Week 51 - 2023
MITI SECURES RM29.6 BILLION INVESTMENT, RM2.8 BILLION EXPORTS FROM TWO SUCCESSFUL MISSIONS TO JAPAN
The Star, 19/12/2023
The Ministry of Investment, Trade and Industry (MITI) has secured a total of RM29.6 billion in potential investment and RM2.8 billion in potential exports from two investment missions to Japan since June this year. Recently, MITI achieved RM6.6 billion of potential foreign direct investment (FDI) and RM700 million of potential exports. MITI is also determined to ensure these investments are realised quickly to bring about more opportunities for the country’s small and medium enterprises and better-paying jobs for Malaysians.
BUMIPUTERA POPULATION ESTIMATED AT 21.3 MILLION THIS YEAR – DOSM
The Edge, 19/12/2023
The Bumiputera population is estimated at 21.3 million or 63.9% of the 33.4 million population in Malaysia this year, according to the Bumiputera Statistics 2023 released by the Department of Statistics Malaysia (DOSM). The male Bumiputera population was estimated at 10.8 million persons and females numbered 10.5 million, while the gender ratio for the overall Bumiputera population was 102 males for every 100 females. Meanwhile, findings related to the labour force in 2022 showed that a total of 9.6 million labour force were Bumiputera, namely 5.8 million males and 3.9 million females. The labour force participation rate (LFPR) for Bumiputera increased to 67.1% compared with 2021 (65.8%) while in terms of gender, the LFPR for Bumiputera male and female were 80% and 54.1%, respectively. Based on educational attainment, the share of the Bumiputera labour force having educational attainment at secondary and below was 62.3% and 37.7% of Bumiputera labour force attained tertiary education. The unemployment rate among Bumiputera was 4% compared with 5% in 2021. In terms of graduate statistics, the number of Bumiputera graduates registered in 2022 was 3.8 million persons, namely 1.7 million males and 2.2 million females. For property transactions in 2022, Bumiputera recorded 121,997 residential property transactions with a contribution of 36.8% (RM34.7 billion) to the total transfer value of residential property (RM94.3 billion). Bumiputera made 3,774 transactions of commercial property with a transfer value of RM2.1 billion compared with RM1.5 billion in 2021. The Bumiputera Statistics display selected Bumiputera statistics in the social and economic area at the national and state level for reference years from 2015 to 2023. It covers Bumiputera social and economic fields including population, employment, household income and expenditure, health, tourism, registered professions, and real estate.
MALAYSIAN HOUSEHOLD DISPOSABLE INCOME REBOUNDS
The Sun, 20/12/2023
Malaysia’s gross disposable income posted RM1,497.1 billion in 2021 with household sector comprising RM903.1 billion. Household disposable income grew by 2.8% compared with a drop of 4.1% in the previous year. The growth was attributed to the higher receivables of social benefits and the improvement in the labour force participation rate. Gross national disposable income measures the income available to the total economy for final consumption and gross saving. Therefore, gross national saving (GNS) recorded RM402.6 billion (2020: RM337.9 billion) in 2021, an increase of 19.1% from the previous year. In terms of institutional, the non-financial corporations sector recorded the highest gross saving with RM283.3 billion (share: 70.4%). This was followed by households with RM80.8 billion (share: 20.1%) and general government sectors with RM21.8 billion (share: 5.4%). The remaining gross saving was from the financial corporations sector which amounted to RM16.7 billion or 4.1% of GNS. Malaysia’s economy was a net lender to the external sector with RM59.7 billion or 3.9% of gross domestic product in 2021.
A 60-MINUTE FLIGHT IS THE WORLD’S BUSIEST ROUTE OF 2023
The Edge, 22/12/2023
The one-hour flight between Singapore and Kuala Lumpur in Malaysia was the world’s busiest international route this year, underscoring the scale of Asia’s travel rebound in the wake of Covid-19. The number of seats on the leg jumped 50% from last year to 4.9 million. The same route was third in 2022 and second before the pandemic. Countries in Asia dominated the list as the region trailed Europe and the US in opening up. There were huge increases in flights connecting South Korea with Japan and Thailand. Among the top 10 routes, the smallest seat additions were between Cairo and Jeddah and New York and London. Flights linking Seoul with Osaka and Tokyo ranked fourth and fifth after capacity more than doubled on those routes. The flagship trans-Atlantic leg between Heathrow and JFK dropped to eighth from fourth. Atlanta remained the world’s busiest airport in 2023. It was followed by Dubai and Haneda in Tokyo. The only new entrant in this year’s top 10 airports list was 10th-placed Guangzhou, in China.
