Week 39 - 2023
MALAYSIA SECURES RM37.4 BILLION IN TECH INVESTMENTS
The Star, The Sun, NST & The Edge, 26/09/2023
Malaysia has successfully secured over RM37.4 billion in investment commitments in the digital technology sector as of August 2023 and creates at least 15,895 high-value jobs. The investments reflected foreign investors’ confidence in Malaysia Digital (MD), the national strategic initiative driving the digital economy. Recently, Prime Minister witnessed the signing of three memoranda of understanding worth a total of RM19.84 billion between Malaysian and Chinese companies, further solidifying Malaysia’s position as an attractive destination for investments. Malaysia Digital Expo (MDX 2023) is a key initiative under MD that aims to position Malaysia as a leading digital nation in the Asean region. The MDX 2023, which began on 25th September 2023 and will run until 8th November 2023, will feature a series of events to be held nationwide, including conferences, workshops, exhibitions and networking sessions, culminating in the MDX grand finale and industry awards dinner.
BATIK AIR TO START FLYING TO TASHKENT ON 8TH DEC 2023
NST, 25/09/2023
Batik Air Malaysia, a subsidiary of Indonesia’s Lion Group, is flying to Tashkent, Uzbekistan from Kuala Lumpur starting 8th December 2023, making it the first Malaysian-based airline to operate to the Central Asia region. There is also high demand for travellers from Uzbekistan to travel to Malaysia, Indonesia and Thailand. The travellers could make Kuala Lumpur as a pit stop before flying off to Bangkok, Bali or Jakarta. The Kuala Lumpur-Tashkent flight ticket is available online on Batik Air’s official website. The carrier will operate the route twice weekly from Kuala Lumpur International Airport (KLIA) Terminal 1 to Islam Karimov International Airport (TAS). TAS is the largest international airport in Uzbekistan and the third busiest airport by passenger traffic in Central Asia in 2019.
FLYDUBAI ADDS PENANG, LANGKAWI TO EXPAND ASEAN FOOTPRINT
NST, 25/09/2023
Dubai-based Flydubai, is adding Penang and Langkawi into its expanding its footprint in Southeast Asia starting 10th February 2024 with daily flights from Dubai. The commencement of these routes makes the airline the first to connect Penang and Langkawi from the United Arab Emirates (UAE) and the first carrier to operate flights from the Middle East to Langkawi. Penang and Langkawi are popular destinations for travellers from the UAE, the Gulf Cooperation Council (GCC) countries and Europe. GCC countries are six countries comprising the UAE, Bahrain, Kuwait, Oman, Qatar and Saudi Arabia. The daily flights will operate from Terminal 3, Dubai International Airport to Penang International Airport and Langkawi International Airport. The B737 MAX aircraft that will be used to service Penang and Langkawi routes features lie-flat seats in Business Class and the added comfort and enjoyable travel experience in economy class. The return Business Class fares from Dubai to Penang start from RM14,044 and economy class lite fares start from RM3,447. For Langkawi, the return Business Class fares are priced from RM14,044 and economy class kite fares start from RM4,468.
MALAYSIA AIRLINES LAUNCHES NEW DIRECT FLIGHT TO KERTAJATI IN INDONESIA
The Edge & The Sun, 26/09/2023
Malaysia Airlines is expanding its network in Indonesia with the introduction of a new direct flight from Kuala Lumpur to Kertajati starting 30th October 2023. The twice-weekly flight will be operated by the airline’s Boeing 737-800NG aircraft, allowing travellers to seamlessly explore Bandung and more of West Java with ease. The new network would bring the airline’s direct connectivity to Indonesia to seven cities including Jakarta, Denpasar, Medan, Yogyakarta, Pekanbaru and Surabaya.
