Analysis of Awareness of Real Estate Investment Trusts

Analysis of Awareness of Real Estate Investment Trusts Investment in general, and property investment in particular, have been traditionally regarded more as an art than a science, where investors, decision-makers and analyst rely more on their experience, subjective judgement and quantified evidence. Real Estate Investment Trust or REITs is a new medium of investment specifically in property investment in Malaysia. Malaysia is the first country in Asia to introduce property trust and only in 1989 was listed in Kuala Lumpur Stock Exchange. The property trust was then facing some issues such as potential conflict of interest, a lack of focus on asset management and thin trading volume and then led the Real Property Investment Trust to be announced. REITs in Malaysia growth perfectly with stimulate the growth of property sector in this country. Malaysia then introduces the first of its new REITs, with the Axis REIT. YTL Corporation, Malaysias biggest builder, established the second REITs later, with properties in the REIT including the JW Marriott Hotel and Starhill Shopping Center in Kuala Lumpur. Besides that, other REITs that now established in Malaysia are Hektar REITs, Tower REITs, and also UOA REITs. Other companies in Malaysia that are expecting to join for REITs include Sunway City and the Landmarks Group. Most of the REITs companies in Malaysia own the real property asset such as shopping malls, hotels and also apartment buildings and they generate income from owning the building and also rental income from the buildings. The investors physically own a part of the building depending on the size of the share that they invest. Through REITs, investors can invest any amount that they want to own REITs. They can sell it anytime with the easiest way through stocks market. Compared to normal properties, the transaction cost of buy and sell REITs are much lower. But REITs does not like other unit trust, which is sold through agents or other peoples, but it is traded in stock exchange. So it gives return to investors in form of dividend and also capital appreciation from price change. This way, shows that REITs is a secured investment that protect investors interest and it works under the guidelines or frameworks that have been set up by government. Background: The investment characteristics of property are significantly different from the characteristics of assets in other investments. REITs in Malaysia is so attractive as Malaysia now is developing country. There is still a gap between Malaysia and others develop country in Asia. In order to put Malaysia in same level with Asia develop country, most of REITs managers are with option and plan to growth their property portfolio to trade or manage rental in order to achieve it. It also will give a better yield for investor if our country is same level with others. In order to improve market performance of REITs, the REITs Company should consider developing new opportunities, acquiring more properties into their portfolio and also to some countries, or joint developing property project. The relation of both legal frameworks and the market performance will give a picture to investor and other people who interested in this investment. The REITs sector need to provide more chance to other people to invest and it will help Malaysian generate more income others than monthly salary and to boost up economy in this country. Research Question: Finance in real estate is just a popular way of investment nowadays. The market performance of REITs shows the good results this few years. With the regulation that set up by government, surely REITs is the secured investment. But is there many people in Klang Valley that come from middle-income group realise about this investment in this develop country? Objectives: The main objective of this study is to determine the level of awareness towards REITs among middle-income group in Klang Valley. In line with above, this study also seeks to study types of REITs available in Malaysia Besides, these study also to discuss about the way to introduce REITs in Malaysia in order to make REITs the favourable investment medium. Scope of Study: In overall, this research is confined to REITs in Malaysia which in an attractive investment nowadays. This study covers the types of REITs available in Malaysia and also people awareness about it. Other than that, this study is carried out to know what is the way of promoting REITs that people prefer. Methodology: This research would be done in an analytic study manner. The information that is needed to examine the issue will be obtained from primary and secondary data. The primary data refers to the first-hand data, which required data collection that is the distribution of questionnaire. The questionnaire will be distributed to certain amount of Malaysian with a different background. Secondary data or desk research refers to the data that already exist, mostly in quantitative form. In this study, most of the secondary data were obtained from; Academic research on REITs and journals. Website of REITs Company. Other dissertations. Data analysis will be done through frequency analysis. Frequency analysis is used to determine the frequency of certain choice for the questions. Most frequent answer will be given the priority. The results will be shows in diagram or graph to show the popularity answers. Significance: It is hoped that the anticipated outcome of this study can benefit the: The REITs Company where they will more alert toward the middle-income people awareness of REITs and the way people wanted REITs to be promoted. The interested investor and also the student, as a reference on the information that relates to REITs. Organisation of Research: This study consists of five chapters where the first chapter provides a brief concept and view on the topic that will be studied in this research. It consists of introduction, objective of study, scope of study, significance on research and also organisation of research. Chapter two discuss on literature review about REITs in Malaysia. The discussion will be on definition of REITs, the types of REITs in Malaysia and also the list of REITs companies. Other than that, the discussion also will describe on how REITs work and also the benefit of REITs. The definition on middle-income people and background of Klang Valley also will briefly explain. The next chapter, chapter three is on methodology. In this chapter, methods used to construct the questionnaires will be outlined. This chapter will highlight how the administration of the questionnaire which will conduct to respondents. Chapter four is the finding and analysis of data obtained through questionnaires survey. The analysis of data obtained will determine the level of awareness towards REITs among middle-income people in Klang Valley. Through the survey, the preference way of promoting REITs also can be discover. The last chapter, which is chapter five, is the conclusion and limitation of this study. The best suggestion of promoting REITs also will be stated in this chapter. The weaknesses and strengths of the study may be included. Some suggestions for further study will also be included in this study. In the next chapter, a review of related information about REITs will be explained. The explanation will cover definition, types, how REITs work, REITs companies in Malaysia, the legislation of REITs Islamic REITs and also the future prospect of REITs. Chapter 2: Literature Review: LITERATURE REVIEW: REITs which stand for Real Estate Investment Trust is an investment that relates to properties. Trust fund has been introducing in this country since 1986, but REITS; a part of trust fund is a new medium investment only famous around few years back. REITs is an investment vehicle for investors to invest in large-scale income producing real estate. With the concept like unit trust, this investment gathers pool of money from all sizes of investors. REIT based companies will invest, manage and distribute rental as dividend back to the investors by yearly basis or depends on the agreement that have been signed before.REITs is a liquidity investment which It is being trade in Bursa Kuala Lumpur with ease of buy and sells back like a normal equity. As the years flow, REITs is not new to the world especially in many other developed countries. REITs usually targets for a long term investor with moderate risk such as insurance companies, unit trust funds and even individual investors. REITs invest in a variety of real estate properties such as office buildings, shopping malls, warehouses, apartments and hotels. The investor also has the added advantages of holding a liquid asset in the form of shares that can be sold on the market unlike the real estate itself which is illiquid. Investing in REITs provides the investor with dividend income and also allows them to own a real estate portfolio rather than just a single building. This chapter then will briefly explain about Klang Valley, middle-income group, history of REITs in Malaysia, types of REITs, how REITs work, and REITs companies and also about the legislation of REITs. Klang Valley: My research focus on awareness towards REITs among middle-income people in Klang Valley, Malaysia. Malaysia is located in Southeastern Asia, peninsula bordering Thailand and northern one-third of the island of Borneo, bordering Indonesia, Brunei, and South China Sea, south of Vietnam. It is comprised of two separate geographical regions which are Malay Peninsular and the states of Sabah and Sarawak. Klang valley is an area in Malaysia comprising Kulala Lumpur and its suburbs, and adjoining cities and towns in the state of Selangor. Tis valley is named after Klang River, the principal river that flows through it which is closely linked to the early development of the area as a cluster of tin mining towns in the late 19th century. Development of Klang Valley took place largely in the area between Gombak and Port Klang but the urban areas surrounding Kuala Lumpur have since growth towards the border of Negeri Sembilan and the north towards Rawang. Klang Valley has a total population around 7.6 million people in 2009 and estimated to growth due to the people migrate from other states towards Klang Valley and also a population growth. Klang Valley is the heartland of Malaysias industry and commerce. Regions of Klang Valley and their corresponding local authority: Federal Territory of Kuala Lumpur. Kuala Lumpur City Hall. Federal Territory of Putrajaya. Putrajaya Corporation. Selangor district of Petaling. Shah Alam City Council. Petaling Jaya City Council. Subang Jaya Municipal Council. Selangor District of Klang. Klang Municipal Council. Selangor district of Gombak. Selayang Municipal Council. Selangor district of Hulu Langat. Ampang Jaya Municipal Council. Kajang Municipal Council. Selangor district of Sepang. Sepang Municipal Council. For further information about the location of Klang Valley. Middle-Income Group: There are three classes of income in Malaysia. These classes indicate Malaysian monthly income and also their household. The three (3) classes including low-income people, middle-income people, and high-income people. Below is the income groups in Malaysia. Middle-class income is define as the socioeconomic class between the working class and the upper class, usually including professionals, highly skilled labourers, and lower and middle management.