Week 4 - 2024
DOSM: INFLATION STAYED AT 1.5% IN DECEMBER 2023
The Star, The Edge, The Sun & NST, 23/01/2024
Malaysia’s headline inflation rate remained at 1.5% in December 2023, with the consumer price index recorded at 131.2 points versus 129.2 in 2022, according to the Department of Statistics Malaysia (DOSM). There were lower increases in the restaurants and hotels group (3.7%; November 2023: 4.3%), miscellaneous goods and services (2.7%; November 2023: 2.3%), as well as food and non-alcoholic beverages (2.3%; November 2023: 2.6%). Main groups that showed increases were health (2.5%; November 2023: 2.3%) and transport (0.3%; November 2023: 0.1%).
Annual headline inflation rose by 2.5% in 2023, compared with 3.3% in 2022. This was due to a 5.6% increase in restaurants and hotels (2022: 5.0%), a 4.8% rise in food and non-alcoholic beverages (2022: 5.8%), and 2.4% growth in miscellaneous goods and services (2022: 2.0%).
Core inflation increased at a slower pace of 1.9% in December (November 2023: 2.0%) and still surpassed the overall national inflation rate of 1.5%. This was due to the restaurants and hotels group (+3.7%), as well as food and non-alcoholic beverages (+3.2%), in December 2023.
BANK NEGARA’S BENCHMARK INTEREST RATE REMAINS AT 3%
The Sun, The Edge, NST & The Star, 25/01/2024
The Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) has decided to maintain the Overnight Policy Rate (OPR) at 3%. In its monetary policy statement, BNM said at the current OPR level, the monetary policy stance remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects.
FAST-TRACKING RM170 MILLION RAIL STATION FOR SEREMBAN
The Star, 20/01/2024
A new RM170 million railway station will be built in Seremban within two years, while another nine stations in Klang Valley will be upgraded at a cost of RM110 million. The Seremban Sentral station, in fact, will be the country’s first net-zero carbon emission station. All 10 projects will be part of the Klang Valley Double Tracking project (KVDT2). The nine other stations are Salak South, Bangi, Pantai Dalam, Seri Setia, Batu Tiga, Padang Jawa, Klang, Jalan Kastam and Port Klang. Work on these stations will start in two weeks. Dhaya Maju LTAT Sdn Bhd has been awarded the project.
ERL CONCESSION EXTENDED BY 30 YEARS
The Sun, The Star & The Edge, 24/01/2024
The government has extended the concession of Express Rail Link Sdn Bhd (ERL) to operate the KLIA Ekspres and KLIA Transit services from 2029 to 2059. The 30-year extension will enable ERL to determine the fare based on the market rate. The government will also not be paying any charges or fees from the revenue of Passenger Service Charge (PSC) to ERL. Currently, ERL is receiving PSC collection amounting to RM1 for each domestic flight passenger and RM5 for international flight passenger through KLIA.
EUPE CORP BUYS TWO MORE SUNGAI PETANI PLOTS FOR INVESTMENT
The Edge, 20/01/2024
Eupe Corp Bhd is purchasing two additional parcels of freehold land in Sungai Petani, located in the Kuala Muda district of Kedah, for RM40.68 million, which will increase the land area around its proposed township, for investment. It is buying the freehold plots, totalling 55 acres, from Sing Na Tian Development Sdn Bhd (SNTDSB). The plots are also contiguous to two other parcels that Eupe bought in 2022 from the same party for RM55.31 million for 74 acres.
SIME DARBY PROPERTY, LAGENDA PROPERTIES SET UP SEED HOMES LAGENDA
The Edge, 24/01/2024
Sime Darby Property Bhd, through its wholly owned subsidiary Seed Homes Sdn Bhd, has signed an agreement with Lagenda Properties Bhd to set up Seed Homes Lagenda, a 50:50 joint venture to develop affordable housing. Seed Homes is a new portfolio under Sime Darby Property set up “to deliver innovative solutions in the affordable homes segment” and Seed Homes Lagenda will be Sime Darby Property’s maiden foray into the affordable township sector. Seed Homes Lagenda is set to embark on its first affordable township project in Gurun, Kedah via the acquisition of a 249-acre land parcel from Sime Darby Property. The project aims to capitalise on its strategic location and spillover effects of the potential industrial growth in Gurun and is anticipated to yield over 3,000 affordable homes.
