Singapore Luxury Condo Dragged into Malaysian Scandal

This is an interesting article. It's one of the factors that others suspect is propping up ALL forms of properties in Singapore. Whether it is commercial, industrial, office or residential properties, Singapore is an attractive destination for the rich and "connected" to park their money. Developers in Singapore are apparently not required to conduct stringent checks on the "source of funds" according to this article. Give me your opinions.

S'pore luxury condo dragged into M'sian scandal

Feb 9, 2012 - PropertyGuru.com.sg

A report has surfaced that a Malaysian female official, accused of squandering government loans totalling RM250 million (S$100 million), acquired two high-end condo units for more than S$7 million each at Marina Bay Suites (pictured) in Singapore. In addition, Datuk Seri Shahrizat Abdul Jalil, a cabinet minister, is said to own a number of other properties in Singapore and Kuala Lumpur.

Developed by a consortium comprising Keppel Land, Hongkong Land and Cheung Kong Holdings, the 66-storey Marina Bay Suites is a 221-unit luxury development comprising three- to four-bedroom units ranging from 1,572 sq ft to 2,691 sq ft as well as three penthouses. According to Keppel Land’s website, a typical floor has only four apartments with private lift lobbies in every unit, while the penthouses each have their own swimming pool.

The report said that the two units at Marina Bay Suites were bought on 27 May 2010 for a total of S$14.29 million.

The suites were allegedly purchased under the names of her husband and son, and the loans for the units were obtained from United Overseas Bank and Maybank.

“We believe the loans were approved because they control funds of RM250 million (S$103.4 million), which is lucrative for any bank. Any bank would want RM250 million (S$103.4 million),” said PKR (People’s Justice Party), a political organisation in Malaysia.

“The bigger question is how does the family pay back the monthly repayments? Assuming a 25 year-loan... they must pay RM173,000 (S$71,557) each month for these two condos.”

When contacted on whether any background checks are done on its buyers, Keppel Land declined to comment. However, property expert Getty Goh, Director of Ascendant Assets Pte Ltd, said there is no requirement right now for Singapore developers to get background information on their clients.

“At the moment, buyers only have to declare whether they receive discounts or if they are in some way affiliated with the developer.”

“If clients have the cash to pay then developers will accept. They are a business so naturally they are concerned about profits. Even if checks are done in future, prospective buyers can register under a company name and make the purchase which would be harder to expose,” added Goh.