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20
In The News

Week 42 - 2023

BUDGET 2024 HIGHLIGHTS

The Star, 13/10/2023

The Budget 2024 was introduced with the theme, “Economic Reform, Empowering People”. Budget 2024 is the largest in Malaysia’s history, with an allocation of RM393.8 billion. Of this, RM303.8 billion is for operating expenditure (opex) and RM90 billion is for development expenditure. The most relevant highlights (selected) are provided below:

Housing

  • The government proposed a stamp duty of RM10 instead of the ad-valorem rate for real estate transfer documents involving a beneficiary giving up his/her rights to an eligible beneficiary, according to a will or faraid (Islamic law concept that determines the distribution of a deceased’s property to his or her heirs) or the Distribution Act 1958.
  • To facilitate the redevelopment of strata schemes, the threshold for residents agreement for en-bloc sales will be reduced from 100% to a consistent level based on international practice, such as in Singapore, to encourage urban renewal and promote the redevelopment of old buildings in the city.
  • Stamp duty at a flat rate of 4% imposed on transfer of ownership of real estate by non-citizen individuals and foreign-owned companies (except permanent residents in Malaysia) aimed at controlling the price of real estate.
  • Housing Credit Guarantee Scheme to be expanded by up to RM10 billion, benefiting 40,000 borrowers.
    A total of RM2.47 billion allocated for the implementation of people’s housing projects in 2024.
    A special guarantee fund of RM1 billion has been allocated to encourage reputable developers to revive identified stalled projects.

Sabah & Sarawak

  • Development allocation to Sabah and Sarawak increased, with Sabah getting RM6.6 billion (previously RM6.5 billion) and Sarawak getting RM5.8 billion (previously RM5.6 billion).
  • For more effective implementation, the federal government has given the authority to implement development projects below RM50 million to Sabah and Sarawak’s technical agencies.
  • Interim Special Grants’ rate for Sabah and Sarawak increased to RM300 million, from RM16 million for Sarawak, and from RM125.6 million for Sabah.
  • Transfer of regulatory powers for Sabah’s electricity supply to the state government to take effect on 3 January 2024.
  • In view of electricity supply disruptions, the federal government will support the generation of hybrid solar energy and the construction of an electricity transmission line network in south Sabah.
  • Putrajaya negotiating with Sarawak to realise the handover of Bintulu Port and rural air service operation to the state government.

Revenue

  • Service tax will increase to 8% from the current 6%, and will expand to logistics, brokerages, underwriting and karaoke services. This increase will not cover services such as food & beverages (F&B) and telecommunications.
  • Capital gains tax will be at 10% on net profit derived from the disposal of local companies’ unlisted shares, starting from 1 March 2024, with exemption for IPOs, internal restructuring and venture capital companies.
  • A new legislation will be enacted to implement the high value goods tax (luxury goods tax) at 5%-10%, which will be imposed on certain high value goods, such as jewellery and watches, based on the threshold value of the goods. This is exempted for foreign tourists.
  • Government to impose excise duty on chewing tobacco products at a rate of 5% and RM27 per kg.
  • Government plans to implement a global minimum tax for companies with global revenue of at least €750 million (RM3.74 billion) in 2025.
  • The IRB will implement mandatory e-invoicing on taxpayers with annual income exceeding RM100 million from 1 August 2023. The same will be enforced on other income categories in phases, with full implementation by 1 July 2025.

Subsidy Rationalisation

  • Targeted subsidy to be implemented in phases next year: Part of the savings to be used to increase cash handouts, given through the Rahmah Cash Contribution, from RM8 billion to RM10 billion.
  • Ceiling prices on chicken and eggs will be removed, allowing prices to float.
  • The implementation of targeted subsidies for electricity consumption that started this year — where the top 10% of electricity consumers are no longer being subsidised — saved the government over RM4.6 billion from the projected RM20 billion electricity subsidy bill.
  • The government will continue to give monthly electricity bill rebates of RM40 to severely poor households with an allocation of RM55 million. Deposits for individual accounts to be exempted.
  • Diesel subsidies to be rationalised, targeting specific users only, such as freight operators.

