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MALAYSIA’S EXPORTS, IMPORTS DECLINE IN FEBRUARY 2019, TRADE SURPLUS SURGES TO RM11.1 BILLION

In February 2019 Malaysia’s exports recorded a decrease of 5.3% year-on-year (y-o-y) to RM66.6 billion, the lowest value since August 2016. Total trade in February 2019 declined 7.2% to RM122.1 billion from February 2018. The trade surplus was RM11.1 billion, where it surged 22.7% or RM2.0 billion compared with February 2018. The decrease in exports was attributed to lower exports to Hong Kong (-RM636.6 million), Indonesia (-RM632.9 million), US (-RM616.0 million) and Vietnam (-RM532.8 million). The main products which attributed to the decrease in exports in February 2019 were refined petroleum products (-RM1.6 billion), palm oil and palm oil-based products (-RM730.1 million) and crude petroleum (-RM530.2 million). However, increases were recorded for electrical and electronic products (+RM1.2 billion) and liquefied natural gas (+RM247.7 million). Imports also declined 9.4% y-o-y to RM55.5 billion, marking the lowest value since May 2016. The decrease in imports was attributed to lower imports mainly from China (-RM3.4 billion), Singapore (-RM1.2 billion) and the European Union (-RM1.1 billion).

(The Sun, 05/04/2019)


 

GOVERNMENT ALLOCATES RM13.2 BILLION TO SIX LESS DEVELOPED STATES

The government has allocated RM13.2 billion for 2019, to less developed states namely Sabah, Sarawak, Kelantan, Terengganu, Kedah and Perlis under the Fourth Rolling Plan of the 11th Malaysia Plan (RMK-11), in an effort to close the economic gap between states. The allocation was a 10.6% increase compared to RM11.9 billion allocated in 2018, making up 24.1% of the total allocation for development in Malaysia. The 2019 allocation will be used to implement 349 new projects and 1,696 connecting projects via various government ministries.

(The Edge, 05/04/2019)


MPKJ MAY BUILD PARK-AND-RIDE FACILITIES ON NEW FREE BUS ROUTES

Park-and-ride facilities may be built along the new Kajang-Putrajaya route of the free Smart Selangor bus to encourage more motorists to take the bus. Two new routes were launched on March 1, 2019, which include KJ 04 and KJ 05. Both routes begin from Kompleks Hentian Kajang, with one ending in Dataran Gemilang, Putrajaya, and the other in Bandar Baru Bangi.

(The Star, 30/03/2019)


TRANSPORT MINISTRY HOPES TO INCREASE KTM RIDERSHIP WITH DISCOUNT CARD

The Transport Ministry is targeting an increase in ridership on the KTM Komuter service from 90,000 a day to 108,000, with the introduction of the KTM Xtra20 discount card. An additional 20% of passenger ridership was targeted for the year 2020, which is projected to be as many as 130,000 riders a day. The government has allocated RM34 million for the Xtra20 discount card via the Railway Assets Corporation, to attract more users.

(The Sun, 01/04/2019)


 

VERTICE AND MAIN SUB-CON MUTUALLY TERMINATE RM218.5 MILLION CONTRACT

Vertice Bhd (formerly Voir Holdings Bhd) and Kumpulan Liziz Sdn Bhd have mutually agreed to terminate a sub-contract for proposed upgrading works on a federal road from Gambang, Pahang, to Segamat, Johor, valued at RM218.48 million. The project was awarded to Kumpulan Liziz by Mulia Interlink Construction Sdn Bhd, acting as the main contractor for Jabatan Kerja Raya Malaysia (Malaysian Public Works Department).

 (The Edge, 30/03/2019)


 

KVDT2 PROJECT LOBBYING INTENSIFIES

The role of main contractor for the RM5.265 billion Klang Valley Double Track Phase 2 (KVDT2) project has seen lobbying intensify as the government prepares to retender the job. Three independent railway contractors are urging that the infrastructure project be divided into 10 smaller work packages, of about 20km each. The 211km KVDT2 involves the rehabilitation of two Keretapi Tanah Melayu Bhd (KTMB) railway tracks from Salak South to Seremban, and from Kuala Lumpur Sentral and Angkasapuri to Port Klang. Negotiations for the project commenced in 2016 and the Letter of Intent was issued in May 2017. DMIA had received the award for Phase 2 in 2018. Rehabilitation works for Phase 1 of the KVDT project (referred to as KVDT1) are 75% completed, with full completion slated for the end of 2020.

