Week 44 - 2023
ECER: RM10 BILLION IN COMMITTED INVESTMENTS AS AT SEPTEMBER 2023
The Sun, 31/10/2023
The East Coast Economic Region (ECER) has attracted RM10 billion in committed investments as of September 2023, according to the ECER Development Council (ECERDC). To date, RM2.6 billion has been realised and these investments are across various sectors including manufacturing, tourism, services, agriculture as well as oil, gas & petrochemicals. Investments in ECER have the potential to create more than 4,500 new jobs and more than 600 additional business opportunities, promising a brighter economic outlook for the region.
MALAYSIA’S ECONOMIC GROWTH PICKS UP IN 3Q23
The Sun, 01/11/2023
The Malaysian economy grew at a faster pace in 3Q23 compared with 2Q23. The advance estimate of gross domestic product showed a year-on-year (y-o-y) growth of 3.3% in 3Q23, surpassing the 2.9% y-o-y growth recorded in 2Q23. The growth was propelled by the services sector, which remained the key driver of the overall economic performance during the quarter.
For September 2023, total trade contracted, reducing by 12.6% y-o-y to RM224.4 billion. Exports decreased by 13.7% to RM124.5 billion, while imports fell by 11.1% to RM100 billion. Consequently, the trade surplus fell by 23% as compared to 2022, reaching RM24.5 billion.
The number of employed persons rose by 2.1%, reaching a total of 16.35 million in August 2023 (August 2022 16.02 million). The total labour force also experienced a 1.8% y-o-y increase, amounting to 16.93 million persons. Consequently, the unemployment rate decreased by 0.3% to reach 3.4%.
SEPTEMBER 2023 HEADLINE INFLATION DOWN SLIGHTLY TO 1.9%
The Sun, 01/11/2023
Headline inflation declined slightly to 1.9% in September 2023 (August 2023: 2%), driven largely by fresh food, which continued to trend lower during the month (1.6%; August 2023: 2%). Meanwhile, core inflation remained steady at 2.5% in September 2023 (August 2023: 2.5%). Higher inflation for goods such as rice and jewellery were offset by moderation in selected services, including vehicle repair and maintenance, and recreational services.
NEARLY 80% OF RM753.9 BILLION IN APPROVED INVESTMENTS SINCE 2018 REALISED
The Edge & The Star, 01/10/2023
Malaysia has recorded approved investments totalling RM753.9 billion between 2018 till June 2023, of which RM593.5 billion has been realised. According to Minister of Investment, Trade and Industry (MITI), this is close to an implementation rate of 80%.
27% POPULATION AGED UNDER 18: STATISTICS DEPT
The Sun, 02/11/2023
The number of children under 18 in Malaysia in 2023 is estimated to be 9.13 million, which accounts for 27.4% of the country’s total population of 33.38 million. Based on the Children Statistics Malaysia 2023 data published by the Statistics Department, the number of boys and girls under the age of 18 is 4.72 million and 4.42 million respectively. The composition of children under five years old in 2023 is 2.35 million, with 1.21 million boys and 1.14 million girls. This group covers 25.7% of the total number of children in Malaysia.
BANK NEGARA MAINTAINS BENCHMARK RATE AT 3%
The Star, The Sun, The Edge & NST, 03/11/2023
The Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 3%. BNM denoted that at the current OPR level, the monetary policy stance remains supportive of the economy and is consistent with the current assessment of the inflation and growth prospects.
GOVT LOOKING TO INTRODUCE INCENTIVES FOR BUILD-THEN-SELL CONCEPT FOR RESIDENTIAL DEVELOPMENTS
The Edge, NST & The Sun, 30/10/2023
Local Government Development (LGD) minister announced that the ministry is looking to introduce incentives for the build-then-sell concept for local residential developments, as an effort to reduce Malaysia’s abandoned and sick projects. In November 2023, the ministry will meet the Real Estate and Housing Developers’ Association (Rehda) Institute to discuss what incentives the government should provide to developers to encourage them to practise the build-then-sell concept. The planning and implementation of the build-then-sell concept will not be carried out in a rushed manner. The ministry will work closely with private developers for a win-win formula and hope it can start providing the incentives [for the build-then-sell concept] to developers by early 2024. The concept is in line with the ministry’s aim to reduce sick and abandoned private housing projects. As of today, we have saved 256 abandoned projects valued at RM23.37 billion, involving over 28,000 buyers. To further aid first-time homebuyers and property developers, LGD minister proposed a few initiatives for the government to consider, namely tax deductions on the interest incurred during the construction period for first-time homebuyers or personal tax relief to eligible first-time homebuyers; reintroduce the one-off first-time homebuyers’ grant; lower interest rates for first-time homebuyers of affordable housing units via innovative financing packages by financial institutions; similar schemes like the Simen Rahmah scheme should be introduced for high-consumption construction materials that have a wider eligibility scope not limited to affordable housing; and government intervention to tackle high compliance costs that need to be paid to local councils.
