The budget 2011 was really interesting. While the budget looks very much like an election budget, there was a huge surprise in waiting. It’s none other than the Warisan Merdeka project.
A project to develop 100 storey modern skyscraper adjacent to Stadium Merdeka and Stadium Negara. The cost is RM 5 Billion and the project owner is permodalan Nasional Berhad (PNB).
The tune was familiar. It’s justified in the name of development, economic benefits, job creation for the masses, multiplier effect on the economy and contribution to the nations goal of becoming a high income nation in the long run.
I’m sure the government has done its detail analysis and realizes the importance of it, to be announcing it in this year’s budget. But as a taxpaying Malaysian citizen who has been taught to think and analyze by the same government through it education system, I feel this matter needs a bit more analysis for my own comfort.
Below are some questions that linger in my mind and the answers to it as well:
First and foremost in my mind, what is the need for this 100 storey tower?The tower will obviously add a lot of office space in KL. But are we facing such a serious scarcity of office space currently that we need this 100 storey high tower. And do we have such a land scarcity like Singapore or Hong Kong that we need to build so high.
I don’t think so. The newspaper classified section lists out hundreds of ads daily for office space to let. Not to mention the banner and signs hanging from so many office towers that advertises office space to let.
Hence we do have a lot of surplus office space that can meet the current and immediate future needs of office space.
So what could be the other reason then.
Could it be that we are trying to create an icon for Malaysia?It could be if we build this before KLCC. But now KLCC has done the job successfully. In fact KLCC achievements were far better compared to this proposed Warisan Merdeka. KLCC was the world’s tallest building when it was completed in 1998. In fact it still remains as the world’s tallest twin tower till today. Architecturally stunning and created a wave in the international scene and succeeded in being the country’s icon. Not only that, it is also a tourist draw and located in a business district that is well suited for an iconic tower like it.
Warisan Merdeka on the other hand, when completed is not going to set any new world record. The proposed location is questionable. Not to mention there is no pressing need for it as well and it’s also doubtful whether it will succeed in replacing KLCC as Malaysia’s icon.
Even if it does, I don’t think we need a new icon at a cost of RM 5 Billion. It’s simply not worth it.
Could it be to create jobs for Malaysians and boost up our economy?Well, I’m sure projects like this could create a lot of jobs. The biggest number of jobs would be for laborers who can work on this project for few years. But most of the construction laborers in our country are foreigners from Indonesia, Bangladesh and other countries. So not only it doesn’t benefit Malaysians much, but the repatriation of salary of these foreign workers back to their home countries, actually weakens our economy as big sum of our money is leaving the country.
But wait, we are trying to create a high income nation. So the jobs for Malaysians are the high paying jobs, like the engineers, architects and others.
There is some truth to this. But if we analyze deeper, our country actually lacks a bit in terms of the required expertise to build such an ultra high rise building. That’s the reason why we got Hazama, Samsung and Kukdong from Japan and Korea to build the KLCC for us, as they are one of the leaders in this area. Not only that, a lot of other associated technology required for ultra high rise of this nature would also have to be sourced from foreign firms. Hence while we invest a big sum of money into this project, we could expect a big sum of our money to leave the country as well, which I don’t think is so good for our economy.
But let say if we do complete the Warisan Merdeka project, what good would it do. Honestly the only thing that I can think of is that it will add to the office space supply in the KL City and be a new icon for the country as the tallest structure in the country. I don’t think there is any good in that and I don’t view it as a symbol of development either. But I can foresee that the tower will definitely add to the serious traffic jams that already exist in that proposed area.
On contrast, imagine if we spend this RM 5 Bilion to develop multiple office towers and associated infrastructure in terms of new residential neighborhoods, schools, hospitals and better transport system like highways, we could actually create new city on the outskirt of KL. This new city would not only rejuvenate the real estate value and development of its surrounding, but also contribute to reducing the high concentration and dependence of businesses and people on KL itself thus making the KL city more livable in terms of reduced and more manageable traffic as well as stabilizing the ever escalating real estate prices in KL itself, thus making KL city more sustainable in the long run.
Not to mention that the expertise required to develop this kind of new cities as well as high rise buildings between 20-40 storey high are available locally and can be executed well by our local architects and construction firms. Hence the big chunk of the money that we spend on this kind of projects will actually stay in our own country, which is good for our economy.
Furthermore the development of this kind of new cities would also entail the involvement of multiple architecture and construction firms in the country, thus contributing to better spread of the money and wealth while having a real positive rejuvenating effect on the local construction industry as well as our economy.
Why I’m bothered by this?Simply because it involves RM 5 Billion of our money. For the readers who cannot imagine how much money is this, let me give you an example. RM 5 billion is sufficient to buy more than 119,000 low cost homes priced at RM 42,000 each. That means the government can provide more than 100,000 poor families with a roof over their head if they wish to do so. Yup, thats how big the sum is.
So why are we building it?Only the god and government knows. But as a taxpaying Malaysian, I’m just not convinced and wishes the money to be better spent for the welfare of rakyat in line with the motto of our government, “Rakyat Di Dahulukan, Pencapaian Di utamakan”. God Bless Malaysia.