(The Edge, 30/03/2019)


 

WEST COAST EXPRESSWAY TO EASE TRAFFIC

The West Coast Expressway (WCE), which is being built on the west coast of Peninsular Malaysia, will be 233km long. It is being jointly developed by the Public Works Department and toll concessionaire WCE Holdings Bhd’s, West Coast Expressway Sdn Bhd (WCESB). Once completed in May 2019, WCE will connect many coastal towns, including Klang, Kuala Selangor, Teluk Intan, Sitiawan, Manjung and Hutan Melintang. WCE is also expected to boost tourism in Perak and Selangor as many “hidden” places will become more accessible to travellers.

(NST, 01/04/2019)


 

TALKS ON EAST COAST EXPRESSWAY PHASE 3 STARTED

The Works Ministry has started discussions and negotiations with the Economic Affairs Ministry and the Finance Ministry on the third phase of the East Coast Expressway. The project development period will be announced when the Ministry of Works obtains the confirmation from related central agencies on the implementation model and funds allocated. The project will span 147km across three districts in Terengganu, namely Kuala Terengganu, Setiu and Besut, as well as five Kelantan districts, which are Pasir Puteh, Bachok, Pasir Mas, Kota Bharu and Tumpat.

(The Edge, 05/04/2019)


 

SCOMI AND PRASARANA END MONORAIL JOB DISPUTE

A settlement has finally been reached between Scomi Group Bhd’s subsidiary, Scomi Transit Projects Sdn Bhd (STP), and Prasarana Malaysia Bhd with the signing of a new contract for RM303 million, ending their dispute relating to the Kuala Lumpur Monorail Fleet Expansion Project Contract back in June 3, 2011.  This project was for the completion of the upgrade of the Kuala Lumpur monorail stations and the electrical and mechanical system, the construction of a new depot, and delivery of 12 sets of new four-car trains.

(The Star & The Sun, 05/04/2019)


 

 

PNB STATES IT HAS NO PLANS TO LIST ANOTHER REIT

Permodalan Nasional Bhd (PNB) currently has no further plans to list any of its assets in the form of another Real Estate Investment Trust (REIT) on Bursa Malaysia. PNB already has one REIT listed on Bursa Malaysia that is referred to as Amanah Harta Tanah PNB (AHP). The REIT, which is managed by PNB’s wholly-owned unit, Pelaburan Hartanah Nasional Bhd (PHNB), was set up to complement PNB’s unit trust business. AHP has been listed on the Main Market of Bursa Malaysia since 1990.

(The Edge, 03/04/2019)


 

BBCC DEVELOPMENT DISPUTES ZELAN’S LATE PAYMENT CLAIM

BBCC Development Sdn Bhd, the owner of the multi-billion-ringgit Bukit Bintang City Centre (BBCC), has disputed a claim of late payment made by Zelan Bhd’s subsidiary, which involves a principal sum of RM3.34 million. According to BBCC Development, Zelan was appointed as the main contractor for the construction of the sales gallery and show units at the BBCC project site, which has been operational since March 2017. However, works that were scheduled for completion in December 2016 were delayed. In February 2019, BBCC Development received Zelan’s payment claim, which stated that it was made pursuant to the Construction Industry Payment & Adjudication Act 2012.

(The Edge, 30/03/2019)


 

KLCC STAPLED GROUP SAYS NO PLAN TO ACQUIRE NEW ASSETS

KLCCP Stapled Group Bhd does not intend to acquire new assets “for the time being as the market remains weak”. The property market environment is expected to remain challenging in 2019, although the group remains “cautiously optimistic” on its prospects for the year. KLCCP Stapled Group, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust, owns and manages offices, retail and hotel properties and has a 60% stake in the Suria KLCC retail mall. Commenting on the group’s office segment which contributed 43% of overall revenue, this remains stabilised with a 100% tenancy rate at Petronas Twin Towers, Menara ExxonMobil and Menara 3 Petronas. The retail segment, which contributes 35% to the group’s top line, currently, has a 98% tenancy at its Suria KLCC mall.

