MALAYSIA IN NEGOTIATIONS TO UPGRADE ASEAN-CHINA FREE TRADE AREA — MITI
The Edge Market, 18/02/2023
The negotiations to upgrade the Asean-China Free Trade Area (ACFTA) will strengthen the existing close ties, both at the bilateral and regional levels. The negotiations are expected to be completed within two years. Malaysia’s participation in the ACFTA negotiations is crucial to enhance the cooperation and efforts to make ACFTA more inclusive, updated and comprehensive. The inclusion of four new sectors — the digital economy, trade and sustainable development/green economy, competition and consumer protection, and micro, small and medium enterprises — would not only be mutually beneficial to all participating countries, but also demonstrate the importance of maintaining a stable, open and transparent trading environment that would facilitate trade and investment within the region. Malaysia strongly supports the timely upgrade of the ACFTA, which has become an important foundation in strengthening and improving economic relations and cooperation between Asean and China since its implementation in January 2010.
ECONOMIC CORRIDOR AUTHORITIES BAG RM101.43 BILLION IN COMMITTED INVESTMENTS IN 2021-2022 – RAFIZI
The Edge Market, 21/02/2023
Economic corridor authorities recorded total committed investments of RM101.43 billion with total realised investments of RM64.07 billion from 2021-2022 during the 12th Malaysia Plan (12MP) period. The corridor authorities had also succeeded in creating 206,339 job opportunities and 15,071 entrepreneurial opportunities in the regional economic corridors despite facing the post-pandemic challenges of Covid-19. In line with the strategy outlined under the 12MP, the efforts to attract quality investment through the implementation of projects with high added value, coupled with the use of technology, automation and innovation will continue to be intensified in the regions. During the 11th Malaysia Plan (11MP), the authorities in the five regional economic corridors recorded a total committed investment of RM343.06 billion with a total of RM263.79 billion in total realised investment, in addition to generating 297,480 job opportunities and 27,602 entrepreneurial opportunities throughout the economic corridors.
MALAYSIA’S TRADE IN JANUARY RISES TO RM207.51 BILLION
The Sun, 20/02/2023
Malaysia’s trade performance maintained its upward momentum in January with trade, exports and imports registering the highest monthly value for the month of January. Trade expanded by 1.9% year on year to RM207.51 billion; exports rose by 1.6% to RM112.84 billion and imports were higher by 2.3% to RM94.67 billion. The trade surplus amounted to RM18.16 billion, a decrease of 2.1%, and this marked the 33rd consecutive month of trade surplus since May 2020. The export expansion was bolstered by strong exports of petroleum products, liquefied natural gas (LNG) as well as electrical and electronic (E&E) products. Exports to major trading partners notably Asean and Japan recorded double-digit growth. Compared with December 2022, trade, exports, imports and trade surplus contracted by 11.8%, 14.4%, 8.6% and 35.5% respectively due to shorter working days and long festive holidays.
MITI REVIEWING NEW INDUSTRIAL MASTER PLAN 2030 TO BOOST INDUSTRIAL DEVELOPMENT
The Edge Market, 23/02/2023
The Ministry of International Trade and Industry (MITI) has decided to review the New Industrial Master Plan 2030 (NIMP 2030) to propel industrial development and help Malaysia to achieve high-income status. The revised NIMP 2030 is expected to be completed in 3Q23. The reviewed NIMP 2030 would articulate a set of comprehensive strategies and action plans to ensure synergies at both the policy and industry levels, particularly in creating supportive ecosystems to help catalyse Malaysia’s industrial development into the future.
MALAYSIAN BUSINESSES REMAIN OPTIMISTIC ON BUSINESS CONDITIONS IN 1Q23
The Star, 23/02/2023
Malaysian businesses remain optimistic about the business condition in 1Q23 with the confidence indicator improving to 3.6 per cent from 3.2 per cent in 4Q22. Among the sectors surveyed, services, wholesale and retail trade and industry sectors stayed optimistic about their future business condition, but the construction sector remained pessimistic with confidence indicator of -18.5 per cent for 1Q23 against -29.2 per cent in 4Q22. The confidence indicator for services sector improved to 11.4 per cent in 1Q23 from 9.2 per cent in 4Q22, while for wholesale and retail trade sector grew to four per cent from 1.9 per cent in 4Q22. The industry sector also expected favourable business conditions in 1Q23 with the confidence indicator staying in the positive territory at 1.1 per cent compared with 3.7 per cent in the previous quarter. Moving forward, business perception for 1H23 improved with a net balance of 12.1 per cent against 5.9 per cent for the period of October 2022 to March 2023.
