MAY WHOLESALE, RETAIL TRADE SALES GROW 28.3% YEAR ON YEAR

Malaysia’s wholesale and retail trade registered a 28.3% year on year growth in sales value to RM108.3 billion in May 2021 against a contraction of 23.8% in May 2020. The growth was largely contributed by the wholesale trade sub-sector, which increased 31.2% year on year to RM53.4 billion. Subsequently, retail trade expanded 17.3% year on year to RM43.3 billion while motor vehicles also showed a significant increase of 71.1% year on year to RM11.6 billion.

(The Edge Markets, 12/07/2021)


IPI RISES 26% IN MAY 2021, ALL INDICES RECORD INCREASE

The Industrial Production Index (IPI) surged 26% year on year in May 2021. All indices recorded an increase, with the manufacturing index expanding 29.8%, the mining index up 20.7% and the electricity index rising 7.9%.

(The Edge Markets & The Star, 12/07/2021; NST, 13/07/2021)


EXPORT GROWTH TO REBOUND ON STRONGER EXTERNAL DEMAND

According to the Ministry of International Trade and Industry, Malaysia’s  export growth is projected to rebound by 8.2% in 2021 driven by the improvement in external demand. Trade for the first five months of 2021 grew by 26% year on year to RM867.4 billion.

(The Star, 13/07/2021)


MONTHLY WAGES DECLINED 9% IN 2020 DUE TO PANDEMIC

Mean monthly salaries and wages declined 9% to RM2,933 in 2020 from RM3,224 in 2019 due to strict restrictions imposed as a result of the ongoing Covid-19 pandemic. The decline was the first that was registered since 2010 as the labour market experienced uneven momentum following the health crisis and economic consequences.

(The Edge Markets & The Star, 14/07/2021)


TRANSFORMATION INTO LOW CARBON CITIES, DEVELOP LOCAL GREEN ECONOMY

The transformation of cities in Malaysia into low-carbon cities will help develop the local green economy, create jobs and attract domestic and international investments. Among the sectors that will benefit from the effort are the sustainable energy sector, low carbon mobility, waste management and recycling and water efficiency. To systematically strengthen the implementation framework of low carbon initiatives and achieve a significant carbon emission reduction target, the National Low Carbon Cities Master Plan was launched to provide complete guidelines for State Governments and Local Authorities in developing low carbon cities in their areas.

(The Edge Property, 13/07/2021)


NEW ROAD FROM JERANTUT TO DUNGUN

A rural road will be built across the Pahang-Terengganu border to  connect Jerantut and Dungun. The 52.55 kilometre rural road will span from Jalan Kampung Pasir Raja, Hulu Dungun in Terengganu to Kampung Mat Daling, Jerantut in Pahang, of which 40 kilometres spans from the Pahang-Terengganu border to Kampung Mat Daling. The newly paved road will be a single carriageway with a width of 6.5 metres. The project involves the construction of 12 bridges, including 10 bridges between the Pahang-Terengganu border and Kampung Mat Daling.

(The Star, 12/07/2021)


AUTOMOTIVE, EDUCATION VENTURES TO ‘COMPLEMENT’ SUNSURIA’S PROPERTY DEVELOPMENT BUSINESS

Sunsuria Bhd has decided to  diversify its business by venturing into  the automotive and education sectors. The joint ventures with IAT Automobile Technology Co Ltd and Victoria Education Sdn Bhd are part of the group’s strategy to enhance the value and vibrancy of Sunsuria City, its 525-acre integrated township development in Salak Tinggi, Putrajaya South. Currently, Sunsuria City has approximately 180 to 200 acres of land yet to be developed.

(The Edge Property, 10/07/2021)


NEXGRAM TO ACQUIRE 10.03-HECTARE LAND IN MELAKA

Nexgram Biomedic Sdn Bhd has proposed to acquire a 10.03-hectare leasehold land in Melaka from Melaka State Development Corporation for RM61.53 million.

(The Edge Markets, 12/07/2021)


BANDAR MALAYSIA AGREEMENT LAPSED ON 6TH MAY 2021

The restated and amended share sale agreement for the acquisition of 60% shares in Bandar Malaysia Sdn Bhd (BMSB) had lapsed on 6th May 2021, since the conditions precedent in the agreement were not fulfilled by the respective parties within the condition precedent period. The deal for the sale of 60% shares of BMSB to IWH CREC Sdn Bhd was executed on 17th December 2019.

(The Edge Markets, 14/07/2021; The Sun, NST & The Star, 15/07/2021)


SAND NISKO SECURES RM35 MILLION CONTRACTS

Sand Nisko Capital Bhd has secured seven letters of award for construction works involving multiple projects with an aggregate contract value of RM34.52 million from Shantawood Sdn Bhd. The projects are located in Tanjong Minyak, Bukit Rambai and Krubong in Melaka.

