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BANK NEGARA MAINTAINS BENCHMARK INTEREST RATE AT 3.25%

Bank Negara Malaysia kept the Overnight Policy Rate (OPR) unchanged at 3.25%. The central bank denoted that the degree of monetary accommodativeness at the current OPR level is consistent with the intended policy stance, which accounts for monetary and financial conditions.

(The Sun, The Star & The Edge, 12/07/2018)


 

GOVERNMENT TO USE OPEN TENDER SYSTEM FOR PROJECTS

The government will extensively utilise the open tender system for government projects, particularly for large scale ones, in ensuring that public funds are lawfully spent. The government has been estimated to spend in excess of RM100 billion a year for procurement purposes via various contracts. With such a substantial amount, it is quintessential for the government to always ensure that this money is spent prudently in order to prevent wastage. The Pakatan Harapan government will improve the government’s procurement and tendering system in ensuring its competitiveness and to thereby generate the best value for public funds.

In line with the Construction Industry Transformation Programme (CITP), the government plans on utilising at least the Tier 2 Building Information Model (BIM) in 2019, for projects worth RM100 million and above. The Public Works Department (PWD) transformation initiatives seek to enhance the effectiveness of the delivery system of government projects via extensive BIM application in building projects. This will then become a platform towards attaining the Industrial Revolution 4.0 goals, through the development of Artificial Intelligence, Smart Total Asset Management and Smart Cities.

(The Edge, 07/07/2018)


 

DBKL TO REVEAL KL CITY PLAN 2020 NEXT WEEK

Subsequent to a 10-year delay, the outcome of the Kuala Lumpur City Plan 2020 will be known next week, as residents have been voicing their concerns over numerous unplanned developments within the 243 sq. km. capital. The KL City Hall (DBKL) will determine the feasibility of the plan prior to the verdict.

(The Edge & The Malaysian Reserve, 11/07/2018)


 

KTMB’S ETS TRAINS WITH BUSINESS COACHES TO ARRIVE IN SEPTEMBER 2018

By September 2018, Keretapi Tanah Melayu Bhd (KTMB) will be getting nine new train units, whereby business class coaches will be available in the Electric Train Service. The train units were expected to start operation by October 2018, but will now commence operations a month ahead of schedule. The business coaches will be available on all ETS routes, which include Gemas-Padang Besar, Kuala Lumpur-Butterworth, and Kuala Lumpur-Ipoh.

(NST, 11/07/2018)


 

OFFERS RECEIVED TO HALVE THE COST OF HSR

 

The Malaysian government has reportedly received offers to halve the cost of the high-speed rail (HSR) project. Construction works for the 350km line have been “postponed” in light of the national debt of RM1 trillion. If the price was brought down, revival of the project could be reconsidered, contingent on attaining agreement from Singapore with regards to any changes.

(The Star & The Edge, 12/07/2018)


SINGAPORE YET TO HEAR OFFICIALLY FROM PUTRAJAYA ON HSR

The Republic of Singapore is currently awaiting an official reply from Malaysia, with regards to the status of the reportedly “postponed” Kuala Lumpur-Singapore high-speed rail (HSR) project. On June 1, 2018, the city state requested from Putrajaya to clarify Malaysia’s position on the project. Singapore had to pay more than S$6 million (RM17.87 million) in June 2018 and is expected to incur an additional S$6 million in July 2018, whereby such costs will increase rapidly over time. From August to end-December 2018, Singapore may be required to spend at least S$40 million. As the costs that Singapore has incurred will add to the total amount of compensation, it is in Malaysia’s own interest to officially inform the Singapore government of its position on the HSR project earlier rather than later on.

(The Edge &The Sun, 10/07/2018)


 

MRL: ECRL CONSTRUCTION WORK HAS STOPPED

Malaysia Rail Link Sdn Bhd (MRL), project owner of the RM81 billion East Coast Rail Link (ECRL), has clarified that its contractors were working as of July 8, 2018, to secure their sites in compliance with its suspension order. The company was refuting news reports suggesting that construction work was ongoing despite the government’s order on July 3, 2018, to halt all engineering, procurement, construction and commissioning (EPCC) works at the 688km railway project. The suspension order was issued to the ECRL project’s EPCC contractor, China Communications Construction Co Ltd (CCCC) and China Communications Construction Co (M) Sdn Bhd (CCCCM).