(The Edge, 04/04/2019)


 

MAH SING’S MUKIM PETALING LAND BUY DEEMED POSITIVE

Mah Sing Group Bhd has entered into a sale and purchase agreement with TC Goldyear Sdn Bhd for the proposed acquisition of 4.63 acres of freehold land in Mukim Petaling, for RM90.3 million. The land is situated in a matured area with established neighbourhoods of Old Klang Road, Sri Petaling, Bukit Jalil and Salak South. It is situated merely 800metres away from the Taman Naga Emas Mass Rapid Transit station and 1.1km from the Kajang Dispersal Link Expressway and New Pantai Expressway.

(The Star, 03/04/2019)


BUYERS SNAP UP UNIQUE WIDURI RESIDENSI

Within six hours after the Widuri Residensi launch in Serendah, Hulu Selangor, 26 of the total 154 double storey link houses were bought by first-time house buyers and second-time PKNS purchasers. Widuri Residensi is a housing development by Selangor State Development Corp (PKNS) built on a 13.42 acre site in Antara Gapi. The project offers homes with floor areas of 1,915 sq. ft. and 1,966 sq. ft. There are two variants and each unit is equipped with four bedrooms and three bathrooms. Each unit is priced from RM440,600 before rebates. PKNS is offering a 10% rebate for first-time buyers and a 12% rebate for second-time PKNS buyers. All stamp duty of the memorandum of transfer will be borne by PKNS, including legal fees for the sale and purchase agreement. The project is 85% completed and will be fully ready by September 2020.

 (NST, 04/04/2019)


 

BARIS PLACE SHOPOFFICES IN SETIA MAYURI WERE 90% BOOKED AT LAUNCH

S P Setia Bhd recently launched Baris Place shop offices at its Setia Mayuri township in Semenyih, Selangor and record a booking rate of over 90%, with buyers citing the excellent location facing Jalan Broga and it being within walking distance of the University of Nottingham as major draws. Priced from RM1 million, the 32 units of two and three storey shop-offices comprise 20’ x 80’ intermediate and 80’ x 80’ corner units.

(The Edge, 04/04/2019)


 

TIME TO INDULGE IN BUBBLE TEA AT TGV I-CITY MALL

Chatime Malaysia, the master franchiser of bubble tea brand Chatime has become the first bubble tea brand in Malaysia to establish a store within a cinema outlet. It has recently unveiled its newest outlet at TGV Cinemas at the newly opened Central i-City shopping mall in Shah Alam.

(NST, 02/04/2019)


 

SINO HUA-AN DIVERSIFIES INTO TECH AND F&B, BUYS TGIF AND TEH TARIK PLACE

In a bid to reduce its reliance on a single business, metallurgical coke manufacturer Sino Hua-An International Bhd is planning to diversify into the food and beverage and mobile app segments by acquiring two companies for a total of RM14 million cash. Sino Hua-An has signed a share purchase agreement with Chaswood Resources Sdn Bhd (CRSB), which owns TGI Friday in Malaysia and Teh Tarik Place, to acquire the entire stake in Bistromalones (PJ) Sdn Bhd for RM8 million.

(The Edge, 04/04/2019)


 

BMC MALL TO BE COMMUNITY HUB

BMC Mall aspires to become the community mall of choice in the vibrant Bandar Mahkota Cheras neighbourhood in Selangor. The two-storey mall has recently rebranded itself as an “all-in-one” shopping destination for its customers, especially young families with children. With over 700 parking bays, the bulk of the 200,004 sq. ft. mall is occupied by 60 diverse tenants across food and beverage, entertainment, beauty, wellness, fashion and specialty stores. Among its tenants are NSK Trade City hypermarket, The Kids Playground and art enrichment programme, Global Art. It also houses the Mahkota Cheras community public library and the Nucleus community hall. The mall is expecting to have “at least 100 tenants in the future.”

