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APRIL’S EXPORTS INCREASE 14% Y-O-Y TO RM84.2 BILLION

In April 2018, exports surged 14% to RM84.2 billion from a year ago, driven by electrical and electronic (E&E) products, timber and timber-based products, palm oil and palm oil-based products and refined petroleum and crude petroleum. Liquefied natural gas (LNG) and natural rubber however recorded a decline in export volume and average unit value. Exports in April 2018 currently stands as the second highest monthly export value recorded for the year, after the March 2018 export figure of RM84.5 billion.

(The Sun, 06/06/2018)


 

INVEST SELANGOR OPTIMISTIC OF ATTRACTING RM12 BILLION WORTH OF INVESTMENTS

During 2018, Invest Selangor Bhd is optimistic of drawing in RM12 billion in domestic and foreign investments, despite the subdued inflow of investments into the state during 1Q18. Out of the RM12 billion target, the manufacturing sector is expected to bring in foreign and domestic investment of RM7 billion, whereas the services sector accounts for the remaining RM5 billion. In order to draw in investments, Invest Selangor will focus on five core industrial clusters: electrical and electronics, food and beverages, equipment and machinery, life sciences and transportation handling equipment.

(The Star, 06/06/2018)


 

LANGKAWI NEW CITY PROJECT NOT YET APPROVED

The reclamation of 2,002 acres of land in Langkawi to build a “Dubai-like” mixed-development project will be contingent on relevant approvals. Property developer, Ting Pek Khiing, announced that the RM30 billion “Langkawi New City” project would undergo massive reclamation of the sea area adjoining Langkawi Interna­tional Airport.

(The Star, 02/06/2018)


 

DBKL TO DISCARD TEN PROJECTS WORTH RM1 BILLION

Kuala Lumpur City Hall (DBKL) will terminate ten projects worth approximately RM1 billion, which will include roads, parking projects and sports club projects. Some of these projects were still in the stage of tendering and some were yet to be tendered out.

(The Sun, 05/06/2018)


 

KPKT TO REVISIT SAFE HIGHLAND TOWERS DEVELOPMENT

The Minister of Housing and Local Government (KPKT) will be looking at redeveloping the Highland Tower area in Ulu Klang, Selangor. KPKT will establish a special committee, which will be in charge of taking over the land to safely rebuild where houses were destroyed during the 1993 landslide and to execute relevant feasibility studies.

(Starproperty.com.my, 05/06/2018)


 

KL CITY PLAN 2020 TO BE GAZETTED BY THE END OF 2018

Kuala Lumpur City Hall (DBKL) will require six additional months to complete the gazetting of land plots within its jurisdiction, as part of the KL City Plan 2020. The gazetting of land plots is crucial in empowering the authorities to be attentive towards issues pertaining to land development and its processes within the city, which includes land transfers and title conversions.

(The Malaysian Reserve, 05/06/2018)


ZERO GST SET TO SPUR DOMESTIC AIR TRAVEL

The Malaysian Association of Tour and Travel Agents (MATTA) denoted that demand for local air travel is expected to surge between 5% and 10% du­ring the transition period towards implementing the Sales and Services Tax (SST). Heightened savings will therefore be experienced by domestic air travellers, particularly during high peak seasons whereby air fares are typically higher. The Government has announced that it will implement the SST in September 2018 to replace the Goods and Services Tax, thus translating into extra savings and encouraging higher spending particularly for leisure travellers.

(The Star, 02/06/2018)


 

MELAKA GOVT TO FOCUS ON THREE PORT PROJECTS

The Melaka Government is shifting its focus towards developing three ports in Melaka: Port of Melaka Gateway, Port of Tanjung Bruas and Port of Kuala Linggi. Upon completion, Port of Melaka Gateway will boost Melaka’s economy via tourism, Port of Kuala Linggi could potentially become an international port and Port of Tanjung Bruas will serve as a container port which handles transportation operations. The Port of Tanjung Bruas project involves local companies, development of Port of Kuala Linggi is currently open for bidding and reclamation works for Port of Melaka Gateway will be jointly undertaken by KAJ Development Sdn Bhd and foreign investors.

