GROWTH FORECAST REVISED DOWN TO 5%
Bank Negara Malaysia has revised the economic growth forecast to 5% for 2018 from the previous target of between 5.5% and 6%, mainly due to external factors and the cancellation of mega projects. The economy was expected to remain on a steady growth pattern, continuing to be one of the fastest growing economies in the region, supported by strong business and consumer sentiments, strong consumer spending due to the tax holiday from June to end August 2018 and expansion of manufacturing production capacity.
MALAYSIAN ECONOMY TO CONTINUE TO EXPAND AT SLOWER PACE IN 4Q18
According to the Department of Statistics Malaysia, the local economy will continue expanding at a subdued pace between October to December 2018. The Leading Index (LI), which monitors economic performance on an average of four to six months ahead of time, experienced an annual change of 0.3% in June 2018, compared with -0.7% in May 2018. On a monthly basis, the LI recorded an increase of 0.5% from 117.8 points in May 2018, to 118.4 points in June 2018. Meanwhile, the Coincident Index (CI), which examines current economic activity levels, increased to 1.2% in June 2018 due to the increase in volume index of retail trade (0.9%) and real contributions to EPF (0.2%). Annual change of the CI also improved 3.1% in the reference month. The diffusion index for LI reached 42.9%, which was a substantial improvement from 14.3% recorded in the previous month. The diffusion index for the CI has remained at 66.7% since January 2018.
(The Sun & NST, 21/08/2018)
ALIBABA TECHS CAN BOOST MARKETING OF LOCAL FIRMS
Chinese tech giant, Alibaba Group Holding Ltd’s technology could elevate the marketing abilities of Malaysian companies. The Malaysian government is keen on implementing the Chinese firms’ technology in the country. Malaysian businesses have yet to cover the global markets despite online ventures, as the right technologies are required to push product sales. The tech giant offers to provide support and platforms to assist businesses in driving exports, and to offer extensive training programmes to help businesses in the utilisation of digital innovations and trade opportunities. Alibaba has commenced construction of a smart e-fulfilment hub in the Kuala Lumpur Airport Free Trade Zone, in addition to collaborative efforts with Malaysia Digital Economy Corp in the Malaysia City Brain Initiative, to generate a smart city powered by artificial intelligence and big data.
(The Malaysian Reserve, 18/08/2018)
GOVT REVISES SST TARGET TO RM22 BILLION
The government has revised its annual target for the Sales and Services Tax (SST) collection from RM21 billion to RM22 billion. The additional collection of RM1 billion would be generated from new sectors that are part of the new tax regime. These new sectors include: gambling activities, airline and charter flight services (domestic helicopter services) that excludes those in Sabah and Sarawak, and information technology services and domestic electric supply involving a monthly usage in excess of 600 units.
DEWAN NEGARA PASSES FIVE BILLS RELATED TO SST
Dewan Negara has passed five bills related to the implementation of the Sales and Service Tax (SST), which is set to take effect on September 1, 2018. These include the Sales Tax Bill 2018, Service Tax Bill 2018, Goods and Services Tax (Repeal) Bill 2018, Customs (Amendment) Bill 2018 and Free Zones (Amendment) Bill 2018. The Sales Tax Bill 2018 was the first Bill passed after a second reading and was approved without amendments, subsequent to a majority vote.
(The Star & NST, 21/08/2018)
OVER 77,000 TRADERS REGISTERED UNDER SST
More than 77,000 traders have been registered under the Sales and Service Tax (SST) that will come into effect on September 1, 2018. The registration was done via an automatic transfer from the Goods and Services Tax (GST) system to the SST, whereby traders had been notified via email. Of the 77,000 traders, 32,577 were registered for the sales tax and 44,874 for the service tax, which indicates that compliance costs will decline as it is not necessary for most traders to register under the SST, as only manufacturers of certain goods and providers of crtain services are subject to this. Since the commencement of online registration on August 16, 2018, there have been 470 new registrations.
