The Star Online: Business
The Star Online: Business |
- Star fund for tech start-ups
- Mah Sing to build more in Rawang
- First Tune Hotel in India to open next month
| Posted: 20 Apr 2013 12:33 AM PDT CHELLIAH, a 20-something recent graduate from a US university, hopes to parlay his degree in computer science and passion for e-commerce into a profitable Internet business. But lacking the funds, and without sufficient knowledge of the practical aspects such an effort would require, he will, for now, stick to fixing designer coffee at a cafe in PJ. It is budding entrepreneurs like Chelliah that The Star's new Accelerator Fund hopes to support. The fund, launched on Wednesday with RM20mil in its coffers, aims to help digital and technology-based entrepreneurs get started and ultimately take their ideas to the market. The new fund intends to provide seed capital to companies and individuals in the pre-seed and seed phase, with maximum funding of RM300,000 and RM1mil, respectively. A unique feature of the fund is the host of value-added services that come with the monetary support. Besides ringgit and sen, successful applicants gain access to The Star Media Group's plethora of resources, from branding and marketing to legal advice and media. The Star corporate services senior manager George Chan, who is overseeing the operations of the fund, points out that financing can be hard to come by for entrepreneurs, especially those who are new to the scene. "Many ideas never see the light of day because they don't have the funds. It is in this area that we hope to help young Malaysians," he tells StarBizWeek. "When we set up the fund, our intention was not only to help build the business, but also to assist and nurture the entrepreneur. There are some great technopreneurs out there who are off the grid. "We would like these people to come forward and take advantage of this opportunity. We are not concerned with whether they speak perfect English or have good presentation skills. We simply want to give them a chance, and listen to their ideas." Star Publications (M) Bhd executive deputy chairman Datuk Vincent Lee reveals that the project was born out of a challenge thrown to him by MCA president Datuk Seri Dr Chua Soi Lek. "Dr Chua suggested that such a programme would not only lend a helping hand to deserving young entrepreneurs, but also bring back talent to Malaysia," Lee says. "Moreover, we aspire to create enterprises that become global game-changers, not just jaguh kampung'". The fund also heeds the Government's transformation initiatives as spearheaded under the Economic Transformation Programme, which calls on the private sector to boost private investment in the country. The fund comprises two mechanisms: pre-seed and seed. The difference between the two funding options is the stage of development of the applicant's business. Pre-seed applicants would require funds to develop their ideas into prototypes. The seed fund applicants, meanwhile, are businesses that already have a prototype and who are ready to commercialise their products. The fund seeks to assist young Malaysians from the development of an idea into a prototype, through the proof-of-concept stage and finally to market launch. The money for this fund can be channelled to product research and development, intellectual property, legal and compliance, proof-of-concept and pre-commercialisation. Those who obtain seed-level funding may ask for up to RM1mil. They are required to complete the process of readying their products or services for market entry within a 12-month period. The fund covers the processes necessary for commercial success, namely production, distribution, marketing, sales and customer support. The Star Accelerator Fund intends to go beyond the traditional role of a financier. In exchange for financial support, The Star is looking to acquire an equity stake in the investee company. This is not an issue of management control, but rather a mentoring and support process, Chan explains, as many start-ups fail due to a lack of business and financial acumen. "It is here that we believe our most valuable help will be given. We want to be a partner in the business that we fund to enable growth and ensure sustainability and success." In terms of eligibility, the founder of the company must be Malaysian and aged 21 years and above. For the pre-seed fund, a company must be formed with a minimum issued and paid-up capital of RM2,000. On the other hand, an applicant for the seed fund must own a registered company with an issued and paid-up capital of RM10,000. The industries that qualify for assistance from the fund can be divided into two broad categories: information and communication technology (ICT) and non-ICT (see chart). Unlike most funds in the market currently, The Star Accelerator Fund is an equity fund and not based on a rebate process. "Most funds in the market operate on a grant basis, which means you spend the money first and then submit your claim for re-imbursement," Chan says. "For most start-ups, this can often be an insurmountable barrier since they may not have the initial capital outlay. Start-ups usually need two to three years to break even, and this is provided the product is good. "We work with our recipients to establish a financial plan and disburse the finances according to an agreed set of key deliverables and timeframes." Furthermore, those who succeed in obtaining the pre-seed fund can graduate to seed-level funding, Chan adds. Chan, a chartered accountant, will manage the day-to-day running of the fund together with his colleague Debbie Pozzobon, a former corporate banker who has experience as a managing director and chief financial officer. After a deal is evaluated by Chan and Pozzobon, it will be recommended to the investment committee for final approval. "We received over 50 enquiries within 24 hours of the launch. Indeed, we are already assessing our first set of applications. The response from the market has been very encouraging and we are looking forward to a future where we are part of the successful journey of young Malaysians," Chan quips. Those who attended the launch event came away impressed. Andrew Tan, director of innovation at digital agency VLT Kuala Lumpur Sdn Bhd, says: "I think it's great that The Star is taking this step to support current and would-be tech entrepreneurs. What's really exciting is that it's not just about funding but also supporting start-ups through The Star's own experiences and platforms, which is arguably more important to fledgling start-ups. "This is something that we at VLT Labs also do, helping start-ups accelerate their potential by leveraging our experience in UX, marketing and brand strategy, while connecting them with brands and partners who might elevate them further." |