(NST, 05/06/2018)


 

BERJAYA GROUP WILL BUILD AN AIRPORT ON TIOMAN ISLAND

Berjaya Group will be submitting plans to the government for the construction of an airport on Pulau Tioman, in Rompin District, Pahang, 32 kilometres off the east coast of the state. At an approximate cost of RM1.2 billion, construction of the airport would be financed via Berjaya Group’s internal funds and borrowings and would be managed by the government if it is approved. The airport is expected to boost tourist arrivals to the island, which was once voted as one of the “world’s top 10 most beautiful islands”.

(The Edge, 08/06/2018)


 

HSS UNIT RECEIVES TERMINATION LETTER FOR MRT3 CONTRACT

HSS Engineers Bhd’s associate, HSS Integrated Sdn Bhd (HSSI), has received a termination letter for its role as the independent engineering consultant for the Mass Rapid Transit Line 3 (MRT3) project. HSSI received a 30 day written notice from MRT Corp Sdn Bhd, which expressed the termination of the contract as per the government’s decision.

(The Sun, 08/06/2018)


 

MAHB ALLOCATES RM30 MILLION FOR “AIRPORT 4.0” INITIATIVE

Malaysia Airports Holdings Bhd (MAHB) has allocated RM30 million to implement the “Airport 4.0” digital initiative by prioritising digital interaction with passengers. The “Airport 4.0” concept will leverage on the integration of “Big Data Analytics” and “Internet of Things” devices to enhance airport operations via reduced queue waiting times and congestion, managing facilities for passenger comfort and anticipating foot traffic flows. Latest developments include the launch of the MYairports app, which features information regarding the KLIA Main Terminal and information on klia2, the second terminal, will soon be available.

(NST, 05/06/2018)


 

DBE PAYS RM5.4 MILLION FOR KINTA LAND

DBE Gurney Resources Bhd will diversify into the property development industry (alongside its poultry business) by acquiring 28 acres of land in Kinta, Perak, for RM5.39 million. DBE’s wholly owned subsidiary, DBE Development Sdn Bhd, has entered into a conditional sale and purchase agreement with Glitter Holdings Sdn Bhd for the purchase.

(The Sun, 06/06/2018)


 

LBS BINA REQUESTS RELAXING HOUSING LOAN CONDITIONS

In 2018, LBS Bina Group Bhd encountered a 45% cancellation in sales (predominantly first time buyers) and are now requesting that Bank Negara considers relaxing lending guidelines for house buyers. End-financing rules are largely stringent, which results in residences being unaffordable for many potential purchasers. In early July 2018, LBS will prospectively launch Phase 2 of Alam Perdana, which comprises 884 terraced houses with a Gross Domestic Product (GDV) of RM470 million. Later on in September 2018, terraced homes, with a GDV of RM488 million, within Phase 1 of Cybersouth in Dengkil, are scheduled to be launched.

(The Sun, 07/06/2018)


 

ECONPILE SECURES RM20.5 MILLION CONTRACT

Construction Company, Econpile Holdings Bhd, has secured a RM20.5 million piling and substructure works contract from M/S KL Gateway Sdn Bhd. This contract entails works on a residential block for Phase 2 of the KL Gateway mixed development on Jalan Kerinchi, Kuala Lumpur. Works are to be executed on Block H of the planned development, which comprises a 41 storey serviced apartment and a 5 storey basement. The overall duration of the contract will span approximately 18 months.