MRT3: LAND ACQUISITION PROCESS TO START IN STAGES NEXT YEAR
The Edge & The Star, 21/12/2023
MRT Corp will begin its land acquisition process in stages from 2024 for the Mass Rapid Transit Line 3 (MRT3) Circle Line project, which will take two years to be finalised. To minimise the cost of land acquisition for the government, MRT Corp will actively cooperate with property developers to integrate the MRT3 stations. The government has approved the allocation for the process of land acquisition for the MRT3 project. The acquisition process is expected to involve 1,012 lots of land of which 842 were private lots of land, 133 were government and 37 are unknown land.
BASKIN-ROBBINS FRANCHISEE SCOOP CAPITAL BUYS 51.31 PERCENT IN APOLLO FOOD FOR RM238.8 MILLION
NST & The Star, 19/12/2023
Scoop Capital Sdn Bhd, the franchisee of Baskin-Robbins has acquired 51.31% stake or 41.05 million shares in Apollo Food Holdings Bhd for RM238.08 million. Scoop Capital entered into a share sale agreement (SSA) with Keynote Capital Sdn Bhd for the acquisition.
LKL INTERNATIONAL TO SELL FREEHOLD LAND IN SERI KEMBANGAN FOR RM7 MILLION
The Edge, 20/12/2023
LKL International Bhd through its wholly-owned subsidiary LKL Advance Metaltech Sdn Bhd (LKLAM), is selling a piece of freehold land in Seri Kembangan, Selangor, to 8 Food Avenue Sdn Bhd (Avenue) for RM6.9 million. The medical and healthcare bed manufacturer announced that LKLAM entered into a sale and purchase agreement (SPA) with Avenue for the proposed disposal. The net proceeds after deducting all fees and expenses related to the proposed disposal will be used for financing working capital and/or investments, and utilised within 12 months from the completion of the transaction. By reallocating these funds towards working capital and potential investments, LKL aims to strengthen its liquidity position and support its core business activities, ensuring a more efficient allocation of resources and fostering the growth and development of its operations.
ORIENTAL INTEREST INKS DEAL WITH TTDI LAND TO DEVELOP RESIDENTIAL UNITS IN KLANG
The Edge, 21/12/2023
Oriental Interest Bhd has entered into a deal with TTDI Land Sdn Bhd to jointly develop 54.55 acres of land in Klang into commercial and residential units. Under the deal, Oriental Interest Bhd’s 52.5%-owned subsidiary, Total Majority Sdn Bhd, has secured the rights to develop the project on the land and to sell the units to end-purchasers. TTDI Land as the land owner will be entitled to a payment of RM150 million. The development is in line with the group’s strategic planning to leverage on the group’s strengths in property development and construction to team up with its joint venture partners and land owner for successful execution of project contemplated. The project is expected to be completed by 2034.
PREMIUM SUPERMARKET VILLAGE GROCER OPENS 29TH OUTLET AT THE BEAT IN KIARA BAY
NST, 18/12/2023
Premium supermarket Village Grocer has opened its twenty-ninth outlet at The Beat in Kiara Bay. The new Village Grocer covers 44,053 sq. ft., with the supermarket build-up of 23,885 sq. ft. and 20,168 sq. ft. of concessionaires’ mix, adding convenience to the community of Kiara Bay. Renowned home brand from Australia, Woolworths, has partnered with Village Grocer to provide quality and affordable own-brand products to add variety to their premium range.
