GOVT EXPECTS ECONOMY TO IMPROVE IN 2021, IN LINE WITH GLOBAL RECOVERY
The government expects the Malaysian economic position to improve in 2021, in line with the global recovery, according to the Malaysian Prime Minister. The country’s economic recovery will be led by the services and manufacturing sectors, which account for more than 80% of Gross Domestic Product (GDP). Domestic demand is also projected to record steady growth, supported by improvements in the labour market, low inflation and favourable financing conditions as well as the resumption of major infrastructure projects. Citing forecasts by the International Monetary Fund (IMF) and the World Bank, Malaysia’s economy will grow at a rate of 7% and 6.7% respectively in 2021. Meanwhile, global GDP in 2021 is projected to recover at 5.5%, whereas world trade is also projected to grow at 8.1%.
(The Edge, 02/03/2021)
MITI: MALAYSIA RECORDS RM164 BILLION OF TOTAL APPROVED INVESTMENTS IN 2020 AMID GLOBAL PANDEMIC
Amid the challenging global economic environment due to the Covid-19 pandemic, Malaysia recorded a total of RM164 billion in approved investments through 4,599 projects in the manufacturing, services and primary sectors in 2020, according to the International Trade and Industry Ministry (MITI). These investments are expected to generate 114,673 jobs in various sectors of the economy once implemented. In contrast, a total of 5,287 projects with investments of RM211.4 billion were approved in 2019. This was weighed by the services and primary sectors, which were directly impacted by the decline in global demands due to the pandemic and the implementation of the Movement Control Order (MCO), according to MITI. Of the total investments approved, Domestic Direct Investments (DDI) accounted for the bulk of the total approved investments with a contribution of 60.9% (RM99.8 billion) while Foreign Direct Investments (FDI) made up the remaining 39.1% or RM64.2 billion in 2020.
(The Star, NST & The Edge, 03/03/2021)
SULTAN ISMAIL PETRA AIRPORT EXPANSION WORKS BEGINS APRIL 2021
The expansion and upgrading of the Sultan Ismail Petra Airport (LTSIP) in Kota Bharu, Kelantan will commence in April 2021 at a cost of over RM400 million. LTSIP’s maximum capacity stood at 1.5 million passengers a year, but in 2019, it had to handle 1.8 million passengers. The government has agreed to appoint WCT Bhd as the contractor of the project with a cost of RM440 million. On-site work is to begin in April 2021 and the project is expected to be completed in the middle of 2024. The main component of the project involves construction of a new terminal building with separate arrival and departure halls. Once ready, the new terminal will be able to handle four million passengers a year, besides also having a multi-storey car park. Five additional aerobridges will be added to make it eight in total, while there will be more vehicle entry and exit points as well.
(The Edge, 27/02/2021)
PASSENGER TRAFFIC DECLINED IN JANUARY, CARGO RECOVERS — IATA
Passenger traffic declined in January 2021 compared with both pre-Covid levels back in January 2019 and December 2020, according to the International Air Transport Association (IATA). Total demand in January 2021 (measured in revenue passenger kilometres or RPKs) was down 72% compared to January 2019, which was worse than the 69.7% year on year decline recorded in December 2020. Total domestic demand was down 47.4% versus pre-crisis (January 2019) levels. In December 2020 it was down 42.9% compared with the previous year. This weakening was largely driven by stricter domestic travel controls in China over the Lunar New Year holiday period. International passenger demands in January was 85.6% below January 2019, which was a further decline compared with the 85.3% year on year decline recorded in December 2020.
(The Edge & The Star, 04/03/2021)
RM1.7 MILLION BOOST TO ENTREPRENEURSHIP IN JELEBU
The Entrepreneur Development and Cooperatives Ministry (Medac) is confident of creating a conducive entrepreneurial ecosystem in Jelebu, Negri Sembilan, with the construction of cooperative retail stores. The stores will be developed by UDA Holdings Bhd (UDA), a property developer and asset management company, under the purview of Medac. UDA has been appointed as the turnkey developer for this project on land owned by the Koperasi Kakitangan Kerajaan Daerah Jelebu Bhd in Kuala Klawang. The UDA Niaga Project will comprise four lots of two-storey shophouses built on 0.07 hectares of land owned by the cooperative and is expected to take eight months to complete. The government will fund this project with a grant for an estimated RM1.7 million in Gross Development Cost (GDC). Once completed, it will be handed over to the owners of the land.
(The Star, 04/03/2021)
KANGER INTERNATIONAL SECURES RM478 MILLION CONTRACT TO BUILD TWO BLOCKS OF APARTMENTS IN GENTING HIGHLANDS
Kanger International Bhd’s wholly owned unit has secured a contract to build two blocks of serviced apartments totalling RM478 million in Genting Highlands. Its subsidiary Kanger Ventures Sdn Bhd, which has entered into a collaboration agreement with Vegetta Champion Sdn Bhd, will be responsible for the project management, financial and entire administration of the development. Meanwhile, Vegetta Champion has been appointed the main contractor for foundation and main building works of the development. The project is expected to commence in June 2021 and will take approximately 48 months to be completed.