EPF, Tax exemptions, Second Chance Policy

  • Government to continue to encourage women to return to work, with tax incentives for this group to be extended until 31 December 2027.
  • Income tax exemption limit on childcare allowances (received by employees or paid directly by employers to childcare centres) to be raised to RM3,000, from RM2,400.
  • To encourage upskilling and venturing into new fields, the tax relief of up to RM2,000 for participation in self-improvement courses will be extended till 2026.
  • Tax relief of RM1,000 for purchase of sports equipment and activities. The relief will also be expanded to include fees paid for sports training.
  • Government will also expand the scope for lifestyle relief to cover fees for personal development courses, such as language, photography, sewing and et cetera.
  • Discounts announced for PTPTN loan repayments starting from 14 October 2023 until end-March 2024 — 10% discount on outstanding debt for full loan settlement, 10% discount for payment of at least 50% of the remaining debt in one payment, and 15% discount for payment by salary deduction.
  • The Second Chance Policy, Insolvency (Amendment) Act 2023 will be expanded to include young people aged 40 and below next year, with debt of not more than RM200,000.
  • Government will increase monthly wage ceiling for Socso contribution from RM5,000 to RM6,000.

Businesses

  • Government to provide an allocation of up to 10% of the total New Industrial Master Plan (NIMP) 2030 investment (RM95 billion) to drive the NIMP mission, with an initial fund of RM200 million in 2024.
  • Government to propose Pengerang Integrated Petroleum Complex (PIPC) as development hub of chemical and petrochemical sector, to give tax incentive in the form of a special tax rate or investment tax allowance.
  • To encourage companies to invest in high-growth and high-value areas (HGHV), the government plans to provide a tiered reinvestment tax incentive in the form of an investment tax allowance of 70% to 100%.
  • To build a wider ecosystem for the electrical and electronics (E&E) cluster in the northern region, the government will open a high-tech industrial area in Kerian, in northern Perak.
  • Government to allocate RM28 million to develop the MYStartup platform for start-up companies.
  • Government-linked companies and government-linked investment companies (GLCs and GLICs) to provide funds of up to RM1.5 billion to encourage startups, including small and medium enterprises (SMEs) entrepreneurs, to venture into HGHV fields.
  • Via Bank Negara Malaysia (BNM), Bank Simpanan Nasional (BSN) and National Entrepreneurial Group Economic Fund (Tekun), financial facilities amounting to RM2.4 billion to be made available to micro, small and medium enterprises (MSMEs).
  • Government announces RM100 million in digitalisation grants — RM5,000 to 20,000 MSMEs — to fund upgrades of sales, inventory and digital accounting systems. Under BNM, RM900 million in loan funds will be made available to SMEs for automation and digitalisation.
  • RM44 billion worth of loans and financing guarantees will be made available next year for the benefit of MSMEs.
  • Micro lender Amanah Ikhtiar Malaysia (AIM) to be provided with a funding allocation of RM100 million for the provision of small business capital. Its non-performing loan rate stood at 0.26% in 2022.
  • To increase franchise trade, the government will provide RM10 million under “Program Pengukuhan Francais” to increase exports.
  • Government to exempt income tax on income arising from Islamic Securities Selling and Buying (ISSB) from Assessment Year 2024.
  • Government to exempt income tax in full for five years for Labuan entities that carry out trading activities related to Islamic finance.

Enhancing Capacity

  • Government has set aside RM6.8 billion for technical and vocational education and training (TVET), with RM100 million allocated to provide industry-recognised professional certification to TVET graduates, and as incentive for industries to collaborate with public TVET institutions.
  • HRD Corp will utilise RM1.6 billion to provide 1.7 million training exercises in 2024. To reallocate 15% of total levy collection to implement the Madani Training Programme — a training programme for MSMEs and vulnerable groups.

Tourism & Creative Sector

  • Visit Malaysia Year is set at 2026, targeting the arrival of 26.1 million foreign tourists and an estimated domestic spending of RM97.6 billion.
  • Government to set aside RM350 million to boost tourism promotion and activities in Malaysia.
  • Entertainment duty for federal territories reduced from 25% to full exemption for stage performances by local artists, 5% for theme parks, family recreation centres, indoor game centres and simulators, and 10% for stage performances by international artists.
  • Government to introduce new initiatives under the Malaysia Visa Liberalisation Plan to facilitate:
  • Approval of employment passes for strategic investors in key sectors
  • Introduction of Long-term Social Visit Pass for international students who have graduated, to meet the needs of the Industry’s skilled workforce, and
  • Improvement of the visa-on-arrival, social visit pass and multiple-entry visa facilities to encourage the influx of tourists and investors, especially from India and China.
  • Government to relax conditions of Malaysia My Second Home (MM2H) application to increase the arrival of foreign tourists and investors to Malaysia.
  • Special income tax of 0%-10% planned for film production companies, foreign film actors and crew who shoot films in Malaysia.

