The Medina Report Final

THE MEDINA – URBAN ISLAMIC DEVELOPMENT

A BUSINESS PROPOSAL BY

CALIPH HOLDINGS BERHAD

CALIPH HOLDINGS BERHAD 1

TABLE OF CONTENT TABLE OF CONTENT ................................................................................................................................................... 1

LIST OF TABLES........................................................................................................................................................... 3

LIST OF FIGURES ......................................................................................................................................................... 3

1.0 EXECUTIVE SUMMARY ........................................................................................................................................ 4

2.0 PROJECT BRIEF ..................................................................................................................................................... 8

2.1 INTRODUCTION ............................................................................................................................................... 8

2.2 SUMMARY ....................................................................................................................................................... 8

3.0 COMPANY PROFILE .............................................................................................................................................. 9

3.1 BACKGROUND ................................................................................................................................................. 9

3.1.1 OUR VISION ............................................................................................................................................... 9

3.1.2 OUR MISSION ............................................................................................................................................ 9

3.1.3 OUR VALUES .............................................................................................................................................. 9

3.2 MILESTONES .................................................................................................................................................... 9

3.3 AWARDS & ACHIVEMENTS ............................................................................................................................ 10

3.4 BRANDS & LIST OF PROJECTS ........................................................................................................................ 10

4.0 ECONOMIC ANALYSIS ............................................................................................ Error! Bookmark not defined.

4.1 GENERAL ECONOMIC OVERVIEW OF KUALA LUMPUR .................................... Error! Bookmark not defined.

4.1.1 DEMOGRAPHIC OF KUALA LUMPUR ........................................................... Error! Bookmark not defined.

4.2 ECONOMIC OVERVIEW OF SETAPAK ................................................................ Error! Bookmark not defined.

4.3 REVIEW OF KUALA LUMPUR STRUCTURE PLAN 2020 ...................................... Error! Bookmark not defined.

4.4 EDUCATION IN MALAYSIA ............................................................................................................................. 14

4.5 ISLAMIC EDUCATION IN MALAYSIA .............................................................................................................. 15

4.6 ISLAMIC BUSINESS & SERVICES ..................................................................................................................... 16

4.7 EXPATRIATES IN MALAYSIA........................................................................................................................... 16

4.7.1 STATISTICS OF EXPATRIATES IN MALAYSIA ............................................................................................. 17

4.8 ECONOMIC JUSTIFICATION ........................................................................................................................... 17

4.8.1 DEMAND OF MODERN TAHFIZ SCHOOL ................................................................................................. 17

4.8.2 DEMAND FOR BUSINESS CENTRE ............................................................................................................ 17

4.8.3 DEMAND FOR A MOSQUE ....................................................................................................................... 18

5.0 MARKET ANALYSIS ............................................................................................................................................ 19

5.0 MARKET ANALYSIS ........................................................................................................................................ 19

5.1 MARKET PRICE ANALYSIS .............................................................................................................................. 19

5.1.1 Modern High End Education Centre ....................................................................................................... 20

5.1.2 Business Centre ....................................................................................................................................... 20

5.1.3 Convention Hall ....................................................................................................................................... 21

6.0 SITE ANALYSIS .................................................................................................................................................... 26

6.1 THE SETAPAK AREA ................................................................................................................................. 26

6.2 THE SUBJECT SITE’S ANALYSIS................................................................................................................. 26

6.3 GEOGRAPHICAL AND DEMOGRAPHICAL ASPECT ................................................................................... 27

6.3.1 Wind Direction and Sun Orientation ................................................................................................ 27

6.3.2 Climate Aspect (Based on Kuala Lumpur case study) ...................................................................... 27

6.3.3 Topographical Aspect ....................................................................................................................... 27

6.4 SWOT ANALYSIS ...................................................................................................................................... 28

6.5 SUMMARY ............................................................................................................................................... 28

7.0 DESIGN CONSIDERATIONS AND DEVELOPMENT .............................................................................................. 30

7.1 INTRODUCTION ............................................................................................................................................. 30

7.2 PROPOSED PROJECT SITE .............................................................................................................................. 30

7.3 DESIGN CONSIDERATIONS ............................................................................................................................ 30

7.3.1 LANDSCAPING ......................................................................................................................................... 30

7.3.2 Flexible Spaces ........................................................................................................................................ 30

7.3.3 Protective ................................................................................................................................................ 30

7.3.4 Open Spaces ............................................................................................................................................ 31

7.3.5 Administrative Office .............................................................................................................................. 31

7.4 DESIGN DEVELOPMENT ........................................................................................................................... 31

7.4.1 The Concept ..................................................................................................................................... 31

7.4.2 Precedent Study ............................................................................................................................... 31

7.4.3 The Master Plan ............................................................................................................................... 32

7.5 DESIGN GUIDELINES AND STANDARD .......................................................................................................... 34

7.6 SUMMARY ..................................................................................................................................................... 34

8.0 CONSTRUCTION & PROJECT PLANNING ........................................................................................................... 35

8.1 CONSTRUCTION (SPECIAL FEATURES) ..................................................................................................... 35

8.1.1 Industrialized Building System (IBS) ................................................................................................. 35

8.1.1.1 Column ............................................................................................................................................. 35

8.1.1.2 Beam ................................................................................................................................................ 36





8.1.1.3 Wall .................................................................................................................................................. 36

8.1.2 Green Building Technology .............................................................................................................. 37

8.2 Overall Project Scheduling ...................................................................................................................... 41

8.2.1 Introduction ..................................................................................................................................... 41

8.2.2 Assumption for Development .......................................................................................................... 41

8.2.3 Overall Work Program ...................................................................................................................... 42

8.2.4 Summary from Work Program ......................................................................................................... 43

9.0 PROCUREMENT METHOD .................................................................................................................................. 44

9.1 INTRODUCTION ............................................................................................................................................. 44

9.2 SELECTION OF PROCUREMENT METHOD ..................................................................................................... 44

9.3 PARTICIPANTS IN BOT PROJECTS .................................................................................................................. 44

9.4 DELIVERY DUTIES AND RESPONSIBILITIES .................................................................................................... 45

9.5 COMMERCIAL TERMS .................................................................................................................................... 45

9.6 BENEFITS OF BOT ........................................................................................................................................... 45

9.7 SUMMARY ..................................................................................................................................................... 46

10.0 FINANCIAL ANALYSIS ....................................................................................................................................... 47

10.1 KEY ASSUMPTIONS OF THE PROPOSED DEVELOPMENT ............................................................................ 47

10.2 THE DEVELOPMENT ................................................................................................................................. 47

10.3 ESTIMATED COST OF DEVELOPMENT ......................................................................................................... 48

10.3.1 Gross Development Cost ....................................................................................................................... 48

10.4 DISCOUNTED CASH FLOW APPROACH ........................................................................................................ 49

10.5 RESIDUAL APPROACH .................................................................................................................................. 49

10.6 PROFIT SHARING ......................................................................................................................................... 49

10.7 SUMMARY ................................................................................................................................................... 50

11.0 PROJECT IMPLEMENTATION STRATEGY ......................................................................................................... 51

11.1 TIME ............................................................................................................................................................. 51

11.2 QUALITY ....................................................................................................................................................... 51

11.3 COST ............................................................................................................................................................. 51

11.4 LABOUR ........................................................................................................................................................ 52

11.5 MACHINERY ................................................................................................................................................. 52

11.6 Materials ...................................................................................................................................................... 52

11.7 Conclusion .................................................................................................................................................... 52

12.0 CONCLUSION ................................................................................................................................................... 53

13.0 LIMITATIONS OF STUDY & DISCLAIMER ......................................................................................................... 54





LIST OF TABLES

Table 3.1 Company Milestones

Table 4.1 Population in Kuala Lumpur according to ethnicity

Table 4.2 Income share for Bumiputera in KL

Table 4.3 Income share for KL population

Table 4.4 Education in Malaysia

Table 4.5 List of available Tahfiz school in Malaysia

Table 4.6 Statistic of expatriates in Malaysia

Table 5.1: Current supply & competitor analysis – Modern High End Education Centre

Table 5.2: Current supply & competitor analysis – Business centre

Table 5.3: Current supply & competitor analysis – Convention hall

Table 5.4: Current supply & competitor analysis – Hostel

Table 5.5: The proposal of income for the Medina

Table 6.1 Climate Aspect

Table 7.1 Precedent Study

Table 7.2 Development Component

Table 10.1 Assumptions

Table 10.2 Estimated prices and fees

Table 10.3: Profit Sharing

Table 10.4: Overall Summary of Proposed Development

LIST OF FIGURES

Figure 4.1 Population in WP Kuala Lumpur, 2013

Figure 4.2 Population in Setapak, 2013

Figure 4.3: Development Strategy, Wangsa Maju – Maluri

Figure 5.1: Mapping of modern high end education centre surrounding the Medina

Figure 6.1 Subject site

Figure 6.2 Topographical Aspect

Figure 6.3 SWOT Analysis

Figure 6.4 Subject Location

Figure 6.5 Potential Neighbourhood

Figure 6.6 Accessibility

Figure 7.1: Mushrabiya screen as the building envelope

Figure 7.2: Courtyard in modern architetcure

Figure 7.3: Courtyard in Islamic architecture

Figure 7.1: Bank Muscat Headquarters Building

Figure 7.5 Proposed Master Plan

Figure 9.1 Participants in BOT





1.0 EXECUTIVE SUMMARY

1.1 MOHD RIDZUAN AZMAN

Matrix No: 2012607358

The Medina is a unique development containing a modern Tahfiz school integrated with business

centre located in the vicinity of Setapak, Kuala Lumpur. Proposal development carried out Caliph

Holdings Berhad which is one of Malaysia’s leading company major in business activities encompass

construction, property development, infrastructure concessions. Located in strategic location, easy

accessible and surrounded by developed and good facilities neighborhood is bring up The Medina is

new iconic Islamic development.

Adopting the idea and inspiration from Muslim greatest city; Madinah Al-Munawwarah with the role of

mosque as the attraction, potentially branding The Medina as one of Islamic development reference

for the future.

The Medina develop with various special features like urban Islamic architecture touch, green building

technology obligation, industrial building system (IBS) and fulfilled to the social obligation and

economic of neighborhood.

The Medina is contractually develop through build-operate-transfer (BOT) procurement form that the

best contractual approach. MICPM will joint venturewith Caliph Holdings and that MICPM act as

financier to this development, while Caliph Holdings lead the development through providing the

design team, design and getting approval, construction supervision and also undertake the concession

period of 30 years. The Medina is going to be develop on the Foundation (Al-Bukhari) land as the

principal at no cost. Upon the expiring of concession period, the development shall be fully owned by

the Foundation (Al-Bukhari) as the principal and recognizes the need of said development.

The development of The Medina supported by several studies and analysis inclusive development

compliance, site, market, economic and financial module to justify it feasibility and marketability. As

the proposal come out, it conclude that The Medina is expected to have a high success rate and bring

benefits to MICPM and other stakeholders. The proposal profit sharing between MICPM and Caliph

Holdings is 40% and 60%.

It is recommended to MICPM in considering The Medina proposal by Caliph Holdings that definitely

achieved the feasibility, marketability, best profits and benefits in term of profit maximization that any

other development hardly achieved in certain area. The Medina will remain as the iconic and

prestigious product of MICPM and Caliph Holdings portfolio. It is a pleasure to Caliph Holdings on this

proposal opportunity and it is desire to develop The Medina as it is a path of the contribution to the

Islamic brilliance.

