Week 48 - 2023
RENT-TO-OWN SCHEME FOR POOR
The Edge, 25/11/2023
Selangor Housing and Property Board (LPHS) is finalising a new rent-to-own scheme (SeMiSel) by offering contra units obtained free from developers. Under the incentive, the developer needs to hand over free units to the state government in return for an exemption on the number of Rumah Selangorku Type A units that should be built. A total of 1,576 units are available under the SeMiSel scheme.
SCIENTEX EYES SUSTAINABLE GROWTH
The Star, 25/11/2023
Scientex has surpassed the RM4 billion mark in its financial year ended 31 July 2023 (FY23). In its property segment, Scientex aims to construct 50,000 affordable homes by 2028. Presently, the group has successfully delivered 32,000 units, with 70% of these affordable homes priced at RM30,000 or less. For FY23, the group launched properties worth RM2.1 billion in gross development value (GDV), comprising 6,608 units across 26 launches in Kedah, Penang, Perak, Selangor, Melaka, Negeri Sembilan and Johor. In the last five years, their landbank increased from 3,300 acres to 8,216 acres, from 16 townships to 32 townships. Recently, Scientex expanded its presence into the property markets of Bangkok, Thailand and Jakarta, Indonesia. In March, the group inked a joint-venture agreement with Mustika Land and Creed Group to build affordable homes in Jakarta.
SUNWAY PROPERTY INKS PUTRAJAYA DEAL
The Star, 25/11/2023
Sunway Bhd’s unit, Sunway Property has signed a memorandum of understanding (MoU) with Putrajaya Holdings Sdn Bhd to collaborate on developing prime commercial strategic parcels of land in Precinct 7 and 8 in Putrajaya. The MoU would set up the groundwork for cooperation in various sectors such as medical, education and property development including the possibility of the development of a medical centre in one of the parcels. Sunway Healthcare Group is expected to be one of the largest healthcare groups in the region, with a combined capacity of over 3,000 beds throughout SHG’s network of hospitals.
IOI PROPERTIES POSTS LOWER 1Q PROFIT ON ABSENCE OF FAIR VALUE GAIN, WEAKER PROPERTY DEVELOPMENT EARNINGS
The Edge, 25/11/2023
IOI Properties Group Bhd’s net profit dropped 72.8 per cent year-on-year (YoY) to RM174.45 million in its first quarter ended 30 September 2023 (Q1FY24) from RM640.29 million a year earlier. This was due to weaker contribution from the property development segment in Malaysia and China recording lower sales. The weaker performance of the segment was partially offset by the significant improvement in the property investment segment. Revenue for the quarter was down by 6.3 per cent to RM648.05 million versus RM691.52 million in the corresponding quarter in 2022 due to the decline in property development’s revenue by 15 per cent. Despite closure of Palm Garden Hotel, A Tribute Portfolio Hotel and Putrajaya Marriott Hotel, the revenue from the hospitality and leisure segment was maintained and supported by higher contributions from other hotels. In Malaysia, the sales secured were largely from the Johor region at RM400.5 million, led by the sales of agriculture land at Kulai while established townships at Bandar Putra Kulai and Taman Kempas Utama continued to outperform. Over in Klang Valley region, the ongoing projects registered sales of RM163.1 million led by the established township at Bandar Puteri Puchong in Selangor and its integrated development at IOI Resort City in Putrajaya. A total of RM1.13 billion worth of properties were launched during the period.
IOI Palm City and IOI Palm International Parkhouse in Xiamen are completed projects providing greater confidence to the Chinese purchasers, who are buying for immediate use. In addition, IOI Business Park Xiamen with net lettable area of 371,000 sq ft and committed tenancies at 70% will bring higher footfalls and provide more business activities to complement IOI Mall Xiamen.
