A Theme Park - Langdon and Seah

ISSUE 4
October 2012
KDN: PP 11237/01/2013(031778)
Construction News & Views
THE QUARTERLY NEWSLETTER OF JUBM AND LANGDON SEAH GROUP
Constructing
A Theme Park
The Art of Spatial Utilisation & Efficiency
Legoland Malaysia became the country’s latest themed
attractions when it officially opened its door to the public
on 15th September this year.
Based on the colorful children’s building blocks of Lego bricks, the theme park occupies a 31-hectare land in
Iskandar Malaysia, Johor. It is the very first Legoland theme park in Asia and the sixth the world over.
Legoland Malaysia reportedly attracted more than
10,000 visitors during its opening day having sold
more than 35,000 in annual passes.
The strong crowd response is good omen for
Legoland Malaysia; large crowd turnouts are often
the key to long term sustainability and feasibility for
this particular segment.
Themed Attractions
tracks, coasters down to the operating systems
mechanics as developing an in-house system is
simply too costly.
Cost for the thematic attractions will vary depending
on the complexity involved in their implementation.
As such, the more complicated the ride, the higher
would be the cost incurred.
For the branded theme parks, this portion of
development cost is usually a set figure involving
everything from rides to façade, with the basic design
having been fine-tuned to fit the corporate branding
and the target visitors’ expectations of its attractions.
The economics in this development and operational
cost equation therefore depends very much on the
theme adopted for the park and the kind of crowd it
targets.
The theme is therefore usually “transplanted” from
similar theme parks constructed earlier inclusive of
the ride systems; which are often one of the largest
cost sub-components in such developments.
Nonetheless, a sit down by all the parties concerned
– developer, designer, construction consultants and
contractor – at the outset of a project is an important
process to allow careful mapping out of the master
plan for its long term feasibility.
The ride systems would usually come as a complete
set from a specialist manufacturer, right from the train
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JUBM - Langdon Seah
Building Works Composite Tender Price Index BWCTPI
This effectively cuts down the cost of designing each
theme park from scratch and enables designers to
concentrate more on tweaking their base design to fit
local conditions, with construction works procured
through the conventional design-build route so as to
utilize this advantage to the fullest.
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149.9 149.1 150.8
122.8
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80
20
Q3 12
20
12
11
12
Q2
20
20
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11
11
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20
11
Q2
20
10
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Q1
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10
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The advent of globally branded theme-parks such as
Legoland (with the United States’ Disneyland
arguably the illustrious flag-bearer of this genre)
meant that similar and recognizable themes are
applied throughout all projects bearing the same
brand.
150
110
152.5
155.1
160
98
For infrastructure, development costs will usually
cover land and base infrastructure and the
superstructure for the thematic facilities; which are
often developed sequentially.
Mild Expectations
19
A theme park development cost typically covers two
major cost components: firstly, infrastructure and,
secondly, the thematic attractions.
19
Cost Components
Tender prices in 3Q12 continued it’s mild growth trend with a 1.15% increase leading up of 2013. Building
materials pricing has largely remained stable despite an impressive 22.2% growth in the 2Q12 for the
construction industry; signs of there being ample supply in the domestic market to handle the ensuing increase
in demand. The biggest news thus is the slightest increase in the price of cement of about 1% in September.
Barring any major event impacting the local (and regional) construction industry, tender prices are likely to stay
subdued for an overall construction inflation figures of between 3 – 5% this year, a trend which may continue
well into 2013 as the global economic recovery slowly takes place.
Published by: JUBM Sdn Bhd (27638-X) in collaboration with Juru Ukur Bahan Malaysia and Langdon & Seah Sdn Bhd.
2, Jalan PJU 5/15, Kota Damansara, 47810 Petaling Jaya, Selangor Darul Ehsan, Malaysia. Tel: 03 6156 9000 Fax: 03 6157 8660
The Construction News and Views is published quarterly, and circulated on a complimentary basis to staff and business associates.
Printed by: Miracle Offset Print Sdn Bhd (KDN: PQ1780/3856) No.15, Jalan PBS 14/3, Taman Perindustrian Bukit Serdang, 43300 Seri Kembangan, Selangor.
CONSTRUCTION NEWS & VIEWS
ISSUE 4
October 2012
FROM PREVIOUS PAGE
Master Plan Development
Why this is so is not difficult to ascertain.
Theme parks have but one objective in being able to
draw in consistently high traffic volume of visitors.
