Week 3 - 2024
RM27 BILLION FROM RUBBER EXPORTS IN 2023
The Edge, 18/1/2024 & The Sun, 19/1/2024
Malaysia earned RM27.16 billion from rubber exports in 2023, with 70%, or RM19.04 billion coming from rubber gloves. Malaysian rubber goods are exported to over 190 countries, with the United States (29%) and the European Union (19%) as the top two destinations.
EXPRESSWAY STRETCH TO OPEN BY APRIL 2024
The Edge, 17/1/2024, The Star & The Sun, 18/1/2024
Section 11 of the West Coast Expressway (WCE) from Beruas to Taiping (South) is expected to be commissioned in 1Q24, at the latest in April 2024. WCE will be a catalyst for Perak’s plan to drive socio-economic growth along the west coast and transform Perak’s tourism landscape.
The project connects Taiping and Banting, Selangor, and has a total length of 233km. To date, five of the total 11 sections of WCE routes have been opened to traffic, namely Section 5 (Klang-Kapar) and Section 6 (Kapar-Assam Java) in Selangor, while Section 8 (Hutan Melintang-Teluk Intan), Section 9 (Kampung Lekir-Changkat Cermin) and Section 10 (Changkat Cermin-Beruas) are in Perak. Section 11 (Beruas–South Taiping), spanning 35.5km, is a completion to the WCE section in the state of Perak. The construction progress had reached 98% by December 31, 2023.
MAHB SIGNS DEAL FOR KLIA AEROTRAIN REPLACEMENT
The Edge, 17/1/2024, The Sun & NST, 18/1/2024
Malaysia Airports Holdings Bhd (MAHB) has signed an agreement with Alstom Transport Systems (Malaysia) Sdn Bhd and a joint venture (JV) consisting of IJM Construction Sdn Bhd and Pestech Technology Sdn Bhd (IJMC-Pestech JV) to complete the Kuala Lumpur International Airport (KLIA) aerotrain replacement project by 1Q25. Under this new agreement, Alstom, the new aerotrain’s original equipment manufacturer, would serve as the project coordination lead and be responsible for the coordination works to recommence the project and deliver three new trains and two lines by 1Q25. In making this decision, MAHB’s board considered two key focus areas, namely keeping to the agreed fit-for-purpose technology and ensuring the project can meet the original timeline for the operations of both lines.
Alstom has selected to work with IJM Construction and Pestech Technology for work scopes involving civil engineering and train power supply components, among others. To ensure project continuity and adherence to the original timeline, this new contract with Alstom, excluding operation and maintenance, is expected to incur a cost increase capped at 15%, bringing the project cost to RM456.1 million.
ADVANCECON BAGS RM21 MILLION ECRL CONTRACT
The Edge, 17/1/2024 & The Star, 18/1/2024
Advancecon Holdings Bhd has secured RM21.19 million in subcontract work from China Communications Construction (ECRL) Sdn Bhd (CCC-ECRL). Advancecon, which is involved in construction and quarry operations, said it will fund the subcontract via internally generated funds and external borrowings. The subcontract, which will be completed on Dec 31, 2024, is expected to contribute positively towards Advancecon’s future earnings.
EONMETALL UNIT GETS RM30 MILLION COMPENSATION FOR KLANG LAND
The Edge & The Sun, 15/1/2024
Eonmetall Group Bhd’s wholly owned subsidiary Eonmetall Land Sdn Bhd (ELSB) has received a notice of award and offer for compensation from the district and land office of Klang invoking compulsory acquisition of 0.9ha of industrial land for RM30.41 million. The affected land formed part of a larger 287.7ha land area in Kapar, Selangor, which is currently vacant and held for development. The land was purchased by ELSB in 2019, with the original investment cost of RM57.18 million. The final amount awarded was subjected to the acceptance of the notice without any objection by both Eonmetall Land and other relevant parties on Jan 11, 2024.
