

As report in The Sun.
Real Estate boost for Medan and Penang
Posted on 6 April 2012 - 03:37pm
By Himanshu Bhatt and Bernard Cheah
himanshu@thesundaily.com, bernardcheah@thesundaily.com
Business relations between the regional sister cities of Medan and Penang received a welcome shot in the arm when chambers of commerce from both sides signed a memorandum of understanding (MOU) to further explore commercial opportunities recently.
In particular, members of the real estate sectors in both cities, which are separated only by the Straits of Malacca, are hoping that the MOU will help to heighten cooperation in developing much-needed new property-related economic projects.
Significantly, the MOU was signed on the sidelines of the recent Penang International Property (PIP) Expo, and witnessed by Penang Chief Minister Lim Guan Eng.
The parties – the Medan Chamber of Commerce and Industry (MCCI), and the Penang Chinese Chamber of Commerce and Industry (PCCCI) – were respectively represented by MCCI vice-chairman Rusmin Lawin and PCCCI president Tan Sri Tan Kok Ping.
Medan, which is located in Sumatra, Indonesia, and Penang have traditionally had many similarities in their development and culture, despite the former having been colonised under the Dutch and the latter under the British.
Both have similar multi-cultural populations, including sizeable Chinese Hokkien, Malay, Tamil, Punjabi and Eurasian communities.
Aside from such cultural similarities, both cities are now facing demand for further development, especially to house their booming populations. This is an area that developers on both sides are hoping to further tap on as available space, especially in Penang island, reaches saturation point.
Medan still has available land and property demand in the suburban outskirts is growing fast. Developers from Penang can contribute to meeting this demand. Many Medan folk are also increasingly looking at purchasing property in Penang, due to the various facilities and attractive lifestyle here.
Another area of cooperation is heritage restoration and redevelopment or refurbishment of existing buildings and quarters. Both cities share many identical elements, such as the traditional shop-house, in their urban architectures.
A good example of shared values in building can be seen in the uniquely identical 19th century mansions of tycoon Cheong Fatt Tze in Penang and his nephew Tjong A Fie in Medan. Both mansions, though built in different cities, are similar in design and proportions, demonstrating similar ties, both in culture and in real estate, that the two cities have.
Rusmin Lawin said the MOU would help in this regard, with both cities boosting closer ties among members of both chambers. "Penang is the most strategic place for us to build a solid network for international connections,” he added.
Rusmin, who is also the deputy secretary-general of Real Estat Indonesia and the secretary-general of the International Real Estate Federation’s (Fiabci) regional secretariat for Asia-Pacific, stressed that the sister cities shared a common platform.
Lim also welcomed the signing of the MOU. "In line with the growing significance of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) that serves three countries, the development potential of this cooperation is immense,” he said, noting the region had a consumer population base of about 70 million.
"I believe the involvement of industries from both cities and the people-to-people relations will further enhance trade amongst the people living in Medan and Penang," he added.
Organised by PIP Creation Sdn Bhd, the event was supported by the Penang state government, Penevents Sdn Bhd and Raine & Horne International, with theSun as a media partner.
Some 40 exhibitors participated in the expo. They included the government of Medan which had a special booth there to promote tourism and trade.