(The Sun & The Star, 24/08/2018)
JULY INFLATION EXPECTED TO BE CUSHIONED BY ZERO-RATED GST
RAM Ratings expects the zero-rated goods and services tax (GST) to act as a cushion that limits inflationary pressure on Malaysia’s July inflation rate, which is projected to increase to 1%, from 0.8% in June 2018, whereas full-year inflation is expected to stand at 1.3 %. Transport fuel is seen as a trigger to higher inflation given the 12.4% rise in the average price of RON95 petrol in July (June: 9.9%), amid low-base effects. Prices had averaged RM1.96 per litre in July 2017 compared with RM2.00 per litre in June 2017, against the current level of RM2.20 per litre.
(The Sun, 24/08/2018)
MANUFACTURING SECTOR POSITIVE IN 2H18, BUT CAUTION REMAINS
Malaysia’s manufacturing sector was subdued in 1H18 due to the moderation of production volume and capacity utilisation in line with lower sales. However, the 2H18 outlook is positive, but amid caution, as the balance of risks in the global economy is “tilting towards the downside”. According to the Federation of Malaysian Manufacturers-Malaysian Institute of Economic Research (FMM-MIER) Business Conditions Survey, expectations are looking up for business conditions, sales, production volume and cost, and capacity utilisation. The business activity index rose to 124 for 2H18, compared with 97 in 1H18, whereby the 1H18 index was a declination from 115 in 2H17 and 101 in 1H17. The manufacturing sector is cautiously bracing for better times stemming from expectations of more certainty on policy directions from the new government, which will unfold for the prospects of both businesses and the economy.
(The Sun, 24/08/2018)
SP SETIA LAUNCHES ECOHILL 2 LINK
SP Setia Bhd has officially launched its 5.2km, dual two-lane EcoHill 2 link, which connects Jalan Semenyih in Selangor to the Kajang-Seremban Expressway (Lekas). The new link will reduce travel time from 30 minutes to a mere 10 minutes between Beranang on the Selangor-Negeri Sembilan border and the Lekas Semenyih Interchange.
(The Star, 20/08/2018)
PERAK TO REVIEW MAJOR BN-APPROVED PROJECTS
The Menteri Besar of Perak denoted that several major projects in Perak approved by the previous Barisan Nasional federal government will be subject to review. The overall cost of these projects, including in Bagan Datuk, had exceeded RM6 billion, whereby payment made by the previous government for the Bagan Datuk Water City project did not tally with its progress. In totality, projects in the state that had exceeded a 20% progress are likely to be allowed to continue.
(The Sun & The Edge Financial, 24/08/2018)
GADANG SECURES RM86.09 MILLION TRX JOB FROM TRX CITY
Gadang Holdings Bhd has secured an RM86.09 million contract from TRX City Sdn Bhd, a company owned by the Ministry of Finance and the master developer of the RM40 billion Tun Razak Exchange (TRX) development, to undertake public realm infrastructure works (Phase 1) at the TRX. The tender for the contract was called for in January 2018, following a pre-qualification exercise in October 2017. Gadang’s wholly owned subsidiary, Gadang Engineering (M) Sdn Bhd, has received and accepted a letter of award from TRX City for the proposed project, which will commence on September 1, 2018, with completion by 3Q19. The contract covers structural works, hardscape and softscape for the North-West Plaza, which is TRXs’ pedestrian entrance from Bukit Bintang, and the North East Plaza, which is also known as the TRX MRT Plaza. Gadang will also be upgrading streets immediately surrounding TRX by providing landscaping works for internal roads of the TRX.
(The Sun, The Star & The Edge, 21/08/2018)
PERAK TRANSIT REPORTS HIGHER 2Q18 EARNINGS
Perak Transit Bhd posted a higher revenue and net profit in 2Q18, boosted by increased contributions from its integrated public transportation terminal operations and petrol station business. Perak Transit operates the Terminal Amanjaya in Ipoh and petrol stations in several towns across Perak. Construction of Terminal Kampar has commenced and is expected to be completed by the end of 2018. The group also intends to develop similar integrated public transportation terminals in Parak in Bidor and Tronoh.
(The Star, 21/08/2018)
ECRL, PIPELINE PROJECTS CANCELLED
The East Coast Rail Link and projects that entail the construction of two gas pipelines have been cancelled. The projects could not move forward due to Malaysia’s financial woes. Details of the cancellation including matters related to compensation will be discussed at a later stage.