( Source: http://www.answers.com/topic/middle-class). Background of REITs in Malaysia: Malaysia is the first country in Asia to introduce property trusts. In 1989, the first trust was listed in Kuala Lumpur Stock Exchange. The regulatory framework of property trust, approved by the Bank Negara in 1986, was restrictive and provided no tax transparency. But there still an issues that arise such as lack of focus on property management and also conflict of interest which led the property trust to be private. In 1995, a revision of the property trust guidelines were done but it fail to give a good impact to investors and also to market. Then, in February 2005, there is another revision with led the property trust be renamed as Real Property Investment Trust (REITs). The major income of REITs is from rental and the profit is required to distribute to holders or investors in dividend. The guidelines also been revised to provide a good regulation for a REITs in this country. Malaysia was the first Islamic country to certify REITs and also the first country in Asia where REITs conquer agriculture land. A plantation REITs also much like conventional REITs. It will be the crops planted on the land and the success will depend on the sizes of assets injected to the trust. The potential plantation to be expected is oil palm because of the high demand on the production. Other than that, palm oil also undergoing the research to become a biodiesel product and in become more attractive after the increasing in oil prices. The plantation land or agriculture land also can be developed to residential area or commercial area due to the development of town. Types of REITs: REITs has several types with drives to a different prospect of REITs but it still relates to property as a main core to invest on. In others country they apply a lot of types of REITs. But in Malaysia we only apply three types of REITs. There are Equity REITs, Mortgage REITs and also Hybrid REITs. Equity REITs: Equity REITs is a publicly traded company that, as its principal business, buys, manages, renovates, maintains and occasionally sells real properties. (block,2006).Properties are usually purchased to invest is an income-producing real estate such as hotels, shopping malls and also apartment buildings. This type of REITs is different from others because REITs usually companies will purchase or develop the property and operate it as a part of their portfolio rather than sell it. Besides, Equity REITs is a long term investment because they earn dividend from rental. In additional, this type will let investors not only just to choose the type of property they want to invest in, but also the location of the properties. (Block, 2006). It means that the investors can make a choice on their own with the advice of the agent or REITs managers in order to make a good investment and to gain a good dividend. Mortgage REITs: A mortgage REITs is a REITs that focus on makes on holds loans to the property developers. (All about Investing: The Easy Way to Get Started by Esme Faerber: page 89). Rather than investing in properties,this type of REITs sometime loans money for purchase existing mortgages. The revenue earns is from the interest charge on the mortgage loans and pass on shareholders. Mortgage REITs is more sensitive compare than other REITs because of the prices of mortgage REITs react opposite from interest rates. It is good REITs to invest if there is a rumour of dropping in interest rates. Hybrid REITs: Hybrids combine the investing principles of mortgage and equity REITs, diversifying between making mortgage loans and direct property ownership. They earn both rental and interest income. (http://www.allaboutskyscrapers.com/REIT_types.htm). They buy, develop, and manage the properties and provide financing through mortgage loans. Most hybrid REITs have a stronger position in their financing account. The most famous industry that using hybrid REITs is private healthcare industries, where the financial company will provide mortgage to healthcare company, hospital management and also to buy properties such as land and building and also medical appliances. Equity REITs seem to be the most popular REITs recently. Between three types of REITs, mortgage REITs is the most risky which in involve in lend money to developers. Every type of REITs has different level of risk so investors should study and evaluate which REITs they want to invest in. The wise result will make the investors smile widely because of the big fish. Chan, Erickson and Wang (2003) find that equity REITs pay out more dividends than mortgage REITs. The reason is that equity REITs offer the potential for capital gains in addition to current income. Structure of REITs: Source: Practice and Prospect of Islamic Real Estate Investment (I-REITs)in Malaysian Islamic Capital Market by Dr. Asyraf Wajdi Dusuki. Manager: A man or woman who controls an organization or a part of organization. Property manager: A man or woman who controls the management and maintenance of the building. He or she will ensure the building in the good condition which safe to fit tenants in. Tenant: A person who pays money (rent) to the owner of a room, flat, building or piece of land so that he or she can live in it or use it. Trustee: A person who looks after money or property for somebody else. Unit holder: An owner of one or more units in a mutual fund. How REITs Works: Its true that investment most favourable today will be the one most prized tomorrow, and then real estate is definitely due for love-in. Investing in income-generating real estate can be a great way to increase your net worth. But for many people, investing in real estate, particularly commercial real estate is simply out of their budgets. REITs is a saviour to people when with REITs people can invest in small amount but with a large-scale of real estate group. REITs which means real estate investment trust essentially the organization that own and manage a portfolio of real estate and mortgages such as shopping malls, hotels, apartment buildings and also agriculture lands. REITs does not mean for a restrict group, but this share can be own buy anyone. REITs offer people the ownership of the property without any risks because all of the problems will be covered by agents or REITs managers. There are advantages when investing in REITs because of the liquidity and diversity. It is unlike actual real estate, where REITs can be easily and quickly sold. People will face less financial risk because of investing in a portfolio rather than single building because of the problems such as irresponsible tenants, economy impact to the property rental market and market value, and so on. REITs has a board of directors that elected by the shareholders. The shareholders have a power to eliminate any board of directors that does not fulfil their requirement. The board of directors usually came from a people with an investment background especially in REITs field. They will assist a REITs managers; person who will manages the operation of the property. The power to choose what types of real estate to invest in is on board of directors. REITs investment for investors starts when they invest certain amount of money in a REITs fund. The amount of money depends on the REITs managers who will arrange the investment on the properties that have been agreed by board of director. The investors can have an eyes and ideas on what types of the properties and the location. They have a choice whether want to agree or not with the properties. If they agree with the properties, they can sign a document to clarify the investment. Then the properties will be rent out or mortgage in order to earn money. REITs has a several method to measuring the profit but the suitable one called Funds From Operation (FFO). The National Association of Real Estate Investment Trusts (NAREIT) defines FFO as: Net income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. Source: http://home.howstuffworks.com/real-estate/reit2.htm. The REITs industry use FFO to measure performance and to establish dividend payouts. Kallberg et al (2003) reported that REITs consistently pay out about 85% of FFO as dividends. The payouts from REITs are consistently higher than other types of equities. In other words, FFO is defined as the net income, excluding gains and losses from debt restructuring and property sales, adding back property depreciation and amortisation, and after adjustments for unconsolidated partnership and joint ventures. The net income is referring to rent and sales computed according to Generally Accepted Accounting Principles (GAAP). However FFO is not a necessary way to determine performance and dividend payouts. Not all REITs calculate FFO according to the NAREIT definition because some of the important items are missing from the formula such as maintenance, repairs and also expenses. Thus, investors must always read a companys report and any others supplemental information in order to get an exact FFO. REITs Companies: In Malaysia, there are several amount of business runs base on REITs. These companies have been success to put property market in this country in a good condition. These companies also expend the real estate industry with so much new types of building. Below is briefly an explanation about ten (10) well known REITs companies. Al-Aqar KPJ: Al-Aqar KPJ REITs established on 28 June 2006 is a Malaysian-based unit trust. The objective of this investment is to own and invest in Syariah-compliant real estate and it has been acceptable to invest in properties which compromise Ampang Puteri Specialist Hospital Building, Damansara Specialist Hospital Building, Johor Specialist Hospital Building, Ipoh Specialist Hospital Building, Puteri Specialist Hospital Building and Selangor Medical Centre Building. There are nine (9) others hospital under KPJ that potential to be injected under Al-Aqar KPJ such as Tawakal Hospital, Seremban Specialist Hospital and also Penawar Hospital. Amanah Raya: Amanah Raya REITs is subsidiary of Amanah Raya Berhad and wholly-owned by Minester of Fianace Incorporated. Amanah Raya REITs listed on Bursa Securities Malaysia Berhad on 26 February 2007 with a total asset siza of RM337 million. Today, Amanah Raya REITs has a diversification portfolio comprising hospitality, education and also commercial properties such as SEGI College, Holiday Villa Langkawi, Holiday Villa Alor Star, Wisma Amanah Raya Berhad, Wisma UEP, Permanis Factory and also Blocks AB South City Plaza. AmFirst: Established on 28 September 2006 under the Trust Deed, AmFIRST then entered into between Am ARA REIT Managers and Mayban Trustee Berhad. AmFIRST managed by Am ARA REIT Managers Sdn Bhd. Three months then, Am FIRST was listing on the Main Board of the Bursa Saham Malaysia Berhad on 21 December 2006. It shows an innovative makeover of AmFIRST, the first listed property trust fund in Malaysia. This REITS company is the largest Malaysia-based commercial REITs with exposure to the office, retail and hotel sector in Klang Valley area. Currently manages six office building, where three are located within the Kuala Lumpur Golden Triangle; AmBank Group Leadership Centre, AmBank Group Building, and also AmBank Tower, and one each in Petaling Jaya, Kelana Jaya, and Subang Jaya. AmFIRST also manages four-star hotel and a retail mall located in Subang Jaya, The Summit Subang, USJ. Atrium: Atrium REITs is a first logistic property approved in Malaysia. The objective of Atrium REITs is to invest in portfolio in order to reward investors or unit holders a maximise income and to acquire a high quality assets to achieve a long-term growth in a net income for distribution of dividend. This REITs then was first approved by the Securities Commission in October 2006 and then listed on Main Board of Bursa Saham Malaysia Berhad