DOMESTIC TOURISM SAW A 24% JUMP IN VISITORS IN 3Q23
NST, 19/12/2023
Domestic tourism saw a 24.3% jump in visitors to 53.4 million in 3Q23, compared with the same quarter of the previous year. Visitors also spent 33.8% more, or RM20.1 billion, in 3Q23 compared with a year ago. Quarter-on- quarter, both domestic visitors decreased marginally by 2.0% compared with 2Q23 while spending was 8.3 % lower. On overall, Malaysia’s domestic tourism performance until September 2023 recorded 156.6 million domestic visitors, an increase of 25.45% compared with a year ago. On domestic tourism expenditure, for the first nine months, it registered RM61.2 billion, an increase of 33.8 % compared to last year. The index of theme park revenue surged 64.1%, followed by domestic airport arrivals (18.2%) highway traffic (10.7%), retail sales of automotive fuel (6.6%), and zoo revenue (0.6%) YoY. Meanwhile, the index of accommodation revenue also increased by 20.3%. The occupancy rate for five-star hotels went up 6.9 %, followed by four-star hotels (5.4%), three-star hotels (32.9%), and two-star hotels/ chalets/ motels increased by 9.3%. Occupancy rate by location at beach and town rose 5.1% and 9.9%, respectively as compared to the same quarter of the previous year.
BINA DARULAMAN ROPES IN PARTNER TO BUILD 782 AFFORDABLE HOMES IN DARULAMAN SAUJANA TOWNSHIP
The Edge, 21/12/2023
The Kedah government’s investment holding company, Bina Darulaman Bhd (BDB), has entered into a joint venture agreement (JVA) with OIB Properties (KV) Sdn Bhd to develop 782 affordable single-storey terrace homes in Kubang Pasu, Kedah. BDB, as the land owner, will provide development rights to OIB to build the affordable housing scheme on a plot measuring 53.75 acres in the Darulaman Saujana township. In return, BDB will be entitled to a revenue share of 25% or RM46.92 million based on the residential project’s gross development value (GDV) of RM187.68 million. At the same time, BDB will receive an owner’s entitlement of up to RM28.22 million until the fifth year from the JVA’s effective date (21 December). The project is expected to be completed within 72 months.
EPICON PARTNERS PNSB’S UNIT TO DEVELOP AFFORDABLE HOUSING IN RAWANG
The Edge, 21/12/2023
Stage and express bus service operator Epicon Bhd (formerly known as Konsortium Transnasional Bhd) has partnered with PNSB Construction Sdn Bhd (PCSB), a subsidiary of Permodalan Negeri Selangor Bhd (PNSB), to develop an affordable housing project in Rawang, Selangor. Epison has inked a consortium agreement with PCSB to establish a consortium to develop the housing project, Rumah Idaman MBI, that will have 2,251 housing units, and to explore future collaborations of such nature.
RESURGENCE OF INTEREST IN THE PROPERTY MARKET IN JOHOR
NST, 19/12/2023
Stakeholders have praised the Johor Bahru-Singapore Rapid Transit System (RTS) Link and the construction of a brand-new urban oasis adjacent to the RTS Link station in Johor Bahru as game-changers. Using a “rail plus property” model, this urban oasis will provide premium educational facilities, healthcare and wellness services, and hospitality offerings. Industry observers predict that the RTS will bring about significant changes to the Johor Bahru (JB) property market, with benefits for homes, businesses, retail, leisure, and lodging. According to them, property values in some parts of JB are beginning to increase ahead of the RTS project’s completion by the end of 2026. The Johor real estate market is currently seeing a lot of buying interest. High-rise apartments in desirable areas, especially in the Johor Bahru city centre and Iskandar Malaysia region, are being bought by Singaporeans looking for vacation or investment properties as well as by Malaysians who work in Singapore. Purchasers of real estate near the Bukit Chagar station, which is being developed next to the existing immigration complex in JB, seem to be broadly in agreement with this optimism. With the overnight policy rate remaining at 3.0 per cent, now is a favourable time to purchase. Additionally, developers are offering greater incentives, and the gross domestic product of the country might grow the following year.
