Week 41 - 2023
UNEMPLOYMENT RATE CONTINUES DOWNWARD TREND
The Sun, 07/10/2023
The country’s unemployment rate continues to show a falling trend, with 3.5% recorded in 1Q23 compared to 3.6% in 4Q22 due to a significant shift in job-seeking trends, especially among the youth. At the same time, there were various initiatives being implemented by the government to assist job seekers aged 40 and above. There is indeed a changing trend in job search, especially after Covid-19, as many people lost their jobs and then sought employment opportunities that match their interests and skills.
NS ON TRACK TO ACHIEVE RM5 BILLION INVESTMENTS
The Sun, 13/10/2023
Negeri Sembilan (NS) is likely to achieve total investments amounting to RM5 billion through several projects in the state based on the projections of Invest NS as of September 2023. The projects currently in negotiation with the Malaysian Investment Development Authority (MIDA) to be registered as new investments include the Fraser & Neave Holdings Bhd (F&N) dairy project in Gemas and a data centre project, each of which amounts to RM1 billion. The state government constantly promotes investment opportunities at the international level through various methods and platforms, including distributing Invest NS leaflets to MIDA offices abroad as well as investment promotion missions held at international expositions. Currently, 89 projects were approved from January to June 2023 with an investment value of RM1.5 billion. The renewable energy sector is also a targeted sector in Negeri Sembilan’s industrial development. The state government, through Invest NS, intends to establish a Corporate Green Power Programme (CGPP) in collaboration with the private sector to help investors in the state reduce carbon footprint and comply with the environmental, social and governance standards for the export market. The proposed CGPP site is in Bahau, on 200 acres, for the development of a solar power plant.
MYAIRLINE SUSPENDS OPERATIONS EFFECTIVE TODAY UNTIL FURTHER NOTICE
The Sun, The Edge, The Star & NST, 13/10/2023
MYAirline Sdn Bhd has suspended its operations effective 12th October 2023 until further notice due to significant financial pressures. MYAirline noted that it would be committed to assisting those impacted through the situation and advise the affected passengers to not head to the airport and seek for alternative travel arrangements to their destinations. MYAirline also said the board, shareholders and MYAirline will work tirelessly to resume operations as quickly as possible but at this stage, the airline is unable to commit to any timeline.
FIREFLY TO START PENANG-BANGKOK FLIGHTS FROM NOV 3
The Edge, 10/10/2023
FlyFirefly Sdn Bhd (Firefly), the low-cost arm of Malaysia Aviation Group Bhd (MAG), is set to expand its connectivity from its Penang hub with the introduction of direct flights to Bangkok via the Don Mueang International Airport beginning 3rd November 2023. The flights from Penang to Bangkok will mark Firefly’s second point into Thailand following the launch of direct flights to Phuket in 2022. In conjunction with the launch, the airline is introducing special introductory fares starting from RM159 one-way via the airline’s Saver fare, which comes with a 10kg check-in baggage allowance and 7kg cabin baggage allowance. The promotion is available from now until 22nd October 2023, for travel beginning 3rd Nov 2023 to 30th March 2024.
MALAYSIA’S AIR PASSENGER TRAFFIC UP 72% AS OF SEPTEMBER 2023
The Edge, 12/10/2023
Air passenger traffic in Malaysia recorded an increase of 71.7% in the first nine months of the year compared to the same period in 2022. From January to September 2023, 62.83 million air passengers were recorded and, for September 2023 alone, a total of 7.17 million air passengers were recorded, of which 3.3 million were international passengers and 3.85 million domestic passengers.
SUNGAI SEPANG BRIDGE CONSTRUCTION TO START IN 2024
The Edge & The Sun, 12/10/2023
The construction of a bridge across Sungai Sepang to link Bukit Pelandok, in Port Dickson, and Sungai Pelek, Sepang, Selangor, is expected to begin in 2024. Currently, the state government is in the process of acquiring the site for the project, as well as approval from the Selangor government as it also involves land acquisition in Selangor.
WASCO SELLS LAND IN KLANG FOR RM40 MILLION
The Edge, 13/10/2023
Wasco Bhd (formerly known as Wah Seong Corporation Bhd)’s indirect wholly owned subsidiary, Wasco AgroTech Sdn Bhd, has disposed of a piece of freehold land in Klang, Selangor for RM40 million. The group has entered into a sale and purchase agreement with Array Metal (M) Sdn Bhd for the proposed disposal. Array Metal is principally engaged in the manufacturing of cable support system, perforated steel material and flexistrut channel metal framing. The rationale for the disposal of property is to realize the value of the land and strengthen the group’s liquidity and financial position. The group intends to use most of the proceeds for its working capital and debt repayment.
