Oct

In The News

Week 43 - 2024

BUDGET 2025 HIGHLIGHTS

The Star, 19/10/2023

The Budget 2025 was introduced with the theme, “Revitalising the Economy, Generating Change, Prospering the Rakyat”. Budget 2025 is the largest in Malaysia’s history, with an allocation of RM421 billion. The most relevant highlights (selected) are provided below:

Housing and Local Government	RM900 million to implement 48 People’s Residency Programme and 14 Rumah Mesra Rakyat projects. RM200 million to maintain low-cost and medium-cost public strata homes, including replacing old lifts. RM84 million for Chinese new villages to upgrade basic and social facilities for community use. RM100 million to upgrade 48 public parks, covering recreational areas and landscapes in cities and small towns. RM12.8 billion approved under the Government Guarantee Scheme for over 57,000 first-time homebuyers. The government will continue to guarantee housing financing of up to RM10 billion for the benefit of 20,000 homebuyers. The Step-Up Financing Scheme has been introduced under the Government Housing Guarantee Scheme with a guarantee of up to RM5 billion for young people looking to purchase their first home. Individual tax relief of up to RM7,000 to encourage first time home ownership depending on the prices of properties. The ministry will also oversee Indian settlements.
Sabah & Sarawak	RM6.7 billion development allocation for Sabah; RM5.7 billion for Sarawak. Special allocation for Sarawak and Sabah increased to RM600 million, reassessed for the first time since 1969. Letter of Acceptance have been issued for 17 Pan Borneo projects with a contract value of RM9.7 billion. RM1 billion to set up Sarawak Cancer Centre, a heart centre in Kota Kinabalu. RM500 million, to supply clean water and electricity covering 5,150 houses in two states. RM200 million for Sabah-Sarawak Rural Air Service.
Health	Excise duty on sugar sweetened by beverages increased by 40 sen per litre from Jan 1, 2025. RM1.35 billion to upgrade and repair dilapidated facilities. RM300 million to upgrade and repair dilapidated clinics. RM2.5 million for Rakan KKM Programme. RM100 million for healthcare facilities that serve as centre of excellence. RM25 million for rare diseases treatment. Public-private partnership with 91 private hospitals for outsourcing of patients.
Home	RM2.12 billion to acquire specialised assets for the police and other uniformed agencies. RM2.1 billion to build new police stations. New procurements for patrol vessels for Malaysian Maritime Enforcement Agency (MMEA).
Defence	RM50 million will be allocated to start PLKN3.0. RM5.8 billion to procure, upgrade and maintain assets. Under PROTEGE-Veteran programme, mandatory for contractors to hire Armed Forces veterans, especially for those with TVET qualifications. RM500 as cost-of-living aid for Armed Forces veterans without pensions.
Higher Education	RM4 billion for scholarships, loans and educational allowances. RM500 million to be provided by PTPTN education funding, specifically for students who pursue STEM. GLICs and GLCs committed to ensuring that at least 50% of scholarship recipients are from low and middle-income families. Free Amanah Saham Bumiputera account with RM50 to 100,000 new students furthering higher education. RM635 million to upgrade infrastructure, replace outdated equipment and expand internet access across all public universities. AI education to be expanded to all research universities and funding increased to RM50 million. RM600 million to fund research and development (R&D). RM170 million for the Malaysia Science Endowment to provide matching grants to private entities and industries.
Human Resources	RM200 million to fully implement Progressive Wage Policy next year. Starting salary guidelines will be published for all work sectors. Socso to build a rehabilitation centre in Terengganu, costing RM600 million. Employers hiring persons with disabilities (PWD), or ex-convicts will be eligible for a monthly incentive of RM600 for these months, managed by Socso.