in April 2007. Atrium REITs has an 809, 668 sq ft (75, 220 sq mt) approved portfolio of investment properties which comprises of four freehold industrial properties currently leased to reputable and strong financially tenants. All of their properties located in Kuala Lumpur and Selangor, the fastest growing area in this country. Axis: Axis REITs is the first REITs list on Bursa Malaysia Securities Berhad on 3 August 2005. On 11 December 2008, Axis launched Islamic REITs which is the first in Malaysia. Axis own diversified portfolio of properties especially in Klang Valley, Kedah and Johor comprising of commercial offices, light industial building and also warehouse. Buildings that portray an image of Axis are Axis Tower and also Crystal Plaza. Both if this building are next door to each other and located along the busiest road, Federal Highway. These buildings are well maintain and easier accessibility. Other Axis properties are Delfi Cocoa in and BMW Asia Technology Centre PTP in Johor and also Giant Hypermarket in Sungai Petani, Kedah. Hektar: Hektar REITs is a Malaysias first retail-focused REITs. Listed on the Main Board of Bursa Saham Malaysia Securities on 4 December 2006, Hektar portfolio currently consists of shopping centres in Subang Jaya, Melaka and Muar. As of 31 December 2009, all of these properties was value of RM720 million. Hektar REITs is managed by Hektar Asset Management Sdn Bhd which a part of Hektar Group. QCT: QCT (Quill Capita Trust) REITs was listed in Main Board of Bursa Malaysia Securities Berhad on 8 January 2007. QCT is managed by Quill Capita Management Sdn Bhd. QCT main investment in REITs is a commercial properties. Until 31 December 2009, QCT has ten (10) properties with 1,288,149 sq ft net lettable area valued RM 788.4 million. The properties including part of Plaza Mont Kiara, Quill buildings, Wisma Technip and also tesco building in Jelutong, Penang. Starhill: This REITs was established on 18 November 2005 by a trust deed entered between Pintar Projek Sdn Bhd and Mayban Trustee and listed on Main Market of Bursa Malaysia Securities Berhad on 16 December 2005. Starhill REITs is focusing on retail and hotel properties investment. As for February 2010, Starhill REITs is the largest Malaysias real estate investment. This REITs has four (4) portfolio located in the heart of Kualu Lumpur; Starhill Gallery, JW Marriot Hotel, Lot 10 Shopping Centre and also The Residence at The Ritz-Carlton. Tower: Tower REITs is established on 21 February 2006. The objective of this company is to invest primarily in a portfolio of quality office building and commercial properties to provide regular and stable distributions of dividend to unit holders or investors and also to achieve a medium-term growth in the net income. In order to achieve their objective, Tower REITs implement several key strategies such as optimisation of capital structure, active asset management and also acquisition growth. The portfolio of this REITs company consists of three buildings located in Kuala Lumpur. First is Menara HLA, the 32-storeys office tower located in the heart of Kuala Lumpur Golden Triangle. With a net lettable area of 396, 820 sq ft, it has a blue chip tennats such as Hong Leong Assurance Berhad. Next, HP Towers comprises of two blocks of 9-storeys and 21-storeys and 3 levels of connecting podium. Situated in Bukit Damansara, this towers has a net lettable area of 350, 056 sq ft with a Hewlett-Packard (M) Sdn Bhd as a tenants. Lastly, Menara ING situated in Jalan Raja Chulan, the main central business district of Kuala Lumpur. Tower REITs only own 78.3% of the total share unit of the building and 100% leased out to ING Insurance Bhd. UOA: nbsp  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  UOA REITs was established on 28 November 2005 and listed on the Main Board of Bursa Saham Malaysia Securities Berhad two days later. UOA REITs is focusing on commercial properties. With a diversification portfolio of properties, UOA manages to maintain four building in Kuala Lumpur area. First is UOA Centre, a stylish 33-storeys office building situated between Jalan Pinang and Jalan Perak. Tenants of the building include financial services companies and also trading companies. Next is UOA II which located near to UOA Centre. With a contemporary designed, this 39-storeys building has a mixture of tenants from government agencies, multinationals insurance companies and law firms. Other than that, a 13-storeys office building located in Jalan Dungun, Damansara Heights name UOA Damansara is one of the UOA properties. Law firms, international associations and trading companies are a part of tenants for this building. Last is UOA Pantai located strategically in front of Menara TM. This 7-storeys of building consists of tenants include multinational corporations and so on. Regulation of REITs: In Malaysia, REITs govern by a statutory body name Security Commission Malaysia (SC). SC was established on 1 March 1993 under the Securities Commission Act 1993 and it is a financial regulatory agency. It is the central authority to regulate and develop the capital market. SC has big responsibilities in order to ensure the safety of the investors under the Act includes: Registering authority for prospectuses of corporations other than unlisted recreational clubs. Approving authority for corporate bond issues. Regulating all matters relating to securities and future contracts. Regulating the take-over and mergers of companies. Regulating all matters relating to unit trust schemes. Licensing and supervising all licensed persons. Supervising exchanges, clearing houses and central depositories. Encouraging self-regulation. Ensuring proper conduct of market institutions and licensed persons. Source:http://www.sc.com.my/main.asp?pageid=350menuid=376newsid=linkid=type= New Islamic REITs: The introduction of Islamic REITs is viewed as one of the most significant initiatives to broaden and deepen the product base of Islamic capital market in Malaysia. It can also help to enhance competitiveness of Malaysian Islamic capital market by attracting global Islamic investors who wish to diversify their investment portfolio which are Shariah compliant. Islamic REITs regulation was outlined in the Guidelines for Islamic REITs issued on 21st November 2005 by Securities Commission. (Securities Commission,2005). The Guidelines were introduced to facilitate the development of new Islamic capital market products, making Malaysia the first jurisdiction in the global Islamic financial sector to issue such guidelines and setting a global benchmark for the development of Islamic REITs. The Guidelines essentially stipulate Shariah compliance criteria to guide management companies in their activities relating to an Islamic REITs, including the types of Shariah permissible and non-permissible rental and investment activities for such fund. Islam prohibited Muslim from investing in properties whose tenants sell alcohol, pork or allo Analysis of Awareness of Real Estate Investment Trusts Analysis of Awareness of Real Estate Investment Trusts Investment in general, and property investment in particular, have been traditionally regarded more as an art than a science, where investors, decision-makers and analyst rely more on their experience, subjective judgement and quantified evidence. Real Estate Investment Trust or REITs is a new medium of investment specifically in property investment in Malaysia. Malaysia is the first country in Asia to introduce property trust and only in 1989 was listed in Kuala Lumpur Stock Exchange. The property trust was then facing some issues such as potential conflict of interest, a lack of focus on asset management and thin trading volume and then led the Real Property Investment Trust to be announced. REITs in Malaysia growth perfectly with stimulate the growth of property sector in this country. Malaysia then introduces the first of its new REITs, with the Axis REIT. YTL Corporation, Malaysias biggest builder, established the second REITs later, with properties in the REIT including the JW Marriott Hotel and Starhill Shopping Center in Kuala Lumpur. Besides that, other REITs that now established in Malaysia are Hektar REITs, Tower REITs, and also UOA REITs. Other companies in Malaysia that are expecting to join for REITs include Sunway City and the Landmarks Group. Most of the REITs companies in Malaysia own the real property asset such as shopping malls, hotels and also apartment buildings and they generate income from owning the building and also rental income from the buildings. The investors physically own a part of the building depending on the size of the share that they invest. Through REITs, investors can invest any amount that they want to own REITs. They can sell it anytime with the easiest way through stocks market. Compared to normal properties, the transaction cost of buy and sell REITs are much lower. But REITs does not like other unit trust, which is sold through agents or other peoples, but it is traded in stock exchange. So it gives return to investors in form of dividend and also capital appreciation from price change. This way, shows that REITs is a secured investment that protect investors interest and it works under the guidelines or frameworks that have been set up by government. Background: The investment characteristics of property are significantly different from the characteristics of assets in other investments. REITs in Malaysia is so attractive as Malaysia now is developing country. There is still a gap between Malaysia and others develop country in Asia. In order to put Malaysia in same level with Asia develop country, most of REITs managers are with option and plan to growth their property portfolio to trade or manage rental in order to achieve it. It also will give a better yield for investor if our country is same level with others. In order to improve market performance of REITs, the REITs Company should consider developing new opportunities, acquiring more properties into their portfolio and also to some countries, or joint developing property project. The relation of both legal frameworks and the market performance will give a picture to investor and other people who interested in this investment. The REITs sector need to provide more chance to other people to invest and it will help Malaysian generate more income others than monthly salary and to boost up economy in this country. Research Question: Finance in real estate is just a popular way of investment nowadays. The market performance of REITs shows the good results this few years. With the regulation that set up by government, surely REITs is the secured investment. But is there many people in Klang Valley that come from middle-income group realise about this investment in this develop country? Objectives: The main objective of this study is to determine the level of awareness towards REITs among middle-income group in Klang Valley. In line with above, this study also seeks to study types of REITs available in Malaysia Besides, these study also to discuss about the way to introduce REITs in Malaysia in order to make REITs the favourable investment medium. Scope of Study: In overall, this research is confined to REITs in Malaysia which in an attractive investment nowadays. This study covers the types of REITs available in Malaysia and also people awareness about it. Other than that, this study is carried out to know what is the way of promoting REITs that people prefer. Methodology: This research would be done in an analytic study manner. The information that is needed to examine the issue will be obtained from primary and secondary data. The