Week 45 - 2023
MALAYSIA’S UNEMPLOYMENT RATE DROPS TO 3.4% AS LABOUR MARKET SHOWS POSITIVE TRENDS – DOSM
The Edge, 08/11/2023
Malaysia’s unemployment figures declined to 573,700 individuals in September 2023, yielding an unemployment rate of 3.4%, as reported by the Department of Statistics Malaysia (DOSM). The labour force saw a slight 0.1% increase to 16.95 million individuals, maintaining a labour force participation rate (LFPR) of 70.1%. In terms of sectors, the services sector led employment growth, with positive momentum also in manufacturing, construction, mining, quarrying, and agriculture. The 80% of the unemployed were actively seeking work, showing a minor drop to 458,900 individuals. Youth unemployment rates saw a decrease, with figures dropping to 10.6% for those aged 15-24, and to 6.7% for those aged 15-30. Meanwhile, the count of those outside the labour force edged up by 0.1% to 7.24 million, mainly due to household responsibilities and education. For the third quarter of 2023, the labour force climbed by 0.6% to 16.82 million, with employed persons also increasing to 16.25 million, and unemployment falling to 573,100. This resulted in a slight reduction in the unemployment rate to 3.4%. LFPR across states varied, with Selangor reaching the highest at 77%, indicating greater workforce participation, while the lowest unemployment rate was 0.5% in the Federal Territory of Putrajaya.
WHOLESALE AND RETAIL TRADE SALES UP 6.5% TO RM142.7 BILLION IN SEPTEMBER 2023
The Edge, 09/11/2023
Malaysia’s wholesale and retail trade recorded a sales value of RM142.7 billion, an increase of 6.5% year-on-year (y-o-y), in September 2023. For quarterly performance, sales of wholesale and retail trade registered RM424.9 billion in 3Q23, which grew 6.8% y-o-y. The 6.5% y-o-y growth in the wholesale and retail trade sector in September 2023 was largely driven by the wholesale trade sub-sector, which rose by 6.9%, or RM4.1 billion, to reach RM64.2 billion. Retail trade also expanded by registering an increase of 5.9%, or RM3.4 billion, to RM61.1 billion, followed by motor vehicles, with an increase of 7.0%, or RM1.1 billion, to settle at RM17.5 billion. The y-o-y increase of 6.8% in the 3Q23 for wholesale and retail trade was underpinned by the wholesale trade sub-sector, which expanded RM11.3 billion, or 6.3 %, to RM191.1 billion. This was followed by retail trade, which rose 5.9%, or RM10.1 billion, to reach RM181.3 billion.
GLOMAC TO BENEFIT FROM HEIGHTENED ACTIVITIES IN JOHOR
NST, 05/11/2023
Glomac Bhd says it should benefit from potential heightened activities in Johor with the proposed introduction of a special financial zone in Forest City, and a possible revival of the Kuala Lumpur-Singapore high speed rail project. The company is bullish given its existing presence in Johor through the Sri Saujana and Saujana Jaya township developments, which have a combined landbank totaling 238 acres and a total potential estimated gross development value (GDV) of RM800 million. The company is gearing up to introduce new projects worth about RM700 million in the current fiscal year. Among the new launches is the first phase of the Loop City Puchong integrated residential project, with a total estimated gross development value (GDV) of RM1.57 billion. The first phase, which has a GDV of RM338 million, consists of 980 units of small office/home office (SoHo) and serviced apartments, available in three sizes which are 450 sq. ft., 550 sq. ft., and 750 sq. ft. The indicative average selling price per unit is RM320,000.
KANGER ACQUIRES ANOTHER 15 UNITS OF ANTARA GENTING HIGHLANDS RESORT SUITES FOR RM19.8 MILLION
The Edge, NST & The Star, 07/11/2023
Kanger International Bhd has acquired 15 units of the proposed serviced apartments in Tower A of Antara Genting Highlands Resort Suites for RM19.77 million. Kanger’s wholly owned subsidiary KIB Global Resources Sdn Bhd had entered into a sale and purchase agreement with Aset Kayamas Sdn Bhd, the developer of the resort. Back in 2021, Kanger had already acquired 126 serviced apartments at Levels 30 to 45 in Tower A, Antara Genting Highlands Resort Suites for RM142.87 million. Antara Genting Highlands Resort Suites is located on 5.33 acres of freehold land. The project comprises four towers of 44- to 46-storey serviced apartments, with a total of 1,460 units.