FORESTHILL RESIDENCES OFFICIALLY LAUNCHED AND IS 70% BOOKED
The Edge, 23/01/2024
Ehsan Bina Group officially launched ForestHill Residences on 21st January 2024. The development, located in Damansara Perdana, has achieved over 70% in sales since its soft launch in January 2024. With a gross development value of RM450 million, ForestHill Residences is located on a-12acre site and will feature two towers and comprise 618 total units. The built-up areas are between 953 sq. ft. and 1,527 sq. ft. The selling prices are from RM580 psf and completion is expected in 1Q27. ForestHill Residences targets young executives that are starting a family. It emphasises green initiatives such as electric vehicle charging pods, rainwater harvesting, and a lake that serves as an on-site stormwater detention tank.
DEVELOPER LAUNCHES SALES GALLERY OF ITS FIRST AFFORDABLE RESIDENTIAL PROJECT IN PUCHONG
The Star, 22/01/2024
Mah Sing Group Bhd has launched a sales gallery for M Terra which is a transit environment district (TED) development in Puchong. M Terra offers homes with a starting price of RM250,000. Sitting on 3.7 acres of land, M Terra offers serviced apartments with an estimated gross development value (GDV) of RM368.8 million. The development offers 2 and 2+1 bedroom units ranging from 550 sq. ft. to 1,259 sq. ft. M Terra will feature an “express car park ramp” and be equipped with a rainwater harvesting system and EV charging stations, as well as a 50m long pool, co-working spaces, fitness garden, kids’ lounge and more.
AVALAND LAUNCHES CASA EMBUN PHASE 2 IN CYBERSOUTH
The Edge, 23/01/2024
Avaland Bhd (formerly MCT Bhd) launched the second phase Casa Embun in Cybersouth on 13th January 2024. The recent launch follows the success of Casa Embun Phase 1, which has achieved a sales rate of more than 85% since it was launched in January 2022. With a gross development value of RM202 million, Casa Embun Phase 2 comprises 505 units of serviced apartments ranging from 550 to 1,541 sq. ft for 2 bedroom and 3 bedroom units. The selling prices start from RM250,000 per unit and the development will be provided family-friendly facilities such as a multipurpose pavilion with a barbecue facility as well as outdoor dining facilities for family gatherings, a themed playground, a 25m swimming pool, a children’s wading pool, a gymnasium overlooking the pool, and sports facilities such as futsal and badminton courts, a 0.9km jogging path and electric vehicle charging facilities at the carpark.
MATRIX CONCEPTS OFFICIALLY LAUNCHED LEVIA RESIDENCE IN CHERAS
The Star, The Edge & NST, 23/01/2024
Matrix Concepts Holdings Bhd officially launched Levia Residence in Pandan Perdana, Cheras on 22nd January 2024. With a gross development value of RM523 million, the 4.7-acre Levia Residence comprises two 36-storey apartment towers, consisting of 389 units each tower. The development will have four layouts between 767 sq. ft and 1,364 sq. ft. The first tower, which was soft launched in October 2023, has been 75% booked. The second tower of Levia Residence will be open for sale later date. The built-up areas of the units will be the same as the first tower but will be priced slightly higher than the first tower. Both towers are expected to be completed in 3Q27. The development will offer 25 facilities including a few gardens, a farm kitchen, 35m infinity pool, Jacuzzi, sky lounge, outdoor co-working deck, kids’ playground, gymnasium, digital self-service concierge kiosks, golf simulator and electric vehicle charging stations. The security systems within the development will be enhanced by smart AI-powered CCTV, as well as smart facial and iris recognition access to the lift lobby.