ATRIUM REIT ACQUIRES SHAH ALAM PROPERTY FOR RM41 MILLION
The Edge & the Star, 03/11/2023
Atrium Real Estate Investment Trust’s (Atrium REIT) asset manager Atrium REIT Managers Sdn Bhd (ABSB) has acquired buildings and leasehold land in Shah Alam, Selangor from a related party, Amazing Blitz Sdn Bhd (ABSB), for RM41 million cash. The land, measuring 6,003 acres., is surrounded by a mixture of residential, commercial, and industrial developments and is near i-City, a notable landmark.
SELANGOR DREDGING BUYS 29.19-ACRE LEASEHOLD LAND IN DENGKIL FOR RM87.9 MILLION
The Edge & The Star, 01/11/2023
Selangor Dredging Bhd’s wholly owned unit is buying 29.19 acres of vacant leasehold land, together with completed earthworks, in Dengkil, Selangor for RM87.9 million from Xtra Touch Sdn Bhd. The acquisition is part of Selangor Dredging’s ongoing effort to identify suitable properties for its land bank. Xtra Touch is wholly owned by Project Alam 2012 Sdn Bhd. The land is located within the township of Taman Putra Perdana, within close proximity to major highways and facing a 20-acre lake. The land’s gross development value is estimated to be approximately RM609 million, as the group’s wholly owned unit Prestij Permai Sdn Bhd is proposing to develop the land into about 550 units of two- and three-storey terraced houses.
TROPICANA CORP UNVEILS TROPICANA ALAM PROPERTY GALLERY IN PUNCAK ALAM
The Edge, 02/11/2023
Tropicana Corp Bhd has unveiled a 3,600 sq. ft. property gallery for its upcoming 362-acre Tropicana Alam township development in Puncak Alam. The new sales gallery opening last weekend attracted over 600 early bird registrants of the project that managed to preview the first 87.4-acre residential phase, which will feature double-storey terrace homes. The township’s first launch will comprise 431 double-storey terrace homes with built-ups from 1,917 sq. ft. and land sizes from 20ft by 70ft on 39.9 acres. Tropicana Alam is envisioned as a ‘Muhibbah Community’ and will have a gated community concept with a single-point entry as well as spacious and practical unit layouts. Amenities accessible to the gated township include Lotus, Econsave, Universiti Teknologi MARA, Hospital Al-Sultan Abdullah and the Puncak Alam golf driving range. Tropicana Alam is also accessible through major highways such as the Kuala Lumpur-Kuala Selangor Expressway (LATAR), Guthrie Corridor Expressway (GCE), Damansara-Shah Alam Elevated Expressway (DASH) and New Klang Valley Expressway (NKVE).
S P SETIA LAUNCHES LAKEFRONT SEMIDEES AT SETIA ALAMSARI
The Edge, 03/11/2023
S P Setia Bhd has launched Candella 2 on 2nd November 2023 which comprises 44 exclusive lakefront semi-detached homes, at Setia Alamsari township in Bangi. Candella 2 is the third phase of the township’s Casa Collection. The double-storey semi-detached homes offer a luxurious living experience while embracing the beauty of nature within a Moroccan-themed gardens. The collection is thoughtfully designed with a north-south orientation, ensuring that selected units can enjoy an uninterrupted lake view of the Serenity Lake Park. A two-acre guarded community, Candella 2 offers four-bedroom, four-bathroom homes with built-up areas ranging from 1,961 to 1,999 sq. ft. at prices starting from RM879,000. The homes are freehold and are slated to complete by end of 2025. Candella 2 will also be equipped with Setia iHome sustainable features such as 2.25 kWp solar PV panels, rainwater harvesting system, an electric vehicle slow charging port, a green switch and a smart lock. Setia Alamsari is a 775-acre township accessible via major highways such as the North-South Expressway (PLUS), Kajang-Seremban Highway (LEKAS) and Kajang Dispersal Link Expressway (SILK). It is close to amenities such as Universiti Kebangsaan Malaysia (UKM), the KPJ Kajang Specialist Hospital and Bangi Wonderland Theme Park & Resort.
