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KL’S LOWER PLOT RATIOS MAY DRIVE LAND PRICES DOWN

The lower plot ratios for property developments under the newly-gazetted Kuala Lumpur City Plan 2020 (KLCP 2020) will likely drive down prices of development land in the capital as project densities and consequent profitability are reduced.

(The Edge Property, 16/02/2019)


PPR TENANTS CAN USE RENTAL PAYMENT SLIPS AS SUPPORTING DOCUMENTS TO BUY HOUSE

Tenants of the People’s Housing Project (PPR) units who have good rental payment records can use their payment slips as supporting documents to potentially purchase a house for themselves. This is one of the methods adopted by the Malaysian Government to enable the B40 (low-income) group to own a house.

(The Edge Property, 16/02/2019)


PPJ LAUNCHES ONLINE SYSTEMS FOR DEVELOPMENT, BUSINESSES

Putrajaya Corporation’s (PPj) new One Stop Centre (OSC) 3.0 Monitoring System for development plan submission has shortened its process that previously took several months, to merely two weeks. The system receives, records and monitors all applications for development plan submissions, right up to the issuance of the Certificate of Completion and Compliance (CCC).

(The Star, 16/02/2019)


DEVELOPER’S PARTICIPATION CRUCIAL TO ACHIEVE ONE MILLION AFFORDABLE HOUSING TARGET

The Malaysian Government has urged the private sector to give back to society by working alongside the government to build more affordable homes for Malaysians. To achieve the target of efficiently building one million affordable homes in 10 years, the government will look at potential locations for affordable housing and would work with developers to build houses of different price ranges for homebuyers.

(The Edge Financial, NST & The Sun, 18/02/2019)


LAUNCH OF DASAR KOMUNITI NEGARA

More than 5,000 people witnessed the official launch of Dasar Komuniti Negara (DKN), which is also known as the National Community Policy. DKN is an initiative under the National Housing Policy (2.0) to improve the lives of PPR (Program Perumahan Rakyat) residents. It is formulated by the Ministry of Housing and Local Government (KPKT) and supported by the Subang Jaya Municipal Council and EdgeProp.my. One of the objectives of DKN is to improve the living environment of the people, with a particular emphasis on the B40 group.

(The Edge Financial, NST & The Sun, 18/02/2019)


LENDLEASE SEEKS MORE PROJECTS

Australian-listed Lendlease, which is participating in a RM9 billion mixed integrated development at the Tun Razak Exchange (TRX) project in Kuala Lumpur, is in talks with several developers to jointly develop other large-scale projects in the country. The plan is for Lendlease to secure new projects which will be of reasonable scale and to continue growing the business in Malaysia.

(The Star, 18/02/2019)


TM INTENDS TO DISPOSE OF TWO OFFICE TOWERS ADJACENT TO ITS HQ

Telekom Malaysia Bhd (TM) intends to dispose of the 20-storey TM Annex 1 Tower and 33-storey TM Annex 2 Tower that are adjacent to its Menara TM headquarters on Jalan Pantai Baharu, Kuala Lumpur. Both properties have a leasehold tenure, with TM Annex 1 having a Net Lettable Area (NLA) of 188,122 sq. ft. and TM Annex 2 at an NLA of 280,650 sq. ft.

(The Edge Property, 16/02/2019)


SEVEN PLOTS TOTALLING RM2.88 BILLION IN TRX SOLD SO FAR

To date, seven plots of land in TRX totalling RM2.88 billion have been sold. With an estimated gross development value of RM40 billion, the Tun Razak Exchange (TRX) development will have circa 30 buildings located on 70 acres of prime land in Kuala Lumpur. The entire TRX project is slated for completion by 2024.

(The Sun, 18/02/2019)


SLOW GOING FOR CYBERJAYA CITY CENTRE

The RM10 billion “Cyberjaya City Centre” (CCC) seems to be exhibiting slow progress since the change in the federal government. The joint development project between Malaysian Resources Corp Bhd (MRCB) and Cyberview Sdn Bhd has undergone some piling works, but the project has yet to experience major progress. Despite the delays, MRCB stressed that the CCC project is still ongoing, but MRCB’s focus will now shift towards its other core transit-oriented development projects including Penang Sentral in Penang, Kwasa Sentral in Sungai Buloh and KL Sports City in Bukit Jalil. These locations have very strong rail transport and road connectivity compared with Cyberjaya.