(The Star, The Edge & NST, 22/08/2018)
TRANSPORTATION NETWORK IN EAST COAST STATES WILL BE IMPROVED
The government will continue to rehabilitate the existing Gemas-Tumpat single track railway line and improve road networks in east coast states, following the decision to scrap the East Coast Rail Link (ECRL). KTM Bhd was forced to temporarily close the Gemas-Tumpat line after certain sections of the stretch, signalling systems, stations and the Kemubu Bridge were badly damaged during floods in late 2014.
(The Star, 23/08/2018)
TRANSPORT MINISTER: RFID TOLL SYSTEM NOT CONFIRMED
According to the Ministry of Malaysian Transport, the Malaysian government has not made a decision on the gateless gantry toll system that utilises radio frequency identification (RFID) at all major highways. It was reported more than a week ago that by January 2019, Touch ’n Go and major highway concessionaires plan to introduce the RFID system for toll payment at all highways. The system uses a sticker embedded with an RF chip which is pasted on vehicles. Touch ’n Go has reportedly stopped selling SmartTAG devices at all of its authorised channels, however, SmartTAG devices can still be used on all highways. Touch ’n Go also announced that trials for the RFID will commence on September 3, 2018, via the RFID and MYRFID lanes at 16 highways in the Klang Valley. Motorists driving privately registered Class 1 vehicles (motorcars, vans, jeeps and pickups) may register to take part in the trial. Other criteria regarding participating in the trial include ownership of a Smartphone and a Touch n’ Go e-wallet account, which users can sign up for beginning September 3 2018. Motorists will also need to visit relevant authorised centres to attain RFID stickers.
(The Edge, 21/08/2018)
KLCCP EXPECTED TO END 2018 HIGHER VIA OFFICE AND RETAIL SEGMENTS
KLCCP Stapled Group’s financial performance in 2Q18 grew marginally as a result of the high occupancy rate in its office division, along with higher rental. KLCCP, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (REIT), had denoted that the growth in financial performance was due to the 100% occupancy registered by Menara ExxonMobil since April 2017.
(The Malaysian Reserve, 18/08/2018)
ISKL PUTS FORMER SCHOOL, LAND UP FOR SALE
The International School of Kuala Lumpur (ISKL), which has a long-standing history in Malaysia, has placed two of its campuses in Selangor up for sale after moving into its new campus in Ampang Hilir, Kuala Lumpur. Sale of the building and land could fetch the non-profit, parent-governed school as much as RM180 million and according to ISKL’s website, the school has relocated to Lorong Kelab Polo Di Raja in Ampang Hilir, which is approximately 3km east of KLCC.
(The Edge, 20/08/2018)
DBKL LAND DEAL REPORT COMPLETED
The special task force report on 64 parcels of land that were dubiously transacted by Dewan Bandaraya Kuala Lumpur (DBKL), have been completed for review. Recommendations included cancelling deals and offering refunds, continuing the deals or seeking better terms and conditions. From 2013 to 2018, transactions involving 424 acres of land worth RM4.28 billion were done without going through open tenders.
(The Edge, 18/08/2018)
MB WORLD 2Q18 EARNINGS UP THREEFOLD TO RM22.08 MILLION
MB World Bhd’s net profit for 2Q18 increased over three fold to RM22.08 million, mainly due to higher revenue in the property development division. The group launched new phases of its Taman Sri Penawar project in Desaru, Johor, which comprised of 166 single storey terraced houses and 228 double storey terraced houses. It also launched its maiden project in Malacca called Novo 8 Residence, which has received positive response from the public due to its “strategic location and versatility of layout designs”.
(The Sun, 21/08/2018)
PMHB’S JV SECURES RM218.2 MILLION CONTRACT
Pesona Metro Holdings Bhd (PMHB) has announced that Intrasegi Sdn Bhd, a joint venture formed by Pesona Metro Sdn Bhd and Intrasegi Sdn Bhd, has received a letter of award from Pembinaan Kery Sdn Bhd, for construction works worth RM218.2 million. Pembinaan Kery is a wholly owned subsidiary of Melati Ehsan Holdings Bhd. Works to be executed are related to the development of commercial towers located in Kuala Lumpur’s prime area of Jalan Conlay. Commencing September 2018, the project is expected to take 26 months to complete.