(The Star & The Edge, 03/03/2021)
EXPERIENCE HILLTOP LIFESTYLE AT THE PEAK OF EQUINE PARK WITH KAIA HEIGHTS
UEM Sunrise Berhad continues to strengthen its portfolio and presence in greater Kuala Lumpur with its latest high-rise offering, KAIA Heights. Standing on a 19-acre site, KAIA Heights is a low-density development built with only 48 units of condominium per acre in Seri Kembangan. The first phase of this project comprises 517 condominium units with built-up areas ranging between 972 sq. ft, and 1,437 sq. ft. The estimated completion date of the first plot is targeted for 1Q25.
ECURVE SHOPPING CENTRE CLOSES FOR REDEVELOPMENT BY MONTH-END
The eCurve shopping mall in Petaling Jaya has notified tenants that the mall will close for redevelopment effective 31st March 2021. The management of eCurve shopping centre confirmed that after 14 years, the shopping mall will be undergoing redevelopment in keeping up with the changes in the environment and in line with the company’s plans for urban rejuvenation.
(The Edge, 01/03/2021)
GSC BUYS MAJORITY OF MBO CINEMA ASSETS
Golden Screen Cinemas (GSC), which is owned by PPB Group Bhd, denoted that it is acquiring the majority of cinema assets from the operators of MBO chain of cinemas, which is currently undergoing a creditors’ voluntary winding-up. GSC signed an asset sale agreement on 23rd February 2021 to acquire the said assets from MCAT Box Office Sdn Bhd and Reel Entertainment Holdings Sdn Bhd, which are both in creditors’ voluntary winding-up. MBO has a total of 27 cineplexes across 10 States.
(The Star, NST & The Edge, 03/03/2021)
GRAND-FLO PROPOSES TWO PROPERTY ACQUISITIONS
Grand-Flo Bhd is planning to buy two properties in Genting Highlands including the land and project development rights of an ongoing mixed development known as Grand Ion Majestic (GIM), and the adjacent serviced apartments and commercial lots of a completed project known as Grand Ion Delemen (GID) for RM422.89 million. It is buying the properties from Galeri Tropika Sdn Bhd (GTSB), which is majority owned by NCT Building & Civil Engineering Sdn Bhd (NCT BCE), a wholly owned unit of NCT Venture Corp Sdn Bhd. GIM, which will be acquired for RM210 million, comprises three blocks of serviced apartments with 1,885 units, as well as 30 units of retail and office lots, with residual gross development value of RM1.1 billion. GID, on the other hand, has 100 completed serviced apartment units and 15 units of retail lots. The two projects are within close proximity of Resorts World Genting.
(The Star & The Edge, 03/03/2021)
PLATINUM VICTORY FOCUSES ON AFFORDABLE TYPE PROJECTS INCLUDING A JV WITH JAKEL IN 2021
Platinum Victory Sdn Bhd plans to launch a few competitively priced projects in Setapak in 2021, namely Platinum Casa Danau, The Ark by Platinum and mixed development J. Satine, which is a joint venture with Jakel Group. Other projects in the pipeline in the Klang Valley include Vista Saujana and Vista Dedanau. The developer revealed that its three residential projects with a combined Gross Development Value (GDV) of RM1.228 billion which were launched in 2020, had fetched a combined sales rate of 90%, with a conversion rate of 50%. One of the projects launched in 2020 includes Vista Sentul Residences, which is built on a 2.38-acre site in Sentul, with a GDV of RM308 million. The second project launched was the 3.72-acre Vista Danau Kota Residensi Wilayah in Setapak which is a single-block development comprising 910 units priced at RM300,000 and the third being MH Platinum 2 Residences, a 4.72-acre project in Setapak.
(The Edge, 05/03/2021)
SUNWAY PROPERTY PLANS TO LAUNCH PROPERTIES WORTH RM2.8 BILLION
Sunway Property is planning to launch RM2.8 billion worth of properties in Malaysia, Singapore and China in anticipation of economic recovery as vaccines roll-out across the world in 2021. Out of the new launches, 40% or RM1.1 billion worth of properties will be launched in the Klang Valley where the economy is expected to rebound strongest in tandem with the vaccine roll-out. The remaining 60% of launches will be international projects comprising Parc Central Residences in Singapore with a Gross Development Value (GDV) of RM910 million, and Phase 3 of Sunway Gardens Condominiums in Tianjin, China, with a GDV of RM780 million. The group’s pipeline of investment properties includes the RM160 million Sunway Hotel Big Box, Johor, Sunway Carnival Mall expansion, Penang (RM350 million), Sunway International School (RM200 million) and Sunway Medical Centre expansion (RM600 million) in Sunway City Kuala Lumpur. The property developer is excited to launch RM1.1 billion worth of developments in Malaysia in 2021, all of which are designed for new norm urban living, under its Beauty of City Living campaign. In Malaysia, the new launches comprise Sunway Belfield in Kuala Lumpur (RM320 million), D’Hill @ Sunway Damansara in Kota Damansara (RM220 million), Sunway Artessa in Wangsa Maju (RM300 million) and Jernih Residence in Kajang (RM270 million).
