Vol. 11 Issue 2 (Asset Integration International Conference (AiC 2016))

-By Markus Bulus, Malsiah Hamid, Lim Yaik Wah and Tanko Bruno Lot

Abstract

The use of the courtyard as an architectural design element is applicable in almost all building typologies in all regions of the world due to its microclimatic potentials for passive and low energy architecture. But despite its abundant advantages, research effort towards its examination in buildings is very scarce. Therefore, this study examines the courtyard dimensions and proportions in Universiti Teknologi Malaysia (UTM) buildings such as the courtyard perimeter ratio, aspect ratio, height, and area. The methodology of this study is the use of a specification checklist which was developed for the study. Forty-six courtyards in thirty-two buildings were examined. The statistical description was used to interpret and analyzed data. The study revealed that most of the courtyards in UTM buildings were designed within the specification. The courtyard aspect ratio, perimeter ratio, and height are; 81, 94%, and 84% respectively. In conclusion, this study explains a research work that adds in the direction of understanding the courtyard designed dimensions and proportions characteristics in buildings in UTM. However, more future simulation studies of their microclimatic behavior are required so as to substantiate the findings of this study, and to give courtyard design recommendations to architects for future architectural design proposals.

Keywords:  Courtyard parameter; Design variants; UTM Building; Climate

01 – EXAMINATION OF COURTYARD DIMENSIONS AND PROPORTIONS IN UNIVERSITI TEKNOLOGI MALAYSIA BUILDINGS.docx

 

-By Syed Putra Syed Abu Bakar, Mastura Jaafar and Azlan Raofuddin Nuruddin

Abstract

According to the list issued by Malaysia Co-operative Societies Commission (MCSC) in 2016, Koperasi Tunas Muda Sungai Ara Berhad was placed ninth among 100 selected best co-operatives in Malaysia. This co-operative is among the leading housing organization in Penang with significant projects throughout the island. Drawing on primary data from an in-depth interview with the Chairman of Koperasi Tunas Muda Sungai Ara Berhad (KTMSAB), this effort reveals the success factors of the co-operative especially in managing its business towards superior performance. Among the emerging success factors given by the interviewee are committed leadership of the directors, collective works between staff and board members together with benefits enhancement for co-operative members, high organizational reputation, good relationships and networking, sound financial and customer retention management and ample landbanks for forthcoming projects. Although the real estate business currently faces many external challenges, this remarkable co-operative is confident of further progress by venturing to other states in Malaysia through joint-ventures. This study is the first of its kind to be conducted on a co-operative in a specific industry in Malaysia using the exploratory approach; the findings must be treated circumspectly and complementary to prior studies.

Keywords: Malaysia; residential developers; housing co-operatives; business success; Koperasi Tunas Muda Sungai Ara Berhad

02 – PERCEIVED BUSINESS SUCCESS OF MALAYSIAN HOUSING CO-OPERATIVES A CASE STUDY OF KOPERASI TUNAS MUDA SUNGAI ARA BERHAD

 

-By Muhammad Amirul Aizat Abdullah, Nor Rima Muhamad Ariff, Norsalisma Ismail and Julaida Kaliwon

Abstract

In every type of building, maintenance always play a main role to make sure the building is in good condition and maintain its function for a long term. Unfortunately, the lack of concern towards building maintenance, especially the façade of building lead to difficult and costly maintenance. A majority of maintenance operation for building facade suffers from the lack of maintenance planning, access and routine. Façade is the key element of a building and it influences the comfort, safety and aesthetics of every building. Studies on mosque buildings in Malaysia have highlighted that lack of facade maintainability has caused a large financial impact on the building total maintenance cost. This study aims to investigate the effect of facade maintainability factors on mosque building maintenance operation that will provide information and recommendations that could be taken during design phase. At the same time, theoretical framework for a proposed study is presented in this paper. The establishment of maintainability factors which influence maintenance of building façade helps to intensify knowledge and understanding the importance of maintenance for every building design.

