Malaysia, Best Location For Arab Investors, Tourists - Developer

KUALA LUMPUR: Arab property developer, Hesham El Din Fathi Mohamed has visited Malaysia more than 50 times, during which he has made comparisons with other nations across the globe.

Nothing compares to Malaysia especially when it comes to attracting investors and tourists from the Middle East, he says.

Hesham, an Egyptian said he worked in the Middle East for 15 years, and having studied the world situation, which currently is dogged by the financial meltdown, he has come to the conclusion that Malaysia is the best and right spot for investment.

"Our vision of the Gulf was that this area would definitely go down very fast. The past few days have confirmed that. By going out first, we would have a bigger chance than anybody else," said Hesham, who is a managing director of Golden Corporate Heritage Sdn Bhd, which is the developer of the proposed Arab City in Jalan Ampang.

Incepted six months ago, Golden Corporate Heritage Sdn Bhd is a joint venture between Dubai, Saudi Arabian and Malaysian partners. The company has branch offices in Dubai and Saudi Arabia with diverse interests in real estate, trading and oil and gas.

Malaysia has a special appeal to the Arab world. What has attracted Arabs to Malaysia all these years is its safe, steady and friendly environment. It has been lauded as a modern, moderate and progressive Muslim nation.

"Having studied the world market, we find Malaysia is the only good spot we can invest in. The Malaysian culture can accept any foreigner easily, has good infrastructure, is blessed with natural resources and further strengthened by stability.

"We have never heard of violence in Malaysia. In all aspects, we find Malaysia the right place to start our investment," he said.

"When we thought of coming to Malaysia, we didn't have a specific project in mind. I came to Malaysia as a tourist more than 50 times before I made the decision. After looking at the society, I decided that this is the right place to invest," said Hesham in an interview with Bernama recently at his office at Menara Ambank in Jalan Yap Kwan Seng here.

While in Kuala Lumpur, he visited the Arab Street in the Bukit Bintang. area. Malaysia has the distinction of having many such enclaves in the various cities and major towns, such as the Chinatown in Kuala Lumpur, Little India in Klang and the Portuguese Colony in Melaka. These are all tourist attractions.

"Hanging out around the Bukit Bintang area made me discover that Arabs are focusing here. But unfortunately, the place is not suitable for Arabs who come here with their families. Arabs choose Malaysia because they want to bring along their families. It is a family destination," said Hesham.

A survey conducted by the company on Arab tourists along Jalan Bukit Bintang revealed that they had problems with food and could not find a place in Kuala Lumpur which was safe for them to spend with their families.

He said that not many Arabs were willing to return for a second visit as they saw very little improvement in the tourism sector catering to their community.

Arabs, said Hesham, tend to enjoy their own cuisine and it was difficult to find a truly authentic Middle Eastern restaurant in the city.

While more than 1.2 million Arabs come to Malaysia each year to shop and spend time with their families, these are not the same group of visitors from the Middle East, he said.

Because of all these factors, including the absence of a similar enclave like Chinatown and Little India, he decided to propose the development of an Arab City in Malaysia, and when completed, it will be the first in the world.

He said after several meetings, Tourism Minister Datuk Seri Azalina Othman took only two weeks to give the company conditional approval for the project to be located in Jalan Ampang, which is in the golden triangle. It is also next to Saloma Bistro and Theatre Restaurant and the Malaysia Tourism Information Centre (Matic).

However, the company is still awaiting approval for its request for a 33-year lease on the piece of land from the Federal Land and Mines department, he said.

He said the project, sited a few hundred metres from the iconic Petronas Twin Towers, will be a retail, business and lifestyle hub with a display of rich Arab food, culture and tradition in the heart of the city.

He said the development cost of the project is estimated at RM35.4 million while operating cost is over RM150 million.

The proposed Arab City enclave, which will be equipped with state of the art security systems, will have a two-storey complex with 337 parking bays. Among the facilities are an exhibition and convention centre which will host events throughout the year, ten restaurants, two coffee houses, bakeries and a supermarket.