Infrastructure / Public Projects

  • Government to allocate RM100 million for New Chinese Village for basic and social infrastructure.
  • Global Services Hub tax incentive to be introduced, with an income tax rate incentive of 5% or 10%, to be determined based on results for a period of up to 10 years.
  • Under the unity administration, the government has taken over the development of Bandar Malaysia to ensure strategic lands are best used for people’s projects based on the Madani values. This includes affordable housing projects for veterans, taking into account the interests of Bumiputeras in the federal territories, as well the provision of parks and green spaces that can be used by all Klang Valley residents.
  • Tender process for 19 work packages for the Sabah Pan Borneo project (Phase 1B) involving RM15.7 billion to be completed by November 2023.
  • Sarawak Pan Borneo Highway to be completed in 2024.
  • Implementation of Sarawak-Sabah Link Road project Phase 2 involving RM7.4 billion to start in end 2023.
  • North South Highway (PLUS) from Sedenak to Simpang Renggam to be widened to six lanes, at cost of RM931 million.
  • Government to resume the proposed construction of five Light Rail Transit 3 (LRT3) stations that were cancelled previously, namely the Tropicana, Raja Muda, Temasya, Bukit Raja and Bandar Botanik stations, for RM4.7 billion. Retaining these stations is expected to complement and improve the public transport network in Klang Valley, which could benefit two million residents.
  • A total of RM1.1 billion allocated to resolve water supply issues, particularly in Kelantan, Sabah and Labuan.
  • The implementation of 33 high-priority flood mitigation projects will begin next year, involving a total cost of RM11.8 billion.
  • Government announces a joint matching grant of RM50 million with Klang Port Authority to maintain Port Klang roads to bear load limits of heavy vehicles, and another joint matching grant of RM20 million to upgrade the Malaysian Maritime Single Window (MMSW) system.
  • An allocation of RM47 million to improve passenger facilities at Tioman airport and extend existing runway to 1,300 metres.
  • Pelaburan Hartanah Bhd will be parked under Permodalan Nasional Bhd (PNB) and strengthened by the injection of government strategic land in KL for housing projects.

Green Agenda

  • Government to continue tax exemption for fund management companies managing sustainable and responsible investment (SRI) funds, and tax deductions on SRI sukuk issuance costs until assessment year 2027.
  • Finance Ministry, Inland Revenue Board (IRB) and Petronas (Petroliam Nasional Bhd) studying tax incentives for carbon capture and storage (CCS) and hydrogen sulphide projects, expected to be finalised by year end.
  • Additional tax deduction of up to RM300,000 proposed for companies that spend on measurement reporting and verification (MRV) related to the development of carbon projects. These expenses can be deducted from the sale of carbon credit traded on Bursa Carbon Exchange (BCX).
  • Government to provide up to RM2,400 rebate for the purchase of electric bikes to buyers with an annual income of below RM120,000, under its Electric Motorcycle Use Promotion Scheme.
  • Government to extend up to RM2,500 income tax relief for electric vehicle (EV) charging facility expenses for a period of four years, and tax deduction for EV rental cost for two years.
  • Putrajaya to serve as Malaysia’s low carbon city model, with government buildings set to have solar panels installed in partnership with Tenaga Nasional Bhd (TNB) and Gentari.
  • It also plans to adopt EVs as official vehicles, as TNB, Gentari and Tesla invest over RM170 million to establish EV charging stations.
  • Prasarana to acquire 150 electric buses and build three bus depots at a cost of RM600 million.

 


MITI OPTIMISTIC 2024 WILL BE A STRONGER YEAR FOR FDIS INTO MALAYSIA

The Star, 16/10/2023

The Ministry of Investment, Trade and Industry (MITI) is optimistic that 2024 will be a stronger year for foreign direct investments (FDIs) into Malaysia. As of the first six months of this year, Malaysia registered a total of RM132.6 billion investment, around 60 per cent of the nation’s investment target for this year.

 

 

984 PROPOSED PROJECTS WORTH RM105.3 BILLION AT NEGOTIATION STAGE

The Star, 16/10/2023

A total of 984 proposed projects, involving estimated investments of RM105.3 billion, were under negotiation supervised by the Malaysian Investment Development Authority (MIDA) as of 31 August 2023. Foreign direct investments made up 85% of the total while the remaining 15% was direct domestic investments. This includes 53 proposed manufacturing projects with investments worth RM73.6 billion (70%) and 931 proposed projects in the services sector involving RM31.7 billion (30%) in investments.

