Week 47 - 2023
MALAYSIA’S JANUARY-OCTOBER 2023 TRADE SURPASSES RM2 TRILLION
The Star & The Sun, 21/11/2023
Malaysia’s total trade surpassed the RM2 trillion mark from January to October 2023, reaching RM2.181 trillion, with exports amounting to RM1.186 trillion while imports were valued at RM995.55 billion. Trade, exports and imports each posted an 8% decrease compared with January to October 2022, while trade surplus was lower by 7.9%, amounting to RM190.04 billion. On a month-on-month (m-o-m) basis, Malaysia’s trade in October 2023 expanded by 6.8% to RM239.52 billion. Exports increased by 1.5% to RM126.19 billion and imports registered a double-digit growth of 13.4% to RM113.33 billion. Trade surplus reached RM12.87 billion, marking the 42nd consecutive month of trade surplus since May 2020. Malaysia’s trade for October 2023 declined at a softer pace of 2.4% year-on-year (y-o-y), compared with the double-digit decrease reported in September 2023. Exports eased by 4.4% and imports reduced marginally by 0.2%.
MALAYSIA SECURES INVESTMENTS WORTH RM63.02 BILLION IN US
The Sun & The Edge, 18/11/2023
Malaysia has secured a total of RM63.02 billion in proposed investments in the US mainly from technology giants. Out of the total, RM8.33 billion investments were from the trade and investment mission to the US organised before the start of the Asia-Pacific Economic Cooperation (Apec), while the remaining investments were from the various one-on-one meetings held by Prime Minister. The investments from the trade mission are from Abbott Laboratories, Mondelez International, Amsted Rail, Hematogenix, PerkinElmer, Ford Motor Company, Boeing, Amazon Web Services, Enovix, and Lam Research. The remaining investments have been secured from one-on-one meetings with technology giants such as Google, Enovix Cooperation, Microsoft, TikTok as well as TPG Inc.
SELANGOR GOVT TO BLACKLIST ERRANT DEVELOPERS NOT COMPLYING BUMIPUTERA QUOTA REQUIREMENTS
The Edge, 21/11/2023
The Selangor government will blacklist developers who do not fulfil conditions regarding the Bumiputera quota, said State Housing and Heritage Committee chairman. The committee retained the same mechanism in determining the Bumiputera quota percentage based on the Selangor state housing blueprint for any development project. If a developer does not comply with the Bumiputera quota requirements or the developer has oversold the non-Bumiputera units, then the process of blanket consent or blanket approval cannot proceed. The developer will be blacklisted from making any applications for the release of Bumiputera quota at the Selangor Housing and Property Board (LPHS) and imposed with heftier fines. The regulation is imposed during the approval process of land ownership and changes in land use conditions, which will be sanctioned by the state executive council (MMKN) and issued by the Selangor Land and Mines Office (PTGS). Developers must ensure the Bumiputera quota conditions are complied with during the process of property sales. The PTGS will assess the application for blanket consent or blanket approval by developers.
KXP AIRPORTCITY, TAHIRA AIR SIGN JOINT VENTURE DEAL TO DEVELOP KEDAH AEROTROPOLIS
The Edge, 23/11/2023
KXP AirportCity Holdings Sdn Bhd, a company wholly owned by the Kedah State Development Corporation (PKNK) has signed a joint venture agreement with Tahira Air Sdn Bhd to establish a special purpose vehicle (SPV) to continue the development of the Kedah Aerotropolis project. The new SPV which will be named Kedah Aerotropolis Holdings Sdn Bhd will be the new developer of the project to replace the previous SPV which was said to have failed to fulfil the agreement. The Kedah Aerotropolis project has several main development components, namely the Kulim International Airport (KXP), the Sidam Logistics, Aerospace and Manufacturing (SLAM) hub and the integrated development of commercial areas. The Kedah Aerotropolis project implemented through the private finance initiative is a ‘game changer’ for the Kedah economy where it is projected to contribute 4.5% of the gross domestic product and is expected to create 24,000 job opportunities. Kedah Aerotropolis, designed to drive Kedah’s economic transformation, will be developed on 3,965 hectares of land in Mukim Sidam Kiri in the Kuala Muda district.