(The Malaysian Reserve, 21/08/2018)
ALIBABA CLOUD REACH 10,000 REGIONAL PARTNERS IN 3 YEARS
Alibaba Cloud, the cloud computing arm of China’s Alibaba Group is shaping the future of Malaysia and Asia Pacific by transforming industries and cities towards a new digital era. Alibaba Cloud, ranked third in the global public-cloud market, recently launched nine products in Singapore as part of its global footprint to provide a new retail concept which helps merchants deploy resources more effectively and gain deeper insights into consumer patterns. Alibaba Cloud aims to be a gateway and localised business partner with companies, governments, research institutions, and other industry players in the region. Within the next three years, the group wants to develop an ecosystem of partners in this region up to approximately 10,000 partners. The group wants to develop a regional programme to nurture talent and has announced its collaboration with the National University of Singapore to focus on nurturing data-science talents. Alibaba and the Malaysia Digital Economy Corporation Sdn Bhd have planned on rolling out digital education programmes in Sabah, Penang and Johor Baru by year-end.
KEPONG MP URGES GOVERNMENT TO FREEZE TRANSACTIONS OF 19 LAND PLOTS IN KL
The Kepong Member of Parliament will lodge a report with the Malaysian Anti-Corruption Commission to investigate 19 pieces of land owned by Yayasan Wilayah Persekutuan (YWP). These 19 plots cover over 30.2 acres on prime land in Kuala Lumpur, including a piece of land in Taman Rimba Kiara. Information obtained from the Kuala Lumpur Land Office had exhibited that land sizes of some of these parcels range between 0.06 acres and 12.01 acres. These plots are a mixture of freehold and leasehold-titled land, whereby their usage is allocated to commercial, residential or mixed-use development. Among these plots, nine pieces of the land were transferred to YWP under the administration of the former Ministry of Territories.
(The Edge Financial, 24/08/2018)
LBS BINA TO LAUNCH NEW DENGKIL TOWNSHIP IN SEPTEMBER OR OCTOBER 2018
By September or October 2018, LBS Bina Group Bhd will launch a 633 acre township at Cyber South in Dengkil, which is subject to approvals by the authorities and attainment of the Advertising Permit and Developer License. LBS plans to build 3,000 affordable homes priced at RM300,000 within the Dengkil project to support the government’s target of increasing affordable homes in the nation. The first phase of the Dengkil Township comprises 379 units of 2-storey link houses and 698 units of 2-storey townhouses. The link houses have a land size of 20ft by 60ft and will sell for RM530,000, whereas townhouses have a land size of 20ft by 75ft and will be priced at RM399,000. The gross development value for the first phase is RM493 million.
(The Edge, 18/08/2018)
LBS OFFICIALLY LAUNCHES THIRD PHASE OF ALAM PERDANA
LBS Bina Group Bhd has official launched the third phase of its latest township project, Alam Perdana in Ijok. Referred to as Rentak Perdana, the third phase of Alam Perdana comprises 856 units of 2-storey terraced houses and 28 semi-detached houses, with a Gross Development Value of RM475 million. The built-up area of the double storey terraced house is 1,420 sq. ft., whereas the semi-detached homes have a built-up of 1,847 sq. ft. The terraced houses are priced at RM509,900 and the selling price for semi-detached houses is from RM888,000.
The first phase of Alam Perdana comprises Simfoni Perdana and Irama Perdana homes, which were launched in November 2017. Simfoni Perdana offers 980 units of 2-storey townhouses with a built-up size of 1,191 sq. ft. and are priced from RM368,000. Of the entire phase, 512 townhouses are under the Perumahan Penjawat Awam 1Malaysia (PPA1M) scheme and the rest are open to the public. Meanwhile, Irama Perdana comprises 673 units of 2-storey terraced houses with an average built-up size of 1,208 sq. ft. priced from RM479,900. Simfoni Perdana has recorded an 88% sales rate and Irama Perdana is fully sold.