 

 

SCIENTEX AIMING TO EXPAND PROPERTY FOOTPRINT

The Star, 16/10/2023

Scientex Bhd aims to acquire more land in high-potential regions across Peninsular Malaysia with substantial demand for affordable homes. Scientex has an extensive lineup of new affordable home developments planned for the current financial year ending 31 July 2024 (FY24). These projects span seven different states, covering existing townships, including the latest phase of Pulai township, as well as new locations in Cheras and Jenjarom in Selangor and Ipoh in Perak. Additionally, ongoing new land acquisitions in Kulai and Tebrau, Johor, are expected to commence development activities in mid-2024, with launches targeted for FY25.

 

 

PMB TECHNOLOGY SELLS KLANG LAND FOR RM36.59 MILLION

The Edge & The Star, 16/10/2023

PMB Technology Bhd has proposed to dispose of a piece of leasehold land in Klang in a non-related party transaction to an individual named Ong Saut Mee. The company has proposed to dispose of the 14 acre piece of land, where the lease will expire on 30 March 2097, for RM36.59 million. With an original cost of investment of RM4.88 million, the proposed disposal is expected to generate an estimated one-off gain of RM25.75 million to the group after taking into account the estimated expenses of RM3.51 million in relation to this transaction.

 

 

AME REIT ACQUIRES THIRD INDUSTRIAL PROPERTY IN ISKANDAR MALAYSIA FOR RM26.5 MILLION

The Edge & The Star, 16/10/2023

AME Real Estate Investment Trust (AME REIT) has completed the acquisition of the third industrial property of Plot 16 at i-Park @ Indahpura (Plot 16 Indahpura) in Iskandar Malaysia from its sponsor, AME Elite Consortium Bhd for RM26.5 million. The completion of Plot 16 Indahpura’s acquisition was ahead of the earlier estimated timeline of 1Q24, following the construction completion by the sponsor, the issuance of the Certificate of Completion and Compliance (CCC) by regulatory authorities, and the rental commencement of the lease. The 98,249 sq. ft. property has been fully leased to HQPack Sdn Bhd, its sixth facility in i-Park @ Indahpura, for a 10-year term with an option to renew for a further three years. The acquisitions of the first 2 industrial properties – Plot 15 at i-Park @ Indahpura and Plot 43 at i-Park @ Senai Airport City – were completed on 24 March 2023. Altogether, AME REIT’s properties under management have risen to RM668.0 million, consisting of 34 industrial properties with an agreed lettable area of approximately 1.9 million sq. ft. and three industrial-related properties of workers’ dormitories.

 

 

PERAK SEEKS 1,000 ACRES SITE FOR ITS NEW HIGH-TECH INDUSTRIAL PARK

NST, 16/10/2023

The Perak government is looking for another suitable location for a new high-technology industrial park in the northwestern region, which could be as large as 1,000 acres, or 10 times what the state had allocated prior to the 2024 Budget. Parit Buntar or Bagan Serai could be the new location as there are already some small industrial areas there. The state government had identified a 99-acre plot of land for the industrial park development in Kerian. The chosen location must be close to Penang Port and the airport. The new high-tech park will complement the industrial park in Seberang Perai as well as the Kulim High Tech Park. Kerian lies next to the southern district of mainland Penang, with the main towns of Parit Buntar and Nibong Tebal within a 10-minute drive from each other. There are two bridges leading to Penang Island; the second bridge is closer to Kerian and also to the airport.

 

 

MAH SING’S M MINORI AND M SENYUM SEE POSITIVE TAKE-UP OVER WEEKEND LAUNCH

The Edge, 16/10/2023 & The Sun, 19/10/2023

Mah Sing Group Bhd’s M Minori serviced apartment development in Johor Bahru saw all 252 non-Bumiputera units in its Tower A taken-up over the project’s weekend launch on 14 and 15 October 2023. Located in Taman Seri Austin, M Minori is a RM519 million mixed development comprising a total of 1,526 residential units over three blocks. The project offers one-bedroom, 1+1-bedroom, two-bedroom and three-bedroom units with built-ups of 570 sq. ft. to 880 sq. ft. at a starting price of RM288,000. The development also features two retail lots to accommodate drive-through F&B outlets. Its residents will get to enjoy exclusive shuttle bus service to the CIQ and the upcoming RTS station. M Minori has obtained GreenRE Bronze certification. The developer received positive feedback from younger homebuyers who were impressed by the Japanese Wabi-sabi inspired show units and the affordable pricing below RM500,000. This development has also been meticulously designed to provide homebuyers with a space where they can embrace work-life balance. Therefore, the incorporation of the ikigai living concept and the extensive 2.8-acre facility deck is aligned with the preferences of the new generation, making them among M Minori’s unique selling points.