Tourism, Art & Culture	RM550 million for tourism, focusing on promotional activities for Visit Malaysia Year 2026. RM110 million to upgrade, complete or maintain ecotourism attractions. RM50 million for Dewan Bahasa dan Pustaka to enhance the status of language and literature. RM25 million allocated to MyCreative Ventures to support the creative industry. RM110 million to develop tourism spots, foster ecotourism, support the nomination of the Sungai Lembing Mines in Pahang, the Chingay parade and Lion Dance into the Unesco Intangible Cultural Heritage List.
Cooperatives and Entrepreneur Development	RM20 million in matching grants for the i-TEKAD programme to support over 8,000 low-income micro entrepreneurs. RM40 billion provided as loan facilities and business financing guarantees. RM3.2 billion to assist small entrepreneurs, including PWD, Chinese and bumiputra communities. RM130 million for various activities, including business financing for the Indian business community. RM800 million for bumiputera entrepreneurs and to support local artisans.
Youth and Sports	RM230 million for sports development, including Podium Programme, athletes’ training, 2028 Olympics Road to Gold and Paralympics and Tokyo 2025 Deaflympic. RM15 million for Harimau Malaya, Under-18 and Under-13 teams. RM20 million to empower e-sports, including talent development and upgrading e-sport arena.
Education	17 types of education assistance will continue to be provided with an allocation of RM5.3 billion. Allocation for the Supplementary Food Programme (RMT) increased to RM870 million. Poor Student Trust Fund increased to RM180 million. RM2 billion for hostel food aid. RM2 billion for school upgrading and maintenance projects nationwide. RM1 billion specifically to maintain all types of schools, especially with dilapidated classrooms. RM1 billion to upgrade dilapidated infrastructure in 543 schools. 44 new schools to be built next year. RM100 million to implement the Fixed Line Broadband Infrastructure Connectivity Programme in rural schools. RM800 million to continue the existing Point of Presence (POP) projects. RM100 million to repair school facilities such as canteen and surau. RM10 million as School Assistance to all 687 rural schools. Empty spaces and buildings owned by government agencies, GLCIs and GLCs to be repurposed as preschools, taska and skill training centres.
Law and Institutional Reforms	Over 3,000 outdated laws to be reviewed by a legislative reform team. RM180 million allocation for Parliament. RM20 million to support All-Party Parliamentary Group Malaysia-Sustainable Development Goals. RM209 million for the Legal Affairs Divisions. Consumer Credit Bill to be tabled, Consumer Credit Monitoring Board to set up. RM60 million for upgrading judicial infrastructure, including the development of the e-court system.
Transport	RM253 million to expand Tawau airport in Sabah and Miri Airport in Sarawak. Over RM270 million for the Stage Bus Service Transformation (SBST) programme. RM3.942 million to subside free travel pass initiative for students and disabled persons using KTM Komuter services. RM22 million to subsidise operations of non-economic train routes. RM48 million for the FLYsiswa flight ticket subsidy.
Digital	RM10 million and additional 100 personnel for the National Cyber Security Agency (NACSA). RM20 million to enhance National Scam Response Centre (NSRC) operations. RM50 million as digital matching grant for SMEs and digital grant for vendors to help local entrepreneurs stay competitive in the market. RM3.8 billion in SME funding loans to digitalise and automate the agri-food sector and sustainable practices.
Disaster Preparations	RM600 million for the National Disaster Management Agency (Nadma) to deal with floods. RM150 million for local councils and the Irrigation and Drainage Department for cleaning and dredging works in cities affected by recent floods. RM20 million in matching GLCs and GLICs to enhance response efforts and aid distribution to flood victims. RM250 million to repair slopes nationwide to prevent incidents of land subsidence and landslides. RM10 million to conduct geotechnical studies on major roads around Kuala Lumpur’s Golden Triangle. 12 flood mitigation projects worth RM3 billion have been exempted from SST.
