Week 39 - 2024
INFLATION EASES MARGINALLY IN AUGUST 2024
The Sun & The Star, 24/09/2024
Headline inflation, as measured by the change in the consumer price index (CPI), eased slightly last month, after remaining stable at the same rate for the previous three months (May-July 2024). The CPI growth slowed to 1.9% year-on-year (y-o-y) in August 2024 from 2% y-o-y in May to July 2024.
The food and beverages group, which contributes 29.8% of the total CPI weight, increased by 1.6% in August 2024, the same rate as recorded in July 2024. Inflation for transport increased 1.3% last month, as compared to 1.2% in July 2024, driven by the main subgroup of operation of personal transport equipment which increased to 1.8%.
Among the items that recorded an increase were diesel and unleaded petrol RON97. In August 2024, the average price for diesel in Peninsular Malaysia was RM3.27 per litre as compared to RM2.15 per litre in August 2023 (July 2024: RM3.35 per litre). For Sabah, Sarawak and Wilayah Persekutuan Labuan, the price remained at RM2.15 per litre. In addition, the average price of unleaded petrol RON97 in August 2024 was RM3.47 per litre against RM3.37 per litre in August 2023 (July 2024: RM3.47 per litre).
In comparison to the inflation in other selected countries, Malaysia’s headline CPI in August 2024 was lower than that in Indonesia (2.1%), Vietnam (3.5%) and the Philippines (3.3%) as well as South Korea (2%). However, Malaysia’s August 2024 inflation rate was higher than China (0.6%) and Thailand (0.4%).
SUBANG AIRPORT REPORTS 25% GROWTH IN INTERNATIONAL PASSENGER TRAFFIC FOR AUGUST 2024
NST, 21/09/2024
Sultan Abdul Aziz Shah Airport, or better known as Subang Airport, recorded a significant 25% increase in international passenger traffic in August 2024, following the re-introduction of jet operations. The airport welcomed 21,096 international passengers, up from 16,900 on July 2024. Currently, Subang Airport is served by five airlines, three local (AirAsia, Batik Air and Firefly Airlines) and two international (Scoot and Transnusa). Firefly Airlines, Scoot, and Transnusa operate international flights to Singapore and Jakarta, while AirAsia and Batik Air provide domestic connections to Kota Kinabalu, Kuching, and Penang, among other destinations.
The airport's domestic traffic had a total of 83,904 passengers, contributing to an overall passenger count of 105,000, representing a 1.3% growth compared to the previous month. Across its local network of airports, Malaysia Airports surpassed 8 million monthly passenger movements for the second consecutive month, reaching 8.4 million passengers. This figure includes 4.4 million international passengers and 4.0 million domestic passengers.
Overall, the Malaysia Airports Group achieved 12.3 million passenger movements in August 2024, maintaining a robust performance with over 12 million passengers for the second consecutive month. This represents a 96.1% recovery compared to pre-pandemic levels in 2019. The sustained growth is attributed to various factors, including late-season summer travel, the launch of new airlines and routes, increased flight frequencies, and the resumption of jet operations at Subang Airport.
MALAYSIA AIRLINES STARTS DAILY SERVICE TO DA NANG
The Sun, 25/09/2024
Malaysia Airlines had launched its inaugural flight to Da Nang, Vietnam (Flight MH748) from KLIA Terminal 1 to Da Nang International Airport daily. The Boeing 737-800 aircraft carried a total of 155 passengers. This new service marked the group’s third destination to Vietnam.
INDUSTRONICS IN RM7 MILLION KAJANG LAND DISPOSAL
The Star, 24/09/2024
Industronics Bhd is disposing of 14,876 sq. ft. of freehold land in Kajang, Selangor to People and Global Sdn Bhd for RM7 million. The company said the land contains a four-storey office and a single-storey detached factory.
PTT SYNERGY SNAPS UP RM11 MILLION SEPANG FACTORY, LAND FROM SIME DARBY PROPERTY
Edgeprop.my, 23/09/2024
Integrated construction and property company PTT Synergy Bhd has acquired a semi-detached factory, together with a piece of land, in Sepang from Sime Darby (Serenia City) Property Bhd RM11 million. The factory, identified as Type Cm, sits on 28,346 sq. ft. (2,633.4 sq. m.) of land in Pusat Perindustrian Serenia.
This acquisition follows PTT Synergy’s purchase in July 2024 (In The News Week 29 2024) of a 56,691 sq. ft. (5,266.8 sq. m.) plot nearby for RM22 million by its wholly-owned subsidiary Pembinaan Tetap Teguh Sdn Bhd from Sime Darby Property (Serenia City) Sdn Bhd and Sime Darby Property (Ampar Tenang) Sdn Bhd.