TRX TUNNEL TO OPEN ON 29TH NOVEMBER 2023, ALONG WITH MALL AND ROOFTOP PARK
The Edge, 23/11/2023
The Tun Razak Exchange (TRX) tunnel will be open to the public on 29th November 2023 coinciding with the opening of The Exchange TRX mall and the 10-acre rooftop TRX City Park. The five-km underground vehicular tunnel will seamlessly link TRX to a network of 12 major roads and highways including Jalan Tun Razak, Jalan Sultan Ismail, Maju Expressway (MEX), SMART Tunnel and the Setiawangsa-Pantai Expressway (SPE). The TRX tunnel will also create a loop system that provides access to and from major thoroughfares to various points within the development. By bypassing the busy roads, vehicles going to TRX do not add to the existing traffic volume in surrounding roads. Vehicles entering TRX via the loop tunnels will go straight to the parking bays, under the respective buildings within the development. The TRX tunnels, built by Gadang Engineering (M) Bhd and WCT Bhd, comprise two levels dedicated to vehicular traffic and an additional level exclusively for utility services.
KERJAYA PROSPEK’S RM404.35 MILLION JOB FROM ECOFIRST’S UNIT FALLS THROUGH
The Edge & NST, 22/11/2023
Kerjaya Prospek Group Bhd’s RM404.35 million job from BCM Holdings Sdn Bhd, a subsidiary of EcoFirst Consolidated Bhd , to build a main residential building has fallen through after BCM decided not to proceed with the contract previously agreed upon between both parties. Kerjaya Prospek said it has not commenced any contract work to-date. Kerjaya Prospek said it will be taking necessary steps under the letter of award (LOA) after advice from its solicitors “to enforce its right to recover the pre-agreed damages payable stated in the LOA, which is due and payable by BCM to [wholly owned subsidiary] Kerjaya Prospek (M) Sdn Bhd.
JENTAYU SUSTAINABLES TO DISPOSE OF JALAN MAYANG LAND FOR RM25 MILLION
The Star & The Edge, 24/11/2023
Jentayu Sustainables Bhd, which engages in renewable energy, healthcare and trading of building materials, is disposing of a 12,884 sq ft piece of freehold residential land located at No 21, Jalan Mayang, Kuala Lumpur to Armani Development Sdn Bhd, a wholly owned subsidiary of Golden Armani Sdn Bhd, for RM25 million. The proposed disposal is in line with the group’s consistent focus on its core business and to optimise the utilisation of assets owned. The proposed disposal provides Jentayu Sustainables an opportunity to unlock and realise the value of the property which represents part of its non-core assets, while providing a surplus cash flow arising from the sale of the property and reducing gearing level of the group.
KSL BUYS LAND FROM S P SETIA FOR RM 228.8 MILLION
The Star & The Edge, 24/11/2023
KSL Holdings Bhd wholly owned subsidiary KSL Bestari Sdn Bhd is acquiring freehold land measuring 18 acres land in Shah Alam, Selangor from Bandar Setia Alam Sdn Bhd, a wholly owned subsidiary of S P Setia Bhd for RM228.8 million. The proposed acquisition will enlarge the group’s current land bank to enhance future revenue and earnings. The said land will be used for residential development projects and further enhance its presence in the property market in Selangor. The development project is expected to commence in 2025 and is envisaged to spread over a period of 10 to 15 years.
S P SETIA TO LAUNCH FERROUS 2 ON 26TH NOVEMBER 2023
The Edge, 23/11/2023
Following the successful premiere of Ferrous in March 2023, S P Setia is poised to launch Ferrous 2 in Setia Alam Impian on 26th November 2023. With a gross development value of RM110.07 million, Ferrous 2, spanning 7.84 acres, consists of 116 units of double-storey terraced homes. Priced from RM885,800, these freehold homes boast built-up areas ranging from 1,900 to 2,097 sq. ft., featuring 4 bedrooms and 4 bathrooms. The terraced homes present an open layout concept with spacious living and dining areas, making it an ideal choice for residents who enjoy hosting family functions or gatherings. Moreover, residents can escape the bustling urbanscape by strolling to the connecting linear park, which offers facilities suitable for all ages, including a playground, basketball court, Little Shorea Forest. Ferrous 2 incorporates sustainable and future-ready features that promote smarter and more sustainable living. These features, including a smart digital lock, EV charging point, and green switch, “not only bring convenience but also contribute to a greener future, enhancing the overall living experience for residents who share a commitment to a sustainable lifestyle”. Ferrous 2 is close to various amenities such as the township’s LakePoint Park, commercial precincts such as LakePoint Central and Impian Prisma, LakePoint Club, the recreational hub, Eaton International School, and an upcoming hospital.