MITRAJAYA WINS RM84.5 MILLION CONSTRUCTION JOB
The Star, 31/10/2023
Mitrajaya Holdings Bhd’s wholly owned subsidiary Pembinaan Mitrajaya Sdn Bhd has secured a RM84.5 million construction contract from GDP X Properties Sdn Bhd for the construction and completion of one block development of 31 storeys comprising 188 units of apartments in Mukim Batu, Kuala Lumpur. The contract is for a duration of 24 months from the date of possession of the site on 8th December 2023, and is expected to complete by 8th December 2025.
MRCB LAND COLLABORATES WITH THE MAKEOVER GUYS FOR SENTRAL SUITES KL SENTRAL
The Edge, 03/11/2023
MRCB Land has entered into a partnership with local home renovator The Makeover Guys for its Sentral Suites development in KL Sentral, Kuala Lumpur, effective 26th September 2023. The statement said that this partnership will give owners, prospective buyers and tenants the option of “a hassle-free fit-out solution”. Completed in March 2023, Sentral Suites comprises 1,434 serviced apartment units spread across three blocks on 4.75 acres. The units come in floor plans of one-, two- and three-bedroom as well as dual key units. Selling price of the available units start from RM829,800 for a 724 sq. ft. apartment. The property also comes with facilities like a jogging track, swimming pool, dance studio and 15 themed sky gardens and sky pods. The Makeover Guys as a turnkey solution provider will offer property owners a one-stop renovation service with fully furnished packages, and tenants a seamless transition into their new homes.
DEVELOPER TOPS LAMAN SERI HARMONI
The Star, 31/10/2023
Lim Seong Hai Capital Bhd (LSH Capital) marked a milestone by successfully hosting a “topping off” ceremony at Laman Seri Harmoni (LSH33) in Sentul, Kuala Lumpur. Besteel Engtech Sdn Bhd was one of the first developers to sign a strategic collaboration agreement with LSH Best Builders Sdn Bhd, a wholly owned subsidiary of LSH Capital. LSH33 is a mixed development comprising four components: one block each of 300 Perumahan Penjawat Awam Malaysia (PPAM) units, 300 Residensi Wilayah (Rumawip) units and 300 condominium units and four levels of retail space with a net lettable area of 103,000sq ft. LSH33 is on track for delivery and has achieved remarkable sales where 95% of the 900 residential units have been sold out, including 100% sales rate for PPAM and Rumawip products. LSH Capital has also introduced Industrialised Building Systems (IBS) for the development, which allowed LSH33 to catch up on its work progress and it is expected to hand over in 2Q24.
The next development under the Group, LSH Segar, is located in Cheras, Kuala Lumpur, and includes a 26-storey block with 440 Rumawip/Residensi Wilayah units, 7 storey podium with parking bays and a one-storey facility deck. It will also have one 28-storey block with luxury units such as sky homes, sky semi-D units, sky bungalows, one-storey of facility deck and eight levels of podium with parking bays, facilities and main lobby.
HIL INDUSTRIES TO BUY KL LAND FOR RM47 MILLION
The Edge & The Star, 02/11/2023
HIL Industries Bhd has proposed to acquire a 3-acre piece of land in Mukim Batu, Kuala Lumpur for RM47 million cash to undertake a condominium development. The freehold land is surrounded by landmarks such as Garden International School, Plaza Mont Kiara, 163 Retail Park, Hartamas Shopping Centre and Sri Hartamas Commercial Area. HIL’s indirect wholly owned unit Amverton Prop Sdn Bhd is acquiring the land from A & M Modern Homes Sdn Bhd (AMMH), a wholly owned subsidiary of Amverton Bhd.
SANCTUARY FOR ‘ACTIVE SENIORS’, MEDICAL TRAVELLERS OPENS IN BANDAR SUNWAY
The Sun, 30/10/2023
Sunway Healthcare Group recently opened a resort-style serviced apartment scheme next to Sunway Medical Centre in Bandar Sunway. Sunway Sanctuary opened its doors on 6th June 2023. The premium residences are aimed at “active seniors” in search of a “curated” lifestyle and easy access to medical services and facilities. Spanning 100,000 sq. ft. of built-up area across two floors, it offers a host of fitness, wellness and recreational amenities and comprises 473 studio and one- and two-bedroom units, exclusively available for rent from RM8,050 a month. Medical tourists seeking treatment at Sunway Medical Centre are allowed short-term stays at Sunway Sanctuary for around RM350 a night. The development is a modern retirement facility designed to provide active seniors with comfortable accommodation and a holistic lifestyle prioritising a balanced mind, body and soul. Exclusive health packages are also offered to residents of Sunway Sanctuary aged 55 and above. The units are also open to expatriates and healthcare tourists. Sunway Sanctuary is directly linked to Sunway Medical Centre and it can also be considered as a ‘senior care’ facility that provides personalised services depending on individual needs.
