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ECONOMIC GROWTH SLOWDOWN

Malaysia’s economic growth has remained steady in 2018, despite rising trade tensions, turmoil in emerging markets and ongoing local political shifts. While Gross Domestic Product for 1Q18 and 2Q18 fell under par at 5.4% and 4.5% respectively, improved labour market conditions and low levels of inflation have boosted consumer optimism to a 21-year high at 132.9 points following the May 9, 2018 election. Market confidence also appears to be on the rise as the pace of foreign outflows weakened to a four month low of RM97.4 million in August 2018.

(The Malaysian Reserve, 19/09/2018)


GOVERNMENT MAY TWEAK ECONOMIC DEVELOPMENT POLICIES

The government is expected to develop strategies and initiatives for economic development by making adjustments to existing policies and programmes, such as the Economic Transformation Programme (ETP) and the Eleventh Malaysia Plan (11MP). The government is likely to introduce a new national economic policy since the National Development Policy (NDP) has ended and the country’s policies will be reviewed to ensure “sustainable economic development and equitable distribution”.

(NST, 16/09/2018)


NO PLANS TO RAISE INDIVIDUAL OR CORPORATE TAX

The government is not planning to raise corporate and individual tax rates, prompting it to take a holistic approach in reforming the country’s taxation system. The Tax Reform Committee (TRC) will be tasked with broadening and diversifying the Federal Government’s tax revenue and minimising tax leakages, without burdening the public. The main objectives include: reducing the tax gap, addressing tax leakages, exploring new sources of revenue, studying the taxation of the digital economy and reviewing the effectiveness of tax incentives provided by the law.

(NST, 15/09/2018)


INFLATION TO MODERATE IN AUGUST 2018

According to RAM Ratings, Malaysia’s headline inflation rate is expected to moderate to 0.3% in August 2018 compared with 0.9% in July 2018, underpinned by a weaker contribution from the transport fuel component. The rating agency mentioned that the component’s growth should also ease throughout the rest of 2018 as low-base effects subside. As for the full year, overall inflation is envisaged to come in at 1.3% compared with 3.7% in 2017.

(The Edge & The Sun, 19/09/2018)


AUGUST 2018 CPI UP 0.2% YEAR ON YEAR

The consumer price index (CPI) rose 0.2% year-on-year in August 2018, registering the lowest rate in 42 months, attributed by the recent tax holiday and stable fuel prices. Based on the a statement issued by the Statistics Department of Malaysia, the slowdown in movement was due to the impact of the cost of fuels, which caused the index for transport to increase by 2.1% compared with 6.7% recorded in July 2018. On a monthly basis, the CPI increased by 0.2% compared with July 2018, while CPI for the first eight months registered an increase of 1.3%, compared with the same period in 2017.

(The Sun, The Star & NST, 20/09/2018)


 

PUTRAJAYA CONSIDERING DEBT ISSUANCE AND ASSET MONETISATION

Malaysia requires “an economic road-map” to chart a path from global kleptocracy (corrupt leaders) to sustainable growth, which includes an issuance of debt and asset monetisation to meet financing needs. The Finance Minister is optimistic about Malaysia aiming for sustainable growth via fiscal discipline, prudent budgeting, monetary stability and low inflation.

(The Edge, 19/09/2018)


NEW DIGITAL TAX WILL INCREASE COSTS, PRICES

The Institute for Democracy and Economic Affairs (Ideas) have stated that the new direct digital tax in Malaysia will increase the costs of digital goods and services, which will in turn increase prices for consumers and businesses. In a brief titled “Tax in The Digital Age” published by Ideas, it was denoted that a direct digital tax could increase revenue in the short term, but could cause sluggish development of the digital economy, particularly for new start-ups and small and medium enterprises. If Malaysia introduces a “direct digital tax”, this may encourage other countries to do the same, which would be damaging for Malaysian firms looking to export to those markets. As an open trading nation, Malaysia stands to benefit more from a pro-trade, pro-innovation approach to the digital economy.