(The Edge Markets, 14/07/2021 & The Star, 15/07/2021)


REGAL ORION WORKS ON DATA CENTRES WITH HEITECH PADU

Following a Joint Venture between Regal Orion Sdn Bhd and Heitech Padu Bhd which was signed in March 2021, the development of a Tier-4 data centre in Bukit Jelutong, Shah Alam is currently being planned for. Regal Orion will be responsible for the construction and financing of the data centre with Heitech Padu as the landowner of 2.71 acres. Construction of the first phase of the data centre is slated to commence in September 2024. Regal Orion is also building a data centre in Techpark@Enstek in Labu, Negri Sembilan. However, the Covid-19 pandemic has affected the development of the data centre and its completion date has been postponed to 1st January 2023.

(The Star, 10/07/2021)


INDUSTRONICS LAUNCHES ONLINE PLATFORM

Industronics Bhd will tap into the pre-owned luxury watch market with the launch of its luxury watch e-commerce platform, watch-exchanges.com (WatchExchange). Industronics, with its team of watch appraisers, will set up offices in China, Hong Kong, Japan, Singapore, Malaysia, the United States, Canada and Europe, where sellers from all over the world can visit for physical appraisal of their watch collections.

(The Star, 13/07/2021; The Sun & NST, 14/07/2021)


MR DIY HAS A NEW STORE CONCEPT TO BOOST SALES

 MR DIY Group (M) Bhd’s expansion strategy is still on track despite the pandemic as it had recently introduced a brand new store concept which has been implemented in certain rural areas. Known as “MR DIY Express”, MR DIY Group has introduced smaller 2,000 sq. ft. stores compared with the larger sizes of its flagship brand MR DIY, whereby stores range between 9,000 sq. ft. and 10,000 sq. ft. To date, the group has set up four of the smaller stores in Kelantan, Negri Sembilan, Malacca and Johor.

(The Star, 10/07/2021)


CREATIVE LAB TO ENLARGE FOOTPRINT

Creative Lab Sdn Bhd (a three-dimensional (3D) interior design service provider) has announced plans to expand its operations in countries with an already established presence. Currently, the company has 42 outlets across Malaysia, 2 in Vietnam, 3 in Indonesia and 1 in the Philippines. Moving ahead, Creative Lab also aims to secure 11 franchise outlets by the end of 2021. The franchise programme package includes an initial franchise fee of RM40,000 for five years and an initial outlet set up of RM210,000, which is estimated based on outlet size of not more than 1,500 sq. ft.

(NST, 12/07/2021)


MORE RETAILERS TURNING TO E-COMMERCE PLATFORMS

E-commerce has become a saviour for retailers reeling from the industry’s worst performance in more than 30 years. The switch to e-commerce is inevitable as sales are down more than 90% and many stores are on the verge of pulling down their shutters for good. Most of the non- essential retail sales outlets have been shut in the past 18 months as the nation grapples with an invisible enemy. With many brick and mortar stores not allowed to open for business, retailers have turned to e-commerce to survive but the increase in online sales has barely made up for the losses. Competition among online vendors is intense and retailers are expected to offer huge discounts on their goods.

(The Sun, 15/07/2021)


MALAKOFF UNIT TO AQUIRE KLANG LAND

Alam Flora Environmental Solutions Sdn Bhd (Malakoff Corp Bhd’s indirect subsidiary) has proposed to acquire 5.77 acres of leasehold industrial land together with two single-storey detached factory warehouses in Klang, Selangor from The New Straits Times Properties Sdn Bhd for RM25 million.

(The Edge Markets, 15/07/2021 & The Star, 16/07/2021)


NESTCON SECURES RM31 MILLION CONTRACT

 Nestcon Bhd has secured a RM31.34 million contract to carry out rock stabilisation works at a mixed development on a 61-acre site in Damansara Perdana. The development includes the construction of 20 blocks of office towers, 5 blocks of serviced apartments and SOHO, 6 blocks of serviced apartments and affordable homes, business spaces, hotel and private school. Slated to commence on 21st July 2021, subject to the lifting of the Movement Control Order, the contract will be completed within 18 months from the date of commencement.

(The Edge Markets, 14/07/2021 & The Star, 15/07/2021)


IREKA SECURES RM124.4 MILLION JOB FROM WANLAND METRO

Ireka Engineering and Construction Sdn Bhd has accepted a conditional letter of award from Wanland Metro Sdn Bhd for a construction project in Terengganu for RM124.39 million. The contract includes the construction and completion of two 16-storey apartment blocks, single- storey terraced houses, double-storey shophouses, a food court, kindergarten, surau, multipurpose hall, and all infrastructure and ancillary works for the development in Dendung, Besut district. Slated to commence on 1st August 2021, the contract period is for 208 weeks.

(The Edge Markets & The Star, 15/07/2021)


IMPIANA HOTEL TO JOINTLY DEVELOP RM189 MILLION LUXURY RESORT IN TIOMAN

Impiana Hotels has entered into a deal with Impiana Tioman Sdn Bhd, Selo Tioman Resort Holdings Ltd and Impiana Selo Tioman Resorts Sdn Bhd, to jointly develop a luxury resort in Tioman Island valued at RM188.6 million. Slated to be completed within 24 months from the date of commencement of construction works, the project comprises villas and other facilities on 5 contiguous parcels of land measuring 12.58 acres.