As relevant to MICPM requirement, this proposal is to identify and understand the purpose of the

study inclusive looking at analysis to site, economic, market, design, development obligation, financial

module exercise in justify the feasibility and marketability of said development providing adopting all

core values during the proposal been carried out.

1.2SYAZWAN MUHAIMIN MOHD RASDI

Matrix No: 2012895276

The Medina is a development proposal incepted from an in-depth study with regards to the MICPM

requirements, economic and market analysis, site, design and construction consideration as well as

contractual and financial feasibility studies carried out by our team members throughout the semester

our studying ISP 1.

The proposal satisfies the core business objective which is to yield satisfactory return on investment for

both parties, MICPM and Us, Caliph Holdings. The designated profit sharing portrays ‘win-win’ situation

in the join-venture.

For every new proposed development, a thorough understanding of the demand and supply is very

vital in determining the best business proposal that suits a particular project site. As for this proposal,

we had earlier searched for the most suitable project site that will in future become another welcome





addition to the country in a way that it is unique in nature, adopts new technology in construction and

architecture and not forgetting the social obligation.

Having identified all that, we therefore proposed a land at Mukim Setapak sized 7.25acre for the

development. The project is later expected to colour the KL skyline and become an iconic development

in Malaysia.

Through economic and market feasibility study, we found that there is demand for an urban Islamic

development with main emphasis on modern Islamic education and business hub. That is due to the

high intensity of Muslim population in the proposed project site and in KL in general. The study listed

that the available high-end educations offered at the moment are only of British or American base.

Noticing the arising awareness among our people on the significant of Islamic base education, we thus

propose a modern Tahfiz school as the main component of The Medina. Complimenting it are a

business centre and a mosque that will respectively contribute for the profitability and social aspect of

the development.

Apart from targeting the local, the project also aims to get participation from Muslim expatriates. The

study stipulates that the current number of Muslim expatriates in Malaysia is very high and this justifies

the demand study. Apart from that, the offering of the business centre is very interesting as it helps the

economic improvement of the surrounding Muslim community.

To keep up and be in line with the surrounding development in Kuala Lumpur, The Medina has to be

given a very outstanding face. Choosing urban Islamic architecture as the design concept, The Medina

is then coloured with modern architecture touch which integrated with signature of Islamic

architecture such as ‘court yard’, Arabic calligraphy, dome and etc. Not only that, every element of the

development is specially designed according to its function. For example, the gazebo surrounding the

made pond which is meant for memorizing the Quran is designed to be sound proof with the help of

water element in enhancing the memorizing process.

Besides that, the current demand of having new technology incorporated in new developments has

also caused The Medina to integrate the green technology and industrialized building system (IBS) in it.

As it is essential nowadays to have a sustainable development, we proposed that The Medina will

obtain ‘certified’ index classification for the Green Building Index (GBI).

For the contractual arrangement, as MICPM is providing the financing, Caliph Holdings will drive the

whole project development and manage the MICPM investment (BUILD, OPERATE) inclusive of

providing the design team, construction supervision and operate a facility stated in the concession

contract. Through this arrangement, Caliph Holdings is responsible for design, construction supervision

and 30 years operation services.We will also retain the operating revenue risk and anysurplus

operating revenue.

Ultimately, it is very crucial to assess whether or not the project will give the expected profit. Here, the

detail financial analysis comprising the cash flow analysis, development cost and return on investment

are required.

The development of this business proposal has taken a very long journey and demanded all of our

commitments from day one. It is a progressive process as we learn through classes provided as well as

vide each and every one of our teammates. The sharing of knowledge and the struggles in making sure

that every component of this business proposal is realised are of many indirect learning experience

gained.

From this course, we learnt that a good development proposal has to undergo a very in-depth study on

how feasible the proposal is prior to its establishment. The feasibility studies comprise of economic &

market analysis, site & design, contractual and financial analysis. All this components are interrelated

and need to be understood in order to ensure a viable and successful development project.

1.3NURUL DALILA BT WAHI ANNUAR

MATRIXNO: 2012404608

The Medina is a project proposal presented to the MICPM for the purpose of building a joint

venture between MICPM and our company, Caliph Holdings Berhad (CHB). As requested by the MICPM,

CHB needs to come out with a complete project proposal which contains of the project brief, relevant

feasibility studies, proposed site, design proposal and also the financial report for the project.





As to fulfil the request, CHB finally decided to propose a development of Urban Tahfiz School

with the Business Centre and Mosque as the support components for the development. Initially the

idea of the proposal has come out from a research done by our company stated that nowadays parents

especially Bumiputera realize that Islamic education must be given to their children instead of standard

academic education. In related to that matter, CHB carried out feasibility studies about the economic

and market demand analysis to support the initial idea of the proposal.

From the studies, CHB found that there is a quite high demand on Islamic education due to the

feasibility studies on Islamic Development in Malaysia shows that Muslim is the highest percentage of

religion in Kuala Lumpur meanwhile there is only few numbers of Islamic or Tahfiz schools in Klang

Valley. Therefore, CHB believes that the development of The Medina is totally relevant as it is proposed

to be built at the place where there is no Islamic or Tahfiz school there yet.

MICPM also requested to CHB to propose a site for the development. Therefore CHB proposed

a very strategic and highly potential site which is at Mukim Setapak, Kuala Lumpur. The reason why

CHB proposed the site is mainly because it is located at the urban area of Kuala Lumpur. The

advantages of having the site are close to the city centre of Kuala Lumpur which can give panoramic

background to the development and also provide good access to the site as it is located along the DUKE

Highway. Besides that, the site is also has high potential neighborhood which can help to support the

function of the development especially to the Business Centre and the Mosque.

Furthermore, for design consideration CHB proposed to use Child-Friendly School approach for

the development of the Tahfiz School. Based on the concept, CHB incorporate five considerations in

designing the master plan of the development which are the landscape, open spaces, protection,

flexible spaces and administrative building. Even though these are the consideration for the school

development but CHB tries to integrate the considerations to suit with the development of Business

Centre and Mosque. Together with the approach, CHB also proposed to use fusion of modern and

Islamic architecture as the concept in designing the look of the buildings. This concept emphasizes the

usage of pattern screen call mushrabiya screen which is decorated with Islamic patterns as the main

character. In order to make the development become more interesting, CHB also proposed to integrate

the Green Building Technology and also use the Intelligent Building System for the construction of the

project.

In term of procurement system, CHB proposed to use BOT procurement system. BOT means

built-operate-transfer which outlined that MICPM will provide the fund for the project while CHB will

drive the whole development and manage the investment from the MICPM. Also, this procurement

system also said that at last the development will be handed over or transfer to the foundation. The

reason of proposing this BOT procurement system is because of the advantages of the system itself

such as the project will be completed within the time frame and follows the planned budget by MICPM

as well as this system can reduce the burden for MICPM.

In addition, for the financial purpose CHB has also come out with a financial report. The report

shows that the profit sharing between CHB and MICPM is 60 percent and 40 percent while the payback

period is forecast to be in about 8 years. The total construction cost is MYR 60.7 million. The total

construction period proposed by CBH for this project is 102 weeks and the project is aimed to be

completed in 2015.

As the conclusion, with the help of the understanding of the lesson from ISP 1 subject we

believe that the proposal of The Medina is definitely fulfil the requirements requested by MICPM. We

also strongly believe that this project will give a win-win situation for the joint venture between MICPM

and Caliph Holdings Berhad and creates excellence to both parties.

1.4 MOHD FAHRUL RAZI BIN SAIDU

Matrix No: 2012287788

The proposed mixed development of ‘The Medina’ consisting a business centre, a mosque and a

modern tahfiz school is located at mukim Setapak Kuala Lumpur which is approximately 7 km from

Kuala Lumpur City Centre. The proposed site is easily accessed via Duke Highway, Jalan Semarak and

Jalan Batu via Jalan Ayer Hitam. In order to fulfil requirement by MICPM as funder of this project,

Caliph Holdings Berhad has come out with the brief proposal for the development of ‘The Medina” on a

7.25 acres of land of Lot 27153.





The development is to be carried out under the Build-Operate-Transfer (B-O-T) contractual approach

where MICPM Sdn. Bhd. will join venture with Caliph Holdings Berhad as the main driver for the whole

project development and also the one who manage MICPM investment including providing the design

team, construction supervision and operate a facility stated in the concession contract. At the end of

concession period which 30 years, the said development will be handed over to the foundation.

The proposed development will adopt the concept of green building and industrialized building system

(IBS) in its design and method of construction to increase demand and marketability of the proposed

project as well as reducing the construction period without over breaking the durability and quality of

the said development.

In order to proceed with the proposed development, several analysis and studies had been conducted

by Caliph Holdings Berhad. This include site, market, economic and financial analysis. The purpose of

the studies is to justify the marketable and feasibility of the development. Based on the studies carried

out, it can be summarize that the propose development is marketable and profitable. The development

is expected to have high success rate and will bring benefits to MICPM as the founder and public as the

stakeholders. The more important is, MICPM Sdn Bhd may indirectly contribute to the Islamic

development in term of education, business and social in Malaysia.

1.5 NURUL IZEAN ABDUL MOIS

Matrix No: 2012203988

The proposed development ‘Urban Islamic Complex Consisting A Business Centre, A Mosque And Tahfiz

School’ is located at Setapak, Kuala Lumpur. Setapak is a major suburb of Kuala Lumpur and is located

approximately thirteen kilometres away from Kuala Lumpur, on route to Ulu Klang. It can be accessed

by DUKE Highway – Jalan Semarak, Jalan Ayer Keroh – Jalan Batu or Jalan Semarak. This location is

generally good accessibility to surrounding neighbouring residential areas. The idea that Caliph Holding

Berhad proposed this location is to have less distractions to the development of student’s learning

because it is located away from major commercial development.

This development is a mixed development containing a modern Tahfiz school together with business

centre located in the suburb of Setapak, Kuala Lumpur.

The idea of this development that called The Medina is from named of Madinah Al-Munawwarah with

the Islamic features and have the mosque to attract peoples and potential to develop more Tahfiz in

Malaysia.

The development is to be carried out under the bult-transfer-operate (BOT) where MICPM Sdn. Bhd.

will join venture with Caliph Holdings and MICPM as a financier of this development. The land for The

Medina development is owned by Foundation (Al-Bukhari) and as the principal at no cost. This project

will be transfer to Foundation (Al-Bukhari) when the concession period which is 30 years is end and

Foundation (Al-Bukhari) will fully owned The Medina.

The proposed development will adopt the concept of green building IBS. Apart from that, it also will

apply the concept of cost optimization, value management and cost reduction. In order to proceed

with the proposed development, several analysis and studies had been carried out by Caliph Holdings

Berhad. These include site, market, economic and financial analysis. The purpose of the studies is to

justify the marketable and feasibility of the development. Based on the studies carried out, it can be

summarize that the propose development is marketable and profitable. As the proposal come out, it

conclude that The Medina is expected to have a high success rate and bring benefits to MICPM and

other stakeholders. If MICPM Sdn. Bhd. decides to undertake the project, it will definitely achieved

highest profits and attained benefits in term of profit maximization that any other development hardly

achieved in certain area.





2.0 PROJECT BRIEF

2.1 INTRODUCTION

Taking its name from the city of Madinah Al-Munawwarah; the destination of Prophet Muhammad Pbuh's hijra

which led to the establishment of the first Islamic state, The Medinais designed tobea hub fordevelopment,

andenhancement of Islam and its community by replicating the township model and the Islamic spirit of

Madinah Al-Munawwarah itself.