primary data refers to the first-hand data, which required data collection that is the distribution of questionnaire. The questionnaire will be distributed to certain amount of Malaysian with a different background. Secondary data or desk research refers to the data that already exist, mostly in quantitative form. In this study, most of the secondary data were obtained from; Academic research on REITs and journals. Website of REITs Company. Other dissertations. Data analysis will be done through frequency analysis. Frequency analysis is used to determine the frequency of certain choice for the questions. Most frequent answer will be given the priority. The results will be shows in diagram or graph to show the popularity answers. Significance: It is hoped that the anticipated outcome of this study can benefit the: The REITs Company where they will more alert toward the middle-income people awareness of REITs and the way people wanted REITs to be promoted. The interested investor and also the student, as a reference on the information that relates to REITs. Organisation of Research: This study consists of five chapters where the first chapter provides a brief concept and view on the topic that will be studied in this research. It consists of introduction, objective of study, scope of study, significance on research and also organisation of research. Chapter two discuss on literature review about REITs in Malaysia. The discussion will be on definition of REITs, the types of REITs in Malaysia and also the list of REITs companies. Other than that, the discussion also will describe on how REITs work and also the benefit of REITs. The definition on middle-income people and background of Klang Valley also will briefly explain. The next chapter, chapter three is on methodology. In this chapter, methods used to construct the questionnaires will be outlined. This chapter will highlight how the administration of the questionnaire which will conduct to respondents. Chapter four is the finding and analysis of data obtained through questionnaires survey. The analysis of data obtained will determine the level of awareness towards REITs among middle-income people in Klang Valley. Through the survey, the preference way of promoting REITs also can be discover. The last chapter, which is chapter five, is the conclusion and limitation of this study. The best suggestion of promoting REITs also will be stated in this chapter. The weaknesses and strengths of the study may be included. Some suggestions for further study will also be included in this study. In the next chapter, a review of related information about REITs will be explained. The explanation will cover definition, types, how REITs work, REITs companies in Malaysia, the legislation of REITs Islamic REITs and also the future prospect of REITs. Chapter 2: Literature Review: LITERATURE REVIEW: REITs which stand for Real Estate Investment Trust is an investment that relates to properties. Trust fund has been introducing in this country since 1986, but REITS; a part of trust fund is a new medium investment only famous around few years back. REITs is an investment vehicle for investors to invest in large-scale income producing real estate. With the concept like unit trust, this investment gathers pool of money from all sizes of investors. REIT based companies will invest, manage and distribute rental as dividend back to the investors by yearly basis or depends on the agreement that have been signed before.REITs is a liquidity investment which It is being trade in Bursa Kuala Lumpur with ease of buy and sells back like a normal equity. As the years flow, REITs is not new to the world especially in many other developed countries. REITs usually targets for a long term investor with moderate risk such as insurance companies, unit trust funds and even individual investors. REITs invest in a variety of real estate properties such as office buildings, shopping malls, warehouses, apartments and hotels. The investor also has the added advantages of holding a liquid asset in the form of shares that can be sold on the market unlike the real estate itself which is illiquid. Investing in REITs provides the investor with dividend income and also allows them to own a real estate portfolio rather than just a single building. This chapter then will briefly explain about Klang Valley, middle-income group, history of REITs in Malaysia, types of REITs, how REITs work, and REITs companies and also about the legislation of REITs. Klang Valley: My research focus on awareness towards REITs among middle-income people in Klang Valley, Malaysia. Malaysia is located in Southeastern Asia, peninsula bordering Thailand and northern one-third of the island of Borneo, bordering Indonesia, Brunei, and South China Sea, south of Vietnam. It is comprised of two separate geographical regions which are Malay Peninsular and the states of Sabah and Sarawak. Klang valley is an area in Malaysia comprising Kulala Lumpur and its suburbs, and adjoining cities and towns in the state of Selangor. Tis valley is named after Klang River, the principal river that flows through it which is closely linked to the early development of the area as a cluster of tin mining towns in the late 19th century. Development of Klang Valley took place largely in the area between Gombak and Port Klang but the urban areas surrounding Kuala Lumpur have since growth towards the border of Negeri Sembilan and the north towards Rawang. Klang Valley has a total population around 7.6 million people in 2009 and estimated to growth due to the people migrate from other states towards Klang Valley and also a population growth. Klang Valley is the heartland of Malaysias industry and commerce. Regions of Klang Valley and their corresponding local authority: Federal Territory of Kuala Lumpur. Kuala Lumpur City Hall. Federal Territory of Putrajaya. Putrajaya Corporation. Selangor district of Petaling. Shah Alam City Council. Petaling Jaya City Council. Subang Jaya Municipal Council. Selangor District of Klang. Klang Municipal Council. Selangor district of Gombak. Selayang Municipal Council. Selangor district of Hulu Langat. Ampang Jaya Municipal Council. Kajang Municipal Council. Selangor district of Sepang. Sepang Municipal Council. For further information about the location of Klang Valley. Middle-Income Group: There are three classes of income in Malaysia. These classes indicate Malaysian monthly income and also their household. The three (3) classes including low-income people, middle-income people, and high-income people. Below is the income groups in Malaysia. Middle-class income is define as the socioeconomic class between the working class and the upper class, usually including professionals, highly skilled labourers, and lower and middle management.( Source: http://www.answers.com/topic/middle-class). Background of REITs in Malaysia: Malaysia is the first country in Asia to introduce property trusts. In 1989, the first trust was listed in Kuala Lumpur Stock Exchange. The regulatory framework of property trust, approved by the Bank Negara in 1986, was restrictive and provided no tax transparency. But there still an issues that arise such as lack of focus on property management and also conflict of interest which led the property trust to be private. In 1995, a revision of the property trust guidelines were done but it fail to give a good impact to investors and also to market. Then, in February 2005, there is another revision with led the property trust be renamed as Real Property Investment Trust (REITs). The major income of REITs is from rental and the profit is required to distribute to holders or investors in dividend. The guidelines also been revised to provide a good regulation for a REITs in this country. Malaysia was the first Islamic country to certify REITs and also the first country in Asia where REITs conquer agriculture land. A plantation REITs also much like conventional REITs. It will be the crops planted on the land and the success will depend on the sizes of assets injected to the trust. The potential plantation to be expected is oil palm because of the high demand on the production. Other than that, palm oil also undergoing the research to become a biodiesel product and in become more attractive after the increasing in oil prices. The plantation land or agriculture land also can be developed to residential area or commercial area due to the development of town. Types of REITs: REITs has several types with drives to a different prospect of REITs but it still relates to property as a main core to invest on. In others country they apply a lot of types of REITs. But in Malaysia we only apply three types of REITs. There are Equity REITs, Mortgage REITs and also Hybrid REITs. Equity REITs: Equity REITs is a publicly traded company that, as its principal business, buys, manages, renovates, maintains and occasionally sells real properties. (block,2006).Properties are usually purchased to invest is an income-producing real estate such as hotels, shopping malls and also apartment buildings. This type of REITs is different from others because REITs usually companies will purchase or develop the property and operate it as a part of their portfolio rather than sell it. Besides, Equity REITs is a long term investment because they earn dividend from rental. In additional, this type will let investors not only just to choose the type of property they want to invest in, but also the location of the properties. (Block, 2006). It means that the investors can make a choice on their own with the advice of the agent or REITs managers in order to make a good investment and to gain a good dividend. Mortgage REITs: A mortgage REITs is a REITs that focus on makes on holds loans to the property developers. (All about Investing: The Easy Way to Get Started by Esme Faerber: page 89). Rather than investing in properties,this type of REITs sometime loans money for purchase existing mortgages. The revenue earns is from the interest charge on the mortgage loans and pass on shareholders. Mortgage REITs is more sensitive compare than other REITs because of the prices of mortgage REITs react opposite from interest rates. It is good REITs to invest if there is a rumour of dropping in interest rates. Hybrid REITs: Hybrids combine the investing principles of mortgage and equity REITs, diversifying between making mortgage loans and direct property ownership. They earn both rental and interest income. (http://www.allaboutskyscrapers.com/REIT_types.htm). They buy, develop, and manage the properties and provide financing through mortgage loans. Most hybrid REITs have a stronger position in their financing account. The most famous industry that using hybrid REITs is private healthcare industries, where the financial company will provide mortgage to healthcare company, hospital management and also to buy properties such as land and building and also medical appliances. Equity REITs seem to be the most popular REITs recently. Between three types of REITs, mortgage REITs is the most risky which in involve in lend money to developers. Every type of REITs has different level of risk so investors should study and evaluate which REITs they want to invest in. The wise result will make the investors smile widely because of the big fish. Chan, Erickson and Wang (2003) find that equity REITs pay out more dividends than mortgage REITs. The reason is that equity REITs offer the potential for capital gains in addition to current income. Structure of REITs: Source: Practice and Prospect of Islamic Real Estate Investment (I-REITs)in Malaysian Islamic Capital Market by Dr. Asyraf Wajdi Dusuki. Manager: A man or woman who controls an organization or a part of organization. Property manager: A man or woman who controls the management and maintenance of the building. He or she will ensure the building in the good condition which safe to fit tenants in. Tenant: A person who pays money (rent) to the owner of a room, flat, building or piece of land so that he or she can live in it or use it. Trustee: A person who looks after money or property for somebody else. Unit holder: An owner of one or more units in a mutual fund. How REITs Works: Its true that investment most favourable today will be the one most prized tomorrow, and then real estate is definitely due for love-in. Investing in income-generating real estate can be a great way to increase your net worth. But for many people, investing in real estate, particularly commercial real estate is simply out of their budgets. REITs is a saviour to people when with REITs people can invest in small amount but with a large-scale of real estate group. REITs which means real estate investment trust essentially the organization that own and manage a portfolio of real estate and mortgages such as shopping malls, hotels, apartment buildings and also agriculture lands. REITs does not mean for a restrict group, but this share can be own buy anyone. REITs offer people the ownership of the property without any risks because all of the problems will be covered by agents or REITs managers. There are advantages when investing in REITs because of the liquidity and diversity. It is unlike actual real estate, where REITs can be easily and quickly sold. People will face less financial risk because of investing in a portfolio rather than single building because of the problems such as irresponsible tenants, economy impact to the property rental market and market value, and so on. REITs has a board of directors that elected by the shareholders. The shareholders have a power to eliminate any board of directors that does not fulfil their requirement. The board of directors usually came from a people with an investment background especially in REITs field. They will assist a REITs managers; person who will manages the operation of the property. The power to choose what types of real estate to invest in is on board of directors. REITs investment for investors starts when they invest certain amount of money in a REITs fund. The amount of money depends on the REITs managers who will arrange the investment on the properties that have been agreed by board of director. The investors can have an eyes and ideas on what types of the properties and the location. They have a choice whether want to agree or not with the properties. If they agree with the properties, they can sign a document to clarify the investment. Then the properties will be rent out or mortgage in order to earn money. REITs has a several method to measuring the profit but the suitable one called Funds From Operation (FFO). The National Association of Real Estate Investment Trusts (NAREIT) defines FFO as: Net income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. Source: http://home.howstuffworks.com/real-estate/reit2.htm. The REITs industry use FFO to measure performance and to establish dividend payouts. Kallberg et al (2003) reported that REITs consistently pay out about 85% of FFO as dividends. The payouts from REITs are consistently higher than other types of equities. In other words, FFO is defined as the net income, excluding gains and losses from debt restructuring and property sales, adding back property depreciation and amortisation, and after adjustments for unconsolidated partnership and joint ventures. The net income is referring to rent and sales computed according to Generally Accepted Accounting Principles (GAAP). However FFO is not a necessary way to determine performance and dividend payouts. Not all REITs calculate FFO according to the NAREIT definition because some of the important items are missing from the formula such as maintenance, repairs and also expenses. Thus, investors must always read a companys report and any others supplemental information in order to get an exact FFO. REITs Companies: In Malaysia, there are several amount of business runs base on REITs. These companies have been success to put property market in this country in a good condition. These companies also expend the real estate industry with so much new types of building. Below is briefly an explanation about ten (10) well known REITs companies. Al-Aqar KPJ: Al-Aqar KPJ REITs established on 28 June 2006 is a Malaysian-based unit trust. The objective of this investment is to own and invest in Syariah-compliant real estate and it has been acceptable to invest in properties which compromise Ampang Puteri Specialist Hospital Building, Damansara Specialist Hospital Building, Johor Specialist Hospital Building, Ipoh Specialist Hospital Building, Puteri Specialist Hospital Building and Selangor Medical Centre Building. There are nine (9) others hospital under KPJ that potential to be injected under Al-Aqar KPJ such as Tawakal Hospital, Seremban Specialist Hospital and also Penawar Hospital. Amanah Raya: Amanah Raya REITs is subsidiary of Amanah Raya Berhad and wholly-owned by Minester of Fianace Incorporated. Amanah Raya REITs listed on Bursa Securities Malaysia Berhad on 26 February 2007 with a total asset siza of RM337 million. Today, Amanah Raya REITs has a diversification portfolio comprising hospitality, education and also commercial properties such as SEGI College, Holiday Villa Langkawi, Holiday Villa Alor Star, Wisma Amanah Raya Berhad, Wisma UEP, Permanis Factory and also Blocks AB South City Plaza. AmFirst: Established on 28 September 2006 under the Trust Deed, AmFIRST then entered into between Am ARA REIT Managers and Mayban Trustee Berhad. AmFIRST managed by Am ARA REIT Managers Sdn Bhd. Three months then, Am FIRST was listing on the Main Board of the Bursa Saham Malaysia Berhad on 21 December 2006. It shows an innovative makeover of AmFIRST, the first listed property trust fund in Malaysia. This REITS company is the largest Malaysia-based commercial REITs with exposure to the office, retail and hotel sector in Klang Valley area. Currently manages six office building, where three are located within the Kuala Lumpur Golden Triangle; AmBank Group Leadership Centre, AmBank Group Building, and also AmBank Tower, and one each in Petaling Jaya, Kelana Jaya, and Subang Jaya. AmFIRST also manages four-star hotel and a retail mall located in Subang Jaya, The Summit Subang, USJ. Atrium: Atrium REITs is a first logistic property approved in Malaysia. The objective of Atrium REITs is to invest in portfolio in order to reward investors or unit holders a maximise income and to acquire a high quality assets to achieve a long-term growth in a net income for distribution of dividend. This REITs then was first approved by the Securities Commission in October 2006 and then listed on Main Board of Bursa Saham Malaysia Berhad in April 2007. Atrium REITs has an 809, 668 sq ft (75, 220 sq mt) approved portfolio of investment properties which comprises of four freehold industrial properties currently leased to reputable and strong financially tenants. All of their properties located in Kuala Lumpur and Selangor, the fastest growing area in this country. Axis: Axis REITs is the first REITs list on Bursa Malaysia Securities Berhad on 3 August 2005. On 11 December 2008, Axis launched Islamic REITs which is the first in Malaysia. Axis own diversified portfolio of properties especially in Klang Valley, Kedah and Johor comprising of commercial offices, light industial building and also warehouse. Buildings that portray an image of Axis are Axis Tower and also Crystal Plaza. Both if this building are next door to each other and located along the busiest road, Federal Highway. These buildings are well maintain and easier accessibility. Other Axis properties are Delfi Cocoa in and BMW Asia Technology Centre PTP in Johor and also Giant Hypermarket in Sungai Petani, Kedah. Hektar: Hektar REITs is a Malaysias first retail-focused REITs. Listed on the Main Board of Bursa Saham Malaysia Securities on 4 December 2006, Hektar portfolio currently consists of shopping centres in Subang Jaya, Melaka and Muar. As of 31 December 2009, all of these properties was value of RM720 million. Hektar REITs is managed by Hektar Asset Management Sdn Bhd which a part of Hektar Group. QCT: QCT (Quill Capita Trust) REITs was listed in Main Board of Bursa Malaysia Securities Berhad on 8 January 2007. QCT is managed by Quill Capita Management Sdn Bhd. QCT main investment in REITs is a commercial properties. Until 31 December 2009, QCT has ten (10) properties with 1,288,149 sq ft net lettable area valued RM 788.4 million. The properties including part of Plaza Mont Kiara, Quill buildings, Wisma Technip and also tesco building in Jelutong, Penang. Starhill: This REITs was established on 18 November 2005 by a trust deed entered between Pintar Projek Sdn Bhd and Mayban Trustee and listed on Main Market of Bursa Malaysia Securities Berhad on 16 December 2005. Starhill REITs is focusing on retail and hotel properties investment. As for February 2010, Starhill REITs is the largest Malaysias real estate investment. This REITs has four (4) portfolio located in the heart of Kualu Lumpur; Starhill Gallery, JW Marriot Hotel, Lot 10 Shopping Centre and also The Residence at The Ritz-Carlton. Tower: Tower REITs is established on 21 February 2006. The objective of this company is to invest primarily in a portfolio of quality office building and commercial properties to provide regular and stable distributions of dividend to unit holders or investors and also to achieve a medium-term growth in the net income. In order to achieve their objective, Tower REITs implement several key strategies such as optimisation of capital structure, active asset management and also acquisition growth. The portfolio of this REITs company consists of three buildings located in Kuala Lumpur. First is Menara HLA, the 32-storeys office tower located in the heart of Kuala Lumpur Golden Triangle. With a net lettable area of 396, 820 sq ft, it has a blue chip tennats such as Hong Leong Assurance Berhad. Next, HP Towers comprises of two blocks of 9-storeys and 21-storeys and 3 levels of connecting podium. Situated in Bukit Damansara, this towers has a net lettable area of 350, 056 sq ft with a Hewlett-Packard (M) Sdn Bhd as a tenants. Lastly, Menara ING situated in Jalan Raja Chulan, the main central business district of Kuala Lumpur. Tower REITs only own 78.3% of the total share unit of the building and 100% leased out to ING Insurance Bhd. UOA: nbsp  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  UOA REITs was established on 28 November 2005 and listed on the Main Board of Bursa Saham Malaysia Securities Berhad two days later. UOA REITs is focusing on commercial properties. With a diversification portfolio of properties, UOA manages to maintain four building in Kuala Lumpur area. First is UOA Centre, a stylish 33-storeys office building situated between Jalan Pinang and Jalan Perak. Tenants of the building include financial services companies and also trading companies. Next is UOA II which located near to UOA Centre. With a contemporary designed, this 39-storeys building has a mixture of tenants from government agencies, multinationals insurance companies and law firms. Other than that, a 13-storeys office building located in Jalan Dungun, Damansara Heights name UOA Damansara is one of the UOA properties. Law firms, international associations and trading companies are a part of tenants for this building. Last is UOA Pantai