REINTRODUCE HOME OWNERSHIP CAMPAIGN TO SPUR PROPERTY DEMAND
The Edge Market, 18/02/2023
LBS Bina Group Bhd (LBS) has requested for the government to consider reintroducing the Home Ownership Campaign (HOC) to spur demand and further encourage homeownership. In its wishlist for Budget 2023, LBS said the effectiveness of the HOC was evident during its implementation between 2019 and 2021 as it provided more options and price points for potential homebuyers. To assist with homeownership, especially for those in the lower-income households, LBS propose that the government introduce lower financing costs for mortgages or offer rebates of up to 10 per cent to first-time homeowners to ensure that buying sentiment remains. LBS is also hopeful that the government would be able to deliver on their plan to allow the entry of 500,000 foreign workers from 15 countries in 2023 in order to overcome the shortage of labour in various sectors, especially the construction sector. We hope that Budget 2023 will include initiatives such as reducing foreign worker levy while introducing a more efficient and transparent application process to shorten the time for foreign worker approvals. Meanwhile, in view of the delays in the completion of projects due to contractors facing difficulties in managing costs, LBS hopes that the government would consider placing a price cap on raw materials to prevent an exorbitant increase in prices.
PRASARANA: PHASE 2 OF PUTRAJAYA MRT LINE 95% COMPLETED
The Edge Market, 21/02/2023
Prasarana Malaysia Bhd said that work on Phase 2 of the Putrajaya Mass Rapid Transit (MRT) Line is more than 95% completed, and a final test will be carried out at the end of February. Work to complete is being actively carried out through tests by MRT Corp Sdn Bhd officers and engineers, contractors and the Land Public Transport Agency.
KELANTAN ECRL PROJECT PROGRESS EXCEEDS 40%
The Edge Market, 22/02/2023
Construction of the East Coast Rail Link (ECRL) project in Kelantan has exceeded 40%. The ECRL project, spanning 665km and comprising 59 tunnels, includes construction works in four states, namely Kelantan, Terengganu, Pahang and Selangor, and is designed to be free from floods. The ECRL is expected to be operational in January 2027.
WCE TO SELL 40% IN RPSB FOR RM494 MILLION
The Edge Market, 21/02/2023
WCE Holdings Bhd is proposing to dispose of its entire 40% equity interest in Radiant Pillar Sdn Bhd (RPSB) to IJM Properties Sdn Bhd for RM494 million. The bulk of the proceeds will be put towards the West Coast Expressway project, adding that it will also enable the group to save on financing costs, should a similar amount of funds be sourced from other modes of financing or borrowings. The disposal will enable WCE to realise and unlock the value of its investment in RPSB which will give rise to a pro forma gain on disposal of approximately RM245.67million.
STRONG LONG-TERM PROJECT PIPELINE WITH DIVERSIFICATION, SAYS MRCB
NST, 20/02/2023
Malaysian Resources Corporation Berhad (MRCB), a construction and property development company whose largest shareholder is the Employees Provident Fund, will begin work on the six phase 810.57 acre Ipoh Raya integrated industrial park in Perak. It will also launch Residensi Tujuh, a 573 unit high rise residential project in Kwasa Sentral with a gross development value (GDV) of RM325 million, this year. Overseas, it will launch VISTA, a 51 storey residential project with 280 apartment units (GDV: A$391 million) in Gold Coast, Australia, and begin development of The Symphony Centre, its maiden project in New Zealand, featuring a 21 storey mixed development (GDV: NZD452 million), and the refurbishment of Bledisloe House, also in New Zealand (GDV: NZD137 million). In 2022 the most significant contributors to MRCB’s property development and investment division were Sentral Suites in KL Sentral and TRIA 9 Seputeh on Old Klang Road. The development work on Sentral Suites and TRIA 9 Seputeh, the division’s two major property projects, has reached 89% and 88% respectively. MRCB said in a stock exchange filing that the division would continue to focus its marketing efforts on its residential development projects, notably Sentral Suites (GDV: RM1.535 million), TRIA in 9 Seputeh (GDV: RM939 million), and Alstonia in Bukit Rahman Putra (GDV: RM939 million) (GDV: RM248 million). It will also concentrate on selling the last completed unsold homes in the VIVO Residences at 9 Seputeh, the Kalista Park Houses in Bukit Rahman Putra, and the last commercial space at 1060 Carnegie in Melbourne. MRCB, which pioneered Transit Oriented Development (TOD) in Brickfields with the RM18 billion KL Sentral CBD, said its property development revenues are supported by its 1,153 acre urban land bank, which has a GDV of RM33 billion.
VESTLAND SECURES ANOTHER CONSTRUCTION CONTRACT IN SHAH ALAM WORTH RM84 MILLION
The Edge Property, 20/02/2023
Vestland Bhd has secured an RM84 million contract to build a 35 storey service apartment in Shah Alam. The three year contract was awarded by Mercu Majuniaga Sdn Bhd, said Vestland in a bourse filing on 17 February 2023. Vestland also announced two other construction jobs, one in Cameron Highlands and the other in Kuala Lumpur, worth a combined RM200 million. They were awarded to the group by Tafi Industries Bhd.