Keywords:  Facade Maintainability, Maintenance Consideration, Mosque

03 – FAÇADE MAINTAINABILITY FOR MOSQUES A REVIEW FOR MAINTENANCE CONSIDERATION

 

-By Wan Ibrisam Fikry Wan Ismail and Norshafadila Ngadiman

Abstract

The diminishing agriculture land area in Malaysia, especially in the area of paddy plantation will lead to reduction of country’s rice productivity. Paddy land located in the outskirts of the cities was seen to be the targeted area in the conversion of land usage; from agricultural to building or industrial land. Existing policies such as the National Agricultural Policies, Five Years Malaysia Plans, Food Security Policy and New Economic Model are clearly formulated to protect the performance of quantity and quality of rice production in reaching the 85 % rice self-sufficiency before Malaysia is ready to be a main producer in the future. This paper will look into the perspectives from policies implementation and main target group of the policies (paddy land owners). Hence, the investigation into the pattern of rice productions from 2004 to 2014 in KADA and MADA, and the survey on the paddy land owners in MADA was conducted. The result of the study shows the effects of the reduction paddy land to the rice productivity. It is also discovered that 96% of paddy land owners chose to remain planting paddy and sustaining the paddy land area.

Keywords:  Agriculture, Paddy Land, Land Use Conversion, Policy, Rice Production

04 – LAND USE CONVERSION ON RICE PRODUCTION POLICIES, RICE PRODUCTIVITY AND PADDY LANDOWNERS

 

-By Nurulliza Salleh, Ainur Zaireen Zainudin and Norhidayah Md. Yunus

Abstract

This review paper covers the important role of a residents’ association in governing a guarded neighbourhood. Nowadays, offering a guarded neighbourhood scheme has become a trend in the housing industry. There are two ways in establishing a guarded neighbourhood; that is through the developer or the residents. The developers attract the buyers by providing the elements of safety and security, while the residents in a housing area choose to secure their neighbourhood to prevent crimes. Problems arise in the establishment of a residents’ association due to the absence of legal provision that focuses on guarded neighbourhood management until it invites problems for the residents’ association to govern their neighbourhood. This aim of this paper is to determine whether there is a need for the residents’ association to govern their guarded neighbourhoods. Accordingly, using the residents’ association as a platform, this study will review some research conducted by other researchers regarding this issue. Thus, the findings show that the roles of the association are focused on managing safety, maintenance and care of common interest in the neighbourhood guarded. Therefore, in order to strengthen the role of community associations, there is a need for better cooperation and communication between the residents’ association with stakeholders such as residents and local authorities. It was found that the roles of residents’ associations should be given more focus with more clarity.

Keywords: Residents’ associations, Guarded neighbourhood, Residents

05 – IMPORTANCE OF RESIDENTS’ ASSOCIATIONS IN GUARDED NEIGHBOURHOODS A REVIEW

 

-By Iheanyichukwu Joachim Onuoha, Norhaya Kamarudin, Godwin Uche Aliagha, S. A. Okeahialam, Moses Idowu Atilola and Fidelis Osagie Atamamen

Abstract

Nigerian government has begun to develop plans that will address green buildings and environmental sustainability, a matter and issue on which Malaysia has wide-ranging experiences. Through a comparative study on green building policies in Malaysia and Nigeria, the study identified important lessons relevant to Nigeria green building policies and programmes and creates a general explanation of Malaysia green building policies that could be applicable to Nigeria. The study revealed that Malaysia has more elaborate green building policies, and implementation programmes that could have practical utility for green building developers and investors than Nigeria. The study concluded that Nigeria can in addition to adopting stronger research agenda for green building policy issues, and regulations, she could as well learn from the provisions of Malaysian GBI policy by adopting some GBI policies, programmes and incentives especially in the area of green technology that is effective to sensitize green building in Nigeria.

Keywords:  Green building, Policies and programs, Green building index, Nigerian green building council

06 – DEVELOPING POLICIES AND PROGRAMMES FOR GREEN BUILDINGS

 

-By Mohd Sharil Mat Salleh, Nur Nazuha Mahbob and Nik Sulaiman Baharudin

Abstract

There is a very less information and literature review we have in hand about Generation Z characteristic. Most organizations are still at large not much concern of their existence, while the society is just getting seriously influenced by them. This paper highlights on the behavioral characteristic of Generation Z in a sense of lack of self-belonging and responsibility to the hostel facility that had become one of the contributing factor in the increase of maintenance cost. This paper used UniKL MIAT in-campus residence as a case study. The study used three types of data collection. The first data collection is via distributed questionnaire survey that focused on individual background and traits identification using ‘Sidek Personality Inventory’ tools. Second data collection is the historical data on maintenance expenses for the past two years. Relevant evidences such as exhibits, summon notices, direct observation and interview with the University’s hostel personnel are also used as the third data collection. The behavior of in-campus residence, namely Generation Z is discussed thoroughly with support on the evidences. Finding reveals, the Generation Z behavioral characteristic is a part of the contributing factor to the increase of maintenance expenses. The outcome of the study will be useful as an input for the University in developing the right approach on the behavior modification in producing a good citizen to achieve the Graduate with High Order Critical Skill (GHOCS). Nevertheless, the study is only focusing on the Generation Z type in Malaysia.