(The Star, 30/03/2019)


DR M-LINKED BAKERY THE LOAF HAS NEW OWNER

The Loaf, the bakery once owned by Dr Mahathir Mohamad has a new owner, construction firm Ekovest Bhd. The bakery was managed by M & M Consolidated Sdn Bhd, a joint venture between Dr Mahathir and Motoko Resources Sdn Bhd. Dr Mahathir owned a 51% stake in the company. It closed down in April 2018 after 12 years after opening its first store in Telaga Harbor, Langkawi back in 2006. It then set up another 12 outlets in KLCC, Pavilion and Sogo shopping mall in Kuala Lumpur and Empire Shopping Gallery, Subang Jaya.  Ekovest Group decided to revive the brand through wholly-owned subsidiary Duke Dining Sdn Bhd (which has bought over The Loaf’s entire interest). There are plans “to open 10 Loaf outlets by the end of 2019”. Ekovest has reopened four outlets in Langkawi, Pavilion, Sunway Pyramid and NuSentral.

(The Edge, 05/04/2019)


 

PLATINUM VICTORY UNVEILS SPORTS-THEMED RESIDENCE IN OLD KLANG ROAD

Platinum Victory Sdn Bhd unveiled its latest Platinum Arena development, a sports-themed mixed development project located in Old Klang Road with an estimated gross development value of RM421 million. The project is sited on 2.9-acres of leasehold land featuring 728 serviced apartments within two 36-storey blocks. Built-ups of the units range between 650 sq. ft. and 1,008 sq. ft., at an average price of RM620 per sq. ft. There are also 36 shop lots to provide daily conveniences for the residents. Platinum Arena’s sports-themed residence was inspired by its location being adjacent to the Sports Arena Sentosa. The two residential blocks were named Armstrong and Boris, derived as a tribute to former American cyclist Lance Armstrong and German tennis legend Boris Becker. Piling works began in early 2019 and the development is expected to be completed within three years. Slated to be officially launched in April 2019, Platinum Victory is confident that Platinum Arena’s units can be sold within six months.

(Starproperty.com.my, 02/04/2019)


OASIS OF RESPITE IN THE CITY

Cubic Botanical @ South Bangsar, a freehold project by Ancubic Capital Sdn Bhd, is expected to complete by December 2022, the two 40-storey blocks will comprise 1,161 units of serviced suites with retail units. There are four types of unit plans measuring at 518 sq. ft., 650 sq. ft., 805 sq. ft. and 900 sq. ft. respectively, with prices starting from RM380,000.

(The Star, 04/04/2019)


 

JHM BUYS FACTORY IN KEDAH TO EXPAND CAPACITY

JHM Consolidation Bhd is buying a factory in Kedah for RM16.6 million cash as part of the group’s plan to expand its production area. The group signed a sale and purchase agreement with Bernas Wirama Sdn Bhd. The acquisition will enable JHM Group to expand the production floor in order to increase its production capacity.

(The Edge, 04/04/2019)


 

SMES STILL NOT READY FOR FOURTH INDUSTRIAL REVOLUTION

Small and medium-sized enterprises (SMEs) in Malaysia are not quite ready for the fourth industrial revolution (IR4.0), which could spell trouble as the world advances further. Out of some 50,000 SMEs in the country, only 300 have signed up for the evaluation for the selection process for a complimentary readiness assessment (RA) by the International Trade and Industry Ministry (Miti). Miti has a budget of RM15 million to conduct the RA for 500 qualified SMEs.

(The Star, 05/04/2019)


HOTEL BUSINESS SET TO TURN BIO OSMO’S FORTUNES AROUND

Bio Osmo Bhd plans to grow its hospitality businesses to be renamed as Impiana Hotels Bhd upon the completion of its acquisition of Impiana Group’s hotel assets, Bio Osmo currently has two principal business divisions related to the hotel business. One deals with the ownership and operation of hotels and resorts, while the second provides professional management services to hotels and resorts, and consulting and technical services to landowners for the development of hotels and resorts. The group expects the top contributor to the company’s earnings this year to be Impiana Cherating, followed by Impiana Hotels and Resorts Management (the division that manages the company’s local and foreign hotels) and Impiana Pangkor.