According to Ideas, the case for an “indirect tax” on digital activity, which involves applying the sales and services tax (SST) to digital purchases from abroad, is less controversial than a new “direct tax” and many countries have already taken this approach. Doing so in Malaysia would also level the playing field between foreign and Malaysian companies, as local digital firms are already subject to the SST. It would however still increase the cost of digital goods and services in Malaysia and drive up prices. New taxes fall into two categories, which include “direct taxes” targeting profits of foreign digital companies doing business in Malaysia, and “indirect taxes” that apply consumption taxes (like SST) to foreign companies selling digital goods and services in Malaysia (paid by the users).

(The Sun, 20/09/2018)


 

KL NAMED “WORLD BOOK CAPITAL” 2020 BY UNESCO

Kuala Lumpur has been named “World Book Capital” for the year 2020 by the United Nations Educational, Scientific and Cultural Organisation. In a statement on its website, Malaysia’s capital was selected because of the city’s strong focus on inclusive education; its ongoing development of a knowledge-based society; and its population’s ease of access to reading materials. Kuala Lumpur is the 20th city to bear the title since 2001.

(NST & The Star, 21/09/2018)


 

DESA PUTRA CONDOMINIUM RESIDENTS PROTEST ABOUT HIGH-DENSITY DEVELOPMENT

Members of the Desa Putra Condominium Residents Association expressed their apprehensions over the recently announced new commercial development comprising 382 serviced apartment units housed in a 46-storey block with an 8-storey car park, which will be developed within 100 metres of their homes. The tract has an estimated land size of 1.9 acres and is located right across the road from the Sri Rampai Light Rail Transit station in Wangsa Maju. It has been converted from residential land to a commercial land title to allow for a higher plot ratio within the development. The Residents Association is concerned that the aggressive development of this high-density project will adversely impact their living environment.

(The Edge, 19/09/2018)


 

COMMITTEE TO FOCUS ON CAMERON HIGHLANDS’ TRAFFIC CONGESTION

The former Barisan Nasional federal government has approved a RM40 million plan to ease traffic congestion in Cameron Highlands during holidays and extended weekends. However, it was revealed that the change of government in Putrajaya had “derailed” the plan. The project included conducting a study, improvement and opening of new roads and a multi-storey car park, which will strategically assist in resolving the traffic issue. An interim committee will now re-assess and re-plan the initiatives, in addition to inputting new proposals for the project.

(The Edge, 19/09/2018)


 

LRT3 PROJECT TO RESUME IN NOVEMBER 2018 WITH LOWER COSTS

The Light Rail Transit 3 (LRT3) project is expected to continue in November 2018, as contractors have agreed to lower project costs. The LRT3 project delivery partner role will be taken on by the Malaysian Resources Corp Bhd-George Kent Bhd joint venture. On July 11, 2018, the Finance Ministry approved the continuation of the project with a total cost that was reduced to RM16.63 billion, from an initial cost of RM31.65 billion. The project’s altered design and contracts will be finalised in October 2018, with works to be resumed in November 2018.

(The Edge, 17/09/2018)


 

KLIA AMONG ASIA PACIFIC’S “TOP 3 MOST CONNECTED AIRPORTS”

The OAG International Megahubs Index 2018 ranked Kuala Lumpur International Airport (KLIA) 12th in its Top 20 most connected airports worldwide (and ranked 3rd in Asia-Pacific after Singapore and Jakarta). The index, which grades airports according to the highest ratio of scheduled international connections to the number of destinations served, placed Singapore’s Changi in 8th place, Jakarta Soekarno-Hatta International in 10th, Hong Kong International in 13th and Bangkok Suvarnabhumi in 14th place. In the International Low-Cost Megahubs section, ongoing low-cost airport infrastructure development, route network expansions and seat capacity growth have enabled KLIA, Jakarta Soekarno-Hatta International and Singapore’s Changi to retain the Top 3 Asia-Pacific rankings.

(NST & The Edge FInancial, 20/09/2018)


 

KVDT PHASE 2 CONTRACT CANCELLED

The government has cancelled the current contract for the second phase of the RM5.2 billion Klang Valley Double Track (KVDT) rail upgrade project due to excessively high costs. The project involves 110km of railway tracks spanning from Kuala Lumpur to Klang, Salak South to Seremban and Simpang Port Klang to Port Klang. The entire project involves infrastructure and system upgrades to ensure safe, reliable and comfortable train services, which was meant to be implemented over seven years. A new tender will be called for at the end of 2018.

