GOVERNMENT SETS UP TEAM TO PROMOTE DEVELOPMENT ALONG ECRL CORRIDOR
The Malaysian Investment Development Authority (Mida) has established a team to promote the development of industrial parks, infrastructure, logistics hub and transit-oriented developments along the East Coast Railway Link (ECRL). The team was established to facilitate, evaluate and review the implementation of economic accelerator projects (EAPs) along the ECRL corridor. The team will strategise various action plans covering promotional activities and engagements with the relevant stakeholders including domestic industries. The ECRL project, which will form the East-West rail transport network, is designed to stimulate commercial, logistic, import and export, as well as tourism development activities along the proposed alignment. With inflows of foreign direct investment and domestic investment as well as potential growth for industrial, commercial and tourism sectors, the railway will contribute towards bridging the development gap between the east and west coasts of Peninsular Malaysia.
(The Edge & NST, 16/05/2019)
MALAYSIA’S POPULATION STANDS AT 32.66 MILLION, MALES OUTNUMBERING FEMALES
Malaysia’s population in 1Q19 is estimated at 32.66 million, with the male population now outnumbering females, according to the Statistics Department. The male population stands at 16.86 million, compared to the female population at 15.80 million. The sex ratio remains at 107 males per 100 females. From the total population of 32.66 million, 29.31 million are citizens, while the balance of 3.35 million is non-citizens. Selangor records the highest population of 6.54 million, while Putrajaya records the lowest at 92,640 people. A total of 116,850 live births were recorded in 1Q19, while 42,647 deaths were recorded for the same period.
(The Edge, The Star & The Sun 16/05/2019)
MALAYSIA’S ECONOMY GROWS 4.5% IN 1Q19
Accordingly to the Depart of Statistic, Malaysia’s economy grew 4.5% in 1Q19 compare with 4.7% in 4Q18 and 5.3% in 1Q18. All sectors in the economy posted a positive growth except the mining and quarrying sector posted negative growth. Private final consumption expenditure continued to be the main driver on the expenditure side.
(The Edge, The Star, NST & The Sun, 17/05/2019)
MAHB: PASSENGER TRAFFIC UP 5.6% IN APRIL 2019
Malaysia Airports Holdings Bhd’s (MAHB) network of airports, including Istanbul SGIA, recorded a 5.6% growth to 11.7 million passengers in April 2019. International traffic grew 6.5% to 5.6 million passengers, while domestic traffic grew 4.7% to 6.1 million passengers, compared with April 2018. In Malaysia, airports registered 6.6% growth to 8.8 million passengers in April 2019, compared with a year ago. The international sector grew 2.5% to 4.4 million passengers, while the domestic sector grew 11.2% to 4.3 million passengers. At Istanbul SGIA, passengers grew by 2.5% to 2.9 million passengers. International passenger movements rose 24.3% with 1.2 million, while the domestic sector fell 8.5% with 1.7 million passengers.
(NST & The Sun, 11/05/2019)
KEDAH TO DISCUSS KULIM INTERNATIONAL AIRPORT ISSUES WITH PENANG AND PERAK
The Kedah Government will hold a tripartite meeting with the Penang and Perak State Governments to discuss issues arising from the proposed construction of the Kulim International Airport (KXP) in the State. The meeting would also serve as a platform for Kedah to explain to both States (particularly Penang) that the construction of the airport would not affect Penang’s economic growth.
(The Edge, 15/05/2019)
GAMUDA LAND UNVEILS NEW ACCESS ROAD, COMMUNITY HALL FOR KUNDANG ESTATES
Gamuda Land has officially opened the new access road and community hall for its boutique township project of Kundang Estates. Launched in December 2016, Kundang Estates is an 89-acre, low-density boutique residential development located in the town of Kundang, Selangor. The 11-phase development has a gross development value of RM628 million and Gamuda Land has invested up to RM14.5 million to enhance the area’s infrastructure. Part of the enhancement efforts includes the extension and widening of Jalan BBK Utama, thereby adding a total of 800m in length and 100ft in width. The road enhancement has also inspired the local authority to follow suit by improving Jalan Kundang. Gamuda Land also unveiled a new 8,000 sq. ft. community hall, which houses three badminton courts, a basketball court and six ping pong tables, in which the space could also be converted into an event hall. The community hall is open for use by the public, at a minimum fee.