FARLIM SELLS PERAK LAND FOR RM33 MILLION
The Edge, 25/09/2024 & The Star, 26/09/2024
Farlim Group (M) Bhd is disposing of a leasehold housing scheme, together with reserved land for infrastructure, utilities, amenities and services measuring 96.8 acre (39.174 ha) in Kampar, Perak to Gabong Holding Sdn Bhd for RM33 million. The proposed disposal is expected to be completed in 1H25.
PESONA METRO WINS RM321 MILLION BUILDING JOB
The Edge, 24/09/2024 & The Star, 25/09/2024
Pesona Metro Holdings Bhd (PMHB) has accepted a letter of award from Sime Darby Property (Golfhome) Sdn Bhd for the execution and completion of superstructure works worth RM321.09 million. The superstructure works is for three condominium blocks comprising 150 units in Bukit Kiara, Kuala Lumpur. The project will be for a period of 27 months from the date of commencement (Oct 11, 2024).
MAGMA BUYS RM80 MILLION DUTAMAS LAND FROM SKYLOAD
The Star, 25/09/2024
Skyload Express Sdn Bhd will dispose of a 2.26-acre leasehold land in Persiaran Dutamas, Kuala Lumpur to Magma Group Bhd for RM80 million. The land, located about 8km from the Kuala Lumpur city centre, has received approval for two 34-storey towers consisting of service apartments and commercial spaces.
ANCUBIC GROUP LAUNCHES AND BREAKS GROUND FOR A-PARK BANGI INDUSTRIAL PARK
The Edge, 26/09/2024
Boutique developer Ancubic Group has officially launched its latest industrial park project, A-Park Bangi, in a groundbreaking ceremony at the Ancubic Harmoni sales gallery. Situated on 20 acres leasehold land, A-Park Bangi is gated and guarded which comprises 49 units of two-storey and three-storey semi-detached and detached factories with built-ups ranging from 9,500 to 31,000 sq. ft. The units are priced from RM6.7 million. The industrial park is targeted to be completed by 2027. As of date, 60% of the factory units have been booked. Some features and facilities of A-Park Bangi include 66 ft. access roads, rainwater harvesting systems, a one-acre recreational park and optional solar panels for rooftops.
This industrial park project is the final industrial development in the Bandar Baru Bangi area. The factory units of A-Park Bangi have been designed with operational practicality in mind, offering innovative features to meet the needs of modern businesses. The industrial park is accessible via major road networks such as the North-South Expressway, Silk Highway, and SKVE Highway.
ALMOST 65 MILLION LOCAL TOURIST ARRIVALS RECORDED IN 2024
The Star, 21/09/2024
A total of 64.8 million local tourist arrivals were recorded in 2Q24, marking a 23.8% increase compared with the same period last year. Domestic tourism expenditure for the 2Q24 also rose 28.6% to RM28.1 billion. The performance of domestic tourism in 2023 showed strong growth, with domestic visitor arrivals reaching 213.7 million people, a 24.6% increase from 171.6 million the previous year. In addition, domestic tourism receipts rose by 32.5% to RM84.9 billion, thus reflecting the positive impact of the reopening of all economic activities. However, if compared to pre-pandemic levels in 2019, total domestic arrivals were still 10.6% lower and receipts declined by 17.7%.
In line with the national recovery, all states recorded significant increases in both tourism volume and receipts. In 2023, Selangor led with the highest domestic tourism receipts at RM11.1 billion, followed by Kuala Lumpur (RM11 billion), Sarawak (RM6.94 billion) and Pahang (RM6.73 billion). Shopping remained the primary driver of tourism receipts, contributing RM30.84 billion, in addition to expenditure on food and beverages, accommodation and automotive fuel. The main purpose of domestic overnight trips for all states was visiting relatives and friends, except for Labuan, where holiday and leisure travel prevailed.
The national average length of stay was 2.45 nights, a slight decrease from 2.55 nights in 2022, while several states and territories exceeded the national average, including Sarawak (3.48 nights), Kelantan (3.07 nights), Labuan (2.89 nights), Kuala Lumpur (2.70 nights), Sabah (2.67 nights) and Terengganu (2.59 nights).
Based on the social and demographic profile of domestic tourists, six states and three territories (Johor, Melaka, Negri Sembilan, Pahang, Penang, Selangor, Kuala Lumpur, Labuan and Putrajaya) had the most number of domestic visitors from households earning between RM5,001 and RM10,000 per month. The other seven states (Kedah, Kelantan, Perak, Perlis, Terengganu, Sabah and Sarawak) recorded the highest percentage of visitors from households earning between RM1,001 and RM3,000 per month.