(The Star & NST, 20/09/2018)


SUKE AND DASH ARE 30% COMPLETE

Construction of the Sungai Besi-Ulu Kelang Elevated Highway (SUKE) and Damansara-Shah Alam Eleveted Highway Expressway (DASH) has reached a 30% completion target since construction commenced in 2016. Construction of the two highways are expected to be completed by 2020, whereby the cost of building SUKE is RM4.6 billion and DASH is RM4.1 billion. SUKE is a 24.4km highway with 14 intersections, while DASH spans 20.1km with 13 intersections.

(NST, 17/09/2018)


 

GOVERNMENT DRAFTS QUALITY STANDARD FOR PUBLIC TRANSPORT TERMINALS

Quality standards for upgrading public transport terminals nationwide are being drafted to include various aspects for the convenience and safety of passengers, according to the Malaysian Transport Ministry. The standard is being developed through the Land Public Transport Agency (APAD) and is aimed at improving the quality of public transport and encouraging more people to use it. The federal government is preparing a standard to improve public transport terminals to be on par with airports or the South-Bandar Tasik Selatan Integrated Transport Terminal (TBS-BTS) in Kuala Lumpur. The standards will be implemented in stages depending on the financial capabilities of each state, with Penang, Perak and Malacca being among the states with the best capability to adhere to the “quality standards”.

(The Sun & NST, 21/09/2018)


LOWER PASSENGER SERVICE CHARGE AT MELAKA AIRPORT

Passengers flying out of Melaka International Airport (LTAM) to any international destination will now enjoy a lower passenger service charge (PSC). LTAM is the fourth airport granted the incentive by Malaysia Airports Holdings Bhd (MAHB) after KLIA 2, and the Langkawi and Labuan airports. MAHB will provide a rebate of RM50 for international flights outside Asean, meaning that the PSC will be reduced to RM23 from RM73, whereas flights within Asean will have a rebate of RM20 and the PSC will come down to RM15 from RM35. Currently there are merely two airlines operating at LTAM which may benefit from this incentive, Malindo Air and Xpress Air.

(The Edge Financial, 21/09/2018)


 

VERTICE UNIT’S RM339.86 MILLION SUB-CONTRACT IS WITHDRAWN

The RM339.86 million Ulu Kelang Package CA1 sub-contract for the SUKE highway, which Vertice Construction Sdn Bhd (VCSB) secured in early 2018 has been withdrawn. Costs and expenses that have been incurred thus far have amounted “to less than RM1.5 million”.

(The Star, 15/09/2018)


SYNERGY PROMENADE MULLS LEGAL ACTION AGAINST FELDA

Synergy Promenade Sdn Bhd’s management and board will decide on possible legal action against the Federal Land Development Authority (FELDA), due to a dispute in the RM8.3 billion Kuala Lumpur Vertical City (KLVC). In 2017, a transfer of approximately 20 acres of land (involving 16 titles) from landowner FELDA to Synergy Promenade was said to be “dubious”. However, investigations by the Malaysian Anti-Corruption Commission and the police did not confirm any suspicions. The land was transferred for development purposes and FELDA was set to receive RM500 million or 10% of the total gross development value.

Other issues include FELDA’s changes to the specifications of the KLVC development. An example of one such change is the plan for one 68-storey tower, which was later changed to three towers. Kuala Lumpur Vertical City (KLVC) project includes the KLVC Tower 1A, a 68-storey tower, and a 70-storey skyscraper, and a 75-storey tower housing a four-star hotel. The hotel is part of Felda Investment Corporation Sdn Bhd’s hospitality business plan. Currently, Synergy Promenade is in the process of building the 68-storey tower.

(The Star, The Edge & NST, 15/09/2018)


 

 

FELDA WANTS TO RENEGOTIATE WITH SYNERGY PROMENADE ON KL VERTICAL CITY

Felda has set up a new committee to renegotiate with Synergy Promenade Sdn Bhd (SPSB) on the status of the Kuala Lumpur Vertical City (KLVC) project in Jalan Semarak, Kuala Lumpur. The agency is in the midst of collecting details and findings of the project before it can progress discussions with SPSB.