| Mah Sing to build more in Rawang Posted: 20 Apr 2013 12:20 AM PDT THERE was a time when purchasing a house in Rawang would raise some eyebrows. Unless you grew up there, or have relatives there, a house in Rawang may not be on your check list. But of late, because of rising land costs and lack of large tracts of land in the Klang Valley, property developers have bought into peripheral locations of the Klang Valley. One of the locations which has received considerable attention is Rawang, about 20km north of Kuala Lumpur. Several developers have projects there currently, among which are the Low Yat, Glomac and Guocoland groups. This list is not exhaustive as they are others who are active there but these are the names that have cropped up for now. Last week, Mah Sing Group Bhd organised a press trip to view its show village. The developer has more than 380 acres in Rawang. It has divided this into two separate developments and branded them M Residence 1 and 2. The two pieces of land are about 1km from each other, accessible via Jalan Tasik Puteri. It launched M Residence 1 a few years ago and sales have been brisk, according to its deputy general manager for corporate communications Lyanna Tew. To give an idea how confident it is despite the location, the group will soon be launching phase 4 of M Residence 1 which comprises 68 units of double-storey semi-detached houses, priced from RM918,000 to RM1.2mil each. They will come in 40 ft x 85 ft units. There will be 173 double-storey super-linked units which are yet to be priced. Development on M Residence 1 will be carried out in six phases. According to Mah Sing Properties Sdn Bhd senior manager for marketing and sales Angela Chong, the first three phases of M Residence 1 are about 90% sold. The total land area of M Residence 1 is about 226 acres. The land, a former oil palm estate, was purchased in October 2011. Because of its land size, the developer will be building some commercial and retail elements into M Residence 1. These retail portions will front Jalan Tasik Puteri. While it is still developing the M Residence 1 site, the developer is preparing to launch M Residence 2. Unlike years ago when developers complete a project before moving on to the next, the Mah Sing group has undertaken quite a number of projects simultaneously. The land area for M Residence 2 is smaller, at 157 acres compared to the 226 acres in the first M Residence project, and was purchased in February 2012. The gross development value for the first phase in M Residence 2, Alpine, is approximately RM197mil for 415 units. The official launch for M Residence 2 is expected to be in the second half of this year. The company will be selling about 200 units first and the remaining 215 units in the latter part of the year. The size of these units are 20 ft x 65 ft. Generally, the sizes of double-storey housing come in 22 x 75 sizes. Some may say, it's just 2ft. Actually, that 2 ft makes a lot of difference. The indicative prices are from RM460,000 to RM870,000 a unit. According to its sales staff, prices may increase by RM20,000 a unit for the remaining 215 units when they are launched subsequently. That effectively means that in the coming months, it will be offering for sale both double-storey terraced units and semi-detached units under the M Residence brand. When the company first launched its M Residence brand, double-storey housing in M Residence 1 were priced from RM570,000. This has risen over time. In terms of absolute price, the double-storey units in leasehold M Residence 2 are priced lower. According to Mah Sing senior manager Angela Chong, prices of double-storey terraces in freehold M Residence 1 are about RM630,000, compared with M Residence 2 units of about RM460,000. These units in the subsequent development are smaller. The units on M Residence 1 are also bigger, at 22 ft x 80 ft. Besides the land status and unit size, M Residence 1 is a guarded project where units are individually titled. It is not a strata development under the Strata Title Act while M Residence 2 is a leasehold, gated and guarded strata development. External renovations can only be done with the permission of the joint management body. Strata projects come with certain encumbrances. Among one of the first guarded projects there was Kota Emerald, a new township of 1,000 acres which started about a decade ago in a joint venture by GuocoLand (M) Bhd and Hong Bee Land Sdn Bhd. This is a not a strata development but are individually-titled units. Even back in early 2000s, there was already concern about security. That was how the guarded concept in Kota Emerald, Rawang came about. Other developers who are in Rawang include Glomac group and the Low Yat group. Glomac's Rawang Saujana is a leasehold 345-acre project near Country Homes Rawang. The developer is building semi-detached units, double-storey terraced housing, bungalows and shops there. As most Malaysian families opt for double-storey houses, a comparison is reasonable. Rawang Saujana's previous phase of double-storey housing was priced at about RM500,000 a unit. It will be having a new launch next month but prices are not available yet. Low Yat's leasehold project Garden Heights is also near Mah Sing's developments. It launched double-storey houses of 18 ft x 75 ft in September 2012 priced at RM350,000 each. There are less than 10 units left of these today. The company will be launching Garden Heights 2 in June and this time it will be offering larger units of 20 ft x 75 ft at RM420,000. |
| First Tune Hotel in India to open next month Posted: 20 Apr 2013 12:19 AM PDT NEW DELHI: Tune Hotels' first Indian hotel located in Ahmedabad, Gujarat, will open on May 15, according to Business Standard. The daily rate would be between 2,000 and 2,500 rupees (RM112-RM140), but would go for 599 rupees (RM33.70) for early bookers, said the report. The no-frills hotel chain's daily rate could go as low as 180 rupees (RM10.10) during promotional periods, it added. So far, the company had hired 20 people for the 100-room hotel, and with more properties in the pipeline, it would get at least 500 more people on board, Tune Hotels' group chief executive officer Mark Lankester (pic) said. "We see high growth potential in India. We haven't even rushed into China, as we think India has a solid ground for growth," Lankester said. According to the report, Tune Hotels is investing US$30mil (RM91mil) in a 60:40 joint venture with Apodis Hotels. – Bernama |
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