(The Sun, 18/02/2019)


AIRBNB SAYS NO SUITABLE FORMS AVAILABLE NOW FOR REGISTRATION OF HOST PROPERTIES

There are currently no registration forms for Airbnb hosts to register their properties with municipal authorities, despite recent amendments being made to the Tourism Industry Act to extend registration requirements for all homes. Registration processes are currently being updated to reflect this expansion. Once the Ministry of Tourism, Arts and Culture’s new registration process is in place, Airbnb will actively work towards informing hosts of the registration requirements.

(The Edge Property, 16/02/2019 & The Star, 18/02/2019)


MHC TO CLOSE 13 DIALYSIS CENTRES

Thirteen centres operated by the Mawar Haemodialysis Centre (MHC) nationwide will have to shut down following the Health Ministry’s decision to close its headquarters in Seremban, as operations of the 13 centres were funded by the parent facility. Apart from its six centres in Negri Sembilan, its other facilities were in Selangor, Kuala Lumpur, Johor, Sabah and Sarawak. Despite the closure of the MHC headquarters, the MHC would still be allowed to transfer the licences of the 13 centres to other non-profit bodies to ensure that patients would continue to receive financial subsidies.

(The Star, 16/02/2019)


JPPH EXPECTS PROPERTY MARKET TO IMPROVE GRADUALLY FROM 2019

The Valuation and Property Services Department (JPPH) expects the Malaysian property market to remain resilient in 1H19, following a gradual improvement in market activity. In 2018, the residential sub-sector had continued to lead the overall market, with a contribution of 63.4% in volume and 53.7% in value. Residential properties in established areas with efficient connectivity continued to experience capital increases. However, the occurrence of “overhanging” and unsold completed residential properties significantly increased in certain areas, which mostly involved high-rise residential units. Meanwhile, the commercial sub-sector’s overall market activity recorded a slight improvement in 2018. The occupancy rates of both purpose-built offices and shopping complexes were encouraging, with most states attaining rates of above 80%. The industrial sub-sector also showed a substantial increase in value in line with the sentiment of “Industrial Revolution 4.0”.

(The Edge Property, 16/02/2019)


ROBOTS AT SERVICED APARTMENTS

Eco World Development Group Bhd (EcoWorld Malaysia) is set to introduce the country’s first robot guest registration and food delivery system in 3Q19 at its “Eco Nest” serviced apartments. In order to implement the technology, EcoWorld had signed a memorandum of understanding with Dun-Qian Intelligent Hotel Management Co. Ltd of Taiwan.

(The Sun & The Star, 18/02/2019)


CO-WORKING SPACE OPENS DOORS IN PENANG

Common Ground is looking to further expand within Malaysia with the opening of its co-working space in Penang. The new venue at Moulmein Rise Shoppes, Pulau Tikus, is its first one beyond Kuala Lumpur, therefore bringing its total number of outlets to-date to 14. Located on the second floor of Moulmein Rise Shoppes, the 18,000 sq. ft. space would accommodate over 250 entrepreneurs at any given time and would propel the growth of Small and Medium Enterprises (SMEs) in Penang.

(The Star, 18/02/2019)


IKEA TO OPEN FIRST OUTLET IN NORTHERN PART OF PENINSULA ON MARCH 14, 2019

Ikea (Swedish furniture brand) will open its first outlet in the northern region of Peninsular Malaysia in Batu Kawan, Penang, on March 14, 2019. The new outlet has circa 469,306 sq. ft. of retail space, which would feature over 8,000 products. The store will also have 49 showrooms, restaurants and a bakery.

(The Edge Property, 16/02/2019)


DROP IN OCCUPANCY RATES: PENANG HOTELIERS TOLD TO BUCK UP

Penang hotels experienced a slight decline in occupancy rates in the first nine months of 2018 when 60.4% was recorded against 63.3% achieved in 2017. The Ministry of Tourism advises industry players to raise the quality of their services and tourism products. Based on 2018 records, there are 242 hotels in Penang offering 20,306 rooms.