HANA RESIDENCES SALES RATE REACHES 88%
The Sun, 12/10/2023
Tropicana Corporation Bhd’s final signature villa series, Hana Residences in Kota Kemuning, has recorded an 88% sales rate. Located within the 863-acre township Tropicana Aman, the launch showcased units with sizes and built-ups of up to 60’ x 100’ and 5,745 sq. ft. respectively. The township is also in close proximity to major routes such as the Elite, SKVE, Kesas and LKSA expressways.
TSR WINS RM104 MILLION JOB FROM KWASA
The Star, 12/10/2023
TSR Capital Bhd’s wholly owned subsidiary TSR Bina Sdn Bhd has accepted a letter of award valued at RM104 million from Kwasa Land Sdn Bhd for the proposed construction of common infrastructure works at the Kwasa Damansara township development in Sungai Buloh, Selangor. The scope of the project includes the execution and completion of site clearance and demolition, earthworks as well as mechanical and electrical infrastructure works. The contract is for a duration of 30 months and is expected to be completed by April 2026.
FINAL RESIDENTIAL TOWER OF 168 PARK SELAYANG OFFICIALLY LAUNCHED
The Edge, 07/10/2023
168 Park Selayang Sdn Bhd, a subsidiary of Infra Segi Sdn Bhd, has officially launched the last residential tower, Bole Residence, or Block B. Bole Residence is a 49-storey tower comprising 956 units with three types of layout: Type K (674 sq. ft.), Type L (774 sq. ft.) and Type M (1,074 sq. ft.), with the price starting from RM397,000. The tower is expected to be completed by 2026. Units at Bole Residence will feature an in-built smart home system with smart switches and smart locks that can be controlled from a phone application. The targeted buyers for Bole Residence are first-time homebuyers and young couples, due to its affordable price. The community mall at 168 Park Selayang is expected to open to the public by 3Q24. Block A has achieved 80% sales rate, while Block C is fully sold. The developer expects to hand over Block C by 2Q24 and Block A by early-2025.
AVALAND LINES UP THREE NEW RESIDENTIAL LAUNCHES IN 2024
The Sun, 12/10/2023
Avaland Bhd aims to launch three new residential projects in 2024 on the back of healthy take-up rates of its projects in 2023. The first launch will be Aetas Seputeh, which is expected to be launched in 1Q24, followed by Aetas Taman Desa which is expected to be launched in 4Q24. The third launch will be Anja Bangi project, with its retail or commercial component (shops and offices) will be offered to the market in November 2023, while the residential property (serviced apartment) is anticipated to be made available by 1Q24. As of June 2023, the group’s ongoing projects registered a healthy sales rate: Aetas Damansara (90%), Sanderling (50%) and Casa Bayu (54%), as well as Alira Subang Jaya with phase 1 at 89% and phase 2 at 66%.
MRCB TO SELL MENARA CELCOMDIGI FOR RM450 MILLION
The Edge & The Sun, 11/10/2023
MRCB is proposing to sell Menara CelcomDigi to Sentral REIT for RM450 million in cash and to subscribe to new units in the REIT. MRCB’s wholly owned subsidiary Puncak Wangi Sdn Bhd is proposing to dispose of the office tower to Maybank Trustee Bhd, the trustee for Sentral Reit, an associate company of MRCB.
ALLIANCE BANK TO RELOCATE HEADQUARTERS TO OXLEY’S 24-STOREY TOWER IN RM405.84 MILLION DEAL
The Edge 11/10/2023
Alliance Bank Malaysia Bhd is acquiring a 24-floor office suite in Jalan Ampang which is developed by Oxley Rising Sdn Bhd for RM405.84 million. The office suites with a floor area of 315,711 sq. ft. is within Tower 3 of Oxley’s multi-billion-ringgit development in Jalan Ampang. Besides the office suites Alliance Bank is also buying four adjoining retail lots consisting of two duplex units located on the ground and first floors, and two units on the ground floor of the two-storey retail podium (measuring a total floor area of 9,569 sq. ft.). Currently, the registered corporate head office for Alliance Bank is in Menara Multi-Purpose, Capital Square, Jalan Munshi Abdullah, Kuala Lumpur. The strategic location of Tower 3 at the commercial centre of KLCC and a dedicated building name of the bank will improve the visibility and branding of the group. The properties are earmarked as a green-certified building and this will form part of the bank’s sustainability journey to be a more sustainable and resilient organisation.
