Week 26 - 2024
TALKS WITH INVESTORS FOR DEALS WORTH RM60.4B ONGOING - MIDA
NST, 22/06/2024
Malaysia is poised to attract more approved investments from major economies in the upcoming quarters. The Malaysian Investment Development Authority (MIDA) is actively pursuing 1,775 proposed projects worth RM68 billion, with 1,709 in the services sector (RM44.7 billion) and 66 in manufacturing (RM23.3 billion), as of 31 May 2024. Negotiations are ongoing for high-potential leads totaling RM60.4 billion. Since early 2024, MIDA and the Ministry of Investment, Trade, and Industry (MITI) have conducted nine high-level overseas investment missions to countries including Germany, France, Australia, Italy, Singapore, and Japan. These efforts, along with official visits by Prime Minister Datuk Seri Anwar Ibrahim, have significantly contributed to Malaysia's investment success. In 1Q24, Malaysia registered approved investments totaling RM83.7 billion, a 13% increase over the same period last year. These investments span 1,257 projects and are expected to create 29,027 new job opportunities for Malaysians. Of these investments, RM47.5 billion (56.8%) falls under MIDA and MITI’s jurisdiction, covering 500 projects and generating 18,517 new jobs. The investments are divided among manufacturing (51.3% or RM43 billion), services (47% or RM39.3 billion), and primary sectors (1.7% or RM1.4 billion). Foreign investments contributed 56.2% (RM47 billion), with Austria leading with RM30.1 billion, followed by Singapore, the Netherlands, China, and the USA. Kedah recorded the highest value of approved investments, followed by Kuala Lumpur, Selangor, Sarawak, and Johor.
MALAYSIA'S FDI INFLOW AT RM40.4 BILLION, DIA OUTFLOW AT RM40.6 BILLION IN 2023 – DOSM
NST, 26/06/2024
Malaysia recorded foreign direct investment (FDI) net inflows of RM40.4 billion in 2023, a significant drop from RM75.4 billion the previous year, according to the Department of Statistics Malaysia (DoSM). The decrease was due to reduced equity and investment fund shares, reflecting a global economic slowdown. This aligns with the United Nations Trade and Development's (UNCTAD) 2024 Global Investment Trends Monitor report, which noted a 9% decline in FDI inflows to developing countries, with developing Asia seeing a 12% drop and ASEAN's FDI decreasing by about 16%. Despite the decline in FDI net inflows, the cumulative value of foreign investment, or FDI position, rose to RM926.0 billion at the end of 2023, accounting for 50.8% of GDP compared to 49.0% in 2022. This increase was mainly due to non-transaction categories. Regarding direct investment abroad (DIA), the net outflow narrowed to RM40.6 billion in 2023 from RM62.8 billion in 2022, largely driven by the services sector, which contributed RM34.5 billion, particularly in financial and insurance/takaful activities, as well as utilities. The services sector remained the primary contributor to DIA with an accumulated amount of RM461.1 billion in 2023, followed by mining and quarrying (RM80.5 billion) and manufacturing (RM60.0 billion). The services sector also generated the highest income at RM23.9 billion in 2023.
INFLATION RISES BY 2% IN MAY - DOSM
The Sun, 26/06/2024
In May, Malaysia's inflation rate rose to 2.0%, up from 1.8% in April. This increase was primarily driven by a 3.2% rise in prices for housing, water, electricity, gas, and other fuels, as well as restaurant and accommodation services. Additionally, increases were observed in several sectors: education (1.5%), transport (0.9%), personal care, social protection, and miscellaneous goods and services (3.0%), health (2.2%), recreation, sport, and culture (1.9%), and food and beverages (1.8%). However, prices for clothing and footwear declined by 0.2%, and insurance and financial services saw a slight decrease of 0.1%. The Statistics Department noted that the monthly headline inflation in May recorded a 0.3% increase from April's 0.2%, mainly driven by housing, water, electricity, gas, and other fuels, as well as information and communication, which rose by 0.6%. Other sectors like food and beverages, restaurant and accommodation services, recreation, sport and culture, and education also saw a 0.3% increase from the previous month. However, the prices of furnishings, household equipment and routine household maintenance, along with health, insurance, and financial services, did not increase, somewhat offsetting the inflation rise.
Core inflation, excluding fresh food and administered prices of government-controlled goods, remained steady at 1.9% in May, driven mainly by restaurant and accommodation services, as well as personal care, social protection, and miscellaneous goods and services. Inflation without fuel also rose to 1.9% in May. The department highlighted that Malaysia's inflation rate was lower than that of South Korea, Indonesia, and the Philippines. South Korea recorded a 2.7% increase in May, Indonesia's inflation rate rose by 2.8% from 3.0% in April, and the Philippines' inflation climbed to 3.9% from 3.8% the previous month. Thailand's inflation rate for May was 1.5%.