MRCB EYES GROWTH WITH RM5.5 BILLION PROPERTY LAUNCHES
The Edge, 27/11/2023
Malaysian Resources Corp Bhd’s (MRCB) future growth will be driven by the launching of RM1.5 billion in properties in Australia and Malaysia in 2023, followed by RM4.0 billion in New Zealand and Malaysia in 2024. Additionally, a RM30 billion construction tender book and potential redevelopments of Stadium Shah Alam and KL Sentral Station contribute to future prospects. Its revenue fell 41.4% to RM503.7mil against RM860mil posted last year. The decline in revenue was due to lower contributions from both the property development and investment division and the engineering, construction and environment division, after the completion of three major infrastructure construction projects in 2022, and the completion of two major property development projects in 1Q23. The property development and investment division recorded a revenue of RM459.5 million and an operating profit of RM35.7 million in the nine months ended 30 September, a decline of 30% and 71% respectively. MRCB said this was due to the 100% completion of the Sentral Suites project in KL Sentral in March 2023 and the TRIA 9 Seputeh mixed residential project in Jalan Klang Lama in May 2023.
SIAB UNIT ACCEPTS LOA TO DEVELOP RESIDENTIAL PROJECT WORTH RM106.8 MILLION
The Star & The Edge, 27/11/2023
Siab Holdings Bhd’s wholly-owned subsidiary, Siab (M) Sdn Bhd (Siab M), has accepted a letter of award (LoA) recently from Murni Lapisan Sdn Bhd (MLSB) for the proposed residential development project in Pantai Sentral, for RM106.80 million. The project entails one block of 32-storey building with 336 apartment units with six levels of podium car park, one floor of resident facility, and two units of electrical substation. The duration of the project is 34 months with the date of mobilisation on 27 November and date of commencement on 12 December 2023.
MST GOLF AIMS FOR A HOLE-IN-ONE
The Star, 25/11/2023
The expansion plan for MST Golf is progressing on schedule. While concentrating on its current market in Singapore and Malaysia, the group is also on track to open its inaugural store in Indonesia, thus broadening its regional presence. The group has opened six new retail outlets locally this year, bringing the total number of stores in Malaysia to 40. The group recently opened a retail store, which comes with an indoor golf facility in Toppen Shopping Centre, Johor spanning about 17,000 sq. ft. In Singapore, the group operates eight stores, and in 2024, it has plans to open more stores. On the first store in Indonesia, the group plans to open one store before Christmas, with four more lined up for the following year, all within Jakarta.
EXCO: JOHOR TO PRESENT WORKING PAPER ON PROPOSED LRT PROJECT AFTER 30 NOVEMBER
The Edge, 26/11/2023
The Johor government is expected to present the working paper on the proposal to implement a light rail transit (LRT) system in the state to the federal government after 30 November. The proposed LRT project, spanning nearly 30km and involving three lines, namely Tebrau, Skudai and Iskandar Puteri, is estimated to cost RM20 billion.
SP SETIA LAUNCHES NEW COMMERCIAL LOTS IN SETIA BAYUEMAS
Star Property, 29/11/2023
SP Setia has announced the launch of Bayu Avenue, the third phase of commercial development in its Setia Bayuemas township. The new units comprise 16 freehold double-storey shop offices, with a gross development value (GDV) of RM21.86 million. Priced from RM1.15 million onwards, the shop offices have a lot size of 22’ x 70’ each, with built-up areas ranging from 4,873 sq. ft. to 4,986 sq. ft. for corner units, 2,986 sq. ft. for intermediate units, and 6,026 sq. ft. for end lots. Located in Klang, Setia Bayuemas is a township featuring a range of affordable housing options, including apartments, landed terraces, cluster homes, semi-detached, and bungalows, along with a diverse mix of commercial and retail spaces. It also houses the Setia Bayuemas Lake Park, which is solar-powered and home to 19 native bird species. It is connected through the North-South Expressway (ELITE) and the Shah Alam Expressway (KESAS). Bayu Avenue is slated for completion in November 2026.
