RM16 BILLION INVESTMENTS SECURED YEAR TO DATE
In 2021, the Northern Corridor Implementation Authority has secured investments worth more than RM16 billion despite the Covid-19 pandemic. Hong Seng Industries Sdn Bhd and LTS Logistics Sdn Bhd agreed to inject RM1.55 billion into the Kedah Rubber City, the first dedicated Rubber Industrial Park in the country.
MAY 2021 CPI ROSE 4.4% TO 123.1 LED BY TRANSPORT
The Consumer Price Index (CPI) rose 4.4% year on year to 123.1 in May 2021 versus 117.9 in May 2020. The increase in the overall CPI was due to the lower base effect in 2020. The transport index recorded the most significant growth at 26%, followed by housing, water, electricity, gas and other fuels (3.2%), furnishings, household equipment and routine household maintenance (2.1%) and food and non-alcoholic beverages (1.5%).
RESTRICTIONS STILL IN PLACE UNTIL CASES DROP BELOW THE THRESHOLD
Phase One of the Movement Control Order (MCO) under the National Recovery Plan will be maintained until the three key threshold value indicators are achieved. The transition to Phase Two would take into account three key threshold value indicators, which include the number of daily Covid-19 cases dropping to below 4,000; the rate of bed usage in Intensive Care Units (ICU) is at a moderate level, and 10% of the population has received two doses of the vaccine jabs.
(The Edge Markets & The Star, 27/06/2021; NST & The Sun, 28/06/2021)
MALAYSIA’S MAY 2021 EXPORTS INCREASE 47.3% YEAR ON YEAR
Malaysia’s exports expanded 47.3% year on year to RM92.3 billion in May 2021, driven by electrical and electronic products (+RM8.1 billion); rubber products (+RM3.6 billion); petroleum products (+RM3.0 billion); and palm oil and palm oil-based agriculture products (+RM2.2 billion). Other segments that posted strong growth were manufacturers of metal (+RM2.1 billion); chemical and chemical products (+RM1.6 billion); crude petroleum (+RM1.1 billion); machinery, equipment and parts (+RM985.7 million); and liquefied natural gas (+RM929.1 million).
Imports in May 2021 surged 50.3% year on year to RM78.6 billion, outpacing export growth for the first time since April 2020. Increases in imports were noted for electrical and electronic products (+RM4.9 billion); petroleum products (+RM4.3 billion), chemical and chemical products (+RM2.7 billion); machinery, equipment and parts (+RM1.8 billion); iron and steel products (+RM1.6 billion); manufacture of metal (+RM1.5 billion); rubber products (+RM1.2) and transport equipment (+RM1.1 billion).
Malaysia’s total trade in May 2021 expanded by 48.7%, reaching RM170.9 billion, compared with May 2020. The trade surplus surged 32.3% to RM13.7 billion. However, in line with the uncertainty in domestic economic activity, the month on month performance of exports, imports, total trade and trade surplus showed declines of 12.6%, 7.8%, 10.4% and 32.5% respectively.
(The Edge Markets, 28/06/2021 & The Sun, 29/06/2021)
MALAYSIAN GOVERNMENT UNVEILS RM150 BILLION “PEMULIH AID” PACKAGE
An aid package worth RM150 billion has been unveiled to help the people, businesses, and those vaccinated under Phase One of the National Recovery Plan (NRP) to curb the spread of Covid-19. The Government will also provide a total amount of RM10 billion in direct fiscal injection. The National People’s Well-Being and Economic Recovery Package (PEMULIH) package outlines three main focuses, namely to continue upholding the public’s agenda, supporting businesses and expediting the national vaccination programme. The various forms of assistance are highlighted below:
|BPR and BKC cash assistance||Bantuan Prihatin Rakyat (BPR)
||Bantuan Khas Covid-19 (BKC)|
|Employment and income loss assistance schemes||
|Food basket programme and price control mechanism||
|Electricity bill discounts and mobile internet data||
|Business / SMEs||
|Tourism- related businesses||
|Other business support||
|Increasing vaccination efforts||
(The Edge Markets & The Star, 28/06/2021; NST & The Sun, 29/06/2021)
NATIONAL IR4.0 POLICY A ROADMAP FOR THE FUTURE
The national policy on the Fourth Industrial Revolution (IR4.0) aims to steer socio-economic transformation through the use of technology. The five foundational technologies of the IR4.0 policy include artificial intelligence, the Internet of Things, blockchain, cloud computing and big data analytics, and advanced materials and technologies.
