AVA Research Grant Result

Comparing Certified Valuers

Among ASEAN Countries
Assoc. Prof. Pachara Pacharavanich
Naridtanan Palakavong na Ayuthaya Phd.
6th May 2016
Agenda
• Introduction
• Valuation Law and Regulation
• Valuation Standards and Code of Ethics
• Valuer Information and Qualifications
• Summary and Conclusion

2
INTRODUCTION
• Scope of the research
• Objective
• Expected benefits

3
Introduction
• Valuer should have skill and knowledge to assess how much asset
worth for the purpose of
o Sale and/or purchase property
o Housing loan
o Asset expropriate

• Many countries in ASEAN have different

o Law and regulations
o Profession organizations to regulate valuers
o Valuation standards
o Code of ethics
o Qualifications for each valuer level
 Education
 Experience
 Examination
 Continuing Professional training hours before and after passing the examination
 Type and value of assets

4
Introduction
• Scope of the research
o Qualitative Method : Interview
o The interviewee from 8 ASEAN countries that registered as ASEAN Valuer
Association’s (AVA) member

• Objective
o Compare valuers qualification among ASEAN that benefit for investors and
valuation firms when referring valuation among ASEAN countries

• Expected benefits
o Valuers and valuation firms when conduct the valuation across countries
o Investors who invest in the ASEAN countries would have more confident in
valuation and valuer’s qualification when required cross country valuation
assignment
o Supporting the ASEAN Valuation Standards and Principle Guidelines

5
SUMMARY CHART OF :
VALUATION LAW AND
REGULATION
• Existing of law and regulation

6
 Valuation Law and regulation
Brunei Do not have valuation Thailand
Darussalam law and regulation

Book of Burden/Obligation about Law and regulation

certification of professional certificate
practice for valuation and real estate Have 10 laws that enact in
services country
Regulated by Ministry of Cambodia
Vietnam Regulated by Price Management
Economy and Finance Department, Ministry of Finance

Regulation of the Minister of Finance of the

Republic of Indonesia No.101/PMK.01/2014
Concerning Public Appraiser Appraiser Act (Chapter 16)
Regulated by Finance
Professions Supervisory Center Indonesia Have the official law, Singapore Regulated by Inland Revenue
(PPPK), Ministry of Finance regulation and regulator Authority of Singapore (IRAS)

Valuers, Appraisers and Estate Real Estate Service Act

Agents Act 1981 (Act 242) of the Philippines
and Rules 1986 Malaysia Philippines
Regulated by Professional Regulatory
Regulated by The Board of Valuers, Commission (PRC)
Appraisers and Estate Agents (BOVAEA)

7
SUMMARY CHART OF :
VALUATION STANDARDS AND
CODE OF ETHICS
• Existing of Valuation standards

8
 Valuation Standards and Code of Ethics
Brunei Do not have Valuation
Standard and Ethics :
Darussalam Standards,Code of Ethics Cambodia
Refer to RICS
and regulator

Valuation Standards and Standard: Vietnam valuation standard

No. 02 – 10 and No.13
Standard : Indonesian Valuation Standards (SPI) Code of Ethics Ethics : Vietnam Valuation Standard
Ethics : Indonesian Valuers Code of Ethics (KEPI) No.1 (Code of Ethics)

Indonesia Vietnam Regulated by Price Management

Regulated by Indonesian
Society of Appraisers (MAPPI)
Standard : Malaysian Valuation Standards
Ethics : Valuers, Appraisers and Estate
Agents Rules 1986 (Rules no. 62-82)
Regulated by The Board of
Valuers, Appraisers and Malaysia
Estate Agents (BOVAEA)
Have the official Valuation
Standards,Code of Ethics
and regulator
Department, Ministry of Finance
Standard and ethics : The 1997
codes of professional ethics and
standards of professional appraisal
practice ,VAT
Regulated by The Valuers
Thailand Association of Thailand (VAT)
Standard and ethics : Standards
and Code of Ethics of valuation in
Thailand, SEC (only asset in listed
companies in Stock Exchange of Thailand)