Madinah in Arabic means ' city / town '. It was chosen in accordance with this development which integrates

three main components namely Masjid Al- Firdaus, Al - Bukhari Tahfiz School and The Rayyan Business Centre.

The Islamic complex combines the role of the mosque during the time of Prophet Muhammad Pbuh and adapts

it to current demands. Among them are;

Mosque as center of worship

• Mosque asda’wah/ missionary center

• Mosque ascenter of knowledge / academic

• Mosque as economic development centre

• Mosque as centre of muamalat / human interaction

• Mosque as center for social and recreational activities

• Mosque ascommunity information center

The proposed development will adopt the green building concept, used low or zero energy and apply the IBS

along with the touch of urban Islamic architecture as the design concept in fulfilling its social obligation.

2.2 SUMMARY

Scope of work that will be carried out for the proposed development are as follow:

• Modern Tahfiz School (with capacity of 720 students) comprising 1 block of academic building, 1

block of administration building, 2 blocks of hostel.

• Business Centre (with 50 units of retails and 1 convention hall attached to it).

• A mosque with capacity of 1000.

Mission of development

The development of The Medina symbolizes that Islam is a syumul (complete) religionthatencompasses all

aspects of life in this world and in the hereafter.

Modern urban touch on The Medina Islamic complex portrays developer's commitment to present Islam as a

religion that is relevant to modernization.

Location

In line with the ideas and objectives of its construction, Setapak , Kuala Lumpur has been chosen as the project

locationinorder to facilitate this development in reaching its targetmarketwhich is urban Muslim community.





3.0 COMPANY PROFILE

3.1 BACKGROUND

Caliph Holdings is one of Malaysia’s leading company major in business activities encompass construction,

property development, infrastructure concessions. Caliph Holdings’s phenomenal growth over the past two

decades has been the result of its unwavering focus on its core competencies, diversification into strategically

related businesses and selective expansion into new markets.

At Caliph Holdings, we work with communities, clients and our colleagues to create positive legacies - from

funding and managing projects and properties, right though to designing, developing and constructing state of

the art precincts, buildings and infrastructure.

3.1.1 OUR VISION

To be the leading Malaysian organization, recognized for the delivery of world-class services in each of our core

businesses. We will strive to be an organization differentiated globally for its dedication to the delivery of the

resources for growth in the interest of our country, employees, stakeholders, and the various communities

within the industry.

Inspiring and strive for excellence in areas of our expertise.

3.1.2 OUR MISSION

• We deliver quality products and services

• We develop, train and reward passionate and committed employees.

• We leverage on technology and innovation for greater efficiency and productivity.

• We deliver sustainable return to our shareholders.

• We contribute to the betterment of the community.

• We actively participate in the nation’s social and economic objectives.

3.1.3 OUR VALUES

• COLLABORATION : Be one team

• AGGRESSIVE : Driven the company’s vision and mission

• LEADERSHIP : Lead with commitment, integrity and competence

• INTEGRITY & INNOVATION : Be true to our world and be challenging in our approach

• PEOPLE : People are our Client and greatest asset

• HARMONISE : Towards most best company

3.2 MILESTONES

YEAR MILESTONES

1993 Company was founded.

2000 Successfully completed first major infrastructure project – Turf Club, Sungai Besi, Malaysia (worth 400mill).

2001 Awarded a turnkey project to build a matriculation college in Labuan, Sabah (worth RM 200mill).

2003 Listed and quoted on the Second Board of Bursa Malaysia Securities.

2005 Ventured into property development.

Successfully completed in design, construct and complete the office buildings and external works at Lot 2G3 & Lot 2G4, Precin

(worth RM 408mill).

Won its first local highway design and build turnkey project Guthrie Corridor Expressway (GCE) is a 25 km dual three

Jelutong-North-South Klang Valley Expressway (NKVE) to Kuang Interchange along North South Expressway (NSE) (worth RM 386mill).

Road Engineering Association of Malaysia – Road Engineering Excellence Award 2007.

2006 Undertake 2 subcontracts of the mixed development at The Curve, Mutiara Damansara, which consist of : Basement, Road Tunnel,

(worth RM 108mill).

Achieved ISO 9002 : 1994 Certification.

2009 Completely develop the development BBT_ONE The Towers, Klang, comprising 2-block of Office Towers, The Première Hotel, 4

level of basement carpark. (GDV worth RM 1.0bil).

2012 Completely main subcontracts of Permai Psychiatric Hospital, Johor (worth RM 400mill).

2013 20 years Anniversary Celebration.

Table 3.1 Company Milestones





3.3 AWARDS & ACHIVEMENTS

3.4 BRANDS & LIST OF PROJECTS

Brands:

Mix-Commercial Development

Projects:

• Infrastructure project – Turf Club, Sungai Besi, Malaysia (worth 400mill).

• Design, construct and complete the office buildings and external works at Lot 2G3 & Lot 2G4, Precinct 2,

Putrajaya by Putrajaya Holdings Sdn. Bhd (worth RM 408mill).

• Design and build turnkey project Guthrie Corridor Expressway (GCE) (worth RM 386mill).

• Mixed development at The Curve, Mutiara Damansara, which consist of : Basement, Road Tunnel,

Buildings and External Infrastructure (worth RM 108mill).

• Development of BBT_ONE The Towers, Klang, comprising 2-block of Office Towers, The Première Hotel,

4-storey retail offices at The Boulevard and a 2-level of basement carpark. (GDV worth RM 1.0bil).

• Permai Psychiatric Hospital, Johor (worth RM 400mill).

2009 – Contractor of The Year MalaysiaConstructionIndustryExcellenceAwards(MCIEA) Construction Industry Development Board Malaysia (CIDB)

2005 – Builder of The Year MalaysiaConstructionIndustryExcellenceAwards(MCIEA) Construction Industry Development Board Malaysia (CIDB)

2007 – Road Engineering Excellence Award Principal Contractor of Guthrie Corridor Expressway Road Engineering Association of Malaysia

2013 – 2014 Best Residential Renovation/ Redevelopment Malaysia (Datum Regalia) Virgin Atlantic Asia Pacific Property Awards

DATUM REGALIADATUM REGALIADATUM REGALIADATUM REGALIA

JV partner





4.0 ECONOMIC ANALYSIS

4.1 GENERAL ECONOMIC OVERVIEW OF KUALA LUMPUR

Malaysia's economic transformation to a high value-added, high-income economy depends on a more

diversified, efficient, competitive, and stable financial system.

The good news is that the country is moving in the right direction. Our capital city Kuala Lumpur's

financial maturity was ranked 10th out of 120 countries in The Economist Intelligence Unit (EIU)'s Hot

Spots Benchmarking Global City Competitiveness report released in January last year. The city's

financial maturity is ranked as second only to Singapore's in Asean. It is even deemed to be comparable

with that of major cities like Paris, Washington and Boston; three cities that are ranked in the list of the

Top-10 performing cities in the Hot Spots report. This is a commendable performance by all counts. The

Hot Spots report is an EIU research programme commissioned by Citigroup, which ranks the

competitiveness of 120 of the world's major cities. The index was devised and constructed by an EIU

research team. In-depth interviews were conducted with 10 city experts, mayors and corporate

executives, to get their insights on city competitiveness.

It is clear that from its humble beginnings as a tin-mining town, Kuala Lumpur has grown to become

one of the most dynamic financial centres in this region. Today, Kuala Lumpur has developed and

expanded into Greater Kuala Lumpur. Greater Kuala Lumpur, encompassing an area spanning 1,735.6

sq miles with a current population of about six million, is one of the identified 12 National Key

Economic Areas (NKEAs) that is slated to propel the country's economic growth forward. It currently

contributes about 263 billion ringgit to the nation's Gross National Income (GNI), which translates into

20 per cent of the national population contributing 30 per cent of the nation's GNI; underlining the

area's importance as an engine of national growth. While there is great potential for Greater Kuala

Lumpur to act as an even bigger driver of Malaysia's economic growth, much still needs to be done in

order to unlock its potential particularly in the area of financial services.

It has been acknowledged that a capital city's financial maturity and progress depends on the strength

of the country's overall financial services industry. In this context, the importance of the financial

services sector to the Malaysian economy has been growing over the past decade, with the financial

services sector's share of Gross Domestic Product (GDP) growing from an average of 9.9 per cent of

GDP between 2000 and 2005 to an average of 10.9 per cent over the period 2006 to 2009. Despite

these developments, it has been acknowledged that this sector is still facing critical challenges,

including a lack of scale, a lack of liquidity and diversity in the capital markets, low levels of financial

literacy and competition from regional financial centres such as Singapore, Hong Kong, and

increasingly, Indonesia. However, Malaysia has big ambitions for its financial services sector. Malaysia

wants to grow the sector to a scale needed to serve the needs of businesses and consumers in a high-

income economy, and to increase its depth and regional and global market shares in select niches.

4.1.1 DEMOGRAPHIC OF KUALA LUMPUR

Table 4.1 Population in Kuala Lumpur according to ethnicity





4.

2 ECONOMIC OVERVIEW OF SETAPAK

Setapak is considered to be a suburb of Kuala Lumpur city and is in close proximity to the KLCC area of

the city (the subject site is approximately 7 km from the Petronas Twin Towers). It has an approximate

population of 300,000 generally within the middle and middle-upper income groups.

The Setapak area has generally been a “tiring” but bustling commercial and residential area which had

not seen any major development for decades until the last few years when a number of modern

condominiums, shop offices and retail centres have been developed.

Many of the buildings are remnants of the 1960s which fail to meet the needs and standards of

contemporary businesses, retailers and consumers and having suffered ageing, outdated and

inadequate commercial properties for decades, Setapak is more than ready for a new wave of modern

“lifestyle” development.

Setapak is growing into a thriving modern community and becoming more popular with developers,

homebuyers and business owners. The area is gaining a more upmarket feel following the completion

of new developments, but has further opportunity to become more upmarket due to its close

proximity to the DUKE Highway and the city centre.

Festival City Mall, anchored by Parkson opened in August 2011 to tap into the growing population in

the area. The mall reportedly has a catchment population of over 400,000 within a ten minute drive.

Income share for





Festival City Mall, anchored by Parkson opened in August 2011 to tap into the growing population in

the area. The mall reportedly has a catchment population of over 400,000 within a ten minute drive.

A number of well-known developers are and have been active in Setapak including Platinum Victory

Development Sdn Bhd and Mah sing.

Setapak's location within the KL urban landscape suggests it will register greater urbanisation and

property prices will inevitably appreciate and due to the location of the subject site on the border of

Setapak and the city centre, a mixed use “lifestle”, destination development with the right concept,

pricing and demand is expected to be a catalyst for the area.

4.3 REVIEW OF KUALA LUMPUR STRUCTURE PLAN 2020

Objective

In order to create an economic framework for the City which will enable it to achieve its vision to be A

World-Class City, the government aims to:

• enhance the City’s global and regional economic role as a leading centre of the Knowledge-Based

Economy;

• attain a strong and well diversified economic base;

• integrate with and complement the activities within the Multimedia Super Corridor; and

• attain an optimum population size and distribution.

Kuala Lumpur as A major meetings, incentives, conventions and exhibitions centre

Business and conference tourism has expanded in recent years and is becoming a very important component of

the industry. As a strategy in developing the tourism sector, more state-ofthe-art Meetings, Incentives,

Conventions and Exhibitions Centre (MICE) facilities will be provided. In addition, there shall be concerted efforts

among the government and non-governmental organisations to organise and host international MICE events in

Kuala Lumpur.

Kuala Lumpur as A regional educational and health centre

Education and health services are becoming increasingly important economic activities and are being

promoted aggressively as major commercial services for the local and export markets. To promote the

development of educational and health services, more and improved facilities need to be provided.