In the case of a readily available global brand, the
input for a design that draws in the crowd is less of a
problem.
There is a ready template to cater for this particular
objective and the target audience will also basically
know what to expect.
How the theme park utilises its available space
optimally for both attractions and the crowds’ leisure
activities is therefore a key factor to its long term
success in continually receiving high numbers of
visitors.
Spatial Optimisation
Positive experience comes usually from a combination
of factors from meeting of the visitors’ expectations,
prompt and efficient provision of services to the
comfort accorded from the optimal use of space.
Space to move around, to enjoy snapshot moments,
to recover from drawn-out walkabouts, to assuage
impromptu hunger pangs… all these adds up the
enjoyment factor.
This would help in managing the traffic and
directional flow of the visitors and strike a balance in
the distribution of the attractions to avoid bottlenecks.
As such, the input from developers (and operators) is
important in designing the project Master Plan
especially in the matter of projected visitors’ traffic.
Base Infrastructure
The construction phase could be implemented once
a balance is achieved and agreed to by the
developer as regards the use of available space for
both leisure activities and the thematic attractions.
As mentioned at the start of the article, the
infrastructure forms the base construction in the
development of a theme park. The thematic attractions
– rides, showcases, street and landscapes, fixtures
and facades – are meanwhile typically specialist
items differentiated in the overall development cost.
The initial construction phase is usually bare bone as
what are basically erected and build are the
superstructures for the theme park’s attractions - the
foundational base for the rides in anchor points,
concrete grouting, building carcasses – and the
operational support facilities.
Ample space for parking needs and publictransportation friendly facilities.
Utilisation of space is however also a critical
economic equation for the theme park operator. At
the same time of providing the kind of comfort zones
for the visitors, a theme park has to cater for the
thematic attractions; the very item which drew the
crowd in the first place.
A functional and popular layout often adopted by
developers of theme parks is usually the “hub and
spoke” approach as popularised by Disneyland which
utilizes a main attraction icon as the hub from which
all other thematic attractions would fan out from or
surround; thus maximizing overall crowd holding
capacity.
Furnished Theme
There is no denying that building a theme park is a
highly complex business, especially since each
development would want to stand out as unique and
exclusive.
Careful planning and designing from the outset
of the project goes hand in hand with meticulous
attention to pre-determined construction
implementation to not only ensure adherence to
budget, set timelines but also its long term feasibility.
Finding this balance in development cost distribution
is a tricky exercise. Get it right, though, the traffic
volume will provide ample evidence of a successful
meeting of the audiences’ needs and expectations.
2013
Wide boulevard and pedestrian walkways for
comfortable ambling and strolling.
Proper segmentation as to avoid over capacity in
specific locations.
Careful attention to the Master Plan is needed at
every point of the construction stages to ensure the
superstructures are in place to allow the envisioned
theme park to surface.
Budget
In other words, getting everything the right size. For
example:
Directional routes to ease multiple crowd
attractions.
These superstructures will provide the building base
from which the themed façade and cladding would
eventually be finished and furnished prior to the
completion of the project.
What’s in it for the Construction Sector
Fast facts: Rapid growth phase at 15.5% (estimated) for 2012 from 4.6% in 2011 and projected at 11.2%
for 2013.
Direct Allocations
Projects under the Economic Transformation Programme (ETP) ..................................... RM9.4 billion
Phase 2 of the East Coast Highway from Jabor to Kuala Terengganu
Upgrading and expansion of Sibu Airport
Phase 1 of Mass Rapid Transit project from Sungai Buloh to Semantan
Affordable Housing ................................................................................................................. RM1.9 billion
80,000 units of between RM100K to RM400K nationwide under the 1Malaysia People’s Housing Programme
(PR1MA)
23,000 units by Syarikat Perumahan Nasional Berhad and another 20,000 units by Jabatan Perumahan
Negara
30,000 units by private developers to be sold at 20% below market price via the Housing Facilitation Fund
Revival of 30 abandoned housing projects nationwide via tax incentives
Extension for stamp duty exemption (by 50%) to 31 December 2014 with price limit on residential properties
raised to RM400,000 (from RM350,000 previously)
My First Home Scheme (MFHS) minimum income requirement increased to RM5,000 (individual homebuyers)
and RM10,000 (joint income for spouses) for properties up to RM400,000 in value
Revision of the Real Property Gain Tax (RPGT) by 5% to 15% (houses sold within 2 years of purchase) and
to 10% (between 3 and 5 years)
Indirect Allocations
Public Utilities ......................................................................................................................... RM6.4 billion
Building of new treatment water plants
Improvement of urban drainage
Improvement of basic infrastructure in the rural areas of Sabah and Sarawak
Trade and Industry Development .......................................................................................... RM1.9 billion
Upgrading of infrastructure facilities in major industrial areas
Cost Management & Quantity Surveying | Capital Tax Allowances | Cost Engineering | Due Diligence | Project Monitoring
Sustainable Construction | Insurance Valuations | Legal Support | Project Management | Management Consultancy | Research Studies
CONSTRUCTION NEWS & VIEWS
ISSUE 4
October 2012
Project Overview:
LEGOLAND
@ Nusajaya Iskandar
LEGOLAND Malaysia is located in Nusajaya, Johor
and was officilally opened on the 15 September 2012.