(The Edge, 18/08/2018)
HBA: INITIATE BTS 10:90 CONCEPT TO EASE HOUSING WOES
According to the National House Buyers Association (HBA), home ownership would be made easier if the government promotes the build-then-sell (BTS) 10:90 concept, while providing tax incentives to developers that are involved in affordable housing projects. The HBA will suggest that the government initiates the BTS 10:90 concept, which translates into buyers having to pay a 10% down payment with the remainder only being paid once the house is completed. Currently, most developers practice the sell-then-build (STB) model, with buyers paying 10% and then continuing to make progressive payments as the developers build. In the absolute BTS system, developers can only sell finished products which are ready for buyers to take occupation. Under the BTS 10:90, which is not an absolute BTS concept and deemed a “hybrid” by HBA, developers can only sell once approvals have been obtained and upon the product being officially launched. Buyers pay 10% upon signing the sales and purchase agreement (SPA), whereas the 90% balance is payable only when houses are completed with separate titles, issuance of the Certificate of Compliance and Completion, equipped with water and electricity and vacant possession is granted.
(The Malaysian Reserve, 23/08/2018)
MERCURY SUBSIDIARY’S PR1MA JOB TERMINATED
Mercury Industries Bhd’s subsidiary, Paramount Bounty Sdn Bhd, had a RM73.06 million contract for the construction of 648 units of serviced apartments in Malacca, which has now been terminated. Under the 1Malaysia People’s Housing Programme (PR1MA), the project was initially awarded by Upaya Jernih Sdn Bhd to Paramount Bounty, which is 70% owned by Mercury.
(The Sun, 20/08/2018)
PLANS FOR A PARK AT HIGHLAND TOWERS SITE
The Ministry of Housing and Local Government plans to build a recreational park on the site of the Highland Towers condominium which collapsed 25 years ago. Previously, there were plans to build a housing project for the B40 group on the site, but land in the area was deemed unsuitable for the construction of any buildings.
(The Edge & The Star, 19/08/2018)
MCT BUYS TROPICANA LAND TO BUILD RM265 MILLION LUXURY CONDOMINIUM
MCT Bhd is acquiring a 1.77 acre piece of leasehold land within Tropicana Golf & Country Resort in Bandar Damansara, Selangor, from Tropicana Corp Bhd for RM42.3 million cash. MCT plans to develop a RM265 million luxury condominium in two separate phases on the land, which has a direct frontage onto Persiaran Tropicana and is bordered by the Tropicana Grande luxury high-rise condominium. Offering 226 units, MCT is expected to generate a gross profit of RM146 million from the proposed project, which is slated for commencement in 2019 and is to be completed in 2023. MCT’s indirect wholly-owned unit, One Residence Sdn Bhd, has entered into a sale and purchase agreement with Tropicana’s wholly-owned subsidiary, Tropicana Golf & Country Resort Bhd, to acquire the leasehold land, which expires on April 4, 2109.
(The Edge, 22/08/2018
FOODPANDA PARTNERS QSR BRANDS TO OPEN 1ST DINE-IN KITCHEN IN KL BY 2019
By the end beginning of 2019, Foodpanda Malaysia Sdn Bhd, the meal delivery company for restaurants, plans to open a central dine-in kitchen in Kuala Lumpur (KL) as part of its expansion plan. Foodpanda already has a central dine-in kitchen in Singapore, which opened in March 2018 and delivers food within a 5km radius. QSR Brands operates Kentucky Fried Chicken (KFC) and Pizza Hut restaurants, whereby to date, there are more than 320 KFC and Pizza Hut outlets in the country that offers delivery services via their own platforms.
(The Malaysian Reserve, 20/08/2018)
MALLS, NOT DEAD YET
Over the past two years, real estate professionals and even the general public have been saying that online retailing will replace shopping centres in the immediate future. However, shopping centres will not close down due to the exponential growth of e-commerce. Over the last decade, changes in the retail market and shopping behaviour of Malaysians have led to changes within shopping malls. Some trades such as a video store, music store, large bookstore, card and gift shop, computer speciality store, handphone store and others are no longer seen in many for shopping malls. Other trades now enjoy a higher percentage of floor area in recent years and in particular, the average floor area dedicated to food and beverage outlets has increased from approximately 10% to 30%. Large-format fashion stores such as H&M, Mango, Zara, Uniqlo, Padini Concept Store and others are also moving into the prime area of shopping centres.