DOSM: MALAYSIA'S PRODUCER PRICE INDEX UP 1.4% IN MAY 2024
The Edge, 27/06/2024
In May 2024, Malaysia’s producer price index (PPI) increased by 1.4% year-on-year (y-o-y), down from 1.9% in April 2024, according to the Department of Statistics Malaysia (DOSM). All sectors saw increases, similar to the previous month. The mining sector rose by 6.6%, driven by crude petroleum and natural gas extraction. The agriculture, forestry, and fishing sector increased by 1.3%, with notable rises in animal production and perennial crops. The manufacturing sector grew by 1%, led by computer, electronic, and optical products. Water supply and electricity and gas supply indices increased by 8.7% and 1.5%, respectively. On a monthly basis, the PPI declined by 0.9%, compared to a 0.5% rise in April 2024. The mining sector decreased by 5.5%, agriculture by 4.6%, and manufacturing by 0.1%. However, electricity and gas supply, and water supply indices remained positive.
AMANAHRAYA REIT TO SELL CYBERJAYA PROPERTY FOR RM42.5 MILLION
The Edge, 26/06/2024
ELMINA RIDGE 1 SEES 98% TAKE-UP AFTER WEEKEND LAUNCH
The Edge, 27/06/2024
Sime Darby Property achieved a 98% overall take-up rate for Elmina Ridge 1, City of Elmina, after the second stage release. Stage 2 includes 106 superlink and semi-detached homes, valued at RM 171.3 million, following the fully sold Stage 1 with 122 units. Elmina Ridge features modern biophilic homes with nature-integrated designs and sustainable features like solar panels and thermal roof insulation.
IJM UNIT CLINCHES TWO BUILDING PROJECTS WORTH RM962 MILLION
The Edge & The Sun, 24/06/2024
IJM Corp Bhd, through its wholly owned subsidiary IJM Construction Sdn Bhd, has secured two contracts totaling RM962.3 million. The first contract, valued at RM584.3 million, involves constructing Plot A of a logistics hub in Shah Alam and is expected to be completed within 28 months from 20 June. The second contract, worth RM378 million, is for Phase 1 of a semiconductor manufacturing facility for Siliconware Precision Malaysia Sdn Bhd at Bandar Cassia Technology Park in Penang. This facility, part of ASE Technology Holding Co Ltd, includes multiple four-storey buildings and is scheduled to start in May 2024 and finish by October 2025.
BERJAYA LAND LAUNCHES PANGSAPURI AZALEA AFFORDABLE HOUSING PROJECT IN SUBANG HEIGHTS
The Edge, 26/06/2024
Berjaya Tagar Sdn Bhd, a subsidiary of Berjaya Land Bhd, launched an affordable residential project called Pangsapuri Azalea in Subang Heights, Subang Jaya, Selangor. This freehold development consists of 402 apartment units, each with a built-up area of 900 sq. ft., five bedrooms, and four bathrooms, offered at RM250,000 per unit. The project, offers a dual-key concept, is expected to be completed by 2027.
IJM BAGS RM331.7 MILLION CONTRACT TO BUILD DATA CENTRE FOR TM TECHNOLOGY
NST & The Star, 26/06/2024
IJM Corp Bhd's subsidiary, IJM Construction Sdn Bhd, has secured a RM331.7 million contract to design and construct Block 2 of the Iskandar Puteri Data Centre for TM Technology Services Sdn Bhd in Johor. Construction is set to begin in July 2024 and be completed by 3Q25.
PENANG CM CONFIRMS MUTIARA LINE LRT ALIGNMENT, PROJECT AT TENDER STAGE
The Edge, 25/06/2024
The Penang government has approved the alignment for the Mutiara Line Light Rail Transit (LRT) project, as proposed by Mass Rapid Transit Corp Sdn Bhd (MRT Corp). The chosen alignment, which starts from Silicon Island and connects Penang Sentral to the Macallum area in George Town, is similar to the original with slight modifications for better future connectivity. The federal government, through MRT Corp, is now overseeing the project, which is divided into three main components: civil construction for the Silicon Island to Komtar alignment, civil construction for the Komtar to Penang Sentral alignment, and turnkey systems and rolling stock on a build-maintain-transfer basis. Additionally, the RM1.8 billion Juru-Sungai Dua Elevated Highway project is still under discussion to determine whether it will be managed by the state or federal government.