(The Edge Property, 16/02/2019)


SELANGOR FORECAST: RM14 BILLION WORTH OF INVESTMENTS IN 2018

As of September 2018, Selangor’s total investments amounted to RM8 billion and the Malaysian Investment Development Authority is projecting a total of RM14 billion in 2018, greatly surpassing its earlier target of RM7 billion. Selangor registered total investments of RM5.29 billion in 2017. The Selangor State Government is focusing on the “clusterisation” of specific industries to attract more investments into the state. For this, the stretch between Petaling Jaya and Port Klang is earmarked as a logistics industry hub, while Kuala Selangor to Sabak Bernam will function as a tourism hub. Hulu Langat and Sepang will be the education hub and the Sepang / Subang area will become an aerospace hub.

(The Edge Financial, 19/02/2019)


FALLING COMMODITY PRICES, CONSTRUCTION JOBS SLOW WAGE GROWTH

Malaysia’s inaugural National Wage Index shows that total wages grew 9.2% in Malaysia between September 2016 and June 2018. However, the pace of this growth has been on a downward trend y-o-y, partly due to falling commodity prices and a decline in construction projects.

(The Edge Financial, 20/02/2019)


AGE-FRIENDLY CITY BEING PLANNED

The Ministry of Women, Family and Community Development, along with the United Nations Development Programme, is in the midst of planning an age-friendly city to encourage public participation in local planning, with the aim of creating an environment that is child, elderly and disabled friendly. The ministry is also considering a proposal to work with the United Nations Children’s Fund towards realising the concept of a child-friendly city in Malaysia.

(The Edge Property, 18/02/2019 & The Edge Financial, 19/02/2019)


ONE MILLION HOMES POSSIBLE, NOT A POPULIST PROMISE

The Malaysian Government is committed towards building one million affordable and low-cost houses within 10 years. The Ministry of Housing and Local Government presented location proposals nationwide to build 100,000 affordable and low-cost houses in 2019, during a meeting with the National Affordable Housing Council. There are proposals for several states, which include Pahang and Penang.

(The Edge Financial, 20/02/2019)


QUICKER APPROVALS FOR DEVELOPERS WHO USE STANDARDISED IBS MODELS

The Ministry of Housing and Local Government and the Ministry of Works have come up with several models for Industrialised Building System homes which will result in quicker project approvals, if they are used by developers in constructing affordable homes. This can be applied to developments of homes within the “RM300,000 and below” price range.

(The Edge Financial, 20/02/2019)


MALINDO AIR TO LAUNCH FIRST DESTINATION IN JAPAN IN MARCH 2019

Malindo Airways Sdn Bhd will introduce its first destination in Japan on March 23, 2019, operating thrice weekly flights between Kuala Lumpur and Hokkaido.

(The Edge Financial, 19/02/2019)


KVDT PHASE TWO DEAL BACK ON TRACK

Phase Two of the Klang Valley Double Track (KVDT) rail upgrade is back on track at an estimated cost of RM3.8 billion. The “Phase Two” rehabilitation project involves 110km of railway tracks between Kuala Lumpur station and Klang, Salak South and Seremban and Simpang Port Klang and Port Klang plus infrastructure and system upgrades, and is scheduled to be completed in seven years.

(NST, 20/02/2019)


MALAYSIA NEARS DEAL WITH CHINA TO REVIVE ECRL PROJECT

Malaysia is in talks with China to revive the East Coast Rail Link (ECRL) high-speed rail project. China is willing to reduce the RM81 billion cost for the East Coast Rail Link project and talks are in its final stages.

(The Edge Financial & NST, 20/02/2019)


PESONA METRO SECURES RM409 MILLION JOB BUT TERMINATES ANOTHER WORTH RM371 MILLION

Pesona Metro Holdings Bhd has secured a new contract worth RM408.8 million from Malaysian Resources Corp Bhd (MRCB), for superstructure works of a mixed development in Seksyen 98, Kuala Lumpur. Slated to be completed within 30.5 months commencing February 18, 2019, the contract comprises the completion of construction works on three apartment blocks comprising 734 units, 10 floors of parking (including the basement) and six retail units. However, the company’s Pembinaan Kaleigh-Pesona Metro joint venture (JV) worth RM371.42 million with Konsortium Kontraktor Sdn Bhd-Pembinaan Kaliegh JV (the main contractor that awarded the project) has been mutually terminated. This was in relation to the civil works for Section 6 of the Kapar Interchange to Asam Jawa Interchange of the West Coast Expressway.