(NST, The Edge & The Star, 21/09/2018)


 

MELAKA LOOKING FOR LOOPHOLES TO STOP RECLAMATION PROJECT

A large-scale marine reclamation project at Klebang could face a temporary stop-work order or even cease permanently. The Melaka government is re-assessing the agreement sealed between the previous state government and the developer after residents and fishermen conveyed their concerns to the authorities. The State Housing, Local Government and Environment Committee had ordered for a further study on the environmental impact of the project and any loopholes in the agreement.

(The Star, 18/09/2018)


BINASAT’S GAME-CHANGING TELEPORT FACILITY

Telecommunication support services provider, Binasat Communications Bhd, is banking on its new satellite teleport facility at Technology Park Malaysia in Bukit Jalil to be a game changer. A teleport facility is the main ground station of a satellite network that serves as the main connection point between the satellite and a terrestrial network, such as the internet or a wide area network. Sited on 1.6 acres, the facility will assist Binasat in opening new doors and moving up the value chain. With the land secured, requisite licences in hand and adequate funds raised from its initial public offering in January 2018. The group will submit its development master plan to the Kuala Lumpur City Hall within the next three months, whereby construction works will then ensue. The infrastructure, which will cost Binasat circa RM15 million, is expected to be commissioned by early 2020.

(The Edge Financial, 18/09/2018)


 

WESTPORTS PAID DOUBLE THE RESERVE PRICE FOR UNDERSEA LAND

Westports Holdings Bhd had purchased a parcel of leasehold land below the sea (381 acres) off Pulau Indah in Selangor, from Perbadanan Kemajuan Negeri Selangor (PKNS) for RM116.19 million. Westports expressed that it paid double the reserve price to secure the bid for the land (lease expires on August 14, 2101) which is essential for future container terminal expansion purposes. The proposed land acquisition is subject to state authority consent, which is the responsibility of PKNS to procure. The time frame for obtaining state consent by PKNS is about 45 to 60 days from the date of submitting the application for state consent, which is to be submitted by PKNS within 30 days from the date of the Sales and Purchase Agreement.

(The Sun, 19/09/2018)


POSITIVE OUTLOOK FOR GENTING MALAYSIA DESPITE THEME PARK DELAYS

The outlook for the rest of 2H18 remains positive for Genting Malaysia Bhd despite the likely delays in opening both of its theme parks. As of June 2018, visitor count to the hill top increased by 21% year-on-year (y-o-y) to 12.8 million, due to new facilities opened under the Genting Integrated Transformation Plan (GITP), which include the SkyCasino, SkyAvenue mall and Awana Skyway cable car.

(The Star, 19/09/2018)


 

GLOMAC’S 1Q NET PROFIT DOWN 31.3% BUT RM1 BILLION WORTH OF LAUNCHES PLANNED

Glomac Bhd’s net profit declined 31.3% from RM1.47 million a year ago to RM1.01 million in the first financial quarter ended July 31, 2018 (1QFY19). This was predominantly due to the completion of certain phases of Saujana KLIA in Sepang, Selangor, in the previous financial year and lower construction activities during the quarter under review. The group revenue for 1QFY19 was mainly contributed by progress billings from Bandar Saujana Utama, Sri Saujana and Saujana KLIA. Upcoming launches in FY19 totalling RM1 billion will remain within the mid-market and affordable segments, whereas landed residential projects in townships such as Saujana Perdana in Sungai Buloh, Selangor, and Saujana Jaya in Kulai, Johor, continue to sustain steady sales. The group has also secured an international retailer for the Glo Damansara Mall, which is expected to increase the mall’s occupancy from 45% to 85%. The international retailer, a major player in North Asia, will be introducing a new lifestyle concept fresh to the region and is expected to commence its business operations by early 2019.