LKL BUYS EPF DAMANSARA FAIRWAY BUILDING FOR RM24M FOR BUSINESS EXPANSION
The Edge Market, 21/02/2023
LKL International Bhd has proposed to acquire a piece of leasehold land attached with the Employees Provident Fund (EPF) Damansara Fairway building in Selangor for RM24 million cash. LKL’s wholly owned subsidiary LKL Advance Metaltech Sdn Bhd (LKLAM) has entered into a sale and purchase agreement with the EPF board. LKLAM, principally involved in the business of providing medical or healthcare beds, peripherals and accessories expects the acquisition to be completed by 2Q23 to accommodate its business expansion. The property comprises a piece of land measuring approximately 0.6 acre, together with a 12 storey commercial office block and a five storey car park.
NESTCON BAGS RM154 MILLION JOB IN KUALA LUMPUR
The Edge Market & The Star, 21/02/2023
Construction and renewable energy service provider Nestcon Bhd has bagged a RM154 million contract from privately-held property development firm Solaris Ceria Sdn Bhd to build office suites and serviced apartments on Jalan Duta Kiara, Mont Kiara. Nestcon’s wholly owned subsidiary Nestcon Builders Sdn Bhd had accepted a Letter of Award (LOA) from Solaris Ceria for the main building works of one block of 52 storey office suites and serviced apartments. The overall completion for the contract works is 36 months and is expected to be completed by 28 February 2026. Nestcon also announced that Nestcon Builders has aborted plans to undertake construction of an integrated offsite scheduled wastes recovery facility in Kerteh Biopolymer Park, Kemaman, Terengganu. Nestcon Builders had delivered a termination notice to Greenverse Sdn Bhd, confirming mutual agreement to terminate the contract due to the possession of the site for the construction of the works which has yet to be granted in view of the increase in the price of construction materials required for the completion of the proposed project. The LOA was awarded in May 2022.
MAH SING’S PLAN TO GO NATIONWIDE A GOOD MOVE
NST, 21/02/2023
Mah Sing Group Berhad is expanding on a national scale. The developer, which has 52 projects in Greater Kuala Lumpur, the Klang Valley, Penang Island, Johor, and Sabah, is looking to expand into new locations. Mah Sing would look into Seremban, Melaka, and Perak for suitable lands to create affordable landed homes, in addition to Klang Valley, Greater KL, Penang, and Johor for affordable high rises in urban areas and affordable landed homes in suburban areas. Mah Sing has a residual land bank of 1,925 acres as of January 2023, with a remaining gross development value of RM21.8 billion. Mah Sing will continue to prioritise the affordable housing market, offering 94 per cent of its recently launched apartments for RM700,000 or less, and a large share, 60 per cent, for RM500,000 or less.
GIANT OPERATOR DAIRY FARM SELLS GROCERY BUSINESS TO MALAYSIAN COMPANY
The Edge Property, 23/02/2023
DFI Retail Group, which entered the Malaysian market 24 years ago through the acquisition of Giant, has decided to exit the grocery retail industry. The group had entered into an agreement with a Malaysian retail group led by local businessman and entrepreneur Datuk Andrew Lim to sell all of DFI’s food businesses in Malaysia, including Giant. DFI operates a total of 40 Giants, eight Mercatos, two Cold Storages, one TMC and 40 Giant Mini stores. The deal is expected to be completed in early March 2023. DFI has been operating the business in Malaysia through GCH Retail (Malaysia) Sdn Bhd. GCH Retail is 70% owned by DFI and 30% by Syarikat Pesaka Antah Sdn Bhd, a company linked to Negeri Sembilan royalty. A company called Macrovalue Sdn Bhd was incorporated to take over GCH Retail. Macrovalue is equally owned by USP Resources Sdn Bhd and Gyap Holdings Sdn Bhd. The new owners plan to retain all 2,500 staff. GCH, which had aggressively shut stores in Malaysia since 2019, bringing the total number of stores to less than half by 2021, undertook a revamping, resizing and repositioning exercise to return to the black. It also started opening Giant Mini.
SUNWAY PROPERTY SETS SALES TARGET OF RM2.3 BIL FOR 2023
The Edge Market, The Star & NST & The Sun, 23/02/2023
Sunway Property has set a sales target of RM2.3 billion for 2023, on the back of achieving RM2.0 billion in sales with an unbilled revenue of RM4.3 billion for its financial year ended 31 December 2022. In Klang Valley, the developer will launch its signature product in Bukit Jalil — Sunway Flora Residences, the first greenRE platinum residential development within the vicinity. Johor can expect two landed developments, Sunway Aviana and Sunway Maple, located in Sunway City Iskandar Puteri, as well as semi-detached homes and bungalows in Sunway Lenang Heights. As for Ipoh, the developer will be launching Sunway Bayu, a flexi-terrace development in Sunway City Ipoh. In Penang, the developer will launch its residential development in Sunway Dora, a mixed development in the established township of Bayan Baru towards the end of February 2023. For its international market, the developer has unveiled Terra Hill, a freehold hillside luxury development built on the site of the old Flynn Park apartment; and will be launching The Continuum in Singapore; and Sunway Gardens Phase 3 in Tianjin, China. Sunway Property will continue to expand its footprint in Singapore and China, while exploring opportunities to acquire strategic landbanks in Southeast Asian emerging markets such as Vietnam and Indonesia. In 2022, the developer completed over RM1.4 billion worth of investment properties in Sunway City Kuala Lumpur, Sunway City Iskandar Puteri and Sunway Seberang Jaya. In 2023, Sunway Property will continue to invest in its integrated townships and will be looking at completing RM1.1 billion worth of investment properties which includes the expansion of Sunway Medical Centre Velocity (Phase 2), Sunway Medical Centre (Phase 4) and Sunway International School (Phase 2) in Sunway City Kuala Lumpur. The developer will also be expanding its extreme park, in tandem with the influx of tourist activities in Johor with the X Park 2 in Sunway City Iskandar Puteri, to include catamaran and horse-riding facilities.