(The Star & The Edge Markets, 01/07/2021; NST, 02/07/2021)
SELANGOR, KUALA LUMPUR AREAS PLACED UNDER EMCO
The Enhanced Movement Control Order (EMCO) will be imposed in 34 mukims in Selangor and 14 localities in Kuala Lumpur for 14 days, starting on 3rd July 2021 to 16th July 2021.
(The Edge Property, 01/07/2021; The Star, The Sun & NST, 02/07/2021)
YUGO LAUNCHES MORE CHARTER ROUTES IN S-E ASIA EXPANSION DRIVE
Singapore-based Yugo Global Industries Pte Ltd recently released its newest charter routes in Thailand, Cambodia, Malaysia and the Philippines. Yugo is the first air mobility platform that connects Southeast Asia to the whole of Asia Pacific.
RELOCATION ALLOWED UNDER NATIONAL RECOVERY PLAN PHASE 1
Relocation to strata and landed properties are allowed during Phase One of the Movement Control Order (MCO) under the National Recovery Plan. Property owners must first obtain police permission for themselves and the mover company involved.
(The Sun, 02/07/2021)
NAZA TTDI PLANNING 6 LAUNCHES
Naza TTDI Sdn Bhd plans to launch six property development projects between 2022 and 2024, with a gross development value of RM3.7 billion. Out of the six projects, two development in “KL Metropolis” that Naza TTDI plans to launch is the “Met 7”, a serviced residence and “Met 9”, a six-star hotel. The development of “Met 7” is expected to commence after the completion of “Met 1” which is scheduled in 2021.
MAH SING RECORDS RM650.5 MILLION SALES IN FIRST FIVE MONTHS OF 2021
Mah Sing Group Bhd achieved property sales of RM650.5 million in the first five months of 2021. The developer is optimistic about achieving its target through several planned launches in 2H21. Amongst the upcoming planned launches include Tower E of “M Vertica”, Cheras, remaining phases of “M Arisa”, Sentul, Phase 2 of “Cerrado Suites” and Tower B “Sensory Residences” at Southville City in Bangi, Phase 3 of “M Aruna” and “M Panora” in Rawang, “M Senyum” in Bandar Baru Salak Tinggi, Sepang and double-storey link homes in “Meridin East”, Johor Bahru.
(The Edge Property, 30/06/2021)
JIAKUN EXPECTS TO RIDE ON STRONGER DEMAND FOR PROPERTY
Jiakun International Bhd is upbeat about the property sector due to the stronger demand ahead, driven by improved economic outlook and the record low-interest-rate environment. The developer aims to increase its landbank to circa 49 acres by the end of 2021 in anticipation of economic recovery, supported by the National Covid-19 Immunisation Programme and positive factors driving housing demand. Meanwhile, its “Amani Residences” in Puchong, Selangor, is 95% completed and units are expected to be handed over by 4Q21.
TRINITY LINES UP THREE LAUNCHES WITHIN A YEAR
Trinity Group Sdn Bhd will launch three property projects with a combined Gross Development Value (GDV) of RM1.12 billion within a year, namely, “Trinity Wellnessa” and “Trinity Enlivea” in Ampang, and serviced apartments in Kinrara, Puchong. In July 2021, the group will launch “Trinity Wellnessa” in Beverly Heights, Ampang North. Located on a 3.9-acre site, the two 30- storey freehold towers are set to be completed in 2025. Priced from RM563,888, the 463 units will have three or four bedrooms and two or three bathrooms with built-ups of 1,008 sq. ft. and 1,286 sq. ft., with the latter being dual-key units. There will also be an exclusive 2,585 sq. ft. 5+1-bedroom, 5+1-bathroom penthouse.
