5.8% GDP GROWTH IN 2Q24

NST, 20/7/2024

The economy may have expanded at its fastest pace in six quarters in the April-June (2Q24) period, recording an expected 5.8% gross domestic product (GDP) growth. This would be the highest growth rate since the 7.4% recorded in 4Q22. The improvement in external demand is a key growth driver. The 2Q24 growth estimate was in line with improvements seen in the Industrial Production Index, wholesale and retail sales. It was also supported by the increase in tourist arrivals, palm oil production and progress of mega infrastructure projects. 

Growth in the quarter was driven by a 5.6% expansion in the services sector, 4.7% in the manufacturing sector and 17.2% in the construction sector. The agriculture sector rose 7.1%, contributed by remarkable growth in the palm oil sub-sector. The mining and quarrying sector contracted 3.3% due to a moderation in the natural gas sub-sector. The Statistics Department will release the preliminary GDP report for 2Q24 on August 16, 2024.

MALAYSIA HAS MADE HUGE PROGRESS IN ATTRACTING TECH INVESTMENTS: 500 GLOBAL HEAD

The Sun, 25/7/2024

Malaysia recorded a total of 9.48 million visitors from January to May this year, an increase of two million visitors compared to the same period in 2023. Tourist arrivals to Malaysia are increasing, highlighting why major global corporations such as Microsoft, Cloud AI and Infineon choose to invest in the country. The nation has made significant progress by having the world’s largest production site of silicon carbides, with Infineon recording up to RM22.8 billion (US$5 billion).

MALAYSIA’S INFLATION REMAINS AT 2% IN JUNE: STATISTICS DEPT

The Sun, 25/7/2024

Malaysia’s inflation remained at 2% in June 2024. The Consumer Price Index (CPI) was at 133.0 points compared to 130.4 in June 2023. The increase in inflation was driven by the incline in the main group of restaurant and accommodation services of (3.3%), as well as housing, water, electricity, gas and other fuels (3.2%). Inflation for restaurant and accommodation services increased to 3.3%. This was due to the increase in the main subgroup of beverage preparation services to 4.2%. Meanwhile, the inflation for housing, water, electricity, gas and other fuels increased at the same rate as the previous month at 3.2%. Increases were also recorded in personal care, social protection and miscellaneous goods and services (2.8%), as well as food and beverages (2.0%). However, clothing and footwear, and insurance and financial services declined to negative 0.1%, respectively, compared to the same month of the previous year.

The overall monthly inflation for June 2024 recorded an increase of 0.2%, driven by inflation for transport of 0.5%, restaurant and accommodation services (0.3%) and recreation, sport and culture (0.3%). Meanwhile, inflation for 2Q24 recorded a rise of 1.9% compared to 1.7% in 1Q24. Furthermore, the core inflation increased at 1.9% in June 2024, the same rate as recorded in May 2024, buoyed by the restaurant and accommodation services (3.3%) and food and beverages (2.8%). Most states recorded increases below the national inflation level of 2%, but four states recorded increases above the national level, namely Penang (3.3%), Sarawak (2.7%), Pahang (2.7%) and Selangor (2.4%).

GREENRE LAUNCHES NEW CERTIFICATION CRITERIA FOR EXISTING NON-RESIDENTIAL BUILDINGS

The Edge, 23/7/2024

Green building certification body GreenRE launched a new line of certification criteria for existing non-residential buildings across the country, such as hotels, offices, malls, schools and healthcare facilities. The certification criteria include the thermal performance of the building envelope, natural and mechanical ventilation, application of renewable energy, and other energy-efficient practices and features. There will be four rating tiers — bronze, silver, gold and platinum —and the super low energy tier. GreenRE will be working closely with the Malaysian Green Technology and Climate Change Corporation to ensure compliance with the upcoming Energy Efficiency and Conservation Act (EECA). It is one of many several initiatives to further promote the sustainability agenda in the real estate industry.

WORK ON WEST IPOH SPAN EXPRESSWAY TO COMMENCE THIS YEAR

The Edge, 22/7/2024

The construction of the 60km West Ipoh Span Expressway (WISE) connecting Gopeng to Kuala Kangsar will begin this year. The construction of WISE will begin after the signing of the concession agreement is completed. WISE highway as an alternative to the Menora Tunnel route on PLUS will be equipped with three two-way lanes, with the route starting in Gopeng through Batu Gajah, Siputeh, Manong, Tronoh, Beko, Seri Iskandar and then Kuala Kangsar.