(The Star & The Edge Financial, 10/07/2018)


 

PRASARANA MULLS TAKING OVER LRT3

 

Prasarana Malaysia Bhd is considering taking over the construction of the Light Rapid Transit line 3 (LRT 3) from its project delivery partner (PDP) to curb its spiralling cost. The government is reviewing the project as costs have ballooned from the initial estimate of RM9 billion in 2015, to more than RM15 billion worth of construction jobs which include a RM1.1 billion underground package awarded to IJM Corp Bhd in March 2018. Launched in 2015, the 37km extension line from Bandar Utama to Klang (via Shah Alam) was projected to cost RM10 billion, including RM1 billion set aside for land acquisitions. Reducing the size of the project would assist in diminishing cost and options such as reverting to the “turnkey model” is being considered in order to complete the project. In 2015, Prasarana appointed Malaysian Resources Corp Bhd (MRCB) and George Kent (M) Bhd as the PDP for the LRT 3 project at an approved construction budget of RM9 billion. Prasarana, which is a government-owned company, has the approval to raise up to RM10 billion in debts to pay for the project. Under the circumstance that the budget is surpassed, Prasarana would have to seek fresh Cabinet approval for additional funds.

(The Star & The Edge, 09/07/2018)


 

FINANCE MINISTRY CALLS OUT PRASARANA ON LRT3

The Finance Ministry will not support additional funding for the 37km Light Rail Transit Line 3 (LRT3) unless Prasarana Malaysia Bhd cuts the cost of the project, which is forecasted to soar. The cost of the LRT3 was meant to be capped at RM9 billion, however, on March 30, 2018, Prasarana requested for a government guarantee costing an additional RM22 billion to guarantee funding for the construction and completion of LRT3. This was on top of a RM10 billion bond facility guaranteed by the government in 2015.

(The Sun, NST, The Edge & The Star, 11/07/2018)


 

 

LRT3 PROJECT TO PROCEED WITH 47% REDUCTION

 

The Cabinet has approved the continuation of the Light Rail Transit 3 (LRT3) project at a final cost of RM16.63 billion, which is 47% lower than the RM31.65 billion projected by Prasarana Malaysia Berhad. The RM15.02 billion savings will be achieved through several key steps that include: shelving the construction of five stations (Lien Hoe, Temasya, SIRIM, Bukit Raja and Bandar Botanic), which have very low projected passenger ridership, until demand deems it necessary for them to be built; reducing the order of 42 sets of six-car trains to 22 sets of three-car trains as a feasibility study shows that the reduction will be more than sufficient to cope with anticipated passenger demand until 2035; reducing the size of the LRT train depot to be constructed due to the significantly reduced number of trains to be acquired; streamlining the size and design of the stations based on Kelana Jaya LRT line standards instead of being benchmarked against the much larger MRT stations; cancelling an unnecessary 2km tunnel for the LRT and an underground station in Persiaran Hishamuddin, Shah Alam, and extending the completion time for the project from 2020 to 2024 to reduce construction costs which were inflated due to “acceleration costs” (additional costs incurred to speed up the project).

(The Sun, The Star, NST & The Edge, 13/07/2018)


 

CCCC-GEORGE KENT JV FACING MRT2 “ISSUES”

The collaboration between China Communications Construction Co Ltd (CCCC) and its joint-venture (JV) partner George Kent (M) Bhd is understood to be “fraying at the seams” due to issues surrounding the RM1 billion systems work package for the Sungai Buloh-Serdang-Putrajaya mass rapid transit line (MRT2). The two companies attained the work package in August 2016, in which CCCC and George Kent own the joint venture called CCCC-George Kent JV, on a 51:49 basis. The RM32 billion MRT2 is 52.2km long, with 38.7km being elevated, 13.5km below ground and would include 35 stations. Up to 25% of MRT2 had been completed as of April 2018. The first phase from Sungai Buloh to Batu Kentonmen is scheduled to commence operations in 3Q21.