The developer also launched Phase 3A of its M Senyum landed development in Bandar Salak Tinggi, Selangor with a sales rate of 90%. The project offers homes with four bedrooms, three bathrooms with built-up from 1,555 sq. ft. to 1,624 sq. ft. Phase 3B comprising 195 units priced from RM499,000 is now open for registration.

 

 

REDEFINING LUXURY LIVING IN DAMANSARA HEIGHTS

The Edge 16/10/2023

The Peak is Eastern & Oriental Bhd’s (E&O) latest residential offering in Damansara Heights, Kuala Lumpur which is situated 130m above sea level, on the highest point of Damansara Heights. A joint venture between E&O and Mitsui Fudosan Group, the low-rise condominium is slated for completion by 4Q25. The development is on 3.9 acres and comprises only 54 condominium units within 18 three-storey blocks. Boasting spacious built-up ranging from 3,455 sq. ft. to 4,500 sq. ft., the units will come with 4+1 bedrooms and en suite bathrooms while the larger units will come with an additional study area. The maintenance fee, inclusive of the sinking fund, is approximately RM0.55 per q. ft. Kitchen fittings will include a Binova-designed dry kitchen; a Miele induction hob, dishwasher, steamer and microwave combi; a Bosch fridge, gas burner and oven; and a Fisher & Paykel main fridge. Bathrooms will be adorned with Hansgrohe, Villeroy & Boch, Toto and Kasch fittings, while Guzzini & Fontana wardrobes will be the features of the master bedroom. The buyer profiles are predominantly owner-occupiers which vary from young families to retirees.

 

 

AMBANK AND AVALAND TIE UP FOR RM130M GREEN FINANCING FOR ALORA RESIDENCES

The Edge 16/10/2023

AmBank inked green financing facilities worth RM129.8 million with Avaland Bhd for Alora Residences, the first phase of its green-inspired master plan 2Fifth Avenue in Subang Jaya, Selangor. The GreenRE Gold-certified Alora Residences is a serviced apartment development. Featuring 770 units with built-ups of 923 sq. ft. to 1,457 sq. ft., and priced from RM693,800, the project has a gross development value (GDV) of RM552 million. Alora Residences is part of 13 acres 2Fifth Avenue mixed development, which comprises serviced apartments, retail and office components. Some of the green features of Alora Residences include natural ventilation in 89% of the common areas, 100% use of efficient sanitary wares and fittings for all units and common areas, and a minimum of 20% green cement use in construction.  The first tower of Alora Residences had achieved a 56% take-up rate since its official launch at end-August. The second tower of the development is expected to be opened for sale in 1Q24.

 

 

SIME DARBY PROPERTY’S TRiARA RESIDENCES NOTCH POSITIVE TAKE-UP RATE

The Edge, 17/10/2023

The first phase of Sime Darby Property Bhd’s final high-rise residential development in Ara Damansara — TRiARA Residences has sold 216 out of 304 units launched on 23 September 2023. This amounts to RM225.9 million in bookings. The 5.6 acre development comprises three blocks with a total of 450 units in two phases with built-ups ranging from 1,216 sq. ft. to 1,808 sq. ft. Prices start from RM850,000. The developer has obtained GreenRE Gold Rating (Provisional) certification, which will give purchasers access to green financing offered by various banks. TRiARA Residences is located near facilities such as CITTA Mall, Paradigm Mall, Ara Damansara Medical Centre, and Lotus’s Hypermarket. It is accessible via the Damansara-Puchong Expressway (LDP), New Klang Valley Expressway (NKVE), Federal Highway, as well as the Ara Damansara and Lembah Subang LRT station. The Subang Skypark Terminal is also located close by.

 

 

TA SECURITIES KEEPS ‘BUY’ CALL ON AEON ON SUBDUED 2H RESULTS, STORE EXPANSION, ARRIVAL OF SINGAPOREAN TOURISTS

The Edge 16/10/2023

AEON is strategically readjusting its specialty store expansion, particularly with a focus on cultivating premium markets.   AEON currently operates 28 Aeon malls, 34 Aeon stores, eight Maxvalu stores, 62 Wellness outlets, and 43 Daiso stores. Its first Wellness store was established at the Midvalley Megamall in 2006 and has since expanded to a total of 62 outlets. AEON recently realigned its focus in Wellness, transitioning from a personal care store to a more lifestyle-oriented wellness chain, featuring an array of imported Japanese products. The company also reported substantial growth in Daiso’s foot traffic after the pandemic and has launched a new store in USJ on 10 October 2023. AEON is also in the process of identifying and securing new locations, with plans to establish an additional six to eight Daiso and Wellness stores in 2024. New specialty stores are set to debut from 2024 onwards will be strategically located in the Johor region, aiming to capture the growing Singaporean footfall in alignment with their procurement strategy focused on Japanese-centric product offerings post-Budget 2024.

