Week 50 - 2023
WHOLESALE, RETAIL SALES VALUE IN OCTOBER 2023 RISES 6.5% ON-YEAR
The Sun, 12/12/2023
Malaysia’s wholesale & retail trade recorded a sales value of RM142.3 billion, increased by 6.5% year-on-year in October 2023. However, sales value fell marginally by 0.3% as compared to September 2023. This was disclosed by the Department of Statistics Malaysia (DoSM) when releasing the performance of wholesale & retail trade for October 2023. The increase of 6.5% year-on-year for wholesale & retail trade in October 2023 was driven by wholesale trade sub-sector, which rose by 5.7% or RM3.4 billion to register RM63.3 billion. Retail trade also expanded by registering 3.9% or RM2.3 billion to RM60.6 billion, followed by motor vehicles with a double-digit growth of 19.1% or RM3 billion to settle at RM18.4 billion. Meanwhile, the marginal decrease of 0.3% from the previous month was attributed to wholesale trade which contracted by 1.4%, followed by retail trade with -0.8%. On the other hand, motor vehicles rebounded by 5.2%.
PROGRESS OF ECRL PROJECT STANDS AT OVER 56%
The Edge, The Star, The Sun & NST, 12/12/2023
The overall rate of progress of the East Coast Rail Link (ECRL) project has reached over 56% as of November 2023. The progress of the mega project is in line with the project’s completion schedule from Kota Bharu, Kelantan to the Gombak Integrated Terminal in December 2026. The ECRL is scheduled to be operational in January 2027. The Yang di-Pertuan Agong, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah officiated the ceremony to install the first ECRL track on 11th December 2023. Once the project is completed, East Coast folks will enjoy a new chapter in the country’s transportation system which, among others, will enable residents of Kuantan to arrive in Kuala Lumpur in just one and a half hours compared to three hours by road. The ECRL track from Kota Bharu, Kelantan to Port Klang, Selangor involves the construction of 20 stations, covering 10 passenger and 10 combined passenger and cargo stations; with 7 stations in Pahang, 6 in Terengganu, 2 in Kelantan and 5 in Selangor.
CABINET HAS APPROVED THE CONSTRUCTION OF WEST IPOH SPAN EXPRESSWAY
The Edge & The Star, 15/12/2023
The Perak government confirmed that the Cabinet had approved the construction of the 60km West Ipoh Span Expressway (WISE) linking Gopeng with Kuala Kangsar. The cost of implementing the project will be fully borne under the Private Financing Initiative. WISE is an approach to resolving the traffic congestions on the North-South Expressway (PLUS), which also serves as an alternative route other than the federal route in Sungai Siput. The opening of WISE will bring a positive impact to the road users, apart from complementing the West Coast Expressway (WCE).
S P SETIA LAUNCHES LAELIA III IN RESPONSE TO HIGH DEMAND
The Edge, 09/12/2023
S P Setia launched Laelia III over the weekend, the third phase of affordable landed residential units in Setia Bayuemas. This comes after the successful sales rate of non-bumi units in Laelia and Laelia II in the February and September 2023 launches. Sprawling 10.13 acres, the freehold double-storey terrace home collection comprises 83 exclusive units for sale and is slated for completion in December 2025. With an estimated gross development value of RM73.4 million, Laelia III offers “a brand-new” definition of contemporary living with a touch of nature. Laelia III terrace house stands out with a more spacious built-up area ranging from 1,850 to 1,953 sq. ft. and 1,888 to 2,060 sq. ft., with prices ranging from RM838,000 to RM1.15 million. Each unit is also equipped with a backyard and a concealed air conditioner ledge on the front facade for a clean and aesthetic appearance. Embracing sustainability in modern day living, Laelia III also features a special compartment for parcel and food delivery, rainwater harvesting system for non-potable activities and many more.
MAH SING ACQUIRES LAND FOR THIRD PROJECT IN SETAPAK WITH A GDV OF RM508 MILLION
The Star, The Sun & NST, 09/12/2023
Mah Sing Group Bhd will be developing M Azura, a new transit-oriented development in Setapak, Kuala Lumpur, with an estimated gross development value (GDV) of RM508 million. The company has acquired 4 acres of land for the project for RM74.3 million. Located near the proposed Mass Rapid Transport 3 (MRT3)’s Rejang Station, LRT Sri Rampai, and LRT Wangsa Maju, M Azura is also the third development in Setapak after M Astra and M Adora, both of which are fully sold out. Based on preliminary plans and subject to authorities’ approval, M Azura will be a residential development comprising two blocks of serviced apartments with two-bedroom, three-bedroom, and four-bedroom units with indicative built-up ranges from 700 sq. ft. to 1,000 sq. ft. and an indicative starting price of RM396,800. The target registration of interest for M Azura will be in 1Q24.