APB RESOURCES TO ACQUIRE SERBA DINAMIK OFFICE BUILDING IN SHAH ALAM FOR RM38 MILLION
The Edge, 12/10/2023
APB Resources Bhd has proposed to acquire a 16-storey Serba Dinamik office building in Shah Alam, Selangor for RM38 million, subject to the approval from the High Court.
PHASE 1 OF PAVILION DAMANSARA HEIGHTS MALL OPENS ITS DOORS WITH 80% OCCUPANCY
The Sun & The Star, 12/10/2023
Phase 1 of Pavilion Damansara Heights Mall opened its doors to the public on 9th October 2023 with an occupancy rate of 80%. As part of the larger Pavilion Damansara Heights integrated development, phase 1 of the six-storey mall has a net lettable area (NLA) of 533,361 sq. ft. The phase 2, which is expected to open to the public by 4Q24, has an NLA of 529,353 sq. ft. Phase 1 will introduce a curated selection of specialty stores, diverse dining experiences, and lifestyle services, and is expected to have 100 outlets by the end of October 2023. Highlighting that 80% of the mall’s lettable space was committed in phase one. The eight blocks of corporate office towers (namely Towers 2 to 9) were successfully handed over in 3Q23. Meanwhile, the remaining one block of corporate office (namely Tower 1) and the residential towers will be handed over soon. Pavilion Damansara Heights is a freehold development integrating corporate towers, luxury residences and a retail mall, and is a joint venture between Pavilion Group and the Canada Pension Plan Investment Board (CPPIB), a professional investment management organisation that manages the Canada Pension Plan fund and is one of the world’s largest institutional investors. This represents CPPIB’s first direct real estate investment in Malaysia.
THE FOOD MERCHANT PRELUDE TO BE UNVEILED AT PAVILION DAMANSARA HEIGHTS
The Edge 08/10/2023
The Food Merchant will be unveiling its sixth outlet with a first-ever concept store, The Food Merchant Prelude, exclusively at Pavilion Damansara Heights on 10th October 2023. As an anchor tenant at Pavilion Damansara Heights, The Food Merchant Prelude features “a grab-and-go concept” which curates premium grocery shopping. The Food Merchant is “the brainchild of the founders responsible for the success of the Village Grocer chain with more than 30 stores nationwide”. The Food Merchant opened its doors in December 2021, with the launch of the Pavilion Bukit Jalil outlet followed by stores located across the Klang Valley at Pavilion Embassy, W City OUG, Datum Jelatek and Duta North.
WHOLESALE, RETAIL TRADE SALES CLIMB TO RM142.5 BILLION IN AUGUST 2023
The Edge & The Sun, 13/10/2023
Malaysia’s wholesale and retail trade recorded sales value of RM142.5 billion in August 2023, up 6.7% compared with August 2022. On a month-on-month comparison, the sales value grew 2%. The increase of 6.7% year-on-year for wholesale and retail trade in August 2023 was attributed to the wholesale trade sub-sector, which rose 6.2% or RM3.7 billion to RM63.9 billion. Retail trade expanded by 6.3% or RM3.6 billion to RM60.5 billion, followed by motor vehicles with an increase of 9.7% or RM1.6 billion to RM18.1 billion. Meanwhile, the 2% or RM2.8 billion increase from the previous month was contributed by motor vehicles with an increase of RM1.2 billion or 7.1%. In the same period, retail trade recorded a growth of 1.4% or RM0.9 billion, while wholesale trade rose 1.2% or RM0.8 billion compared with the month before.
PROPEL GLOBAL TO ACQUIRE LAND IN PAHANG FOR RM14.7 MILLION FOR PROPOSED COMMERCIAL DEVELOPMENT
The Edge, 13/10/2023
Propel Global Bhd is to purchase two parcels of land in Kuala Kuantan, Pahang for RM14.7 million to undertake a commercial development project with a gross development value (GDV) of RM68 million. The construction firm’s wholly owned subsidiary Propel Global Development Sdn Bhd has signed agreements with the vendor, Goldhill Deluxe Sdn Bhd, to purchase a 155,452 sq. ft. parcel for RM13.95 million, and another 64,704 sq. ft. parcel for RM750,266, On the land, Propel Global plans to develop 34 units of three-storey shop lots. The proposed development is expected to commence construction in October 2024 and the expected completion date is September 2026.