FIRST PHASE OF KIARA BAY TOPPED OUT
The Star, 22/11/2023
The first phase of UEM Sunrise Bhd’s flagship township project of Kiara Bay in Kepong – Residensi AVA – has been completed with the placing of its roof slab on the top floor. It is a joint venture with Melati Ehsan Group, called Mega Legacy (M) Sdn Bhd (MLSB). With an estimated gross development value (GDV) of RM664 million, Residensi AVA’s construction progress is at 75%. The development consists of two towers, both 41 storeys high, with 870 units comprising various built-up sizes to cater to different generational needs and lifestyles. Among its amenities are lap and wading pools, badminton and basketball courts, as well as yoga and sky decks. Prices start from RM567,800. Residents of Residensi AVA enjoy close proximity to the Kepong Metropolitan Park for their leisurely activities as well as various retail offerings at Kiara Bay’s retail space, called The Beat, which is directly connected to the park. Spanning 73 acres of land, Kiara Bay consists of three districts with a 1km green connector that links them all, such as The Waters, consisting of a mix of residences with a lakefront retail space; The Walk, a community-centric marketplace with residences; and The Village, an inclusive multi-generational wellness and living, surrounded by green spaces. Both Residensi AVA and Residensi ZIG are located in The Walk district.
DUO TOWER BANGSAR SOUTH
The Edge, 18/11/2023
The master developer of Bangsar South, UOA Development Bhd has introduced Duo Tower Bangsar South, the last strata office development within Bangsar South. Sitting on a 1.92-acre parcel along Jalan Kerinchi Kiri 2 in Bangsar South, the 34-storey Tower A (Tower B will be owned and used by UOA Group) consists of Grade A offices with a total of 239 units spread across 24 floors (levels 11 to 34), offering flexible strata offices with built-ups ranging from 1,389 to 3,003 sq. ft. A bigger floor plate of up to 20,000 sq. ft is available as the units can be merged to cater for a larger open space. The GreenRE Silver certified Duo Tower Bangsar South provides 16 electric vehicle charging bays, has solar panels installed on 30% of the rooftop space, a sprawling 6-acre park with 40% green space and a landscaped area that acts as a green oasis for tenants. To be launched in 1Q24 at a selling price of RM1,500 psf, the Duo Tower Bangsar South is open for exclusive preview with a limited-time early bird discount of up to 30%, or from RM1,050 psf. Common facilities are provided on levels 1 and 2 which include a garden gym, meditation and floating yoga decks. function room. badminton courts and serene garden.
EQUINIX INVESTS US$140 MILLION TO BUILD DATA CENTRES IN CYBERJAYA, NUSAJAYA
The Sun, 22/11/2023
Nasdaq-listed digital infrastructure company Equinix Inc has invested a total of US$140 million (RM651 million) to construct two International Business Exchange (IBX) data centres in Cyberjaya and Johor’s Nusajaya. Malaysia will be a significant market for Equinix on a global scale and the company is committed to continue its investments and expansion in the country. Furthermore, the company plans to expand its ecosystem and encourage multinational customers, numbering over 10,000, to establish a presence in Malaysia and offer their services to the local population.
MR D.I.Y. STORE EXPANSION PLAN ON TRACK
The Star, 21/11/2023
MR D.I.Y. Group (M) Bhd aims to open 57 stores across all three of its brands in 4Q23, in line with its five-year expansion plans. The home improvement retailer said its store expansion for the financial year ending 31st December 2023 remains largely on track. In the first nine months of its financial year 2023, MR D.I.Y. saw a net growth of 123 stores across its three core brands – MR. DIY, MR. TOY and MR. DOLLAR – an increase of about 12% from December 2022, with the majority being MR. DIY stores. The group also revealed its five-year growth plan and store opening target of 2,000 stores by FY28 across its core brands, with an emphasis on the flagship MR. DIY brand. This 2,000-store target translates to approximately 19,000 of the population served per store. For the coming financial year, MR D.I.Y. targets to open 180 new stores across all its core retail brands.