(The Edge, 07/07/2018)


MALAYSIAN AIRPORTS SEE 9.7% SPIKE IN PASSENGER TRAFFIC IN JUNE 2018

In June 2018, Malaysia Airports Holdings Bhd (MAHB) experienced a 9.7% surge in passengers passing through the 39 airports it manages in the country at 8.38 million, from 7.64 million a year ago. This is the highest growth registered for a month in 2018. In June 2018, International and domestic passenger traffic grew by 8.3% and 11.1% to 4.21 million and 4.17 million respectively, from 3.88 million and 3.76 million respectively in June 2017. Overall aircraft movements also increased by 4.1% year-on-year (y-o-y), with international movements expanding by 5.9%, whereas domestic movements rose 3% since June 2017. Average load factor increased by 1.2 percentage points to 75.9% in June 2018 over June 2017. The Kuala Lumpur International Airport (KLIA) in Sepang handled 4.98 million passengers in June 2018, up 9.7% from 4.54 million passengers recorded a year ago. Out of this, passenger traffic at the KLIA Main Terminal rose 6.7% y-o-y from 2.18 million to 2.33 million, whereas klia2 recorded a 12.5% increase in traffic from 2.36 million in June 2017 to 2.65 million in June 2018. 

(The Edge Financial & NST, 11/07/2018)


  

MRT SG BULOH LINE ALMOST “30% DONE”

Mass Rapid Transit Corp Sdn Bhd (MRT Corp) has established that the MRT Sungai Buloh-Serdang-Putrajaya (SSP) line was close to a 30% completion as of early July and is on schedule to move onto its next phase of construction. Spanning along Jalan Kuala Selangor, commencement of track laying works on the main line will commence by December 2018. Bored piling works, pile caps and pier head works are also taking place along the southern and Putrajaya sections, with certain locations such as Equine Park and Cyberjaya already gearing up for segmental box girder launches by the end of July 2018. The underground section of the MRT SSP line was progressing well, with 33.3% of works completed. Phase one of the line is set to be launched by July 2021 and the entire line will be fully operational by July 2022.

(The Star & The Edge, 12/07/2018)


 

AIRBUS KEEN TO SET UP AVIATION HUB IN NEGRI

One of the world’s leading aircraft manufacturers, Airbus, is keen on plans by the Negri Sembilan government to set up a 7,907 acre aviation hub in Labu. This is seen as a reasonable move as AirAsia was one of Airbus’ biggest customers. Apart from serving as a finishing and assembly facility, the hub will also be a maintenance, repair and overhaul centre for AirAsia.

(The Star, 12/07/2018)


 

LAFARGE MALAYSIA’S RM270 MILLION CEMENT CONTRACT FOR ECRL SUSPENDED

Lafarge Malaysia Bhd’s RM270 million contract for the supply of cement for the East Coast Rail Link (ECRL) has been suspended following the suspension of the project itself. Lafarge received a letter from China Communications Construction (ECRL) Sdn Bhd on the suspension of the company’s supplies with immediate effect until further notice.

(The Sun, NST & The Sun, 13/07/2018)


 

GOVT TO STUDY FEASIBILITY OF RM200 BILLION CAREY ISLAND PORT PROJECT

The new government will conduct a study to determine the feasibility of the proposed RM200 billion Carey Island port project. The Port Klang Authority will be asked to commission the study on the necessity for another port near Northport and Westport in Port Klang. The concession will be given to the private sector but the feasibility studies will be driven by the government. The proposal to build a gargantuan port on Carey Island with an annual throughput capacity of 30 million containers, is understood to be made concurrently with a maritime city on the island comprising industrial parks, free trade zones, commercial and residential buildings.

(The Edge, 13/07/2018)


 

CONSTRUCTION OF MELAKA INTERNATIONAL CRUISE JETTY “HITS A SNAG”

The construction of the Melaka International Cruise Jetty, part of the Melaka Gateway project, has not started and all approvals related to the project have lapsed. The RM40 billion Melaka Gateway, near Pulau Melaka, is being developed by KAJ Development Sdn Bhd and is the largest man-made island project in Southeast Asia. Among optimistic planned facilities at the Melaka International Cruise Jetty are a marina for yachts, luxury condominiums, bungalows with private marina, tourist eco-parks, theme parks and ports for cruise ships. 

(NST & The Edge, 13/07/2018)


 

ECONPILE SECURES RM122 MILLION CONTRACT

Piling specialist, Econpile Holdings Bhd, has secured a bored piling contract worth RM122 million for Phase 2 of Pavilion Damansara Heights. The project was awarded by Jendela Mayang Sdn Bhd to Econpile Holdings Bhd’s subsidiary, Econpile (M) Sdn Bhd. The latest contract for the mixed development came directly after its earlier contract wins valued at RM18 million for contiguous bored piling for Phase 2 in September 2017, and the RM570.1 million contract for bored piling and substructure for Phase 1 in February 2017. The overall duration of the contract is targeted to be 13 months.