located strategically in front of Menara TM. This 7-storeys of building consists of tenants include multinational corporations and so on. Regulation of REITs: In Malaysia, REITs govern by a statutory body name Security Commission Malaysia (SC). SC was established on 1 March 1993 under the Securities Commission Act 1993 and it is a financial regulatory agency. It is the central authority to regulate and develop the capital market. SC has big responsibilities in order to ensure the safety of the investors under the Act includes: Registering authority for prospectuses of corporations other than unlisted recreational clubs. Approving authority for corporate bond issues. Regulating all matters relating to securities and future contracts. Regulating the take-over and mergers of companies. Regulating all matters relating to unit trust schemes. Licensing and supervising all licensed persons. Supervising exchanges, clearing houses and central depositories. Encouraging self-regulation. Ensuring proper conduct of market institutions and licensed persons. Source:http://www.sc.com.my/main.asp?pageid=350menuid=376newsid=linkid=type= New Islamic REITs: The introduction of Islamic REITs is viewed as one of the most significant initiatives to broaden and deepen the product base of Islamic capital market in Malaysia. It can also help to enhance competitiveness of Malaysian Islamic capital market by attracting global Islamic investors who wish to diversify their investment portfolio which are Shariah compliant. Islamic REITs regulation was outlined in the Guidelines for Islamic REITs issued on 21st November 2005 by Securities Commission. (Securities Commission,2005). The Guidelines were introduced to facilitate the development of new Islamic capital market products, making Malaysia the first jurisdiction in the global Islamic financial sector to issue such guidelines and setting a global benchmark for the development of Islamic REITs. The Guidelines essentially stipulate Shariah compliance criteria to guide management companies in their activities relating to an Islamic REITs, including the types of Shariah permissible and non-permissible rental and investment activities for such fund. Islam prohibited Muslim from investing in properties whose tenants sell alcohol, pork or allo

Modelling human decision-making

This paper anchors the development of the simulation modeling the human decision making. Series of project have been made and applied to attest the model mentioned. In specific, the focus of the project is about the process of using simulation and the methods which extracts knowledge about human decision making. One method used is the artificial intelligence method which figures out the decision-making strategies of human. And with this, it made possible to assess performance of the decision makers, who are the target respondents of the project. Moreover, the paper presents results of current projects done and motivational factors that affects the model, Human decision making. 1. Introduction There were previous studies and investigations made since mid-1990 on how to use and apply the artificial intelligence method as an alternative on the real subject, human decision making, in the simulation. This paper provides related literature that will be useful for present and future projects about simulation of human decision-making. Starting from an idea generated when attempting to model rail marshalling yards, an artificial example of simulation and expert systems working in collaboration was generated. The ideas were then applied to a real case of maintenance operations at an engine assembly plant. Future work is looking into simulation as a means of knowledge elicitation. The paper briefly describes each of these phases of work and concludes by discussing why it is important to model human decision-making† Conclusion: Why Model Human Decision Making? Modeling human decision-making process for the improvement of human decision-making is far more important than the improvement of AI simulators. The development of the human mind is more important because in complex situations, the mind is more reliable and flexible in terms of making decisions. Simulators are mere copies of what the human mind can do, and thus, it is not that flexible in terms of changes.

Organisational structure of big bazaar Essay

The retail sector in India can broadly be classified as organized and unorganized where the share of unorganized sector is more than 93% of the total and includes the kirana stores, mom and pop stores and the ilk. The organized or modern retail sector on the other hand captures a mere 7% of the total market share. Modern retail is defined as a form of retailing whereby consumers can buy goods from a similar purchase environment across more than one physical location and operates under three levels: Specialist stores catering to some particular category of product such as footwear, pharma & beauty, food and grocery etc. – classified under level I. Departmental stores that cater to a few categories of retail put under level II, and malls where we find an agglomeration of many departmental stores, hypermarkets etc – classified under level III retail. ABSTRACT The growing number of modern retail outlets in India on the one hand and frequent sale seasons and talks of underperformance on the other point to a mixed bag and make us wonder whether the sector is on the right growth trajectory. In this report, rather than providing with just the facts, we have tried to understand the modern retail sector from an economist’s point of view and visualize its future-whether it is in its expansion or contraction phase. Motivated by the rising per-capita incomes and increased  spending on consumer goods, modern retail stores are coming up with new strategies and plans to unlock the Pandora box of the untapped and unorganized retail sector. In the course of the report, we try to find out – how the retail sector works, major regulations that affect its functioning and the challenges that await the sector and summarize with our analysis and recommendations. Note: We have used where we’ve analyzed the situation from a micro-economic point of view. INTRODUCTION The retail sector in India can broadly be classified as organized and unorganized where the share of unorganized sector is more than 93% of the total and includes the kirana stores, mom and pop stores and the ilk. The organized or modern retail sector on the other hand captures a mere 7% of the total market share. Modern retail is defined as a form of retailing whereby consumers can buy goods from a similar purchase environment across more than one physical location and operates under three levels: Specialist stores catering to some particular category of product such as footwear, pharma & beauty, food and grocery etc. – classified under level I. Departmental stores that cater to a few categories of retail put under level II, and malls where we find an agglomeration of many departmental stores, hypermarkets etc – classified under level III retail.

American Equal Rights Association (AERA) for Suffrage

Importance: As the 14th and 15th amendments to the Constitution were debated, and some states debated black and woman suffrage, womens suffrage advocates tried to join the two causes  but with little success and a resulting split in the womens suffrage movement. Founded: 1866 Preceded by: American Anti-Slavery Society, National Womans Rights Conventions Succeeded by: American Woman Suffrage Association, National Woman Suffrage Association Founders: included Lucy Stone, Susan B. Anthony, Elizabeth Cady Stanton, Martha Coffin Wright, Frederick Douglass About the American Equal Rights Association In 1865, a proposal by Republicans of the Fourteenth Amendment to the United States Constitution would have extended rights to those who had been slaves, and to other African-Americans, but also would introduce the word male to the Constitution. Womens rights activists had largely suspended their efforts for sexual equality during the Civil War. Now that the war was ended, many of whom had been active in both womens rights and anti-slavery activism, wanted to join the two causes -- womens rights and rights for African Americans. In January 1866, Susan B. Anthony and Elizabeth Cady Stanton proposed at the annual meeting of the Anti-Slavery Society the formation of an organization to bring the two causes together. In May of 1866, Frances Ellen Watkins Harper gave an inspiring speech at that years Womens Rights Convention, also advocating bringing the two causes together. The first national meeting of the American Equal Rights Association followed that meeting three weeks later. The fight for passage of the Fourteenth Amendment was also a subject of continuing debate, within the new organization as well as beyond it. Some thought that it had no chance of passage if women were included; others didnt want to enshrine the difference in citizenship rights between men and women in the Constitution. In 1866 through 1867, activists for both causes campaigned in Kansas, where both black and woman suffrage were up for a vote. In 1867, Republicans in New York took female suffrage out of their suffrage rights bill. Further Polarization By the second annual meeting (1867) of the American Equal Rights Association, the organization debated how to approach suffrage in the light of the 15th Amendment, by then in progress, which extended suffrage only to black males. Lucretia Mott presided at that meeting; others who spoke included Sojourner Truth, Susan B. Anthony, Elizabeth Cady Stanton, Abby Kelley Foster, Henry Brown Blackwell, and Henry Ward Beecher. The Political Context Moves Away From Women's Suffrage The debates centered around the increasing identification of racial rights proponents with the Republican Party, while womens suffrage proponents tended to be more skeptical of partisan politics. Some favored working for the passage of the 14th and 15th Amendments, even with their exclusions of women; others wanted both defeated because of that exclusion. In Kansas, where both woman and black suffrage were on the ballot, the Republicans began actively campaigning against womens suffrage. Stanton and Anthony turned to Democrats for support, and especially to one wealthy Democrat, George Train, to continue the fight in Kansas for womens suffrage. Train carried out a racist campaign against black suffrage and for woman suffrage -- and Anthony and Stanton, though they had been abolitionists, saw Trains support as essential and continued their association with him. Anthonys articles in the paper, The Revolution, became increasingly racist in tone. Both woman suffrage and black suffrage were defeated in Kansas. Split in the Suffrage Movement At the 1869 meeting, the debate was even stronger, with Stanton accused of only wanting the educated to vote. Frederick Douglass took her to task for denigrating black male voters. The 1868 ratification of the Fourteenth Amendment angered many who had wanted it defeated if it did not include women. The debate was sharp and the polarization clearly beyond easy reconciliation. The National Woman Suffrage Association was founded two days after that 1869 meeting ​and did not include racial issues in its founding purpose. All members were women. The AERA disbanded. Some joined the National Woman Suffrage Association, while others joined the American Woman Suffrage Association. Lucy Stone proposed bringing the two woman suffrage organizations back together in 1887, but it did not happen until 1890, with Antoinette Brown Blackwell, daughter of Lucy Stone and Henry Brown Blackwell, leading the negotiations.