WORK ON GENTING TUNNEL PROGRESSES TO 3.6KM OUT OF 16.39KM
NST, 27/09/2023
Making its way under the Titiwangsa Range are two state-of-the-art tunnel-boring machines (TBM) for the Genting Tunnel of the East Coast Rail Link (ECRL) project that will, upon completion, be the longest rail tunnel in Southeast Asia. The twin-bore tunnels fall under the alignment of China Communications Construction Company (CCC) ECRL Project Section 7 which links Bentong, Pahang with Gombak, Selangor will see a total length of 16.39 kilometres with a maximum buried depth of 750 metres. Works on the tunnel began in June 2022 at the portal nestled in the hillsides near Bukit Tinggi, where it has now achieved a distance of 3.6 kilometres out of its total length of 16.39 kilometres. Section 7 of the ECRL project will also see subgrades (materials underneath a constructed rail road) with a total length of 19.24 kilometres, 23 bridges totalling 14.84 kilometres, and 12 tunnels with a total length 22.65 kilometres. The 665 kilometres long ECRL alignment which was launched in 2017 involves the construction of an electrified rail network linking the states of Kelantan, Terengganu, and Pahang with the Klang Valley. As to date, the project has reached 52.9% completion and is on track to be completed by 2027. The ECRL project from Kota Baru, Kelantan to Gombak is set to be completed on 31st December 2026, while the Gombak to Port Klang stretch is expected to be completed by 31st December 2027.
SP SETIA’S IRAMA VILLA III FULLY BOOKED
Straproperty.com, 27/09/2023 & The Edge, 28/09/2023
SP Setia Bhd’s latest freehold residential development Irama Villa III in Bandar Kinrara has achieved a 100% booking rate over its weekend launch. Offering 38 units of double-storey terraced homes on a 3.97-acre plot, the development is designed for those pursuing spacious living and excellent amenities. Irama Villa III will include smart features, such as a smart lock for enhanced security, a solar photovoltaic conduit to harness clean energy, EV ports to support the adoption of electric cars, as well as a green switch for convenient control of electrical appliances. The units will also include the Box 366 food and parcel delivery dropbox. Irama Villa III comes in sizes ranging from 2,165 to 2,770 sq. ft., and 2,234 to 2,337 sq. ft. with 4+1 bedrooms and five bathrooms. The selling price starts at RM1.4 million. Conveniently linked to a network of major highways including the KESAS Highway, MEX Highway, NPE Highway, LDP Highway, and MRR2, Bandar Kinrara is connected to various parts of the Klang Valley and beyond. It is also convenient for those who rely on public transportation with its proximity to the Kinrara BK 5 LRT station.
LAST PHASE OF IJM LAND’S AVELA HOMES AT IJM RIMBAYU 42% SOLD
The Edge, 28/09/2023
IJM Land’s Avela Phase 17C homes at IJM Rimbayu, launched on 11th September 2023, has achieved a sales rate of 42%. This third and final phase of Avela, Phase 17C, features 145 two-storey Type A Garden Homes that measure 30ft by 70ft and comes with eight feet of garden each. The homes have a build-up of 2,745 sq. ft. and have selling prices that start from RM1.438 million. Phase 17C has a gross development value (GDV) of RM216 million. The overwhelming sales rate of 17A and 17B (with a total sales rate of over 90%) is a testament to the resonance of Avela’s concept.
The earlier phases of 17A and 17B were launched in May this year. Phase 17A featured 164 Type A Garden Homes, while Phase 17B offered 136 Type B Link Homes that measure 22ft by 70ft. The combined GDV of these two phases is RM357 million. The Avela precinct features gardens for its residents. Other facilities include a meditative pavilion, outdoor gym, jogging path, basketball court, multi-purpose hall, playground, skateboard and rollerblade park, rock-climbing wall and multigenerational play area for all ages to interact with each other. There is also The Club @ IJM Rimbayu, which features an Olympic-sized swimming pool, sport courts, gym and sauna. An upcoming 60,000 sq. ft. hypermarket will open in Rimbayu Business Hub.
NINE OF 22 PR1MA SICK PROJECTS COMPLETED NATIONWIDE
The Sun, 25/09/2023
Construction of nine out of 22 housing projects under Perbadanan PR1MA Malaysia (PR1MA) nationwide that were categorised as sick or problematic projects have been completed as of last 31st July 2023. The nine projects, involving 6,406 units, were completed following the setting up of the sick and abandoned private housing project task force (TFST) in early 2023. The ministry aims to complete the remaining PR1MA projects, involving 9,528 units, within two years or before the end of 2024. Two projects, namely the Malacca Tengah Residence Project 2 and the Klebang Residence Project 2, were now 90% completed. Both housing projects are expected to be completed by 1Q24, while the Bukit Katil Residency Project is expected to be completed by 4Q24.