MRCA FORECASTS RETAIL INDUSTRY GROWTH OF UP TO 3.5% IN 2024
The Edge, 24/11/2023
Malaysia’s retail industry is expected to grow by 3.0% to 3.5% in 2024, according to the Malaysia Retail Chain Association (MRCA). This is based on a moderate and conservative estimation due to factors such as the increase in the sales and service tax, the rise in raw material costs, and geopolitical issues. MRCA have decided to retain this estimate, although Bank Negara Malaysia recently forecast a gross domestic product (GDP) growth of 4.0%-5.0% for 2024.
WIDAD’S UNIT WINS RM116.8 MILLION JOB TO BUILD FIRST PHASE OF TOK BALI INDUSTRIAL PARK IN KELANTAN
The Edge, 23/11/2023
Widad Group Bhd’s unit has secured a RM116.8 million contract to build Phase 1A of the Tok Bali Industrial Park in Gong Kulim, Kelantan for the East Coast Economic Region Development Council. The contract period spans 36 months starting from 4th December 2023. Widad’s wholly owned unit Widad Builders Sdn Bhd accepted the contract from East Coast Economic Region Development Sdn Bhd.
NCT SMART INDUSTRIAL PARK SEALS ITS FIRST GLOBAL CHIP FIRM
The Star, 23/11/2023
The NCT Group of companies has signed a memorandum of understanding (MoU) with Zhejiang Unity Technology Co Ltd from China, marking the first international semiconductor group to invest and establish a presence in the NCT Smart Industrial Park (NSIP). The semiconductor industry lies at the heart of modern technology, and firmly believe that NSIP is well-equipped to leverage on these prospects. Beyond the positive outcomes for NCT Group, the MoU enables us to contribute to the economic development of Selangor while collectively fostering a thriving semiconductor industry in South-East Asia. The strategic collaboration aimed to foster innovation, strengthen industry networks and create opportunities for cross-border business ventures.
AFFORDABLE HOMES COMING UP IN DISTRICTS OUTSIDE JB
The Star, 22/11/2023
Johor Housing Development Corporation (PKPJ) is planning to focus on building affordable homes outside of Johor Baru starting 2024. The agency had identified three districts to start with, namely Muar, Segamat and Batu Pahat. These three districts have a limited number of Johor Affordable Housing (RMMJ) units. PKPJ had opened up registration for two people’s housing projects (PPR) in Cahaya Senibong (Permas), which offered 400 units, and Ulu Tiram which offered 700 units. All this is part of the Johor government’s target of building 30,000 affordable homes by 2026. PKPJ also working closely with housing developers under the Plan, Design and Review Committee (PDRC) to ensure that the target was achieved.
NON-BUMI UNITS IN MAH SING’S M MINORI TOWER A FULLY BOOKED TOWER B NOW OPEN FOR REGISTRATION
The Star, 22/11/2023
Non-Bumi units at Mah Sing Group Bhd’s M Minori Tower A have been fully booked since its launch on 14th October 2023. M Minori is Mah Sing’s inaugural M Series development in the southern region. With a gross development value (GDV) of RM176 million, the 25-storey Tower A offers 421 units (252 units are non-Bumi units) with built-ups ranging from 570 sq. ft. to 880 sq. ft., with a selling price from RM288,000. Following the positive booking rate for Tower A, the developer has now opened Tower B for registration. Tower B has a GDV of RM269 million and will offer 619 units across 25 storeys. The units will also have built ups ranging from 570 to 880 sq. ft. with a selling price from RM288,000. The whole M Minori development will comprise three blocks of serviced suites with a GDV of approximately RM469 million. The three blocks will consist of a total of 1,526 residential units, with one-bedroom, 1+1 bedroom, two-bedroom, and three-bedroom units. M Minori will also offer two retail lots.
PARAGON GATEWAY PHASE 1 ACHIEVES MORE THAN 90% BOOKED
NST, 20/11/2023
Joland Group Bhd are delighted to announce that Paragon Gateway has already achieved a remarkable booking rate of over 90% in Phase 1, Towers A and B. Paragon Gateway is a joint development between Joland and Kuopacific Group Malaysia. It is situated on 5.24 acres of freehold land in Taman Suria, Johor Bahru, and has a gross development value (GDV) of approximately RM1.2 billion. The serviced apartment towers at Paragon Gateway are 45 stories (Towers A and B) and 47 stories (Towers C and D). There are 2,136 serviced apartments with an estimated selling price of RM400,000 and 48 retail shops in total. More than 300 buyers signed sale and purchase agreements (SPAs) in November 2023. This impressive achievement highlights the enduring attraction and quality of Paragon Gateway in these challenging times. Paragon Gateway offers more than 40 facilities, including an infinity edge pool, wading pool, jacuzzi, children’s adventure zone, sky gym, grill and sizzle, sauna, squash court, and other facilities.