ECONFRAME BUYS INDUSTRIAL PROPERTY BUILDER FOR RM56 MILLION IN CONSTRUCTION FORAY
The Edge, 15/1/2024 & The Star, 16/1/2024
Econframe Bhd, a total door system solutions provider, has acquired industrial property builder ETA World Sdn Bhd for a purchase consideration of RM56 million. The group has entered into a conditional share sale agreement for the proposed acquisition on Monday, 15th January 2024. ETA World provides turnkey design and build solutions of industrial buildings such as factories and warehouses, customising each project based on its customers’ requirements and specifications.
In tandem with the acquisition, the group also announced the proposed diversification of Econframe into construction services and property development, which includes the design, build and sale of industrial properties. The proposed acquisition and diversification is expected to complete in 1H24.
KANGER INTERNATIONAL SCRAPS RM478 MILLION LOI WITH VEGETTA CHAMPION
The Edge, 16/1/2024
Kanger International Bhd, a wholly owned subsidiary of Kanger Ventures Sdn Bhd has mutually agreed to terminate the collaboration agreement between the two parties. The RM478 million contract awarded Vegetta Champion Sdn Bhd as the main contractor to construct two blocks of services apartments and public amenities in Genting Highlands, Pahang.
In March 2021, Kanger Ventures had issued a letter of intent (LOI) to Vegetta Champion, appointing Vegetta Champion as the main contractor for the foundation and main building works of the project, whilst Kanger Ventures would be responsible for its entire project management, financials and administration.
CHIN HIN GROUP PROPERTY BUYS LAND IN MELAKA TO BUILD RM1.01 BILLION RESIDENTIAL DEVELOPMENT
The Edge & The Star, 17/1/2024
Chin Hin Group Property Bhd (CHGP) is acquiring six parcels of land in Melaka for RM41.94 million cash, to develop a residential project with an expected gross development value of RM1.01 billion. The development involved six parcels of the land are 99-year old leasehold land, expiring on different dates in 2122, measuring collectively 838,736 sq. ft.located in Kawasan Bandar XLIII, Melaka Tengah. The group intends to undertake proposed development of residential buildings together with supporting amenities and infrastructure on the land, for sale and investment holding. The gross development cost of the project is about RM792 million . It is expected to be completed within 6 to 8 years from the completion of the proposed acquisition.
BINASTRA ADOPTS TAMAN TUGU PLOT
NST, 19/1/2024
Comintel Corp Berhad’s wholly owned subsidiary, Binastra Builders Sdn Bhd, has donated RM100,000 to adopt a corporate plot at Taman Tugu as part of its environment, social and governance initiative. Taman Tugu allowed Comcorp to adopt a corporate plot of nine square metres for tree planting. This offer enables Comcorp to play a role in fortifying the local ecosystem by planting five indigenous Malaysian forest trees on its dedicated plot. In line with Taman Tugu’s commitment to environmental sustainability and biodiversity, this initiative allows Comcorp to actively contribute to conserving and improving the natural environment.
TUJU SETIA BAGS RM209 MILLION CONTRACT TO BUILD APARTMENTS
The Edge, 13/1/2024
Tuju Setia Bhd has bagged a RM209 million contract from Avaland Bhd (previously known as MCT Bhd) for the construction of two blocks of service apartments in USJ 25, Subang Jaya. The Alora Residences project is slated to be completed in 33 months with work tentatively scheduled to commence in 2Q24. Alora Residence is the first phase of 2Fifth Avenue, a 13-acre integrated development in USJ worth RM3 billion in gross development value.
KERJAYA PROSPEK ACCEPTS RM111.8 MILLION CONTRACT
The Edge, 16/1/2024, The Star & The Sun, 17/1/2024
Kerjaya Prospek Group Bhd’s accepted a letter of award to undertake a proposed residential development project in Mukim Setapak for RM111.8 million. This would be the group’s fourth construction award for this year. The project entails the construction of a 52-storey main building works comprising of a 42-storey serviced apartment block and an eight-storey elevated carpark among others. Construction works are slated to be completed within 40 months from January 16, 2024.