 

 

GAMUDA LAND UNVEILS 12 TENANTS FOR QUAYSIDE PLAZA

The Edge, 19/10/2023

Gamuda Land signed memorandum of understanding (MOU) with 12 tenants for its upcoming Quayside Plaza in its twentyfive7 township development located in Telok Panglima Garang, Selangor. The 12 tenants are Jihun Korean Fried Chicken, My BurgerLab, BarTailor, Chinese traditional herbal jelly and tea vendor Koong Woh Tong, beauty and collagen drink company Kinohimitsu, Anytime Fitness, Regen Healthcare, children’s toy store Alilo, swimming school Optimum Train Global, drama school Blubricks, Ace Edventure, and STEM programme center Robothink. Spanning 4.23 acres, Quayside Plaza houses 10 pods and 22 double-storey shop office units with a standard built-up area of 3,186 sq. ft. The retail hub is slated for completion in April 2024. Located in Kota Kemuning, twentyfive7 is a 257-acre integrated township development with a gross development value of RM4.2 billion. It is accessible through five major highways, namely Shah Alam Expressway (KESAS), The North–South Expressway Central Link (ELITE), South Klang Valley Expressway (SKVE), Kemuning — Shah Alam Highway (LKSA), and an upcoming highway named West Coast Expressway (WCE).

 

 

HARD ROCK GENTING HIGHLANDS HOTEL TO OPEN IN KING’S PARK IN 2027

The Edge & NST, 16/10/2023

King’s Park, a 150 acre integrated mixed-use development in Genting Highlands, is set to open Asia’s largest Hard Rock hotel called Hard Rock Genting Highlands in 2027. The developer, King’s Park Development Sdn Bhd said the 45-storey Hard Rock Genting Highlands will feature 371 rooms and 630 suites, bringing the total to 1,001 rooms and suites, 2,153 sq. ft. of retail space called the “Rock Shop”, as well as a heated swimming pool, several dining options, spa and a lounge and bar. It is part of the third phase of the King’s Park development. With a gross development value of RM10 billion, King’s Park will be developed in five phases, comprising residential, commercial and entertainment components. King’s Park Development Sdn Bhd is a partnership between Yuk Tung Group and the Association for the Promotion of Higher Education in Malaysia (APHEM). The agreement for the Hard Rock Genting Highlands development has been signed by Hard Rock International and HR Resort & Residences Sdn Bhd. HR Resort & Residences is the builder and owner of Hard Rock Genting Highlands, while Hard Rock International is the operator. Besides the hotel, King’s Park will also see the development of theme parks, residential properties and medical facilities, among others. The entire development is expected to be completed in about 10 years.

 

 

CHINA’S LONGI INVESTING RM1.8 BILLION TO SET UP SOLAR PV MANUFACTURING BASE IN SERENDAH

The Edge, 17/10/2023 & The Sun, 18/10/2023

Shanghai-listed LONGi Green Energy Technology Co is setting up a solar photovoltaic (PV) manufacturing facility in Selangor, with a total of RM1.8 billion capital investment as part of its Malaysian expansion plan. This marks its first PV manufacturing base in Peninsular Malaysia. The world’s largest manufacturer of solar monocrystalline silicon wafers, cells and modules has a manufacturing base in Sama Jaya Free Industrial Zone, Sarawak its first facility outside of China which was established in 2016. The new facility in Serendah, LONGi said, is being developed on a 140 acre land. Currently, the construction of phase one is completed, and the construction of phase two is targeted to be completed by March 2024. Upon completion of both phases, the module plant is slated to have a combined production capacity of 8.8 gigawatts (GW) per annum.  Since venturing overseas in 2015 and establishing a foothold in Malaysia in 2016, LONGi has sequentially launched operations in silicon rod, wafer, cell, and module manufacturing in Kuching and Bintulu, Sarawak. To date, its investments in Malaysia have reached RM5.4 billion. LONGi also plan to set up LONGi’s Asia-Pacific headquarters in Kuala Lumpur.

 

 

JAPAN’S KOA CORP INVESTS ADDITIONAL RM1 BILLION TO EXPAND OPERATIONS IN MELAKA

The Edge, 17/10/2023

Japan-based Koa Corporation is investing an additional RM1 billion in Melaka for the Phase 2 development of its chip, microchip and electronics plant. Its unit Koa Denko (M) Sdn Bhd’s new factory on 21 acres of land in the Ayer Keroh Eco Park, when fully completed in 2025, would offer an estimated 950 job opportunities. The state government is also in the process of taking over 5,000 acres of land for a new industrial area in Melaka’s northern corridor. This is part of efforts to make Melaka an investment destination of choice as well as stimulating the state’s economy.