Women, Family and Community Development	RM25 million to Women, Family and Community Development Ministry to help children affected in Ops Global (GISBH) case. RM1.3 billion total aid for persons with disabilities (PWD). 11 new Permata centres to equip each state with education centres for autistic children. RM300 million to build two new schools for special needs students. RM15 million to fund learning fees of autistic children, benefitting 30,000 children. RM10 million to help registered private schools with learning facilities for autistic students. RM5 million to develop an autism service centre.
Energy Transition and Water Transformation	RM1 billion to continue green technology financing scheme until 2026. UEM Lestra and TNB to invest RM16 billion to improve network transmission decarbonisation of industrial areas. Government to introduce carbon tax on iron, steel and energy industries by 2026. RM250 million to support efforts by state governments in conserving and preserving forests and wildlife.
National Unity	RM50 million for the repair and maintenance of registered non-Muslim places of worship nationwide. RM50 million for programmes to foster unity and identity among races. RM150 million for community programmes to cultivate volunteerism. RM600 million to preserve Kuala Lumpur’s status as a cultural and creative hub, to restore Sultan Abdul Samad Building and Carcosa Seri Negara.
Domestic Trade and Cost of Living	No subsidies for electricity use of over 600 kWh. RM100 million for improving public market infrastructure in all local authorities. Extension of income tax exemption from foreign sources and subject to income tax in the country of source until 31st December 2036. RM600 million from Bank Pembangunan Malaysia Bhd and SME Bank in special financing to halal SMEs. RM300 million for venture capital fund managers investing in start-up companies under National Fund-of-Funds initiative. RM1 billion allocation by Retirement Fund (Incorporated) under Pioneer Fund to support local start-up companies with RM200 million.
Religious Affairs	RM150 million to maintain Islamic Development Department’s (Jakim) Islamic education infrastructure including tahfiz and religious schools. RM35 million to provide RM500 cash to more than 70,000 KAFA teachers, imam and bilal. One million copies of Al-Quran to be printed and distributed around the world with English, Spanish, Swedish, and Chinese translations. Jakim’s halal auditors increased by 100 people to speed up halal certification. MYeHALAL system to centralise 20 government agencies and 100 overseas halal bodies.
Communications Ministry	RM120 million allocation by MCMC to improve internet connectivity at public universities, schools, military camps, and Mara institutions. RM100 million for MCMC to enhance National Information Dissemination Centres to help online entrepreneurs.
Border Security	RM560 million to strengthen border security including to build and upgrade checkpoints, equipping enforcement agencies with drone and AI technology. RM1 billion for basic infrastructure at towns bordering Kalimantan in Indonesia and southern Thailand. RM20 million to strengthen entry point management following use of QR code at main entry points in the southern peninsula.
Works/Constructions	RM21 million to address land subsidence issues in Kerian Laut, Perak, Kedah and Perlis. RM200 million to support cash flow of G1-G4 completing small-scale Government projects worth up to RM1.5 million under Skim Cakna 2. RM1.3 billion to empower G1-G4 contractors, especially bumiputera to provides opportunities for contractors to undertake small and medium projects, such as road construction, as well as the repair and maintenance of public infrastructure
TVET	RM100 million for the implementation of Madani adopted village programme where TVET institutions will provide services like home repairs and electrical wiring. TVET education per capita grant (PCG) up by 15%, bringing the total PCG allocation to over RM900 million. GLCs will lead new skill training programmes for their respective industries such as TNB (energy transition) and SD Guthrie (mechanisation and automation of plantations). Companies to receive tax deductions for new equipment and machinery donated to registered public skills training institutions (ILKA), polytechnics, or vocational colleges, starting from the 2025 tax year until 2027. RM500 million to be provided by Skills Development Fund Corporation, to benefit more than 20,000 trainees. HRDCorp will use RM3 billion in funds to offer three million training opportunities.