 Keywords: Gen Z, behaviour, hostel, university, facilities management

07 – OVERVIEW OF “GENERATION Z” BEHAVIOURAL CHARACTERISTIC AND ITS EFFECT TOWARDS HOSTEL FACILITY

 

-By Nur Azrin Ahmad Pakrudin, Mat Naim Abdullah@Mohd Asmoni, Janice Lee Yim Mei, Mohd Nadzri Jaafar and Abdul Hakim Mohammed

Abstract

This paper will explore the current literature that delves into the critical success factors (CSFs) for the implementation of Facilities Management (FM) in Healthcare industry in terms of the implementation, preparation of a compilation, and identification of any gaps that might exist. The research makes reference to various journals using the key terms and only 90 articles were short-listed as the most accomplished and relevant article. Using the key term between facility management success and healthcare success, this paper identified healthcare success factors. CSF constructs were then identified using the content analysis methodology and an inductive coding technique. A subsequent analysis identified gaps that exist in the literature base. Currently, a framework found for FM healthcare encompasses maintenance management, performance management, risk management, development, ICT and supply service management. No research has been conducted to extract these six factors and validate them as CSF’s in FM healthcare. A comprehensive review of FM practice in healthcare is presented in this paper. The framework of healthcare success factors in the FM developed is clear, cohesive and it can be well understood by all levels among the healthcare professionals.  There is a lack of FM studies in the context of the healthcare industry, which limits the knowledge and exploration of the research scope. This study can further be explored for future research to secure FM as an added value to the healthcare sector, and therefore enhance the service quality and improve the corporate image. This research provides a comprehensive compilation of all previously identified FM implementation success factors, through a clearly structured methodological approach and gives comprehensive key factors which define the critical success factors for FM in the healthcare industry.

Keywords:  Healthcare, Hospital, Facilities management, Critical Success Factors

08 – CRITICAL SUCCESS FACTORS FOR FM IMPLEMENTATION IN THE HEALTHCARE INDUSTRY

 

-By Kalu Joseph Ufere, Buang Alias, Aliagha Godwin Uche and Uloko Josial Onu

Abstract

Corporate environmental information disclosure is a means through which corporation respond to the demands of the community and stakeholders. The real estate sector accounts for about 30 percent of global greenhouse gas emissions hence the concern for measurement and disclosure by industry plays toward carbon disclosure and mitigation. The study examines the level of corporate environmental disclosure as an industrial performance measure for policy making and benchmarking for international best practices. Environmental disclosure is a cardinal component of the corporate social responsibility requirement of the Malaysian stock exchange market. The study is based on the theories of Legitimacy, Stakeholders, and Voluntary Disclosure Theory. The study is limited to the real estate sector of Malaysia, comprising real estate investment companies, property companies and construction companies making up the sector. A total of 126 companies were sampled and their annual reports for 2013 analyzed through discriminant analysis and quantitative content analysis and result shows a marginal level of environmental disclosure in the property sector. Corporate real estate disclosure links commercial real estate with greenhouse gasses emission, energy consumption, waste management, and sustainability practices. The implication of the result suggests a possible low level of public and stakeholders’ awareness, and the need for policies to generate incentives to enhance the practice of environmental disclosure and climate change mitigation, as a corporate social responsibility, as proposed by legitimacy and stakeholders’ theories. The application at the industrial level propose that corporate real estate managers should acknowledge the growing quest by stakeholders for concerted effort by the industry toward the reduction of the environmental impact associated to the industry. There is also need for the sector to seek to meet both regional and global best practices with respect to environmental disclosure in other to remain competitive and attract institutional investor to the market.

Keywords:  Environmental disclosure, Property sector, Legitimacy theory, Stakeholders theory. 