Standard : Philippine Valuation Standards Regulated by The Securities and

Ethics : Exchange Commission (SEC)
• Code of Ethical Principles for Professional Standard and Ethics :
Valuers SISV Valuation Standards and Practice
• International Ethics Standards Coalition Philippines Singapore
Guidelines
Regulated by Professional Regulatory Board of Regulated by Singapore Institute of
Real Estate Services (PRBRES) Surveyors and Valuers (SISV) 9
SUMMARY TABLE OF :
VALUATION STANDARDS
• Existing of Valuation standards
• Regulator
• Example of the valuation standards

10
 Valuation Standards and Code of Ethics
• Valuation standards
No. Country Have valuation Valuation standard’s Regulator Example of the valuation standards
standards name

1. Brunei Refer to RICS - - -

Darussalam
2. Cambodia  - - -
3. Indonesia  Indonesian Valuation Indonesian Society of • Valuers are obliged to signing at
Standards (SPI) Appraisers (MAPPI) least 1 valuation report every 2
years
• Keeping records of valuation
documents at least 10 years
4. Malaysia  Malaysian Valuation The Board of Valuers, • Update valuation report for the client
Standards Appraisers and Estate will prepare by the same firm in 3
Agents (BOVAEA) years since the full valuation report
was sent
5. Philippines  Philippine Valuation Professional • Retaining all hard copy or soft file of
Standards Regulatory Board of valuation report’s supporting data in
Real Estate Services any media at least 5 years
(PRBRES)

Noted :  = have valuation standard in that country

:  = did not have valuation standards in that country 11
 Valuation Standards and Code of Ethics

• Valuation standards (Cont.)

No. Country Have valuation Valuation standard’s name Regulator Example of the valuation
standards standards
6. Singapore  SISV Valuation Standards Singapore Institute of -
and Practice Guidelines Surveyors and Valuers (SISV)
7. Thailand  • The 1997 codes of • The Valuers Association of • Maintain important and
professional ethics and Thailand (VAT) supporting documents
standards of professional at least 5 years
appraisal practice , VAT

• Standards and Code of • The Securities and

Ethics of valuation in Exchange Commission
Thailand, SEC (SEC)

8. Vietnam  Vietnam valuation standard Price Management • Retain valuation

No. 02 – 10 and No.13 Department, document
Ministry of Finance o Papers: at least 10
years
o Electronics file :
forever

Noted :  = have valuation standard in that country

:  = did not have valuation standard in that country 12
SUMMARY TABLE OF :
VALUATION CODE OF ETHICS
• Existing code of ethics
• Regulator
• Levels of Penalty

13
 Valuation Standards and Code of Ethics
• Code of ethics
No. Country Have code of Code of ethics’ name Regulator Penalty
ethics

1. Brunei Refer to RICS - - -

Darussalam
2. Cambodia  - - -
3. Indonesia  Indonesian Valuers Code of Indonesian Society of • 5 levels
Ethics (KEPI) Appraisers (MAPPI) 1) Warning
2) limitation of valuation subject
3) limitation of valuation field
4) Suspension
5) license revocation
4. Malaysia  Valuers, Appraisers and The Board of Valuers, • 5 levels
Estate Agents Rules 1986 Appraisers and 1) Admonishment and record to the register
(Rules no. 62-82) Estate Agents 2) Admonishment or fine not exceeding
(BOVAEA) than 10,000 Ringgit or both and
recording to the register
3) Fine not exceeding than 25,000 Ringgit,
recording to the register and will
suspend the valuation until the fine is
paid
4) Suspension the license not exceeding
than 3 years
5) Cancellation the license.
Noted :  = have code of ethics in that country
:  = did not have code of ethics in that country
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 Valuation Standard and Code of Ethics
• Code of ethics (Cont.)