Development areas under strategic zone

Urban renewal / redevelopment areas

The strategic zone involves Mukim Setapak. Major development in the zone shall be focused on

completion of the development programme.





Figure 4.3: Development Strategy, Wangsa Maju – Maluri

Review

The intention to enhance Kuala Lumpur and areas under the strategic zone such as Setapak in term of

economy and education is very much correlated with the proposal of The Medina. Not only that The

Medina offers an Islamic base education centre (Tahfiz School) that fulfil the demand in the market, it

also offers economic enhancement through the business centre.

4.4 EDUCATION IN MALAYSIA

Education in Malaysia is overseen by one government ministries. The Ministry of Education

(Kementerian Pendidikan) handles matters pertaining to pre-school, primary school, secondary school,

post-secondary school and tertiary education. Although education is the responsibility of the federal

government, each state has an Education Department to coordinate educational matters in its

territory. The main legislation governing education is the Education Act of 1996.

Education may be obtained from the multilingual public school system, which provide free education

for all Malaysians, or private schools, or through homeschooling. By law, primary education is

compulsory. As in many Asia-Pacific countries such as the Republic of Korea, Singapore and Japan,

standardised tests are a common feature. Currently, there are 37 private universities, 20 private

university colleges, seven foreign university branch campuses and 414 private colleges in Malaysia.

Education in Malaysia

Ministry of Education

Minister of

Education

Tan SriMuhyiddin Yassin

National education budget (2014)

Budget RM54.6 billion (USD17 billion)

General details





Primary

languages

Malay, English, Mandarin, Tamil

System type National

Established 1956

Literacy (2009)

Total 95% (all 15 years and above)

Male 95% total, 98% 15-24 years

Female 95% total, 98% 15-24 years

Enrollment

Total 5,407,865 with 405,716 teachers (ratio 13:1), incl.

163,746 pre-school

Primary 2,899,228 (survival rate to last primary grade, Grade

6 is 99%)

Secondary 2,344,891 (66% male & 72% female students move

up to Secondary 1 from Primary 6)

Table 4.4 Education in Malaysia

4.5 ISLAMIC EDUCATION IN MALAYSIA

A system of Islamic religious schools exists in Malaysia. Primary schools are called Sekolah Rendah

Agama (SRA), while secondary schools are called Sekolah Menengah Agama (SMA).

Another type of schools available in Malaysia is the Islamic religious schools or sekolah agama rakyat

(SAR). The schools teach Muslim students subjects related to Islam such as early Islamic history, Arabic

language and Fiqh. It is not compulsory though some states such as Johor make it mandatory for all

Muslim children aged six to twelve to attend the schools as a complement to the mandatory primary

education. In the final year, students will sit an examination for graduation. Most SAR are funded by

respective states and managed by states' religious authority.

Previously, former Prime Minister Tun Dr. Mahathir Mohammad suggested to the government that the

SARs should be closed down and integrated into the national schools. However, his proposal was met

with resistance and later, the matter was left to die quietly.

Such schools still exist in Malaysia, but are generally no longer the only part of a child's education in

urban areas. Students in rural parts of the country do still attend these schools. Some of the academic

results published by these schools are accepted by mainline universities by taking Malaysia High

Certificate of Religious Study(Sijil Tinggi Agama Malaysia)abbreviated as(STAM), and many of these

students continue their education in locations such as Pakistan or Egypt.

Some parents also opt to send their children for religious classes after secular classes. Sunday schools

and after school classes at the mosque are various options available.

4.5 1 TAHFIZ SCHOOL IN MALAYSIA

Besides the ordinary Islamic religious school, there is also Tahfiz base school that focuses on Quranic

base education.

No. State Number of

school under

ministry of

education

Number of

private tahfiz

school

Total

1. Selangor 2 120 122

2. Kelantan 1 60 61





3. Perak 1 20 21

4. Kedah 1 15 16

5. Pulau Pinang 1 8 9

6. Johor 1 7 8

7. Pahang 1 7 8

8. Melaka 1 5 6

9. Negeri Sembilan 1 3 4

10. Terengganu 1 3 4

11. Sabah 1 3 4

12. Kuala Lumpur 1 2 3

13. Perlis 1 1 2

14. Sarawak 0 0 0

Total 14 254 278

Table 4.5 List of available Tahfiz school in Malaysia

Data takenfromJabatan Pembangunan Al-Quran JPAQFebruary 2011

4.6 ISLAMIC BUSINESS & SERVICES

Demand for Islamic financial services is growing both regionally and globally, and Malaysia has been

well placed to take advantage of this. It is Islamic finance that provides Malaysia with its advantage

over neighboring financial centers, and those mapping out the country’s future business model would

be wise to play to their strengths.

According to its central bank, Malaysia’s Islamic banking assets total US$168.4 billion, a quarter of its

banking system. This in turn accounts for over 10% of the world’s total Islamic banking assets.

The country’s Islamic financial sector is characterized by a robust and sharia-compliant regulatory

system. It has a strong sukuk (Islamic bond) market - over 60% of the global total - making Malaysia one

of the world’s leading Islamic capital marketplaces. This attracts institutions from across the globe and

an associated pool of liquid cash.

4.7 EXPATRIATES IN MALAYSIA

Malaysia is a top destination for both career advancement and great qualityof life, but expats move on

quickly and struggle to integrate with locals.Malaysia ranks highly in the Expat Experience tables at 5th

place, underlined by 72% of expats reporting a better quality of life. Three quarters (72%) also said they

have a more interesting life since moving, and 39% of expats stated that they have a better social life.

Other aspects that make Malaysia a top expat destination include the standard of accommodation.

More than two thirds (69%) claimed they have better housing and 31% owned a private swimming pool

when they didn’t before.

Life in Malaysia is easier in a number of ways – expats particularly report the ease of organising schools

(39%), finance (78%), accommodation (75%) and healthcare (69%), with almost all interviewed (92%)

complimenting Malaysia for the ease of local travel. Moreover, 42% enjoy more domestic help than

previously, 44% have more luxurious holidays, and over two thirds (67%) of expats associate Malaysia

with pleasant climate and scenery, and as a culturally interesting place to live (69%) with all the sights

and sounds that make the country unique.

Malaysia is a top destination for career-driven expats. 61% move there for job opportunities and are

most likely to be working in banking, insurance or financial services (79%). The majority of expats in

Malaysia (83%) found that the financial status of their household improved. However, the country is

seen as a temporary base with three quarters (75%) considering another expat posting after Malaysia.

Despite these positives, Malaysia is still a difficult place in which to integrate ranking 11th out of 30 in

for ‘Integration’. Just over half (56%) of expats reported integrating into the local community, which

consequently makes the expat community much stronger – with two thirds (67%) choosing to make

friends with other expats instead. Part of the difficulty with integration seems to be the language, with

half (50%) describing it as difficult and only a third (39%) attempting to learn it in the first place.

(60%) of expats socialise principally with other expats, while fewer than one in ten (7%) seek out the

company of locals over other expats.





The Expat Explorer Survey 2012

4.7.1 STATISTICS OF EXPATRIATES IN MALAYSIA

Country

Expatriates

Percentage Number

India 28.2 9,196

Japan 14.8 4,826

China 15.1 4,924

UK 8.6 2,804

Singapore 6.7 2,185

Iran 6 1,957

Yemen 4.2 1,370

Iraq 3 978

Indonesia 2.7 880

Saudi Arabia 2.5 815

Korea 2.1 685

Bangladesh 1.9 620

Sudan 1.7 554

Pakistan 1 326

Libya 1 326

Others 0.5 163

Sum 100 32,609

Source: Asian & Pacific Malaysian Journal, Vol 17, Nos 3-4, 2008

Table 4.6 Statistic of expatriates in Malaysia

4.8 ECONOMIC JUSTIFICATION

4.8.1 DEMAND OF MODERN TAHFIZ SCHOOL

• Few at the moment

• Due to the arising awareness among parents on the significance of Islamic/tahfiz knowledge

• Most schools that offer tahfiz education are of traditional and small scale.

• To cater the need of elite Muslim community in Malaysia

• To serve as academic institution for Muslim expatriate’s children

From the study, we conclude that the main target market for the urban Islamic development – The

Medina is justified. The income share also satisfies the requirement for high end education offered by

the modern Tahfiz scool.

Apart from that, the second main target market for the Tahfiz scool is the Muslim expatriates’ children.

The data shown also proves that the target market is justified.

4.8.2 DEMAND FOR BUSINESS CENTRE

As for the business centre, the retails can be rented by many sorts of party ranging from individual to an

organization with Islamic oriented service/ business. Among them are:

• Religion (Islam) & society defender community / NGO

• Muslim restaurants

• Producer & supplier of Halal food

• Seller of worshipping equipment

• Seller of books/Islamic books

• Garments

• Services that are syari’ah compliance – Islamic banking, takaful etc.





Foundation:

1) Al-Bukhary Foundation Malaysia.

2) Al-Quds Faoudation Malaysia.

3) Yayasan Dakwah Islamiah Malaysia.

4) Yayasan Pembangunan Ekonomi Islam Malaysia.

There is actually a demand for developing an economic and social centre for the Muslim where unity

among the community is easily formed thus facilitating the economic development of Islam indirectly.

4.8.3 DEMAND FOR A MOSQUE

There is currently only 1 masjid for performing Friday prayer at Mukim Setapak which is Masjid Jameul

Ehsan, Jalan Setapak. The mosque with the capacity of 2500 people is located 3.3km away from the

proposed new mosque

At the same time, there are 2 surau that are organizing Friday prayer located within the vicinity of

Setapak area:

� Surau Muhajirin, Taman Setapak Jaya

� Surau An-Nur, Pejabat Agama Markas 12, Briged Kem Wardieburn, Setapak

The 130,000 population of Muslim in Setapak and the use of the 2 surau as place for performing Friday

prayer shows that there is demand for another mosque in Mukim Setapak.





5.0 MARKET ANALYSIS

5.0 MARKET ANALYSIS

Market Feasibility Analysis is crucial for any new development to kick off. This is the medium where

thorough analysis is conducted particularly on the supply analysis, demand analysis and price analysis.

5.1 MARKET PRICE ANALYSIS

It is essential to look on how the location around Setapak influences the price for development of the

Medina. This will give more accurate picture for to design and complete the financial feasibility study of

this development.

The market anaysis encompass surrounding the development up to 20km radius cover up to Setapak

Jaya, Wangsa Maju, Danau Kota, Titiwangsa, Setiawangsa and Jalan Ampang.

The analysis covered for the academic and business area.

Figure 5.1: Mapping of modern high end education centre surrounding the Medina

Legend

A : The Medina

B : International Islamic School

C : Sri Utama School

D : Adni Islamic School

E : Baseerah International School

F : Garden International School

G : Sayfol International School

H : The International School of Kuala Lumpur

I : The International School of Park City

J : Mont' Kiara International School

K : Help International School

L : Mutiara Private School

M : Fairview International School





5.1.1 Modern High End Education Centre

Table 5.1: Current supply & competitor analysis – Modern High End Education Centre

5.1.2 Business Centre





Table 5.2: Current supply & competitor analysis – Business centre

5.1.3 Convention Hall

Table 5.3: Current supply & competitor analysis – Convention hall

5.1.4 Hostel

Table 5.4: Current supply & competitor analysis – Hostel





Overall, the rate for academic fee and rental price rate for various development components to the Medina surrounding area are acceptable and according to the market price. Even though the Medina is competing

with other competitor. The price is moderately affordable compared to other places around Klang Valley such as Bangsar, Petaling Jaya and Damansara. Nonetheless, the situation will completely change when the

development of the Medina take place beyond than proposal.