IJM RIMBAYU TO SEE NEW LOTUS’S HYPERMARKET IN 4Q NEXT YEAR
The Edge, 29/11/2023
IJM Land Bhd announced the groundbreaking of Lotus’s hypermarket at its IJM Rimbayu township development in Selangor. The hypermarket has a 30-year lease term and is set to be completed in 4Q24. The hypermarket has a development cost of RM42 million and will have a built-up area of 64,066 sq. ft. and 185 surface parking on a 4.48-acre land parcel and set to become the largest hypermarket within a 10km radius. The new hypermarket will serve an immediate resident population catchment in IJM Rimbayu of 15,930 residents, as well as an additional 30,000 residents residing in the surrounding neighbourhoods within a 5km radius. To date, IJM land has launched 5,472 homes at IJM Rimbayu, with 3,980 units sold, completed and handed over. The developer is set to complete Uptown @ Rimbayu in 1Q24 and Uptown Square @ Rimbayu in 2025. J&T Express Malaysia, a leading courier company in Malayisa is also set to unveil its new warehouse and headquarters in 2026 in IJM Rimbayu.
THE EXCHANGE TRX OPENS TO THE PUBLIC
The Edge, 29/11/2023
The Exchange TRX — the retail component of Tun Razak Exchange development in Kuala Lumpur — has opened its doors to the public. The retail and entertainment hub with over 400 stores across a net lettable area of 1.3 million sq. ft. targets to become a landmark that represents the heart of Kuala Lumpur. The Exchange TRX is a joint-venture development between Australian-based developer Lendlease and TRX City Sdn Bhd. Notable brands at The Exchange TRX debuting in Malaysia include Gentle Monster, Alo Yoga, and Molton Brown. Other well-known retailers include Louis Vuitton, Chanel, Gucci, Penhaligon’s, Santa Maria Novella, Matiere Premiere, and Acqua di Parma; as well as the largest HOKA store in Kuala Lumpur. The Exchange TRX also features five dining precincts. They are Food Exchange, which features hawker-style stalls, concourse dining for international cuisine, garden-inspired park dining, premium dining, and the alfresco-style dining terrace. Fast-food operator Shake Shack will also be debuting their first outlet in Malaysia there. Other food and beverage operators include Bacha Coffee, Italian confectioner and gelateria Venchi, Kanbe Ramen, and Paolo Paolo Gelato.
GAMUDA LAND TO INVEST RM150 MILLION IN FIRST HOTEL PROJECT IN SELANGOR
The Edge, 30/11/2023 & The Star, 01/12/2023
Gamuda Bhd’s property division, Gamuda Land, will invest RM150 million to develop its first hotel project in collaboration with Dusit International in Gamuda Cove, Selangor. The mid-scale lifestyle hotel is set to open in 1Q26 and will be managed by Dusit Hotels and Resorts, the hotel arm of Dusit International, one of Thailand’s leading hotel and property development companies. The 280-room ASAI Gamuda Cove hotel will operate under Dusit’s distinctive locally focused lifestyle brand, ASAI Hotels. This hotel holds the distinction of being the first to be signed under Dusit’s expanded ‘ASAI Tropical’ model, specifically tailored for properties located in areas of outstanding natural beauty. Gamuda Cove, spanning 619.17 hectares, is a meticulously planned township development offering exciting eco-friendly tourism activities, including adventure and water parks. The masterplan includes residential and commercial elements such as schools, universities, medical centers, vibrant retail spaces, and offices, with convenient access to Putrajaya, Cyberjaya, and Kuala Lumpur. ASAI Gamuda Cove aims to cater to both domestic and international tourists, allowing them to enjoy the township’s eco-tourism activities like SplashMania Waterpark, Discovery Park, and Paya Indah Discovery Wetlands, targeting one million visitors annually.