09 – THE LEVEL OF ENVIRONMENTAL DISCLOSURE IN LISTED PROPERTY SECTOR COMPANIES

 

-By ATILOLA, Moses Idowu, KAMALAHASAN, Achu, BUJANG, Ariffian, and KAMARUDIN, Norhaya

Abstract

Rating valuation as an important aspect of tax administration is based on the principle of equality and fairness. Appeal procedures give taxpayers opportunities to determine and challenge the reasonableness of rating valuations. When the objection and appeal procedure is stringent, taxpayer may disregard the legal means for objection and seek for alternatives that may be detrimental to the intent and purpose of rating. Following this argument, this paper seeks to evaluate the objection and appeal procedure of rating assessment in the United Kingdom, Nigeria and Malaysia. In order to achieve this, aim an evaluation model of level of satisfaction was utilised based on the five decision rules. The result of the study shows that, there are many grounds for objection in the UK and Malaysia, whereas there is only one ground in Nigeria. ‘Informal appeal’ is the origin of objection in the UK and Malaysia but this is lacking in Nigerian rating practice. The Malaysian appeal is shouldered by the conventional Court while in Nigeria and the UK it is shouldered by the Assessment Tribunal and Special Courts; the practice in Nigeria and Malaysia has stringent conditions that may affect taxpayers’ willingness to pursue the recognised means for objection. With regards to satisfaction level, the model reveals 1, 0.8 and 0.4 for the UK, Malaysia and Nigeria respectively. The study concludes that objection procedure practice in Malaysia and Nigeria needs improvement on the aspect of requirements for valid appeals. In addition, the ground for objection in Nigeria needs to be broadened.

Keywords:  Appeal, Court, Rateable value, Tribunal, Valuation List

10 – EVALUATION OF RATING VALUATION APPEAL PROCEDURE

 

-By Mohammud Nazirul Mohd Noh and Maimunah Sapri

Abstract

 Physical environment of neighbourhood such as vehicle parking, bus stops and playgrounds are some of the elements that need to be addressed in affecting ensure that the safety and security of neighbourhood community. However, if these physical facilities are not maintained, it is able to transform into “risky facilities”. The objective of this study was emphasized to identify for elements in the physical environment that can influence criminal conduct alleged in the neighbourhood based on the perspective of the local neighbourhood. There were 100 of questionnaires were distributed to respondents in local residents. Data were obtained from some respondents who were in the neighbourhood of selected case studies. Results of data analysis were based on 11 factors that include two key elements which consist of physical and management elements. These 11 elements are as roads, sidewalks, signage, lighting, building and facility conditions, building design, maintenance, janitorial, regulation or policy enforcement, security controls, and communication with management. Through this analysis, the lighting became the main focus of the respondents and is considered a key element in influencing crime in neighbourhoods other than the signs. Lot parking facilities are most at risk in the neighbourhood because of the wideness and difficult to manage.

Keywords: Facilities Management, Physical Environment, Neighbourhood, Community, Risk

11 – NEIGHBOURHOOD PERCEPTION OF PHYSICAL ENVIRONMENTAL ELEMENTS THAT INFLUENCE CRIME BEHAVIOUR

 

-By Oti Amankwah, Choong Weng Wai, Abdul Hakim Mohammed and Maizan Baba

Abstract

The maintenance management of healthcare facilities is a multifaceted field of facilities management due mainly to the complexity of the building designs and service systems and shortage of maintenance budget. Most public hospitals in Ghana are faced with the challenges of inadequate maintenance budget, bad management, staff supervision challenges, inadequate technical know-how in equipment usage and poor maintenance culture. Thus it is essential to research on how maintenance management service quality of public hospitals in Ghana impact on user satisfaction. This paper seeks to review detailed service quality and customer satisfaction concepts. Secondly, the study outlines and discusses the different concepts of buildability, sustainability, and maintainability in the lifecycle of a healthcare facility. Up to date literature review was based on articles from 2000 to 2015. The paper brings together research on service quality assessment and customer satisfaction assessment applied within healthcare maintenance management. Particularly, the healthcare industry can improve the service quality and ultimately customer/user satisfaction through the concept/indicators of buildability, sustainability and maintainability. With the application of SERVQUAL and good management procedure such as the PLAN-DO-CHECK-ACT model, authors propose a concept to optimise these, from the building design stage through the construction to the operation and maintenance of healthcare facilities. This paper can be used by stakeholders of public healthcare facilities: government, hospital management, and users as an important reference on sustainable maintenance management to achieve better service quality and in so doing increase customer/user satisfaction.

