Week 15 - 2023
CONSTRUCTION MATERIAL PRICES RISE AT A SLOWER PACE
The Star, 08/04/2023
The prices of local construction materials in Malaysia continued to rise on a monthly basis in March 2023 but at a slower pace. The unit price index of steel recorded a slight increase of 0.9% in March 2023 compared to 1.5% in February 2023, in line with the rising trend of iron ore and steel prices on a global scale. Cement rose by 1.1% in March 2023 compared with February 2023, which was mainly due to the rise of production costs, including the price of raw materials such as limestone, coal, energy and shipping costs.
POTENTIAL EXPORTS TO CHINA EXPAND TO RM3.2 BILLION
The Edge Markets, 10/04/2023
Malaysia’s recent trade and investment mission to China has now generated potential exports worth RM3.2 billion to the republic, an expansion from the RM2.44 billion announced previously after the mission was extended to Hong Kong. Press Metal Aluminium Holdings Bhd received order commitments worth RM110 million for its aluminium bars from Daching Enterprises Ltd of Hong Kong on 4th April 2023. China has been Malaysia’s biggest trading partner since 2009. Bilateral trade between the two countries reached RM2.8 trillion in 2022. Malaysia’s trade with Hong Kong breached RM100 billion for the first time in 2022, hitting RM113.20 billion, with exports worth RM95.60 billion and imports of RM17.60 billion.
MALAYSIA’S UNEMPLOYMENT RATE IN FEBRUARY 2023 DIPS TO 3.5%
The Edge Markets, 10/04/2023 & The Sun, 11/04/2023
The number of the labour force in February 2023 was on an increasing trend, with a month on month increase of 0.2% to 16.78 million persons (January 2023: 16.76 million persons), recording a higher labour force participation rate at 69.9% (January 2023: 69.8%). The number of employed persons in February 2023 recorded 16.19 million persons, an increase of 0.2% month on month (January 2023: 16.16 million persons). On the contrary, the number of unemployed persons in February continued to be on a downward trend, with a decrease of 0.7% to 591.9 thousand persons (January 2023: 596.1 thousand persons). Accordingly, the unemployment rate during the month fell by 0.1 percentage point to 3.5% (January 2023: 3.6%).
WHOLESALE, RETAIL TRADE SALES VALUE AT RM134.3 BILLION IN FEBRUARY 2023
The Edge Markets, 11/04/2023 & The Sun, 12/04/2023
Malaysia’s wholesale and retail trade recorded a monthly sales value of RM134.3 billion, which grew 14.7% in February 2023 attributed to the retail trade sub-sector, which surpassed the other sub-sectors with an increase of RM9.4 billion or 19.2% to RM58.2 billion. Motor vehicles expanded by 36.1% or RM4.5 billion to RM16.9 billion and the wholesale trade rose 5.9% or RM3.3 billion to RM59.1 billion.
MALAYSIA’S IPI GROWTH IN FEBRUARY 2023 IMPROVES TO 3.6%
The Edge Markets, 11/04/2023; The Star & The Sun, 12/04/2023
The Malaysian Industrial Production Index’s growth improved to 3.6% in February 2023. The expansion in February 2023 was spearheaded by the manufacturing sector which increased by 4.9% (January 2023: 1.3%) and the electricity sector which rose by 1.1% (January 2023: -4.3%). On the other hand, the mining sector output declined marginally by 0.5% in February 2023, after registering positive growth for eight consecutive months.
IMF REVISES 2023 GLOBAL DOWNWARDS TO 2.8%
NST & The Star, 13/04/2023
The International Monetary Fund (IMF) has projected slower global economic growth in 2023 due to the high inflation rate and the war between Russia and Ukraine. The IMF expected global economic growth to drop to 2.8% in 2023, down from its earlier forecast of 2.9%. The global economy grew by 3.4% in 2022.