BANGSAR HILL PARK DEVELOPMENT LAUNCHES SALES GALLERY FOR SECOND PHASE; FIRST PHASE 95% SOLD
The Edge, 23/01/2024
Bangsar Hill Park Development Sdn Bhd launched the sales gallery of the second phase of the 5.87-acre Bangsar Hill Park condominium development in Bangsar, Kuala Lumpur, named Talisa, on 20th & 21st January 2024. Bangsar Hill Park is a collaboration between Sunsuria Bhd and Suez Capital Sdn Bhd. Talisa’s sales gallery, spanning 6,099 sq. ft., is located in KL Gateway Mall, Kuala Lumpur. The 1.17-acre Talisa, which has a gross development value of RM1.1 billion, will comprise 802 units across two blocks — Blocks B and C. Block B is a 57-storey tower with 410 units while Block C is a 55-storey tower with 392 units. The built-up areas of the units range from 917 to 1,478 sq. ft., for 2 to 3+1 bedrooms and priced from RM914,000. Each floor will house eight units and the facilities in Talisa include an Olympic-length pool, sauna, steam room, co-working spaces, kids pool, water play area, pet-friendly rooftop and more. Residents will also be able to enjoy health and wellness facilities such as concierge nursing services, vital signs assessments, first aid assistance, medical equipment loan and other health-related assistance through Sunsuria Care. The first phase of Bangsar Hill Park, named Verdura, has been 95% sold.
UEM SUNRISE’S ALLEVIA IN MONT’KIARA IS 90.5% SOLD; EXPECTS HANDOVER IN 1Q25
The Edge, 25/01/2024
UEM Sunrise Bhd’s Allevia in Mont’Kiara, Kuala Lumpur has achieved a 90.5% sales rate and is scheduled for handover in 1Q25. Additionally, the project has topped out on 23rd January 2024 with the construction progress standing at 75%. Sitting on a 2.94-acre freehold land, Allevia has a gross development value of RM545.9 million. The development comprises two towers with a total of 294 units ranging between 1,703 and 2,634 sq. ft. and priced from RM1.5 million to RM2.5 million. The facilities include a 0.9-acre open facility deck that comes with a lap pool, open lawn, wet and dry playground for children as well as barbecue area.
KPKT TO HELP SECURE FINANCING FOR DEVELOPER OF HEKTAR GOMBAK RESIDENCY ‘SICK’ PROJECT
The Edge, 23/01/2024
The Housing and Local Government Ministry will continue to assist the developer of Hektar Gombak Residency in securing financing to complete the affordable housing project that has since fallen under the “sick” category. The progress status of the project is delayed due to financial issues faced by the developer. Hektar Gombak Residency is classified as a “sick” project due to delays compared to the work schedule set in the sale and purchase agreement (SPA) and the failure to complete it within the SPA period. KPKT through the Task Force on Private Housing and Abandoned Projects (TFST) is committed to continuing the national agenda in assisting troubled private housing projects, whether categorised as delayed, sick or abandoned, to ensure the interests of homebuyers are protected and to ensure the sustainability of the affordable housing industry as a whole. The Hektar Gombak Residency project is a mixed development consisting of five 46-storey apartment blocks, involving 2,400 housing units in Jalan Gombak, Setapak.
FAJARBARU APPOINTED TO DEVELOP RM192 MILLION AFFORDABLE HOUSING PROJECT IN PUTRAJAYA
The Edge & The Sun, 25/01/2024
Fajarbaru Builder Group Bhd has been appointed as the developer of a RM192 million affordable housing project in Putrajaya. To be known as Residensi Cemara, it comprises 480 units of Residensi Madani and 320 units of Residensi Wilayah in Precinct 11, Putrajaya. The project has a gross development value (GDV) of RM192 million with a development period of three years.
