One of the most controversial project announced in Budget 2011, Warisan Merdeka claim the top spot. Dubbed as Malaysia's tallest building with 100-storey tall, the 10 years project will kick-start next year. However, many quarters lamented the project as lavish, unnecessary, and would worsen the famous KL city traffic.
In respond to this, PNB's group chief executive Tan Sri Hamad Kama Piah hold a press conference to address the issue. Among the key phrases taken are:
"We are not taking government's money (for this project)"
"PNB had the capability to finance the project through internally generated funds"
"PNB existing head quarter will be 30 years old when the project is completed"
Show me the $$$...
Yes, I believe PNB would not use government's money for this project. Anyway, what does it meant by internally generated funds? As we know, PNB managed a range of Amanah Funds in the country.
Yes, I believe PNB would not use our Amanah Saham Funds' money for this project. The internally generated funds is mainly coming from the returns generated through investments in a portfolio of listed companies, such as Sime Darby. Actually, who gave money to PNB to invests? Is this called "internal generated funds"?
Meanwhile, there is fact that KL office space is over-supply currently, and projected it will precede for another 6 years. Current take-up rate at KL city center is only 80%. Although it will take 10 years to complete, the huge building means great office space will be made available by then. Could PNB find the tenants by then?
Yes, PNB will make the new tower as its new head quarter, and for its investee companies too. But, can it be enough for 100% occupancy? Definitely NOT enough. So, PNB have to attract other tenants, which is a problem to another problem - traffic congestion.
Just imagine, 10,000 people with 2,500 cars coming out from the car park!!! How are you going to attract tenants? If no tenants, PNB would face losses (I hope not our Amanah Saham) then.
Undoubtedly, I would like to see a successful big project taking shape. But, due considerations must be made to such multi-billion project. Can we build it at Putrajaya instead?