GAZETTE OF KUALA LUMPUR STRUCTURE PLAN 2040 POSTPONED TO 31ST MAY 2023
The Edge Markets, 08/04/2023 & NST, 09/04/2023
The gazetting of the Kuala Lumpur Structure Plan 2040 (PSKL 2040) has been delayed until 31st May 2023 to allow further engagement sessions by the Kuala Lumpur City Hall (DBKL) with stakeholders.
K2K PROGRAMME EXPANDED TO KLANG VALLEY
StarProperty & The Edge Property, 10/04/2023
The Kita Untuk Kita (K2K) Programme, aimed at enhancing support to public housing communities and building management to solve social, economic and physical challenges, has been expanded to Selangor, covering a wider area of the Klang Valley. Initially started in Kuala Lumpur, K2K looks into four critical areas, namely, community empowerment, community co-management, improved income generation and policy reform to increase the liveability of public housing among the urban poor.
GOVERNMENT TO RELEASE ESG FRAMEWORK BY THE END OF 2023
The Edge Markets, 11/04/2023; The Star, NST & The Sun, 12/04/2023
The Malaysian Government will release an environmental, social and governance (ESG) framework by the end of 2023 to help local companies transition into renewable energy. The ESG framework will focus on small and medium enterprises (SMEs) to help them in terms of funding and capacity building to export their products.
HOUSING SCHEME ELIGIBILITY CAP RAISED
The Sun & NST, 14/04/2023
The household income eligibility limit to apply for Rumah Mesra Rakyat (RMR) under Syarikat Perumahan Negara Bhd (SPNB) has been raised from RM3,000 to RM5,000 per month. Among the housing scheme’s new initiatives was the extension of the monthly instalment period from 16 to 25 years, with a fixed rate of RM300. Applicants can choose from six designs offered by SPNB such as a three-room design or changing it to two rooms. In addition to modern and habitable house designs, SPNB is also in the process of obtaining a quality standards certification from Sirim that is recognised internationally.
ECRL TO SPEED UP TRANSPORT SHIFT FROM ROAD TO RAIL
NST, 08/04/2023
Scheduled to be operational in early 2027, the East Coast Rail Link (ECRL) will accelerate the shift of cargo movements from road to rail to mitigate congestion and environment-related concerns. While ECRL would be a crucial element to ferry passengers and transport goods, the project’s priority was to connect Kuantan Port and Port Klang in Selangor, boosting cargo transportation at both ports. The 640 kilometres long route had reached 40% completion ahead of its 2026 deadline and estimated the start of its operations by early 2027.
GENTING TUNNEL EXCAVATION WORKS SCHEDULED FOR COMPLETION IN 2Q25
The Edge Markets, 11/04/2023
Excavation works on the Genting Tunnel portion of the East Coast Rail Link (ECRL), spanning 16.39 kilometres through the Titiwangsa Range is scheduled to be completed in 2Q25. The construction of the Genting Tunnel that connects Bukit Tinggi, Pahang and Gombak, Selangor is a key component of the ECRL, as it completes the land bridge for cargo transportation from Kuantan Port to Port Klang, in addition to connecting passengers from the East Coast to Gombak.
AIRASIA TO CONNECT KUALA LUMPUR AND KERTAJATI, INDONESIA
The Edge Markets, 10/04/2023 & The Sun, 11/04/2023
AirAsia Malaysia is set to be the first airline connecting Kuala Lumpur to Kertajati, Indonesia starting 17th May 2023, strengthening its commitment to Indonesia as a core market and reinforcing its mission to democratise air travel by connecting underserved Cities in the region. It will be the only international connectivity out of Kertajati, bringing the Greater Bandung and Cirebon metropolitan areas, as well as parts of West Java and Central Java provinces closer to Kuala Lumpur. The two weekly flights will land and depart from Kertajati International Airport located in Majalengka Regency in West Java province, which is the second largest airport in Indonesia.