The redevelopment of Impiana Resort & Residences Cherating in Kuantan is currently underway, with a total Gross Development Value (GDV) of RM413 million. It is targeted to reopen either in 2020 or 2021. Approximately 50% of the GDV is attributed to the first phase of the project, which comprises 257 serviced residence units and 11 private villas. The redevelopment will allow the group to boost its income from both the sale of units and from hotel management revenue. The serviced residence units are open for sale, on a sale-and-leaseback basis, and have seen a sales rate of 60%. The units are priced at around RM850 per sq. ft., or RM500,000 to over RM1 million per unit. In terms of Impiana Hotel Ipoh, the operating environment has experienced some improvement, albeit at a slower pace because 40 of its 200 rooms are currently undergoing refurbishment. The occupancy rate is projected to rise once the refurbishment is completed.

 (The Edge, 30/03/2019)


REMBAU HOSPITAL TO OPEN IN JUNE 2019

The RM104 million Rembau Hospital in Negri Sembilan which is currently 90% complete, will be opened in June 2019. The 76-bed hospital, construction of which began in September 2013, will form part of a hospital cluster with the Tuanku Ja’afar Hospital in Seremban, which means that specialists from that hospital will visit the Rembau Hospital to provide their services.

(The Star, 03/04/2019)


 

KPKT LOOKING TO SECURE FOREIGN FINANCIERS FOR RTO SCHEME

Malaysia’s Housing and Local Government Ministry is looking to secure foreign financiers to fund a Rent-to-Own (RTO) scheme for houses which will be built under the National Affordable Housing Policy. Although new RTO houses will only be completed in three to four years from now, the ministry is looking to see whether existing homes that are already completed can be utilised under the RTO scheme.

 (The Edge, NST & The Sun, 03/04/2019)


 

CAGAMAS SIGNS MOU WITH KOREA HOUSING FINANCE CORP

Cagamas Bhd has signed a Memorandum of Understanding (MoU) with Korea Housing Finance Corp (KHFC) to explore housing financing methods to further promote homeownership in Malaysia and Korea. The MoU will look at sharing information and experience in housing finance, mortgage and financial instruments between Malaysia and Korea. This is expected to enhance the stability of the housing and mortgage markets, Mortgage-Backed Securities (MBS) and other private funding instruments.

(The Edge & NST, 03/04/2019)


RESIDENTIAL TENANCY ACT TO BE DEVELOPED OVER TWO YEARS

According to the Housing and Local Government Ministry, Malaysia is currently studying the Residential Tenancy Act to provide new laws governing the country’s housing rental market, adding that the new act will take two years to develop. It will be a positive outcome for rentals in Malaysia, which will assist individuals in moving from ownership to rental schemes, particularly for B40 and M40 groups, and young individuals transitioning towards the working world. The Act will cover all tenancy agreements across the country, noting that there are currently variances in terms of rental standards and income.

(The Edge, NST & The Sun, 03/04/2019)


 

INTEGRATED DATABASE ADDRESSES UNSOLD PROPERTIES, OWNERSHIP ISSUES

The integrated housing database set up by the Housing and Local Government Ministry will address the issue of home ownership in the country. The database will also help to prevent the issue of unsold houses as well as construction at non-strategic locations. This database allows the ministry to do analysis so that the houses will be built in accordance with the requirements and can be adjusted in terms of the design, prices, and types.

(NST& The Edge, 05/04/2019)


 

METLIFE’S KL CENTRE OF EXCELLENCE TO CREATE OVER 80 HIGH VALUE JOBS

New York-based financial services group MetLife Inc is expected to create over 80 new high value jobs for Malaysians through the setting up of a centre of excellence (CoE) in Kuala Lumpur. The jobs will be primarily in actuarial services, information technology and accounting.