Large-format discount stores such as Daiso, Mr DIY, Jalan Jalan Japan and home speciality stores such as SSF and Kaison are becoming “crowd-pullers” for shopping centres. Bigger supermarkets that are 30,000 sq ft and above are now found in new shopping centres rather than hypermarkets that are 100,000 sq ft and above. New entertainment components have been introduced to shopping centres recently, such as District 21 in IOI City Mall, The Rift in Mid Valley Megamall, FlowRider and AirRider in 1 Utama. More services and new types of services including medical clinic, dental clinic, skin centre, eye centre and other specialist centres are now found in shopping centres. Many online retailers are also setting up shops and more will do so in the future. Christy Ng has five “brick-and-mortar” stores in Mid Valley, 1 Utama, MyTown, Jaya One and AEON Tebrau. FashionValet has three physical stores in Bangsar Village, Pavilion and IOI City Mall. Twenty3 has five physical stores in Bangsar Village, Atria, Publika, Sunway Pyramid and Gurney Paragon. Redtick started as an online grocery store, and now has three physical supermarkets, including one in Setia Walk Mall. Furthermore, more community facilities are now found within shopping centres. They include children playground, library, store for the donation of used goods, and recycle centre.
(The Star, 22/08/2018)
SP SETIA PLANS RM4 BILLION LAUNCHES
SP Setia Bhd will ramp up launches to RM4 billion worth of projects in 2H18. This is on the back of “improving market sentiment” and is in line with its aim of achieving RM5 billion in sales for 2018. The planned major launches are in Setia Alam, Setia Ecohill, Setia Ecohill 2, Setia Eco Templer, Setia Eco Glades, Setia Sky Seputeh (Tower B), Temasya Glenmarie, Setia Alamsari and Setia Alaman, all with an aggregated gross development value of RM2.23 billion
(The Sun, NST & The Edge, 24/08/2018)
E&O TO BUILD PROJECTS WORTH RM1.5 BILLION IN NEXT 2 YEARS
Eastern & Oriental Bhd (E&O) is planning to build RM1.5 billion worth of projects over the next two years. The projects comprise “The Conlay” located in Kuala Lumpur with a gross development value (GDV) of RM896 million and “The Peak” (GDV RM278 million) in Damansara Heights. Another proposed project is Plot 13A located at the Gurney Green Park in Penang, with a GDV of RM350 million. “The Conlay” is the second high-rise development joint-venture project with Mitsui Fudosan and is a residential apartment with a unique and iconic design. Prospectively, the company’s resources in the next financial year will be channelled towards the maiden Seri Tanjung Pinang (STP) 2 launch, which is slated for 2019. The reclamation of STP2A (the first phase of the reclamation), which has obtained its titles for all land, is currently 95% completed.
(The Edge, NST & The Star, 22/08/2018)
MET GALLERIA CATERS TO RETAIL DEMAND
Met Galleria, which was launched in July 2018, will cater to the residents of MET 1 Residences, workers from nearby offices and the High Court, and people visiting the Malaysia International Trade and Exhibition Centre (MITEC). The two-storey upmarket lifestyle mall, built within the RM20 billion KL Metropolis’ Met 1 building, will also cater to affluent Mont Kiara residents. Met Galleria, with a gross development value (GDV) of RM160 million, is the first retail component of the KL Metropolis, which is a 76 acre mixed-use development that houses the largest trade and exhibition destination in Malaysia. The mall has more than 80,000 sq. ft. of net lettable area set in a modern colonial setting, of which 40% of Met Galleria’s lettable area is dedicated to food and beverages and 20% has been planned for retail concept stores. The remainder of the space will be distributed among anchor tenants (15%), services (15%) with the remainder being for showrooms and kiosks.