No. Country Have code Code of ethics’ name Regulator Penalty

of ethics
5. Philippines  • Code of Ethical Principles Professional • 3 levels
for Professional Valuers Regulatory Board of 1) Suspension
• International Ethics Real Estate Services 2) Revocation
Standards Coalition (PRBRES) 3) Cancellation the license
registration
6. Singapore  SISV Valuation Standards and Singapore Institute of • 3 levels
Practice Guidelines Surveyors and Valuers 1) Warning
(SISV) 2) Suspension
3) Expelling from the
Institute

Noted :  = have code of ethics in that country

:  = did not have code of ethics in that country
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 Valuation Standards and Code of Ethics
• Code of ethics (Cont.)
No. Country Have code of Code of ethics’ name Regulator Penalty
ethics
7. Thailand  • The 1997 codes of • The Valuers • 5 levels:
professional ethics and Association of 1) Warning by document
standards of professional Thailand (VAT)
2) Warning by document and announce
appraisal practice , VAT
to the public for 15 days – 1 month
3) Suspension to endorse valuation
report or temporary revocation from
association valuer’s list
4) Temporary discard from association
membership and revoke from
association valuer’s list
5) Permanently discard from association
membership and revoke from
association valuer’s list

• Standards and Code of • The Securities and • 2 levels

Ethics of valuation in Exchange 1) Suspension to endorse the
Thailand, SEC Commission (SEC) valuation report not more than 10
years since SEC’s decision was
announced.

2) Revocation to endorse the valuation

report not more than 10 years since
Noted :  = have code of ethics in that country SEC’s decision was announced.
:  = did not have code of ethics in that country
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 Valuation Standards and Code of Ethics
• Code of ethics (Cont.)
No. Country Have code of Code of ethics’ name Regulator Penalty
ethics
8. Vietnam  Vietnam Valuation Standard Price Management • Fined around 50,000,000 VND
No.1 (Code of Ethics) Department,Ministry of to 70,000,000 VND or
Finance
• Suspension practicing valuer’s
license for 70-90 days

Noted :  = have code of ethics in that country

:  = did not have code of ethics in that country
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Valuation Standards and Code of Ethics

• Brunei Darussalam did not have its standards and code of

ethics but will refer to
o The Royal Institution of Chartered Surveyors (RICS)
o International Valuation Standards (IVS)
o Singapore Institute of Surveyors and Valuers (SISV)

• Cambodia
o CVEA and Ministry of Economy and Finance are regulators.
o Did not have any details about these topics to govern their valuation
companies and valuers.

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SUMMARY CHART OF :
VALUER INFORMATION AND
QUALIFICATIONS :
• Valuer Level

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Valuer Information and Qualifications : Valuer Level
Licensed Valuer (unlimited value) Business valuer (Unlimited value)
• Any type of asset • Economic losses
Probationary Valuer • Intangible assets
Malaysia Philippines Property valuer (Unlimited value)
Registered Valuer • Machinery and equipment used in
(unlimited value) production process
• Any type of asset Indonesia
Simple Property valuer (Unlimited value)
• Vacant land
• 1 apartment/resident building

Valuer Cambodia Member (Unlimited value)

• Land and buildings
Singapore Fellow (Unlimited value)
Valuer level • Land and buildings
Assistant valuer
Brunei
Darussalam
Recognised Valuer
Qualified valuer (less than 20 Million Baht)
• Vacant land
• Residential or commercial building less than 2,000 sq.m

Qualified General Valuer (less than 400 Million Baht)

Vietnam Thailand • Vacant land
• Residential or commercial building less than 10,000 sq.m
Qualified Senior Valuer:by valuation association (Unlimited
Practising Valuer (Unlimited value) value)
• Any type of asset  Any types of the asset
 An inspector and give the opinion as the third party
 IF valuers assess asset in Stock Exchange of Thailand,
valuers have to be approved by SEC

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SUMMARY TABLE OF :
VALUER INFORMATION AND
QUALIFICATIONS
• Level of Valuer
• Age
• Citizenship requirement
• Education
• Experience requirement