(The Edge, 15/05/2019)
SP SETIA TO RAMP UP HOME LAUNCHES
SP Setia Bhd will be ramping up its launches and sales of properties to achieve its sales target of RM5.65 billion. The group would be launching RM6.47 billion worth of projects from 2Q19 until the year-end. The major launches will be in the central region, with some in the southern and northern regions. The property giant is targeting some 89% local sales and 11% international sales. Moving forward, sales will be derived from new launches, existing projects and completed inventories. The developer is coming up with plans to repackage and relaunch the affected projects in Johor as investment products, while the ones in Penang are larger units priced at more than RM3 million. All its smaller units have been sold out. SP Setia’s land bank is mostly concentrated in the central region, followed by Johor, one in the northern region and around 30 acres in Penang. SP Setia is also expecting a one-year delay for the second and third phases of its Battersea Power Station Project in London, which is now targeted for completion in 2021.
(The Star & NST, 17/05/2019)
YFG GETS RM40 MILLION PROJECT IN KUANTAN
YFG Engineering Sdn Bhd, a wholly owned subsidiary of YFG Bhd, has accepted a RM40 million project for contract works for a proposed residential project in Pahang. The project involves works for an external sewerage and sewerage treatment plant, water reticulation, street lighting, telephone services, and building mechanical and electrical services. The proposed construction comprises 978 units of terraced and 146 units of semi-detached houses on Lot 8094 in Kuantan. It is expected to commence on May 30, 2019, and is to be completed within two years.
(The Star & The Sun, 15/05/2019)
LPM, SCIENTEX HEIGHTS TO DEVELOP MIXED-RESIDENTIAL PROJECT WORTH RM438.72 MILLLION
Melaka Housing Board (LPM) is collaborating with Scientex Heights Sdn Bhd to develop a mixed-residential project valued at RM438.72 million in Durian Tunggal, Alor Gajah. The project will see the construction of 2,520 units of terraced houses including 462 units of Affordable Housing Scheme, 280 units of Youth Housing Scheme and 173 units under the Rumah Harapan programme, as part of efforts to help people in the state own houses. The two-phase project, on a 192.9-acre piece of land, is expected to complete fully in six years’ time with the first phase, which has already begun, scheduled for completion in 2022.
(The Edge, 16/05/2019)
DEPT SURVEY SHOWS INCOME FROM ECOMMERCE ON THE RISE
Income for businesses from eCommerce transactions has been steadily growing at a rate of about 6% per year, according to the Department of Statistics Malaysia. It, however, denoted that while companies were raking in more income, their spending has also increased by approximately 8.3% annually. In 2017, income from eCommerce transactions were recorded at RM447.8 billion, compared with RM398.2 billion in 2015. The main contributor was the manufacturing sector with 64.2% (RM287.5 billion), followed by services (RM152.6 billion) and mining and quarrying (RM7 billion). It was also found that Malaysian businesses predominantly generated eCommerce income from domestic buyers, with a share of 89.3% (RM399.8 billion). The international market merely contributed 10.7%.
(The Star, 15/05/2019)
PARADIGM MALL PJ UNVEILS NEW UPGRADES
Paradigm Mall Petaling Jaya owned by WCT Group, has completed its first phase of the Asset Enhancement Initiative (AEI), which seeks to provide seamless shopping experiences to shoppers. WCT Malls Management denoted that by refreshing the tenancy mix with additions of new eateries and lifestyle retail offerings, the company aims to offer shoppers a variety of choices for fun, fashion and food. To provide a more dynamic and seamless shopping experience to the shoppers, tenants in the mall are zoned according to their specialities. The entirety of Level LG, for example, is now designated for F&B, supermarket and services, while Level CC is for local fashion, bags and leather goods. In addition, Paradigm Mall PJ has also brought in new lifestyle brands such as French-themed DIY perfume outlet Parisine, Celmonze Signature, HLA fashion, Makeover Paris beauty outlet and Jadioc Barber Shop. With operations having commenced in 2012, the 7-storey Paradigm Mall PJ is the second mall project developed by WCT. It offers one million sq. ft. of retail space which can accommodate more than 200 outlets, with 4,300 covered carpark bays. The mall is managed by WCT Malls Management Sdn Bhd, a subsidiary of WCT Holdings Bhd.