DUTCH LADY TO DOUBLE PRODUCTION AT NEW MANUFACTURING FACILITY
The Sun & The Edge, 09/10/2023
Dutch Lady Milk Industries Bhd (DLMI) plans to double production next year after shifting to its new RM540 million facility in Bandar Enstek. The facility sits on 32 acres and production is scheduled to commence in mid-2024. The new manufacturing hub will house a distribution centre, enabling DLMI to operate an end-to-end production cycle. It will also have a research and development (R&D) centre to enable the dairy company to create and innovate products with export potential.
LKL INTERNATIONAL SELLS LAND IN SERDANG FOR RM6.65 MILLION
The Edge 11/10/2023
LKL International Bhd is selling a parcel of land in Serdang, Selangor for RM6.65 million. The company had initially completed the purchase of the freehold land, together with a three-storey semi-detached factory in December 2022 for RM5.98 million. LKL’s wholly owned subsidiary, LKL Advance Metaltech Sdn Bhd has entered into a Sale and Purchase Agreement (SPA) with JLL Electrical Sdn Bhd for the proposed disposal. Proceeds from the proposed land disposal will be utilised for working capital and/or potential investment within 12 months from the completion of the proposed disposal in 1Q24.
PTT SYNERGY BUYS LAND IN PENANG FOR RM70.56 MILLION
The Sun & The Edge, 12/10/2023
PTT Synergy Group Bhd has entered into a sale and purchase agreement to acquire two parcels of freehold development land for RM70.56 million via its indirect wholly owned subsidiary Projek Tetap Teguh Sdn Bhd. The 18 acres land is located in Seberang Perai Selatan, Penang.
KERJAYA PROSPEK GETS RM226 MILLION JOB
The Edge & The Star 11/10/2023
Kerjaya Prospek Group Bhd has accepted a letter of award worth RM226 million from Aspen Vision City Sdn Bhd for design and build contract works for a proposed development project at Plot 22 & 23, part of lot 282, Mukim 13, in Seberang Perai Selatan, Penang. The contract is for two blocks of apartments comprising 37-storeys each, housing a total 980 units of residential units and a seven-storey podium consisting of car parks, community recreational facilities and shop lots. The contract shall commence on 27th October 2023 and to be completed within 42 months.
PROGRESS OF JB-SINGAPORE RTS LINK CONSTRUCTION AT 52%
The Edge, 12/10/2023
Construction of the Johor Bahru-Singapore Rapid Transit System (RTS) Link is progressing well and is now 52% on schedule. The project is now entering its peak phase and comprehensive construction activities will reach maximum level by June 2024. The four-kilometre RTS Link will cross the Straits of Johor, linking the Bukit Chagar Station in Johor Bharu to the RTS Link Woodlands North Station in Singapore and is scheduled for completion in December 2026.
Construction work on the Immigration, Custom and Quarantine (ICQ) complex, which houses the Customs and Immigration Department, is on schedule and will be fully completed by September 2026 with operations expected to begin in December 2026.
TWO MORE INDUSTRIAL PARKS TO BE DEVELOPED IN SABAH TO FURTHER BOOST THE ECONOMY
The Edge, 10/10/2023
Sabah will see the development of two new industrial parks in an effort to further stimulate the state’s economic growth and industries in line with the current state government’s investor-friendly approach. One of the parks will be developed in Kimanis for the oil and gas industry while the other, to be located in the Kota Marudu-Kota Belud area, will be a general industrial park. The move follows the two existing industrial parks, the Sipitang Oil and Gas Industrial Park and Kota Kinabalu Industrial Park which almost reaching full occupation. The effort is also in line with the commitment of the state government to further boost the development in Sabah as well as enhancing the people’s quality of life by implementing programmes and initiatives covering various growth sectors.
PAN BORNEO HIGHWAY WILL BE COMPLETED AS PROMISED
The Edge, 10/10/2023
The Works Ministry will remain committed to completing the Pan Borneo Highway project as soon as possible with the quality standards and budget previously agreed upon. Phase 1 of the project in Sarawak will be completed in 2025, except for Miri, and then open the phase connecting to Brunei. Phase 1A of the project in Sabah is now 85% complete and is expected to be completed in 2025, while Phase 1B will commence after the tender is finalised, and it is expected to take five years to complete. The Sabah Pan Borneo Highway project, involving 35 work packages along 706 kilometres starting from the border of Sabah and Sarawak in Sindumin up to Tawau, started in July 2016. As for phases two and three of the project in Sabah and Sarawak, the Work Ministry is expected to take longer due to the topographical differences between the two states, which could necessitate different construction techniques and higher allocations.