(The Edge Financial, The Sun, NST & The Star, 20/09/2018)


 

 

RUMAWIP TO BUILD LARGER HOUSING UNITS OF 900 SQ FT

In the future, the Federal Territories Affordable Housing Project (Rumawip) will comprise units with a built-up area of 900 sq. ft. The Federal Territories Minister denoted that this move was in line with a directive from the Housing and Local Government Ministry to raise the minimum built-up area of housing units from 800 sq. ft. to 900 sq. ft. Approximately 89 Rumawip projects with 55,974 units in totality, had been approved from 2013 until August 2018. Of the total, 9,254 units, 17 projects have been completed, while 23,256 units in 36 projects are being developed with a total value of RM9 billion. As of August 31, 2018 a total of 19,333 units (40 projects) were sold, while the remaining 15,933 units (13 projects) are still at the initial stage of application.

(NST, 19/09/2018)


AUSTRALIAN GROUP SECURES FINANCING FOR TRX PROJECT

Lendlease Asia (LA), an Australian property and infrastructure group is believed to have secured financing for the development of its 17-acre Lifestyle Quarter in the Tun Razak Exchange (TRX). With loan and financing arrangements to be completed by the end of October 2018, LA is planning to launch its serviced apartments in 2019, whereby three parcels have been earmarked for this, with two blocks per parcel. The Lifestyle Quarter will comprise a total of 2,326 serviced apartment units.

(The Star, 21/09/2018)


 

 

MODEST 5% TO 6% GROWTH LIKELY IN MALAYSIA’S RETAIL SECTOR

The local retail sector is expected to register a modest growth of between 5% and 6% in 2018, underpinned by sustained consumer sentiment from improved consumer spending and stability in the market. The past president of the Malaysian Association for Shopping and High-Rise Complex Management mentioned that the local retail sector should grow “more than 5%” in 2018, buoyed by the three-month tax holiday and the anticipated pick-up in spending towards the end of the year as the usual trend shows that the retail sector generally picks up in the 3Q and 4Q of the year

(The Star, 18/09/2018)


 

 

MORE KFC OUTLETS IN BANDAR SERI SENDAYAN

KFC Malaysia and Matrix Concepts Holdings Bhd are looking into the prospect of opening more KFC outlets in Bandar Sri Sendayan in Seremban, Negeri Sembilan, following the launch of the township’s first KFC outlet. OSR Brands (M) Holding Bhd has opened 21 new KFC outlets nationwide out of 23 that it was targeting in 2018. The 24-hour restaurant is able to accommodate 170 customers at a time and is equipped with a drive-thru facility. Located on a 0.98 acre plot just opposite d’Sora Boutique Business Hotel at Sendayan Metro Park, the outlet is built with eco-friendly and energy saving technology including a rainwater harvester system, LED lighting, solar light tubes, motion sensor light and low-emissivity glass as part of the company’s responsibilities towards the environment.

(NST, 19/09/2018)


 

KFC MALAYSIA OPENS ITS 701st RESTAURANT IN UTM GURNEY MALL

KFC Malaysia, a fast food chain and leading QSR brand in Malaysia, launched its 701st KFC Restaurant in Malaysia at UTM Gurney Mall on Jalan Semarak, Kuala Lumpur. The opening of KFC UTM Gurney Mall marks the group 22nd KFC restaurant in 2018, which is in line with the goal of opening 23 outlets in totality as part of KFC’s brand development strategy.

(NST, 21/09/2018)


 

ONLINE RETAILERS OPEN BRICK AND MORTAR STORES

While many traditional retailers have embraced technology by having an online presence, online retailers are now opening physical stores (mainly concept stores) in Malaysia, in line with global trend, to gauge feedback on products. Online fashion retailers which have opened physical stores in Malaysia include: Christy Ng (five stores), Fashion Valet (four stores), Bawal Aidijuma (22 stores), Poplook (three stores), Imaan Boutique (six stores), Reebonz (one store) and Finelycup (one store). Online foods & beverage retailers which have a physical presence include: Fatbaby ice cream (one store), Foodmarket (one store) and Epic Fit meals Co (three stores). Other online retailers include: online grocery store Redtick (three supermarkets), electronics company Xiaomi (five Mi stores) and online jewellery store Jeoel (four stores).

(The Sun. 18/09/2018)


GCH RETAIL UNVEILS NEW DISTRIBUTION CENTRE

GCH Retail (M) Sdn Bhd, operator of the country’s biggest retail and supermarket chain, unveiled its first “fresh retail” distribution centre worth RM116 million in Kajang, Selangor. The 117,570 sq. ft. facility, built on a 269,098 sq. ft. piece of land, is three times larger than its first outlet in Balakong, Selangor. The centre is expected to employ over 200 staff, comprising product experts, buyers, quality professionals and a distribution team.