EXSIM GETS RM158.5 MILLION FINANCING FROM AMBANK FOR SUITES PROJECT
The Edge, 17/1/2024,The Sun & NST, 18/1/2024
AmBank Group has granted RM158.5 million financing facilities to Lembaran Beruntung Sdn Bhd (a member of Exsim) to part finance the development costs for its latest project Branniganz Suites @ Bukit Bintang. The 50-storey tower comprising 269 units of serviced apartments (HDA units), 490 units of office suites (non-HDA units), and three retail lots is situated within close proximity to prime areas in KL’s Golden Triangle. This marks the 14th project in which the bank has financed for Exsim, the first being in 2008. To date, Exsim has launched 38 projects with a GDV close to RM16 billion.
TA GLOBAL TOPS OUT 96% SOLD ALIX RESIDENCES IN DUTAMAS
The Edge, 18/1/2024
TA Global Bhd topped out its 96% sold high-rise residential development named ALIX Residences in Dutamas, Kuala Lumpur on Thursday, Jan 18, 2024. Situated on a 4.55-acre freehold tract, ALIX Residences offers a total of 364 units that are spread across two towers. Tower A has 38 storeys and Tower B has 25 storeys. These units come in seven layouts and have built-up sizes of 1,012 sq. ft. to 2,476 sq. ft., selling from RM770 to RM780 psf. The entire development, which has a gross development value (GDV) of RM507 million, is slated to be completed in 3Q24.
Following the success of ALIX Residences, the developer will launch Amaya Residences, the latest residential phase of the Damansara Avenue mixed-use development masterplan. With a GDV of RM1 billion, the development will have an urban resort living concept and be situated on top of the upcoming DA Central Mall. Once completed, the mall will offer various retail and dining options, as well as provide visitors and residents of Amaya (Residences) with a direct link bridge to the Sri Damansara Sentral MRT station.
GAGASAN NADI CERGAS TO DEVELOP KWASA TOWNSHIP
The Edge, 18/1/2024, NST & The Star, 19/1/2024
Construction group Gagasan Nadi Cergas Bhd has secured a project from Employees Provident Fund-owned Kwasa Land Sdn Bhd to build 4,183 affordable residential units, on a 34.9 acre plot of land in Kwasa Damansara township at a gross development value (GDV) of RM1 billion. The latest LoA will be Gagasan Nadi’s second undertaking with Kwasa Land, after breaking ground on the construction of 1,669 affordable housing units in Plot R4-1 of Kwasa Damansara in 2023.
Gagasan Nadi is slated to deliver up to 14,000 affordable housing units in Greater Kuala Lumpur over the next eight years. The group’s other affordable housing projects include the ongoing Idaman Bukit Jelutong, which has a sales rate of 91% to date. Its completed projects include the recently opened mosque at the Merdeka 118 tower in Kuala Lumpur and the Cardiology Centre at Serdang Hospital.
IQI MOVES INTO ITS NEW HEADQUARTERS
The Star, 16/1/2024 & The Edge, 17/1/2024
IQI, a global real estate agency network with more than 40,000 agents in negotiators and a member of Juwai IQI, celebrated its move into its newly constructed offices at Millerz Square on Old Klang Road, Kuala Lumpur with the opening of its new headquarters. This brand new office space will be emphasised on health and wellness of the staff, including to install the latest technology and amenities. The HQ will be the group’s new technology and R&D hubs.
JAYA GROCER BULLISH ON 2024
The Sun, 15/1/2024
Jaya Grocer, a mass premium supermarket brand, heralded the start of 2024 with the opening of its 49th store at Plaza Shah Alam – its third in Selangor’s capital after Plaza Jelutong and Ardence Labs. The first outlet at Plaza Jelutong in Shah Alam was opened on Sept 29, 2012 and the second outlet at Ardence Labs. Jaya Grocer’s network expansion plans are on track and it looks forward to a better year in 2024. To reward customers in Shah Alam, Jaya Grocer is offering promotion deals from 13th January to 21st January 2024 that includes special discounts on a variety of essential items such as vegetables, poultry, and meat, as well as enticing offers on imported snacks and cat food.
AEON BiG EYES EXPANSION
NST, 19/1/2024
AEON BiG (M) Sdn Bhd has provisioned RM25 million as capital expenditure (capex) for the year to refurbish, market and expand its hypermarket network. The allocation would primarily be for refurbishing existing stores, ensuring maintenance to enhance customer experience, and supporting store expansion plans. AEON BiG aims to identify new locations for store expansion, further solidifying its presence in the market.