GOVERNMENT WELCOMES PRIVATE SECTOR TO COLLABORATE WITH RAC
The Edge Markets, 13/04/2023
The Malaysian Government welcomes the involvement of the private sector to develop land belonging to the Railway Assets Corporation (RAC) along the national railway lines such as the development of the Kajang 2 railway station, which adopted the transit-oriented development concept using the private-public partnership approach in collaboration with Srijang Kemajuan Sdn Bhd. Built through a railway reserve land lease, the station allows RAC to own a railway station worth RM60 million at its current value as well as eight kiosks and commercial lots that can be rented out at reasonable rates. Began operating on 13th March 2023, the station is capable of handling 146,000 passengers a year and is equipped with 500 parking spaces, pedestrian overpasses with elevators, six escalators, disabled-friendly facilities, security surveillance areas at strategic locations, drop-off areas for passengers and basic amenities such as toilets, prayer rooms and covered platforms.
JLAND, GENTARI TO JOINTLY EXPLORE RE SOLUTIONS, ACCELERATE GREEN MOBILITY
The Edge Markets, 11/04/2023; NST & The Sun, 12/04/2023; The Star, 13/04/2023
JLand Group Sdn Bhd signed a Memorandum of Understanding with clean energy solutions provider Gentari Sdn to develop an eco-friendly ecosystem across JLand’s residential, commercial, and industrial projects. Gentari will undertake feasibility studies to integrate renewable energy (RE) solutions at Menara JLand, KOMTAR JBCC, B5 Johor Street Market, Ibrahim International Business District and Bandar Dato’ Onn. Meanwhile, the green mobility ecosystem will be implemented from 3Q23. Additionally, the companies will explore potential installations of an electric vehicle (EV) charging hub at Ibrahim Technopolis and renewable energy solutions for JLand’s industrial parks.
HENG HUAT ACQUIRES LAND FOR RM6.3 MILLION
The Star, 12/04/2023
Heng Huat Resources Group Bhd is acquiring six parcels of vacant land, one in Perak and five in Penang, for RM6.32 million as part of its plan to diversify into property development.
HONG SENG STILL KEEN ON EV BATTERY MANUFACTURING
The Edge Markets, 13/04/2023 & The Star, 14/04/2023
Hong Seng Consolidated Bhd has mutually terminated its Shares Sale Agreement (SSA) with CSH Alliance Bhd for the proposed acquisition of Alliance EV Sdn Bhd (AEV). Despite the termination, Hong Seng remained keen on the electrification revolution by choosing to focus on its electric vehicle (EV) batteries manufacturing project (Project Volt) in collaboration with EoCell Inc. Hong Seng had on 13th February 2023 announced its intention to acquire AEV for the purposes of acquiring the 55 acres of Tanjung Malim Land held by AEV as well as AEV’s EV business which may complement its Project Volt initiative. The acquisition is subjected to conditions precedent of the SSA which included amongst others a feasibility study to be carried out by Hong Seng to assess the suitability of the Tanjung Malim Land for the purpose of Project Volt.
PTP SIGNS LEASE AGREEMENT WITH HIGHWAY CONCESSIONAIRES
The Edge Markets, 13/04/2023
The Ministry of Natural Resources, Environment and Climate Change and the Ministry of Works Malaysia (KKR) signed a lease agreement on 13th April 2023 involving 13 commercial and non-commercial sites supervised by the Federal Lands Commissioner (PTP) on highway areas. The lease period would continue as long as the concession of the highways with tolls still in force.
MAXIM’S MAJOR SHAREHOLDERS AND DIRECTORS INJECT ASSETS INTO GROUP
The Edge Markets, 14/04/2023
Maxim Global Bhd is planning to acquire properties, including parcels of land, from Zapland Property Sdn Bhd, Asiatic Network Sdn Bhd, Brogan Maxim Sdn Bhd and Maxim Realty Sdn Bhd, which collectively hold an 86.89% stake in Maxim Holdings Sdn Bhd (MHSB), for RM271.03 million. MHSB is a private vehicle that owns residential and commercial land in Taman Desa, Petaling Jaya and Rawang, plus an affordable apartment development project.