(The Malaysian Reserve, 19/09/2018)


 

WCT SECURES PAVILION DAMANSARA JOB WORTH RM1.77 BILLION

WCT Holdings Berhad has accepted a Letter of Award (LoA) worth circa RM1.77 billion for a project forming part of the Pavilion Damansara Heights commercial development. WCT’s subsidiary, WCT Bhd, accepted the LoA from Impian Ekspresi Sdn Bhd and the scope of works under the Contract includes the completion of 9 blocks of office towers and 3 serviced apartment blocks on a podium block comprising retail space, mezzanine floors and works involving a lower ground floor and basement car park. The works under the contract are expected to be completed within a period of 38 months from September 2018.

(The Edge, NST, The Star & The Sun, 19/09/2018)


MINISTRY TO BOOST HEALTH SERVICES IN UNDERSERVED AREAS

The health ministry aims to accelerate efforts to achieve universal access to quality healthcare by targeting underserved areas, promoting primary and preventive healthcare and increasing the capacity of both healthcare facilities and personnel.

(The Edge Financial, 19/09/2018)


TOURISM SHARE UP 14.9% FROM 2005

The tourism industry contributed 14.9% to the economy in 2017, compared with 10.4% in 2005 and has been on an upward trend since 2005, with an average annual growth rate of 11.2% in the past 12 years. Foreign tourist arrivals dropped to 25.9 million in 2017 compared with 26.8 million in 2016, whereas the number of domestic visitors increased from 189.3 million in 2016 to 205.4 million in 2017, as Selangor was deemed the most visited state. Shopping remained the largest tourism product, with a value of RM26.8 billion in 2017, followed by accommodation and transportation, which recorded RM20.7 billion and RM15 billion respectively. The number of tourism employees increased to 3.4 million in 2017 from 1.5 million in 2005.

(NST, 16/09/2018)


 

EPF LOOKING TO DISPOSE OF PORT DICKSON HOTEL

The Employees Provident Fund (EPF) is in the midst of seeking a buyer for its Marina Vista Suite Hotel Block B located within Avillion Admiral Cove in Port Dickson, Negeri Sembilan, for RM50 million. The EPF is said to have asked real estate agents to seek buyers, and has yet to hire an exclusive marketing agent. Potential investors have reportedly already been sent an information memorandum, which provides details of the asset. Based on the IM, Marina Vista is an en-bloc strata building housing 160 rooms, with a net lettable area of 73,529 sq. ft. and still has 79 years remaining on its lease.

(The Edge, 15/09/2018)


 

REHABILITATION HOSPITAL LAUNCHED IN PETALING JAYA

Khazanah Nasional Bhd has launched Malaysia’s first 96-bedded rehab hospital in the heart of Petaling Jaya, Selangor, called the ReGen Rehabilitation Hospital. The hospital is owned by Khazanah (60%) and New York Stock Exchange-listed Select Medical Holdings Corp (40%) that is parked under ReGen Rehabilitation International Sdn Bhd, with an initial investment of RM100 million. This rehab hospital caters to a largely unmet demand in the existing Malaysian tertiary healthcare system and is confident that insurers will eventually start to cover rehabilitation treatments in present healthcare insurance schemes.

(The Star, 21/09/2018)


 

NEW “POCKET PARK” IN LUCKY GARDEN

Lucky Garden’s new “pocket park” is set to be the latest attraction in Bangsar, as a recreational green lung for the surrounding community. The “pocket park” measures 6,460 sq. ft. and had originally been an abandoned area which is now a public recreational space. Works began on the site on 2nd May 2018 and were completed on 16th September 2018, with a total cost of RM500,000. Building the “pocket park” was a part of upgrading efforts in the Lucky Garden area, which included the upgrade of pedestrian walkways, planting of greenery, installing street lamps and signboards, and adding parking bays.