Table 5.5: The proposal of

income for the Medina

5.2 Target Market

The target market for Tahfiz school is mainly open to children that their parent is the expatriate,

ambassador, Muslim foreigners, local corporate/private or any affordable Muslim parents that want

advance their children to modern Islamic Tahfiz school environment.

The target market for business centre is mainly for Muslim corporate/private, retailers, foundations etc

that want to open, expand or venture their business operation close to the school compound and

vicinity of Setapak.

5.4 SWOT Analysis

Strength

• The first Tahfiz school incorporated with business centre.

• Combination of National/British/Tahfiz syllabus.

• Affordable school fee.

• Provide hostel for accommodation.

• Easy access.

• Develop with water island that may enhance in learning process and environment.

• The first Tahfiz school with IBS components and GBI certification.

Weakness

• New school which then no proven academic track record.

• It may take longer duration to get the retailer as it option and limit to Muslim businessman or

businesswomen or corporate or organization.

Opportunities

• To create new Islamic education icon for the surrounding area.

• Attract the urban and elite Islamic students.





• Open for academic vacancies.

• The students potentially been promoted to advance education level.

• Attract the business activities.

• Enhance the infrastructure.

Threat

• Local parents may option for national Islamic school like “Islamic public school” which are lower fee

and academic entrance requirements.

• Compete with other business or commercial centre surrounding the Setapak.

5.5 Marketing Action Plan

5.5.1 Collaboration

Caliph Holding is looking for any NGOs’, foundations or individuals to work together to a common

purpose to achieve business benefit especially for the business centre. Collaboration relies on openness

and knowledge sharing but also some level of focus and accountability on the part of the business

organization.

Caliph Holdings is recommended selected students from the Foundation (the Pricipal) to be the student

in the Medina tahfiz school as recognize the Foundation name and their cooperation in providing the

land for development.

5.5.3 Web-portal or media social

The Medina also been advertised in official website;

www.themedina.com.my that divided in two categories;

academic and business information. This website is a main

medium to keep in touch with our customers. For this

development, the potential parent or business body will

obtain all information regarding the school and business

information.





Marketing and advertising via internet, potentially broad the target market not only in local Malaysian

but may also attract worldwide. The advertisement in the website will be throughout the development

period until all retail units are fully sold. Then the school programme, calendar, event, etc will be

review, update and continued by appointed school operator.

5.5.2 Billboard, Hoarding and Education or Property Exhibition

Other alternative in the advertisement of the Medina, is promoted by using billboard. The billboard is

built in the Medina compound area. This billboard is facing main entrance and DUKE highway. Billboard

is one of the effective and efficient ways to advertise and promote the Medina. This billboard, may

open to public for their advertisement purposes which then may generate income to the Medina.

However the Islamic concept is remain in the advertisement. During the development and construction

stage, the advertisement of Medina is published surrounding the site hoarding as preliminary

promotion to the Medina.

At the same time, Caliph Holdings may join the education or property exhibition in promoting the

Medina.

5.5.4 Newspaper and Magazine

The Medina also to be advertised in the main medium published newspaper or magazine at a high

quality of photos and full coloured printed.

5.5.5 Brochure

Caliph Holdings is promoting the medium brochure theme with a quality of colours and photos since

the target market group is affordable parents or business body. The distribution this brochure also

selected and limited.

5.6 Conclusion

Overall, the market feasibility study that comprises of market supply analysis, price analysis and market

demand analysis illustrates the real situation with regards to the similar sector in Kuala Lumpur as well

as in Setapak surrounding area.

Hoarding, billboard, exhibition





Market supply analysis demonstrates that a small nos of private tahfiz school in Kuala Lumpur where it

seems that the supply is still entering the market despite economic uncertainty globally.

From the perspective of market demand analysis, a higher income of parent make them affordable to

go for private education centre such as the Medina where the expartriate may pottentially the main

target market for the Medina.

In terms of price analysis, it is clear that competitor to the Medina surrounding is relatively

competitive. This provides huge opportunities to the Medina to compete and affordable to welcome

the students and business body to join the Medina.





6.0 SITE ANALYSIS

6.1 THE SETAPAK AREA

Setapak is considered to be suburb of Kuala Lumpur, and is in close proximity to the KLCC area

of the city (the proposed subject site is approximately 7 km from the Petronas Twin Towers)

formerly a tin-mining and rubber growing area. In Malay ‘tapak’ means ‘step’ so ‘Setapak’

means ‘one step’ probably referring to the close proximity to city centre, Kuala Lumpur.

The earliest inhabitants of Setapak were the aborigines, and the Minangkabaus. On 12 April

1884 Frank Swettenham, the Resident of Selangor pleaded for the re-appointment of Batu

Tapak as the headman of the aborigines living in that area, and hence the name Setapak, in

honour of the headman.

The mukim of Setapak is situated in the north-eastern part of Kuala Lumpur and has an area of

62 square miles (160 km2). The northern limit of Setapak is Gunung Bunga Buah; its north-

eastern limit is Gunung Bidai; to the east is Bukit Dinding and to the south-east is the Rifle

range. The Gombak River with its source in Gunung Bunga Buah, is the main river flowing

through the mukim. Setapak consists of Gombak, Hot spring New Village and a number of other

villages.

Lately, Setapak has an approximate population of 293,280 consisting Malay as the biggest races

represent 159,610 or 54% from the total population, followed by Chinese by 28%, Indian 10%

and others represent by 8% of the total population in mukim Setapak.

The Setapak area has generally been a “tiring” but bustling commercial and residential area

which had not seen any major development for decades until the last few years when a number

of modern condominiums, shop offices and retail centres have been developed.

Setapak is growing into a thriving modern community and becoming more popular with

developers, homebuyers and business owners. The area is gaining a more upmarket feel

following the completion of new developments, but has further opportunity to become more

upmarket due to its close proximity to the DUKE Highway and the city centre.

Setapak's location within the KL urban landscape suggests it will register greater urbanisation

and property prices will inevitably appreciate and due to the location of the subject site on the

border of Setapak and the city centre, a mixed use “lifestyle”, destination development with the

right concept, pricing and demand is expected to be a catalyst for the area.

Due to the rapid development and high marketability in Setapak, combining with the attraction

of the surrounding area, we believe that it will exaggerate the needed for modern Islamic

school, business centre for Muslim entrepreneurs and a mosque as community centre for all

Muslim or Malay community sited around Setapak area.

6.2 THE SUBJECT SITE’S ANALYSIS

Figure 6.1 Subject site

Propose to develop 7.25 acres of Lot 27153 land at Mukim Setapak for purposes of mix

development consisting of a business centre, a mosque and a tahfiz school.

The subject site is located at Lot 27153, Jalan Semarak, Mukim Setapak, Wilayah Persekutuan

Kuala Lumpur (3’11’00.31’’N, 101’43’22.08”E)





Elevation from sea level is 52m.

Proposed site is approximately 7 km from Petronas Twin Tower

6.3 GEOGRAPHICAL AND DEMOGRAPHICAL ASPECT

6.3.1 Wind Direction and Sun Orientation

Winds are generally light and variable

2 monsoon winds in Malaysia:

i. Southwest Monsoon (May to September)

ii. Northeast Monsoon (November to March)

Sun orientation consideration is to ensure the buildings work with the passage of sun across the

sky

The function of wind direction and sun orientation is to optimise the proposed building design

6.3.2 Climate Aspect (Based on Kuala Lumpur case study)

Malaysia or more specific Kuala Lumpur has tropical wet climate based on (Koppen-Geiger)

which is consider as no dry or cold season

Constantly moist

No Elements Descriptions

1 Average temperature

(degree celsius

27 degree celsius

2 Average precipitation (mm)

2366 mm

3 Average sunlight (hours/day 06:06 hours/day

4 Average daylight

(hours/day)

12:00 hours/day

Table 6.1 Climate Aspect

6.3.3 Topographical Aspect

Site consists of flat terrace area

Type of soil is sand with laterite due to surrounding area is hilly and ex-mining area

The subject area is fully occupied by tertiary vegetation which less than 6 meter height

Figure 6.2 Topographical Aspect

The above topographic map of Kuala Lumpur and the

surrounding area has beenderived from satellite





6.4 SWOT ANALYSIS

Figure 6.3 SWOT Analysis

6.5 SUMMARY

From the SWOT analysis, we proposed to highlight 3 major advantage of the proposed subject location

which is:

1. Strategic Location

Figure 6.4 Subject Location

2. Potential neighbourhood

i. Situated within a predominantly residential area

ii. Surrounded with existing facilities

Figure 6.5 Potential Neighbourhood

i. Located within close proximity to KL city centre

Relevant for an urban concept of Private Tahfiz School

ii. The development can be planned to capitalise on KL city skyline views

Panoramic background for the proposed development

iii. There are numerous ‘undeveloped’ land plots in the surrounding area

Good for future extension/development





3. Good accessibility

i. Good accessibility, visibility and prominent from the Duke Highway

ii. Generally good accessibility to surrounding neighbouring residential areas

iii. Located away from major commercial development which is less distractions to the

development of student’s learning

Figure 6.6 Accessibility





7.0 DESIGN CONSIDERATIONS AND DEVELOPMENT

7.1 INTRODUCTION

In general, a school is just a school and many people may have in their mind that a Tahfiz School is also

as same as other schools. Hence, in order to make the development of The Medina is not like an

ordinary school we proposed to used a concept called ‘Child-friendly School’ for this development.

Child-friendly schools are not architectural phantoms from a strange place. They are schools with

attributes typically associated with good schools in many countries. However, they have additional

elements that complement and reinforce the principles and practices of the child-friendly approach to

education.

In this regards, the objectives of developing a child-friendly school are as follow:

• Attarct students

• Improve learning achievement

• Provide safe, inclusive and welcoming environment for students

• Provide enabling learning environment including accomodating students with physical

and mental learning

• Cultivate harmony between the school and the community

• Harmonize buildings, school ground and environment as students interact with them

The basic planning and design requirements that make a good school are the foundation on which

further elemnets can be added to turn them into child-friendly school. Therefore, the development of

The Medina which is focused on the Tahfiz School is going to integrate the nature of the child-friendly

school with the nature of Tahfiz School in Malaysia.

7.2 PROPOSED PROJECT SITE

The Medina is proposed to be constructed in an area of approximately 7.25 acre of land, located at

Mukim Setapak, Kuala Lumpur. The site is a flat land, having sparse vegetation and existing lake on the

west boundary. The Site is touched by accessible motorable road on the south side. The development is

planned to accommodate components as below:

i. The Tahfiz school

ii. The Business Centre

iii. Mosque

7.3 DESIGN CONSIDERATIONS

As the Tahfiz School is the main focus in the development of The Medina, the design considerations for

this proposal are more about the considering in developing a school. However, some of them might

also suitable for the development of other component in The Medina project.

7.3.1 LANDSCAPING

School grounds form an integrated, holistic unity with school buildings and their users, but in

conventional school planning they are often neglected. Trees are vital for filtering sun, dust and noise

and for beautifying the school. Indigenous trees, shrubs and flowers should be planted in the school

compound along with edible plants meant to teach children food production and conservation. Trees

also have a softening and calming effect on the learning environment and its users. Planning the school

landscaping is a good way to involve children in the realization of a child-friendly school.