EXCEEDING TARGET FOR AFFORDABLE HOUSING
The Star & The Edge, 23/09/2023
Selangor government expects 45,000 affordable housing units to be completed in the state by end-2023, exceeding its initial target of 30,000 units. A total of 40,000 affordable housing units were built as of August 2023, and expect another 5,000 units to be built by the end of 2023. The affordable homes, developed under programmes such as Rumah Selangorku, Rumah Idaman and Rumah Harapan, were priced at RM250,000 and below per unit. The key handover ceremony of 420 units of Pangsapuri Selangorku @ Seri Temenggung in Batu Caves. Pangsapuri Selangorku is a joint venture between Rexpoint Resources Sdn Bhd, an associate company of Melati Ehsan Group, and Selangor State Development Corporation (PKNS). Pangsapuri Selangorku marks the project’s first phase. The second is Bayu Residensi @ Seri Temenggung, which comprises 1,240 apartment units. The entire project is located on 9.8 acres land. Pangsapuri Selangorku is priced at between RM100,000 for a 750sq ft unit and RM220,000 for a 1,000sq ft unit. Its certificate of compliance and completion was issued in early August 2023. Twenty-nine families who were squatting on land that now houses Pangsapuri Selangorku were offered a 900 sq. ft. unit each at a discounted price of RM65,000. Also included in the compensation package was an ex-gratia payment of RM1,000 per family and RM500 rental subsidy until the project’s vacant possession was delivered.
IOI PROPERTIES LAUNCHES SIERRA FRESCO AND IOI GALLERIA IN 16 SIERRA, PUCHONG SOUTH
The Edge, 26/09/2023
IOI Properties Group has launched Sierra Fresco and the new IOI Galleria at its 16 Sierra township, Puchong South. IOI Properties stated that “Sierra Fresco is a dynamic 10-acre commercial hub that features a curated selection of popular brands, which aims to provide conveniences and lifestyle options to the community. With a total net lettable area of 98,000 sq. ft., Sierra Fresco is fully managed by IOI Properties and hosts brands such as Village Grocer, The Coffee Bean & Tea Leaf, CU Mart, Anytime Fitness, Subway and A&W. IOI Properties also opened its new IOI Galleria @ 16 Sierra, also located within Sierra Fresco. Sierra Fresco has allocated 6,504 sq. ft. of its commercial space for urban farming. Urban farming provides access to healthy, fresh and locally grown produce.
According to IOI Properties, the next 12 months will be a busy period for 16 Sierra as the township ramps up to introduce more projects to the market. These include two new parcels of landed developments in 16 Sierra, comprising 2-storey terrace houses and 3-storey townhouses, both scheduled to launch in December 2023. In the pipeline for launching in February 2024 is a new transit-oriented development (TOD), which will offer around 600 units of 2 to 4-bedroom service apartments that are within walking distance to the 16 Sierra MRT Station.
AVALAND LAUNCHES AMIKA RESIDENCES SALES GALLERY
The Edge, 27/09/2023
Avaland Bhd inaugurated its sales gallery for Amika Residences, its latest project in Subang Jaya, on 23rd September 2023. The 3.5-acre, freehold Amika Residences is located immediately next to Alira Subang Jaya. Inspired by the Japanese’s art of simplicity, the serviced apartments are designed to be flexible and able to accommodate the needs of residents in various stages of their lifecycle, from young couples to growing families and multi-generational living. With an estimated total gross development value (GDV) of RM475 million, Amika Residences will face a 9.2-acre central park with a water body inspired by Melbourne’s Yarra River. It comprises 468 serviced apartments in two towers (Tower A: 216 units, Tower B: 252 units) and will come in three sizes — 883 sq. ft., 1,075 sq. ft. and 1,227 sq. ft., offering layouts of 2+1 bedrooms, three bedrooms, and 3+1 bedrooms respectively. Each unit will include an inside foyer that is designed to resemble the entryways of traditional Japanese homes and has room for a seat and shoe cabinet if needed. Facilities for residents are to be located on the West Garden “Nishi” on Level 3, East Garden “Azuma” on Level 8, and the Clubhouse Rooftop, including a stone garden, tatami lawn, water cascades and koi pond, tea leaf pavilion, gymnasium, central pool, garden kitchen and sky garden. Amika Residences will also feature 24 retail units with built-ups ranging from 1,335 sq. ft. to 3,681 sq. ft. Emphasising its scenic view of the central park, the retail units are aimed at elevating the community’s lifestyle needs. Amika Residences has achieved GreenRE certification (Gold rating), with 84% of dwelling unit spaces designed to have excellent airflow and natural light in 90% of the rooms, enhancing comfort for residents and reducing electricity costs.