(The Star & NST, 04/04/2019)


 

ISKANDAR MALAYSIA CONTINUES TO ATTRACT CAPITAL

Since Iskandar Malaysia was launched back in 2006, it had attracted RM222.4 billion as at the end of 2018. In 2018, it had attracted RM32 billion and despite global economic uncertainties in 2019, a target of RM27 billion could expectantly be attainable. What will assist with investments into Iskandar is the number of companies from Singapore that may choose to relocate to Malaysia as land and utilities become more expensive in the island republic. In 2016, Singapore was the second-largest investor in Iskandar with cumulative investments of RM20.17 billion. China surpassed Singapore in 2018 with total investments of RM24.56 billion.

(The Star, 01/04/2019)


 

MB: NEW BRIDGE NEEDED TO EASE TRAFFIC CONGESTION

Johor is in dire need of a third bridge to Singapore to ease critical traffic congestion at the two entry points at the Causeway and Tuas, as denoted by the Menteri Besar of Johor. The worsening traffic situation at the two entry points require a long-term solution to ensure that Malaysia’s economic development will not be affected. The state government would discuss the matter with the Finance Ministry, Home Ministry, and Works Ministry, to find a solution to the problem.

(NST, 31/03/2019)


KA PETRA, HUTCHISON PORTS TO DEVELOP WORLD’S LARGEST SHIP-TO-SHIP TRANSFER HUB

KA Petra Sdn Bhd, a homegrown Ship-to-Ship (STS) transfer specialist, has signed a heads of agreement with Hutchison Port Holdings Ltd, to jointly develop the world’s largest STS transfer hub in Johor Baru. Hutchison Ports is the world’s leading port investor, developer and operator, with a network of port operations in 51 ports spanning 26 countries throughout Asia, the Middle East, Africa, Europe, the Americas and Australasia. Under the agreement, KA Petra will have 70% interest in the project, while Hutchison Ports will take a strategic 30% stake. Based on preliminary studies, construction of the STS hub is estimated to cost between US$150 million and US$180 million (RM611.7 million and RM734.1 million) and will be funded by a combination of internally generated funds and debt financing.

Construction works will be done in phases with commencement expected within the next 12 months. The hub is poised to trigger a resurgence of the Malaysian maritime sector, by becoming a catalyst for other related businesses in the industry. The hub and related businesses will attract many highly skilled Malaysians who are overseas, to return to Malaysia and provide skills and training for the next generation of professionals in the maritime industry.

(The Sun, The Star, NST & The Edge, 03/04/2019)


 

PAC: VEP REPORT CAN ONLY BE TABLED IN JULY 2019 PARLIAMENTARY SESSION

The Public Accounts Committee (PAC) denoted that its report on the Johor-Singapore Vehicle Entry Permit (VEP) system will only be ready for tabling in the July 2019 parliamentary session.

(The Edge, 03/04/2019)


 

PUTRAJAYA REQUESTS 6-MONTH EXTENSION FROM S’PORE OVER RTS PROJECT

The Malaysian Government has requested for a six-month extension from Singapore before making a decision on the Rapid Transit System (RTS) project. The extension request for September 2019 is to enable the government to examine several issues including the cost of implementing the project. The project that connects Bukit Chagar in Johor to Woodlands in Singapore and could ferry up to 10,000 passengers per hour each way at peak periods.

(The Edge, 02/04/2019)


 

DAMANSARA REALTY SELLS SHOP-OFFICE IN JB TO MAJOR SHAREHOLDER

Damansara Realty Bhd is disposing of a shop-office to one of its indirect major shareholders, for RM2.64 million in cash. Damansara Realty’s wholly-owned subsidiary, Damansara Realty (Johor) Sdn Bhd (DRJ), has entered into a sale and purchase agreement for the disposal of a 6,750 sq. ft. three-storey shop-office in Taman Damansara Aliff in Johor Bahru. The initial selling price was at RM3.3 million but it was sold at a 20% discount.

(The Edge, 30/03/2019)


 

SUNCON SECURES RM99.5 MILLION CONTRACT

Sunway Construction Group Bhd’s (SunCon) unit, Sunway Construction Sdn Bhd (SCSB), has secured a contract worth RM99.5 million from Sunway Marketplace Sdn Bhd, an indirect subsidiary of Sunway Bhd, for a proposed mixed development in Medini Iskandar Malaysia, Johor. The project is expected to be completed by 3Q20.