Themed for family fun, LEGOLAND Malaysia has more
than 40 interactive rides, shows and attractions packed
in its 31 hectares site. The theme park is also the first in
Asia under the LEGOLAND global brand.
LEGOLAND Malaysia has seven themed areas of
attractions for all ages, i.e. The Beginning, Lego
Technic, Lego City, Lego Kingdoms, Land of Adventure,
Imagination and Miniland.
One of its main attraction is the Miniland, where Asian
landmarks were recreated using more than 30 million
Lego bricks. Not merely a cutesy background for photo
sessions, the Miniland is an interactive world where
people, trains and aeroplanes come to life at the touch
of a button.
: Iskandar Investment Berhad
Client
Project Manager : Iskandar Development
Management Services Sdn Bhd
Completion Date : September 2012
: Full Quantity Surveying Services
JUBM’s Role
The tally of points awarded by four judges saw 1st
place winner O’Rangers with a mere 0.16 points in
victory over 2nd place winner, Pink Panther, each
scoring 102.82 and 102.66 points respectively.
Team White Knight out-bowled the rest of their JUBM-LS
Sports and Recreation Club compatriots and clinched top
position yet again in the annual 10-pin Bowling competition.
The team scored a total of 4,118 pin falls to leave
O’Rangers (3,900) and Gold Digger (3,864) in
second and third place respectively in the event
played at the Pin Junction e@Curve on the 22nd
September 2012.
O’Rangers’ Hanizah Yahya (425 pinfalls) however
managed to stop a complete rout by the White
Knighters by dislodging last year’s Best Female
Bowler, White Knight’s Norhayati Tambi (358), who
dropped to third.
White Knight’s Gilbert S. Diamal added icing on the
championship “cake” by scoring 457 pin falls enroute
to defending his Best Male Bowler win of 2011.
Project Management Department Head Rozila
Abdul Rahman presented the prizes after close of
the game.
On the Side… close margins
decide winners in environmental
photo contest
Green Power took third place with 96.64 points in the
contest that saw all seven SRC teams submitting 10
photos each.
Each team submitted photographs to depict the
contest theme of “Nature’s Environment”
with points awarded on overall presentation,
creativity and aesthetics.
Meanwhile, the closest of margins
separated first and second place
winners in the 2012
Environmental Health
and Safety Photo
Contest held from
25th June to 13th
July 2012.
The JUBM-Langdon Seah Group is a multidisciplinary regional construction and property consultancy with over 3,000 people across Asia.
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www.LangdonSeah.com
CONSTRUCTION NEWS & VIEWS
ISSUE 4
October 2012
Unemployment, foreign investors, 2nd and 3rd MRT lines for KL
main factor in minimum wage
awaiting Govt approval
Malaysia needs a national steel
policy
Human Resources Minister Datuk Seri Dr. S.
Subramaniam said the unemployment rate and
implications on the entry of foreign investors were
some of the main factors considered by the
Government in setting the minimun wage at RM900.
The Malaysian Iron and Steel Industry Federation
(MISIF) is proposing for a national steel policy to
enable a more coordinated development of the
strategic industry.
Subramaniam said a much higher level would affect
the operation of firms resulting in the retrenchment of
workers.
He said the government also took into consideration
two important aspects in determining the minimum
wage rate, namely basic necessities and the ability of
employers to pay.
Subramaniam said the minimum wage rate would be
reviewed at least once in two years to evaluate its
effectiveness.