(The Star, The Sun & NST, 10/07/2018)


 

ATTA GLOBAL UNIT BUYS TWO PROPERTY DEVELOPERS FOR RM7.5 MILLION

Atta Global Group Bhd’s wholly owned subsidiary, Atta Properties Sdn Bhd (APSB), entered into share sale agreements with vendors for the acquisition of two property developers for RM7.5 million. The proposed acquisition involves the purchase of the entire stake in Eminent Potential Sdn Bhd for RM4 million cash and Scanrite Sdn Bhd for RM2 million cash.

(The Sun, 12/07/2018)


 

ALIBABA TO CONTINUE INVESTING IN MALAYSIA

Chinese tech giant, Alibaba Group, will not slow its investment plans in Malaysia, according to its chief representative in Malaysia. On July 6, 2018, Alibaba launched a week-long “Malaysia Week” campaign in Hangzhou, the capital of China’s Zhejiang province, which featured Malaysian products and tourism services on alibaba.com, Tmall and Alitrip. It was previously reported that Alibaba Group has invested US$100 million (RM400 million) on its various initiatives in Malaysia, following the announcement to establish the Digital Free Trade Zone with the Malaysian Government. Alibaba is committed in assisting small businesses sell their products to more markets and has already opened a data centre in Malaysia back in October 2017. It has also signed an agreement with the Kuala Lumpur City Hall for the use of cloud services in implementing the “City Brain” initiative, aimed at easing KL’s traffic congestion. 

(The Star & NST, 09/07/2018)


 

RIMBAYU TOWNSHIP TO ALSO OFFER AFFORDABLE HOMES

The Bandar Rimbayu Township by IJM Land Bhd is surrounded by lush greenery incorporating residential, commercial, recreational and parkland components. In support of the government’s aspirations of creating more affordable homes for Malaysians, Bandar Rimbayu has introduced its Halaman 11 project for lower-income communities comprising two types of homes, each with three bedrooms and two bathrooms. A commercial area with more than 40 shop lots has been built in Bandar Rimbayu, as well as an American-based education institution, the Oasis International School, offering a range of curricular and co-curricular modules. The school will be ready for its first intake registration from August 1, 2018.

(The Star, 07/07/2018)


 

 FT MINISTER TO DECIDE FATE OF FIELD

The site of a high-rise residential project on a former football field in Bandar Tun Razak, Kuala Lumpur, has been sealed by Kuala Lumpur City Hall (DBKL). A stop-work order for the project, which has received much protest from residents since 2017, was also issued on July 10, 2018. The 5.16 acre land in Jalan Jujur was formerly a football field which was used by residents for various recreational activities. However, it was sold to a developer for the construction of a condominium in 2017. The high-rise project on the site comprised four blocks, two of which were allocated for low-cost flats. The 40-storey blocks will comprise 1,814 units, whereby the population density will increase from 60 to 1,400 per 0.98 acres.

(The Star, 09/07/2018)


 

MAYOR: CONDOMINIUM PROJECT ON FOOTBALL FIELD WILL GO ON

The Mayor of Kuala Lumpur has revealed that the disputed high-rise residential project on a former football field in Bandar Tun Razak, Kuala Lumpur, will proceed as scheduled as the city is unable to compensate millions of ringgit to the developer. It was unfeasible to terminate the project as construction is already in its advanced stages.

(The Star, 11/07/2018)


 

KUMPULAN JETSON’S UNIT SECURES RM88.03 MILLION CONTRACT

Kumpulan Jetson Bhd (Jetson) has secured a contract worth RM88.03 million, including a contingency sum of RM4 million, to undertake and complete the main building and external works for serviced apartments located on Jalan Yap Kwan Seng, Kuala Lumpur. Jetson’s wholly owned subsidiary, Jetson Construction Bhd, has received a letter of award from Ken Wong Architect on behalf of O&C Makok Isola Sdn Bhd. The 32-month project will involve the works for four blocks of serviced apartments totalling 140 units.

(The Sun, The Star & The Edge, 13/07/2018)


 

NO REPORT ABOUT RUMAWIP BEING TERMINATED

The Ministry of Housing and Local Government (KPKT) has not received any report regarding the halting of the construction of Federal Territory Houses (Rumawip). The KPKT minister will meet with buyers of these homes in order to obtain additional details on Rumawip complaints. Recent speculation has risen, with regards to the termination of affordable housing projects for the lower-income and middle-income groups residing / working in the Federal Territory.