MYRA LAUNCHES BEGONIA DOUBLE-STOREY LINK HOMES IN MYRA GARDENS
The Edge Market, 21/02/2023
Myra by Oriental Interest Bhd has launched Begonia, comprising 91 units of double storey link homes. The project is the second phase of the 70.6 acre Myra Gardens township in Kundang. The RM62.77 million Begonia offers two layouts, namely Venosa and Grandis, which are spread across 7.26 acres. Venosa features four bedrooms and three bathrooms sized from 1,854sq. ft. to 2,121 sq. ft., and a land size from 20’ x 70’ to 25’ x 70’. With a starting price of RM620,000, the intermediate units come with a backyard patio of 10’. Grandis, on the other hand, have four bedrooms and three bathrooms with a built-up of 2,157 sq. ft. and a land size of 20’ x 70’. These units have a starting price of RM808,000. The Grandis units will be within a 100m radius of the township’s clubhouse, with its backlanes directly connecting to the township’s central playground. The release added that Begonia is a gated and guarded development with a two-tier security system and is the closest residential project to the facilities offered in the township. Facilities in Myra Gardens include a clubhouse, gymnasium, swimming pool, multifunctional hall, co-working space and a kindergarten, among others. Nearby amenities in the township and its surrounding area include AEON Rawang, Giant Hypermarket, government schools, and medical facilities. The township is also within close proximity to the recreational forest of Bukit Lagong. In terms of connectivity, Myra Gardens is near the Rawang and Sungai Buloh areas, with easy access to major highways such as the Kuala Lumpur-Kuala Selangor Expressway (LATAR), Guthrie Corridor Expressway and North-South Expressway. Upon completion, Myra Gardens will have a total of 587 landed residential units, and a gross development value of RM440 million across six phases.
CHAMPIONING A MORE EQUITABLE MALAYSIA
The Edge Market, 20/02/2023
Radium Development Berhad (Radium) is currently developing projects worth RM1.24 billion in Kuala Lumpur. Radium launched the R Suites Chancery Residences (or “Chancery”) in early 2023. It has a gross development value of RM521 million. Project completion is anticipated by 4Q25, well ahead the contractual date of 4Q27 approved by the Ministry of Housing and Local Government, demonstrating Radium’s commitment to completing and delivering the project well ahead of time. In addition to 145 hotel rooms and 944 residential suites, Chancery will have two floors dedicated to residents and 32 modern and lifestyle facilities covering 33,000 sq. ft. A Provisional GreenRe Gold Certification has been awarded to Chancery by the Real Estate and Housing Developers Association (Rehda) Malaysia. Furthermore, Radium is planning to launch a second residential development in Salak South/Sungai Besi in 2Q23. The Group has several completed projects in Kuala Lumpur, such as PV9 Residences, and Vista Wirajaya 1 & 2 Residensi Wilayah in Taman Melati, Platinum OUG Residence, Vista OUG Residensi Wilayah and Vista OUG PPAM in Bukit OUG and Platinum Splendor Residence and Vista Semarak in Jalan Semarak.
MAKING IT STELLAR
The Edge Market, 19/02/2023
OCR Group Bhd is planning to launch Stellar Damansara, an upmarket low-density condominium development comprising 88 units in Petaling Jaya, in March. The RM187.9 million leasehold project is located on a 1.49 acre strip between SMK Damansara Jaya and Sungai Kayu Ara and its units come in built-ups ranging from 2,028 sq. ft. to 2,530 sq. ft. There will also be two penthouses measuring 3,990 sq. ft. each. Prices start from RM1.8 million. Stellar Damansara is part of the company’s Luxury Living product series, and the development is designed and conceptualised with multigenerational living in mind.