The bazaar area will have more than 150 shops of international and local fashion brands, a multi-purpose hall, prayer rooms, beauty salons and a theme park for families with children.

The project is expected to provide job opportunities for about 1,000 Malaysians while 200 Arabs are expected to run the business.

Citing figures from Mastercard, he said Arabs from the Gulf states spent US$1.5 billion on shopping abroad during the last summer break.

"Rather than elsewhere, we want them to spend their money here.But we need to make them feel comfortable during their stay," he said.

Following the Sept 11, 2001 attack on the United States, many Arabs have avoided that country and Europe. The situation in Lebanon, which used to be a popular tourist destination for the Middle Eastern tourists, is also not stable arising from the Israeli attacks on Gaza.

"There are no other options for the Arabs. For instance, Saudi Arabians by law cannot go to Thailand," he said.

Many Arabs make Malaysia their first choice destination each year for the long summer holiday.

Hotels in Malaysia during the Arab summer break, register a 100 percent occupancy with air frequency increased from 35 flights per week to 45 between here and the Middle East, with Arabs families usually having a month-long holidays.

"We are testing the waters here. To invest, we need an assurance and the Arab tourists who come here, want to feel that they are comfortable," Hesham said.

He also said Malaysia should tap opportunities from the credit crunch in the Gulf with more Arab investors expected to flow into the country given the attractions here.

"But greater efforts and incentives should be provided for, to create a more conducive environment for the Arabs," he added.

Analysts said early predictions that the Arab states of the Gulf would be largely protected from the international financial crisis have proved misplaced. As the turmoil spread, the Gulf has been hit by its own liquidity squeeze -- largely because foreign funds that had wrongly bet on a revaluation of local currencies pulled out suddenly once the financial crisis hit.

For him, the global crisis should not be an obstacle to doing business.

"You can't shrink and stay at home, waiting for the crisis to go away. Each country has its own crisis. What's happening in US does not have to affect India for instance, unless they are connected. I have been hearing a lot of the crisis and no one can explain why.

"We are here, we have the money. There is a project and there is a market. How is the crisis going to affect us?

"We see things as being wonderful.We see the economy as beautiful. We want to do something, at the least. Let us be more optimistic. I came to Kuala Lumpur not to leave.

"I have my home, my family here but no Malaysian passport or nationality. But maybe I have a Malaysian heart.

"I am living here with friends, family. There is a future for my kids. What is strange is, I am working for the country to be better. I am here to stay forever," Hesham said.

-- BERNAMA

Arab City Delayed By Bureaucratic Red Tape

KUALA LUMPUR: Bureaucratic red tape may force the developer of Arab City, which is designed to be a symbolic gateway connecting Malaysia to the Middle East, to move from its site in Jalan Ampang in Kuala Lumpur to Melaka, which promises a 24-hour approval for the project.

Hesham El Din Fathi Mohamed, Managing Director of Golden Corporate Heritage Sdn Bhd, said Melaka Chief Minister Datuk Seri Mohd Ali Rustam had assured him that the state would facilitate all procedures for the company to invest in the state.

"He (Ali) told me, anytime you face a problem, you can walk in my office and my house is also open for 24 hours to fix the problem," the 45-year Egyptian told Bernama in an interview at his head office in Menara Ambank in Jalan Yap Kwang Seng recently.

Incepted six months ago as a joint venture between Dubai, Saudi Arabian and Malaysian partners, the company has branch offices in Dubai and Saudi Arabia with diverse interests in real estate, trading and oil and gas business.

Drawn by Ali's investor-friendly approach, Hesham said the company planned to invest more aggressively in Melaka, with initial investments of RM350 million.

"So, any place which gives us a good environment to invest and do projects, we will go for that. It will not cost the government a single penny to have the project here. We are paying and all projects will be financed by our company. So, I wonder why you ( KL authorities) are not helping us enough," he said.

The Melaka government, he said agreed to provide the company with a piece of land on the riverside, in the heart of the city, to develop the Arab City.

"For Arab tourists, it will be a short distance from the airport and better than travelling to Penang and Langkawi which will be crowded during the peak season. We find Melaka a good place given its rich historical background. The state government really wants to help us."