LOTUS’S MOVES TOWARDS SUSTAINABILITY
The Sun, 10/04/2023
Lotus’s Malaysia has entered Phase 3 of the installation of solar photovoltaic (PV) panels on the rooftops of 21 of its stores nationwide, including Its Ambient Distribution Centre in Bukit Beruntung, Selangor. Once the installation is completed in September 2023, the solar PV panels will collectively generate 20,000,000 kilowatt-hours of clean energy per year, which is equivalent to lighting up more than 3,500 houses annually. The clean energy generated will offset a total of 9,585 tons of CO2 into the atmosphere.
TROPICANA’S HANA RESIDENCES LAUNCHED WITH 70% BOOKED
The Edge Property, 10/04/2023; StarProperty & The Star, 11/04/2023; The Sun, 13/04/2023
Located within the 863 acres of “Tropicana Aman” in Kota Kemuning, Tropicana Corp Bhd has launched “Hana Residences” to a healthy take-up. The final signature villa series registered a booking rate of 70%, driven by its elevated outlook and spacious design, with all signature Type A 3-storey luxury bungalows fully sold to date. Sprawling across 28 acres in the heart of “Tropicana Aman” and priced from RM2.34 million, “Hana Residences” comprise 130 luxury units, from double and three storey bungalows to double storey semi-detached houses, featuring up to 7+1 bedrooms and abundant car park space for up to eight cars, as well as lakeside views and lift access across all levels for selected units. The signature villas are scheduled for completion in 3Q25.
ELEVATING LIFESTYLES IN ALOR SETAR
The Star, 12/04/2023
“G Residence” by GPC Development Sdn Bhd has topped off and is on track to be completed by December 2023, with the Certificate of Completion and Compliance (CCC) expected to be obtained in 1Q24. With over 70% of the units sold, the 25-storey service condominium comprises 293 units with 2- to 4 bedroom layouts with a majority of units being 3 bedroom family suites at 951sq. ft., which occupy the 9th to 23rd floors. Certain units come with storage facilities at the carpark, which occupies the 1st to 11th floors. The development also included a handful of retail units on the ground level, which the developer owns and intends to lease out at competitive rates to attract a good mix of tenants.
MYRA PUTRI TARGETED AT YOUNG CIVIL SERVANTS LOOKING FOR THEIR FIRST HOME
The Sun, 13/04/2023
Priced from RM375,000 for a 904 sq. ft. unit with three bedrooms and two bathrooms, “Myra Putri” is located in the town of Desa Pinggiran Putra, Kajang. The low-density development comprises 310 units within 8.84 acres of Malay Reserve land. “Myra Putri” aims to cater to working individuals and young married couples serving in the various Malaysian Government sectors that are currently centralised at the Federal Territory of Putrajaya.
HIGH DEMAND FOR GAMUDA COVE SHOPS
The Star, 14/04/2023
Gamuda Land’s Bay Street commercial shops in “Gamuda Cove”, Banting, Selangor achieved a 90% booking rate following its launch over the weekend. There is strong demand for commercial units that are mindfully designed to cater to the nearby residential catchment; that also has good connectivity within and beyond the township.
MUTIARA CENTRAL’S BUMIPUTERA UNITS TO SELL WELL
The Edge Markets, 13/04/2023
Mutiara Johan Group anticipates strong sales for its “Mutiara Central” bumiputera lots once they are released in the coming weeks. The RM220 million “Mutiara Central” was launched in July 2018 and completed in October 2022. Located on 1.56 acres of leasehold land in Cheras Business Centre, Kuala Lumpur, the 27 storey commercial complex comprises a basement parking, 8 storey podium car park, single storey shop, 8 three storey shop offices and 596 office suites. The 596 office suites have a built-up range between 445 sq. ft. and 955 sq. ft. with an average selling price of RM322,000. The sales rate for Mutiara Central is at 81% as of 13th April 2023 with the majority of the unsold units from the bumiputera quota pending release by the authorities.