ONE-ROOM HOMES TO BE BUILT FOR SINGLES ONLY
The Star, 18/02/2023
Single folk in Selangor, especially those below 30, will have a chance to purchase a home for RM114,750 under the Rumah Selangorku 3.0 affordable housing programme. The one-room apartments measuring 450 sq. ft. would be built in Shah Alam, Petaling Jaya and Subang Jaya to provide an opportunity for those working in major cities in Selangor to own a home. Unlike units in people’s housing projects (PPR) which are rented out, these Rumah Selangorku units will only be sold to those who are single. When the person gets married, the unit must be surrendered to the state and the owner will be compensated. This is to ensure that the units are only owned by singles and there is no misuse of the privilege. This concept is also carried out in the United Kingdom and Singapore. Once unit owners get married, they could apply to purchase two- or three-room apartments under the Rumah Selangorku programme. There was no prohibition for singles to buy the two- or three-room apartments, priced between RM153,000 and RM230,000. For the bigger apartments, owners do not need to sell their units once they get married. Currently, married couples and those with families are eligible to buy a two-room apartment (600 sq. ft.) for RM153,000, three-room unit measuring 750 sq. ft. for RM191,250 or the 900 sq. ft. unit for RM229,500. A landed house of 1,200 sq. ft. is priced at RM250,000 under the scheme. These affordable housing projects would be built at transit-oriented development areas. The legal and land title transfer fees as well as two years of maintenance fees would be borne by the developer. The properties are planned to be available within three years time.
MCT TO PAY RM58 MIL FOR 1.57-ACRE LAND IN SEPUTEH FOR RESIDENTIAL PROJECT
The Edge Market, 20/02/2023 & The Star, 21/02/2023
MCT Bhd plans to fork out RM58 million cash to purchase a 1.57 acre parcel of land in Seputeh, Kuala Lumpur, to serve as the site of a proposed residential highrise development carrying a gross development value (GDV) of RM320 million. The group’s wholly owned subsidiary Ardent Residence Sdn Bhd (ARSB) inked an agreement with HPC Development Sdn. Bhd. for the acquisition. Atop the land, the group has proposed to develop “Aetas Seputeh”, a residential development comprising two 38 storey blocks housing 126 units of luxury apartments. It added that the project carries an expected total development cost of RM186 million and a GDV of RM320 million. The project is expected to commence in 2023 and is projected to be completed in 2027. The land’s purchase consideration was agreed on a ‘willing buyer, willing seller’ basis based on, among others, the RM55 million market value of the land as appraised by Knight Frank Malaysia Sdn Bhd on 5 December 2022, and Kuala Lumpur City Council’s approved development order for the two blocks of highrise apartments. The proposal would mark its first land acquisition in Kuala Lumpur and the project would serve as an extension of the group’s premium Aetas series. Aetas Damansara, which is a development featuring spacious luxury apartments, was launched in December 2020 and has seen a positive take-up rate of more than 80% to date.
RUMAH IDAMAN KWASA DAMANSARA COMMENCES CONSTRUCTION FOR FIRST PHASE
The Edge Market, 20/02/2023
The Rumah Idaman Kwasa Damansara affordable housing project commenced construction for its first phase comprising 4,694 apartment units on 17 February 2023. The development is a partnership between Permodalan Negeri Selangor Bhd (PNSB), Kwasa Land Sdn Bhd (a wholly owned subsidiary of the Employees Provident Fund Board — EPF) and Gagasan Nadi Cergas Bhd. There will be four blocks at Plot R4-1, in the first phase. The entire project will have 4,694 affordable Rumah Idaman homes covering two plots (Plot R4-1 and Plot R4-2) with a combined land area of approximately 39.12 acres. The 4,694 homes will have a built-up of around 1,000 sq ft each, with three bedrooms and two bathrooms. The homes will be priced at approximately RM250,000. All units will be furnished with a television set, refrigerator, kitchen cabinets, closets, water heaters and air conditioners. Each unit will also be allocated two car park spaces. The first phase is slated for completion in 2026 and is expected to generate a population growth of 20,000 in Kwasa Damansara. The whole development has a gross development value of approximately RM1 billion. Kwasa Land will allocate 40% of its total housing in the township as affordable home units.
More than 10,000 homes out of the total of 25,000 homes will be affordable homes. Kwasa Damansara covers 2,259 acres of mixed development that will offer various residential, commercial, recreational, and educational offerings. Upon completion, it is expected to have a population of approximately 200,000 residents.
AL-IKHSAN GEARED FOR SPEEDY EXPANSION
The Star, 18/02/2023
Al-Ikhsan is looking at a multi-faceted expansion programme. These include the number of outlets. Geographical reach, market and product segments and partnerships. It added 34 new outlets to its chain in 2022 and targeted 40 outlets this year. In January, it opened four new outlets in Grik, Batang Kali, Denai Alam and a sports warehouse in Seri Iskandar, Perak – bringing the total number of outlets to 181 besides the main cities, the strategy is to establish stores in cities outside Klang Valley and in small towns as well as Sabah and Sarawak.
KK SUPERMART TO EXPAND OPS
The Star, 23/02/2023
Convenience chain store operator KK Supermart & Superstore Sdn Bhd aims to invest RM75 million to open an additional 150 outlets by end 2023. The company plans to open about 12 outlets per month with an investment of RM500,000 per outlet, bringing the total to 830 outlets nationwide this year.