(The Edge Financial, & The Sun, 20/02/2019)


SUNWAY CONSTRUCTION SECURES RM781 MILLION JOB FROM TNB

Sunway Construction Sdn Bhd has been awarded a RM781.3 million contract from Tenaga Nasional Bhd (TNB) to construct the TNB headquarters campus development (Phase II) on Jalan Bangsar in Kuala Lumpur.

(The Edge Financial, The Star, NST & The Sun, 20/02/2019)


BOUSTEAD TO DISPOSE OF ROYALE CHULAN BUKIT BINTANG

Boustead Holdings Bhd is disposing of the Royale Chulan Bukit Bintang Hotel in Kuala Lumpur to Singapore’s Hotel Royal Ltd, for RM197 million. Royale Chulan Bukit Bintang is a four-star hotel with 400 rooms and is one of eight hotels under Boustead’s hotel portfolio. There are currently two Royale Chulan hotels in Kuala Lumpur (Royale Chulan Bukit Bintang and Royale Chulan Kuala Lumpur), which are both within close proximity to one another and are in direct competition. Therefore, Boustead has decided to consolidate and focus on one hotel, which is the Royale Chulan Kuala Lumpur, to better capture the Kuala Lumpur market.

(The Edge Financial, The Star, NST & The Sun, 20/02/2019)


RM50.6 MILLION ALLOCATED FOR MULTI-STOREY CARPARK AT RAYA PERMAI PPR

Kuala Lumpur City Hall (DBKL) has allocated circa RM50.6 million to build a multi-storey carpark at the Raya Permai People’s Housing Project (PPR). The nine-storey building provides 1,002 parking spaces to solve and reduce parking congestion in the densely populated area. Besides the carpark, the building also features a multi-purpose hall, a badminton court, a convenience store, 14 hawker stalls, a prayer room and toilet facilities for the local community.

(The Edge Property, 18/02/2019 & The Star, 19/02/2019)


SEBERANG PERAI TO GET CITY STATUS BY MID 2019

The Penang State Government is working on upgrading the Seberang Prai Municipal Council (MPSP) to a city council by June 2019. The MPSP has authority over 751 sq. km., making it the largest municipality in Malaysia. Previously, Seberang Prai was made up of four separate districts (Butterworth town, the Province Wellesley North, Central and South Rural Districts). The boards of the three districts were merged in the 1970s to form the MPSP.

(The Sun, 20/02/2019)


BUKIT KUKUS LANDSLIDE: PENANG GOVERNMENT AWAITS DOSH REPORT

The Penang State Government is still awaiting the full report from the Department of Occupational Safety and Health before taking action towards parties responsible for the Bukit Kukus paired road landslide incident in October 2018. Scheduled to be ready by May 2020, the paired road project aims will connect Paya Terubong and Relau.

(The Edge Property, 18/02/2019)


UNCERTAINTY HANGS OVER PENANG TUNNEL CONSTRUCTION

There is still no indication as to when construction works will commence on the 7.2 km Penang Undersea Tunnel project, between Gurney Drive on Penang Island and the mainland, as the contractor is still waiting for the relevant land to be dredged. Vertice is part of Consortium Zenith Construction Sdn Bhd, which has been awarded a RM6.34 billion integrated infrastructure project that includes a tunnel and construction of three major roads and the development of Seri Tanjung Penang. The land situated on Gurney Drive’s foreshore, is currently being reclaimed by Eastern & Oriental Bhd (E&O). The state government can only schedule construction works once the land has been prepped for construction. Based on conversations between E&O and Vertice prior to February 2019, the land should be ready for handover to the state government in June or July 2019. Meanwhile, the state government has not indicated whether the overall undersea tunnel project’s feasibility study has been concluded or when work can start.

(The Edge Financial, 19/02/2019)


PENANG SOUTH RECLAMATION PROJECT TO BE PRESENTED IN APRIL 2019

The Penang South Reclamation (PSR) project will be presented at the National Physical Plan Council (MPFN) in April 2019. The mega project, which will involve the “creation” of three islands totalling 4,500 acres, has yet to be tabled at the MPFN but the Penang state authorities have already complied with all the necessary requirements and have fulfilled various studies for the project.