TUJU SETIA WINS RM209 MILLION SERVICED APARTMENTS JOB
The Sun, 25/01/2024
Construction services company Tuju Setia Bhd won a RM209 million contract to undertake main contractor works for a high-rise development in Subang Jaya, Selangor from USJ Citypoint Sdn Bhd, a subsidiary of Avaland Bhd (Avaland). The development project named Alora Residences is slated to be completed in 33 months, with work tentatively scheduled to commence in 2Q24. Alora Residences is the first phase of 2Fifth Avenue that offers a nature-inspired green living certified as GreenRE Gold by Real Estate and Housing Association Malaysia.
SIME DARBY PROPERTY’S ELMINA LAKESIDE MALL SECURES 85% TENANCY PRIOR TO OPENING IN 3Q24
The Edge, 24/01/2024
Sime Darby Property Bhd’s Elmina Lakeside Mall in the City of Elmina, Shah Alam, has secured 85% of confirmed tenancy prior to its completion and opening in 3Q24. The 17.2-acre Elmina Lakeside Mall, which is the City of Elmina’s first mall, will have a gross floor area of approximately 400,000 sq. ft. and 712 car parks. The confirmed tenants include drive-through restaurants, an array of local and international dining options, home and living, services and conveniences, health and wellness as well as boutique lifestyle retailers. Some of the brands are Jaya Grocer, Harvey Norman, The Coffee Bean & Tea Leaf, Nak Nak, Inside Scoop, Kenny Hills Bakers, Jibby & Co, Chica Bonita, Sushi Zanmai, Para Thai, Super Saigon, Dolly Dim Sum, Watsons, Toys“R”Us, Twigs Bookshop, Lavender Bakery, Nyonya Colors, Ali, Muthu & Ah Hock, The Bike Artisan, Pets Wonderland and Happy Fish. The mall fronts the 35-acre Elmina Urban Park and is designed with an al fresco retail concept combined with biophilic elements such as lakeside dining outlets, landscaped boulevards, water features and natural surroundings.
LB ALUMINIUM BUYS FACTORIES IN SELANGOR FOR RM30.42 MILLION TO BOOST WAREHOUSING SPACE
The Edge, 23/01/2024
LB Aluminium Bhd is acquiring two factories and an office on a 4.56-acre freehold parcel of land in Beranang, Selangor, for RM30.42 million, cash. The group said it has entered into a sale and purchase agreement with Puspajaya Realty Sdn Bhd (PRSB) for the proposed land acquisition. PRSB is principally involved in the property development and management segments. According to the group, it is buying the property, which is sited next to its manufacturing operations and factories, to grow its warehouse capacity in Beranang, relocate its operations and cater for any future expansion plans.
WASCO TO DISPOSE OF SHAH ALAM LAND FOR RM40 MILLION
The Edge, 25/01/2024
Energy infrastructure group Wasco Bhd is disposing a parcel of land together with storage buildings erected on site in Shah Alam for RM40 million to Array Metal (M) Sdn Bhd. The freehold land, measuring 4.5 acres, is located along Jalan Bukit Kemuning in Section 34. Wasco had spent RM10.19 million for the acquisition and related costs, and it has a carrying value of RM7.43 million as at end-2022. Array Metal is principally engaged in manufacturing of cable support system, perforated steel material and flex strut channel metal framing.
PENANG URGES PLUS TO IMPLEMENT JURU-SUNGAI DUA ELEVATED HIGHWAY PROJECT FOR TRAFFIC DISPERSAL
The Edge, 20/01/2024
The Penang state government has called on PLUS Malaysia Bhd (PLUS) to implement the Juru-Sungai Dua elevated highway project for the dispersal of the worsening traffic congestion in the area. The state government had raised the matter with the Public Private Partnership Unit (Ukas) of the Prime Minister’s Department in a meeting on 18th January 2024. Given that the traffic congestion is caused by the contra routes on the North-South Highway (Juru-Sungai Dua and vice versa), as well as between the Penang Bridge and Perai, which leads to slow moving vehicles, thus leading to severe congestion, the proposed construction of the elevated highway can separate the traffic flow of users on the highway, as well as local users.