21
 Valuer Information and Qualifications
• Age, citizen of valuer, education and experiences

No. Country Valuer level Age Citizen of valuer Education Experience

1. Brunei • Assistant • A diploma degree in
Darussalam valuer real-estate related
field
• A bachelor degree • 3 years of full-time work
• Recognised n/a n/a in specified or experience under the
Valuer related field of supervision of
valuation from recognised valuers.
accredited
university.
2. Cambodia Valuer n/a n/a Bachelor degree on 6 months
related field
3. Indonesia • Simple • 2 years of work
Property experience with 600
Valuer working hours on
valuation assignment
No requirement
for all valuer levels Bachelor degree or
• Property No requirement • For property and
but must have the equivalent.
Valuer for all valuer business valuer : 3 years
levels evidence to prove that Real estate-related
• Business degree is not required of work experience with
the valuer has a
valuer domicile in Indonesia 1,000 working hours on
valuation assignment
which includes 200
working hours as
supervisor or equivalent
Note : n/a = data not available 22
 Valuer Information and Qualifications
• Age, citizen of valuer, education and experiences (Cont.)
No. Country Valuer level Age Citizen of Education Experience
valuer
4. Malaysia • Probationary No requirement For all valuer • Bachelor Degree and have a • No requirement
Valuer for all valuer levels will be a major subject on of this
levels Citizen or scope:
permanent o real estate property
inhabitant in management
Malaysia o land management
• Registered • No requirement but can imply • A probationary valuer at
Valuer that it as same as least for 2 years
probationary valuer • Practice training
• Valuation area at least
3 of 8 areas
5. Philippines Licensed No requirement Citizen of Business Administration on Real The valuer can take the
valuer Philippines Estate Management license exam without
(BS REM) practical experience.
6. Singapore Membership
Classification
for license
valuer
• Member • At least 21 • At least 5 years of approved • Professional practice and
years n/a technical and practical study take an exam

• Fellow • At least 35 • n/a • Professional practice, be

years a Member at least 2
years and have another
qualification
Note : n/a = data not available 23
 Valuer Information and Qualifications
• Age, citizen of valuer, education and experiences (Cont.)
No. Country Valuer level Age Citizen of valuer Education Experience
7. Thailand • Qualified valuer No requirement • No requirement All of valuer level will : All of valuer level
• Qualified for all valuer for all valuer level • Graduate in bachelor, • The higher graduation
General Valuer level diploma degree in level, the fewer years of
• Qualified specified or related field. experience will apply.
Senior Valuer: • If the certified education
by valuation did not show, the valuer
association will work continuously in
• Qualified • Qualified Senior property valuation and
Senior Valuer: Valuer: by SEC have experience that
by SEC must have Thai identify by the regulation.
citizen
8. Vietnam* Practising Valuer No requirement • Citizen of The valuer will be qualified At least 3 years after
Vietnam by one of this scope valuers graduated their
or • Graduate bachelor degree degree.
• Foreigners who in valuation field including
have Vietnam economy techniques,
Temporary valuation law
Residence card • Graduate in other fields,
will pass the valuation
professional training
and pass the exam
which take at the end of
the course.

Note : * Qualification of practicing valuer in the table is requirement for Vietnamese citizen
: n/a = data not available 24
SUMMARY TABLE OF :
VALUER INFORMATION AND
QUALIFICATIONS
• CPD before examination
• Examination
• Type and value of asset
• License renewal

25
 Valuer Information and Qualifications
• CPD before examination, examination, type and value of asset, license renewal
No. Country Valuer level CPD before Examination Types of Asset Value of asset License renewal
examination
1. Brunei • Assistant valuer
Darussalam • Recognised n/a n/a n/a n/a n/a
Valuer
2. Cambodia Valuer n/a No requirement n/a n/a Every year
3. Indonesia • Simple No requirement Pass Valuer Specify for each Unlimited for all No license
Property Valuer for all valuer Certification valuer level valuer levels expiration for all
• Property Valuer level Exam, both written valuer levels
• Business valuer and oral, in each Renewal is not
service sector required.
4. Malaysia • Probationary No requirement • No requirement • No requirement • No requirement Every year for all
Valuer for all valuer valuer levels
levels
• Registered • Will pass • Any types of • unlimited
Valuer professional asset
interview (oral
examination)
under Test of
Professional
Competence
(TPC)
5. Philippines Licensed valuer No requirement Written Any types of asset Unlimited Every 3 year
examination and include all the
rights benefit that
related to asset
Note : n/a = data not available
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 Valuer Information and Qualifications
• CPD before examination, examination, type and value of asset, license renewal
No. Country Valuer level CPD before Examination Types of Value of asset License renewal
examination Asset
6. Singapore Membership
Classification for At least 60 hours
Specify for each Lands and
license valuer in 3 years with at
valuer level that buildings for Unlimited for all
• Member least 30 hours in valuer levels Every year
related to accredit all valuer
core CPD for all university levels
• Fellow valuer level