(The Edge Property, 19/02/2019)


MORE TOURISTS HEADING TO SABAH

In 2018, Sabah received the highest tourism receipts in its history at RM8.342 billion and a record-high 3.879 million tourist arrivals. Figures from January to December 2018 exhibited that total arrivals grew by 5.3% and tourism receipts increased by 6.6% compared with 2017. International arrivals recorded a double-digit increase of 10.2% while domestic arrivals increased by 2.8%. China surpassed the half a million mark with a total of 593,623 visitors to Sabah in 2018. The second highest source of arrivals was still South Korea with an increase of 8.5% or a total of 337,100 visitors and the Singapore market grew by 9.1% in 2018.

(The Star, 20/02/2019)


VOLKSWAGEN OPENS 3S CENTRE IN SABAH

Volkswagen Passenger Cars Malaysia and Kota Bumi Sdn Bhd has recently launched the Volkswagen Kota Bumi 3S (sales, service and spare parts) centre in Sabah. It is the only authorised Volkswagen dealership in Sabah, and its opening brings the total number of Volkswagen 3S centres nationwide to 18.

(NST, 19/02/2019)


FEDERAL GOVERNMENT APPROVES RM10.5 MILLION FOR SARAWAK NCR LAND SURVEY

The Federal Government recently approved an allocation of RM10.5 million to the Sarawak State Government (under the NCR Land Measurement Programme) for the Native Customary Rights (NCR) land survey. Within the Sri Aman Division, merely 88,471 acres in 63 areas has been gazetted under Section 6 of the Sarawak Land Code. Out of the total area, 2,806 individual lots have been measured and will be issued with a letter of ownership under Section 18 of the Sarawak Land Code.

(The Edge Property, 19/02/2019)


SIX THRUSTS TO BOOST DEVELOPMENT IN FEDERAL TERRITORIES

The Federal Territories Ministry will work at meeting the needs of residents through six main thrusts in line with the new federal territories’ theme of ‘Wilayah Peduli, Harapan Dipenuhi’. The six thrusts include “cleanliness, public safety, efficient transportation, a sustainable socio-economy, green surroundings, and an inclusive community.”

(The Edge Property, 20/02/2019)


HOUSING MINISTRY LAUNCHES SCHEME TO AID FIRST-TIME HOMEBUYERS

The Ministry of Housing and Local Government has launched the “FundMyHome + DepositKu” scheme, which seeks to further ease the burden for first-time homebuyers who purchase property via the “FundMyHome” platform. Under FundMyHome, buyers can own a home without the need for a mortgage and monthly repayments, by paying 20% of the purchase price, whereas the 80% balance is contributed by participating institutions that share the returns from changes in the future value of the home. Under DepositKu, first-time homebuyers can opt for a loan of up to RM30,000, which is to be repaid after five years, thereby accounting for part of the 20% payment to own a home under “FundMyHome”. The scheme is open to first-time Malaysian homebuyers who are purchasing a home priced RM500,000 and below from the FundMyHome platform, with approvals subject to final vetting by the housing ministry.

(The Edge Financial, 21/02/2019)


SOME PLANNED PR1MA PROJECTS MAY BE SCRAPPED

According to the Ministry of Housing and Local Government, the 1Malaysia’s People Housing Programme (PR1MA) is currently being reviewed and some of its proposed projects which are deemed unviable may not go ahead. The PR1MA homes that have been completed will still be for sale and the ones currently under construction will all be potentially completed. However, the government is freezing projects that have yet to commence construction works as the government is assessing their viability. Works on some PR1MA projects have also been halted as some appear unviable due to unsuitable locations.

(The Edge Financial, 21/02/2019)


CLOSURE OF JALAN TAR: FINAL DECISION BEFORE MARCH 15, 2019

The potential decision to be made regarding the planned partial closure of Jalan Tuanku Abdul Rahman (TAR), Kuala Lumpur, will be made known prior to March 15, 2019. The decision will be based on feedback from stakeholders, especially hawkers and traders operating from Jalan Esfahan to Jalan Melayu, which is the stretch that will be affected by the closure.

(The Edge Property, 20/02/2019)


AHMAD ZAKI AWARDS RM150.5 MILLION CONSTRUCTION JOB

Ahmad Zaki Sdn Bhd has secured a RM150.5 million contract from Rantau Properties Sdn Bhd for a project in Kemaman, Terengganu. The project includes the proposed refurbishment and upgrading works to the existing Petronas office complex (Block A) and Kompleks Operasi Petronas 1 (Block B), the proposed construction and completion of a new annex building (Block C), infrastructure works and landscaping works. Contract works will be completed within 26 months from the date of site possession on March 1, 2019.