MORE AUTOGATES AT KLIA TERMINALS 1 AND 2, PENANG AIRPORT

The Edge, 22/7/2024

The Home Ministry through the Immigration Department will increase the number of new automatic gate systems (autogates) at Terminals 1 and 2 of the Kuala Lumpur International Airport (KLIA) and the Penang International Airport, in order to overcome congestion at the country's entry points. 40 new autogates were added at KLIA Terminals 1 and 2, making the total number 80. Visitors from another 36 low-risk countries would be allowed to use the autogates at all entry points in the country with the facilities, effective from June 1, 2024. This includes all European Union countries, Bahrain, Qatar, Oman, Jordan, China, Canada, Hong Kong and Taiwan.

MAHB POSTS 40% RISE IN 1H24 INTERNATIONAL TRAFFIC ON INCLUSION OF SIX AIRLINES

The Edge, 22/7/2024 & The Sun, 23/7/2024

The local airport network of Malaysia Airports Holdings Bhd or MAHB saw a 40% year-on-year increase in international traffic in 1H24, fuelled by the addition of six new airlines, Cambodia Airways, Flydubai, Iraqi Airways, Juneyao Airlines, Thai Lion Air and Turkmenistan Airlines. These airlines contributed to total passenger movements of 45 million in 1H24, reaching 87.9% of pre-pandemic levels from the same period in 2019. The recovery in total seat capacity reached 85% in 1H24, amounting to 57 million seats, compared with 67.3 million in 1H19. The average load factor for 1H24 was 78.8%, surpassing the 1H19 level by 3.4 percentage points. This sustained growth throughout 1H24 indicates robust demand, potentially prompting further expansion in seat capacity offerings. 

AIRASIA’S EXPANSION TO SUBANG AIRPORT COMPLEMENTS KLIA T2 OPERATIONS

The Edge, 23/7/2024 & The Sun, 24/7/2024

AirAsia’s expansion of its operations to the Sultan Abdul Aziz Shah Airport (Subang Airport), complements its operations at its main hub at the Kuala Lumpur International Airport (Terminal 2). AirAsia’s operations at Subang Airport will commence with two domestic destinations namely Kuching and Kota Kinabalu with 14 flights weekly. The inaugural operation is set to commence on August 30, 2024. The Subang Airport operations will boost AirAsia Malaysia’s domestic network from 920 flights weekly to 948 flights weekly with a total of 40 routes.

63.35% OF NEARLY 300KM OF LTU COMPLETE

The Edge, 25/7/2024 & The Star, 26/7/2024

Around 63.35% of the nearly 300km of the Central Spine Road (LTU) connecting the East Coast Expressway (LPT) junction in Bentong, Pahang, to Kuala Krai, Kelantan, has been completed. The LTU project, implemented in phases since 2008, is subject to central agency approval. Eleven projects have been completed, 14 are under construction and one is in the procurement process. 

Package One from Kuala Krai to the Sungai Lakit Bridge is 11.59% complete; Package Two from the Sungai Lakit Bridge to Gua Musang is 22.40% complete. Package Three from Gua Musang to Kampung Relong is 84.25% complete; Package Four from Kampung Relong to Raub is 63.69% complete. Users can now access Package Five from Raub to Bentong, and Package Six from Bentong to the LPT Junction is 30.07% complete.

GAMUDA LAND LAUNCHES NEW EIGHT-HOME CLUSTER TYPOLOGY

The Edge, 24/7/2024

Gamuda Land Bhd, the property arm of Gamuda Bhd (GAMUDA), has unveiled a new home typology called the Park Homes. Park Homes is a cluster of eight homes which consist of four corner units and four intermediate units arranged around a gated 40 ft. by 100 ft. communal garden, shared among the eight homes. Each unit will also have its own private garden of 20 ft. or 24 ft. wide. The units will have built-ups ranging from 1,950 sq. ft. to 2,210 sq. ft., and are estimated to be priced from RM750,000. To be launched under the name of “The Clove” in three of Gamuda Land’s satellite townships — Gamuda Cove in Dengkil, Gamuda Gardens, and twentyfive7 in Telok Panglima Garang. The Clove is now open for registration.

IOI PROPERTIES BUYS PJ MALL FOR RM680 MILLION

The Edge, 23/7/2024 & The Star, 24/7/2024

IOI Properties Group Bhd (IOIProp) is purchasing Tropicana Gardens Mall in Petaling Jaya for RM680 million, in addition to three other acquisitions over the past eight months, totalling about RM1.21 billion. The seven-storey Tropicana Gardens Mall has a total gross floor area of 2.95 million sq. ft. and a net lettable area (NLA) of 1.05 million sq. ft., with an occupancy rate of about 77%. It has been in operation for four years since its opening in March 2020.