(The Star, 02/06/2018)


 

CHIN HIN TO SELL SEVENTEEN SHOP OFFICES

Chin Hin Group Bhd’s wholly owned subsidiary, PP Chin Hin Sdn Bhd, will be disposing of seventeen shop offices to Chin Hin Building Materials Supply (JB) Sdn Bhd, for RM21.15 million. The disposal includes 5 three-storey shop offices in Rawang, Selangor, 3 three storey shop offices in Taman Gunung Indah, Alor Star, and 9 three-storey shop houses in Taman Bandar Baru Mergong, Alor Star.

(The Sun, 07/06/2018)


 

MULIA TO ALIGN EXCHANGE 106 DEVELOPMENT WITH CURRENT GOVT’S MANDATE

Indonesian property developer, Mulia Group, which owns 49% of the Exchange 106 office building at the 70 acre Tun Razak Exchange (TRX) in Kuala Lumpur, is seeking guidance from the new Malaysian government regarding the project. Mulia is currently in the process of seeking engagement with the government for discussions with government-linked companies which may occupy the tower as tenants. Exchange 106 is 51% owned by the Finance Ministry via its unit, MKD Signature Sdn Bhd and Mulia Group holds the remaining 49% share. At 106 storeys, The Exchange 106 will stand at 492.3 metres upon completion making it Southeast Asia’s tallest building.

(The Edge, 05/06/2018)


 

 

RETAILERS GROUP PROPOSES SALES & SERVICES TAX OF BELOW 6%

The Malaysian Retailers Association (MRA) has suggested that the Sales and Services Tax (SST) should be implemented at a lower rate or less than 6%, in order to circumvent significant price increases, which will then indirectly affect consumers. The Goods and Services Tax (GST) was introduced in April 2015 at 6% and has now been set at 0% from June 1st, 2018, until September 1st, 2018 when SST will be reintroduced.

(The Sun, 06/06/2018)


 

RETAIL GROUP MALAYSIA UPGRADES SALES GROWTH OUTLOOK FOR 2018

Based on the latest quarterly adjustment, Retail Group Malaysia (RGM) made an upwards revision to its projected sales growth rate for the local retail industry in 2018. The figure was increased from 4.7% estimated in March 2018 to 5.3%. The Malaysia Retailers Association (MRA) is however hopeful that business will recover by 2Q18 with an average growth rate projection of 6.0%, despite the retail industry registering a “lower than expected” growth rate of 2.6% in 1Q18. Retail sales growth rate for 3Q18 has additionally been revised from 5.2% (estimated in March 2018) to 6.8%. This revision accounts for the two remaining months of the tax break, prior to the reintroduction of the Sales and Services Tax on September 1st, 2018.

(The Sun, 07/06/2018)


 

BINA PURI TO LAUNCH TWO PROJECTS WORTH RM500 MILLION

In 3Q18, Bina Puri Holdings Bhd will prospectively launch two projects worth RM500 million. First, will be Phase 2 of The Valley (comprising 1,600 acres of homestead development in Karak, Pahang), which is expected to be launched within the next few months. With a Gross Development Value of RM150 million, Phase 2 spans approximately 400 acres which is selling at RM7 per sq. ft. and is approximately 15% to 20% booked to date. Phase 1 spanning approximately 200 acres is selling at RM5 to RM6 per sq. ft. and has now registered a sales rate over 80% Sizes of each plot of land range from 1 to 2 acres in Phase 1, whereas the majority of land plots in Phase 2 range between 5 and10 acres. Bina Puri will additionally unveil a yet-to-be-named RM350 million, 398 unit condominium development on a 3.5 acre freehold site in Cheras Pertama, which is to be developed by its subsidiary Star Effort Sdn Bhd.