(edgeprop.my, 21/09/2018)


PAHANG HOUSE PRICES TO “REMAIN STABLE”

Pahang state’s house prices will not be affected by the implementation of the Sales and Services Tax (SST) on 1st September 2018. According to the Pahang Rehda chairman, despite the fact that the government has exempted construction services and building material costs from the SST, the taxation will “not have any effect on construction costs and house prices”. This is because the factors related to an increase or reduction in house prices are not solely determined by construction material costs. This matter involves several other factors including, supply and demand, land premium prices and location.

(NST, 21/09/2018)


 

 

JOHOR HOPES TO ATTRACT INVESTMENTS FROM TATARSTAN

Johor hopes to see investors from Tatarstan, a republic of the Russian Federation, investing in three promoted economic activities in the state, which include high-technology, high-value and halal investments. Halal investments are a big business, with the world’s Muslim community currently standing at 1.8 billion.

(The Star, 19/09/2018)


 

MAH SING AND DUTCH INSTITUTE SIGNS PACT TO PROVIDE STUDENT ACCOMMODATION

Mah Sing Group Bhd has signed a memorandum of understanding with the Netherlands Maritime Institute of Technology (NMIT) to provide fully-furnished accommodation for students of the institute.

(The Star & The Edge, 21/09/2018)


 

UEM SUNRISE TO LAUNCH TWO NEW HOUSING PROJECTS

UEM Sunrise Bhd will be launching two new housing projects, which includes one at Gerbang Nusajaya in Johor on a 30 acre site (3Q18 launch) and another on a 40 acre site in 2019. The projects will offer double-storey link houses with an indicative average pricing at below RM600,000 each, as demand for affordable properties remains strong in Iskandar Malaysia.

(The Star, 18/09/2018)


 

PROJECT WORTH RM4.3 BILLION TO BE INJECTED INTO TROPICANA

The founder and major shareholder of Tropicana Corp Bhd is injecting two plots of land in Johor Baru into the group, which will be evolved into a mixed development with a gross development value of RM4.3 billion. Tropicana has entered into a conditional share sale agreement with its major shareholder to acquire a 50.1% stake in Peluang Duta Sdn Bhd, whose 70%-owned subsidiary, T Sanctuary Development Sdn Bhd, owns two plots of leasehold land totalling 329.1 acres in Johor, for RM49.05 million. Components of the proposed development will comprise a 70% residential and 30% commercial split, which includes terraced houses, shop offices, urban affordable homes, serviced apartments and an international school. The first phase includes the development of the international school which is expected to be completed prior to 2022, thus catering to more than 2,000 students, followed by the second phase targeted to be completed before 2028, which can cater to 3,000 additional students.

(The Edge, 15/09/2018)


UEM SUNRISE IN JV WITH SINGAPORE FIRM, UNVEILING PRIVATE MARINA PROJECT

UEM Sunrise Bhd will launch the first private marina project in the southern region by the end of 2018 to attract wealthy yacht owners. The project, costing approximately RM150 million, is a joint-venture between UEM Sunrise (holds 40% equity) and Singapore’s SUTL Enterprise Ltd (holds 60% equity), who are leading developers, operators and consultants of integrated marinas. The project is slated for completion June 2020 and will provide components such as berth facilities for mega yachts, a club house, serviced apartments and restaurants.

(The Star, 18/09/2018)


 

SERVICES SECTOR HAS OVERTAKEN MANUFACTURING SECTOR

The services sector has overtaken manufacturing as the top contributor to the state’s Gross Domestic Product. The service industry accounted for 49% of the state’s economy compared with 46% stemming from manufacturing. The manufacturing industry has been in the lead for about 30 to 40 years, but there is now an evident shift in the state’s economy. Within the service industry in Penang, although one of the most important sectors is tourism, the manufacturing industry is seen as being equally important.

(The Star, 18/09/2018)


 

PENANG STRUCTURE PLAN 2030 DRAFT NOW ON DISPLAY

The Penang state government has put a draft of the Penang Structure Plan 2030 (PSP 2030) on public display for two months commencing September 19, 2018. The draft plan is being displayed at both Level Three in Komtar on Penang Island and the Seberang Perai Municipal Council (MPSP) on the mainland. The PSP 2030 is an update of the PSP 2020, which was gazetted in 2007, and serves to determine the type of development projects allowed in Penang and to outline development plans up until 2030.