MALAYSIA’S 3Q24 GDP GROWTH ESTIMATED AT 5.3%

The Sun, The Edge & NST, 22/10/2024

Malaysia’s economy increased to 5.3% in 3Q24, following 5.9% growth in 2Q24, according to advance estimates issued by the Department of Statistics Malaysia (DoSM). For the first nine months of 2024, gross domestic product grew at 5.1% compared to 3.8% in the same period in 2023. “Stable labour market, moderate inflationary pressure, accommodative fiscal and monetary policies, as well as continuous recovery in tourism activities are expected to contribute to the expansionary momentum of domestic economy. Positive trends in consumer spending and rising investment are set to spur economic growth in 3Q24. Based on the latest indicator released by DoSM, wholesale and retail trade sales increased 6.7% in July 2024 and moderated to 4.7% in August 2024. The Industrial Production Index rose 5.3% and 4.1%, respectively, in July and August 2024. On external front, Malaysia’s trade demonstrated resilience, achieving quarterly growth of 7.8% in exports and 20.8% in imports. The quarter’s economic expansion was propelled by the services sector, which grew by 5.1% (2Q24: 5.9%), led by the wholesale and retail trade, transportation and storage, and business services sub-sectors. Furthermore, the manufacturing sector registered a better growth of 5.7% compared to 4.7% in the preceding quarter, mainly supported by electrical, electronic and optical products as well as petroleum, chemical, rubber and plastic products.

MALAYSIA’S INFLATION RATE FOR SEPTEMBER 2024 EASES TO 1.8%

The Sun, The Star, NST & The Edge, 25/10/2024

Malaysia’s inflation rate for September 2024 has eased to 1.8%, down from 1.9% in August 2024, according to the Department of Statistics Malaysia.Meanwhile, the consumer price index (CPI) for September 2024 rose to 133.2, compared to 130.8 in September 2023. All states registered increases in the inflation of food and beverages, with Selangor recording the highest rate at 2.8%, followed by Pahang at 2.2%, Pulau Pinang at 2.0% and Sarawak at 1.6%. Inflation for the third quarter of 2024 (3Q2024) remained steady at 1.9%.

TARGET OF 500,000 AFFORDABLE HOMES AT 89% AS OF SEPTEMBER 2024

The Sun & The Edge, 23/10/2024

The government has reached 89% of the target for the construction of 500,000 affordable homes, with 443,259 units completed, under construction, or planned across the country as of September 2024. The Ministry of Housing and Local Government said that the remaining 56,741 affordable housing units are expected to be completed by the end of 2025.

PERAK TRANSIT SECURES PROJECT TO DEVELOP KOTA BHARU SENTRAL

The Edge, 25/10/2024

Perak Transit Bhd, a developer and operator of integrated public transportation terminals (IPTT) has received a letter of award and approval from the Kelantan state secretary's office to develop the Kota Bharu Sentral (KB Sentral) terminal. Perak Transit shall appoint China Communications Construction Company (CCCC) as the main contractor for the project.

KL SENTRAL REDEVELOPMENT TO BEGIN IN 2025

The Sun, The Star, NST & The Edge, 25/10/2024

The redevelopment of KL Sentral is slated to commence in 2025, with discussions between the Public-Private Partnership Unit (Ukas) and Malaysian Resources Corporation Bhd (MRCB) anticipated to be finalised within the next two to three months. The project is based on a public-private partnership (PPP) and requires finalising the terms and conditions between Ukas, which comes under the Prime Minister’s Department, and the developer.

KERJAYA PROSPEK SECURES TWO CONTRACTS TOTALLING RM34.4 MILLION

The Edge, The Sun, The Star & NST, 24/10/2024

Kerjaya Prospek Group Bhd’s wholly owned subsidiary Kerjaya Prospek (M) Sdn Bhd had secured two new contracts from Pixel Valley Sdn Bhd and Greencove Sdn Bhd respectively, totalling RM34.4 million. The first contract, valued at RM16 million, involves piling and pile cap works for a development in Batu Kawan, Penang. The second contract, worth RM18.4 million, involves earthworks and structural works for a proposed development in Damansara Damai, Selangor. Both projects will begin on 5th November 2024, with completion expected within 18 months.

WORLDWIDE HOLDINGS LAUNCHES PAVONIA TERRACE HOMES IN BUKIT BANDARAYA

The Edge, 22/10/2024

Worldwide Holdings Bhd has launched its Pavonia homes in Bukit Bandaraya, Shah Alam. Pavonia is located on 8.2 acres of prime elevated land, with just 126 double-storey terrace homes. Each unit offers a layout with a minimum built-up area of 1,867 sq. ft. The group target market is professionals, young families and upgraders from the catchment areas of Shah Alam, Kelang, Subang Jaya and Petaling Jaya. This development offers great value for money, with spacious, well-designed homes in a prime location that enhance the lifestyle of our homeowners who desire both accessibility and comfort.