S P SETIA PARTNERS WITH MITSUI FUDOSAN TO DEVELOP TWO RESIDENTIAL TOWERS WITH TOTAL GDV OF RM1.4 BILLION IN SETIA FEDERAL HILL
The Edge, The Star & NST, 14/012/2023
S P Setia Bhd is partnering with Mitsui Fudosan (Asia) Malaysia Sdn Bhd, which operates the Mitsui Outlet Park KLIA, in a joint venture to develop two parcels of commercial land measuring 2.67 acres in Setia Federal Hill, Bangsar. The development, which has an estimated gross development value (GDV) of RM1.4 billion, will comprise two residential towers with approximately 1,300 units, with the first tower slated to be launched in 2024. Setia Federal Hill, spanning 51.66 acres, is situated opposite KL Sentral, Malaysia’s largest integrated transport hub with a direct link to Kuala Lumpur International Airport and connects Kuala Lumpur City Centre to the rest of the Klang Valley.
CREST BUILDER GETS RM314.5 MILLION SERVICED APARTMENT PROJECT FROM UEM SUNRISE
The Edge & The Star, 15/12/2023
Crest Builder Holdings Bhd has accepted a letter of award from UEM Sunrise Bhd worth RM314.5 million for the construction of 1,334 units of serviced apartments in two 53-storey blocks, in Cheras, Kuala Lumpur. The project will also consist of a level of sub-basement car park, elevated podium car parks, commercial retail and office spaces and a level of recreation facilities. The construction works will take approximately 39 months to complete from its scheduled site possession date of 1st June 2024.
AXIS-REIT TO ACQUIRE SHOPPING MALL IN TEMERLOH FOR RM25.75 MILLION
The Edge, 09/12/2023
Axis Real Estate Investment Trust (Axis-REIT) has proposed to acquire a two-storey shopping mall in Temerloh, Pahang, for RM25.75 million cash. The acquisition of Temerloh Mall in Taman Damai, from Amal Mewah Development Sdn Bhd, will be funded by its existing bank financing. The freehold property with a net lettable area of 93,854 sq. ft. will be leased to TF Value-Mart Sdn Bhd. The proposed acquisition of the property will be accretive to Axis-REIT’s distributable income and add to the portfolio of properties that will benefit the fund in the long term. The acquisition is expected to be completed by 1Q24.
CAREPLUS MALL OPENS IN SEREMBAN
NST, 15/12/2023
Careplus Group Bhd has opened Care-plus Mall in Seremban as a hub for green technology and Technical, Vocational Education and Training (TVET). It also offers charging stations for electric vehicles (EV), solar panel solutions for home and commercial use, and sports and entertainment facilities for families. Additionally, Careplus is also partnering GoAuto Group to explore areas related to the EV industry. Both parties will collaborate in the importation and distribution of NETA electric cars.
ADVANCECON GETS SECOND EARTHWORKS CONTRACT FROM SIME DARBY PROPERTY
The Sun, 14/12/2023
Advancecon Holdings Bhd’s wholly owned subsidiary Advancecon Infra Sdn Bhd, secured its second earthworks contract from Sime Darby Property. The group had been awarded a RM35.6 million contract from Sime Darby Property (Bukit Raja) Sdn Bhd for earthworks and auxiliary works at its township project in Bandar Bukit Raja Stage 3 in Klang, Selangor. Advancecon will undertake the construction and completion of earthworks and auxiliary works for Phase 4A (R14) for Stage 3 of the township’s development. The duration of the contract is slated for 18 months from site possession this month. Advancecon had in November 2023 secured a RM22.8 million earthworks contract from Sime Darby Property (Pagoh) Sdn Bhd for the latter’s industrial park project at Bandar Universiti Pagoh, Johor. In addition to the industrial park project in Pagoh and the Bandar Bukit Raja 2 development in Klang, Advancecon is also supporting Sime Darby’s Serenia City development project in Sepang, Selangor and SME Business Park development in Nilai, Negeri Sembilan.