SENHENG BUYS DISTRIBUTION CENTRE FOR RM76 MILLION
The Star, The Sun, NST & The Edge, 26/09/2023
Senheng New Retail Bhd has proposed to acquire a piece of land together with the buildings erected, which is currently being used as a central distribution centre (CDC), for RM75.8 million cash. Senheng’s wholly owned subsidiary Senheng Electric (KL) Sdn Bhd (Senheng KL) entered into a sale and purchase agreement with SDM Assets III Sdn Bhd for the proposed acquisition. The acquisition involves a piece of freehold industrial land in Klang, Selangor, together with a single-storey warehouse facility with three-storey office space inclusive of ancillary buildings and external structure erected thereon. The asset is currently being rented by Senheng KL from the vendor and used as the CDC for Senheng and its subsidiaries. The CDC encompasses a built-up area of 200,035 sq. ft, comprising a warehouse, offices and ancillary buildings on a 6.6-acre freehold industrial land.
GLOBALFOUNDRIES OPENS NEW HUB FACILITY IN PENANG
The Edge & NST, 27/09/2023
Semiconductor manufacturer GlobalFoundries Inc (GF) has officially opened its new hub facility in Penang that will be utilised to oversee the company’s global operations. The new Penang operation would ensure that all GF’s global manufacturing sites in Singapore, the United States (US) and Europe have fundamental round-the-clock support, enabling the company to maintain supply chain resiliency and sustainability for global operations. The site would utilise the latest digital manufacturing technologies such as remote access, Industry 4.0 solutions and GF’s state-of-the-art factory control tower (FCT). The company invested US$1 million for the FCT in the Penang hub, and it would also invest up to US$7 million for the training of engineers and technicians in the facility for the next three years, he said. Currently, the hub has about 300 engineers and technicians, but GF would look at hiring an additional 500 to 600 engineers and technicians, should demand continue to grow. GF chose Penang to set up the FCT due to the availability of talents with semiconductor backgrounds, in addition to the state being a vibrant location for semiconductor manufacturing innovation.
SUNWAY UNIT, PENANG DEV CORP TO DEVELOP PRIME BATU KAWAN LAND IN RM646 MILLION DEAL
The Edge, 28/09/2023
Sunway Bhd’s 70%-owned Umech Land Sdn Bhd has signed a joint development agreement with Penang Development Corp (PDC) to develop a 559-acre prime industrial land in Batu Kawan, Penang, in exchange for a land entitlement of RM646.02 million. PDC will receive a land entitlement that consists of a RM64.6 million deposit, with the remaining RM581.42 million to be paid via four instalments. Both parties will collaborate on the development of the land, which will be known as “Batu Kawan Industrial Park 2”. The proposed industrial park will comprise factories, industrial lots and commercial components with a gross development value (GDV) of at least RM3.5 billion.
ICONIC GROUP’S FIVE-STAR BAYAN LEPAS HOTEL TO BE PART OF MARRIOTT BRAND
The Star & The Sun, 29/09/2023
Iconic Penang Sdn Bhd recently announced the signing of a franchise agreement with international hotel group Marriott International for operating the 298-room Iconic Marjorie Hotel in Bayan Lepas, Penang. Slated to open in 2024, the five-star hotel is suited for seminars, workshops, business talks and conferences. Among its offerings will be the Pearl Ballroom, which will be one of the largest grand ballrooms in Penang with a capacity of up to 850 people. The hotel will feature an all-day dining restaurant, lobby lounge and an outdoor swimming pool. In line with Iconic Group’s commitment to advancing sustainable real estate development, Iconic Marjorie Hotel will adopt industry-recognised environmental, social, and governance standards. It is poised to be the first hotel in Penang to achieve the prestigious Gold Standard within the Green Building Index rating system. Iconic Marjorie Hotel will be the second hotel project by Iconic Group after the 195-room Iconic Hotel in Seberang Perai, Penang, which opened in 2016.