7. Thailand • Qualified No requirement • All valuer levels : • All valuer levels

valuer for all valuer levels Written renew their licenses
• Qualified examination every 3 year
General Valuer

• Qualified • Written and oral

Specify for
Senior examinations Specify for each
each valuer valuer level
Valuer:by level
valuation
association
• Qualified • Written by • Qualified Senior
Senior Valuer: valuation Valuer: by SEC renew
by SEC associations and license every 2 year
interviewed by SEC
8. Vietnam* Practising Valuer No requirement Written examination Any types of Unlimited that No license expiration.
that conducted by asset that depend on the Renewal is not required
Price Management depend on valuer
Department, Ministry valuer competence
of Finance competence
Note : * Qualification of practicing valuer in the table is requirement for Vietnamese citizen
: n/a = data not available 27
SUMMARY TABLE OF :
VALUER INFORMATION AND
QUALIFICATIONS
• Valuer level
• CPD after passing examination
• Valuation association membership
• Valuation standard and code of ethics, training and Examinations

28
 Valuer Information and Qualifications
• CPD after examination, valuation association membership, Valuation standards and
code of ethics, training and Examinations

Valuation standard and

CPD after passing Valuation association
No. Country Valuer level code of ethics, training
examination membership
and Examinations
1. Brunei • Assistant valuer No formal Valuation
Darussalam • Recognised Association; however, in
n/a n/a
Valuer Asean the valuers will be
under AVA Brunei Chapter
2. Cambodia Valuer n/a No requirement No requirement
3. Indonesia • Simple • 20 CPD hours per all valuer levels register to All of value levels :
Property Valuer year Indonesian Society of • Pass valuation standard
Appraisers (MAPPI) exam and training
organized by Minister of
• Property Valuer • 25 CPD hours per Finance Republic
• Business valuer year for Property Indonesia
and Business valuer • Pass ethics training
organized by
Indonesian Society of
Appraisers (MAPPI)
Note : n/a = data not available
29
 Valuer Information and Qualifications
• CPD after examination, valuation association membership, Valuation standards and
code of ethics, training and Examinations
Valuation standard and
No. Country Valuer level CPD after passing Valuation association membership
examination code of ethics, training and
Examinations

4. Malaysia • Probationary • No requirement No requirement for all valuer levels • No requirement

Valuer to register in any valuation
association
• Registered • At least 10 hrs. in 1 • Registered Valuer pass
Valuer year for license valuation standards and
renewal code of ethics, training
and examinations and will
be interviewed under Test
of Professional
Competence (TPC) which
is conducted by BOVAEA
5. Philippines Licensed valuer 45 CPD hours in 3 • Institute of Philippine Real Estate • Must train and pass
years that include Appraisers (IPREA) or Philippine standards and code of
seminar and workshop Association of Realty Appraisers ethics examination before
in academic knowledge (PARA) candidate will take
• After they pass the test, they licensure examination
will join to national that will be conducted by
organization of valuers that is valuation association that
IPREA they have registered
Note : n/a = data not available 30
 Valuer Information and Qualifications
• CPD after examination, valuation association membership, Valuation standards and
code of ethics, training and Examinations (Cont.)
Valuation standard and
No. Country Valuer level CPD after passing Valuation association
examination membership code of ethics, training and
examinations
6. Singapore Membership
All valuer levels
Classification for At least 60 hours in 3 All valuer levels must train
register to Singapore
license valuer years with at least 30 by SISV with passing
hours in core CPD Institute of Surveyors requirement of FEPM
• Member and Valuers (SISV)
• Fellow
7. Thailand • Qualified valuer All levels will collect at All valuer levels • All valuer levels pass the
• Qualified least 20 hrs. in 3 years register to The Valuers “Valuation standards and
General Valuer that can separate into 2 Association of Thailand code of ethics” training
• Qualified Senior categories : (VAT) or Thai Valuers and examination only one
Valuer: by • 10 hours for academic Association (TVA) time which conduct by
valuation knowledge related to valuation association.
association valuation training
• Qualified Senior • 10 hours for
Valuer: by SEC seminar/teaching/other
activities

Note : n/a = data not available

31
 Valuer Information and Qualifications
• CPD after examination, valuation association membership, Valuation standards and
code of ethics, training and Examinations (Cont.)