GOAUTO-CAREPLUS JV FIRM TO SET UP EV PLANT IN NEGERI SEMBILAN
The Sun, 15/12/2023
GoAuto Group and Careplus Group Bhd’s joint-venture company, NexV Manufacturing Sdn Bhd, is set to develop a new energy vehicle manufacturing and assembly plant in the Chembong industrial area, Rembau, The project will start next year and to be completed in 2028. The plant, spanning 29.68ha, will be used for the assembly of the electric vehicle (EV) marque, NETA. The plant will also be available for other EV brands to assemble their own completely knocked-down (CKD) vehicles. The estimated overall gross development value of the manufacturing and assembly plant development project, including the vendors, amounted to approximately RM600 million.
The first phase of the development entails the construction of the assembly plant, to commence in 1Q24 while phases two and three will kick off in 2026 and 2028, respectively. The plant is expected to roll out its first product, the NETA V model in 1Q25.
IMPIANA HOTELS TO LEASE WOLO KL HOTEL FOR THREE-YEAR PERIOD
The Star, 13/12/2023
Impiana Hotels Bhd gave the greenlight to lease its major shareholder’s WOLO Kuala Lumpur Hotel for a three-year period (1st January 2024 to 31st December 2026). Datuk Seri Lee Hock Seng who is one of the largest shareholders of Impiana Hotels Bhd is also the chairman of HYM Group, which owns and operates WOLO and Gold3 Boutique Hotel. Established in 2019, WOLO is a lifestyle boutique hotel located in Bukit Bintang. With Impiana’s 30-year legacy in hospitality, the collaboration with WOLO, a lifestyle boutique hotel with a thematic local culture, promises a unique synergy. Currently, WOLO operates at an average occupancy rate of 75% to 80% and could reach 90% at peak seasons. Meanwhile, the Impiana Hotel in Kuala Lumpur has an average occupancy of 55%.
RM40 BILLION AUTOMOTIVE HI-TECH VALLEY PROJECT ON TRACK TO START IN 2024
The Edge, 14/012/2023
The Automotive Hi-Tech Valley (AHTV) project in Tanjung Malim, Perak, involving an investment of RM40 billion, is expected to start in 2024. The state government is waiting for the outline of the AHTV development master plan to be submitted by the parties involved, namely DRB-Hicom Bhd and Zhejiang Geely Holding Group Co Ltd (Geely). The state government will facilitate the implementation of the development as Geely would want to expedite the development of AHTV.
RM32 BILLION ‘SICK’ HOUSING PROJECTS COMPLETED
The Sun & The Edge, 11/12/2023
The Local Government Development Ministry completed 351 “sick” and abandoned housing projects, with a gross development value of RM32.87 billion, within a year under the Madani administration. According to the ministry report card, a task force restored 43,738 private housing units as of 31st October 2023, while RM1 billion was allocated under Budget 2024 to encourage reputable developers to restore such projects. Based on the report card, PR1MA Corporation Malaysia completed 35,454 residential units nationwide as of 3rd October 2023, while 261,901 affordable housing units were constructed under the 12th Malaysia Plan as of 30th June 2023.
SULTAN IBRAHIM WANTS HSR PROJECT REVIVED
The Star & NST, 11/12/2023
Sultan Ibrahim Almarhum Sultan Iskandar plans to revive the high-speed rail (HSR) link project with Singapore. The line could be funded through a private finance initiative where the government pays the contractor to operate the line on a 30-year lease so that it can recoup its costs, before taking ownership. This was in reference to the initial RM72 billion cost estimates when the rail link was first announced in 2013. Malaysia and Singapore inked bilateral agreements for the project on 13th December 2016. The 350km railway line, which was aimed to be completed in 2026, would reduce travel time between Kuala Lumpur-Singapore to 90 minutes. However, the project, estimated at RM110 billion, was put on the backburner in September 2018 with both sides agreeing to shelve it until 31st December 2020. On 1st January 2022, Malaysia and Singapore jointly announced the termination of the project as no agreement was reached on the changes proposed by Malaysia and the fact that the agreement had expired on 31st December 2020.
WORK ON JB-KUANTAN SHORTCUT STARTING IN 2024
The Star, 13/12/2023
A new road in the pipeline, which is a shortcut between the Air Merah and Siapu intersections in Mersing, is expected to reduce congestion and save time for those travelling from Johor Baru to the east coast. Construction of the road was expected to start in 2024. The development would start soon after the initial work such as land surveys and temporary bridge development.