 

 

DHL SUPPLY CHAIN TO INVEST €350M IN SOUTHEAST ASIA, WITH BIGGEST INVESTMENT OF €131M IN MALAYSIA

The Edge & NST, 17/10/2023

DHL Supply Chain, the contract logistics arm of German multinational logistics firm Deutsche Post AG, will invest up to €350 million (RM1.74 billion) in Southeast Asia, of which Malaysia will receive the biggest investment of up to €131 million. Meanwhile, DHL Supply Chain will allocate €104 million worth of investment in Singapore, followed by the Philippines with up to €80 million, and Indonesia with €35 million. With €131 million in Malaysia, DHL Supply Chain will introduce new facilities across Malaysia, with two in Penang, one in Kuala Lumpur and another one in Johor Bahru, covering the main economic regions of the country. These new builds will add 1,216,321 sq. ft. of warehouse space to DHL Supply Chain’s existing portfolio of 2,339,000 sq. ft. in Malaysia. Part of the total investment will also be directed to the implementation of advanced automation at the upcoming Penang Logistics Hub 5 (PLH5) in Bayan Lepas, Penang. The PLH5 is scheduled to be completed in 2024. DHL Supply Chain will build its first connected control tower in Kuala Lumpur, offering standardised and centralised transport services with end-to-end visibility.

 

 

MINHO ACQUIRES LAND IN KUALA SELANGOR TO BUILD FACTORIES, WAREHOUSES

The Edge & The Star, 19/10/2023

Timber manufacturer Minho (M) Bhd said it is acquiring a 19.38 piece of freehold land in an industrial area in Kuala Selangor for RM18.41 million. The group plans to construct factories and covered warehouses on the land as part of its long-term plan to relocate some of its operations and existing tenants from its current location on Jalan Kapar. Minho’s wholly-owned subsidiary Syarikat Minho Kilning Sdn Bhd is buying the land from Kheng Joo Realty Sdn Bhd and Kin Seng Properties Sdn Bhd.

 

 

FEASIBILITY STUDY OF INDUSTRIAL LAND AT DELAPAN SBEZ IS COMPLETED

The Edge, 19/10/2023

A feasibility study to assess the viability of a freehold industrial site located at the Delapan Special Border Economic Zone (Delapan SBEZ) has been completed. The site has been selected to be developed into a hyperscale data centre park called the AREA Data Centre Campus (ADCC). Featuring a free commercial and industrial zone, the 4,400 acre Delapan SBEZ is located at the northern end of the North–South Expressway and Malaysia Federal Route 1, near the border crossing to Thailand. As part of the larger Delapan SBEZ, the 156 acre site of ADCC is located at the Delapan East Zone 1. The green data centre hub has a gross development value of RM15 billion. Earlier this year, AREA Real Estate Advisory signed a heads of agreement with Northern Gateway Sdn Bhd, the master developer of the Delapan SBEZ, to acquire and develop a 156 acre freehold industrial zone parcelled within the Delapan SBEZ exclusively for data centers.

 

 

GOVERNMENT TO ESTABLISH FIRST BANDAR PR1MA IN TELUK INTAN

The Edge, 14/10/2023

The government will establish the first Bandar PR1MA in the country near the construction site of the Universiti Pendidikan Sultan Idris (UPSI) Teluk Intan campus. The stimulus project, with an estimated gross development value of about RM800 million, will be constructed on a 142 acre land. The Bandar PR1MA will comprise approximately 1,700 newly designed People’s Housing Project (PPR) units valued at RM100 million. The construction of the Bandar PR1MA is still in the planning stage, with the groundbreaking ceremony scheduled for next year.

 

 

UAE’S DAMAC GROUP EYEING RM250M DATA CENTRE PROJECT IN CYBERJAYA

The Edge, 18/10/2023 & The Sun, 19/10/2023

DAMAC Group, a luxury real estate developer in the United Arab Emirates (UAE), is planning to establish a data centre in Malaysia with an investment value of RM250 million in Cyberjaya. The proposed size of the land is approximately 3.0 acres. Currently, DAMAC is evaluating Cyberjaya and CBD KL as options. DAMAC has also secured land in Indonesia and Thailand for the proposed data centre investment and is focusing on Malaysia for the upcoming investment.