(The Edge & NST, 09/07/2018)


 

WORK AT “THE ADDRESS” TO BE HALTED BY THIS WEEK

According to the Protect Taman Desa Coalition (PTDC), construction of “The Address” in Taman Desa is expected to be temporarily suspended till after a judicial review on August 28, 2018. Though grounds for the suspension order are not specifically known as of yet, the decision taken by DBKL is a positive step towards achieving full transparency, accountability and in accordance with the Rule of Law. “The Address” sits on a freehold plot located at Jalan Desa Bakti 2, Taman Desa, which is in close proximity to Tiara Faber Condominium’s entrance. Developed by Kaisar Maxim Sdn Bhd, a subsidiary of Maxim Group, “The Address” comprises three towers of more than 30 storeys, which are being developed on a 132-ft-wide parcel which was originally earmarked as a “Tenaga Nasional Bhd reserve”.

(The Edge, 07/07/2018)


 

 

 KUB UNIT SELLS ENTIRE STAKE IN A&W MALAYSIA FOR RM34 MILLION

Two years since the commencement of sale discussions for the A&W Malaysia Sdn Bhd chain of fast food restaurants, KUB Malaysia Bhd has now found a buyer which will take up the entire interest in A&W Malaysia for a total consideration of RM34 million. KUB via its wholly owned subsidiary, Restoran Kualiti Sdn Bhd, had entered into a sale and purchase agreement with Inter Mark Resources Sdn Bhd for RM34 million, which comprises RM30 million for A&W Malaysia’s entire equity interest and RM4 million for reimbursement of intercompany balances.

(The Star, The Sun & NST, 07/07/2018)


GOLDEN SCREEN CINEMAS ALLOCATES RM300 MILLION CAPEX FOR EXPANSION

In 2018, Golden Screen Cinemas Sdn Bhd’s owner, PPB Group Bhd, will be spending an additional RM300 million in capital expenditures to finance its cinema expansions and upgrades in Malaysia, Vietnam and Cambodia. In 2017, the group opened three cinemas and will be opening two new cinemas in 2018, with nine cinemas to be opened in the next two to three years. As for 2018, the group is focused on renovating flagship cinemas such as One Utama, The Gardens and IOI Puchong. In 2018, the group hopes to open nine screens within the new cinema in Phnom Penh, Cambodia, whereas for Vietnam, the company is eyeing to open five cinemas totalling 26 screens.

(NST, 11/07/2018)


 

CANADA PENSION PLAN IN TALKS TO BUY STAKE IN PAVILION BUKIT JALIL

The Canada Pension Plan Investment Board (CPPIB) is negotiating with Malton Bhd regarding the purchase of a 49% stake in the Pavilion Bukit Jalil mall. The mall is located in southern Kuala Lumpur and is set to open its doors in 3Q20, with a net lettable area (NLA) of 1.8 million sq. ft., and a GDV of between RM1.4 billion and RM1.6 billion. Overall, the Bukit Jalil City project has a GDV of RM4 billion and is being developed by Pioneer Haven Sdn Bhd.

(The Edge, 07/07/2018)


 

WCT SECURES RM555 MILLION TRX LIFESTYLE QUARTER JOB

WCT Holdings Bhd’s (WCT) subsidiary, WCT Bhd, has secured a two-year contract worth RM555 million from Lendlease Projects (M) Sdn Bhd to undertake the final construction works of the retail component of TRX Lifestyle Quarter. TRX Lifestyle Quarter is being developed by Lendlease through a joint venture with TRX City Sdn Bhd, a wholly owned subsidiary of the Minister of Finance Inc. It will be a central part of the overall TRX new financial district master plan, which includes lifestyle retail, food & beverage offerings, hospitality, leisure facilities, condominiums and a 10-acre city park.

(The Sun, The Star & The Edge, 13/07/2018)


 

SELANGOR IDENTIFIES PORT KLANG AS IDEAL LOCATION FOR NEXT DFTZ

The Selangor state government has identified Port Klang as an ideal location for the next Digital Free Trade Zone (DFTZ), which could further augment the ranking of this second largest container port in the Asean region. The DFTZ would boost Port Klang’s ranking in becoming the 10th largest container port in the world from the current 12th position, as it would provide local small and medium enterprises (SMEs) the opportunity to globally export their products via e-commerce.

