Week 8 - 2024
MALAYSIA’S TOTAL TRADE IN JANUARY 2024 REBOUNDS BY 13.3% Y-O-Y TO RM234.73 BIL – MITI
The Edge, 20/02/2024
In January 2024, Malaysia experienced a significant rebound in total trade, marking a double-digit expansion of 13.3% year-on-year to RM234.73 billion, following ten consecutive months of contraction. The Ministry of Investment, Trade and Industry reported that exports increased by 8.7% to RM122.43 billion, while imports rose by 18.8% to RM112.3 billion, resulting in a trade surplus of RM10.12 billion. Export growth was driven by higher shipments of various goods, including petroleum products, machinery, equipment, and metal products. Major trading partners such as Asean, the United States, the European Union, and Japan also recorded expansion in trade. Exports of manufactured goods, which accounted for the majority of total exports, improved by 9.3% year-on-year, while exports of agriculture goods rebounded with a double-digit expansion of 17.5%. Trade with Asean, China, the US, the EU, and free trade agreement partners saw notable increases, contributing to Malaysia’s overall trade growth.
MANUFACTURING INDUSTRY AT 79.8% OPERATING CAPACITY IN 4Q23 – DOSM
The Edge, 21/02/2024
The Department of Statistics Malaysia reported that the manufacturing industry operated at 79.8% capacity in 4Q23, a slight decrease from 80.2% in the same period of 2022. Lower capacity utilization was mainly due to decreases in sub-sectors like petroleum, chemical, rubber, and plastic products, as well as electrical and electronic products. While some quarters saw expansion, overall capacity utilization declined in 4Q, influenced by factors like low demand and machinery maintenance. Sub-sectors such as non-metallic mineral products and basic metals recorded high capacity utilization, while export-oriented industries experienced a continuous decline. Domestic-oriented industries, however, remained vibrant, with capacity utilization increasing to 82.8%.
At the state level, six states exceeded the national capacity utilization rate, while some states experienced year-on-year decreases. Overall, the manufacturing industry’s performance in 2023 showed a lower capacity utilization rate compared to 2022, with most sub-sectors experiencing declines except for non-metallic mineral products and transport equipment.
SARAWAK AIMS TO BECOME GLOBAL AVIATION HUB
The Edge, 19/02/2024
Sarawak aims to become a global aviation hub similar to Dubai, United Arab Emirates (UAE), once its airlines commence operations. The global aviation hub status would create significant economic opportunities for the state. The acquisition of MASwings Sdn Bhd by the Sarawak government is expected to be finalised in the 2Q or 3Q24.
BATIK AIR AND JIANGSU TOPVIEW INK MOU TO EXPAND CHINA ROUTES
The Edge, 20/02/2024
Batik Air and China’s Jiangsu Topview Cultural Tourism Industry Development Co Ltd. have signed an MOU to expand charter flights between China and Malaysia, adding four routes. The move follows successful charters initiated by Jiangsu Topview, aiming to cater to Chinese holiday demand. The MOU was signed highlighting the potential for increased Chinese tourism to Malaysia. This collaboration comes amid a substantial growth in Chinese arrivals to Malaysia, reaching 1.47 million in 2023, compared to 212,603 in 2022.
P.A. RESOURCES BUYS FACTORY LAND FOR RM21 MILLION
The Edge & The Star, 20/02/2024
PA Resources Bhd, an aluminium extruder, is acquiring two adjoining industrial land parcels in Pekan Batang Berjuntai, Kuala Selangor for RM21 million to construct a new factory. The wholly-owned subsidiary, PA Extrusion (M) Sdn Bhd, has entered into agreements with Niken Steel (M) Sdn Bhd for the purchase. The plots, totalling 72,840 sq. ft., have leasehold expirations in 2096. This acquisition aims to expand the group’s production capacity from 3,200 to 7,000 tonnes a month, addressing near full capacity at the existing factory. Financing for 80% of the purchase price will be sought from financial institutions, with the remaining 20% will be funded internally.
SUNWAY PROPERTY SET RM2.6 BILLION SALES TARGET FOR 2024
The Edge, 21/02/2024
Sunway Property, the real estate arm of Sunway Bhd, has set a sales target of RM2.6 billion for 2024 after achieving RM2.4 billion in sales and unbilled revenue of RM4.1 billion in 2023. The company delivered launches worth RM4.4 billion during the same period and holds a total remaining landbank of 2,647 acres with a potential gross development value (GDV) of RM52.9 billion. Upcoming launches include Sunway Velocity 3 in Kuala Lumpur, Sunway Aviana in Johor, Sunway Bayu in Ipoh, and Sunway Wellesley in Penang. The company also expects significant profit boosts from completing international projects such as Parc Central and Ki Residences in Singapore and the next phase of Tianjin Eco City in China.