The commercial value of KL Metropolis has been cemented by MITEC when the MICE (meetings, incentives, conferences and exhibitions) venue officially opened in 2017. MITEC is not the only commercial component as the MET Corporate Office Towers which are currently under construction will be an additional commercial component. Developed by Triterra Metropolis Sdn Bhd, MET is the first Grade A stratified corporate office development in KL Metropolis, with two towers standing at 30 and 42 floors. MET 1 Residences, was launched in 2017 with 616 units with built-up areas of between 677 and 1,613 sq. ft. Arte Mont Kiara, which is a serviced residence developed by Nusmetro Sdn Bhd, a joint-venture partner of Naza TTDI, has 1,706 units of serviced residences with built-up area ranging from 422 to 1,142 sq. ft.
RM400 MILLION UNSOLD BUMI PROPERTIES IN KEDAH TO BE “RELEASED”
The Kedah government is planning to release RM400 million worth of freehold only Bumiputera property lots which were built before 2017 and have remained unsold for the past 10 years. These include approximately 1,000 houses, shophouses and industrial buildings. Between 30% and 50% of such developments are usually reserved for Bumiputera buyers.
(The Star, 24/08/2018)
T7 GLOBAL POSITIVE ON AEROSPACE VENTURE
T7 Global Bhd believes that its diversification efforts into aerospace manufacturing will break even in three to four years, as it is positive about the stabilisation of oil prices and more contracts being awarded by Petroliam Nasional Bhd (Petronas). T7, formerly Tanjung Offshore Bhd, is principally involved in providing comprehensive services to the oil and gas (O&G) industry and is banking on its three businesses involving O&G, aerospace and infrastructure & construction. Regarding its diversification into aerospace, the group expects its factory in Serendah to be operational by the end of 2018 and for it to obtain the necessary accreditation by 1Q19. T7 is partnering with Kilgour Aerospace Group, a UK manufacturing company, to set up a surface metal treatment facility.
(The Sun, 21/08/2018)
BANGI AVENUE TO HAVE FOUR HOTELS
Bangi Avenue, a township in southern Klang Valley, will offer four new hotels to complement the new Bangi Avenue Convention Centre (BACC) by Avenue Garden Hotel. The hotels, with a total room capacity of 1,000, will be built in “the coming years”.
PERAK THEME PARK TO BLOSSOM AFTER TERMINATION OF DREAMWORKS LICENCE AGREEMENT
The termination of the licence agreement between the Movie Animation Park Studios (MAPS) in Perak and DreamWorks Animation LLC, has proven to be beneficial as all rides and attractions in the theme park can now be opened to visitors. Under the former agreement, there was a zone that was already completed but remained inoperable due to intellectual property (IP) restrictions.
(The Edge, 21/08/2018)
INTRGRATED THEME PARK RESORTS ON THE RISE
Families are expected to crowd local theme parks with integrated accommodation in comparison to standalone theme parks, which may be slowly going out of style. Several new attractions are scheduled to be launched by Themed Attractions Resorts & Hotels Sdn Bhd, which includes the Datai Langkawi Resort in September 2018; the Westin Desaru Coast Resort in October 2018; the Hard Rock Hotel in November 2018; the One&Only Desaru Coast in 4Q18 and Anantara Desaru Coast Resort & Villas in 1Q19. Legoland Malaysia Resort will also be launching its Sea Life aquarium, which features 11 habitat zones, sometime between 4Q18 and 1Q19.
(The Malaysian Reserve, 22/08/2018)
STATE GOVT PROPOSES TRAM AND COMMUTER SERVICE FOR JOHOR
The state government has proposed a tram project for the city, which is projected to ease traffic congestion and serve as a tourist attraction. The Iskandar Regional Development Authority will initiate a feasibility study on the project that is expected to be completed in three years and routes will include Johor Baru Sentral to Medini, Kulai and Pasir Gudang. A government-linked company will collaborate with a private company to manage the tram service. Johor’s Menteri Besar has also proposed a commuter service between Kempas and Pasir Gudang.
(The Sun, 21/08/2018)
KHAZANAH TO SELL STAKES IN TWO JVCOS TO TEMASEK
Khazanah Nasional Bhd is reportedly in negotiations to sell its stakes in two property-development joint-venture companies to Temasek Holdings Pte Ltd. The ongoing negotiations involve sales of a 60% stake in M+S Pte Ltd and a 50% stake in Pulau Indah Ventures Sdn Bhd, both companies in which Temasek is a partner. M + S, set up in 2011, is developing the iconic Marina One and DUO integrated developments which have an estimated GDV of S$11 billion (RM32.75 billion). Meanwhile, Pulau Indah Ventures is involved in the development of Afiniti Medini and Avira integrated wellness projects in Iskandar Malaysia. The negotiations are part of the government’s efforts to pare down its debts and finance its spending.