 

 

SPECIAL FINANCIAL AND SPECIAL ECONOMIC ZONES TO CATALYSE JOHOR’S ECONOMIC GROWTH

The Edge & NST, 17/10/2023

The Johor state government is confident that the Special Financial Zone (SFZ) and Special Economic Zone (SEZ) will catalyse the state’s economic growth. There were several proposals by Forest City to create the best financial hub ecosystem such as constructing a route from the Linkedua highway directly to Forest City and creating 10,000 new jobs within 10 years. Another proposal is to ease cross-border travel by creating multiple entry visas and fast track immigration clearance lane, as well as special tax and incentive packages. There are six financial sector proposals that are being refined, namely banking and finance, capital markets, financial and innovation technology, Islamic finance, property management, and insurance and risk management. Several renowned hospitals, international schools and higher education institutions have also expressed their interest in becoming part of the SFZ eco-system in Forest City.

 

 

SUNCON’S UNIT BAGS RM193 MILLION CONTRACT TO COMPLETE DATA CENTRE IN JOHOR

The Edge, 18/10/2023

Sunway Construction Group Bhd’s (SunCon) wholly-owned subsidiary Sunway Construction Sdn Bhd has accepted the letter of initial appointment (LOIA) from K2 Strategic Infrastructure Malaysia Sdn Bhd to commence and complete the proposed development of a data centre in Johor worth RM192.88 million. The duration for the completion of the LOIA works is approximately 13 months, starting in October 2023, and is expected to be completed in November 2024.

 

 

PLENITUDE REGISTERS 50% TAKE-UP FOR HIBISCUS @ IMPIAN HILLS IN JOHOR

The Edge, 19/10/2023

Plenitude Bhd’s Hibiscus, comprising 199 double-storey homes in its 285.5 acre Impian Hills township in Ulu Tiram of Johor, has achieved a take-up rate of 50% since its preview in August. Impian Hills will be developed in several phases. The ongoing first phase named Magnolia comprises double-storey homes while Hibiscus is the second phase. Following the launch of both phases, Impian Hills now has a remaining land size of 228 acres dedicated to future phases that will feature commercial and residential developments. Spread across a 14 acre freehold tract, Hibiscus’ double-storey homes come in two layouts. Type A has a land size of 22’ x 75’ and a built-up of 2,057 sq. ft. while Type B comes with a land size of 22’ x 80’ and a built-up of 2,203 sq. ft. These homes have selling prices starting from RM600,000. Hibiscus is expected to be completed in 3Q25. Amenities nearby Impian Hills include Ikea Tebrau, AEON Mall Tebrau City, Lotus’s Desa Tebrau as well as educational institutions such as SMK Ulu Tiram, Sunway College, and Crescendo-Help International School. For recreational activities, residents of Impian Hills can visit the Tebrau Sport & Recreation Centre, Kota Tinggi Firefly Park, and Austin Heights Water and Adventure Park. Impian Hills is connected to major expressways, including the Senai-Desaru Expressway and Tebrau Highway via Jalan Kota Tinggi.

 

 

ALTON INDUSTRY INVESTS RM800 MILLION TO SET UP MANUFACTURING BASE AT T INDUSTRIAL PARK

The Edge & NST, 17/10/2023, The Star & The Sun, 18/10/2023

T Industrial Park in Pontian, Johor, has recorded a 100% take-up of its first three out of its nine phases spanning 572.2 acres, driven by a substantial RM800 million investment by US-based appliances supplier Alton Industry Ltd Group. As primary industrial hub, it will be home to the Alton Intelligent Super Factory, with a planned investment of RM2 billion in the coming years. T Industrial Park, which has nine phases, is one of the largest industrial zones in Johor. Alton Industry is setting up its principal overseas manufacturing base. The plant will support its track record in the development, production and sale of aerodynamic and cleaning equipment, automotive parts, garden pneumatic tools, intelligent robots and more. In addition, it will establish a satellite research and development building in Malaysia. Occupying an expansive area, Alton Industry’s investment in T Industrial Park is divided into three phases. The initial phase comprises 45.2 acres of the development’s 220.8 acres Phase 1, which has been fully taken to date. The rest of Alton Industry’s investment spans 109.4 acres (Phase 2) and 245.0 acres (Phase 3).

 

 

FINLAND’S PEIKKO LAUNCHES NEW FACTORY IN JOHOR BAHRU

The Edge, 19/10/2023

Finland’s Peikko Group Corporation, a global supplier of concrete connections and composite structures, has officially opened its newest factory in Tebrau Industrial Estate 2. The new €10 million (RM50.27 million) facilities comprises of 32,291 sq. ft. of space. The new facility in Johor Bahru is ideally positioned to cater to the dynamic requirements of Malaysia, Singapore, Australia, and other Southeast Asian markets.