TH PROPERTIES SELLS AROUND 50 ACRES OF BANDAR ENSTEK LAND TO FOUR COMPANIES FOR RM70 MILLION
The Edge, 21/02/2024
TH Properties Sdn Bhd, wholly owned by Lembaga Tabung Haji, finalized sale and purchase agreements with four companies acquiring approximately 50 acres of land in Bandar Enstek, Negeri Sembilan, for RM70.257 million. The companies involved are GoBuilders Netsoft Sdn Bhd, Epsom College via Educ8 Group Sdn Bhd, Malindo Airways Sdn Bhd (Batik Air), and Meta Legends Sdn Bhd. Malindo Airways purchased 4.13 acres for a training and in-flight catering complex, GoBuilders Netsoft acquired 13.43 acres for a cold chain logistics technology venture, Educ8 Group bought 30 acres for Epsom College’s expansion, and Meta Legends secured 2.254 acres for future commercial development. The four companies are projected to bring in over RM420 million in future investments and generate over 2,000 jobs, further contributing to the economic development of Bandar Enstek and Negeri Sembilan.
EKOVEST SELLS 13 PARCELS OF LAND NEAR JALAN PAHANG, KL FOR RM67 MILLION IN RPT DEAL
The Edge, The Star & NST, 23/02/2024
Ekovest Bhd is selling 13 parcels of land near Jalan Pahang, Kuala Lumpur to its wholly-owned subsidiary, Airman Sdn Bhd, a subsidiary of Lim Seong Hai Resources Sdn Bhd (LSHHSB), for RM66.8 million. The negotiations were conducted at market value based on the draft Kuala Lumpur Structural Plan 2040 by Kuala Lumpur City Hall (DBKL), indicating a potential mixed development and residential use with a plot ratio of 3.5 to 4.0. The sale proceeds will be used to reduce debts and for working capital. The land, totaling 3.1 acres, is located in Section 85, Town of Kuala Lumpur. The transaction is slated for completion in 3Q24, pending any unforeseen circumstances.
SUNCON BAGS RM720.99 MILLION SHOPPING MALL PROJECT FROM PARENT COMPANY
The Edge & NST, 21/02/2024
Sunway Construction Sdn Bhd (SCSB), a wholly-owned subsidiary of Sunway Construction Group Bhd (SunCon) has secured a substantial contract for a shopping mall project in Perak, Malaysia, valued at RM720.99 million. The project includes various structures spread across 19.47 acres and is expected to be completed by 31 January 2027.
IPC SHOPPING CENTRE UNVEILS NEW ANCHOR TENANT MR DIY PLUS, MORE F&B OFFERINGS OPENING THIS YEAR
The Edge, 22/02/2024
IPC Shopping Centre in Mutiara Damansara, Petaling Jaya, Selangor, has unveiled its new anchor tenant, MR DIY Plus, as well as, a line-up of additional food and beverage (F&B) offerings that are expected to be opened this year. MR DIY Plus, which will join the other anchor tenants at IPC Shopping Centre such as Ben’s Independent Grocer, Harvey Norman and Spotlight when it opens this quarter, will be a 4-in-1 concept store occupying 23,779 sq. ft. and will feature brands like EMTOP, MR DIY, MR Dollar and MR Toy. As for the upcoming F&B tenants, they include Canton Boy, Mr Vegan, Pezzo Pizza, BabaBoy, BananaBro, Bread History & Sandwich Box, KPOP Madang, Taste of Medan, Noodle King House as well as a Western restaurant with a bar concept adjacent to Canton Boy. These offerings will join the other F&B brands such as Jom Cha by Farm Fresh, Squid Boy, Dunkin’ Donuts, and Mee Tarik Warisan that were introduced last year. IPC Shopping Centre has also repurposed and transformed some of its spaces, including the Level 1 Link Bridge to house the Träffas Work Pods (fully furnished private work pods for rent that can also be transformed into a photo/recording studio, interview room or study corner).
TH PROPERTIES LAUNCHES PRISTINE PREMIER AND RIPOSO BIZ CENTRE
The Edge & The Star, 19/02/2024
TH Properties Bhd launched Pristine Premier and Riposo Biz Centre, their latest residential and commercial project, during the Karnival Hartanah Bandar Enstek in Negeri Sembilan. Pristine Premier offers 51 double-story terrace houses with a gross development value of RM19.18 million, featuring modern architecture and nature-inspired landscapes. Prices range from RM571,295 to RM863,160, catering to homebuyers seeking affordability and comfort in a well-connected township. Additionally, Riposo Biz Centre unveiled six shop offices with built-up areas ranging from 2,926 sq. ft. to 4,798 sq. ft., priced from RM927,500 to RM1,571,700.