Hesham said the company was still waiting for approval from the relevant land authorities for its proposed request for a 33-year lease of the land located near the Saloma Bistro and the Malaysia Tourism Centre (Matic) in Jalan Ampang.

It had earlier expected to complete the project by June this year in time for the Arab summer break.

He said after several meetings, Tourism Minister Datuk Seri Azalina Othman took only two weeks to give the company conditional approval for the project to be located in Jalan Ampang, which is at the Golden Triangle.

"If the land department has problems with that piece of land, it must inform this company to find an alternative. But you cannot leave the situation hanging while people are spending overheads.

"So, we hope that things will get a little faster. We won't run away from the bureaucracy. We will fight it. We consider Malaysia as our country. As Muslim businessmen, we want to invest in a Muslim country."

The project, sited a few hundred metres from the iconic Petronas Twin Towers, will be a retail, business and lifestyle hub with a display of rich Arab food, culture and tradition in the heart of the city.

He said development cost of the project is estimated at RM35.4 million while operating cost is over RM150 million. The proposed Arab City enclave, which is to be equipped with state of the art security systems, will have a two-storey complex with 337 parking bays.

Among the facilities are an exhibition and convention centre which will host events throughout the year, ten restaurants, two coffee houses, bakeries and a supermarket.

The bazaar area will have more than 150 shops of international and local fashion brands, a multipurpose hall, prayer rooms, beauty salons and a theme park for families with children.

"The Arab city in Jalan Ampang will not just boost tourism but will also be a dynamic hub for attracting investments."

The project is expected to provide job opportunities for about 1,000 Malaysians while 200 Arabs are expected to run the business.

Hesham said the company expected revenue of RM8.8 million annually from the Arab City in Jalan Ampang.

With no approvals in sight from the authorities here, Hesham said the company had no choice but to start the Melaka project ahead of its earlier plan to have the Arab City in Kuala Lumpur.

"Within seven days from now, I will give my proposal for an Arab City in Melaka to the state government. Hopefully, I can start my project in Melaka next month.

"As for KL, I don't know who I am talking to and who is talking to who. These are all land matters. We are ready. Our people are ready to start on the construction. Our media campaign is also ready.

"Everything is ready. We had hoped to catch the Arab tourists during the Arab summer season in May or June. What's going on now is, if all approvals are not received by end of this month, and there is no way to catch them (Arabs) in this season, I would have to take all my attractions (Arab City) to Melaka."

Hesham said more than 1.2 million Arabs come to Malaysia each year to shop and spend time with their families because of a strong Islamic presence in the country.

The company has been in a limbo for six months, with overheads and other expenditure rising. He said todate, RM6 million, including RM3 million for overhead costs, have been spent with no results.

"We are willing to spend more, willing to be part of the society and to help bring business from the Middle East to Malaysia. But just open the door for us." --BERNAMA

The Gaza Massacre in Perspective

By Chandra Muzaffar

HONEST, accurate media presentation of context is vital for an in-depth understanding of conflict. In the case of the ongoing Israeli massacre of Palestinians in Gaza, the context has been distorted by much of the media. The impression given is that Israel had no choice but to retaliate against a constant barrage of rocket attacks launched by Hamas after the latter decided to end the Hamas-Israel truce on Dec 19.

While rocket attacks targeting civilians in the southern part of Israel are wrong from the point of view of international law, the media has failed to tell the public the whole truth about why Hamas ended the truce and how Israel is largely responsible for the underlying conflict between Israel and the Palestinians and other Arabs. There are at least five dimensions to the larger context shaping the conflict that have not been highlighted in the media.

One, even after the so-called Israeli "withdrawal" from Gaza in August 2005, the Israeli army has conducted numerous raids and air strikes in Gaza in the name of fighting "terrorism" which have killed hundreds of civilians including women and children. These assaults intensified after Hamas captured the Palestinian Legislative Council in a free and fair election in January 2006. When Hamas ousted its rival Fatah from Gaza in June 2007, Israel went all out to destroy Hamas through military and non-military means.