(The Sun, The Star & NST, 02/04/2019)


 

MIDF: DEVELOPMENT OF FREE ZONE CAN ATTRACT MORE MNCS

MMC Corp Bhd’s Port of Tanjung Pelepas (PTP) has an advantage over the Port of Singapore in terms of land availability, enabling a wider free zone to be set up. MIDF Research denoted that the development of the free zone could attract more Multinational Corporations (MNCs) to shift their warehouse operations to PTP and, eventually, this would also include container volume. Of the 3,500 acres covering PTP, approximately 1,000 acres has been allocated towards the free zone. PTP is in the final stages of attaining approvals to expand Phase 3 of the free zone measuring 168-acres.

(NST, 02/04/2019)


 

PENANG EYES RM5 BILLION IN FDI FOR 2019

Despite experiencing a drop in foreign direct investment (FDI) in 2018, Penang is looking at a RM5 billion target this year despite the softening in the industrial sector. The state recorded RM5.8 billion in total investment in 2018 compared to RM10.8 billion in 2017, a record-high and also the second time Penang occupied the No. 2 spot among all other states in the country. In the last 10 years, the state had recorded a total of RM58 billion in FDI, making it an average of RM5 billion annually.

(NST, 05/04/2019)


MALAYSIAN, CHINESE FIRMS INTEREST IN PENANG AIRPORT EXPANSION

Malaysia Airports Holdings Bhd (MAHB) is likely to call for a request for proposal for the development of the Penang International Airport (PIA) in 2Q19. Of the six parties involved, four are local companies, which include Ideal United Bintang International Bhd (IUBI), Muhibbah Engineering Bhd, Gamuda Bhd and AirAsia Group Bhd. The two Chinese companies involved are China Railway Engineering Corp (CREC) and another China construction firm. The project is expected to be awarded in 3Q19 so that construction works can proceed in 4Q19. Currently, MAHB is said to be revising the plan to expand the PIA to accommodate 16 million passengers per annum. There was an earlier proposal to expand the capacity of the airport to accommodate 12 million passengers at a cost of RM800 million.

The current airport was built to cater to 6.5 million passengers a year, although it handled 7.7 million passengers in 2018. The new airport will have ample space for 40 aircraft, comprising 10 “Boeing 777” aircraft, 26 smaller planes and four propeller planes. The expansion would boost the economy, particularly the tourism sector, as more international airlines are expected to fly into Penang.

(The Star & NST, 03/04/2019)


 

PPC CALLS FOR PROPOSALS

The Penang Port Commission (PPC) is calling for Request for Proposals (RFPs) to develop three plots of land under a 30-year lease to unlock their value. The plots are in Tanjung City Marina (approximately 4.94-acres), Jalan Anson (1.48-acres) on the island and Jalan Chain Ferry (4.45 acres) on the mainland. Tanjung City Marina, built at a cost of RM43 million in the early 2000s by the government, has fallen into disuse. The redevelopment of the Tanjung City Marina could cost between RM80 million and RM90 million. As for the Jalan Anson and Jalan Chain Ferry plots, the Jalan Anson land had been zoned for institutional use, such as colleges or hospitals.

(NST, 02/04/2019)


 

SANBUMI, ICONIC TO JOINTLY DEVELOP RM127 MILLION GDV PROJECT IN PENANG

Sanbumi Holdings Bhd has entered into a joint venture agreement with Iconic Development Sdn Bhd to construct and develop a RM127 million commercial project on a freehold, 8.7-acre site, called Iconic Point, located in Simpang Ampat, Seberang Perai Selatan. The project is expected to be completed by June 2021. It comprises 48 three-storey semi-detached shop-offices, a three-storey detached shop-office, a four-storey 48-room boutique hotel and three units of two-storey drive-thru concept detached shops.

 (The Sun, NST & The Star, 03/04/2019)


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Jones Lang Wootton