(The Edge Financial, & The Sun, 21/02/2019)


JONES LANG WOOTTON: TRX OFFICE SPACE TO “TAKE A LONG TIME TO ACHIEVE FULL OCCUPANCY”

The Tun Razak Exchange (TRX) project in Kuala Lumpur will take a long time to achieve full occupancy of its 2.65 million sq ft office space, real estate consultancy firm Jones Lang Wootton said, noting that Tower 2 of the Petronas Twin Towers took about a decade before seeing complete take up. Citing Jones Lang Wootton’s experience in marketing the Petronas Twin Towers, the firm’s executive director Malathi Thevendran said it took about 10 years before Tower 2 saw full occupancy.

“Petronas Twin Towers only reached full occupancy for the second tower with total space of 1.25 million sq ft after 10 years. The first tower was already pre-committed to Petronas but the balance of 1.25 million took a decade to reach 90% take up in 2007, 2008,” she said, in response to a question from the audience on what she thought of TRX. On the TRX, Malathi questioned whether there is a need for another huge commercial development as there was already ample commercial space within the Kuala Lumpur City Centre when the TRX was planned years ago.

Malathi noted the pre-commitment by HSBC, Prudential and Affin Bank to take up their respective portions of the TRX development for their headquarters, which she said was fine. She, however, said only 15% of TRX’s office space has been committed so far. “There is 2.65 million sq ft of space and they say it’s 15% committed. They have been marketing for two to three years, so what are the chances of it going up? My take on it is that it will take a long time. “The question is which other companies are they going to bring in? Pre-commitment is something that needs to be looked at. If it’s left to the open market, I don’t think people would be rushing to occupy the space,” she said.

(The Edge Property, 21/02/2019)


JONES LANG WOOTTON: HERE ARE SIX WAYS TO IMPROVE DEMAND FOR KLANG VALLEY OFFICES

There are six ways to improve demand drivers for purpose-built office spaces in the Klang Valley, said Jones Lang Wootton executive director and head of research and consultancy Malathi Thevendran. According to her, the six ways: are undertaking independent market research and valuation, identifying shortfalls and opportunities, thinking of ways to maximise potential market share, benchmarking/positioning branding incentives, looking out for infrastructure opportunities and having planning control.

“We need to look at the type of quality of office buildings that we have. Is it the kind of [building] qualifications which they [the end occupiers] want. Developers think they know what they want and they build those buildings but when you ask the end occupier [to come into the office space], the office buildings do not have what the end occupier wants. You need to put all the needs [of the user] into a matrix,” said Malathi to elucidate the importance of doing proper market research and studies before building offices during her presentation on “Office Market Performance and Outlook”.

Malathi recalled conducting a presentation about the Petronas Twin Towers office many years ago at a conference in Hong Kong, but was told that while the building looked iconic, it did not have very efficient floor plates to meet end-occupier requirements especially foreign multinational companies. “We also need to observe the changing occupier trend, of the ways offices are being used today as many millennials work on flexible hours, where they can be working from home and even cafés. We don’t need that kind of [large] space anymore [to fit everyone in the office] as there are practices like “hot desking”, she explained. She also pointed out the importance of maintenance and management in office buildings which is a crucial aspect in elevating the office value and to draw users to use the space.

“Are developers today spending money and time to refurbish offices? Some of these buildings are “sick” buildings. People will find that sitting at home or a café will [allow you to] get more things done [instead of working in the office],” Malathi added. She also advised building owners or developers who want to attract tenants into their offices to keep a lookout as multinational firms and regional headquarters offices are currently moving around and they can use this chance to draw these tenants into their office buildings.

Based on data from Jones Lang Wotton, purpose-built offices in the KL City area (Golden Triangle, Central Business District, Damansara Heights, Bangsar/Pantai and decentralised areas) have an occupancy rate of 79% for the 80.5 sq ft million sq ft of existing supply in the market, while offices outside of the KL City area (Petaling Jaya, Subang Jaya, Shah Alam, Klang  Town, Cyberjaya, Putrajaya and other areas) have an occupancy rate of 69% for the 41.8 sq ft million of existing supply of space in the market for 2018. As at 2018, only 75% of the 122.3 million sq ft of purpose-built offices in the Klang Valley are occupied. Malathi was presenting her topic at the 12th Malaysian Property Summit on the Property Market Outlook for 2019 organised by the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS).