MEDINI SET TO BE CATALYST FOR JOHOR
NST, 18/12/2023
Medini, which is located closest to Singapore and situated on the southern side of Johor is expected to be the primary catalyst for change over the next 10 to 20 years. Johor is currently the state with the highest foreign investment in Malaysia in 2022. Medini’s status as a top investment destination for value-added investments is further enhanced by the timely creation of the Johor-Singapore Special Economic Zone (JS-SEZ), which is located 45 km from Singapore’s Changi Airport to Iskandar Puteri, thereby unlocking the much-needed economic opportunities in Johor. With the ongoing efforts of Friendly Johor 3.0 and Johor Go Global 3.0, IIB anticipates exponential growth in the coming years for GBS Medini, Tech Medini, and the M40 real estate market. Iskandar Investment Berhad (IIB) looks forward to collaborating with the recently launched Johor Sustainability Centre (JSC) at the recent Asia Pacific Climate Week. Apart from JSC, the Ibrahim International Business District (IIBD) further emphasises the need for more business hubs that serve to complement similar hubs in Johor, such as Net Zero Carbon CBD, that are intended to push growth through foreign investments. IIB aims to develop more reasonably priced housing in Iskandar Puteri as part of the Wawari Project, in line with the government’s goal of giving everyone in society the chance to own reasonably priced, high-quality homes. In keeping with ESG initiatives, IIB fully supports both the EV pilot program, which has a budget of RM2.5 million, and the Green Environmental Preservation Initiative, which has three stages and a total budget of RM5.3 million.
SUNWAY REIT ACQUIRES INDUSTRIAL PROPERTY IN PENANG FOR RM66.8 MILLION
The Edge & NST, 18/12/2023
Sunway Real Estate Investment Trust’s (Sunway REIT) trustee RHB Trustees Bhd has inked a conditional sale and purchase agreement with Best Corridor Venture Sdn Bhd to acquire an industrial property in Bukit Tengah Industrial Park in Prai, Penang, for RM66.8 million. The property is located on land spanning 10.4 acres with leasehold tenure expiring on 22 October 2052, and to be extended to 60 years after the completion of the proposed acquisition. The property has a gross floor area of 307,487 sq. ft., which is fully (100%) tenanted by three reputable multinational corporations, namely the anchor tenant, Premium Sound Solutions, a Belgian sound products manufacturer, together with a Japanese logistics company and an American information management services company. The acquisition is projected to generate an initial net property income yield of approximately 7.6% based on the purchase consideration. This marks Sunway REIT’s second proposed acquisition in 2023 and the third industrial property in Sunway REIT’s asset portfolio.
FOUNDPAC BUYS INDUSTRIAL LAND IN PENANG FOR RM42 MILLION
The Edge, 21/12/2023
Foundpac Group Bhd has proposed to acquire a leasehold industrial land in Bayan Lepas, Penang, for RM41.88 million. The precision engineering parts maker, which is currently operating in six factories across Penang and Kedah, is buying the land to consolidate its production operations in Penang into a single premise for enhanced efficiency and potential cost savings. The acquisition of the land from Bluemetal Sdn Bhd will be paid for, using bank borrowings and internally generated funds. The group anticipates the relocation and consolidation of production operations in Penang to occur after 2Q26.
MORE FOREIGNERS EYEING PROPERTIES
The Star, 22/12/2023
There is a surge in demand for residential properties priced above RM1 million from foreign nationals this year compared to a year ago due to a weaker ringgit. The enquiries are mainly from Taiwan, Singapore and Hong Kong. Chinese nationals who can buy property in Penang are those who have investments here. Foreigners have been buying the completed Queens Waterfront 1 & 2 in Bayan Lepas priced above RM1.8 million to RM2.3 million. The recently revised Malaysia My Second Home (MM2H) programme guidelines to allow foreigners to buy properties priced from RM500,000 would help stimulate the local property market. There were also more foreigners buying industrial properties. Most of the enquiries were from Hong Kong, Singapore and Taiwan. The interest is in properties below RM3 million. The increase in enquiries has translated into more robust sales in 2023. Locals still form the bulk of customers, but there has been an increase in foreign purchases.
HIGHER OCCUPANCY CAP TO BENEFIT LANDLORDS, TENANTS
The Star, 22/12/2023
Landlords of larger Housing and Development Board (HDB) flats and private residential properties will soon be able to grow their tenant base and rental income after a policy change takes effect in January to relax the rental occupancy cap for such properties for about three years. From 22 January 2024 to 31 December 2026, owners of four-room or larger flats and private homes of at least 996 sq. ft. will be allowed to house up to eight unrelated people who are not from the same family unit, up from the current cap of six, according to Housing and Development Board (HDB) and the Urban Redevelopment Authority (URA).