MUDAJAYA SECURES RM64 MILLION BUILDING JOB
The Sun, The Star & The Edge Markets, 11/04/2023
Mudajaya Corporation Bhd has accepted a letter of award from Kotra Pharma (M) Sdn Bhd for a RM64.1 million construction project in Taman Teknologi Cheng, Melaka. Set to be completed by October 2024, the project would be the construction of a one-storey warehouse together with six mezzanine floors.
SMART INDUSTRIAL PARK IN SEPANG
StarProperty, 10/04/2023; The Star, 11/04/2023 & NST, 12/04/2023
Spanning approximately 741 acres in Sepang, the NCT Smart Industrial Park (NSIP) project is expected to be fully completed in 2033. With three phases in total, Phase One covering 230 acres comprises circa 100 units and 27 factory plots are scheduled for completion in 2025, with approximately 40% of units already booked. NSIP is sited in the Integrated Development Region in South Selangor (Idriss) zone, an initiative under the First Selangor Plan 2021-2025. Idriss is Selangor’s strategic blueprint aimed at transforming parts of the Sepang and Kuala Langat districts into a regional hub for the industry.
PROTON TO MOVE SHAH ALAM OPERATIONS TO TANJUNG MALIM
NST, 13/04/2023
Proton Holdings Bhd (national car manufacturer) will relocate its Shah Alam operations to Tanjung Malim by 2027. Proton-Geely (the joint venture between Proton and Zhejiang Geely Holding Group) will make additional investments in Malaysia, specifically in Proton City and the future investments are expected to go up to RM32 billion. The project, involving an estimated 1,000 acres of area to be developed as a next-generation vehicle hub in Tanjong Malim, will create tens of thousands of jobs for locals.
MERCEDES-BENZ, HAP SENG STAR OPEN AUTOHAUS IN BUKIT TINGGI
NST, 13/04/2023
Mercedes-Benz Malaysia and Hap Seng Star have unveiled the latest Autohaus in Bukit Tinggi, offering an exclusive luxury lifestyle experience to its customers in the Klang area. The showroom spans 49,543 sq. ft. and is built on more than 142,000 sq. ft. of land.
YNH GETS DEVELOPMENT ORDER FOR KUALA PILAH TOWNSHIP
The Star, 08/04/2023
YNH Property Bhd has obtained the development order from Kuala Pilah District Council for a mixed-use development with a total gross development value estimated at RM600 million. Located within proximity of Kuala Pilah and Bahau town, Phase one of the project which comprises 500 residential units, is expected to be launched in 2Q23.
UMW SECURES RM1 BILLION CONTRACT FROM ROLLS-ROYCE
The Edge Markets, 10/04/2023 & The Star, 11/04/2023
UMW Aerospace Sdn Bhd has secured a 15-year contract worth RM1 billion from British aerospace company Rolls-Royce Holdings plc to manufacture rear cases for the latter’s Trent 1000 and Trent 7000 aircraft engines. UMW Aerospace Sdn Bhd will invest up to RM65 million to set up chemical milling and related processes to manufacture the rear case at its existing facility in the UMW High Value Manufacturing Park, Serendah, Selangor. At present, the rear case is imported from overseas and assembled into a complete fan case.
YONG TAI TERMINATES GOLD MINING AGREEMENT
The Edge Markets, 13/04/2023
Yong Tai Bhd has scrapped the mining agreement to undertake a gold mining project on a 247 acre site in Bukit Kenderak in Pahang’s Lipis District due to the non-fulfilment of the condition precedent of the mining agreement. Yong Tai’s wholly-owned subsidiary YTB Land Sdn Bhd was appointed as the exclusive mining operator to undertake the exploration and exploitation works on the project after it signed an agreement with the registered holder of the mining lease of the land, Tengku Fahad Mua’adzam Shah ibni Almarhum Sultan Haji Ahmad Shah, and Amazing Logic Sdn Bhd in March 2021. The mining agreement would have been valid for four years until 11th May 2025.