(The Edge Property, 21/02/2019)


KKH PAVILION, IBN CORP TO REDEVELOP HOTEL FORTUNA

KKH Pavilion Development Sdn Bhd (landowner) and IBN Corp Ltd are redeveloping “Hotel Fortuna” at Bukit Bintang into the fifth tallest building in the city centre. With a gross development value of RM1.5 billion, the building will be built over three years at a cost of RM650 million. The 68-storey building will comprise serviced apartments and a 5-star hotel with a total built-up area of 730,062 sq. ft. IBN Bukit Bintang’s freehold residential units are priced above RM2,000 per sq. ft. and the developer expects to achieve a “reasonable sales rate” predominantly stemming from local buyers (70%) and the remaining being from the Middle East, China and India.

(NST & The Sun, 21/02/2019)


TRXC HAS RECEIVED 10% OF THE RM2.8 BILLION BY MOF

TRX City Sdn Bhd (TRXC) has received 10% of the RM2.8 billion allocation towards the Tun Razak Exchange (TRX) project by the Ministry of Finance (MoF). Infrastructure for the first phase of the TRX will be completed by 3Q19. Circa 70% of the project has been sold, but the remaining 30% is being retained (to be sold at a later date) in order to potentially reap greater gains in the future. Completion of the overall project and infrastructural works are “not being rushed” as construction logistics are to be further deliberated and concurrently attended to.

(The Edge Financial, NST & The Star, 22/02/2019)


MALAYSIAN GOAL TO BE NO. 1 AEROSPACE NATION IN SE-ASIA

With a targeted annual revenue of RM55.2 billion, Malaysia is eyeing to become Southeast Asia’s leading aerospace nation by 2030, due to impressive evolution and enormous future potential of the industry. The aim is to shift Malaysia’s economy from being labour intensive in nature, towards encouraging high value added, knowledge and innovation-based economic activities, with a focus on the services and manufacturing sectors. In 2017, the Malaysian aerospace industry recorded revenue of RM13.5 billion, with aerospace manufacturing contributing 48% to the total.

(NST, 22/02/2019)


BIO OSMO EYES LANGKAWI FOR EXPANSION

Bio Osmo Bhd is eyeing Langkawi, Penang and Kota Kinabalu as part of the expansion plan for its current core business of hospitality. The company will change its name to Impiana Hotels Bhd in April 2019. On January 31, 2019, Bio Osmo signed six share sale agreements to acquire hotels under the Impiana brand in Kuala Lumpur, Ipoh and Cherating, commercial land in Pangkor and Impiana’s hotel management company, for RM425.90 million.

(NST, 22/02/2019)


LEGOLAND MALAYSIA EYES INDIA AND MIDDLE EAST TO EXPAND VISITOR BASE

Legoland Malaysia Resort is looking to expand its visitors’ base and is targeting India and the Middle East as potential growth markets due to the “optimistic number” of tourist arrivals entering into Malaysia, from those countries. In order to spruce up theme park attractions, Legoland Malaysia will be opening “SEA LIFE Malaysia”, which is an interactive aquarium featuring 120 marine species.

(The Star, 21/02/2019)


STATES CAN MAKE THEIR OWN SOCIAL IMPACT ASSESSMENT OF PROJECTS

According to the Department of Town and Country Planning (PLANMalaysia), Malaysian State Governments can make their own Social Impact Assessments (SIA) of projects involving areas that do not exceed 100 acres. This was in line with the Class 3 SIA provision under the department, which allowed state governments to carry out the SIA via the establishment of a state-level SIA Committee.

(The Edge Property, 20/02/2019)


CONSTRUCTION OF AYER ITAM – LCE EXPRESSWAY BYPASS TO START ON AUGUST 31, 2019

Slated to commence on August 31, 2019, construction of the 5.7km Ayer Itam – Tun Dr Lim Chong Eu (LCE) Expressway bypass is part of the RM46 billion Penang Transport Master Plan (PTMP). Additionally, the Penang State Government has approved one of the packages under the PTMP to be carried out by its developer (SRS Consortium) within 1H19.

(The Edge Property, 21/02/2019)


RICS

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Jones Lang Wootton