7.3.2 Flexible Spaces

Flexible spaces increase child participation in class and allow teachers to provide a more dynamic

environment for learning and teaching. Such spaces provide opportunities for group activities, areas for

manual projects and easy access to open spaces. Individual classrooms or other facilities that create

outdoor space between structures give students a chance to be in open areas when in transit between

classes. Classrooms should be accessible for all children; ramps and wide doorways should be provided

for less mobile children.

7.3.3 Protective





Depending on location and context, the enclosure and boundaries of schools can vary in form and

function. The goal is to find a balance where a fence can provide protection to the child from outside

elements such as traffic, animals can define boundaries to keep children within the school and can also

serve to section off an area for gardening and orchards.

7.3.4 Open Spaces

Easy access to open spaces from classrooms allows children to be in close contact with their

environment and to engage in physical activities. Open spaces can be designed as play yards for sports,

school gardens and orchards, decks or verandas for outdoor learning activities, open performance

spaces, wide corridors and courtyards, trellises, canopies, shaded pavilions, niches, alcoves, play lofts

and enclosed backyards. In typical child-friendly schools, the community would be allowed to use some

of these spaces after school hours for town meetings, local gatherings and other events.

7.3.5 Administrative Office

Separate space for faculty/administrative personnel gives privacy to students and teachers and

maximizes the use of classroom space, enabling staff to work separately from students. Proximity

between classrooms and administrative offices is recommended to monitor students’ activities and

create ‘safety through transparency’.

7.4 DESIGN DEVELOPMENT

7.4.1 The Concept

In the development of The Medina, Caliph Holdings Berhad proposed to use fusion of modern & Islamic

architecture for the whole development. This concept emphasis the modernization of traditional Islamic

architecture such as the pattern screen for the building envelope or also known as the mushrabiya screen.

Furthermore, this concept also emphasizes the usage of the courtyard or also known as Sehan. In Islamic

architecture, Sehan is an enclosed area, often a space open to the sky. It may be filled with garden or water

features such as pond. The function of Sehan in Islamic architecture is to provide a private open area especially

for the females as they cannot expose their aurah to the public. In modern era, the function of Sehan or

courtyard might be expand to be more useful because nowadays people treat courtyard as a recreation area, for

example as a swimming pool area.

7.4.2

Precedent Study

Figure 7.1: Mushrabiya screen as the building envelope

Figure 3: Courtyard in Islamic

architecture Figure 7.2: Courtyard in modern architetcure





Table 7.1 Precedent Study

7.4.3 The Master Plan

i. The Tahfiz School

The school is planned around a central water body and courtyards offer a cool reprieve from

indoor spaces.Closed-knit community interwoven with crossing bridges to allow interaction

between buildings especially in the school compound. Water body located at the central area of the

master plan to soften the landscape zones with as much as natural features.

Administration Building is located adjacent to the Business Complex to act as a arch in the

middle of the site. These two related buildings are proposed to be build with attractive architecture

elements to make it dominant and stand out from other buildings.

Meanwhile, Hostel is located a slightly far from the entrance as to give privacy to the building.

Hostel consists of two towers to accomodated male and female students seperately. It is also

completed with other

facilities for the student’s

purposes such as

Dining Hall, Recreation

Room, Convenience

Shop and others.

Name of Building Bank Muscat Headquarters Building

Location Oman

Architect Atkins

Concept Fusion of modern & Islamic architecture

• the building is low rise and arranged in L and U • shapes to create shaded courtyards, one of which is home to

a Moroccan-style garden, and another forms the main entrance

• the exterior is modern with traditional Omani and Arabic themes

• While glass is used widely, some windows are part-obscured by patterned screens and some of the facade features terracotta tiles

• also reflecting Arabic style, water features and greenery are prevalent

Purpose • this project is designed to serve as a central hub for Bank Muscat

• the headquarters will eventually be home to 2,000 employees

• was designed to provide a functional and attractive building firmly

• rooted in the Omani context

• security measures were also paramount, given that the building is a fully operational bank as well as a workplace

Sustainable

Initiatives

1 .External mushrabiya screens (Geometric Floral Pattern)

• decorative & functional • high performance glass

• reduction of glazing 2. Anti-sun green low E-coated glass

3. Long span overhang for shading devices

Figure 7.2: Bank Muscat Headquarters Building





Furthermore, Caliph Holdings Berhad also proposed to include a sky bridge to connect the

hostel building with the academic building. The purpose of this sky bridge is to provide direct

linkage to students to make them easy to go to class. Other than that, numbers of gazebo are

proposed to be build at the courtyard area as if they are floating in the manmade lake. The gazebos

are provided as the area for hafazan or memorize the Quran and it seems to be a very suitable

space for them.

ii. The Business Centre and Mosque

The initial purpose of the Business Centre is to support the operation cost for the Tahfiz School.

In related to that, it consists of shops and a convention hall for multipurpose usage. The Business

Centre building is located outside the school’s compaund as it is open for public and for the

purpose od safety and security for the Tahfiz School. However, Caliph Holdings Berhad proposed to

link the building with the Administrative Building in the school’s compound via a sky bridge from

the level of the convention hall.

On the other hand, in the Islamic tradition the Mosque serves as a 'Community Centre’, bringing

people together both socially and academically. The mosque also functions as a gathering point at

the centre of community life. The Prayer hall elevated 1.5 meters higher than the road level

enhancing privacy for the user inside the prayer hall. Carparks are also provided in the mosque

compound and also serves the Business Centre as it is open for public.

Image 3: Proposed Master plan

Figure 7.5 Proposed Master Plan





Area Percentage

(%)

Site area : 7.25 acre

29,339.48 m²

Plinth Area : 4.35 acre 60.00

17,603.69 m²

Development Component :

1. Administrative Building 2,004.40 m² 5.55

2. Academic Building 6,030.18 m² 16.70

3. Facilities 5,159.79 m² 14.29

4. Others 7,638.87 m² 21.16

5. Complex 12,650.00 m² 35.03

6. Carpark 500.00 m² 1.38

7. Landscape & Green Area 2,124.58 m² 5.88

Total GFA : 36,107.82 m² 100.00

Table 7.2 Development Component

7.5 DESIGN GUIDELINES AND STANDARD

For the practice in producing the proposal for The Medina, the design of each elements and

components are based on the standard of Malaysian Economic Planning Unit or EPU. It is a written

standard for the development of buildings in Malaysia.

The Standard of Procedures or S.O.A has been attached as the Appendix in this report for the

reference.

7.6 SUMMARY

The proposed master plan would conceptualize the idea of construction a tahfiz school and business

centre with mosque with an approach of fusion of modern and Islamic architecture. This is to embrace

modernist virtues of form following function; local materiality utilization and synchronizing the relation

of child-friendly school and social and community parameters as well as structural architecture and

technological consideration. By taking The Bank Muscat Headquarters Building assist in producing a

more reliable, practical and buildable development plan within reasonable construction cost and

duration. Furthermore, adaptation towards considerations of the child-friendly school and

consideration on the concept of fusion of modern and Islamic architecture together with green

technology and sustainability factors will make the development of The Medina stands out from other

development in the respected area.





8.0 CONSTRUCTION & PROJECT PLANNING

8.1 CONSTRUCTION (SPECIAL FEATURES)

Caliph Holdings Berhad will proposed Industrialized Building System (IBS) and Green Building as one of

the technological component in its construction method. The adaptation of Industrialized Building

System and Green Building technology will make the duration of construction shorter and more

advance in term of marketability and demand. This two method covers all the main building in the

proposed project including business centre building, mosque building and the more important is

modern tahfiz building.

The design of the main building was meant to provide the pleasing combination of technologically and

environmentally for study, interacting and socialising for community. We have choose Industrialize

Building System (IBS) as a construction method and some green features in order to protect

environment and high quality control for the proposed project.

8.1.1 Industrialized Building System (IBS)

IBS is a construction technique where components are manufactured in a controlled environment (on

or off site), transported, positioned and assembled into a structure with minimal additional site works."

(CIDB, 2003).

The term IBS is defined as innovative process of building construction using the concept of mass –

production of industrialized systems, produced at the factory or onsite within controlled environment,

it includes the logistic and installation aspect of it, done in proper coordination with systematic

planning and integration.

The main benefits that are gained from the utilization of the system are as the followings:

High-quality products and minimum waste due to work environment in factory is easier to

control.

Elimination of conventional timber props and obvious decrease of supporting through the use

of complete assembly element or prop system for on-site casting process.

Stronger and safer work platform produced through compel assembly element.

Faster completion due to the introduction of prefabricated components to replace on-site

fabrication.

Safer, cleaner and more organized site due to the reduction of construction waste, site workers

and prefabricated construction materials.

Cheaper total construction cost as the result of all benefits gained from the above factors.

IBS components forms consists of column panel, beam panel and wall panel. They are constructed

according to a certain size from the construction drawing and every building involved different size of

panels. All the lifting works shall be done by using crane.

8.1.1.1 Column

Column panels are constructed according to the size in the construction drawing. Prior to column

panels’ erection, the workers should remark the columns area at the ground slab. It is important so that

the column panels can be installed easily above the ground slab. These column panels will have

construction joint both at the top and bottom of the panels





8.1.1.2 Beam

Beam panels are constructed according to the size in the construction drawing. After it transported to

the site, the installation can be simultaneously with the column panels and no shoring works need to

be done. The first floor beams can be connected to the column panels and this will minimise the

construction period. After all connection has been made, the construction joint can be started. Roof

beams also will adapt the Industrialized Building System (IBS) method of construction where the roof

beam panels are constructed at the factory and installed at the site.

8.1.1.3 Wall

Wall panels are constructed according to the size in the construction drawing. After the building frame

is constructed, the wall panels transported from the factory can directly installed between the column

and beam panels. After installation, the structure joint need to be carried out.

8.1.1.4 Steel Frame Cladding





With our modern Islamic design, the introduction of steel frame for cladding is coincides with the

Islamic concept for each of the building. Cladding is a protective layer of materials that separates a

building's structure and interior from exterior elements, such as weather and sound. The exterior

cladding is often not one material but an assembly of materials, and each material has its own

importance in blocking exterior conditions. Cladding will increase the aesthetical value for each of our

building.

8.1.2 Green Building Technology

8.1.2.1 Why Green Building?

� Green buildings are designed to save energy and resources, recycle materials and minimize the

emission of toxic substances throughout its life cycle

� Green buildings harmonies with the local climate, tradition culture and the surrounding

environment

� Green buildings are able to sustain and improve the quality of human life whilst maintaining the

capacity of the ecosystem at local and global levels.

� Green buildings make efficient use of the resources, have significant operation savings and

increases workplace productivity

� Building green sends their right message about a company or organization-that it is well run,

responsible and commitment to the future

8.1.2.2 Benefits gained from the green building technology utilization

Client:

Improve marketability and enhance the value of the property

Operational cost savings

Capital cost savings

Tax benefits for Green Building-encourage energy-efficient buildings

Occupants:

Lower maintenance costs and better performance

Improved occupants productivity

Lower utility demands in green Buildings – lower demand on electricity, gas, and water utilities

Healthier indoor environment for occupants in Green Building





8.1.2.3 Green Building Concept

8.1.2.3.1 Application in All Buildings

No Component Technological devices

1 Lighting Used LED fitting and Smart

lights have photo sensors that

read how much natural light is

in the building and dim electric

lights when there is substantial

natural light (Lobby,

management office and

common area).

2 Façade/ Cladding Constructed from glass

elements which deliver high

levels of transparency and fully

integrated sun shading and

light reflection systems

3 Roof Create to collect and harvest

the rainwater that falls on the

designed roof.