(The Edge, 06/06/2018)


 

GLOMAC TO LAUNCH RM1.06 BILLION WORTH OF PROPERTIES IN 2019

Glomac Bhd, plans to launch a diverse range of products in financial year 2019, with a total gross development value (GDV) of RM1.06 billion. Mid-market and affordable segments will be focused on, whereby the group expects its landed residential products in townships such as Saujana Perdana and Saujana Jaya in Kulai, Johor, to sustain steady sales. In July 2018, Glomac will be launching its integrated freehold residential development, Plaza @ Kelana Jaya, with a total GDV of RM363 million and comprising 696 serviced apartment units accompanied by 16 three storey shop offices. In financial year 2019, the group plans to launch two serviced apartment projects in Petaling Jaya and Centro V in Bandar Utama, which comprises SoHo units and serviced apartments with a total GDV of RM266 million.

(NST, 07/06/2018)


 

HBA OBJECTS TO LEASING OF PRIVATE LAND FOR HOUSING PURPOSES

Future home buyers may find themselves “renting” in perpetuity if a proposed private lease scheme is integrated into the National Land Code 1965. The National House Buyers Association (HBA) indicated that the previous governmental administration was looking to introduce a new chapter into the Code, which would allow landowners (private corporations) to lease out their freehold land for development purposes. Land owners will lease the land to a developer for 99 years, who will then develop and construct condominiums to be sold to the public. The Department of Director General of Lands and Mines (JKPTG) under the Ministry of Natural Resources and Environment was keen on the proposal, which would be accompanied by a proposed amendment to the Strata Title Act 1985 to facilitate the implementation of the private lease scheme. As a result, private landowners would have a monopoly on ‘renting’ out land, of which condominiums, apartments or landed homes are built, whereby they will have the absolute right not to renew or continue with the lease, subsequent to the expiry of the 99 year period. Many property purchasers could be unaware of the nature of the scheme and would assume that they are purchasing a leasehold property under the state government, which is not the case. Under the scheme, the sale and purchase agreement signed by the purchaser and the developer is not for the sale of the property, but for the sale of a lease over the strata parcel. This effectively makes the purchaser a lessee of the property, and not the owner of the property.

 

(The Sun, 04/06/2018)


 

KIMLUN SECURES RM144.1 MILLION JOHOR BARU ROAD JOB

Kimlun Corp Bhd’s wholly-owned subsidiary, Kimlun Sdn Bhd, has accepted a RM144.1 million construction contract from Focus Ace Construction Sdn Bhd, for the designing and building of roads and interchanges in Johor Baru. Works are expected to conclude by the end of October 2020.

(NST, 07/06/2018)


 

RM4 BILLION RAPID TRANSIT SYSTEM PROJECT IN JOHOR TO CONTINUE

Numerous mega, high-impact projects associated with the transport industry will persist despite the country’s financial and economic uncertainty. This includes the RM4 billion Rapid Transit System involving the Bukit Cagar, Johor, to Woodlands, Singapore route, as alleviate traffic congestion along the Johor Causeway. The Prasarana Malaysia Bhd and Singapore Mass Rapid Transit strategic partnership agreement, was meant to be signed on June 30, 2018, but will be postponed to provide room for the execution of relevant studies.

(NST, 02/06/2018)


 

HSR CANCELLATION WAS AGREED UPON EARLIER

The announcement to cancel Malaysia-Singapore’s High-Speed Rail project was not a pre-emption of the Malaysian Cabinet’s decision, as the verdict was previously agreed upon by Pakatan Harapan. The decision to cancel the HSR was clearly highlighted in Pakatan Harapan’s manifesto much earlier on. Singapore’s Transport Ministry indicated that in the event whereby Malaysia terminates the project, Singapore will study the implications and exercise rights (including rights to compensation for expenses incurred) in accordance with the terms of the HSR bilateral agreement.

(The Star, 02/06/2018)


EXPAND CHECKPOINT AT SECOND LINK

The Second Link checkpoint needs a structure review plan due to increasing traffic volume. Though the checkpoint was made to cater for up to 10 million visitors per year 20 years ago, 50 million visitors are expected to utilise the checkpoint in 2018. Hence, a restructuring plan at the federal level is required for a long-term solution. There are approximately 167 immigration counters at the Second Link CIQ and the first five months of 2018 experienced 8.9 million visitors exiting the link and 8.7 million visitors entering the link.