Shelby County v. Holder Supreme Court Case, Arguments, Impact

In Shelby County v. Holder (2013), a landmark case, the Supreme Court struck down Section 4 of the Voting Rights Act of 1965, which provided the federal government with a formula to determine which voting jurisdictions should be subject to oversight when passing electoral laws. Fast Facts: Shelby County v. Holder Case Argued: February 27, 2013Decision Issued: June 25, 2013Petitioner: Shelby County, AlabamaRespondent: Attorney General Eric Holder Jr.Key Questions:  Are federal requirements within the Voting Rights Act of 1965 constitutional?Majority Decision: Justices Roberts, Scalia, Kennedy, Thomas, and AlitoDissenting: Justices Ginsburg, Breyer, Sotomayor, and KaganRuling: The Supreme Court ruled that Section 4 of the Voting Rights Act of 1965 was unconstitutional. Facts of the Case The Voting Rights Act of 1965 was designed to prevent discrimination against black Americans by enforcing the Fifteenth Amendment of the U.S. Constitution. In 2013 the court looked to determine the constitutionality of two of the Act’s provisions, close to 50 years after its passage. Section 5 required certain states with a history of discrimination to gain federal approval before making changes to their voting laws or practices. Federal approval meant that authorities in Washington D.C., the  Attorney General, or a court of three judges had to review possible amendments to state electoral laws.  Section 4 helped the federal government decide which states had a history of discrimination. Section 4 looked at jurisdictions with less than 50% voter turnout and electoral laws that allowed the use of tests to determine voter eligibility. The original act was set to expire after five years, but Congress amended and reauthorized it several times. Congress re-authorized the Act with a 1975 version of Section 4 for 25 years in 1982 and again in 2006. In 2010 officials in Shelby County, Alabama, filed suit in district court, arguing that Sections 4 and 5 were unconstitutional. Arguments An attorney representing Shelby County offered evidence to show that the Voting Rights Act had helped close gaps in voter registration and turnout rates. Blatantly discriminatory evasions of the law were rare, he added, and minority candidates held offices at higher rates than ever before. Voter eligibility tests had not been used for close to 40 years. The attorney said that the act created extraordinary federalism and cost burdens to preclearance. In light of the new evidence, the attorney argued that the act could no longer be justified. The solicitor general argued on behalf of the government, defending the constitutionality of the Voting Rights Act. It was a form of deterrence, encouraging states to maintain fair electoral laws because unfair additions might be rejected, he argued. Congress reauthorized the legislation in 2006 as a continuing means of deterrence, acknowledging that disparity in voter registration had decreased. The solicitor general also argued that the Supreme Court had previously upheld the Voting Rights Act in three separate cases. Constitutional Questions Can the federal government use formulas to determine which states require oversight if they want to make changes to electoral laws? How often do those formulas have to be updated to remain constitutional? Majority Opinion Chief Justice John Roberts  delivered the 5-4 decision, which found in favor of Shelby County and invalidated parts of the Voting Rights Act. At issue was Congress decision to reuse language and formulas that had not been updated since 1975. When the legislation originally passed it was a â€Å"dramatic† and â€Å"extraordinary departure from the  tradition of federalism, Justice Roberts wrote. It gave the federal government unprecedented power over state legislatures with a specific goal — preventing state and local governments from using voting laws to discriminate. It had accomplished its goal, Justice Roberts wrote on behalf of the majority.  The legislation  was successful at decreasing voter discrimination. As time went on, Congress should have acknowledged the impact of the legislation and slowly altered it to account for that change. The Act imposes current burdens and must be justified by current needs, Justice Roberts wrote. Congress was using 50-year -old guidelines and formulas to maintain the federal governments authority over state voting laws. The majority could not allow what they viewed as outdated standards to blur the line separating the federal government from the states. Justice Roberts wrote: Our country has changed, and while any racial discrimination in voting is too much, Congress must ensure that the legislation it passes to remedy that problem speaks to current conditions. Dissenting Opinion Justice Ruth Bader Ginsburg dissented, joined by Justice Stephen Breyer, Justice Sonia Sotomayor, and Justice Elena Kagan. According to the dissent, Congress had sufficient evidence to re-authorize the Voting Rights Act for 25 years in 2006. The House and Senate Judiciaries held 21 hearings, Justice Ginsburg wrote, and compiled a record of more than 15,000 pages. Although the evidence showed that the country had made overall progress towards ending voter discrimination, Congress found existing barriers that the VRA could help eliminate. Justice Ginsburg listed racial gerrymandering and voting-at-large instead of district-by-district as second-generation barriers to voting. Justice Ginsburg likened getting rid of a preclearance requirement to throwing away your umbrella in a rainstorm because you are not getting wet. Impact Those in favor of the decision viewed it as an affirmation of state sovereignty, while those against it saw it as damaging to voting rights in the U.S. When the Supreme Court found Section 4 unconstitutional, it left the federal government without a way of deciding which jurisdictions should be subject to preclearance requirements. The Court left it to Congress to create a new coverage formula for Section 4. The Justice Department can still challenge laws that impact voter registration and turnout under Section 2 of the Voting Rights Act, but doing so is more difficult, and requires the department to be willing to take on a case. In light of the Supreme Court ruling, some states passed new voter ID laws and eliminated certain forms of voter registration. Not all of the states that passed laws in the wake of Shelby County v. Holder were ones previously covered by the Voting Rights Act. However, a 2018 study conducted by Vice News found that areas once controlled by Section 5 â€Å"closed 20 percent more polling stations per capita than jurisdictions in the rest of the county. Sources Shelby County v. Holder, 570 U.S. (2013).Fuller, Jaime. â€Å"How Has Voting Changed since Shelby County v. Holder?†Ã‚  The Washington Post, WP Company, 7 July 2014, www.washingtonpost.com/news/the-fix/wp/2014/07/07/how-has-voting-changed-since-shelby-county-v-holder/?utm_term.8aebab060c6c.Newkirk II, Vann R. â€Å"How a Pivotal Voting Rights Act Case Broke America.†Ã‚  The Atlantic, Atlantic Media Company, 9 Oct. 2018, www.theatlantic.com/politics/archive/2018/07/how-shelby-county-broke-america/564707/.McCann, Allison, and Rob Arthur. â€Å"How the Gutting of the Voting Rights Act Led to Hundreds of Closed Polls.†Ã‚  VICE News, VICE News, 16 Oct. 2018, news.vice.com/en_us/article/kz58qx/how-the-gutting-of-the-voting-rights-act-led-to-closed-polls.

Impact Of Colonia On Indian Ocean And The Trans Atlantic...