(The Edge, 15/05/2019)
WEWORK EQUATORIAL PLAZA OPENS
New York based co-working platform WeWork officially launched its space in Equatorial Plaza, Kuala Lumpur on May 16, 2019. WeWork’s Equatorial Plaza space is also the largest in Southeast Asia to date and accommodates 1,900 members across five floors (18th to 22nd). The company is also eyeing to set up new space in Mid Valley in 2H19.
(The Edge, 16/05/2019)
RAJAWALI GROUP SET TO EXIT SHERATON IMPERIAL KL AFTER 15 YEARS
A 33-storey building in Jalan Sultan Ismail has been put up for sale by an Indonesian billionaire. The newly renovated five-star Sheraton Imperial Kuala Lumpur and the Faber Imperial office tower are estimated by industry sources to fetch between RM450 million to RM500 million. The building is owned by Inter Heritage (M) Sdn Bhd, in which Rajawali Group owns a 51% stake via Eagle High Properties Pte, with the remaining 49% owned by the world’s largest hotel chain, US-based Marriott International, via Granton International Ltd. The Sheraton Imperial comprises 398 rooms and 138,000 sq. ft. of office space for rent, located directly across the street from Quill City Mall.
Reasons for the sale are potentially a combination of factors such as continued losses sustained by the property, a glut of office space in the capital, and increasing competition within the hotel segment from newer hotels and alternative accommodation providers such as Airbnb. At the end of 2018, the higher floors which house the hotel underwent extensive renovations. The lower floors house Faber Imperial Court, which is also known as the Sheraton Imperial Tower. The occupancy rate is over 70%. Tenants that are listed on the website include Kings College, accounting and advisory firm SJ Grant Thornton, The High Commission of Sri Lanka, Japanese firms Shimizu Corp and Taisei Corp, Tourism Australia and Rajawali Corp.
(The Edge, 11/05/2019)
SCIENTEX BUYS RM123.38 MILLION LAND IN GOMBAK TO BOOST PROPERTY DEVELOPMENT LANDBANK
Scientex Bhd is acquiring land in Gombak for a total of RM123.28 million in order to boost its property development landbank, with a focus on building affordable homes. The group’s wholly-owned unit, Scientex Park (M) Sdn Bhd (SPMSB), has signed two conditional sales and purchase agreements with the sellers, Swan Lake City Sdn Bhd and Fair City Sdn Bhd, for the proposed acquisition. Swan Lake City is selling land measuring 607,735.7 sq. m. in Mukim Rawang to Scientex for RM111.21 million, while Fair City will sell an adjacent 65,983 sq. m. of land in Bandar Kundang for RM12.07 million. The subject land (referring to the two plots collectively) is proposed to be developed into a mixed property development
(The Edge, 14/05/2019)
PLAZA RAKYAT PROJECT TO RESTART SOON
According to the Minister of Federal Territories, works on the long-abandoned Plaza Rakyat project in Jalan Pudu, Kuala Lumpur, is expected to soon begin. A 43% stake in the developer, Profit Consortium Sdn Bhd, is being acquired by China-based Guangzhou Xu Zhuo Enterprise Management Co Ltd, who is expected to pay the outstanding debt due to Kuala Lumpur City Hall (DBKL). Comprising five parcels of leasehold land totalling 29.64 acres, it was purchased from DBKL for RM700 million, much of which remains unpaid. In 2017, the development plan for Plaza Rakyat had been finalised, and repair works for the existing development on the land had commenced. However, works were halted due to cash flow difficulties in funding working capital requirements. The project is a large-scale mixed-use development that includes high-quality residential units, a five-star hotel, a budget hotel, offices and a large-scale shopping mall. A 96-storey skyscraper and two 81-storey towers were revealed in an earlier development proposal submitted to DBKL.