BELLEVIEW GROUP’S GEM RESIDENCES IN SEBERANG PERAI TOPS OUT WITH 60% SOLD
The Edge, 24/01/2024
Belleview Group and LTC Corporation Limited, a Singapore Stock Exchange-listed company, have topped out GEM Residences with 60% of units sold. The development is located in Seberang Perai, Penang. With a gross development value of RM600 million, GEM Residences sits on a 5.34-acre freehold land and consists of 978 units spread across four 38-storey towers namely Coral, Ruby, Sapphire and Diamond. GEM Residences also consists of 15 commercial units on the ground floor which are to be leased out. GEM Residences is located in Jalan Baru, Seberang Perai, which connects to the North-South Expressway and Butterworth Outer Ring Road. There are plans for an LRT station and a Monorail station to be located in front of the development as part of the Penang Transport Master Plan.
IJM JV IN TALKS FOR TWO FOREIGN HOTELS IN LIGHT CITY
The Star, 22/01/2024
IJM Perennial Development Sdn Bhd (IJMPD) is currently negotiating for a China and a US-brand name hotels to operate in the RM4.5 billion Light City mixed development project in Penang. IJMPD is a joint-venture (JV) company between IJM Corp Bhd and Singapore based Perennial Holdings Pte Ltd to oversee The Light City project located next to the first Penang bridge. The company has allocated a 31-storey building block to accommodate the two hotels and nine-storey offices. Both the four and five-star hotels will have a gross development value of RM650 million and a total of 459 rooms. This could be the country’s first China hotel brand name, a China-based operator will operate the hotels aimed at the corporate market, serving the needs of businessmen visiting Batu Kawan and Bayan Lepas Industrial Parks. The recent inflow of investment into Penang will fuel the need for hotel rooms. He noted that the company will soon be announcing the two hotels and their respective operators. The Light City’s main attractions include a 680,000-sq. ft. shopping complex called The Waterfront Shoppes, accommodating a 45,000 sq. ft. cineplex, a 30,000 sq. ft. supermarket, a 30,000 sq. ft. food court and the 70,000 sq. ft. Penang Waterfront Convention Centre. The mall will also have a multi-storey car park with electric vehicle charging stations and 3,000 parking bays. IJMPD had recently signed a tenancy agreement for a Hong Kong-based supermarket brand to be one of the mall’s anchor tenants. The company will also sign with a well-known Cineplex brand name soon. IJMPD’s shopping complex will have 40% allocation for food and beverage and entertainment The group will sign with most tenants in 2024, as the mall is scheduled to be ready by early 2025. Meanwhile, The Light City also has a residential component known as the Mezzo, a 30-storey building with 456 condominiums, priced from RM900,000 when launched in early 2021. Since the soft launch in February 2021, IJMPD has sold about 70% of the Mezzo residence. Many of the customers were from Singapore and Hong Kong who were keen to invest because of the weakening ringgit. Phase 2 of the Light City development will have a 340,000 sq. ft. net lettable area, a commercial tower and the Essence residential condominium. The Light City is developed in two phases with phase one consisting of Penang Waterfront Convention Centre (PWCC); The Waterfront Shoppes with GFA of 1 million sq. ft; residential project named Mezzo; as well as hotels and offices. Phase two will include an additional GFA of 500,000 sq. ft. to The Waterfront Shoppes; Lightwater Residences and other future developments.
PENANG RECORDS INCREASE IN CRUISE TOURISM
The Sun, 25/01/2024
Penang recorded a rise in cruise tourism in 2023 with the arrival of a total of 573,178 international tourists at the Swettenham Pier Cruise Terminal (SPCT) post Covid-19 pandemic. State Tourism and Creative Economy Committee chairman said the figure represented a significant increase of 31% compared with 439,012 international tourists in 2022. The statistics of tourism profiles from docking of cruise ships in Penang in 2023 showed the diversity of tourists from all over the world, with tourists from Singapore topping the list in numbers, followed by India and Indonesia. If compared with international tourist arrivals of 409,943 in 2019, the figure for 2023 shows an increase of 39.82%.