(The Sun, 08/06/2018)


 

COUNTRY GARDEN ACHIEVES SALES OF US$52.3 BILLION IN FIRST FIVE MONTHS OF 2018, UP 37% YOY

China’s No. 1 property developer, Country Garden, clocked in 334.52 billion yuan (RM208.9 billion) in sales for the first five months of 2018, a 37% year-on-year increase. In May 2018, the developer reported “a record” 70 billion yuan in sales. In Malaysia, Country Garden is the developer of Forest City in Johor, which covers 14 sq. km. of reclaimed land on four artificial islands and has a gross development value of RM444 billion. Additional Malaysian projects include Country Garden Diamond City in Semenyih, Selangor, Country Garden Central Park in Tampoi, Johor and Country Garden Danga Bay, which is also in Johor Baru.

(The Edge, 08/06/2018)


 

TIONG NAM’S PROPERTY ARM BUYS JB LAND FOR RM40 MILLION

Tiong Nam Logistics Holdings Bhd’s wholly owned subsidiary, Medini Heritage Sdn Bhd (MHSB), has entered into a sale and purchase agreement with Pasti Prestij Sdn Bhd (PPSB), to purchase a 100 acre piece of freehold land in Johor Baru, for RM40.22 million. Property developer MHSB plans on developing the land over the next two years. The land is located in the Eastern Gateway of Iskandar Malaysia, close to the Pasir Gudang Industrial Hub and Tanjung Langsat Industrial Park.

(The Sun, 07/06/2018)


 

SP SETIA EXPECTS A REVIVAL IN THE PROPERTY MARKET

After experiencing a downtrend over the past three years, SP Setia Bhd expects Johor’s property market to experience sustained growth. In terms of demographics, numerous younger individuals were seeking houses and despite tighter bank lending requirements seen in the last three years, demand existed for landed residential properties with an average price of RM500,000. Potential house buyers have also expressed their request for bank lending requirements to be eased, as they are already saddled with other burdens such as paying off the National Higher Education Fund Corporation (PTPTN) and outstanding car loans.

(NST, 05/06/2018)


 

KPG AWARDED RM138.65 MILLION SERI TANJUNG PINANG LINK BRIDGE CONTRACT

Kerjaya Prospek Group Bhd (KPG) has secured a civil engineering contract worth RM138.65 million for the Seri Tanjung Pinang Phase 2 (STP 2) development, via a related party transaction. KPG’s wholly owned subsidiary, Kerjaya Prospek (M) Sdn Bhd, has accepted a letter of award from Tanjung Pinang Development Sdn Bhd (TPD) for construction works of a “marine bridge”. The bridge crosses the sea and would link Jalan Seri Tanjung Pinang on Penang Island to the STP 2 Island. TPD is a subsidiary of Eastern & Oriental Bhd and holds concession rights to the two-phase STP reclamation project. Construction works on the bridge will span approximately 27 months from its scheduled commencement on June 11, 2018, and is targeted for completion by September 10, 2020. STP 2 is a 760-acre reclaimed island situated across the eastern waters of STP 1, whereas STP 1 is a 240-acre reclamation project on the Penang main island, which is fully reclaimed and close to completion.

(The Sun & NST, 05/06/2018)


 

TATT GIAP PLANS RM140 MILLION PROJECT

Tatt Giap Group Bhd plans to develop a 12-acre light industrial project in Valdor Industrial Estate, Sungai Bakap, for RM140 million. Tatt Giap intends to develop 38 three-storey semi-detached factories and 2 three-storey detached corporate warehouse / office buildings. Tatt Giap is involved in the manufacturing and trading of steel products (stainless steel pipes and tubes) and the processing of stainless steel, ferrous products and non-ferrous metals.