(The Edge, 11/05/2019)
OSK PROPERTY EMBRACES TRANSIT ORIENTED DEVELOPMENT IN YOU CITY
OSK Property officially unveiled You City III Cheras, the latest phase of the You City development in Cheras 9th Mile. You City III is an integrated Transit-Oriented Development (TOD) featuring a direct link-bridge to MRT Taman Suntex. You City III comprises 800 serviced apartment units within two towers and a three-storey You City Retail component on a 5.5-acre freehold land. The development is well planned with practical layouts from 678 sq. ft. to 1,776 sq. ft., two to four bedrooms, two to three bathrooms and one to four car parks. Entry prices are from RM350,000 onwards.
ADVANCE SYNERGY TO SELL FACTORY, WAREHOUSE FOR RM124 MILLION
Advance Synergy Bhd (ASB) has agreed to sell its factory and warehouse in Shah Alam, Selangor, to a unit of Mapletree Dextra Pte Ltd, for RM124 million cash. Proceeds from the proposed disposal will be utilised to repay loans and refurbish the group’s hotels and a newly acquired commercial building. The proposed disposal is expected to be completed by 4Q19. ASB has entered into a conditional sale and purchase agreement with Symphony Warehouse Sdn Bhd (SWSB), to dispose of a piece of industrial freehold land along with buildings and structures situated within Section 22 in Shah Alam. SWSB is wholly owned unit of Singapore-based Mapletree Dextra, a real estate and property management company.
(The Star, 11/05/2019)
SEACERA INKS MOU WITH S. KOREA FIRM FOR LED FACTORY
Seacera Group Bhd has tied up with South Korea’s KR EMS Co Ltd to look into the possibility of building a factory to produce Light-Emitting Diode (LED) products in Malaysia. Both companies signed a Memorandum of Understanding to look into the venture, with technology provided by KR Global, supervision undertaken by KR Global and product sales will be handled by Seacera. Founded in 2007, KR Global is the global No. 1 Electronic Manufacturing System (EMS) specialist company. Some of its key clients are LG Electronics, Seoul Semicon, Lusen and Hee Sung. The company’s plan was to set up the production plant at its factory in Tangga Batu, Malacca. LED systems are designed to be smart and efficient, and this is well suited towards the smart home technology era that everyone is currently embracing.
(The Star, 14/05/2019)
TASCO BERHAD EXPANDING ITS TERRITORY IN PORT KLANG
Tasco via its subsidiaries, Gold Cold Solutions Sdn Bhd (GCS) and Titian Pelangi Sdn Bhd (TPSB), has entered into a sales and purchase agreement with Hai San Holdings Sdn Bhd (In Liquidation) and Hai San & Sons Sdn Bhd (In Liquidation), collectively referred to as HSH. The agreement was for a proposed acquisition of seven parcels of leasehold land with a size of 16.3 acres, for a total cash consideration of RM25.8 million. The parcels of land are located within established industrial neighbourhoods of: (i) North Port, (ii) Kawasan Perusahaan Selat Klang Utara and (iii) Perdana Industrial Park.
(The Edge, 14/05/2019)
MALAYSIA’S TOURISM RECEIPTS HIT RECORD HIGH OF RM84.1 BILLION IN 2018
Malaysia’s tourism receipts hit a record high of RM84.1 billion in 2018, an increase of 2% from a year earlier. The 2018 tourism receipts per capita also hit a record high of RM3,300, up 3% from the previous year. The achievement was attributable to a weaker ringgit and is partially due to a heightened influx of Chinese visitors, whereby the average Chinese visitor to Malaysia spent RM4,200. In 2018, total visitor arrivals to Malaysia eased 0.4% year-on-year to 25.8 million, mainly due to fewer visitor arrivals from Singapore and the recovering of the ringgit against the Singapore dollar. The decline in Singaporean visitors was mainly caused by increased congestion at land checkpoints due to the new biometric system.
(The Star & NST, 11/05/2019)
NEW FIVE-STAR HOTEL TO BOOST TOURIST ARRIVALS
The upcoming five-star Ames Hotel in Melaka will strengthen the state’s appeal as a business and travel destination. Ames Hotel, costing more than RM200 million, is a member of LSL Hotel Group, the hospitality arm of Sheng Tai International. It will be managed by Alorie Hospitality, a hotel management specialist with a portfolio of world-class properties across the globe. Scheduled to open before the end of 2019, the hotel will be part of Melaka’s trade square. Ames Hotel’s lobby and guest rooms are designed by Orb Associates Sdn Bhd and features 302 guest rooms and suites within a 13-storey building. A Club Lounge is also available, which offers exclusive benefits such as complimentary breakfast and all-day refreshments to hotel suite guests.
