RINGGIT EXTENDS DROP, APPROACHES 4.20 LEVEL

The ringgit extended its downward trend for the third trading day, falling 0.18% to 4.1935 against the US dollar (the lowest in more than five months), as the tariff dispute between the United States and China escalates into a full-fledged trade war following the US ban of Huawei. Market analysts have expected the ringgit to depreciate to RM4.20 against the US dollar this week, due to the Wesak Day and Nuzul Al-Quran public holidays (shortened trading week). The currency was also expected to move in tandem with other Asian units this week, as global risk sentiment remains delicate over the direction of the US-China trade war.

(The Sun, 24/05/2019)


BANKS TOLD TO RELAX LENDING PROCESS

The Malaysian Government will not be contented if banks continue to be strict with their lending processes. As an open economy, Malaysia is influenced by the trade friction between the United States and China, whereby in this context, banks can play their bit by allowing for more lending. The 1Q19 gross domestic product growth of 4.5% had exceeded general expectations. Thus, banks should relax their lending guidelines, not just for first-time house buyers, but for returning buyers and all types of businesses.

(NST, 18/05/2019)


SC REVISES GUIDELINES TO FACILITATE PROPERTY CROWDFUNDING

The Securities Commission has revised its Guidelines on Recognised Markets, introducing new requirements to facilitate property crowdfunding. To support the integrity of the scheme and protect investors’ interest, the revised guidelines list out requirements and obligations of a property crowdfunding platform operator. This includes minimum shareholders’ funds of RM10 million, an obligation to provide fair, clear and timely information to homebuyers and investors, and exit certainty at the end of the agreed tenure.

(NST & The Edge Property, 18/05/2019)


STUDY ON HOUSING AGENCY READY BY THE END OF JUNE 2019

A study to restructure the four national housing agencies including the Syarikat Perumahan Negara Berhad (SPNB) and Perumahan Rakyat 1Malaysia (PR1MA), is expected to be ready by the end of June 2019. Via the study, the Malaysian Government intends on creating a comprehensive housing system that eases the capability of Malaysians in owning their own home.

(The Edge Property, 22/05/2019)


CAGAMAS ISSUES RM605 MILLION COMMERCIAL PAPERS

National mortgage corporation Cagamas Bhd, has issued commercial papers worth RM605 million to fund the purchase of housing loans and Islamic home financing from the domestic financial system. The commercial papers, comprising RM300 million three-month conventional commercial papers and RM305 million three-month Islamic commercial papers are the first issuance concluded by Cagamas, subsequent to Bank Negara Malaysia’s move in cutting the overnight policy rate by 25-basis-points on May 7, 2019.

(The Edge Property, 23/05/2019)


KBDC: NEW MASTER PLAN ON DRAWING BOARD

According to Kampung Baru Development Corp (KBDC), the Kampung Baru Detailed Development Masterplan that was launched in January 2015 will be scrapped. A new master plan initiated by Kuala Lumpur City Hall, is now on the drawing board in order to fulfil the allowable plot ratio set by City Hall, whereby the focus will be concentrated towards the provision of sustainable living.

(NST, 23/05/2019)


ONLY 1 PERAK STRETCH CAN OPEN BY RAYA

The concessionaire of the West Coast Expressway (WCE) has confirmed that only one out of three packages of the WCE in Perak can open before Hari Raya Aidilfitri. The Hutan Melintang-Teluk Intan stretch (Section 8) which is 97% completed is the only stretch that can be opened before Hari Raya on June 5, 2019. The other two packages in Perak, from Lekir to Changkat Melintang (Section 9) and Changkat Chermin to Beruas (Section 10), would only be opened in about one or two months after Hari Raya.

(NST, 22/05/2019)


PANGKOR AIRPORT TO REOPEN ON OCTOBER 1, 2019

The reopening of Pangkor Airport on October 1, 2019, is optimistically expected to further boost tourism and business on the resort island, which will be a duty-free destination from January 1, 2020. An airline company, SKS Airways Sdn Bhd, is expected to begin its flights to the island from Subang Airport.

(The Sun, 23/05/2019)


TRANSPORT MINISTRY TO HELP UPGRADE PORT DICKSON JETTIES

The Ministry of Transport Malaysia has agreed to work with the Negri Sembilan State Government to upgrade the Marine Department’s Port Dickson Passenger Jetty and the Railway Assets Corporation Jetty in Port Dickson as part of the move to increase their capacities. The ministry was proposing that the state government submit a more comprehensive proposal paper regarding the matter.