MAGNA PRIMA, GOLDEN RAINBOW VIEW TO JOINTLY DEVELOP LAI MENG SCHOOL LAND INTO A RM1.2 BILLION MIXED DEVELOPMENT
The Edge, 18/1/2024 & The Star, 19/1/2024
Property developer Magna Prima Bhd is teaming up with Golden Rainbow View Sdn Bhd to jointly develop a mixed development on five parcels of adjoining land with an estimated gross development value (GDV) of RM1.2 billion, on a 113,963 sq. ft. site previously occupied by the Lai Meng school in Jalan Ampang. The school is currently unoccupied and not being used. The development land was acquired from Lai Meng Girls School Association in 2014 for RM148.15 million.
The development on the land will potentially feature commercial lots, small office home office (SOHO) units, service apartments, office suites and a hotel. The estimated gross development cost is RM650 million. The project is expected to commence immediately upon the developer obtaining the development order from the relevant authorities, which is expected to be obtained by 3Q24 and to be developed over an estimated period of six years.
FERROTEC’S NEW FACILITY IN KULIM OPENS FOR PRODUCTION
The Edge, 15/1/2024
Ferrotec Holdings Corporation, a global supplier of materials, components, and precision system solutions, has opened its first manufacturing facility in Southeast Asia at Kulim Hi-Tech Park, Kedah. The establishment of the Kedah plant would propel Ferrotec to new heights as a globally recognised international supplier in the semiconductor industry. It also integrates the culmination of 44 years of engineering expertise gathered from their operations in the United States, European Union, China and Japan. Ferrotec held its opening ceremony on Monday, 15th January 2024 to kick off production at the plant, which will be undertaking electromechanical assembly and advanced material fabrication for semiconductor equipment. Ferrotec, with its extensive manufacturing footprint, symbolises the diversification of supply chains, reinforcing Malaysia’s strategic standing as a location for semiconductor operations.
FM GLOBAL BUYS KAPAR LAND FOR RM18.9 MILLION
The Edge, 18/1/2024 & The Star, 19/1/2024
FM Global Logistics Holdings Bhd is buying two pieces of land totalling 5.68 acres in the Setia Alaman Industrial Park, Klang, from property developer Petaling Garden Sdn Bhd for RM37.86 million, cash, or RM153 per sq. ft. The group has signed a sale and purchase agreement with Petaling Garden to buy a 2.84-acre piece of land in the area for RM18.93 million, marking its second acquisition after the one entered in December 2023, where FM Global Logistics acquired a similar-sized piece of land from Petaling Garden in the same area also for RM18.93 million. That acquisition is still pending completion.
The proposed land acquisitions are to facilitate the group’s future expansion of its third-party logistics (3PL) warehousing and distribution services. The properties are strategically located in an established industrial area with good infrastructure and connectivity such as the NKVE-Setia Alam Link, New Klang Valley Expressway, New North Klang Straits Bypass and Federal Highway for ease of logistics. The properties are close to major seaports such as Northport and Westports in Port Klang, which provides an advantage for the group in view that the group is principally engaged in multimodal freight services.
BDB, ENFINITI ESCAPES PLAN ECO-TOURISM PROJECTS IN LANGKAWI
The Edge, 16/1/2024, The Star & The Sun, 17/1/2024
BDB Land Sdn Bhd, a wholly owned subsidiary of Bina Darulaman Bhd (BDB), is cooperating with Enfiniti Escapes (M) Sdn Bhd to undertake eco-tourism projects in Langkawi. Both partied planned to form a joint venture to develop forest chalets or eco-tourism-concept developments on a 4.04ha at Darulaman Sanctuary, Lubuk Semilang. BDB Land will carry out a detailed study to identify the area that will be developed while Enfiniti Escapes will focus on the overall concept as well as design development based on research implemented by BDB Land. The joint-venture development is another continuing effort carried out by BDB through BDB Land to create new attractions in Langkawi which indirectly would help the state government develop the resort island.