4 Heat and sound Uses thick, sound-proof

laminated Low-E glass panels

that cut off heat, sound and

100% UV rays

5 Water harvesting system Innovative CHEEL system.

Condensate water harvested

from the management office

air conditioner, a heat pump

drawing heat from the air-

conditioner compressor and

providing energy for hot water

to the common toilets and

cool air piped into the

evaporative waterfall at lift

lobby to lower the

temperature of the double

volume lounge and lift lobby

for additional indoor thermal

comfort for the residents

8.1.2.3.2 Application in Mosque (Special)

No Component Technological devices

1 Lighting Used LED fitting and Smart

lights have photo sensors that

read how much natural light is

in the building and dim electric

lights when there is substantial

natural light (Lobby,

management office and

common area).

2 Frame Used structural steel frame

3 Rain water harvesting system Irrigation for green

landscaping use water used in

ablution and rain falls.

8.1.2.4 Green Building Index Certification

Green Building Index (GBI) is developed by Pertubuhan Arkitek Malaysia (PAM) and the Association of

Consulting Engineers Malaysia (ACEM). It is a profession driven initiative to lead the property towards

becoming more environment-friendly





The rating system gives opportunity for developers and building owners to design and construct green

buildings that can provide energy and water savings, a healthier indoor environment, better

connectivity to public transport and the adoption of recycling and greenery for their projects.

8.1.2.4.1 Criteria Buildings Rated

How GBI are AwardedGBI Malaysia are awarded by Platinum, Gold, Silver or Certified depend on the

score achieved. For this project, we proposed to achieved ‘Certified’ status

8.1.2.5 Summary

The development of the propose site is not fully adopting the IBS approach but every building is built

using the IBS materials and green features such as frame structure, wall and beam construction,

laminated low-E glass for windows, rain water harvesting system and others. The conventional

approach is still being adopted and it is impossible to produce a fully development using IBS and green

technology. The integration of conventional and non-conventional methods can reduce the

environmental impact. The materials used can be integrated with conventional methods and materials

to produce better performance. The installation of IBS components are using the crane thus reducing

the application of scaffolding but still being used for other conventional purposes.





The construction period is slightly faster because the prefabricated components are only installed once

it arrived at the site by using the crane and not involving general workers. Thus, this can reduce the

labor cost. Since the development is using the IBS and green technology, it can directly reduce the cost

of labor, materials and storage. The green features selection such as rainwater harvesting can help to

reduce the uses of clean water supply where this rainwater harvesting can used for gardening purposes

for instance.

Because the selection of materials is consist of IBS, the suppliers and manufacturers mostly are located

in Kuala Lumpur and Selangor. It is exactly near from the proposed site. The transportation from the

manufacturers is by the trucks or trailers is used to transport the materials to the site. The

transportation will be in bulk to reduce the cost but not exceeding the capacity allowed to ensure the

quality and safety of the materials are guaranteed before the installation begins.





8.2 Overall Project Scheduling

8.2.1 Introduction

Also called as Project Planning which is a restraint for stating how to complete a project within a

certain timeframe.

The purpose of project planning is to define each major task, estimate the time and resources

required, and provide a framework for management review and control.

The total project will be starting on 1st week of January 2014 and the project supposed to

complete on 3rd week of December 2015.

The construction period will be starting on 3rd week of August 2014 and is expected to

commence along 72 weeks period.

Once completed, the operational stage will fully organized by Caliph Holdings Berhad for 30

years period before concession period ended.

After 30 years period, the proposed project will be fully handed over to Yayasan as per

agreement and the land owner of the project

The proposed project consisting a business centre, a mosque and a modern tahfiz school where

all of these component will be handed over to Yayasan to operate.

8.2.2 Assumption for Development

The objective for the development process is to build, complete and operate the project

accordance to the specification, within budget and on schedule. To achieve of project planning,

there are three assumptions:

1. Specification

� The design plan and specification meet the client's need and requirement, zero error

and follow the statutory requirement and standards.

2. Budget

� The budget is acceptable and client ca afford to pay the project and contractor can build

and complete the project on time with a reasonable profits

3. Schedule

� The schedule is practical and contractor can finish the project according to client’s

requirements.

� The whole project includes construction of a business centre, construction of a mosque

and construction of a modern tahfiz school.





8.2.3 Overall Work Program




43

8.2.4 Summary from Work Program

STAGES DURATION

1. Client & Consultant

(Design Development) 11 Weeks

2. Submission And Approval 24 Weeks

I. Development Order 24 Weeks

II. C&S Submission 18 Weeks

III. M&E Submission 18 Weeks

IV. Archi. Submission 18 Weeks

3. Construction 72 Weeks

4. Total Construction Period 107 Weeks

5. Period of Concession 30 Years




44

MICPM

(Financier)

9.0 PROCUREMENT METHOD

9.1 INTRODUCTION

Procurement is a term which describes the contractual network of relationships which are formed

between MICPM, Caliph Holdings, Foundation, Consultants and Construction companies, to enable a

building project to be realized.

It is also serve as mechanism which provides a solution to the question: "how do this project to

contractually build?"

The procurement process start by devising a project strategy. The strategy entails weighing up the

benefits, risks and budget constraints of a project to determine what the most appropriate

procurement method is, and what contractual arrangements will be required.

Understanding risk is essential, as although each procurement method follows a well-established set of

rules and procedures, there are risks associated with choosing any particular route.

MICPM concerns focus on time, cost and quality (or performance) in relation to all aspect of the

development approval, design, construction and operation of the building.

9.2 SELECTION OF PROCUREMENT METHOD

Caliph Holdings is proposed to have the Build, Operate and Transfer (BOT) as the procurement form

for development of The Medina.

Build Operate and Transfer (BOT) is a major startup business venture where private organizations

undertake development and operation of a facility. The termination of the services occurs at the return

of the ownership of the facility to the right owner a fixed concession period up to 40 years. This

proposal that the next ownership of The Medina is Foundation.

In the BOT approach, Caliph Holdings as consultant or concessionaire retains a concession for a fixed

period for MICPM from Foundation (called Principal), for the development and operation of said

facility. The development consists of the financing, design and construction of the facility, managing

and maintaining the facility adequately, and making it sufficiently profitable. Caliph Holdings secures

return of investment of MICPM by operating the facility and, during the concession period, Caliph

Holdings acts as owner. At the end of the concession period, the Caliph Holdings on behalf of MICPM

may transfers the ownership of the facility free of liens to the principal at no cost.

A key characteristics of this BOT that MICPM is providing the financing. Caliph Holdings will drive the

whole project development and manage the MICPM investment (BUILD, OPERATE) inclusive of sourcing

the development land with the Foundation, providing the design team, construction supervision and

operate a facility stated in the concession contract.

Then, the said development is handed over (TRANSFER) to the Foundation upon termination of

concession period. Proposal of concession period for the development of The Medina is 30 years.

9.3 PARTICIPANTS IN BOT PROJECTS

Figure 9.1 Participants in BOT




45

Principal

In a BOT project, the principal is a Foundation that recognizes the need for facility but is unable to

financially support the project.

Consultant & Concessionaire

After the identification of the need for the facility, Caliph Holdings act as MICPM consultant will be

granted a concession. Caliph Holdings takes the responsibility of developing (designing, constructing

supervision), maintaining and operating the facility, on behalf of the principal.

Financier

Financing is supplied by MICPM.

Concession contract

The concession contract is signed between the Foundation, Caliph Holdings and MICPM. This contract

runs from the initial design stage through the final transfer, and includes the allocation of risks. The

main issues addressed within the concession contract are:

1) The length of the concession period.

2) The starting date and the transfer date.

3) The structure of the project company.

4) The financial scheme.

5) The financial guarantees.

6) The financial ceiling of development costs.

7) The financial ceiling of usage costs.

8) The construction process.

9) The completion time of the construction.

Financial agreements

The financial agreements are private between the Caliph Holdings and MICPM. The agreement contains

the ratio of debt to equity and a detailed plan for the distribution of the expected revenues during

operation.

Construction contract

The contract between Caliph Holdings and the future contractor is usually a fixed price contract or a

design-build contract.

Operation contract

The operation contract is signed between Caliph Holdings and future operator. All contracts are strictly

related to each other and eventually shape the design, construction and operation of the facility and

describe responsibilities and risks. It is, therefore, crucial to obtain transparent contracting where all

risk and responsibility-bearing parties’ obligations are clearly defined. An open information structure

and well defined contract management with agreed risk division will limit misunderstandings.

9.4 DELIVERY DUTIES AND RESPONSIBILITIES

Caliph Holdings is responsible for design, construction supervision and 30 years operation services.

Caliph Holdings is also retains the operating revenue risk and any surplus operating revenue.

9.5 COMMERCIAL TERMS

The allocation of capital outstanding and profit distribution between MICPM and Caliph Holdings is 40%

and 60%.

9.6 BENEFITS OF BOT

BOT projects are considered applicable to this development. Among the benefits of BOT implemented

in this development are:

1) Completing the development within time frame and planned budget of MICPM.

2) The project design can be tailored to the development concept, construction equipment and

materials that will be used as MICPM requirements.




46

3) Transfer of technology and know-how.

4) Reduce the risk burden to MICPM.

5) More efficient since the design, construction and operation is in a control of Caliph Holdings.

6) Secure profits and benefits to all parties involved; MICPM, Caliph and Foundation.

9.7 SUMMARY

The main function of the procurement is for risk allocation to each party. The BOT is used as

procurement based which that Caliph Holdings will drive the whole project development and manage

the MICPM investment (BUILD, OPERATE) since MICPM is providing the financing inclusive of providing

the design team, construction supervision and operate a facility stated in the concession contract. The

said development is handed over (TRANSFER) to the Foundation upon termination of concession

period of 30 years.

The allocation of capital outstanding and profit distribution between MICPM and Caliph Holdings is 40%

and 60%. This proposal to use the BOT contract approach since it is the best contract approach that

bundled together and transferred to Foundation and fully owned the Medina.




47

10.0 FINANCIAL ANALYSIS

For the purpose of this study, a broad financial analysis had been carried out based on the concept plan

provided. This is to study and analyse the viability of the proposed development. The evaluations were

carried out based on the following method:

a) Residual Valuation Method

b) Discounted Cash Flow Method

The evaluations are prepared based on the Gross Development Value (GDV) and Gross Development

Cost (GDC) of the proposed development during the development period of three and the half years

(3.5 years). It is stressed that all financial figure indicated in the report are preliminary and estimated

cost. Thus, it need to be adjusted accordingly when detail information regarding the development are

made available.

10.1 KEY ASSUMPTIONS OF THE PROPOSED DEVELOPMENT

The financial analysis of the proposed development was done by taking into considerations the

following assumptions:

1

Concession Period/Repayment

Period

Construction Start Date

Construction Period

Handover Date

Lease Start Date

Year

Year

Year

Year

Year

30

1 (2014)

1.5 (18 Months)

2

2

2

Financing During Construction

70% Bridging Loan

RM

51,778,636.95

30% Capital Injection

RM

22,190,844.41

3

Construction Programme

Year Percentage

2014 65%

2015 35%

TOTAL 100%

Table 10.1 Assumptions

10.2 THE DEVELOPMENT

The development is expected to be carrying out within 3 and half years of development process. So,

the financial availability will also be based on the period of development. The prices that will be using

in the financial feasibility are:

NO DESCRIPTION FEES/ RENTAL

1 Primary Students

Admission Fees (1st year only)

Students

Hostels

30,000.00

14,000.00 / year

1,000.00 / month

2 Secondary Students

Admission Fees (yearly)

Students

Hostels

7,000.00

17,000.00 / year

1,200.00 / month

3 Other

Cafeteria

Shops

3,000.00 / month

6,000.00 / month




48

Multipurpose hall

Advertising

24,000.00 / month

72,000.00 / year

Table 10.2 Estimated prices and fees

10.3 ESTIMATED COST OF DEVELOPMENT

10.3.1 Gross Development Cost

The calculation of the Gross Development Cost (GDC) of the proposed development taking into

considerations the construction of The Medina. Several allowance of percentage was added to ensure

the rate use form cost data is applicable to the current proposed project. Allowance includes:

a) 20% increase in materials price for the use of Industrialized Building System (IBS) components

b) 15% for the implementation of green technology such to at least get a GBI certified

(Refer Appendix A, B, C and D)

Apart from that, based on the observations, enquiries and discussion with contractors, developers, and

valuers on the prevailing construction and similar infrastructure cost, we have estimated the total cost

of development also include the following items.