(The Sun, 24/05/2019)


UMW EXPECTS AEROSPACE UNIT TO TURN AROUND IN 2020

UMW Holdings Bhd expects its nascent aerospace business under the manufacturing and engineering division to turn around in 2020 as it ramps up production capacity. The division is undertaken via UMW Aerospace, which had, in 2015, entered into an agreement with Rolls Royce Plc to manufacture and assemble fan cases for Rolls-Royce Trent 1000 and Trent 7000 aero engines used in Boeing and Airbus aircrafts. Meanwhile, UMW has allocated capital expenditure (capex) of RM93 million for its aerospace business out of the RM118 million set aside for the manufacturing and engineering division, along with RM1.6 million for the land development of the High Value Manufacturing Park in Serendah, Selangor. The group has also earmarked RM174 million for the automotive division to upgrade and automate the group’s Shah Alam plant, whereas RM262 million has been allocated towards its equipment division to be invested in the group’s equipment rental business. An additional RM52 million will be used for other capex purposes, bringing the group’s total capex for the year to RM607 million.

(The Sun, 24/05/2019)


NEARLY 33,000 AFFORDABLE HOMES COMPLETED IN 1Q19

The Ministry of Housing and Local Government Malaysia has completed 32,951 units of affordable homes in 1Q19. Out of the total, the highest was in Kuala Lumpur with 7,390 units, followed by Perak with 5,688 units, Putrajaya (4,999), Kedah (4,815), Selangor (3,777), Johor (1,964) and Pahang (1,884).

(The Star, 21/05/2019)


MERIDIAN TO OFFER BUNGALOW LOTS IN MTC

Meridian Bhd is gearing up to launch its first housing project featuring bungalow lots in Malaysia Tourism City (MTC), which is a 622 acre integrated tourism project in Kuala Linggi, Melaka. The company will offer 480 bungalow lots spread over 100 acres, with a gross development value estimated at RM320 million. Each lot is circa 8,000 sq. ft. to 10,000 sq. ft. and are priced at between RM680,000 and RM800,000.

(NST, 23/05/2019)


RIMBUN ALAM BOASTS LUSH GREENERY, PEACEFUL LIVING

IJM Land Bhd has launched its latest project in Seremban 2 Heights, dubbed “Rimbun Alam”, comprising double-storey linked homes priced from RM527,624 per unit. Spread across 2 acres of lush greenery, “Rimbun Alam” is a low density development with merely six houses per acre. The homes offer vast living spaces of 2,255 sq. ft. per unit, which houses four bedrooms and three bathrooms each.

(NST, 23/05/2019)


PNB LIKELY TO REFURBISH OLD BUILDING

Permodalan Nasional Bhd (PNB) is likely to refurbish its current headquarters in Jalan Tun Razak once its new 118-floor skyscraper, “Merdeka PNB 118”, is completed by early 2021. PNB will review its future plans for the old building after moving into the new tower.

(NST, 21/05/2019)


PNB PROJECT 1194 ON TRACK TO BE COMPLETED IN 2021

After a 13-year delay, the “PNB Project 1194” redevelopment is slated for completion in 2021. The redeveloped former Malaysian Airline System Bhd headquarters along Jalan Sultan Ismail will comprise a 35-storey office block and 50-storey hotel, which are to be linked via an elevated walkway to the Kenanga building across the road. With circa 45% completed, the redevelopment comprises two towers: a new 50-storey hotel rated platinum by the Green Building Index that will have more than 450 rooms, and a refurbished 35-storey Grade A office building that will cost approximately RM1 billion.

(The Edge Property, 18/05/2019)


PNB MENARA WARISAN MERDEKA ON TRACK FOR COMPLETION BY EARLY 2021

The construction of Permodalan Nasional Bhd’s (PNB) “Menara Warisan Merdeka” is on track for completion by early 2021. The three phases of the development will include the iconic Merdeka PNB118 (a 630-meter tower), which is set to be the tallest building in Southeast Asia when completed. It will house PNB group of companies, a retail mall, residential apartments and condominiums, and a commercial building. PNB118 Tower is set to reach 78% completion by the end of 2019.

(The Edge Property, 20/05/2019 & The Sun. 21/05/2019)


HOTEL EQUATORIAL MELAKA TO BE CLOSED FROM JUNE 30, 2019 FOR MAKEOVER

Hotel Equatorial Melaka will “cease operations” from June 30, 2019, to undergo an extensive makeover. PNB Management Services Sdn Bhd is undertaking a detailed study of a plan for the upgrading and refurbishment of the 22 year old hotel.

(The Edge Property, 18/05/2019)


TOUGH TIMES IN HOSPITALITY INDUSTRY

According to the Malaysia Budget Hotel Association (MyBHA), budget hotels (with three-star ratings and below) have faced stiff competition from online platforms over the last two years. There are circa 500 budget hotels in Kuala Lumpur, whereby some have recorded a decline of between 15% and 20% in revenue in the past two years. This has resulted in some operators selling off their properties due to lack of business. Apart from an oversupply of hotels in the city and lower tourism arrivals in 2018, Airbnb and online travel agencies contributed to the competition, while tourism tax and Sales and Service Tax (SST) further added to the burden of budget hotel operators.

(The Star, 23/05/2019)


SCHEME MAY NOT GIVE HUGE INCENTIVES TO HOME OWNERSHIP

The National House Buyers Association opined that property crowdfunding will not be able to significantly contribute towards increasing home ownership for first-time homebuyers. The property crowdfunding scheme will be structured as an investment product and will not be suitable for the majority of first-time homebuyers. The scheme will only be suitable for a niche segment of first-time homebuyers who are unable to access traditional financing.