Two, in spite of Israeli attacks, Hamas, a few violations notwithstanding, observed its June 2008 truce with Israel. Not a single Israeli was killed by Hamas rocket fire during the six-month period of the truce.

The Hamas leadership even proposed a 10-year truce to Israel in April 2008. There was no response from Israel. It was because of continuous Israeli military strikes, the closure of border crossings and a suffocating blockade of Gaza, imposed by Israel, that Hamas was forced to end the truce on Dec 19.

Three, in juxtaposing Hamas rockets with the Israeli arsenal, the media seldom mentions the tremendous asymmetry in military power between the two sides. What are Hamas's homemade rockets compared with the wide range of sophisticated lethal weaponry at the command of the world's fourth most powerful army? The death toll from the present assault tells the whole story: 375 Palestinians to five Israelis as of Dec 30 after four days of air bombardment.

Four, to grasp the significance of this asymmetry one has to place it in the context of the Israeli blockade of Gaza that began soon after Hamas won the 2006 election. By punishing the people of Gaza for voting for Hamas through the imposition of a blockade that has increased poverty and destitution and denies life-saving drugs to the critically ill, Israel has made the victims of its cruel and callous siege even angrier and more desperate. The media has made no attempt to link Hamas's rocket attacks to the siege.

Five, neither has the media explained to the people that at the root of this longstanding conflict that goes back to the beginning of the 20th century is the occupation and annexation of Palestine and the oppression of the Palestinians.

Within a year of the unjust partition of the land in 1948, 78 per cent of Palestine was in the hands of the Zionists. Gaza is part of the 22 per cent that was annexed in 1967. Since 1948, Israel, argues Israeli historian Illan Pappe, has embarked upon a policy of "ethnic cleansing" that seeks to eliminate the indigenous Palestinians from their land. None of these facts and opinions is given any ventilation in the mainstream international media.

It is not difficult to understand why this is so. Zionist influence over the US-Europe controlled international media is enormous. In the US, control over the media is part of what the American sociologist James Petras describes as the "Zionist power configuration" (ZPC) which extends to the principal arteries of the economy, political institutions and the intellectual and cultural life of the nation.

This is perhaps a propitious moment to challenge the ZPC. The US economy is facing its severest crisis ever which must impact adversely upon Zionist power both directly and indirectly. With its inevitable economic decline, US global hegemony which has been a critical factor in sustaining and perpetuating Israel's military dominance of the Middle East is also coming to an end. New patterns of global power are in the offing.

At a time like this, it is important that Americans themselves realise that blind, uncritical US support and protection for Israel is damaging to US interests.

It is significant that no less a statesman than George Washington had warned the American nation in his farewell address that "passionate attachment of one nation for another produces a variety of evils... facilitating the illusion of an imaginary common interest... betrays the former into a participation in the quarrels and wars of the latter... It leads also to concessions to the favourite nation of privileges denied to others..."

In the last few years, some Americans from the establishment have begun to see this. Jimmy Carter would be a case in point. Academics such as John Mearsheimer and Stephen Walt have also criticised the incestuous relationship between Zionist lobbies and the US government. More individuals and groups should be encouraged to oppose the subordination of the US to Israeli interests in the Middle East.

The Palestinians and other Arabs who have to contend with Zionist power should also develop more effective strategies to pursue their struggle for justice. At this juncture many of them oscillate between violence and rhetoric. What is needed is strategic thinking and planning which will produce new forms of challenge and resistance to Zionist dominance. For instance, those who try to break Israel's Gaza blockade by transporting food and medicines through ships are not only providing much needed assistance but are also raising public consciousness about the inhumanity of the Israeli regime. Two women have been at the forefront of such initiatives: the Nobel laureate Mairead Maguire and former US congresswoman Cynthia McKinney.

Such initiatives, it is hoped, will accelerate the demise of Zionist power and US hegemony and create the conditions for the liberation of the Palestinians and other oppressed peoples.

Dr Chandra Muzaffar is Professor of Global Studies at Universiti Sains Malaysia and president of the International Movement for a Just World (JUST). In 2002, he was a member of the Internet World Court on Israel's War of Extermination Against Palestine.