FROZEN FOOD MANUFACTURER OPENS NEW HQ AT KULIM HI-TECH PARK
The Star, 18/02/2023
EB Group, a frozen food manufacturer and distributor known for its star product Ring Roll, held a grand opening at its new headquarters in Kulim Hi-Tech Park, Kedah. EB Group owns three subsidiaries: Everbest Soya Bean Products Sdn Bhd, EB Frozen Food Sdn Bhd (focusing on surimi, chicken, prawns and Alaska pollock) and Hoshay Food Sdn Bhd (focusing on traditional vegetarian and plant-based offerings). EB Group acquired the 871,200 sq. ft. plot at Kulim Hi-Tech Park with a spending of RM250 million. Of the sum, RM210 million was spent on expanding the manufacturing operations, including new technology and machinery to increase quality and productivity. With the expansion, EB Group can now produce 60,000 tonnes of products yearly with a RM1 billion value to support market demand. The remaining RM40 million went towards a five-storey office for up to 600 employees. The aim is to create a comfortable working environment and to attract the young generation to join the group. Besides a canteen that can serve 150 employees, other facilities are a gym with an outdoor yoga deck, a karaoke room and game room for employees, and a breastfeeding room.
RIVERTREE GROUP LAUNCHES RM180 MILLION GDV ESTEEM BUSINESS PARK
NST, 18/02/2023
Rivertree Group has launched its maiden industrial project, known as Esteem Business Park, with a gross development value (GDV) of RM180 million in Klang. Esteem Business Park is located at the Taman Perindustrian Meru Selatan industrial hub and near established townships. The location offers ready connectivity to major expressways, several transport links and multimodal distribution networks across land, air and sea. The project, with a land size of 10 acres, was developed as medium industrial development comprising 39 industrial units, which will be developed over two phases. All units have innovative flexi-space with its super-sized jumbo factory space and come with a goods hoist for easy transfer of goods.
The industrial development will be developed in two phases, where the soft launch of its Phase 1 was done in June 2022 and is targeted to be completed by 2025, while Phase 2 is targeted to be completed in 2026. Rivertree Group also incorporated eco-smart solutions into Esteem Business Park to push forward its sustainability goals. Businesses are becoming more aware of the importance of environmental, social and governance (ESG) compliance and going green. The features include electric vehicle (EV) charger stations, large glazed windows for good ventilation, rainwater harvest system ready, water-saving faucets, flushes and fittings in the toilet and sink areas, and the solar panel to generate recurring income for customers who opt to rent out its roof.
SMG LAND LAYS FOUNDATION WITH MAIDEN PROJECT
The Star, 22/02/2023
Star Media Group Bhd (SMG) has secured sales for its maiden Star Business Hub project consisting of factories and warehouses in Bukit Jelutong, Shah Alam. The business hub, an industrial freehold development project by SMG Land Development Sdn Bhd., has received bookings for three out of five units. With a gross development value (GDV) of RM130 million, the business hub is specially designed to suit modern business needs. Offering one detached and four semi-detached units that serve as multi-functional warehouses, factories and offices, Star Business Hub enables businesses to centralise operations within a single building. The detached unit has a built-up area of 120,227 sq. ft. while the semi-detached units have a built-up area starting from 29,863 to 31,740 sq. ft. The business hub boasts 5.05 acres of industrial development located within the heart of Klang Valley.
SIME DARBY SWEDISH AUTO OPENS NEW VOLVO 3S CENTRE IN SETIA ALAM
The Star, 23/02/2023
A new Volvo 3S Centre has been opened in Setia Alam, managed by Sime Darby Swedish Auto. This is Sime Darby Swedish Auto’s second dealership after the one in Ara Damansara. The new facility in Setia Alam spans 23,000 sq. ft. of land and features Volvo’s latest global showroom and service standards. To accommodate the brand’s expanding electric vehicle (EV) range, the showroom is equipped with four charging bays with four 22kW AC chargers.
PRIVATE HOSPITAL WITH INVESTMENT OF RM860 MIL TO BE BUILT IN KL WELLNESS CITY
The Edge Market, 22/02/2023
A private hospital, KL International Hospital (KLIH), will be built in KL Wellness City, with a proposed investment of RM860 million. Malaysian Investment Development Authority (MIDA) and KL Wellness City, in a joint statement said KLIH was scheduled to begin operation in the 1Q26, creating over 3,000 job opportunities. The 624 bed hospital, with potential expansion to 1,000 beds, will offer a fully comprehensive and integrated ecosystem of healthcare services including wellness and fitness facilities. The proposed hospital will be equipped with cutting-edge technology and state-of-the-art medical equipment such as 22 operating theatres (OT), including hybrid angio and magnetic resonance imaging (MRI) OT and robotic surgery. To date, MIDA has approved incentives to 86 private healthcare facilities with a total investment of RM11.2 billion, creating over 18,000 job opportunities.