(The Sun, 21/05/2019)


KL RANKED NO. 49 TO RENT A MID-RANGE 2-BEDROOM APARTMENT

According to Deutsche Bank’s 8th annual survey of global prices and living standards, Kuala Lumpur ranked No. 49 in terms of renting a mid-range 2-bedroom apartment, at merely US$448 month. The most expensive city to rent such a property is Hong Kong, where one would have to fork out US$3,685. Coming in at No. 2 is San Francisco, where one would have to pay US$3,361, New York City at No. 3 (US$2,909), followed by Zurich (US$2,538), Paris (US$2,455), London (US$2,338), Boston (US$2,201), Dublin (US$2,018), Sydney (US$1,969) and Tokyo (US$1,903).

(The Edge Property, 22/05/2019)


MALAYSIA RANKS 6TH GLOBALLY

Malaysia was placed sixth on the Global Consumer Confidence Index (CCI) in 1Q19, with a score of 115 points, largely in line with 4Q18’s score of 118 points. The country posted the fourth highest gain among 64 countries, which was up 11 points compared with 1Q18, according to the Conference Board Global Consumer Confidence Survey. The CCI was measured based on three indicators: consumers’ perception on job prospects, personal finances and intentions or readiness to spend. While perception on personal finances and job prospects were in-line with 4Q18, the study found that there was a significant decrease in readiness or intent to spend.

(NST, 22/05/2019)


FIRST PHASE OF KEDAH RUBBER CITY TO BE COMPLETED BY 2020

The first phase of Kedah Rubber City (KRC), encompassing 500 acres of land at Ladang Bukit Ketapang, will be completed by 2020. KRC will be intensifying research and development in rubber products and manufacturing, which will be driven by the business sector and facilitated by the Malaysian Government. KRC is located within the “Rubber Belt” of the Malaysia-Thai border, at Ladang Bukit Ketapang, which is approximately 10km from Kuala Nerang and 45km from Alor Setar.

(The Edge Property, 23/05/2019)


RTS PROJECT WON’T BE DERAILED

Malaysia and Singapore officially signed the Supplemental Agreement (SA) for suspension of the Rapid Transit System (RTS) Link Project until September 30, 2019. The agreement will also allow time to explore affordable and sustainable solutions to address traffic congestion at the border, including lower fares for passengers. The project was scheduled for construction in 2019 and is expected to be completed by December 2024. Malaysia will reimburse Singapore with approximately RM2 million by July 31, 2019, as abortive costs were incurred as a result of the six-month suspension.

(The Edge Property, 21/05/2019 & NST, 22/05/2019)


BUKIT CHAGAR POISED TO BE MAJOR TRANSPORT HUB

Bukit Chagar is set to become a major transport hub in Johor Baru following the introduction of the Rapid Transit System Link (RTS) project. The RTS project would streamline and modernise the transport system in Johor Baru, particularly within the city centre. This will also be complemented by the Iskandar Regional Development Authority’s construction of the Bus Rapid Transit project in Iskandar Malaysia.

(NST, 22/05/2019)


DIALOG GETS A BOOST

Dialog Group Bhd (an oil and gas services company) has announced the commencement of Phase Three of the Pengerang Deepwater Terminals (PDT) project. Slated to be completed in the middle of 2021, the project involves the reclamation of 300 acres of land within the PDT area at a cost of RM2.5 billion. Reclamation works commenced in May 2018 and is slated for completion by the end of 2019.

(The Star, 18/05/2019)


AS TOURISM DRIVES OUT RESIDENTS, GEORGE TOWN LOOKS TO CO-LIVING SPACES

Increases in rent (of up to four times previous prices, or more) over the past five years, has businesses that are decades-old shutting up shop and residents who are leaving George Town. Having achieved the status of UNESCO world heritage site in 2008, the influx of tourists (3.8 million visitors in 2018) and rising rents have changed the city. In a bid to repopulate the city, the Penang State Government is refurbishing six dilapidated pre-war shophouses and is aiming to draw a new generation of residents (students and tech-savvy entrepreneurs) into the heart of the city. Co-living spaces typically feature private bedrooms, and tenants sharing a kitchen and living room. It is expected to boost affordability and assist in attracting young tenants who would have otherwise been unable to move into the city.

(The Edge Property, 23/05/2019)


PENANG HOSPITAL READY IN JUNE 2019

All 10 operating theatres at the Penang Hospital are expected to run at full capacity from June 2019. Works on the RM15 million upgrade was slated for completion and resumption of operations in February 2018, but as a result of design and technical setbacks, merely five were ready as scheduled. All medical and surgical equipment are ready for final inspection and approval from the relevant authorities, including the Penang City Council. The 165-year-old hospital also serves as a referral hospital for the northern region.

(The Sun, 23/05/2019)


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