(The Star, 14/05/2019)
ZURAIDA CLARIFIES AFFORDABLE HOUSING POLICY FOR CIVIL SERVANTS
The government will no longer provide an allocation for affordable homes built by the government for civil servants, and the Housing and Local Government (KPKT) have now revealed the reasons for such a move. The implementation of this new policy follows the setting up of a new sole entity that involves Perbadanan PR1MA Malaysia, Syarikat Perumahan Negara Bhd (SPNB), Uda Holdings Bhd, Housing Programme for the Hardcore Poor (PPRT) and 1Malaysia Civil Servants Housing (PPA1M) to be standardised under one roof, in order to strengthen the will of the Pakatan Harapan administration. The new policy takes effect immediately and civil servants will now have to apply for such housing just like any other Malaysian. Currently, KPKT has 13 affordable housing projects with 38,000 units from three projects that are already completed and 122,000 units within 10 projects undergoing development.
(The Edge, 14/05/2019)
DAMANSARA REALTY TO JOINTLY DEVELOP 68 SHOPLOTS IN JOHOR BAHRU
Damansara Realty Bhd is teaming up with a private developer to develop a commercial project comprising 68 units of shoplots on a plot of land in Johor Bahru, with a net development area of 2.9 acres. The shoplots will comprise three-storey and four-storey freehold units, 40 of which will be for non-Bumiputera buyers, while the remainder will be reserved for Bumiputeras. The group’s indirect subsidiary, Dac Land Sdn Bhd (DACL), entered a joint land development agreement with Active Estates Sdn Bhd (AESB) for the project. Under the agreement, DACL will be entitled to RM41.62 million or 40% of the project’s gross development value. The project is expected to be completed in five years.
(The Edge, 15/05/2019)
MIDA APPROVES RM129.1 BILLION INVESTMENTS FOR PENANG IN 2018
Malaysian Investment Development Authority (Mida) has approved 4,084 manufacturing projects for Penang with investments totalling RM129.1 billon in 2018. These projects have created over 516,600 job opportunities, mainly in electrical and electronics products, basic metal products, scientific and measuring equipment, machinery and equipment, as well as transport equipment. Mida said it approved foreign investments in the manufacturing sector totalling RM90.4 billion, or 70% of total investments approved for the state. The other 30% was from domestic investments and they accounted for RM38.7 billion.
(The Star, 17/05/2019)
MAH SING CELEBRATES TOPPING UP CEREMONY FOR PHASE 1 OF FERRINGHI RESIDENCE 2
On 9th May 2019, Mah Sing Group Bhd held a “topping up” ceremony for Phase 1 of its Ferringhi Residence 2. The ceremony symbolised the structural completion of the development’s Tower B building. Construction of the entire project is currently at around 50% completion, with structural works of Phase 2 (Tower A and C) still in progress. Tower B is expected to be fully completed in July 2020, while the entire project comprising two phases, is scheduled for completion by December 2020. Ferringhi Residence 2 is expected to have a total gross development value of RM614 million. The 9.95-acre Ferringhi Residence 2 development in Batu Ferringhi is a freehold residential condominium located behind the Penang Hill forest range and the Teluk Bahang Forest Reserve Park within Batu Ferringhi.
The development comprises three towers (32-storey high-rise residences, 10-storey mid-rise residences and 4-storey low-rise residences) and all units are designed with its living spaces having openings of approximately 16-feet wide, with direct outdoor views. The typical layout of two and three-bedroom units are spacious, with built ups from 1,208 sq. ft. to 1,565 sq. ft.
KKIP AEROSPACE TRAINING CENTRE TO START OPS BY MAY 2020
An aerospace training centre in Kota Kinabalu Industrial Park (KKIP) is expected to commence its operation by May 2020. The first intake would involve 200 students with a year training in campus, and afterwards practical trainings with airlines and maintenance, repair and overhaul (MRO) companies for a few years. Sabah Trade and Industry Minister revealed this latest development after witnessing a signing ceremony between regional carrier MASwings and an international MRO company.
(The Star, 17/05/2019)