The Government is expected to decide on the 2nd
and 3rd mass rapid transit lines early 2013 having
completed the feasibility studies on their construction.
Performance Management & Delivery Unit
(Pemandu) director of urban public transport &
greater Kuala Lumpur Datuk Ahmad Suhaili Idrus
said the second line will be an orbital circle around
Kuala Lumpur.
The third line - part of a mega infrastructure project
aimed at decongesting traffic in Kuala Lumpur - will
run from Selayang to Seri Kembangan.
Source: The Star... Oct 16, 2012
Thie policy should include provisions on the sourcing
of raw materials at competitive prices, critical for the
production and price-competitiveness of its various
mid-stream and downstream products.
Source: Sun… Oct 9, 2012
Big issues on future of RM40bil
steel sector
Malaysian Iron and Steel Industry Federation (MISIF)
chief executive officer Sia Han See said steel
consumption should show continued growth this year
and possibly through 2014.
Source: Sun... Oct 18, 2012
This growth will be supported mainly by strong
expansion in the construction sector.
Govt may defray infrastructure
costs for building affordable
homes
The government is considering defraying infrastructure
costs so that private developers can build more
houses at below market price.
Prime Minister Datuk Seri Najib Tun Razak said the
government could provide a certain amount for
infrastructure costs and thus enable private
developers to build houses at much lower prices.
Najib said the 1Malaysia Housing Programme
Corporation (PR1MA) have been asked to hold
discussions with private developers to come up with
a second model to build more affordable houses.
Source: The Edge... Oct 17, 2012
Slower Q3 growth likely
Second Finance Minister Datuk Seri Ahmad Husni
Hanadzlah said Malaysia's gross domestic product
(GDP) for the 3rd Quarter will be lower due to the
reduced trade figure recorded for that quarter.
Malaysia's total trade in August fell to RM104.84bil
compared with RM106.17bil in the same month last
year mainly due to the global economic conditions.
Ahmad Husni however said the country is still on
track to achieve the 4.5% to 5% targeted GDP
growth for 2012.
The economy strengthened to 5.4% in the 2nd
Quarter 2012 against 4.9% the preceding quarter, led
by continued expansions in the services and
manufacturing sectors.
Source: The Star... Oct 17, 2012
Malaysia's deficit drops to 4.82
per cent of GDP
Malaysia's deficit dropped to 4.82 % or RM42.51
billion of the GDP last year from 5.64 % the previous
year.
Sia noted also the continued risk of a downside trend
from concerns over sovereign debt issues in Europe
and the continued slowing down of regional
economies.
Source: The Star… Sep 24, 2012
The 2011 Auditor-General's Report said the
government had borrowed from within and outside
the country to offset the deficit last year.
Construction industry to see
stronger growth
Domestic borrowing consists of treasury bills,
government investment issues, Malaysian Government
Securities, Sukuk, borrowings from financial institutions,
and loans and foreign aid from the loan market.
The Construction Industry Development Board
(CIDB) expects the construction industry to see
strong growth from the current “boom time” as more
projects come on-stream.
Source: Sun... Oct 15, 29012
Jalan Sultan Ismail projects
will unlock value in the prime
location in KL
The redevelopment of some of the buildings in Jalan
Sultan Ismail will help unlock value and meet the
future demands of the Greater Kuala Lumpur.
CIDB chief executive Datuk Seri Judin Abdul Karim
said the robust growth trends should help the sector
achieved a year-on-year growth of at least 20%.
Such strong growth would have a positive multiplier
effect on the country from spin offs to other parties in
the construction chain, he said.
Source: The Star… Sep 11, 2012
This includes:
Permodalan Nasional Bhd (PNB)’s demolishing of
the former MAS building’s podium for the building
of a 50-storey tower hotel with six levels of
basement parking.
Tradewinds Corp Bhd’s demolishing of the Crown
Plaza Mutiara Hotel and Kompleks Antarabangsa
for a mixed-development project called Tradewinds
Centre.
One of the prime locations in the city, Jalan Sultan
Ismail fetches rental rates of RM5 per sq ft compared
to RM8 to RM10 per sq ft in KLCC.
Source: The Star... October 15, 2012
Disclaimer
The Construction News and Views provides a synopsis of the news, views and topical issues related to the construction industry, and is intended for information purposes only.
Whilst every care is taken to ensure accuracy and completeness, no reliance should be placed on any part of its contents. All rights reserved.
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