Other major acquisitions over the past eight months by IOIProp include the 150-room W Kuala Lumpur hotel for RM270 million, 199-room Courtyard by Marriott Penang for RM165 million, and a freehold land measuring 9.86 acres in Pantai Kok, Langkawi, for RM90.1 million. The W Kuala Lumpur and the Courtyard by Marriott Penang were also acquired from Tropicana Corp.

NCT GROUP TOPS OUT GRAND ION MAJESTIC IN GENTING HIGHLANDS

Edgeprop.my, Starproperty.my & The Sun, 23/7/2024 

NCT Group of Companies (NCT Group) announced the topping out of the remaining two towers of its Grand Ion Majestic (GIM) mixed development located with a gross development value of RM1.6 billion in Genting Highlands, Pahang. GIM features three towers with a total of 1,885 serviced apartments and hotel rooms, as well as a retail space of 178,000 sq. ft. The first tower is Wyndham Ion Majestic Hotel, featuring 850-room hotel which opened its doors in May 2024 and currently has an average occupancy rate of 40%. Meanwhile, the remaining two towers are now 95% completed and will provide an additional 1,035-room for the 1001 Nights Hotel.

The 1001 Nights Hotel is a Trademark Collection by Wyndham Hotels & Resorts, scheduled for a soft opening by 4Q24. The hotel will feature a Star River Theme Lobby and Sky Theme Pavilion Garden. The 1001 Nights Hotel is also set to be a new hub for meeting, incentive, conference and exhibitions (MICE) industry, wedding destination and filming location in Genting Highlands.

STEP BACK IN TIME TO MERDEKA

The Star, 25/7/2024

The historic site Merdeka Stadium, which has completed its restoration process, will reopen to the public on August 17, 2024, in conjunction with the National Month celebration. The restoration effort for the stadium began in 2017, costed RM2 million for the works included removing the additional seating terraces installed during the 1989 SEA Games, thereby restoring the original capacity of 20,000 seats. Other works included rebuilding the display board, restoring the floor tiles at the main entrance, and repairing the stadium lights. The restoration has achieved almost 100% resemblance to the original condition, allowing visitors to experience the authentic ‘aura’ of the original Merdeka Stadium.

Located about 600 m from Merdeka 118 Tower, which now serves as the backdrop to this heritage site, Merdeka Stadium is easily accessible via public transportation, including the Mass Rapid Transit (MRT) (Merdeka Station).

TWO LOCAL COUNCILS ADDED TO SPECIAL ECONOMIC ZONE

The Star, 22/7/2024

Pengerang Municipal Council (MPP) and Pontian Municipal Council (MPPn) are now included in the Johor-Singapore Special Economic Zone (JS-SEZ) development area due to the potential investment coming into the Johor state through JS-SEZ once it is launched.

JOHOR ALLOCATES RM55 MILLION TO BUILD, REPAIR HOUSES FOR NEEDY

The Sun, 22/7/2024

The Johor government is allocating RM54.7 million to build and repair houses for the hardcore poor and the less fortunate in the state. The total allocation made under the 2024 State Budget, RM22.79 million is for the repair of houses, while the remaining is for the building of 328 housing units.

TROPICANA TO DEVELOP RM35 BILLION MEGA TOWNSHIPS IN JOHOR

NST, 22/7/2024

Tropicana Corp Bhd plans to unlock its landbank in Johor and develop two mega townships worth over RM35 billion in gross development value, the Lido Waterfront Boulevard in Johor Bahru and Tropicana Uplands in Gelang Patah.

Lido Waterfront Boulevard, an integrated mixed development with an estimated GDV of more than RM25 billion, will be situated on 163 acres of reclaimed land along the waterfront near Singapore. It will include sectors such as healthcare, medical tourism, hospitality, recreation, and lifestyle. The project will begin with the launch of The Watermark Residences (Phase 1) on 3Q24, with a GDV of RM1 billion. The Watermark, located an eight-minute drive from the under-construction Bukit Chagar Station of the Johor Bahru-Singapore Rapid Transit System (RTS), will comprise 1,596 serviced residential units and 16 retail lots.

Tropicana Uplands is a 314-acre sustainable township in Gelang Patah. Its first residential precinct, Aster Heights, achieved a 100% take-up rate for its 193 units of two-story terraced houses within five months of its 2021 launch. The upcoming Fraser Heights, with a GDV of RM387 million, will offer 518 units of premium two-story and two-and-a-half-story terraced houses.