(The Edge Markets, 12/07/2021 & The Star, 13/07/2021)


HOTEL MAY BECOME VACCINATION CENTRE

More than two years after its closure on 28th February 2019, Grand Seasons Hotel Kuala Lumpur’s premises is likely to be turned into a Covid-19 vaccination centre (PPV). Located on Jalan Pahang, the 40-storey building with over 600 rooms is expected to be the first former hotel in Kuala Lumpur to operate as a PPV. As part of a trial run, the venue is currently being used as a soup kitchen feeding the city’s poor and frontliners. It will also double up as a transit shelter for city folk and a soup kitchen under an initiative called RumahPrihatin@GrandSeasons.

(The Star, 14/07/2021)


BERJAYA CORP PLANS HOSPITALITY REIT

Berjaya Corporation Bhd is planning to establish a Hospitality Real Estate Investment Trust (REIT) in the long run, which focuses only on five-star hotels owned by the group instead of those it operates. The operating model of the group’s hospitality division is now gradually shifting towards an owner model rather than an operator model.

(The Edge Markets & The Star, 15/07/2021; The Sun, 16/07/2021)


MALAYSIA REMAINED THE BEST MUSLIM-FRIENDLY HOLIDAY DESTINATION

According to the MasterCard-CrescentRating Global Muslim Travel Index 2021, Malaysia has remained top-ranked in the list of best Muslim-friendly holiday destinations for Muslim travellers since the launch of the index in 2015.

(NST, 15/07/2021)


SUBANG AIRPORT TERMINAL 2 TO BE REDEVELOPED INTO HANGARAGE

Terminal 2 of the Sultan Abdul Aziz Shah Airport (Subang Airport) will be redeveloped into a state-of-the-art hangarage for business aviation, driven by demands from local champions. The existing tenants, Berjaya Air Sdn Bhd and Smooth Route Sdn have committed to take up the additional space offered at the new facility.

(The Edge Markets & The Star, 14/07/2021; The Sun & NST, 15/07/2021)


CAGAMAS ISSUES RM300 MILLION ISLAMIC COMMERCIAL PAPERS

Cagamas Bhd (the National Mortgage Corporation of Malaysia) has announced its issuance of RM300 million three-month Islamic Commercial Papers (ICPs). The ICPs will be issued under the Islamic Commodity Murabahah structure, whereby proceeds from the issuance will be used for the purchase of Shariah-compliant assets.

(The Edge Markets & The Star, 13/07/2021; NST, 14/07/2021)


THREE-PRONGED STRATEGY TO ATTRACT LOCAL, FOREIGN INVESTORS

Iskandar Regional Development Authority (IRDA) is looking at new strategies to attract domestic and foreign investors during and after the Covid-19 pandemic. The region is ready to adopt the new normal through three phases of development by building on its new expansion area, harnessing big data and focusing on newly-promoted sectors such as modern farming. Under the Comprehensive Development Plan (2006-2025), Phase I was about planning and building the foundation, while Phase II was about strengthening and generating growth. Phase III, which is about sustaining and innovating, would prove to be the toughest yet most rewarding phase.

(The Star, 12/07/2021)


BMJ TO INTRODUCE 10 MORE ROUTES

The Bas Muafakat Johor (BMJ) services will be expanded in early 2022 with the addition of 10 new routes to reduce people’s burden and continue to provide convenient and effective public transport network throughout the State. The 10 new BMJ routes are Terminal Kluang-Pekan Kahang, Terminal Maharani-Simpang Jeram-Jorak, Terminal Mersing-Endau, Terminal Kota Tinggi-Tanjung Sedili, Hentian Labis-Bekok-Pekan Chaah, Renggam-Kluang, Perhentian Bas Yong Peng-Taman Sri Wangi-Taman Kota Impian-Taman Berjaya-Perhentian Bas Yong Peng, Perhentian Bas Yong Peng-Kangkar Baru, Terminal Bas Tangkak-ILP Tangkak and Terminal Bandar Pontian-Kukup-Tanjung Piai.

(The Sun, 13/07/2021)


DHL SETS UP HUB IN JOHOR WITH ISKANDAR INVESTMENT

Global logistics company DHL, in collaboration with Iskandar Investment Bhd (IIB), has set up the first DHL applied analytics hub in Johor. Located in Medini, Iskandar Puteri, the hub is DHL’s first dedicated office outside of Singapore to host business development and networking meetings in order to ideate, incubate and create cutting-edge analytics projects for DHL’s clients and corporations based in Iskandar Malaysia.

(The Star, 14/07/2021)


IBRACO SECURES RM169 MILLION TURNKEY CONTRACT

Ibraco Construction Sdn Bhd has secured a turnkey engineering, construction and commissioning contract worth circa RM169 million from Bumia Sdn Bhd for houses under the “Rumah Pertiwi Scheme” in Kuching, Sarawak. The project shall be carried out in four phases over an indicative construction period of five years from the approval of development plans, which is tentatively expected to be approved by the end of 3Q21.

(The Edge Property, 10/07/2021)


+603-21612522      

All rights reserved (C) 2019

Jones Lang Wootton