KLUANG TO BECOME JOHOR’S LOGISTICS HUB
The Sun, 25/09/2024
Kluang will become Johor’s logistics hub following the development of several infrastructure projects such as the Gemas-Johor Bahru Electrified Double Track project (Gemas-JB EDTP), the PLUS highway expansion and federal road upgrading works which will improve the district’s connectivity. A 2.1 km bypass from Taman Muhibah to Layang will be built with a RM60 million allocation to overcome congestion in Kluang, easing traffic flow for 30,000 vehicles daily.
JOHOR FINALISING LOCAL TRANSPORT NETWORK TO SUPPORT RTS INTEGRATION
The Edge, 26/09/2024
The Johor state government is in the midst of finalising a local transport network designed to complement the Johor Bahru-Singapore Rapid Transit System (RTS) Link. The network will connect landing points in Johor Bahru to “various developments” within the Johor-Singapore Special Economic Zone. There are several other large-scale infrastructure projects in the state’s pipeline, including expansions to the Senai-Desaru Expressway and North-South Expressway. The RTS Link slated for completion in 2026 and when operational is expected to reduce travel time, facilitating smoother movement for commuters and businesses.
These projects aim to further support the rapid growth of the Johor economy, which expanded 4.1% in 2023 and outpaced the national average growth of 3.6%, as well as to improve the cross-border connectivity and promote economic integration between Johor and Singapore. The measures could further streamline cross-border movements, boosting efficiency for businesses operating in Johor and beyond.
Johor’s infrastructure advancements are part of the broader Maju Johor 2030 initiative that aims to transform the state into a leading regional economic hub by enhancing governance, economic development, and connectivity, among others.
HARN LEN SELLS JOHOR LAND FOR RM55 MILLION
The Edge, 24/09/2024 & The Star, 25/09/2024
Plantation company Harn Len Corp Bhd has inked a sale and purchase agreement (SPA) with Starsea Resources Sdn Bhd to dispose of a parcel of land in Johor Bahru for RM55 million. The land parcel, currently being used as public parking, is located along Jalan Ngee Heng. It is about 100m to the east of the proposed Rapid Transit System Link (RTS Link) station that is under construction.
GOVERNMENT ANNOUNCES INCENTIVES TO JUMPSTART FOREST CITY SPECIAL FINANCIAL ZONE
NST & The Edge, 21/09/2024, The Star, 24/09/2024 & The Sun, 25/09/2024
The Malaysian government announced incentives to jumpstart the Forest City Special Financial Zone (FC-SFZ) that include special corporate income tax rates and 0% tax rate for family offices. To attract international capital to Forest City, the government is offering a concessionary corporate tax rate of between 0% and 5%, and a personal income tax rate of 15% for knowledge workers and Malaysians who choose to work there. These incentives are expected to attract businesses, financial institutions, and high-net-worth individuals, further augmenting Forest City’s position as a preferred investment destination.
Forest City will also be the first location in Malaysia to offer a 0% tax rate for family offices to attract Asian and Malaysian families to manage their wealth from Malaysia. The government is targeting to have the scheme operational by 1Q25.
Forest City is also envisioned to become a hub for financial global business services, financial technology, and foreign payment system operators with a special 5% tax rate. Banks, insurance, capital market intermediaries and other eligible financial sector entities in Forest City will also enjoy incentives that include special deductions on relocation costs, enhanced industrial building allowances and withholding tax exemptions. Locally incorporated foreign banks will also enjoy flexibilities to open additional branches within the special financial zone, and also benefit from foreign exchange flexibilities for offshore borrowing in foreign currency and investment in foreign currency assets.
SC OUTLINES CONDITIONS FOR FAMILY OFFICES' TAX BREAK IN FOREST CITY SPECIAL FINANCIAL ZONE
The Edge, 23/6/2024
The Securities Commission Malaysia (SC) has outlined several conditions for single family office vehicles (SFOVs) to be eligible for the recently announced 0% concessionary tax rate, including assets under management (AUM) of at least RM30 million. The SFOV must also meet minimum local investment in eligible and promoted investments of at least 10% of its total AUM or RM10 million, whichever is lower. In order to be eligible for the incentives, the SFOV must be established and operate a registered office in Pulau 1, Forest City, in Johor. The incentives will be effective for an initial period of 10 years, and an additional 10 years with further conditions.
To qualify for the initial 10-year period, the SFOV must be a new investment holding company incorporated in Malaysia and seek pre-registration with the SC for eligibility for the tax incentives. The SFOV must also spend operating expenditure (opex) locally at a minimum of RM500,000 annually, and employ at least two full-time employees of whom at least one is an investment professional, with a minimum monthly salary of RM10,000. To qualify for the additional 10-year period, the SFOV must then hold an AUM of at least RM50 million and an annual opex of RM650,000.