(The Sun, 02/07/2021)
NESTCON SECURES RM230 MILLION CONSTRUCTION JOB
Nestcon Builders Sdn Bhd has secured a RM230 million contract from Mightyprop Sdn Bhd to undertake earthworks, foundation, substructure, main building works and infrastructure for the construction of a 46-storey serviced apartment building comprising 593 units, four-storey podium with other relevant facilities, 27 retail lots and five-storey basement car park in Damansara Perdana, Selangor. Slated to commence on 1st July 2021, the construction is expected to be completed within 40 months.
(The Edge Markets, 30/06/2021; The Star & The Sun, 01/07/2021)
I-BHD EXPECTS AN 80% TAKE-UP RATE FOR I-CITY’S CORPORATE TOWER
I-Bhd expects an 80% take-up rate for its recently completed corporate tower at the flagship i- City Golden Triangle in Shah Alam due to the impending relocation of regional financial institutions. In addition to the company’s first Tier-3 data centre operating since 2008 that is currently fully tenanted, I-Bhd is planning to add two more data centres accommodating 100,000 sq. ft. each to meet the surging needs of cloud computing facilities. In 2H21, the group will see the completion of “DoubleTree by Hilton” and “Hill10” development whereby “DoubleTree by Hilton” is slated to welcome its guests in 2022.
(The Star & The Edge Markets, 29/06/2021; NST, 30/06/2021)
HONG SENG TO LEASE LAND, TO INVEST IN NITRILE BUTADIENE LATEX PLANT
Hong Seng Industries Sdn Bhd (HIS) has entered into an RM44.69 million agreement with Northern Corridor Implementation Authority to sublease 503.31 hectares of industrial land located in the Kedah Rubber City, Padang Terap, Kedah for a period of 60 years, with an option to renew for a further 30 years. HSI wants to build and operate a nitrile butadiene latex manufacturing plant with a planned capacity of 480 kilotonnes per annum.
(The Star & The Edge Property, 26/06/2021)
MOTAC ESTABLISHES A HOLISTIC FRAMEWORK FOR TOURISM RECOVERY PLAN
The Ministry of Tourism, Arts and Culture (MOTAC) has prepared a holistic framework for the Tourism Recovery Plan in three phases to help the Malaysian Government speed up the vaccination programme nationwide and subsequently make the Covid-19 Free Destination Programme a success. For the first phase, Langkawi was selected as a pilot travel destination for the programme. The other proposed destination for the programme was Kuching. For the second phase, MOTAC will expand the programme to the country’s most popular resort islands such as Redang, Perhentian, Pangkor and Tioman. The third phase involves engagement sessions between the Ministry and all State Governments to select tourist attractions that could be highlighted.
(The Edge Markets, 26/06/2021)
DOMESTIC TOURISM SPENDING DECLINED -60.8% IN 2020
Domestic tourism expenditure in 2020 contracted by -60.8% to RM40.4 billion, compared with RM103.2 billion in 2019, which was the first decline since 2008 when the Department of Statistics Malaysia started collating statistics from the Domestic Tourism Survey. Domestic visitor arrivals were down -44.6% with 131.7 million visitors, compared with 239.1 million visitors in 2019. The poor performance in domestic tourism in 2020 was driven by a fall in daily tourists and visitor spending by -65.9% and -51.1%, respectively.
(The Edge Property, 01/07/2021; The Star & NST, 02/07/2021)
HOTEL ISTANA CLOSES DOWN FOR GOOD ON 1ST SEPTEMBER 2021
Hotel Istana Kuala Lumpur on Jalan Raja Chulan, Kuala Lumpur is set to cease operations on 1st September 2021. Opened in 1992, the 23-storey five-star hotel is closing its doors due to the Covid-19 pandemic that had wrecked the economy. The hotel had lost its competitive advantage over the years with the insurgence of new or neighbouring hotels and serviced apartments. The situation has been aggravated by the pandemic which continued to impact the hotel industry and its ability to achieve normality.