TANCO GETS MINISTRY’S APPROVAL FOR SMART PORT PROJECT
The Edge, 16/1/2024 & NST, 17/1/2024
Property cum leisure and resorts company, Tanco Holdings Berhad, has received the approval from the Transport Ministry to develop a smart container port in Negeri Sembilan. Tanco said Midports on Monday received a letter from the Marine Department notifying that the ministry had no objections to the proposed port project. It also gave its approval-in-principle, subject to development orders and approvals on environmental impact assessments, among others. Other conditions include appointment of a licensed surveyor to determine the section of the sea required for the jetty or other on-water structures.
TDM INVESTS RM29 MILLION FOR TWO HOSPITALS
The Edge, 17/1/2024, The Star & The Sun, 18/1/2024
TDM Bhd, a subsidiary of the Terengganu state government, has invested RM29.1 million to build two hospitals in 2024 namely a 100-bed KMI Chukai Medical Centre in Kemaman and the takeover of Razif Hospital in Klang, Selangor. Both of these hospitals will be managed by TDM’s subsidiary Kumpulan Medic Iman Sdn Bhd (KMI Healthcare). The group plans to expand its medical network on the East Coast in the next five years as an effort to meet the increasing demand for the health services offered by TDM. Currently, there are five hospitals under the KMI Healthcare network, namely KMI Kuala Terengganu Medical Centre, Kuala Terengganu; KMI Kuantan Medical Centre, Pahang; KMI Kelana Jaya Medical Centre, Selangor; KMI Taman Desa Medical Centre, Kuala Lumpur, and KMI Tawau Medical Centre, Sabah. Since there is no hospital branch in Kelantan, the group is planning to create an ‘East Coast Belt’ within the next five years, as part of the expansion plan.
CAPSTONE CORPORATE SUITES TO CHANGE BATU KAWAN’S SKYLINE
The Sun, 18/1/2024
Sarawak-based PE Land Sdn Bhd, a pioneer developer in Bandar Cassia, Batu Kawan, broke ground recently for its third project Capstone Corporate Suites, after successfully completing two significant projects in this northern region including the 24-acres outlet mall, Design Village Penang. Capstone Corporate Suites is set to be the first Grade A, Green Office Tower in Batu Kawan offering the first-of-its-kind commercial offices and retail units to local and multinational companies seeking a unique and sustainable workspace environment in the northern region. Capstone Corporate Suites is strategically located adjacent to Design Village, and Anggun Residences, as well as a 32-acre Linear Park. It occupies a land area of 2.4 acres of the total 40 acres land area owned by PE Land. The gross development value for this project is estimated to be RM500 million, with the project expected to reach completion in 2027.
Construction of this 36-storey tower will begin soon after the groundbreaking ceremony by PE Land’s team of local contractors and consultants from the Penang state. The tower will comprise 17 retail lots ranging from 2,110 sq. ft. to 7,623 sq. ft. and 395 office spaces ranging from 1,179 sq. ft. to 3,859 sq. ft. that is designed to be flexible. The development will include 1,740 covered parking lots with additional 1,600 carpark lots available next door in Design Village.
The project is intended to address the evolving needs of the community in Bandar Cassia, Batu Kawan, which has transformed over time to accommodate international firms including MNCs looking to set up operations or regional offices, as well as local companies like start-ups, Micro, Small and Medium Enterprises (MSMEs), and Small Medium Enterprises (SMEs). It also aims to fill the demand gap for Grade A office space in the region for potential foreign direct investment into Malaysia with requirements for contemporary, concise, and well-layout office spaces integrated into modern amenities and infused with green initiatives.
RM178 MILLION FOR BRIDGE, ROAD UPGRADES
The Sun & The Star, 15/1/2024
RM178.7 million has been allocated to the Public Works Department (PWD) here to expand bridges and upgrade roads in Pontian, Johor. The ongoing projects were the expansion of the Sungai Pontian Kecil bridge at a cost of RM23.1 million and the upgrading of a road from Jalan Pekan Nanas to Tanjung Piai (RM65.6 million). An allocation of RM90 million was also approved for the construction of a road from Bukit Nyamuk in Kluang to Kampung Puteri Menangis. The project is to expand the Sungai Pontian Kecil bridge from two lanes to four lanes. It is expected to be completed in September 2025.