(The Edge, 23/08/2018)
15,000 NEW HOMES IN JB TO EASE SQUATTER WOES
The state government will build 15,000 houses to help ease the growing “squatter problem” in the city. It has collaborated with a local bank on a RM300 million special housing loan scheme to allow for low-income groups to purchase these houses. This scheme is only applicable to those who failed to meet the criteria of commercial banks, with regards to their loan applications.
(The Sun, 21/08/2018)
VERTICE EYES SLICE OF PENANG MEGA INFRASTRUCTURE PROJECT
Vertice Bhd (formerly Voir Holdings Bhd), which is likely to dispose of its entire fashion business, sees construction as its foundation towards progressing forward, as it looks at venturing into Consortium Zenith Construction Sdn Bhd’s (CZC) RM6.3 billion mega infrastructure project in Penang, whereby Vertice owns a 13.2% stake in CZC. The outlook for the group is optimistic with CZC being the contractor of the Penang mega infrastructure project, which comprises an undersea tunnel and three highways.
(The Sun, 23/08/2018)
PENANG GOVERNMENT TO MEET AFFORDABLE HOUSING PLEDGE BY 2020
The Penang state government will meet its 14th general election pledge to build 75,000 low-cost, low-medium cost and affordable houses in the state by 2020. The state government was confident that this total could exceed 100,000 units by 2020. The state government has approved 165 applications encompassing 269 maintenance projects under Penang’s Maximum 80% Housing Maintenance Fund, which is worth RM24 million. The function of the fund is to assist in financing maintenance costs of low-cost, low-medium cost and affordable houses, which includes maintaining lifts, water tanks, piping systems and roofs.
(The Edge, 22/08/2018)
WESTSTAR OPENS 3S CENTRE & UNVEILS NEW MODEL TO GROW MARKET SHARE
Weststar Maxus Sdn Bhd has opened a 3S showroom in Bukit Mertajam to support its customers in the northern region. The showroom provides support for sales, services and spare-parts, which will serve customers in Perak, Penang, Kedah and Perlis. Plans are afoot to operate an additional 3S facility in Alor Star in the foreseeable future as a strategic move to consolidate Weststar Maxus’ presence in the northern region.
(The Star, 20/08/2018)
PKT AIMS FOR RM1 BILLION REVENUE BY 2020
PKT Logistics Group Sdn Bhd, which aims to be listed in 2019, is targeting RM1 billion in revenue by 2020. The company projected a RM650 million turnover, which is a 30% improvement from 2017. PKT took a bold step in establishing “The 12 Waves” as an integrated logistics hub to serve its customers in the northern corridor. Built at a cost of RM120 million, the 650,000 sq. ft. warehouse is equipped with state-of-the-art features, such as solar panels, natural lighting, ventilation and advanced security and surveillance systems. “The 12 Waves” also contains a truckers’ lounge, service area with a food court, convenience store, shower facilities and a recreational Japanese garden.
Located on a 70-acre site in Batu Kawan, “The 12 Waves” serves as a central component of the group’s integrated auto-hub development in the northern region, which will also contain components such as The Ship Campus, The Automotive Boulevard, The Lighthouse Lodge and The Andaman Wharf. These components will be completed over the next five years. PKT is a leading home-grown logistics service provider with a presence in South Korea, Taiwan and most Asean countries. It provides one-stop logistics solutions to customers from diverse industry segments involving automotive, food and beverage, fast-moving consumer goods, construction and e-Commerce.
(The Star, 20/08/2018)
PENANG TO BUILD WATER PARK
The Penang government is still planning to develop a water theme park in Batu Kawan to attract investors to develop the area, in addition to developing commercial, housing and mixed development projects. The Penang Development Corporation (PDC) is planning to expand on the water theme park idea and is open to suggestions and collaboration.