AXTERIA SCRAPS PLANS TO JOINTLY DEVELOP JOHOR MIXED PROJECT WITH RM413.2 MILLION GDV UNDER FIRST PHASE

The Edge, 24/7/2024

Property developer Axteria Group Bhd (AXTERIA), formerly known as Acoustech Bhd, has scrapped plans with Alpha Astral Properties Sdn Bhd (AAPSB) to jointly undertake a mixed development project on land measuring 893,803 sq. ft. in Johor Bahru. The reason for the termination was due to the condition precedent not being met prior to the end of the extended condition period.

Under the JV, the two companies had plans to develop a portion of the land into a mixed development consisting of two blocks of small-office, home-office suites totalling 792 units, a four-storey corporate office, a four-storey spa, a boutique hotel, an office and co-working space, a three-storey retail showroom space, a seven-storey multi-level carpark and a clubhouse.

AME ELITE SELLS FOUR JOHOR INDUSTRIAL PROPERTIES TO AME REIT FOR RM119.5 MILLION

The Edge, 24/7/2024

AME Elite Consortium Bhd (AME) is selling four industrial properties in Johor to its 49.62%-owned unit AME Real Estate Investment Trust (AME REIT) for a total of RM119.5 million, to realign its property investments into a REIT. This is AME REIT’s second acquisition from AME Elite within 10 months. The trust bought three industrial properties in Iskandar Malaysia from AME Elite for RM69.3 million in October 2023. The transaction is scheduled to be completed by 3Q24.

TM, SINGTEL’S NXERA BREAK GROUND FOR STATE-OF-THE-ART DATA CENTRE CAMPUS IN JOHOR

The Sun, 26/7/2024

Telekom Malaysia Bhd (TM) and Nxera, the regional data centre arm of Singtel’s Digital InfraCo unit, held a groundbreaking ceremony on August 25, 2024, for their 64MW state-of-the-art, sustainable, hyper-connected, artificial intelligence-ready data centre campus in Iskandar Puteri, Johor. The groundbreaking comes one month after the announcement of a joint venture to develop data centres in Malaysia and uplift Johor’s digital hub status. The data centre campus is scheduled to begin commercial operations in 2026.

TM-Nxera’s upcoming data centre campus, located in Iskandar Puteri, holds particular significance as one of the Johor Singapore Special Economic Zone’s (JS-SEZ) first investment projects. This data centre campus will serve as a catalyst for economic growth and enable businesses to harness the power of cloud computing and AI.

PENANG REMAINS COUNTRY’S TOP EXPORTER FROM JANUARY-MAY 2024 WITH RM177.99 BILLION IN VALUE — MATRADE

The Edge, 22/7/2024

Penang remains Malaysia’s top exporter for the period from January to May 2024, with a value of RM177.99 billion. In 2023, Penang contributed 30.5% or RM434.74 billion of the country’s total exports. Among the main sectors recording positive export growth were integrated circuits, valves and other tubes, aircraft and fittings and spare parts, and tin and non-alloys. In terms of investments, Penang was at the top in terms of investment value recorded, which stood at RM71.9 billion last year, with 415 projects offering 20,701 job opportunities. The country’s exports had exceeded RM1 trillion for three consecutive years, and that for the first six months of 2024, exports had increased by 3.9% to RM731.11 billion, while trade surplus was at RM66.12 billion during the period.

PENANG AIRPORT TO HAVE EIGHT MORE AUTOGATES

The Star, 25/7/2024

Eight additional autogates for passport inspection have been added at Penang International Airport (PIA) to alleviate congestion. The number of autogates had been increased from 12 to 20, while the Immigration Department had also bolstered its workforce at PIA in Bayan Lepas. 

The number of international tourists entering the state had increased, especially with more direct flights to Penang from cities such as Xiamen and Shanghai in China, Dubai in United Arab Emirates as well as increased flight frequencies from other international locations. Between January and May 2024, the number of international arrivals at PIA was 742,244 passengers, an increase of 28.19% compared to 579,011 passengers in the same period in 2023.

AME ELITE TO LAUNCH RM1 BILLION GDV INDUSTRIAL PARK IN PENANG IN 2H24

The Edge, 24/7/2024

AME Elite Consortium Bhd (AME), which mainly builds industrial properties, plans to launch the 176-acre Northern TechValley industrial park in Penang, with a gross development value (GDV) of RM1 billion, in 2H24. The group’s recent land acquisition in Kulai, Johor, will further strengthen its development pipeline, driven by the surge in data centre investments and high-value manufacturing.