The department has also submitted several proposals to expand and upgrade the road from Maktab Rendah Sains Mara to Tampok town in Benut and from Benut to the Simpang Renggam toll plaza. Another proposal is the widening of the state road from Ayer Baloi to the Sedenak toll plaza since there are many factories that provide thousands of jobs to the people in Pontian, Simpang Renggam, Kulai and Batu Pahat districts.
ECOWORLD MALAYSIA INKS DEAL TO DEVELOP JOHOR LAND
The Edge, 18/1/2024, NST & The Star, 19/1/2024
Eco World Development Group Bhd’s (EcoWorld Malaysia) wholly owned subsidiary Eco Botanic 3 Sdn Bhd (EB3SB) has inked conditional agreements to jointly develop 13 parcels of freehold land (aggregate land area of 240.314 acres) in Pulai, Johor Baru. EB3SB signed a conditional development agreement with Permodalan Darul Ta’zim Sdn Bhd (PDT), where PDT agreed to nominate EB3SB to purchase and develop the land. EB3SB has also entered into a conditional sale and purchase agreement with River Retreat Sdn Bhd (RRSB) to purchase the 240.314 acres of land for RM450.13 million.
This marks the group’s second land acquisition in Iskandar Malaysia within the span of less than five months. The group has announced that it proposed to acquire 403.78 acres of industrial land in Kulai, Johor in September 2023. Located immediately adjacent to Eco Botanic and Eco Botanic 2, two of the group’s existing matured townships in Iskandar Malaysia, the acquired land is proposed to be developed into Eco Botanic 3, a mixed residential and commercial township development, suitable for both first-time home buyers and the M40 group. This development has a preliminary estimated gross development value of RM3.88 billion. The land has excellent connectivity to major highways, such as the Malaysia-Singapore Second Link Expressway and the Iskandar Coastal Highway.
SARAWAK – COMPENSATION IN LIEU OF AFFORDABLE HOMES
The Sun, 18/1/2024
Private housing developers planning on developing large-scale projects in Sarawak are no longer required to build affordable homes starting from 1Q24. Instead, developers involved in projects that span 10 acres or more are required to make compensation in lieu through a housing trust fund which would allow the state government to use these funds for the development of affordable homes on the specific project sites. Previously, state laws required the private sector to allocate 30% of housing schemes or mixed development projects to construct affordable homes when the developed land area was 10 acres (4,047ha) or more. Currently, the state is amending the housing regulations to take over the construction of low-cost homes using the housing trust fund, as well as the payment quantum for the private developer to the state trust fund. This decision is made to prevent issues of delay in projects.
BLD PLANTATION ACQUIRES TWO BINTULU PROPERTIES FOR BUSINESS EXPANSION
The Edge & The Star, 17/1/2024
BLD Plantation Bhd, a Sarawak-based plantation group has acquired two properties in Bintulu, Sarawak, for RM24 million for its business expansion. The group via its wholly owned unit, Kinrara Palm Oil Refinery Sdn Bhd, had entered into separate sale and purchase agreements (SPAs) with Syarikat Sebangun Sdn Bhd for the purchase of a 1.4533-ha property for RM7 million and a 3.459ha property for RM17 million. BLD Plantation said that the purchase considerations were determined through negotiations on a “willing-buyer willing-seller” basis, taking into account the market value of the properties. The group added that the proposed acquisitions align with its future business expansion plans, considering the strategic location and easy accessibility of the land for potential development.
SCIB WINS RM97.7 MILLION EPCC CONTRACT
The Star, 17/1/2024
Sarawak Consolidated Industries Bhd (SCIB), specialist in industrialised building systems, has accepted the letter of award and acceptance (LOA) from Landasan Kapital amounting RM97.7 million for engineering, procurement, construction, and commissioning (EPCC) contract. The contract involves comprehensive construction responsibilities for the University Malaysia Kelantan’s new student residence at Kampus Bachok. The project scope includes supplying materials, labour, tools, and equipment for the execution of civil and structural, architectural, and mechanical works.