THREE UEM SUNRISE PROJECTS IN ISKANDAR PUTERI WITH COMBINED GDV OF RM499 MILLION FULLY TAKEN UP
The Edge, 25/09/2024
Three of UEM Sunrise Bhd’s projects in Iskandar Puteri, Johor, with a combined gross development value (GDV) of RM499 million, have been fully taken up during their respective previews. These projects are Aspira Hills (Phase 1) landed homes, DiReka Square shop offices and Aspira LakeHomes (Phases 4, 5 and 6) landed houses.
Aspira Hills (Phase 1) offers 272 double-storey terraced homes that come in four-bedroom and three-bathroom layouts with built-ups from 1,673 to 1,987 sq. ft. and selling prices from RM576,300 to RM1.03 million.
DiReka Square, comprises of two- and three-storey shop offices at Laman DiReka in Puteri Harbour. The project comprises 67 units with built-ups from 3,077 to 10,220 sq. ft. and selling prices from RM1.477 million to RM 5.17 million.
Three phases of Aspira LakeHomes' double-storey terraced with a combined total of 147 double-storey landed homes were open for sale. The built-up areas are from 2,072 to 2,821 sq. ft. and the selling prices are from RM712,300 to RM1.129 million.
PENANG RECORDED RM411.8 MILLION IN APPROVED MANUFACTURING INVESTMENTS FROM CHINA IN 1H24
The Edge, 24/09/2024
Penang recorded approved manufacturing investments totalling RM411.8 million from China in 1H24. For the last 10 years, Penang has secured RM13.2 billion in approved manufacturing investments from China (representing 6.8% of Penang’s total foreign direct investments (FDI)) in approved manufacturing investments, with a 50.5% compound annual growth rate. China is Malaysia’s largest trading partner and a major FDI source. Last year, the country was one of Malaysia’s five largest sources of foreign investment, with a total investment of US$3.15 billion. As of current, there are 53 Chinese companies that are operating in Penang, with 46 involved in manufacturing, five in global business services and two in logistics.
On tourism, a sharp rise in Chinese visitors to Penang was recorded, where in the first eight months of 2024 the state had welcomed 74,891 Chinese tourists via Penang International Airport (PIA) and 8,391 through the Swettenham Pier Cruise Terminal (SPCT). This marked a significant increase from the same period last year, where PIA saw 21,529 arrivals of Chinese tourists and SPCT recorded 5,819 Chinese visitors.
EPB GROUP TO BUY LAND FOR RM22 MILLION
The Edge, 23/09/2024 &The Star, 24/09/2024
EPB Group Bhd is acquiring a piece of industrial land at Plot P23B, Penang Science Park North measuring 7.8424 acres from Penang Development Corp for RM22.49 million. The group intends to expand its business footprint in Penang by building a new corporate office, as well as a factory building with a warehouse and a showroom. The proposed acquisition will enable the group to expand its existing production area by building a new factory, which allows the group to enhance the production capabilities for the food processing and packaging machinery solutions.
DROP IN OVERHANG OF RESIDENTAL PENANG PROPERTIES
The Star, 23/09/2024
The number of overhang residential houses in Penang dropped to 2,400 units in 1H24 from 2,901 units in the same period a year ago. The National Property Information Centre (Napic) report estimated the overhang value to be RM2.02 billion. The completed but unsold units fell to 22,642 units and worth RM14.24 billion in 1H24, continuing the decline from 25,816 units worth RM17.68 billion in 2H23. Condominiums and apartments account for 59.8% or 13,535 units of the overhang, whilst terrace houses represent 24.4% or 5,524 units, and semi-detached and detached houses comprise 8.2% or 1,867 units. The remaining 7.6% consists of other houses. The overhang units in the high-end segment priced above RM500,000 took up the largest market share at 41.6% or 9,413 units. In contrast, the remaining properties are priced at RM300,000 and below, as well as between RM300,001 and RM500,000, representing 30.2% or 6,840 units and 28.2% or 6,389 units, respectively.
In 1H24, Penang had an existing stock of 555,549 residential properties, while the incoming and planned supply units stood at 26,733 and 18,640, respectively.
Penang ranks fourth in the country with the most overhang properties, after Perak (4,161 units), Johor (3,219 units) and Kuala Lumpur (3,051 units). Condominium and apartment units in the Johor Baru District, the Northeast and Southwest districts of Penang and Section 1-100 in Kuala Lumpur dominated the overhang units, accounting for 18.9% or 4,284 units of the national total.
RUMAH MESRA PROGRAMME EXPANDED TO 40 UNITS PER CONSTITUENCY
The Sun, 23/09/2024
Sabah will increase the construction of Rumah Mesra Sabah Maju Jaya (SMJ) homes to 40 units for each state legislative constituency beginning next year. This initiative aims to assist the poor who cannot afford to own homes. The increase, up from 20 units per state constituency annually, will involve the construction of about 3,000 home units statewide next year as part of an effort to provide more comfortable housing assistance to those experiencing poverty.