SULTAN OF JOHOR OFFICIATES KLUANG INLAND REVENUE BOARD TOWER
The Sun & NST, 15/12/2023
The Sultan of Johor officiated the opening of the Kluang Inland Revenue Board tower along Jalan Batu Pahat today. The construction of the eight-storey building in Jalan Batu Pahat began in 2016 and was completed in 2019. It is also the first building in the Kluang district to receive the Green Building Index certification based on its concept of sustainability and efficient utilisation of resources. The IRB’s Kluang branch, which began operations on 1st January 1972, is the second IRB office in Johor, with its administrative area covering the Kluang and Batu Pahat districts.
SUNWAY, EQUALBASE LAUNCH RM8 BILLION CARBON-NEUTRAL FCZ IN JOHOR
The Star, 09/12/2023
Sunway and Singapore-based real estate group Equalbase jointly held a groundbreaking ceremony for 103°, a RM8 billion sustainable Free Commercial Zone (FCZ) development for the logistics industry in a free commercial zone of Sunway City Iskandar Puteri. Spanning 135 acres, 103° Equalbase Sunway (103°) will be the first fully carbon-neutral free commercial zone. The integrated warehouses will also be equipped with rooftop solar panels to generate sufficient electricity, fostering a greener future. As part of its sustainability commitment, 103°, will strive to attain prestigious certifications such as Malaysia’s Green Building Index Gold rating. 103° was named after Johor’s geographic coordinates at a longitude of 103° east of the prime meridian. The gross development value (GDV) of RM8 billion highlights the significant growth projected over a span of 10 years.
PENANG SAW RM34.6B MANUFACTURING-SECTOR INVESTMENT INFLOW IN 3Q23
The Edge, The Star & NST, 12/12/2023
Penang state has reportedly proven its allure to both new and existing investors, with an investment inflow of RM34.6 billion in the manufacturing sector in 3Q23, a 421% year-on-year (y-o-y) increase. The growth was primarily driven by foreign direct investment (FDI), which accounted for RM33.0 billion or 95% of Penang’s manufacturing investment inflow during the period. The substantial influx of FDI underscores the resolute confidence international investors place in Penang’s potential, and the lucrative opportunities it presents. Domestic direct investment (DDI) contributed RM1.6 billion, constituting the remaining 5% of the manufacturing investment inflow. Penang also recorded total approved investment of RM44.9 billion from January to September 2023 across various sectors, encompassing the manufacturing, services and primary sectors. Notably, the approved manufacturing FDI inflow stood at an astounding RM35.8 billion, signifying an impressive 634% y-o-y increase. Total approved manufacturing investment in the first three quarters of 2023 stood at an impressive RM38.9 billion, making Penang the highest contributor among all states, with 39% share of Malaysia’s approved manufacturing investment in the said period.
PENANG TO RECLAIM LAND FOR SILICON ISLAND IN STAGES
The Sun & The Edge, 11/12/2023
The Penang government targets to reclaim 161.87ha of land each year for the Silicon Island project and intends to start the construction of its first factory in 2026. A 2.02ha area has been reclaimed since work began in early October 2023 by using two boats, each with a 7,000cu m capacity, to transport sand. Next year, dredging works will be stepped up by adding two more boats with a capacity of 20,000cu m each, adding that the state expects the land component to be ready in eight to 10 years. Reclamation works are expected to be completed by 2032.
IVORY PROPERTIES TO SELL LAND IN GEORGETOWN, PENANG TO CHIN HIN GROUP FOR RM40 MILLION
NST & The Star, 09/12/2023
Ivory Properties Group’s unit Ivory Gleneary Sdn Bhd is divesting a piece of land in Georgetown, Penang to Chin Hin Group Property Bhd for RM40 million. The land is about 1.218 acres within an existing project known as Penang Times Square. Chin Hin Group plans to develop the land into a multi-storey serviced residence and has agreed that a company within the Ivory group of companies be appointed as the turnkey builder for the development.
SCIB ENTERS INTO MOU TO DEVELOP RESIDENTIAL PROJECT IN BINTULU
The Edge, 13/12/2023
Sarawak Consolidated Industries Bhd (SCIB) has entered into a memorandum of understanding (MOU) for a potential joint venture residential development project in Bintulu, Sarawak, with a projected gross development value of RM250 million. The project involves the development of 50 acres of land into around 600 residential units, signifying a major undertaking in Bintulu’s property development sector. The group’s wholly owned subsidiary SCIB Properties Sdn Bhd inked the MOU with Kemena City Development Sdn Bhd and Smart Borneo Properties Sdn Bhd.