(The Sun, The Edge Financial & NST, 11/07/2018)


 

HERITAGE PROJECT TELLS MELAKA‘S STORY

Sitting on 4.9 acres of land, “The Riviera Melaka” features 384 waterfront serviced suites, which are fully sold, 100 retail units and two boutique hotels. The Riviera Melaka is a joint venture between property development group, First Avenue Partners (Asia) Sdn Bhd (specialists in heritage lifestyle concepts) and Singgahsana Emas Sdn Bhd (a wholly-owned subsidiary of Yayasan Dunia Melayu Dunia Islam). Built in 2015 and completed in March 2018, the Renaissance-inspired architecture will take tourists through its traditionally and artfully handcrafted facade with ornaments and motifs. The first hotel is called Riviera Suites with 178 rooms and is decorated with antique pieces from Old Malaya. The second boutique hotel will commence operations by 3Q18.

(The Star, 09/07/2018)


 

SENTORIA PAYS RM20.25 MILLION FOR 150 ACRE SITE IN MORIB

Sentoria Group Bhd is acquiring a 150-acre piece of land in Morib, Selangor, for RM20.25 million. Sentoria’s wholly owned subsidiary, Sentoria Morib Bay Sdn Bhd, entered into a sale and purchase agreement with Seriemas Development Sdn Bhd for the acquisition of land for the development of a water theme park, convention centre, safari and boutique hotel.

(The Sun, The Star & The Edge, 12/07/2018)


 

PROJECT’S NEW RESIDENTIAL TOWER A POPULAR CHOICE

HCK Group launched the third residential tower of its Edusentral development in Setia Alam. The Imperial tower offers 307 units across 26 storeys and is one of the three residential towers of the development’s third phase, which comprises the “yet to be launched” Cornell and Princeton towers. With built-up areas of 502 sq. ft., 728 sq. ft. and 836 sq. ft., the units offer studio and dual key layouts, whereby studio units at the Imperial come with a fully-fitted pantry and dual-key units will be equipped with a fully-fitted kitchen. Both types come with air-conditioners in the living space and bedrooms. With units priced from RM307,000 and an overall gross development of RM1.8 billion, Edusentral spans across 12.1 acres of freehold land. The integrated development consists of the Peninsular International School Australia (Pisa), six towers of residential suites, five commercial blocks, and 44 retail units in four- and five-storey commercial blocks.

(The Star, 12/07/2018)


 

CONCORDE HOTEL, KUALA LUMPUR REDEVELOPMENT PLANS PUT ON HOLD

An earlier proposal to demolish and redevelop the long-established Concorde Hotel Kuala Lumpur (Concorde KL) has been put on hold. Instead, shareholders will invest in sprucing up the hotel as the board has decided not to proceed with the redevelopment until such a time when the market is more favourable. Sitting on a 4.2-acre site, Concorde KL is owned by Ampang Hotel Sdn Bhd, which in turn is owned by Ampang Investment Pte Ltd.

Two years ago, Ampang Hotel submitted plans to demolish the hotel and the multi-storey car park next to it. In its place, the owners had proposed to construct a 39-storey tower with 240 office suites, a 54-storey hotel block with 530 rooms and 205 serviced apartment units. The redevelopment plan also proposed to accommodate two 41-storey towers housing 266 serviced apartments and a 10-storey annex podium housing the lobby, retail space and car park. Industry experts, who had called the exercise as “unlocking land value”, had estimated that the gross development value of the project would amount to RM2.5 billion.

(The Edge Financial, 09/07/2018)


 

DEVELOPERS CAUTIOUS IN LAUNCHING PROJECTS

Malaysian property developers are currently being cautious in launching new projects due to challenging market conditions. To date, two property firms, Mah Sing Group Bhd and TA Global Bhd, have stated that they will defer their launches up until 2019. Mah Sing’s new projects will be launched across three property hotspots including the Klang Valley, Johor and Penang, which will comprise commercial and industrial properties, landed homes and high-rise condominiums. TA Global’s projects that are planned for launching in 2019 include TA 3 and 4 in the Kuala Lumpur City Centre, Annexe, which is a Damansara Avenue mixed development in Bandar Sri Damansara and the Dutamas residential development. In 4Q18, IJM Land plans to launch Phase 11 (Swans) of Bandar Rimbayu, which comprises 195 double storey link-houses, whereas Trinity Group Sdn Bhd plans on launching 330 condominium units in Mont Kiara, Kuala Lumpur, by 3Q18, despite the oversupply contagion for high-end properties. The Trinity Pentamont project has a built-up size from 2,057 sq. ft. onwards and is expected to be completed in 2022.