Valuation standard and code

No. Country Valuer’s level CPD after passing Valuation association
examination membership of ethics, training and
examinations
8. Vietnam* Practising Valuer At least 20 hours per Vietnam Valuation • Training program
year that can separate Association (VVA) conducted by institutions
into 2 categories : that approved by Ministry
• 10 hours of academic of Finance
knowledge related to • Examination: included in 6
valuation valuation examinations
• 10 hours of organized by Price
seminar/other Management Department,
activities. Ministry of Finance

Note : * Qualification of practicing valuer in the table is requirement for Vietnamese citizen
: n/a = data not available
32
Summary and Conclusion
• In December 2015 with establishment of Asean Economic Community (AEC)
community, which encourage on free trade and tax in ASEAN countries. Trade and
investment will increase dramatically. Cross-Border Investment in land and building
across ASEAN countries is required valuation.
• Our research have found that each ASEAN country has its own valuation standards,
principles and valuer qualifications making difficulties to conclude the value of
properties.

33
Summary and Conclusion
o Concrete law and regulations, standards, code of ethics, penalty, and
official organization to control the valuer in each country.

o Proposed of similar minimum requirement on education, experience, and

examination to screen the competency and knowledge of the person,
who need to be a qualified valuer in each country.
 Examination to evaluate the competency and knowledgeable for the person
that need to be a qualified valuer in each country

o Specify Continuing Professional Development (CPD) before and after

passing certified valuer examination
 To Evaluate the competency of valuer
 Update valuation profession knowledge

34
Summary and Conclusion

• Result of suggestion
o Improve confidence the valuers and valuation firms when conduct the
valuation across countries amongs fellow Valuer.
o Improve Foreign investor confidence to invest in ASEAN countries and
have better confident in valuation outcome and the valuer’s qualification
when cross country valuation assignment required.
o Support the “ASEAN valuation Standards and Principle Guidelines” under
the title of valuer‟s qualifications which may be published in the near
future.

35
BIBLIOGRAPHY

36
 Assoc.Prof. Pachara Pacharavanich
mpachara@gmail.com

Experience
• Thammasat University, Thailand
1996 – Present Associate Professor at Faculty of Commerce and Accountancy
2013 – Present Associate Dean for Academic Affair and Graduate Studies

• Valuation Committee
Present AVA National Committee (Thailand)
2013 – Present Advisor to the Working Group for Consideration of Property Valuation Practice,
The Securities and Exchange Commission (SEC), Thailand
2012 – Present Advisory of the Property Valuation Sub Committee, The Treasury Department
2012 – Present Academic Subcommittee Head, The Valuers Association of Thailand (VAT)
2012 – 2015 Chairman subcommittee on Valuer Training Development, The Valuers Association
of Thailand (VAT)
2007 - 2009 Sub-Committee for Consideration of Establishment and Management of
Property Funds, The Securities and Exchange Commission (SEC),Thailand

37
 Ms.Naridtanan Palakavong Na Ayuthaya Phd.
narid@cpmcapital.co.th

Experience : Current Positions

Present Research Grant Committee, ASEAN Valuers Association (AVA)

2012 – Present Board Committee, The Valuers Association of Thailand

2006 – Present Chief Executive Officer of CPM CAPITAL Co., Ltd
2012 – Present Public Relation Subcommittee, The Valuers Association of Thailand (VAT)
Present Qualified Principal Valuer, Thailand
Present Certified Valuer (Mass Valuation), Treasury Department of Thailand
Present Lecturer Thammasat University, Thailand

38
 Thank you
Q&A
Contact :narid@cpmcapital.co.th
:mpachara@gmail.com

Terima Khob Khun Cam on Khob Jai Terima Salamat Je su tin Terima Aw Kun Terima
Kasih Kasih ba de kasih Kasih
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