(The Edge, 19/09/2018)


 

AT-GRADE TRAIN SYSTEM NOT SUITABLE FOR FLOOD PRONE PENANG

The At-grade train and tram system has been deemed not suitable for flood prone Penang. Floods in the state especially on the island are bound to occur due to climate change and flood waters could potentially damage the tram system, therefore disrupting its services. Trams run by electronic systems which are usually installed at the base of the tracks, which would be exposed during floods causing short circuits and damage.

(NST, 15/09/2018)


PENANG CONFIDENT OF MEETING AFFORDABLE HOMES TARGET BY 2022

The state government of Penang is optimistic in meeting its target of providing 75,000 affordable homes by 2022. The state had pledged (during the 14th General Election) to build 75,000 affordable homes in Penang and has already surpassed this number. Thus far, 28,915 low-cost, low medium-cost and various types of affordable homes have been built in Penang since 2008. A further 22,065 units of such housing are in various stages of being built and 32,212 additional units have been approved to be built. This brings the grand total to over 80,000 units to date.

(The Edge, 20/09/2018)


YFG SECURES RM30 MILLION CONTRACT

YFG Bhd has received a construction contract in Penang worth RM30 million from Atta Global Group Bhd’s subsidiary, Sungguh Gemilang Development Sdn Bhd. YFG’s subsidiary, YFG Engineering Sdn Bhd, has accepted a letter of award from Sungguh Gemilang, for contract works entailing the proposed construction of 112 units within a 14-storey apartment building and 8 units of three-storey terraced houses in Butterworth. The project involves construction works and infrastructure and landscaping works of the proposed development, which is expected to commence on October 1, 2018 and is to be completed in 24 months.

(The Star & The Sun, 19/09/2018)


VIZIONE SECURES RM90 MILLION JOB TO BUILD SUBMARINE PIPELINES IN PENANG

Vizione Holdings Bhd has secured a RM89.9 million contract from PBA Holdings Bhd to build submarine pipelines from Butterworth to the Macallum area on Penang Island. Vizione’s wholly owned subsidiary, Wira Syukur (M) Sdn Bhd, has accepted the Letter of Award from PBA’s wholly-owned subsidiary, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP), to undertake works that span 21 months, in which PBAPP will construct new water supply pipelines from the Sungai Dua Water Treatment Plant on the mainland towards the island.

(The Edge, The Star & The Sun, 19/09/2018)


IDEAL JACOBS WINS RM71 MILLION CONTRACT TO BUILD HOUSES FOR CIVIL SERVANTS IN SABAH

Ideal Jacobs (M) Corp Bhd has won an RM71 million contract to build 301 single-storey link houses in Sabah under the 1Malaysia Civil Servants Housing Programme (PP1AM). Widad, which is involved in construction and integrated facilities management activities, will undertake the project in Kampung Melinsung, Beringgis, Papar in Kota Kinabalu, for 24 months from the date of possession of the site.

(The Edge, The Star & The Sun, 19/09/2018)


 

GAMUDA CONFIRMS JV SUBMITTED HIGHEST BID FOR SINGAPORE LAND

Gamuda Bhd confirmed that the tender submitted by its wholly owned subsidiary, Gamuda (Singapore) Pte Ltd, jointly with Evia Real Estate Pte Ltd for a 12.7 acre land parcel at the Anchorvale Crescent site in Singapore, has emerged as the highest bid at S$318.89 million (RM963 million). The land has been earmarked for a planned executive condominium development.

(The Edge, NST, The Star & The Sun, 19/09/2018)


 

SP SETIA READY TO INTRODUCE DAINTREE RESIDENCE IN SINGAPORE

SP Setia Bhd Setia is prepared to introduce Daintree Residence, its third residential condominium project in Singapore. It is situated at Toh Tuck Road in the serene Bukit Timah region, which is home to premium schools, popular entertainment hubs, vibrant markets and lush parks. Sitting on a land area of 201,510 sq. ft., Daintree Residence is a five-storey development with 327 “exclusive” apartments.

(NST, 21/09/2018)


RICS

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Jones Lang Wootton