(The Malaysian Reserve, 09/07/2018)


 

1Q18 RECORDED RM35,173 MILLION WORTH OF PROPERTY TRANSACTIONS

Accordingly to the National Property Information Centre (NAPIC), the overall property market activity in 1Q18 reported a healthy volume of transactions at 79,504, with a total value of RM35,173 million. The number of transactions was 51.71% of the total volume of transactions in 1H17, which was recorded at 153,729. From the report, 61.1% of total volume was contributed by the residential sector, followed by agricultural land at 24.1%. The percentage share of transaction value was dominated by the residential segment, which represented 46.9% of the total amount. The commercial sector merely comprised 7% of total transaction volume and came second in its share, taking up 25.1% of the total value of transactions. Selangor, Johor, and Perak emerged as the top three states with the highest number of transactions in 1Q18. Selangor recorded 15,312 transactions worth RM9,513 million, whereas Johor came second with a volume of 10,058, valued at RM4,339 million and Perak recorded 9,290 transactions worth RM2,115 million in value.

(Starproperty.com.my, 11/07/2018)


 

POTENTIALLY LIFTING THE BAN ON RM1 MILLION PROPERTY

The government has denoted that “the improving economy and signs that buyers are returning to the property sector”, signals that the moratorium on luxury property developments may be lifted. The moratorium (since November 2017) on developments of homes above RM1 million was imposed eight months ago under the previous administration to curb an increasing oversupply of luxury properties. The ban was made following a Bank Negara Malaysia report in June 2017, which exhibited that the country was facing a property glut. Developers have been requesting the government to lift the ban, especially for “expensive cities” like Kuala Lumpur, Selangor, Penang and Johor, where many RM1 million units are built.

The central bank has agreed to improvise its current housing lending guidelines to assist more Malaysians to own houses. BNM’s strict housing loan guidelines have been one of the factors that contributed to the housing glut as many buyers found their housing loan applications rejected. BNM is fine-tuning the new guidelines for lenders to approve housing loans, especially for first-time buyers. The new guidelines will be comprehensive, including incorporating a larger role for developers and institutions such as the Employees Provident Fund (EPF). The guidelines will also reduce the number of unsold Bumiputera residential units, which is a key concern for many property developers.

(The Malaysian Reserve, 11/07/2018)


 

JB-SINGAPORE LINK PROJECT MISSES DEADLINE

 

Prasarana Malaysia Bhd and Singapore’s SMRT Corp Ltd have missed the deadline to create a joint-venture company in order to operate the Johor Bahru-Singapore Rapid Transit System (RTS) Link. The joint-venture company was not set up by the June 30, 2018 deadline as Prasarana Malaysia suspended negotiations with SMRT after Malaysia’s general election in May 2018. This means that both countries should now proceed to call for an open, international tender to appoint the RTS Link operator, unless both countries mutually agree on a postponement of the deadline. Prasarana Malaysia and SMRT signed a memorandum of understanding in September 2017 to form a joint-venture company to design, build, finance, operate, maintain and renew operating assets of the RTS Link, which includes trains, tracks and systems.

(The Edge, 10/07/2018)


 

SCIENTEX COMPLETES ACQUISITION OF PULAI LAND

Scientex Bhd assures that all conditions precedent in the RM284 million purchase of the 335 acre land in Pulai, Johor, have been satisfied in accordance with the terms and conditions of its agreement. Payment of the residual purchase price has been made to the vendor on July 10, 2018, hence marking the completion of the proposed acquisition. Back in December 2017, Scientex announced that it was purchasing the land for the development of a township.

(The Star, 11/07/2018)


 

BUYERS OF JOHOR PRIVATE LEASE SCHEME PROJECT SUE DEVELOPER

Buyers of a property development on a private lease scheme in Medini Iskandar, Johor, are taking the developer to court over its failure to issue them with individual strata titles for their units. Overall, 107 buyers of The Meridin@Medini are claiming for inter alia damages for misrepresentation and late delivery from Tropika Istimewa Development Sdn Bhd, a subsidiary of Mah Sing Group Bhd. The trial is set for September 13, 2018. The Meridin spans across freehold land owned by Iskandar Investment Bhd (IIB), which it had leased to Medini Land Sdn Bhd for 99 years commencing April 15, 2013. In a lease purchase agreement dated October 18, 2012, Medini Land had agreed to sell the lease to Tropika Istimewa, and upon completion of the lease purchase agreement, IIB granted absolute rights to Tropika Istimewa for the development of residential properties on the land and to sell the lease of the condominium parcel to the public.