AVALAND’S CASA EMBUN PHASE 1 IN CYBERSOUTH 70% TAKEN UP
The Edge, 06/11/2023
Avaland Bhd’s Casa Embun apartment development in its 417 acre Cybersouth township in Dengkil saw its first phase 70% taken up since the launch in January. Avaland was formerly known as MCT Bhd. With a gross development value of RM186 million, the 21-storey Casa Embun comprises 482 apartment units, with built-ups ranging from 550 sq. ft. to 1,541 sq. ft. and selling prices starting from RM250,000.
SIME DARBY PROPERTY’S HYPE RESIDENCES PHASE 1 IN SJ7 FULLY SOLD
The Edge, 06/11/2023
Sime Darby Property Bhd’s Hype Residences Phase 1 in its SJ7 mixed-use development in Subang Jaya was fully taken up within an hour of its official launch on 28 October. Hype Residences demonstrates the property developer’s commitment to building urban residences that satisfy the needs and demands of contemporary homeowners. Hype Residences is a high-rise residential development that is spread across a 4.32 acre land parcel. The entire development will consist of two phases, of which each phase will feature an apartment tower. The project has a gross development value (GDV) of RM597.2 million. Phase 1 will comprise Tower A, which is a 38 storey tower comprising 310 units, with built-ups ranging from 700 sq. ft. with two bedrooms and one car park bay, to 1,130 sq. ft. with three plus one bedrooms and two car park bays. The selling prices range from RM650,000 to RM1.2 million. Phase 2 of the development will feature Tower B comprising two wings — 28 and 38 storeys respectively. The development will be equipped with features such as keyless home entry, barrier gates, card access systems and perimeter fencing. Hype Residences is located within close proximity to the USJ7 LRT Station, and is accessible via major highways including the Shah Alam Expressway (Kesas), New Pantai Expressway (NPE), North-South Expressway Central Link (Elite), and Damansara-Puchong Expressway (LDP). The 34.6 acre SJ7 masterplan has an estimated GDV of RM4 billion, encompassing retail, office and residential components.
UEM SUNRISE TOPS OUT RESIDENSI AVA AT KIARA BAY
The Edge, 07/11/2023
UEM Sunrise Bhd has topped Residensi AVA, the first phase of its Kiara Bay township in Kepong. Currently, the construction progress stands at 75% and it is expected to be handed over by 3Q24. With a gross development value (GDV) of RM664 million, Residensi AVA occupies 4.41 acres of land and has a total of 870 units spread over two 41 storey towers. Its units have built-ups of 813 sq. ft. to 1,285 sq. ft. Selling prices start from RM567,800. Facilities include a 50 metre Olympic-length pool, a wading pool, badminton courts, a half basketball court, a yoga deck, and a sky deck, among others. Launched in 2019, Residensi AVA has achieved a 99% take-up rate. Kiara Bay township is a joint-venture partnership between UEM Sunrise and Melati Ehsan Group through Mega Legacy (M) Sdn Bhd (MLSB). The 72.74 acre Kiara Bay township consists of three districts. These districts are The Waters, which consists of a mix of residences and lakefront retail space; The Walk, which features a community-centric marketplace with residences; and The Village, which is an inclusive multi-generational wellness and living environment surrounded by green spaces.
PAHANG RECORDS HIGHEST AVERAGE HOTEL OCCUPANCY RATE IN 1H23
The Edge, 09/11/2023
Pahang recorded the highest average occupancy rates of hotels in Malaysia at 73% for the first six months (1H) of this year. This is attributed to the higher tourist arrivals to Pahang. As of September, Pahang has already hosted 9.04 million domestic and international visitors from the targeted 13 million visitors in 2023. Five districts in Pahang, namely Bentong, Kuantan, Cameron Highlands, Temerloh, and Rompin have witnessed remarkable tourist arrivals. The two highland tourism destinations in Pahang, namely Genting Highlands and Cameron Highlands as well as Pulau Tioman in Rompin and the city of Kuantan remain the focus with the number of recorded tourist arrivals constantly increasing from year to year. The reported average occupancy rates were calculated based on more than 36,000 registered accommodation rooms in Pahang, sourced from the Strategic Planning Division of Tourism Malaysia. The data also revealed that Kuala Lumpur secured the second position with an average rate of 57.3%, followed by Putrajaya (54%), Penang (49.2%), Johor (47.5%), and Selangor (47.1%).