ONLY 3% SICK PROJECTS IN PENINSULA
The Star, 21/02/2023
Only 25 out of more than 800 projects, or a mere 3%, are categorised as “sick” under the Public Works Department in Peninsular Malaysia. Those categorised as sick were mainly road and development projects. These projects are categorised as sick due to the increase in the cost of construction materials such as cement and steel. Based on Construction Industry Development Board (CIDB) data, out of 124,273 registered contractors, 101,623 are G1 to G3 contractors, and of that number, 66,862 have government work certification. This clearly shows that contractors categorised under G1 to G3 are the main construction industry players in the national development agenda.
WORKS MINISTRY PLANS TO UPGRADE JOHOR STRETCH OF NORTH-SOUTH EXPRESSWAY IN PHASES
The Edge Property & The Sun, 22/02/2023
The Works Ministry plans to upgrade the Johor stretch of the North-South Expressway (NSE) from Yong Peng Utara to Senai Utara to six lanes, from the current four, in stages to reduce traffic congestion along the stretch, especially on weekends and during festive seasons. The proposed project, which is estimated to cost RM525 million, has been included in the Third Rolling Plan of the 12th Malaysia Plan. The 195km highway expansion project from Ayer Keroh, Melaka, to Johor Bahru, Johor, is estimated to cost RM7.5 billion.
HAILY WINS RM78.2M CONSTRUCTION CONTRACT TO BUILD LANDED PROPERTIES IN JOHOR
The Edge Property, 20/02/2023
Construction specialist Haily Group Bhd has won a RM78.28 million contract to build 262 units of landed residential properties in Pontian, Johor. With the latest new job win, which is its largest contract to date, Haily’s total outstanding orderbook has increased to RM660.77 million. The latest contract was secured by Haily’s wholly-owned subsidiary Haily Construction Sdn Bhd from Mandy Corporation Sdn Bhd, a main contractor appointed by Splendid Pavilion Sdn Bhd. The job involves the construction of 262 units of two storey terrace house and 2 units of Tenaga Nasional Berhad (TNB) sub-stations.
PRECINCT NILAM 3 CLUSTER HOMES READY IN MARCH 2025
The Star, 21/02/2023
Property developer Daiman Development Bhd (Daiman) had a New Cluster Showhouse preview during a Chinese New Year celebration. The developer’s recently unveiled Precinct Nilam 3 double-storey cluster homes in Taman Daiman Jaya, Kota Tinggi in Johor, is the final phase of cluster homes in Precinct Nilam and is expected to be completed in March 2025. There will only be 60 units available, each land area measuring 35’ x 68’ with a built-up area of 2,387 sq. ft. Future homeowners can expect a spacious living area with a 10-foot private garden, 4+1 bedrooms with en suite bathrooms, two balconies, and a gated and guarded community. Neighbourhood conveniences include Mawai Primary School, banks, clinics, an Econsave hypermarket, parks and restaurants. The first 20 housebuyers will receive a special early-bird promotion from Daiman for this upcoming development.
FIREFLY RESUMES PENANG-MEDAN ROUTE WITH DAILY JET OPERATIONS
The Sun, 18/02/2023
Firefly has resumed its daily services between Penang and Medan with its 189 seat newly refurbished Boeing 737-800 aircraft. Prior to the pandemic, the subsidiary of Malaysia Aviation Group (MAG) operated flights to Medan via Subang Airport using the ATR 72-500 aircraft. The group now offers connectivity to seven Indonesian cities. Travellers can connect to Jakarta, Denpasar, Surabaya, Medan, Pekanbaru, and Yogyakarta from KL International Airport operated by Malaysia Airlines, and to Banda Aceh and Medan from Penang operated by Firefly. In conjunction with the inaugural flight to Medan, Firefly also inked a memorandum of understanding with Penang Adventist Hospital to boost medical tourism in Malaysia.
E&O SEES RIGHTS ISSUE, FUTURE SALES SUPPORTING PHASE 2 ANDAMAN ISLAND CAPEX OUTLAY
The Edge Market, 22/02/2023 & NST, 23/02/2023
Eastern & Oriental Bhd (E&O) is seeking additional funds for the second phase of its 760 acre Andaman Island project, expects to have around RM500 million cash in 2024. Developments on Andaman Island Phase 1 are projected to provide RM17 billion in gross development value (GDV) over the next 15 years. E&O has already completed the 253 acre Phase 1 of the reclamation, while the 507 acre Phase 2 is expected to be completed by December 2028. Currently, The Meg is more than 95% taken up since it started selling the project in January 2022.
PENANG HALFWAY TO HOUSING TARGET
The Sun & NST, 22/02/2023
Penang is more than halfway through its target of providing 250,000 units of affordable houses by 2030, with 142,647 units, or 57.06%, already done. Ideal Residency housing project, built on a 8,073 acre site in Bandar Gelugor and developed by the Ideal Property Group, will comprise of a 49 storey building with 1,218 residential units. The project would provide general facilities for residents such as a swimming pool, recreation park, gymnasium, community hall as well as badminton and basketball courts.