Keywords:  Customer Satisfaction, Service Quality, Maintenance Management; Sustainability; Maintainability, Buildability

12 – A REVIEW OF SUSTAINABLE MAINTENANCE MANAGEMENT OF PUBLIC HEALTHCARE FACILITIES IN DEVELOPING COUNTRIES THE CASE OF GHANA

 

-By Nasim Aghili and Abdul Hakim Mohammed

Abstract

Green building practices provide a high level of supporting environment, increasing efficiency in the usage of various energy resources such as electricity, water, and environmental friendly materials, and decreasing negative impacts on human health and environment during their life cycle. This paper carried out to fill the gap about management key practices in green building management. The objective of paper is enhancement green building performance through recognizing the management key practices. This paper based on previous study identify five management key practices such sustainable procurement, sustainable operation, resource management, repair and maintenance management and environmental health in green building management for improving green building performance as a whole.

Keywords:  Management, Practices, Building Performance

13 – MANAGEMENT KEY PRACTICES FOR IMPROVING GREEN BUILDING PERFORMANCE

 

ACCEPTANCE OF WASTE SEPARATION AT SOURCE PRACTICE AMONG HOUSEHOLDS: A LITERATURE REVIEW

-By Fitriyah Razali, Choong Weng Wai, Dzurllkanian@Zulkarnain Daud and Chin Hon Choong

Abstract

The successful of waste separation at source depends on the willingness and good practices among the residents. The participation rate of waste separation in Malaysia is low and there is an urgency to foster waste separation practice among the household. Considering that, the Separation at Source Initiative (SSI) under Solid Waste and Public Cleansing Management Act 2007 (Act 672), effective on September 2015 mandatory require the resident to separate waste in their dwelling, but the SSI still received resistance from the households. A careful investigation of the factors and barriers that motivate and prohibit the waste separation practice at source should be conducted, this required further investigation on multiple acceptance dimensions, including: socio-political, community, market, and technology. This paper explains the rationale to investigate the multiple acceptance dimensions for fostering waste separation practice among the household.

Keywords: Facilities Management, Waste Separation, Awareness, Social Acceptance, Education

14 – ACCEPTANCE OF WASTE SEPARATION AT SOURCE PRACTICE AMONG HOUSEHOLDS A LITERATURE REVIEW

 

-By Bujang A. A., Shapee N. A. S., Abu Zarin, H. and Ismail. A.

Abstract

Affordability of housing is linked to the health and well-being of individuals and families. Housing affordability stress is a situation where a household who wants to own a house spend more than 30 percent of his monthly income for housing cost which might affect the living expenditure. Hence, this study is carried out is to define what is housing affordable stress in Malaysia and to explore the factors influencing the housing affordability stress among the bumiputera from the lower and middle income group in Johor Bahru. Data and information are collected through literature review and questionnaires. The data and information then have been analyzed by using descriptive analysis, Cross Tabulation and Likert Scale by using SPSS software. The findings shows that most of the bumiputera cannot afford to buy a house even though they earned a monthly income for at least RM5,000. However for those who had already owned a house only afford to buy a house at an average price between RM200,001 to RM250,000 only. The factors influencing the housing affordability stress are income pattern, household type and size, region or district, age, the ratio of housing costs and income, National Housing policy and life style.

Keywords: Housing affordability stress, Housing prices, Household income, Bumiputera

15 – FACTORS INFLUENCING THE HOUSING AFFORDABILITY STRESS AMONG BUMIPUTERA

 

-By Mohd Mukhlis Jaya Abdullah, Maimunah Sapri and Masitah Muhibudin

Abstract

This study aims to evaluate the contract service requirement for the service provider that reflects the facilities management performances from the perspectives of the facilities manager. The practiced document for contractor’s service requirement has been translated into a questionnaire form. The questionnaire consists of three main sections namely respondent background information, facilities management general information and contractor service requirement parameters. The service provider’s service requirement will be the main focus for the analysis. The indicator of the contract service requirement includes the legislation, control and reports. The purposive sampling was used as a sampling technique. Thirteen facilities managers from the Public Works Department of Malaysia were selected as the respondents. They are responsible for managing the government buildings in mainly in Klang Valley and Putrajaya. Overall, results from the descriptive and frequency analysis give an insight about the importance level of contract indicators in service requirement from the facilities manager’s perspectives. This study is limited to evaluate the contract service requirement in facilities performance from the perspectives of facilities managers only. Nonetheless, it is significant for the service providers too. In fact, there is other service requirements indicator to be explored for a comprehensive understanding on the service requirement, its evaluation and management purposes.