S P SETIA TO UNVEIL SEMI-DETACHED HOMES IN PUCHONG THIS WEEKEND

The Edge, The Sun & NST, 25/10/2024

S P Setia Bhd is unveiling new double-storey semi-detached homes named Anggun Villa III in Bandar Kinrara, Puchong on 26th October 2024. The development has an estimated gross development value of RM105.17 million. Anggun Villa III comprises 30 double-storey semi-dees, where each unit will have a built-up size of 3,951 sq. ft. and land areas that range between 4,058 and 6,078 sq. ft. The selling price starts from RM3.38 million. Anggun Villa III is targeted for middle- to upper-income professionals, couples and families from Bandar Kinrara and other surrounding areas.

BLOC 17, SETIA SAFIRO: A NEW LANDMARK FOR MODERN LIVING IN CYBERJAYA

Starproperty.com, 23/10/2024

Situated in the mature city of Cyberjaya, Setia Safiro, a freehold township by leading developer S P Setia Bhd is setting new standards for modern, convenient living with its latest development, Bloc 17. The commercial hub is poised to become the main centre of this vibrant, Spanish-inspired township. Scheduled for completion in May 2027, Bloc 17 is set to redefine the commercial landscape in Cyberjaya. As Cyberjaya continues to grow as a hub of innovation and lifestyle, Bloc 17 aims to cater to the evolving needs of today’s urban dwellers - bringing together the best of residential comfort, business opportunity, and lifestyle convenience. Comprising 48 units with several types of configurations for different business needs. Intermediate units range from 22 ft by 70 ft to 22 ft by 80 ft, with signature units boasting a generous built-up area of 4,544 sq. ft. Meanwhile, corner units will have sizes up to 36 ft by 80 ft and the signature corner unit extending up to 6,047 sq. ft, making them ideal for those seeking to create a truly unique retail environment. Bloc 17 will be the only commercial development within Setia Safiro’s 57-acre township, strategically positioned to provide essential services, retail options and dining experiences to residents.

GLOMAC TO RAMP UP LAUNCHES FOLLOWING SIX-YEAR SLOWDOWN

NST, 22/10/2024

Glomac Bhd plans to ramp up its annual project launches to RM800 million starting in the financial year ending 30th April 2026 (FY26). Currently, the company launches projects with a gross development value (GDV) of RM400 million annually. The company’s landbank exceeds 598 acres of which around 400 acres are located in the Klang Valley, including its largest plot of 99 acres in Puchong, with additional land in Rawang, Sungai Buloh, and Subang. In Johor, the company owns 163 acres in Kulai and Ulu Tiram. Glomac aims to launch properties worth RM459 million, including Serai@SBCR Phase 1 in Sungai Buloh, Saujana KLIA, and Saujana Jaya in Kulai. Recent projects include semi-detached residential units at Keys in Lakeside Residences, Puchong, and shop offices at Saujana Perdana.

PTT SYNERGY TO BUILD AND LEASE AUTOMATED WAREHOUSE TO MULTINATIONAL FIRM FOR RM399.7 MILLION

The Edge, 23/10/2024

PTT Synergy Group Bhd has signed a 10-year build and lease agreement to provide a fully automated warehouse for RM399.7 million. The build and lease agreement was signed between the company’s wholly owned subsidiary, Projek Tetap Teguh Sdn Bhd (PROTT) and a multinational corporation (MNC) semiconductor maker based in Penang. The company said it is not naming the MNC because of a non-disclosure agreement.

The built-to-suit and lease will be for a period of ten years with a first extended term of five years and second extended term of five years with total lease rental amounting to approximately RM399.7 million for the first ten years. The purpose-built warehouse has a gross built-up area of 416,572.18 sq. ft. and PTT Synergy is required to provide an automated storage and retrieval system with a capacity of 47,320 pallets.