Contribution to Authorities

These are estimated cost to contribute to the relevant authorities. The authorities include Drainage and

Irragation Department (JPS), Tenaga Nasional Berhad (TNB), Indah Water Konsortium (IWK) and others.

Estimation was done based on the percentage required by the authorities itself or price range per unit

or acre.

• Site Preliminaries Cost

Preliminary cost is the cost that paid by the developer for feasibility study on the land, consultant fees,

the applications, forms and others.

• Site Preparation Cost

The site preparation cost is incurred by the developer. Site preparation cost includes soil investigation,

site clearance, cutting and filling, leveling, demolish and debris removal from the site and terracing.

• Infrastructure Cost

The infrastructure cost include the cost for the construction of road and carpark, drainage, sewerage

and water reticulation system, upgrading of existing main excess.

• Landscaping & Turfing

Landscaping and turfing cost for this development is based on acre. The rate used is RM 10,000 per

acre.

• Building Construction Cost

This is the cost incurred for the construction of the buildings. The building costs are based on current

construction material cost. The estimated building construction costs are extracted from current

market situation and based on the cost data. According to the data provided by KPK Surveyors (a well-

known quantity surveying consultant firm in Kuala Lumpur), current rate for institutional building is RM

1,350 per square and the rate provided is for the west region of Malaysia.

• Professional Fees

The professionals involved in this proposed project are architects, Quantity Surveyors, Civil and

Structural Engineers, Town Planner and others. The costs allowed for our proposed project are 11% of

construction cost plus 5% service tax.




49

• Management & Legal Fees

For project management and supervision fees, the cost is calculated as 1% from the construction cost.

Whereas for legal fees, the cost is calculated as 2% from the gross development value or expected sales

income.

• Advertisement & Marketing Fees

The cost is calculated as 1.5% from the gross development value or expected sales income. This cost is

for the purposed of advertising and marketing of the proposed development.

• Financing Cost

Financing cost is the cost incurred in half of infrastructure and construction cost of the project for the

period of development. Bridging loan is taken to cover the period of the construction with the interest

rate taken is 7%. The total bridging loan is 70% of the total development cost.

• Contingencies

It is a sum set aside for unforeseen variation in development expenditure due to delay, cost inflation

and other risk. There is possibility that some additional cost maybe incurred during the development

period. For the proposed development, contingencies were allowed 5% from the total of building

construction cost, infrastructure cost and preliminaries cost.

10.4 DISCOUNTED CASH FLOW APPROACH

In order to achieve the internal rate of return of the proposed development, we also adopted the

Discounted Cash Flow Method where the assumptions made as follows:

The development period is assumed to be fully completed within the period of 1.5 years.

(Calculation for Cash Flow is attached in Appendix J)

From the cash flow calculations, the payback period for the proposed development also being

calculated. It is expected that the development will be able to achieve back their capital during the

tenth month of year seven (7).

(Calculation for Payback Period is attached in Appendix L)

10.5 RESIDUAL APPROACH

The residual method is based on the unit price concept that has been paid for such development

depending on the availability of the land to gains profit. In other words, the price unit of the

development is determine by the profit that being acquired from such business.

(Calculation for Residual Method is attached in Appendix E)

10.6 PROFIT SHARING

Based on the residual calculation, the total profit for the proposed development is RM 157,630,197.20.

For the purpose of this development, we propose the profit sharing to be 60% and 40% between

MICPM Sdn. Bhd. and Caliph Holding Berhad.

Development Profit % RM 157, 630,197.20

MICPM SDN BHD 40 RM 63,052,078.88




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CALIPH Holdings Berhad 60 RM 94,578,118.32

Table 10.3 : Profit Sharing

10.7 SUMMARY

The following is a summary of results obtained from the two methods used.

Table 10.4: Overall Summary of Proposed Development

From the table shown, it can be seen that the proposed development is viable and profitable. Analysis

has shown that the proposed development have a high success rate with developer’s profit based on

GDV is 12% and based on GDC is 25%. With the concession period of thirty (30) years, having the

payback of the capital on the seventh year can be considered as appropriate. From the development,

40% of the profit owns by MICPM Sdn. Bhd. while Caliph Holding Be




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11.0 PROJECT IMPLEMENTATION STRATEGY

Project strategy is the process of getting an initiative from start until end within scope, budget and

time. Project strategy is about execution. It’s the science and art of getting things done and project

strategy is considered a strategic competency.

The development of the Medina consists of many elements which may require proper planning and

strategy in order to ensure the project runs smoothly without any interruptions. It is prominent to

ensure the project implemented strategies in terms of time, quality and cost, labour, machinery and

material control.

11.1 TIME

Time is one of the key considerations when evaluating which type of contract to be selected. During the

actual construction, changes are likely to delay the project and lead to inordinate cost increases. The

Medina’s development is involved concession period up to 30 years. Therefore, it is important that the

time planned is not changed during the project. The time control is essential to manage time for the

development and construction work.

A project that is implemented at high speed is potentially a high risk and therefore needs to be

carefully managed so as to promote the smooth interlocking of the working practices and

organizations. Proper flow of information transfer and the incorporation of effective quality control

systems are needed. A good and proper time management of work should be outlined in master work

program and other means of time table. It is essential to determine the time to complete the project

within the budgeted cost and standard quality of work.

11.2 QUALITY

The Medina focuses more on green technology. Green technology is still considered as a new element

in Malaysia and thus making it quite difficult to measure the quality standard. Quality is an important

concern for all business organizations. Quality is the mean of combination between material

properties, the method of installation and the ability of workmanship at site that shows how the work

can be done and to be measured by client to judge the works if that works is satisfactory or not. Quality

of workmanship or aesthetics is largely beyond the inspector’s responsibility. However, inspection by

the owner’s representative is intended to include concern not only for the structural integrity and

safety of the structure, but also for the quality of workmanship, selection of materials being used,

aesthetic values and similar matters involving compliance with the provisions of the contract plans and

specifications. Similar to time, quality of work should be in a reasonable or higher standard within the

limited budget. A proper guidelines and inspection is be enforced to ensure the good quality of work to

satisfy client and the end user.

11.3 COST

Cost control is the activity which compares cost performance against the cost plan, adjusting one or the

other dynamically by reference to the changing circumstances in the time, quality and overall

perception of the project. These are the basic tenets of systems theory, applied to objectives, control

and feedback.

Basically, the cash flow and cost controls are related to the bar chart of a project which can generate

the S-Curve which shows the flow and how the controlling of cost or money used within a project. The

cost involved in the construction of a project can be broken down into two major categories; direct and

indirect. Direct costs are associated with the physical construction of the project and include such

things as the purchasing of building materials, equipment and machinery operations, labour and

manpower.




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Factors should be concerned in controlling cost of the project are the required standard of

workmanship and materials specified, the complexity of work, any imposed constraints such as limited

access or restricted working hours and onerous contract conditions imposed on the contractor.

Overruns in particular cost categories signal the possibility of problems and give an indication of exactly

what problems are being encountered. So it is essential to well plan the cost control to avoid cost

overrun and also the delay of the project. The Medina project is a big and complex project with a

thorough cash flow prepared before the commencement of the project. If the cash flow is followed

carefully throughout the project, overruns may be evaded.

11.4 LABOUR

Labour is the most essential element in construction project management. Labour should be well

managed in terms of division of work. Poor management of labour will cause a negative effect not only

in terms of money but could also be in moral problems. Labour should be provided by money intensive,

courses and training, certain benefits for them to retain the development project.

11.5 MACHINERY

Plant and machinery is the main item in a project to run construction works. Usage of the machinery

depends on the type of works. The plant and machinery should always be in good condition. Although

the cost of machinery is high, the usage of machinery guarantees the smooth flow of construction

works. Indirectly, the cost of labor may be decreased.

11.6 Materials

Materials usage should follow the specifications required. In addition, a good quality of materials also

will contribute to good workmanship. Furthermore, good quality materials are more durable and last

longer. The responsible party has the duty to see that the product furnished is in compliance with the

construction drawings and specifications.

11.7 Conclusion

While time, quality, cost, labor, machinery and materials are crucial components in order to ensure the

project implementation will be carried out properly, it is also needs the touch of good project manager

and team members. For the Medina’s construction projects, coordination and team work play

important roles in ensuring smooth project implementation. Hence, project implementation strategy

that will drive the development of The Medina will be detailed out once the proposal of this

development is approved.




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12.0 CONCLUSION

The development proposal of The Medina on the project site at Setapak, Kuala Lumpur is the most

reliable new project to be ventured into. It is because the feasibility studies carried out by emphasizing

on the location, market, economics and financial aspects; have proven that the proposal is viable and

will breed maximum return on investment.

Since our study is based on concrete data and information, the reflection of profitability is clearly seen

without any wall of doubt. It will benefit both parties; MICPM and Caliph Holdings in a way that it leads

to a ‘win-win’ situation.

Not only that the proposal will succeed in bringing profit to the developer, it will also contribute

significantly in improving the economy and social of the surrounding Muslim community. Besides, the

success of this development proposal will indirectly enhance the name of Islam as it will appear to

become an iconic development in Malaysia.

Should MICPM disregard this project, the developer will lose the opportunity to the other rival

developers that oversee the potential.

As a conclusion, the developer is advised to undertake and proceed with the proposal according to the

development composition that has been suggested in this report.




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13.0 LIMITATIONS OF STUDY & DISCLAIMER

Limitations of the study executed include the followings:

I. Assumptions and deductions made for certain variables are based on the prevailing market

data;

II. The proposed development only serves as a preliminary concept which warrants further

investigations and discussions before its final implementation.

III. The development layouts proposed are deemed to be the most appropriate development at the

time of inspection. However, the client is not bound to follow the concept proposed.

IV. No proper site level survey by the licensed land surveyor has been carried out to study the

topography of the subject property.

V. No proper advice on the geology engineering aspects ie. on soil condition has been sought.

VI. Due to the ever-increasing dynamicity of the national and global economic climate,

assumptions, conclusions and recommendations made in this report are of specific use to the

Clients intended under the current economic and market conditions. We would advise the

Clients to review this report, its findings and recommendations as deemed necessary as market

condition changes.

VII. It must be recognized that real estate market and building industry fluctuate with market

forces. The results of this study are based on the information available as at the date of this

report and the assumptions stated in this report.

VIII. This report is for the use only of the party to whom it is addressed ie. CALIPH HOLDINGS

BERHAD and is for corporate management purposes and no other purposes. Under no

circumstances will responsibility be accepted to any third party who may use or rely on the

whole or any part of the contents of this report. Any third party wishing to use this report

should obtain prior written approval from HEADQUARTER OF CALIPH HOLDINGS BERHAD.




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The Medina Report Final

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