(The Star, 04/06/2018)


 

AXIS-REIT BUYS INDUSTRIAL PROPERTIES IN JOHOR

Axis REIT Managers Bhd (ARMB), the manager of Axis Real Estate Investment Trust (Axis-REIT), is acquiring two industrial properties at i-Park @ Indahpura, in Iskandar Malaysia, Johor, for RM38.7 million. Axis-REIT’s trustee, RHB Trustees Bhd, has entered into a sale and purchase agreement with Axis AME IP Sdn Bhd, for the proposed acquisition of two freehold industrial properties situated within a gated and guarded industrial park. Both properties comprise a single-storey detached factory, a mezzanine office and ancillary buildings. The first property has a land area of 4.5 acres and is leased to Beyonics Precision Malaysia Sdn Bhd, a Singapore-based manufacturer and provider of precision engineering services. Beyonics is under a fixed 10-year lease until June 2027. The second property has a land area of 1.21 acres and is leased under a seven-year fixed lease with an option to renew for a further term of seven years, to Oerlikon Balzers Coating Malaysia Sdn Bhd, a physical vapour deposition coating manufacturer.

(The Sun, 08/06/2018)


 

UEM EDGENTA SECURES RM60.7 MILLION PAN BORNEO HIGHWAY JOB

UEM Edgenta Bhd, via wholly-owned Opus International (M) Bhd, has secured a RM60.7 million contract from Borneo Highway PDP Sdn Bhd. Under the four-year contract, UEM Edgenta will act as lead consultants in providing technical support services for pavement design optimisation for the Pan Borneo Highway project in Sabah. The pavement structure is a significant value component of the highway asset and will enhance the economic life of the highway.

(NST, 04/06/2018)


 

EKOVEST-SAMLING JV FOR RM2.1 BILLION PAN BORNEO HIGHWAY JOB IS NOW VOID

Ekovest Bhd’s joint venture agreement (JVA) with Samling Resources Sdn Bhd to jointly undertake the development and upgrading of the Pan Borneo Highway in the state of Sarawak is now void. It involved Phase 1 for work package contract WPC-02 (Semantan to the Sungai Moyan Bridge and KSR Interchanges) with a total contract value of RM2.1 billion. Ekovest‘s wholly-owned subsidiary, Ekovest Construction Sdn Bhd (ECSB), has received a letter from Samling Resources, indicating that Lebuhraya Borneo Utara Sdn Bhd (LBU), the project delivery partner for the project, did not consent for the project to be sub-contracted to Samling-Ekovest JV Sdn Bhd.

(The Edge, 06/06/2018)


 

CYMAO SELLS PARCELS OF SANDAKAN INDUSTRIAL LAND FOR RM12 MILLION

Cymao Holdings Bhd’s subsidiary, Cymao Plywood Sdn Bhd, has entered into a sale and purchase agreement with South Pacific Fish Processing Sdn Bhd for the disposal of two parcels of industrial land in Sandakan, Sabah, for RM12 million. The disposal will enable Cymao to unlock the value of land and attain additional funds for working capital requirements, resulting from the closure of one of its mills in Sandakan.

(The Sun, 05/06/2018)


 

FIC’S KUCHING HOTEL MAY BE SOLD AT A LOSS

A four-star hotel in Kuching, Sarawak, previously acquired by Felda Investment Corp Sdn Bhd (FIC) at an inflated price, may now have to be sold at a loss. The corporation started inviting bids for the 21-storey, Merdeka Palace Hotel and Suites (gross floor area of 457,623 sq. ft.) on Jalan Tun Abang Haji Openg, whereby a reserve price for the asset has yet to be set. The property was revealed to have been bought at an inflated price in 2014, according to documents seized by the Malaysian Anti-Corruption Commission (MACC) during the investigation of FIC’s investment in a London property.

(The Edge, 02/06/2018)


RICS

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Jones Lang Wootton