic development and a high quality of
life, with a wise management of natural
resources, through participatory action and
engagement.

5. MALAYSIAN ECONOMY - FACT FILE
Stable economic growth: in the last 8 years +/- 5% YoY basis
Positive balance of CA: ranked 19th out of 192 Countries
Government debt to GDP: still to be improved but only at 52%
Controlled unemployment: unemployment kept below 4% for past
10 years
High consumer confidence: index above 110 for the past 7 years
Controlled inflation rate: CPI below 3% for the past 10 years

6. MALAYSIAN ECONOMY - FACT FILE
According to the “Global Competitiveness Report 2012-2013”
just released by the World Economic Forum, Malaysia is
ranked in a transition stage from efficiency driven economy to
innovation driven economy.
The Global Competitiveness Index 2012-13 sees Malaysia
ranking 25th out of 144 Countries.
Within SEA Countries Malaysia is second after Singapore (2)

7. MALAYSIAN DEMOGRAPHIC - FACT FILE
1990 – Working Age (income production) / Pre-working + Retirement Age Ratio = 1.49
2010 – Working Age (income production) / Pre-working + Retirement Age Ratio = 1.20
2050 – Working Age (income production) / Pre-working + Retirement Age Ratio = 1.46

8. MALAYSIAN DEMOGRAPHIC - FACT FILE

9. MALAYSIAN MIGRATION FLOWS - FACT FILE
2011: 72.5% of the Malaysian population lives in urban areas

10. MALAYSIAN MIGRATION FLOWS - FACT FILE
2011: 21,000,000 Malaysians live in urban areas
1% growth every year

11. MALAYSIAN WEALTH DISTRIBUTION - FACT FILE

12. MALAYSIAN WEALTH DISTRIBUTION - FACT FILE
20%
20%
20%
1984: 60% of the Malaysian population shared 42.50% of the Nation Wealth

13. MALAYSIAN WEALTH DISTRIBUTION - FACT FILE
20%
20%
20%
2012: 60% of the Malaysian population shared 54.02% of the Nation Wealth

14. MALAYSIAN WEALTH DISTRIBUTION - FACT FILE
Malaysian average per capita income (2011)
RM3,000 (per month)
Or
RM6,000 per month per household
An average family (aged 25 to 35) will afford to buy a property priced
between RM350,000 and RM450,000

15. MALAYSIAN HOUSING TREND CHALLENGE
Budget 2013
… the Government will allocate RM1.9 billion to build 123,000 affordable
units (houses)…. The initiative will be implemented by PR1MA…
… RM500 million will be spent by PR1MA to built 80,000 houses in major
location nationwide with selling price ranging between RM100,000 and
RM400,000 per unit.
… PR1MA will provide the Housing Facilitation Fund RM500 million to
built houses in collaboration with private housing developers…. House
price 20% below market….
……….
With the Budget 2013 the Government has promised the delivery of
269,164 new houses…
with values ranging between
RM30,000 to RM400,000 (Affordable)

16. MALAYSIAN HOUSING TREND CHALLENGE
Klang Valley from 100 mi of height Hong Kong from 100 mi of height
Klang Valley: 7,800,000 population Hong Kong: 7,200,000 population
The future of Malaysian Smart Cities is vertical

17. MALAYSIAN HOUSING TREND CHALLENGE
Identification of suitable areas
Infrastructure must be provided to
ease the mobility towards working
areas
Round table with Government
Agencies to define the
framework/platform of cooperation
and related rules of engagement

18. MALAYSIAN HOUSING TREND CHALLENGE
Affordable Must be Vertical
Government, developers and NGOs have the duty to create
a new “Vertical” culture.
Government MUST revise existing guide-lines, facilitate and
subsidize Affordable projects with higher density through the
full application of the GBI parameters and rules
New laws platform has to be defined to define framework
and guidelines for the technical realization of the above

19. Thank you
For questions please email to:
daniele.g@reigroup.com.my
info@reigroup.com.my