Keywords:  facilities manager, service provider, service requirement, performance management

16 – EVALUATING THE CONTRACT SERVICE REQUIREMENT FOR THE SERVICE PROVIDER PERSPECTIVES FROM THE FACILITIES MANAGERS

 

THE DEVELOPMENT OF THE KEY PERFORMANCE INDICATORS FOR SCHOOL CLASSROOM FACILITIES 

-By Nurul Syakima Mohd Yusoff, Maimunah Sapri, Ibrahim Sipan and Masitah Muhibudin

Abstract

The performance of facilities in the school environment has an impact on student learning performance. Towards improving the facilities performance, the identification of the relevant indicators for school facilities is necessary. This paper presents the initial study of identifying the Key Performance Indicators (KPIs) for the school classroom facilities. It begins with the identification of the key performance indicators (KPIs) for classroom facilities based on general indicators gathered from the literature review. Apart of discussion on questionnaire development, it discusses the results of the survey. Respondents’ backgrounds, the descriptive analysis results regarding the students’ opinions of classroom facilities, and the KPI ranking for classroom facilities are among the main focus of the analysis. These KPIs could be used as a guide to improve the FM performance in schools. An improvement in FM performance will, in turn, enhance the performance of the facilities provided.

Keywordsfacilities, school classroom, key performance indicators, student performance

17 – THE DEVELOPMENT OF THE KEY PERFORMANCE INDICATORS FOR SCHOOL CLASSROOM FACILITIES

 

-By Norhaslina Jumadi, Noorsidi Aizuddin Mat Noor, Ahmad Ariffian Bujang and Andrea Blake

Abstracts

National Policy for elderly had encouraged the elderly to remain active, productive and create opportunities for them to live independently as Malaysia will reach ageing population status by year 2030. Senior Cohousing can be considered as a part of retirement home concept that can improve quality of life and encourages independent living. The objective of this study is to isolate the basic concept of Cohousing and to identify how Malaysian ageing can be fit with cohousing. A preliminary study was conducted among people that are in the age of 50 and over to seek their opinion regarding to current neighbourhood, cohousing potentialities and the acceptable of 6th cohousing elements to their neighbourhood. Data analysed through cross tabulation, likert scale and frequency analyses. The finding showed that the respondent had great potentialities to live in cohousing as they suit with the criterion. Hence, the elements of Neighbourhood Design which are safety and security; privacy; and the layout of the neighbourhood is the most important acceptable elements in developing cohousing. Overall this finding will be useful to identify senior cohousing mechanism especially in determining the suitable activities and to propose the other core elements of cohousing development suit with Malaysian active ageing community.

Keywords:  Cohousing; Malaysian ageing; active ageing; senior cohousing

18 – FITTINGS MALAYSIAN ACTIVE AGEING TO SENIOR COHOUSING A PRELIMINARY STUDY

 

-By Rohaya Abdul Jalil, Low Sheau-Ting, Izran Sarrazin Mohammad, Siti Zulfarina Fadzli and Tiong Chai Ping

Abstracts

Malaysian real estate investment trust (M-REITs) starts since 2006, is different in term of its properties’ holding in portfolio and this resulted a poor response from institutional investors. Thus, this study aims to examine the relationship of M-REITs properties portfolio and its financial performance. A ten year data had been employed and correlation analysis is adopted. This study reveals that property portfolio allocation in commercial mall had significant correlation relationship with M-REITs’ size of market capitalization in such property market value analysis (r: 0.94) and property holding percentage (r: 0.63). Meanwhile, allocation in industrial building also show to have significant correlation relationship with dividend and total return index (TRI). Similarly, with property portfolio allocation in hotel and resort significant correlation relationship with M-REITs’ size of market capitalization which are (r: 0.49). However, both commercial mall and industrial building had insignificant correlation relationship with M-REITs’ financial performance such as dividend per unit (DPU), dividend yield (DY) and total return index (TRI). On the other hand property portfolio allocation in industrial building showed a contradict result in which they have insignificantcorrelation relationship with M-REITs’ size of market capitalization, yet had significant correlation relationship with DPU, DY and TRI. This study reveal that the bigger portfolio allocation on commercial mall as well as hotel and resort property were unable to generate sufficient return to M-REITs, and issue on the ethical of M-REITs property acquisition warrant special attention in future. Yet, there were few insignificant correlations among property type allocation of M-REITs, in which this might indicates that potential diversification for maximize the return and minimize the risk which M-REITs could offers..