CAPITALAND MALAYSIA GETS UNITHOLDERS’ NOD TO BUY QUEENSBAY MALL FOR RM990.5 MILLION
The Edge Market, 23/02/2023
Capitaland Malaysia Trust (CLMT)’s RM990.5 million acquisition of Queensbay Mall in Penang has turned unconditional after the REIT’s unitholders voted in favour of the transaction. Unitholders also approved a private placement of up to 1.03 billion new units to raise up to RM495.25 million to partly fund the acquisition of Queensbay Mall. The remainder of the acquisition consideration will be funded by bank borrowings. The acquisition will boost its assets under management by 25.7% to RM4.9 billion, from RM3.9 billion currently. CLMT is buying 91.8% of the total strata floor area of retail parcels in Queensbay Mall through a related-party transaction from parties related to CapitaLand Investment Ltd (CLI).
ELNA PCB EXPANDS OPERATIONS WITH NEW RM1B MANUFACTURING FACILITY
The Edge Market, 18/02/2023 & The Star, 20/02/2023
Taiwan-based Elna PCB, a printed circuit board (PCB) manufacturer, is investing approximately RM1 billion to set up a new manufacturing facility in Seberang Perai Tengah, Penang. The new plant, spanning 110,750 sq. ft., is designated to manufacture PCBs for automotive, server, networking, laptop, desktop and consumer electronic device products. The construction started in December 2022, and is expected to be completed within a year. As the country’s leading electronics and electrical (E&E) hub, Penang continues to be a key pillar of Malaysia’s external trade, topping the nation’s list in 2021 with an export value of RM354 billion. In term of investments, Penang is also among the top contributors in the country, with an all-time high of RM76 billion in our approved manufacturing investments in 2021. From January-September 2022, Penang garnered RM9 billion of approved manufacturing investments, where 53% were contributed by E&E products, representing 22% of the country’s total approved manufacturing investments in the E&E sector.
PENANG CHIEF MINISTER READY TO BRIEF G25 OVER PENANG SOUTH RECLAMATION PROJECT
The Sun, 18/02/2023
The Penang state government is always ready to brief and engage with the civil society group, G25, on the state’s plans to carry out the Penang South Reclamation (PSR) project. The state government had presented the project plans to the Natural Resources, Environment and Climate Change Minister and the Agriculture and Food Security Minister as it involved fisheries and seafood production in the state. The G25, a group of prominent retired civil servants, had called on Putrajaya to stop the PSR project immediately to protect the livelihoods of local fishermen. The group claimed that the reclamation project would cause not only irreparable damage to the marine and mangrove ecosystems on Penang’s coast, but also to the marine ecosystem of neighbouring Kedah and Perak as well. The PSR project covers an area of 247 acres and involves the development of three man-made islands in the waters off Permatang Damar Laut, Bayan Lepas.
PROPOSED BRIDGE WILL BENEFIT LABUAN, SAYS CHAMBER OF COMMERCE
The Sun, 19/02/2023
The construction of a bridge linking Labuan and mainland Sabah will not only enhance connectivity and trade, but it will also cut costs for travellers. The proposed bridge would also spur economic growth by creating new employment opportunities. The bridge would complement other existing modes of transport between the two areas, especially air transport, which is beyond the reach of many, particularly in the low-income group. Furthermore, it will enhance and support the setting up of potential industries which will ultimately benefit the people of Labuan, especially through the creation of jobs.
SARAWAK SCORES RECORD INVESTMENTS WORTH RM102.36 BILLION IN 2022
The Edge Market, 23/02/2023
The Sarawak Corridor of Renewable Energy (SCORE) region recorded public and private investments worth RM102.36 billion in 2022. Of this amount, RM93.09 billion was contributed by private investment through the implementation of 334 projects, while a total of RM9.17 billion was from public investment involving the implementation of 326 projects. SCORE is targeting a planned total investment of RM334 billion by 2030, with private investment of RM267 billion and government investment of RM67 billion. The Tanjung Manis Economic Growth Area (T-Mega) is one of the main growth nodes that have been identified within the SCORE region, which aims to drive economic development in Tanjung Manis. Up to now, T-Mega has registered an investment of RM1.4 billion and the Regional Corridor Development Authority (RECODA) expects a total of RM803.5 million in investment to be realised by 2026.
YKGI BAGS RM271.6 MIL CONTRACT TO BUILD AFFORDABLE HOMES IN SARAWAK
The Edge Market, 20/02/2023 & The Star, 21/02/2023
YKGI Holdings Bhd has bagged a RM271.62 million contract to build affordable houses in Sarawak. In a bourse filing, YKGI said its 80.36%-owned subsidiary ASTEEL Development Sdn Bhd (ADSB) will undertake the Housing Development Corporation (HDC) project. The project involves three phases of development comprising 426 units of affordable Sri Pertiwi landed houses, 484 units of affordable Sri Pertiwi apartments and 96 units of affordable Spektra Medium apartments on HDC’s land in Kuching. ADSB will design and build the houses within three years from the date of formal approval of the project by the state planning authority.