(The Star & The Edge Property, 30/06/2021; The Sun, 01/07/2021)
PAHANG TO DEVELOP AEROSPACE CITY IN GEBENG
Pahang State Government plans to develop an Aerospace City in a 5,042-hectare area in Gebeng beginning 2022, which is scheduled to be ready in 2026. The high-impact project would also involve the transfer of the existing airport to a new area and subsequently support the 3rd National Physical Plan as a national integrated transit development (air, land and sea) in the area. Once completed, the project would also have an international airport and world-class aircraft maintenance, repair and overhaul services. In addition, the Aerospace City would provide industrial sites for aviation-related industries that could attract the interest of major companies in the manufacturing of aircraft and aircraft components.
(The Edge Markets, 01/07/2021)
PNB MERDEKA VENTURES LAUNCHES COMMUNITY GRANTS PROGRAMME
PNB Merdeka Ventures Sdn Bhd has launched a community grants programme to foster an integrated, thriving and culturally rich neighbourhood within the Merdeka 118 precinct in downtown Kuala Lumpur. The Merdeka 118 Community Grants Programme aims to empower the local community and build resilient businesses, institutions and community organisations. This comprises five key locations, namely the Petaling Street Precinct, Jalan Hang Tuah Precinct, the Sports Quadrant (which includes Stadium Merdeka, Stadium Negara, Malaysian Association of Basketball, Stadium Chin Woo, The Olympic Council of Malaysia and Sports Museum), Kampung Attap and Pudu Precincts.
(The Edge Markets, 28/06/2021 & NST, 29/06/2021)
INVESTMENT OPPORTUNITIES IN MODERN FARMING
Iskandar Regional Development Authority aims to attract investors and partners to invest in modern farming in the country’s first economic growth corridor. Modern farming would be the new sector promoted, joining nine existing ones in Iskandar Malaysia. The nine are electrical and electronics, petroleum and oleo-chemical, food and agro-processing, logistics, tourism, creative, healthcare, education as well as financial and business processes.
From January to April 2021, RM7.33 billion investments were implemented in the region including transport equipment, electronics and electrical, and machinery and equipment from China, Japan and Singapore. To date, Iskandar Malaysia has recorded RM341.4 billion in total cumulative investments since its inception on 4th November 2006, of which 61% amounting to RM209.9 billion have been implemented. The projects were led by the manufacturing sector followed by logistics, tourism, creative services and healthcare services.
(The Star, 28/06/2021)
RTS LINK HAS AWARDED PESTECH A CONTRACT FOR RM64.9 MILLION
RTS Operations Pte Ltd has awarded Pestech Technology Sdn Bhd a RM64.95 million contract for traction power supply of Rapid Transit System (RTS) Connection Asset for the 4km RTS link between Malaysia and Singapore. To commence immediately and slated for completion by 30th September 2026, the contract is for design, manufacturing, supply, delivery, installation, testing and commissioning, interface, warranty, and other associated operations.
(The Iskandarian, 28/06/2021)
PHASE 1A OF PENANG CRUISE TERMINAL EXPANSION COMPLETED
The first phase of the Swettenham Pier Cruise Terminal expansion project has been completed with the berthing area now bigger by about 30%. Besides the solid deck wharf being extended 220 metres towards the north of the terminal, the breasting and mooring dolphin had increased by 50 metres and 68 metres. Phase 1A was completed on 31st May 2021 and is expected to obtain the Certificate of Completion and Compliance (CCC) by the end of July 2021. Two new link bridges will be constructed to connect the breasting and mooring dolphin.
Three other phases involving preliminary upland and terminal improvement are set to be completed within the next five years. Phase 1B of the development in connection with the berth expansion is the narrowing of concourse and installation of gangways or boarding bridges to improve the berthing of vessels. This phase is expected to commence in 2023 and is to be completed within a year. Phase 2 and 3 for terminal improvement will commence after the completion of Phase 1A and 1B.
(The Star, 26/06/2021)