Sunway Sanctuary emulates Japan and Australia’s retirement villages whereby the facility caters to the financially independent senior community in Kuala Lumpur and also from the Southeast Asian region, Hong Kong, Australia and European countries. Sunway Sanctuary’s current residents include foreigners, particularly Singaporeans. 28% of the total stays (at Sunway Sanctuary) are attributed to international travellers and expatriates. Among the many facilities at Sunway Sanctuary are a gymnasium, mini-cinema, library, karaoke lounge, games room, sauna, heated infinity pool and rehabilitation centre. The pool and rehabilitation centre can be used by patients undergoing stroke therapy. It also has a health centre where residents can go for basic check-ups and health monitoring, blood tests and nutritional advice. However, residents will be referred to Sunway Medical Centre for further examinations if they are at risk of facing a serious illness.
RENT-TO-OWN SCHEME TO BE EXPANDED TO ALLOW B40, M40 GROUPS TO OWN HOMES
The Edge, 01/11/2023
The government will expand the Rent-to-Own scheme to enable more people from the B40 and M40 groups to own homes. Local Government Development Minister said cooperation with financial institutions will be continued to provide attractive and sustainable housing financing packages. The ministry through PR1MA Corporation Malaysia (PR1MA) and Syarikat Perumahan Negara Berhad (SPNB) had been developing housing projects such as the SPNB Housing and PR1MA Housing programmes for the M40 group nationwide. To date, a total of 28,583 SPNB housing units have been completed, 1,024 units are under construction and 531 units are in the planning process. Meanwhile, PR1MA has also built 35,454 affordable housing units, while 14,427 units are in progress and 3,765 units are being planned nationwide as of 15th October 2023. The government has also agreed to set the standard size for the People’s Housing Project (PPR) unit at 750 sq. ft., with a minimum of three bedrooms and two bathrooms for each unit.
SINGAPOREAN “BESPOKE HABITAT” LAUNCHES CO-LIVING SPACE IN JOHOR BAHRU
The Edge, 02/11/2023
Singapore-based property management company Bespoke Habitat has marked its foray into the Malaysian market with its co-living space in Johor Bahru. The 200-room co-living space is located near Mid Valley Southkey and it is currently 80% occupied. All rooms are fully furnished and the rate ranges from RM800 to RM1,400 per month, depending on the room’s location, size and the inclusion of ensuite facilities. Some of the facilities of the co-living space are functional living areas, fully equipped kitchens, high-speed WiFi, on-site laundry facilities, concierge customer care service and weekly cleaning service. There are approximately 350,000 people commuting from Johor Bahru to Singapore for work through the Johor-Singapore Causeway, and there has to be a go-to place for them to seek convenience with better transportation and a comfortable living solution. The group expansion into Johor Bahru reaffirms dedication to becoming the preferred choice for working professionals seeking reliable co-living solutions in Johor Bahru, Malaysia. Bespoke Habitat will provide dedicated transportation services daily to facilitate effortless travel between Singapore and Malaysia for its residents. Driven by a community-first approach, Bespoke Habitat has been providing flexible and affordable housing solutions in Singapore since 2019.
HYATT PLACE JOHOR BARU SLATED TO OPEN IN NOVEMBER 2023
NST, 31/10/2023
A second Hyatt Place Hotel is set to open in Johor Baru in November 2023. Reservations for Hyatt Place Johor Baru (HPJB) will begin on 6th November 2023. The HPJB is a component of the Paradigm integrated development, which includes Paradigm Mall and the Paradigm Residence. WCT Holdings Bhd (the developer), signed a management agreement with Hyatt Hotels Corporation in 2019. The hotel is conveniently located between the Woodlands check point and the Second Link.
SBH KIBING SOLAR OPENS FACTORY AT KK INDUSTRIAL PARK
The Edge, 03/11/2023
SBH Kibing Solar New Materials (M) Sdn Bhd has opened its new manufacturing facility at the Kota Kinabalu Industrial Park (KKIP), as part of its RM3 billion investment plan. SBH Kibing Solar and the Malaysian Investment Development Authority (MIDA) said the plant will manufacture solar photovoltaic (PV) glass and create 1,400 new jobs, with a commitment to have at least 90% of these positions be filled by Sabahans. The statement said intensive training programmes will be implemented for the incoming workforce to ensure smooth operations of its new facility.