Keywords: M-REITs, correlation analysis, market capitalization, property portfolio

19 -THE RELATIONSHIP OF MALAYSIAN REITS’ PORTFOLIO AND ITS FINANCIAL PERFORMANCE

 

THE POTENTIAL OF MALAYSIAN REITS’ PROPERTY TYPE ALLOCATION

-By Rohaya Abdul Jalil, Low Sheau-Ting, Izran Sarrazin Mohammad, Siti Zulfarina Fadzli and Tiong Chai Ping

Abstracts

The aim of this study is to explore the potential of property type allocation in Malaysian real estate investment trusts (M-REITs) portfolio and examining the advantages and disadvantages of property type diversification in REITs portfolio. Employing a ten year REITs’ data traded in Bursa Malaysia (BM) from year 2006 until 2015 and used descriptive analysis, this study describe distribution of M-REITs’ financial performance of size of market capitalization (MktCap), performance of total return index (TRI), dividend per unit (DPU) and dividend yield (DY). Whereas, the portfolio allocation through property type identified as office space, commercial mall, industrial building, hotel & resort and specialized property. This study reveal that larger portion of PTCM in M-REITs property allocation that was influenced by the economic situation and M-REITs tend for being specialized property type market concentration strategy compared of being diversified property type strategy. Nevertheless the allocation of commercial mall is growing bigger throughout the period, but experienced decrease in trend of average dividend yield (ADY), puzzled and indicated that the revenue from PTCM do not performed according to the market value of the property. The PTCM in term of size and property portfolio allocation had come into dis-economics of scale, which increase of growth of firm size not in tangent with growth of average DY of M-REITs. Therefore, the quality of property being brought in the M-REITs property portfolio and the style of M-REITs advisory management upon REITs’ property acquisition requires further explanation.

Keywords:  M-REITs, property type allocation, market capitalization, total return index

20 – The Potential of Malaysian REITs’ Property Type Allocation1

 

 (in press)

-By Ahmad Ariffian Bujang, Nadia Natasha Mohd Ridzuan, Hasmah Abu Zarin, Najihah Azmi, Ishak Ismail, and Wilson Rangga Anthony Jiram

Abstracts

Housing is a basic need for everyone. The functions of housing are not only in fulfilling the needs, but also for safety and creating good environment. Government has developed and implemented various initiatives to help household own a house. There are various affordable housing programs carried out by the government such as PR1MA, first time homebuyer scheme and others. The implementation of these programs is to ease and increase housing ownership. However, the affordability problem still arises. According to REHDA, there is still increasing of unsold number of houses every year. The factors lead to this problem is the mismatch between housing affordability and affordable house. Although there are high demand for housing and increasing in affordable house supply, the problems arise because the concept of housing affordability level and affordable housing from policy maker and developer perspective is not the same. Thus, the aim of this study is to define the different between housing affordability and affordable house; to identify the factors influencing the gap between housing affordability and affordable house; and to study the relationship between housing affordability and affordable house. The main causes of this mismatch come from the Malaysia National Housing Policy itself. The policy maker needs to clarify the affordability in terms of housing and specify the middle and low income group to appeal for affordable housing. In addition, the housing policy seems to focus more on affordable house supply to fulfill housing needs rather than demand and housing affordability. From the analysis the factors influencing the gap between housing policy and affordable house, are income, housing, household expenses, marital status, housing policy and others. Thus, all of these factors which caused the mismatch of affordable housing and housing affordability need to be considered in developing a housing policy as to match the housing supply with housing demand.

Keywords: Housing Policy, Housing Affordability, Affordable House.

 

 

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