ISP ACQUIRES RM188.5 MILLION INDUSTRIAL ASSETS TO SPEARHEAD GROWTH

NST & The Sun, 25/10/2024

The ISP Group of Companies (ISP) has acquired industrial assets valued at RM188.5 million, positioning itself to tap into the growing demand for sustainable logistics warehouses and manufacturing hubs in Malaysia. The company acquired four industrial properties with a total gross floor area of around 850,000 sq. ft., financed through a combination of internal funds and borrowings. Located in Johor and Selangor, the assets will be redeveloped into sustainability-focused logistics warehouses and manufacturing hubs to cater to the increasing demand in the country. ISP, which is a property company that specialises in the logistics warehouses and manufacturing hub (LWMH) and purpose-built workers accommodations (PBWA) segments, anticipates starting to rent or lease these properties by 1Q25. These sectors include semiconductors, manufacturing, technology (data centres), and logistics. ISP aims to focus on infrastructure and sustainability by ensuring reliable infrastructure, transport networks, and amenities in its LWMH assets.

EXSIM HOSPITALITY WINS RM60 MILLION SUB-CONTRACT WORKS

The Edge & The Star, 19/10/2024

Exsim Hospitality Bhd’s wholly owned subsidiary Exsim Concepto Sdn Bhd has been awarded with a sub-contract work package for RM60 million by Totalbuildz Sdn Bhd. The work involves designing and building of architecture, interior design and fit-out works to 294 rooms in the Building E of Empire City at Damansara Perdana. The contract begins from 18th October 2024 and is expected to last 18 months, followed by a defect liability period of twelve months.

SUNSURIA UNVEILS CONCORD COLLEGE INTERNATIONAL SCHOOL MALAYSIA

The Edge, 24/10/2024

Sunsuria Bhd has launched Concord College International School Malaysia (CCIS) in Sunsuria City, Sepang, Selangor. CCIS is the first international school in Asean modelled after the Concord College, an independent day and boarding school in Shropshire, England. The first of three CCIS campuses to be set up by Sunsuria across Malaysia is the result of a partnership between Sunsuria Education Sdn Bhd (SESB) and Concord College International Ltd (CCIL) subsidiary of The Bell Concord Educational Trust Ltd. The school offers the English National Curriculum across various levels: Primary School (Years One to Six), Secondary School (Years Seven to Ten), and Sixth Form (A-Level). Located on a 10-acre campus opposite Xiamen University Malaysia, the school features facilities such as classrooms, science labs, a library, an art studio and music rooms. Given the strong interest, the school plans to expand its capacity, phase two will include boarding facilities for an additional 650 students, along with new classrooms, an auditorium and other amenities.

M TIARA IN JOHOR MEETS THE NEEDS OF MODERN LIVING

The Edge, 19/10/2024

Mah Sing Group Bhd’s latest residential development, M Tiara, in Skudai, Johor raises the bar on luxury living for its residence. With a gross development value of RM480 million, it sits on 75.7 acres of freehold land, comprising double-storey terraced houses and double-storey cluster homes. It has 754 units spread across three phases, with 223 units for Phase 1, 368 units for Phase 2 and 163 units for Phase 3. Type A has a land size of 20ft by 70ft while Type B offers a longer driveway with a land size of 20ft by 75ft. The houses have built-up areas of 1,798 to 1,828 sq. ft. M Tiara Phase 1A’s selling price starts from RM715,000 for bumiputera units, and has achieved a 100% sales rate old for all the non-bumiputera units since opening for registration in June 2024. M Tiara Phase 2A and 2B’s double-storey terraced homes are targeted to be launched by 4Q24, while M Tiara Phase 3 is by 1Q25.

THE SUNSHINE CENTRAL MALL OFFICIALLY OPENED

The Star, 21/10/2024

The Sunshine Central Mall in Bandar Baru Air Itam, Penang, is officially opened, offering shopping, dining and entertainment options with 350 stores including Sunshine Hypermarket. The mall also has a food hall, a fitness centre and an amusement centre, making it both a retail hub and a social and cultural centre.