MYEG SECURES TENDER TO SET UP WORKERS VILLAGE IN PENANG
The Edge Markets, 12/04/2023 & The Star, 13/04/2023
MyEG Lodging Sdn Bhd has secured a tender from Penang Development Corporation to set up a workers village at the Batu Kawan Industrial Park 3 in Seberang Perai. The company will lease an 8.39 acre land for RM20.39 million over a duration of 30 years, to build and operate the workers village and related facilities at its own cost. The workers village is estimated to accommodate 7,500 foreign workers and will comply with Jabatan Tenaga Kerja Semenanjung Malaysia guidelines as well as be certified with GreenRE. GreenRE is a certification to promote sustainability in the Malaysian property sector, which is recognised by the Penang Government.
MAXIS, IDEAL PROPERTY SEAL TIE-UP
NST & The Star, 08/04/2023
Maxis Bhd (telecommunication services provider) has partnered with Ideal Property Group to bring fibre connectivity to homes and businesses. Maxis will be leveraging its own fibre build to deliver a superior Internet experience and attractive fibre propositions to mixed developments on Penang Island and in Butterworth. As part of the agreement, Maxis will design, supply and install telecommunications infrastructure for fixed services in 12 commercial and residential projects comprising 12,000 premises. Penang Technology Park@ Bertam and Penang International Exchange 1 & 2 are among the commercial developments where Maxis will be one of the main connectivity providers under the agreement.
STYLISH LIVING AT JELUTONG CONDO SCHEME
The Star, 11/04/2023
Airmas Group’s “Alton Sky Villas” aims to set a new benchmark of luxurious living in the old town of Jelutong, Penang. The freehold development set on circa 1.2 acres of land comprises 161 condominium units in a 29-storey tower. Priced from RM800,000, there were eight different layouts for buyers to choose from, with standard units occupying the 9th to 26th floors. These include Type A at 1,132 sq. ft. with three bedrooms and two bathrooms while Types B1 and B2 measure 1,658 sq. ft. and 1,687 sq. ft., respectively and have three bedrooms and five bathrooms. The larger units are on the 27th to 29th floors with Types D1 and D2 are 1,805 sq. ft. and 1,866 sq. ft., respectively, also with three bedrooms and five bathrooms. Type F1 at 2,672 sq. ft. and F2 at 2,274 sq. ft. has four bedrooms and five bathrooms each. There is also Type E at 1,335 sq. ft. with three bedrooms and two bathrooms. Construction for Alton is slated to begin sometime in April 2023, with completion expected by the end of 2026.
FAJARBARU SECURES RM125 MILLION AFFORDABLE HOUSING JOB
The Star, 08/04/2023
Fajarbaru Builder Group Bhd has secured a construction contract worth RM125.3 million from Penang Development Corporation (PDC) to build three blocks of affordable apartments in Seberang Perai Selatan, Penang. Set to commence on 15th June 2023 and to be completed on 14th June 2026, the contract will be for Phase Four of a mixed-use development project comprising Twenty-five Phases. Phase Four comprises one block of 12 storey affordable apartment (149 units); one block of 14 storey affordable apartment Type A (149 units); one block of 19 storey affordable apartment Type B (222 units), five units of shop lots; and one block of two storey car and motorcycle parking.
NEW PAPAR HOSPITAL TO BE COMPLETED BY THE END OF 2023
NST, 08/04/2023 & The Star, 09/04/2023
The long-awaited new Papar Hospital in Sabah will be completed by the end of 2023. The four-storey hospital that began in 2017 was only 62% completed. Initially scheduled to be completed by 2021, the project was delayed due to issues with contractors, as well as the impact of Covid-19.