MELAKA WAKAF PROPERTY DEVELOPMENT MASTER PLAN ENSURES EFFICIENT MANAGEMENT
NST, 06/11/2023
The Melaka state government, through the Melaka Islamic Religious Council (MAIM), has established an extensive Wakaf Property Development Master Plan aimed at enhancing the effective management of wakaf (endowment) assets and optimise their use in the future. There are currently about 822 wakaf land lots managed by MAIM, covering 319 hectares and, of which, 485 lots or 59 per cent are for general wakaf purposes. This includes residential and commercial properties, clinics, hotels, orphanages, halls, agricultural land, vacant land and so on. The remaining 41 per cent, which is 337 land lots, are special wakaf used for mosque, surau, cemetery, religious schools and educational purposes. A total of RM3.7 million in wakaf collections was recorded in 2022, while 1.05 million was collected from January to September this year in Melaka.
CRESCENDO SELLS SEVEN PARCELS OF ADJOINING LAND IN PULAI FOR RM117 MILLION CASH
The Edge & NST, 07/11/2023 & The Star, 08/11/2023
Crescendo Corp Bhd is divesting of seven parcels of adjoining land in Pulai, Johor to a data centre operator for RM117.02 million cash to boost its cash flow for other development projects. Crescendo’s wholly owned unit Panoramic Industrial Development Sdn Bhd entered into agreements for the disposals with STT GDC Malaysia 2 Sdn Bhd, a data centre operator wholly owned by Singapore-incorporated STT Malaysia DC Pte Ltd. Crescendo disclosed that the parcels of land were acquired in December 2009 for a total of RM15.93 million. The transactions are expected to be completed through 4Q24. Apart from the development of its balance land bank, the disposal proceeds will also be used for settlement of existing liabilities.
KARYON INDUSTRIES BUYS JOHOR INDUSTRIAL LAND FOR RM7.6 MILLION
The Edge, 09/11/2023
Karyon Industries Bhd (KIB) is proposing to acquire a piece of freehold industrial land measuring 0.95 acres in Johor Bahru from Premetal Stamping Ind Sdn Bhd for RM7.6 million. The proposed acquisition represents an opportunity to acquire further space within the vicinity of its existing factories, to increase its existing storage capacity as well as to set-up additional and/ or new manufacturing lines in the near future.
DIALOG-MORIMATSU JOINT VENTURE PLANS RM250 MILLION FABRICATION FACILITY EXPANSION, EYES RM300 MILLION ANNUAL REVENUE
The Edge & The Star, 07/11/2023
Dialog Group Bhd and its partner Hong Kong-listed Morimatsu International Holdings Co Ltd said they will spend RM250 million for the expansion of their joint venture (JV) company’s engineering and fabrication facilities in Pengerang, Johor. With the expansion estimated to be completed progressively by 1Q25 the 196,388 sq. ft. facility will mainly consist of module production workshops equipped with modern workplace amenities and infrastructure. Morimatsu International owns a 51% stake in the JV, Morimatsu Dialog (M) Sdn Bhd, while the remaining 49% is held by Dialog. The JV will focus on manufacturing equipment and modules used to produce raw materials for electric vehicle batteries, semiconductors and green energy.
KERJAYA PROSPEK BAGS RM104.73 MILLION HOUSING CONTRACT IN PENANG
The Edge, 06/11/2023 & The Star, 07/11/2023
Kerjaya Prospek Group Bhd has received a letter of award (LoA) worth RM104.73 million from Persada Mentari Sdn Bhd for the construction of a residential development in Penang. Kerjaya Prospek said the LoA was accepted by its wholly-owned subsidiary, Kerjaya Prospek (M) Sdn Bhd, and would entail the completion of 69 units of three-storey semi-detached and three-storey terraced houses at Seksyen 2, Pulau Andaman. The contract will commence on 1 December 2023 and be completed within 26 months from the commencement date.