(The Edge, NST & The Star, 05/03/2021)
JOHOR SET TO BECOME COUNTRY’S LARGEST SOLAR POWER PRODUCER
Johor will soon become a major producer of environmentally-friendly energy with the opening of a solar power plant in Pengerang, Kota Tinggi. The RM1.4 billion power plant, named the “Sultan Ibrahim Solar Park”, is touted to be the biggest of its kind in Southeast Asia with a combined installed capacity of 450 megawatts. It will also be the region’s largest solar energy storage system when fully commissioned by 2023. The official ground-breaking ceremony will be held on 23rd March 2021 at the project site in Pengerang.
(NST, The Sun & The Star, 01/03/2021)
CORONATION SQUARE IS JOHOR BAHRU’S KLCC
The striking 35-storey Bank Rakyat Tower that is taking shape in the skyline of Johor Bahru is part of Coronation Square, a lead project of the prestigious Ibrahim International Business District (IIBD) of Johor Bahru. The tower is almost 75% completed and will be fully completed by the end of 2021. The progress of Coronation Square is linked to the Rapid Transit System (RTS) that will take commuters to Singapore in just five minutes. For pedestrians, the development provides sheltered aerial walkways linked directly to both RTS and the Immigration Complex in JB Sentral, which is a 20-minute walk. The city’s transformation plan would no doubt have an impact on the property scene in JB. Coronation Square, which was launched by the Sultan of Johor in 2015, is a mixed integrated development comprising a retail shopping mall and six high-rise towers (two blocks of high-rise serviced apartments, two office towers, a hotel and medical suites). According to Johor Corporation (JCorp), the medical suites will be managed by JCorp and KPJ Healthcare Bhd. Besides offering modern medical services, where there will be traditional and alternative treatments like Ayurveda and acupuncture by international brand operators, apart from providing various healthcare facilities. The target market for the medical suites will comprise locals and Asean nationalities, particularly from Singapore and Indonesia, and those from the Middle East, as well as China, South Korea and Japan. The retail shopping mall has seven levels of retail space of approximately 1.2 million sq. ft. The entire development spans seven years from 2017 to 2023.
(The Star, 01/03/2021)
PENANG RECORDS APPROVED MANUFACTURING INVESTMENTS OF RM14.1 BILLION IN 2020
Penang recorded total approved manufacturing investments of RM3.5 billion in 4Q20, bringing cumulative inflows to RM14.1 billion in 2020. InvestPenang said the investment achievement for 2020 was the second highest in its history, which was only short of 2019’s historical high of RM16.9 billion, reflecting investors’ continued confidence in Penang as a sustainable investment location. Of the RM14.1 billion, RM10.6 billion or 75%, was made up of foreign direct investment (FDI), making Penang the third highest manufacturing FDI recipient in Malaysia, attributed to projects from DexCom Inc, Ultra Clean Holdings and Bruker Malaysia, among others. Meanwhile, Domestic Direct Investment (DDI) in Penang amounted to RM3.6 billion in 2020, a testament to Penang’s robust industrial ecosystem as a platform in which local players can participate and thrive. InvestPenang denoted that the total approved manufacturing investments were primarily related to the State’s key promoted industries, such as the Electronics & Electrical (E&E), machinery and equipment, and scientific and measuring equipment (including medical devices) industries. In 4Q20, InvestPenang denoted that the State recorded DDI of RM1.8 billion, while FDI was at RM1.7 billion.
(The Edge, 05/03/2021)
GREATECH BUILDING SECOND FACTORY
Greatech Technology Bhd’s wholly owned subsidiary, Greatech Integration (M) Sdn Bhd, is constructing a second factory with a build-up area of 230,000 sq. ft. at the Batu Kawan Industrial Park in Penang. The move is to save on rent and reduce time wastage from travelling across its facilities in various locations. The building comprises a double-storey detached office block and an annexed single-storey factory building that would be utilised for the designing, assembly and administrative functions.
(The Star & The Edge, 04/03/2021)
ADVANCECON AWARDED RM13.54 MILLION SARAWAK PROJECT
Advancecon Holdings Bhd has secured its single-largest earthworks contract worth RM153.5 million to undertake earthworks in Samalaju Industrial Park, Bintulu, Sarawak, via its associate Advancecon (Sarawak) Sdn Bhd. The contract runs for 12 months from site possession on 15th March 2021 up to the projected completion on 14 March 2022.
(The Sun, 02/02/2021)