(The Edge, 11/07/2018)


 

KSL EYES RM7 MILLION SALES FROM NEW HOTEL IN JB

In 2018, KSL Hotel and Resort targets “RM7 million in sales” from its new branch, KSL Hot Spring Resort @ Daya, which has commenced full operations. The new branch is the first hotel in Malaysia to offer hot spring facilities, whereby the hot water is sourced from a hot spring in Jasin, Melaka, and is treated to maintain its natural mineral content. Construction of the 20-storey hotel began in 2016 and was fully completed in June 2018 on a 5.93 acre site, whereby its 308 rooms include superior, deluxe, premier and executive suites.

(The Star, 09/07/2018)


 

 

RM6.3 BILLION PENANG PROJECT TO START SOON WITH UNDERSEA TUNNEL

Consortium Zenith Construction Sdn Bhd (CZC), the contractor of Penang’s RM6.3 billion integrated infrastructure project, is confident that the project will continue with its original plan of an undersea tunnel to connect Penang Island with the mainland, instead of a bridge that has been proposed as an alternative, with construction of part of the three roads under the project to start by the middle of 2019. CZC, a special-purpose vehicle that is 13.21%-owned by Vertice Bhd, secured the traffic alleviation project on Penang Island after winning an open tender organised by the Penang state government. CZC completed 96% of the feasibility studies on the 7.2km undersea tunnel before it halted work. The studies are now expected to be completed by September 2018. The tunnel will be built by China Railway Construction Co Ltd, which is CZC’s engineering, procurement, commissioning and construction contractor due to its expertise in underground construction.

The tunnel is expected to be built in 2023. The road components under the integrated infrastructure project include the 10.5km paired-road from Tanjung Bungah to Teluk Bahang (Package 1), the 5.7km bypass between the Tun Dr Lim Chong Eu Expressway and Bandar Baru Air Itam (Package 2), and the 4.1km bypass from Gurney Drive and the Tun Dr Lim Chong Eu Expressway (Package 3). The starting dates of these road works were deferred several times and the group hopes to start Package 2 by the middle of 2019.

(The Edge Financial, 09/07/2018)


 

DEVELOPERS OF TWO MORE PROJECTS APPLY FOR RENT-TO-OWN SCHEME

Developers of two more projects in Penang are applying to be able to sell their units via the rent-to-own scheme. The completed projects on Penang’s mainland are 301 units in Mak Mandin and Tok Suboh.

(The Edge, 13/07/2018)


 

ALL RTO-SCHEME UNITS IN RAMAH PAVILION SOLD IN LESS THAN TWO MONTHS

All 50 units of Ramah Pavilion condominium in Teluk Kembar, Penang Island, under the developer’s rent-to-own (RTO) scheme were sold within two months after the scheme was introduced in mid-April 2018. Developed by M Summit Group, Ramah Pavilion comprises two blocks of 39 and 36-storey’s that totals to 759 condominium units, with built-ups ranging between 800 sq. ft. and 1,350 sq. ft. Prices of the units started from RM458,000. Besides the condominium units, Ramah Pavilion also comprises 15 retail units at the ground floor, which will offer amenities to the residents. Confirmed tenants include a bakery, convenience store, Laundromat and a day care centre. The retail units will be handed over in August 2018 and the shops will start operations in October 2018 after renovation. Under the RTO scheme, the monthly rental collected over the five years will be treated as 20% of the unit’s price. Before the rental tenure expires, the “tenant” has the option of signing a Sales and Purchase Agreement to buy the unit at the present purchase price.

(The Edge, 10/07/2018)


 

 

SABAH GOVT TO ABOLISH COMMUNAL LAND TITLES

The communal titles issued to natives in Sabah by the previous Barisan Nasional government will be revoked. The technical and legal aspects of the communal titles are being studied as state authorities move to abolish the titles, which was part of Warisan’s GE14 manifesto.

(The Star, 09/07/2018)


 

WORKS MINISTER TO PRIORITISE PAN BORNEO HIGHWAY PROJECT

Main contractors and sub-contractors appointed for phase one of the Pan Borneo Highway project have been reminded to carry on with the project without breaching any terms of their contract. The project was the main concern of the people in Sarawak and the Malaysian Minister of Works has assured that all packages and contracts that had been signed will continue. As for phase two, the procedure to determine if there are any aspects that can be further improved to expedite the project, will be reviewed.

(NST, 09/07/2018)


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Jones Lang Wootton