WYNDHAM TO MANAGE OVER 3,000 NEW HOTEL ROOMS IN MALAYSIA
NST, 29/11/2023
Wyndham Hotels & Resorts has over 10 upcoming hotels with more than 3,000 rooms set to open in the coming years. The upcoming hotels are related to Wyndham’s strategic partnership with Hospitality 360 (H36) Sdn Bhd, inked last December to expand their portfolio of hotels, resorts, and serviced apartments nationwide. H360 will deliver at least 15 hotels signed as franchises under various Wyndham-owned brands over the next six years. Memoranda of Understandings (MoUs) have been signed between Wyndham and the developers of the hotel properties, namely, Jesselton Newcity Development Sdn Bhd and Sumbangan Aru KK Sdn Bhd. It was reported that the construction of these hotels, which will have over 2,000 rooms, will begin this year in phases and will be completed by 2027. The hotels will be managed under the Wyndham Grand, Dolce by Wyndham, and Ramada by Wyndham brand names. Meanwhile, the recent opening of Wyndham Grand Bangsar Kuala Lumpur marks the prestigious Wyndham Grand brand’s exciting entry into the Malaysian market. Wyndham Grand Bangsar Kuala Lumpur, formerly known as the Pullman Kuala Lumpur Bangsar, is set to revolutionise the hospitality industry. The hotel has 513 rooms as well as a grand ballroom that can hold up to 2,000 people. The hotel’s transformation marks the arrival of Wyndham’s first Wyndham Grand brand in Malaysia. Wyndham is the world’s largest hotel franchising company, with about 9,100 hotels in over 95 countries.
ACACIA, A NEW SENIOR LIVING CONCEPT OPENS IN KLANG AT THE SITE OF THE FORMER MERRIDA HOTEL
The Edge & NST, 29/11/2023
Pacific Senior Living (PSL) Sdn Bhd, which provides seniors with holistic well-being and rejuvenation, has opened Acacia, a new concept in senior living within a building previously known as the Merrida Hotel in Klang, Selangor. Due to the pandemic, the once-four-star hotel had to close during the Movement Control Order. PSL took over the building and transformed it into 136 rooms with modern medical facilities and sizes ranging from 312 to 592 sq. ft., all in a resort-like setting. It offers specialised facilities, such as in-house physiotherapy services and hobby workshops, catering to diverse resident interests and needs. PSL is a part of the Columbia Pacific Management Group (CPMG), a multinational organisation that invests in, develops, and runs senior living and healthcare facilities. By 2056, more than 20 per cent of Malaysians will be 65 years of age or older, making the country a “super-aged nation,” according to World Bank projections. PSL was lured to Malaysia by the country’s favorable investment climate and the chance to address the rising demand for high-quality, reasonably priced healthcare services.
JOHOR SECURED RM14.23 BILLION IN COMMITTED INVESTMENTS IN 1H23
The Edge, 30/11/2023
Johor clinched committed investments totalling RM14.23 billion in the first six months of this year (1H2023). RM10.88 billion, or 76.5% of the total, came from the services sector, while RM3.35 billion, or 23.5%, was from the manufacturing sector. The 422 approved projects are expected to create 6,898 job opportunities. The state government, through Invest Johor, announced several focus sectors with the aim of gaining the awareness of and incentive support from the federal government. Among the sectors to be given focus are electrical and electronics, life sciences and medical technology, manufacturing and advanced engineering, the digital economy, green economy, halal, electric vehicles, aerospace, chemicals and petrochemicals, and ports and logistics. The global initiative on sustainability and net zero carbon emissions by 2050 had become a mainstream trend, presenting the state government with various solutions that can be implemented, including in the development of a low-carbon economy. Meanwhile, to ensure that the development of the Pengerang Integrated Petroleum Complex (PIPC) remains relevant, Johor Petroleum Development Corporation Bhd will conduct a review of the PIPC’s master plan. The review will highlight new components in the energy transition field, and focus on the chemical and petrochemical industry. PIPC development, which is currently at the midpoint of the second phase (2020-2025), had attracted committed investments of nearly RM140 billion, representing 90% of the target set in the master plan.