An Analysis of the Impact of Colonia Racism in the Indian Ocean and the Trans-Atlantic Trading Systems This African study will compare the impact of colonial racism as part of the exploitation of African people by European traders in the Indian Ocean and trans-Atlantic trade systems. The origin of international trade in the Indian Ocean stemmed from the arrival of the Portuguese, which sought out gold and loot to be taken from the Swahili peoples. In this manner, the Swahili were not technologically advanced enough to resist modern weapons of the Portuguese, which made them vulnerable to attack and looting of harbor city-sates. In comparison, the trans-Atlantic trade of the English and Spanish sought to commoditize Africans into slavery through this very same type of colonial racism. In essence, these trading conditions set the tone for hundreds of years of slavery and colonization, which subjugated the African peoples through skin color and racist policies to exploit them as subjects of European dominance colonial racism. The origins of the Indian Ocean trade defies the slow growth o f trading settlements around the Indian Ocean, which soon grow to massive proportions on the arrival of the Portuguese during the 16th century. During the 16th century, the Portuguese exploited the weakness of Swahili tribal villages working the Indian Ocean trade, which made them victims of attack by the more technological advanced artillery and weapons of the Portuguese. More so, the

No Future Essay Example For Students

No Future Essay No Future?When looking into the future people see many different things. Whether it be flying cars, buildings floating in the air, or people walking around in space suits, everyone has their own idea. Most of the time when people look into the future they look far into it, not in the next several years. The future is usually defined as twenty or more years beyond the present. Many movies and stories written about the future world seem to have the common theme that technology will play a big part in the development of the future. The development of technology will lead to the advances that will take the world into the next century and beyond. George Lucas film THX 1138 and Robert Zemeckis Back to the Future are both examples of movies that portray technology and the advances of the future. THX 1138 and Back to the Future both portray technology as a danger to society that could ultimately lead to its downfall. George Lucas made THX 1138 long before he became famous in his later movies. He based the film on his movie that he used as his graduate project and thesis. It was his first attempt at directing and producing a Hollywood film. His goal was to create a film that would show the future state of the world if it was to continue on its path of the search for perfection of everything. He shows the future as a place that many people would probably not want to live or to be associated with. Lucas shows that everyone will be the same. People will wear the same clothes and have the same haircut. Names are no longer a part of society. In the movie each person is given a prefix of letters followed by a number. They are basically drones who follow orders. Technology has advanced so far that every motion or action of the person is monitored. Anytime that one of them does something wrong it immediately appears on the computer screen as to what they are doing and what their number is. It is possible for the computer to monitor all of their vital signs and mental activity. Each person is carefully monitored and watched. The people are told what to do and act based on how they were trained. They work in shifts of labor and are almost extensions of the computer that tells them what to do. There is no more guessing about disease or how a person is feeling. Everything is fed to a computer which processes the information and figures out what to do. Computers have begun to control the lives of the people and it is almost to the point that they are running society as a whole. Computers are no longer devices that simplify life for humans; humans are now devices that help computers. Science has developed a drug that keeps the people submissive and almost with no thought of their own. The drugs take away the humans ability to think and to be creative. Ironically it was those attributes that led to the development of all of that technology in the first place. Humans are no longer allowed to think for themselves. Instead of people controlling the development of technology; technology is now controlling the development of the people. One of the best scenes that tells about the technology of this movie takes place in the prison. The people who have broken the laws are sent to an area that is totally white. No other color can be scene. They are put into machines and forced to take the drugs and the computer monitors them. Just through several test the entire body of the person can be checked for what is wrong. The person is checked up on like a machine. The computer then decides what to do with the person. When people are treated like machines and not allowed any freedom of thought it is very dangerous to society as we know it. This could easily end society through the emission of peoples rights. .u89becdf3ad0a5af6ef0bc04de565bf8b , .u89becdf3ad0a5af6ef0bc04de565bf8b .postImageUrl , .u89becdf3ad0a5af6ef0bc04de565bf8b .centered-text-area { min-height: 80px; position: relative; } .u89becdf3ad0a5af6ef0bc04de565bf8b , .u89becdf3ad0a5af6ef0bc04de565bf8b:hover , .u89becdf3ad0a5af6ef0bc04de565bf8b:visited , .u89becdf3ad0a5af6ef0bc04de565bf8b:active { border:0!important; } .u89becdf3ad0a5af6ef0bc04de565bf8b .clearfix:after { content: ""; display: table; clear: both; } .u89becdf3ad0a5af6ef0bc04de565bf8b { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u89becdf3ad0a5af6ef0bc04de565bf8b:active , .u89becdf3ad0a5af6ef0bc04de565bf8b:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u89becdf3ad0a5af6ef0bc04de565bf8b .centered-text-area { width: 100%; position: relative ; } .u89becdf3ad0a5af6ef0bc04de565bf8b .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u89becdf3ad0a5af6ef0bc04de565bf8b .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u89becdf3ad0a5af6ef0bc04de565bf8b .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u89becdf3ad0a5af6ef0bc04de565bf8b:hover .ctaButton { background-color: #34495E!important; } .u89becdf3ad0a5af6ef0bc04de565bf8b .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u89becdf3ad0a5af6ef0bc04de565bf8b .u89becdf3ad0a5af6ef0bc04de565bf8b-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u89becdf3ad0a5af6ef0bc04de565bf8b:after { content: ""; display: block; clear: both; } READ: Hiv And Aids EssayThere are very few positive sides to this society. There is no problem of human error in society.Computers make most of the decisions. There is almost no problem with crime or violence because all of the people are so controlled and watched. While those two positive aspects may seem good to some people, the society that was created is not.All of the things inside of people that made it possible for technology to be developed have been taken away. There is no more creativity or individuality. Everyone is the same and they have no way to be an individual. There is no heart and no fun involved in life any more. The society is no longer a society of people. I t is a society of machines. The people have become the technology. The technology that the people worked so hard to create and control, now controls them. Robert Zemeckis shows a much nicer and happier future in Back to the Future. Technology is still very present, but the people are still in control. Society is almost the same place as it is today. The people still work and still have their own personality and still make decisions for themselves. Nothing seems to have changed from the present except for several advances in technology. Zemeckis chooses to concentrate on one aspect of technology that has been developed in this future time. That one main aspect is the development of the technology necessary for time travel to happen. Doc Brown (Christopher Lloyd) has developed a time machine. It looks just like a DeLorean, but it has been modified to allow it to go into the future or back into the past. Marty (Michael J. Fox) gets in the car to escape danger and ends up in a time period before he was born to the time when his parents were his age. He goes back and forgets about the advances that have been made in technology between then and the time in which he was living. He keeps remembering things from the future that are not in the time period in which he is stranded. Even his clothes represent changes that have occurred in technology in the few years that separated these two time periods. Technology is truly evident in the way that things look and the way that things are run. Time travel is not a new concept of technology, but it is a new concept which is believed to have been invented this short distance into the future. The technology that was used to develop this machine was based on an idea that had occu rred to the scientist long in the past. Technology in this society has allowed for the machine to be developed. The society as a whole has not changed from the present very much. The time machine seems to be the only difference. It is scary to think that people could use this technology to travel throughout time. The only problem with it is that it can be used to change history. When Marty returns from his trip, he realizes that he has created an alternate future. Technology can now be used to change the past as well as the future. It has made it possible for people to control all the events that have ever happened in the history of the world. Back to the Future presents a much nicer picture of the future than does Lucas in THX 1138. It shows that it has not changed very much. The one thing that is scary is that the future could be constantly changing, if the technology of the time machine was made available to everyone. This would mean that there would be no set future for the world. Each person would try to change the future so that everything would benefit themselves. This would lead to the eventually destruction of society and maybe no future at all. .u5ef8f9fd3391626ee400350b323bc686 , .u5ef8f9fd3391626ee400350b323bc686 .postImageUrl , .u5ef8f9fd3391626ee400350b323bc686 .centered-text-area { min-height: 80px; position: relative; } .u5ef8f9fd3391626ee400350b323bc686 , .u5ef8f9fd3391626ee400350b323bc686:hover , .u5ef8f9fd3391626ee400350b323bc686:visited , .u5ef8f9fd3391626ee400350b323bc686:active { border:0!important; } .u5ef8f9fd3391626ee400350b323bc686 .clearfix:after { content: ""; display: table; clear: both; } .u5ef8f9fd3391626ee400350b323bc686 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u5ef8f9fd3391626ee400350b323bc686:active , .u5ef8f9fd3391626ee400350b323bc686:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u5ef8f9fd3391626ee400350b323bc686 .centered-text-area { width: 100%; position: relative ; } .u5ef8f9fd3391626ee400350b323bc686 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u5ef8f9fd3391626ee400350b323bc686 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u5ef8f9fd3391626ee400350b323bc686 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u5ef8f9fd3391626ee400350b323bc686:hover .ctaButton { background-color: #34495E!important; } .u5ef8f9fd3391626ee400350b323bc686 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u5ef8f9fd3391626ee400350b323bc686 .u5ef8f9fd3391626ee400350b323bc686-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u5ef8f9fd3391626ee400350b323bc686:after { content: ""; display: block; clear: both; } READ: CONTENT ON THE INTERNET: FREE OR FETTERED? EssayGeorge Lucas and Robert Zemeckis both portray the future in their films. The future however is very different between the two movies. In THX 1138 everyone is controlled by the technology that has created computers that can control things. In Back to the Future each individual person has the option to control the future of the world. Both movies give too much power to one thing. Either Technology or the individual have too much power to have society run smoothly. Both of these things would most likely lead to the destruction of society as it is. A point must be reached somewhere in the middle or there may not even be a future for people to dream about. Works CitedBack to the Future. Dir. Robert Zemeckis. Perf. Michael J. Fox, Christopher Lloyd, Lea Thompson. 1985. Videocassette. Universal Pictures, 1986. THX 1138. Dir. George Lucas. Perf. Robert Duvall, Donald Pleasence. 1970. Videocassette. Warner Brothers, 1971Category: Music and Movies