VISIT SELANGOR YEAR 2025 TARGETS 7 MILLION TOURISTS; TO FOCUS ON ECOTOURISM PROMOTIONS
The Edge, 19/02/2024
The Selangor government aims to attract seven million local and international tourists in Visit Selangor Year 2025, with a focus on ecotourism. Selangor surpassed its 2023 tourist target, welcoming 6.54 million visitors. This year, an expected 5.6 million tourists are anticipated, primarily comprising domestic travelers. Efforts include promoting ecotourism in northern and southern Selangor, with campaigns like ‘Nak Bercuti? Pusing Selangor Dulu!’ for domestic tourists and ‘Splendid Selangor, Take Me Anywhere!’ for international visitors.
ECONOMIC ZONE TO FEATURE GREEN, HIGH-TECH ELEMENTS
The Star, 20/02/2024
The Johor state government plans to develop the Johor-Singapore Special Economic Zone (JSSEZ) by combining two key elements – green and high technology. To make the JSSEZ a success, the state government will use Shenzhen and Guangzhou as examples. The two Chinese cities’ transformation from fishing villages to metropolises attracted the interest of the Johor government to use the same methodology in several areas, especially in the JSSEZ. The state government will visit the two cities early next month and will meet with Chinese government officials to learn about the transformation process. In addition to government representatives, there will also be meetings with companies involved in technology, chemicals and data management, as well as potential investors.
JOHOR TO REVIVE SIX HOUSING PROJECTS WORTH OVER RM700 MILLION THIS YEAR
The Edge & NST, 21/02/2024
The Johor state government plans to revive one abandoned and five struggling housing projects, totaling 1,928 units worth over RM700 million, in collaboration with the Sick and Abandoned Project Monitoring Committee. These projects are spread across four districts and involve partnerships with the State Housing Development Corporation of Johor (PKPJ), local authorities, and technical agencies. The projects facing challenges include Taman Sri Unas Permai, Taman Desa, Taman Residensi Larkin Indah, Taman Molek Perdana, and Taman Impiana Kulai, while the abandoned project is in Taman Kulai Utama. The government aims to replicate the success of reviving five previous projects valued at around RM300 million over the past two years.
OWNERS TO FINALLY GET KEYS AFTER TWO-YEAR DELAY
The Star, 19/02/2024
Residensi PR1MA Larkin Indah apartment owners can look forward to moving in soon as the keys will be handed over starting 1 March this year. Although the project was finished two years ago, the units remained unallocated as the developer had not obtained the Certificate of Completion and Compliance (CCC). Out of 1,174 units, 1,113 have already been sold. Among the facilities at Residensi PR1MA Larkin Indah are a gym, multipurpose hall, surau, playground, mini library, kindergarten and barbecue area.
WEAKER RINGGIT A BOON FOR TOURISTS TO VISIT JOHOR
The Star, 20/02/2024
The weaker currency could benefit Johor’s tourism sector, potentially attracting more foreign tourists to its islands. Efforts are being made to promote sustainable tourism in the region, with collaborations with organizations like the United Nations Development Programme to enhance local capacity and prosperity through various initiatives such as language proficiency training and eco-friendly souvenir production.
BANGSAR HEIGHTS PAVILION PARTNERS WITH HYATT HOTELS CORPORATION
The Star, 19/02/2024 and NST, 20/02/2024
Property developer Bangsar Heights Pavilion (BHP) has partnered with a Hyatt Hotels Corporation affiliate to manage the Hyatt Place Johor Bahru City Centre, located in Quayside JBCC. With a portfolio spanning three decades and a gross development value of approximately RM5 billion, BHP brings extensive experience to the partnership. The Hyatt Place brand operates in 415 locations worldwide, and its expansion into Malaysia reflects the brand’s growth in Southeast Asia. The Quayside JBCC development, situated in Johor Bahru’s commercial district, features 482 serviced suites, 24 commercial retail units, and 200 hotel suites. The Hyatt Place Johor Bahru City Centre will offer guests dedicated work and sleep spaces along with recreational facilities like a business centre, meeting spaces, fitness centre, and swimming pool. Quayside JBCC aims to blend the area’s rich heritage with modern influences, providing residents with a glimpse into the past while embracing the future. Key figures from both BHP and Hyatt Hotels Corporation were present at the partnership ceremony, signaling a commitment to the success of the venture.
NEW PENANG HOTEL OFFERS SCENIC CITY, SEA VIEWS
The Star, 21/02/2024
Penang Marriott Hotel, located on Gurney Drive, marks the international hotel chain’s debut in Penang. With 223 luxurious rooms offering panoramic views, guests can enjoy amenities such as a 24-hour fitness center, outdoor infinity pool, and steam room. The hotel’s Greatroom serves as a versatile space for relaxation or work, while elite Marriott Bonvoy members can access the exclusive M Club lounge. Dining options include Italian cuisine at Kucina, international fare at Sago, and snacks at Lava Java. The hotel also features a stylish bar and lounge, La Siena multi-function space, and a pillarless grand ballroom with state-of-the-art technology for events. Additionally, five function rooms cater to various event needs with customizable setups and modern amenities.