JOHOR-SINGAPORE SPECIAL ECONOMIC ZONE WILL STRENGTHEN MEDINI AS INVESTMENT DESTINATION
The Edge, 30/11/2023
The Johor-Singapore Special Economic Zone (SEZ), located 45 kilometres apart between Iskandar Puteri and Changi Airport, will strengthen Medini’s position as a major investment destination. The SEZ can draw value-added investments and further generate economic opportunities for Johor. The state government’s continuous efforts to strengthen investment initiatives and regional cooperation will also improve the people’s socio-economic standing via the Friendly Johor 3.0 and Johor Go Global 3.0 initiatives as highlighted in the state’s Budget 2024. Malaysia and Singapore are expected to sign a memorandum of understanding to establish the SEZ on Jan 11, 2024. Iskandar Investment Berhad (IIB) plans to build more affordable housing in Iskandar Puteri under the Wawari project, to enable all levels of society to own houses at reasonable prices. IIB has allocated RM2.5 million to support the electric vehicle (EV) pilot programme and three phases of green conservation, with an allocation of RM5.3 million.
INV INAUGURATES RM3.2 BILLION PHASE 1 LITHIUM BATTERY SEPARATOR PROJECT IN PENANG
The Edge, 01/12/2023
INV New Material Technology (M) Sdn Bhd, a subsidiary of China’s Shenzhen Senior Technology Material Co Ltd, has marked a significant milestone with the launch of its inaugural plant in Malaysia with an initial investment of RM3.2 billion for its first phase. Shenzhen Senior Technology is a prominent company in the global lithium battery separator industry. The Malaysian Investment Development Authority (MIDA) and INV said the first-of-its-kind facility in Southeast Asia, located in the Penang Technology Park, will have the annual capacity to produce 1.3 billion square metres of wet-process separators and coated separators. The success of INV in Penang is attributed to the collaborative synergy between the government and the private sector. INV’s new Penang plant contributes to the realisation of the strategic vision of the New Industrial Master Plan (NIMP) 2030 and the Chemical Industry Roadmap 2030. The entry of another major EV component producer is a big boost to Malaysia’s ambition to become a regional EV hub.
ALMOST 3,000 UNSOLD PROPERTY UNITS IN PENANG AS AT Q3
The Edge & NST, 29/11/2023
There are 2,947 property units categorised as “overhang” or unsold in Penang as at 3Q23. According to the National Property Information Centre, 503 of the unsold units are priced below RM300,000, or 17 per cent out of the 2,947 overhang units. Most of these unsold units are due to the applicant’s failure to obtain financing from financial institutions. The state government is always committed and serious about the housing agenda, as set out in the Penang Vision 2030 and the Penang Unity Government Manifesto 2023. The state government will continue to ensure housing development in Penang will be provided in a balanced manner and developed holistically taking into account the needs of the local community. The state’s Rumah Mampu Milik (RMM) initiative is a subsidised housing programme borne by the state government or private developers who want to develop housing in Penang. To enable a development to be implemented holistically, there are also costly housing components that need to be taken into account to provide cross-subsidies to RMM housing projects.
GOVERNMENT ACQUIRING LAND FOR UPGRADING OF KUCHING INTERNATIONAL AIRPORT
The Edge, 30/11/2023
The Ministry of Transport (MOT) and Malaysia Airports Holdings Bhd (MAHB) have plans to acquire land owned by the Sarawak Multimedia Authority (SMA) to enable the project to upgrade the Kuching International Airport (KIA) to be carried out. An application will be submitted by the ministry to request the funds to acquire the land, which is next to the KIA, under the Fifth Rolling Plan of the 12th Malaysia Plan (12MP) next year. The plan to upgrade the KIA can only be implemented after the land is acquired. This is because there are some existing facilities located in the area that need to be moved out first to the SMA land. The current capacity of the existing terminal at the KIA is five million passengers per year (mppa), with passenger movement recorded at 5.9 mppa, which is 19% above its design capacity in 2019. The KIA handled 4.3 million passengers in 2022. Regarding the proposed upgrading of the Miri Airport, the ministry had listed the project as a priority under the Fourth Rolling Plan of the 12MP.