SUTL PROPOSES DISPOSAL OF JOHOR BAHRU PROPERTY FOR RM11.5 MILLION
The Edge, 21/11/2023
SUTL Enterprise has announced its subsidiary Sarandra Malaysia has entered into a sale and purchase agreement for the sale of its property located in Mukim Pulai District, Johor Bahru, at a purchase consideration of RM11.5 million. Sarandra has also entered into a sale and purchase agreement with the same private Malaysian company for the sale of the sheet piles erected or located on the property for a purchase consideration of RM400,000. The property is a freehold land site with a gross land area of approximately 53,190 sq. ft., intended for the development of the existing marina in Puteri Harbour, as well as for the operation of a proprietary yacht club and sports centre. In February 2022, the membership scheme for the yacht club, Puteri Harbour Club, was terminated. As the property had been intended only to be used for Puteri Harbour Club, Sarandra took steps to dispose of the property.
ON COURSE TO REACH HOUSING TARGET BY 2030
The Star, 24/11/2023
Penang has set a target of 220,000 affordable homes by 2030, according to state housing and environment committee chairman. The units would be provided in all five districts, assuring that development would be extended strategically and thoughtfully across various areas. The state has already provided over 150,000 affordable homes which include those already built, being built or being planned. Penang has various affordable housing categories with prices ranging from RM42,000 to RM300,000 per unit. Penang state would introduce a new category of units costing RM100,000 for those with household income of between RM3,500 and RM5,000 a month. The state was also looking at revising some policies concerning the density and plot ratio for projects on the Penang mainland.
MRT CORP’S STUDY ON PENANG LRT SET TO BE COMPLETED BY 1Q24
The Edge & NST, 22/11/2023
Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) has opened a tender for the appointment of a consultant to conduct a study on the Penang light rail transit (LRT) project. The study is expected to be ready by 1Q24 and would provide more details about the Penang LRT project. The implementation of the LRT project is pending a decision by the Transport Ministry to finalise the implementation methods and technical details, namely the alignments and locations of the LRT stations. As such, the details of the costs, implementation methods and the project start date would depend on the Transport Ministry’s decision.
PENANG AIRPORT ARRIVALS UP BY MORE THAN 100%
The Star, 23/11/2023
Visitors to Penang swelled by 138% in 1H24, based on year-on-year airport arrival statistics. The majority was from Indonesia, indicating that healthcare travel has become the major draw of Penang tourism. Based on data provided by Penang International Airport for 1H24, there was a 138% increase in tourist arrivals compared with 1H22. These numbers did not include visitors arriving by land and sea routes. There were 1,682,094 tourists in 1H23; the number in 1H22 was 705,670 tourists. This shows more than a twofold increase. The most number of visitors were from Indonesia at 163,187, followed by Singapore (74,800) and China (15,602). Positive developments can be seen with an increase in direct flights to Penang which include Xiamen Airlines (from Xiamen), Qatar Airlines (Doha) and Firefly (Bangkok). These direct flights are an important aspect to increasing the number of tourists to our state. flydubai, an Emirati government-owned airline in Dubai, had announced the start of direct flights from Dubai to Penang in February 2024.
PHABRITEK OPENS FACILITY IN BATU KAWAN WITH RM100 MILLION INITIAL INVESTMENT
The Sun, 20/11/2023
Phabritek Sdn Bhd, which specialises in the manufacturing of optoelectronic multiplexers, modules and components, has announced the opening of its new manufacturing facility in Batu Kawan with an initial investment of RM100 million. Phabritek, a wholly owned unit of Accelink Technologies Co Ltd, denoted the new facility will primarily focus on the production of optoelectronic multiplexers, modules and components to support modern communication segment such as optical communication.
PENANG TO HAVE MORE INDUSTRIAL PARKS TO MEET INVESTORS’ DEMAND
The Edge, 24/11/2023
The Penang state government is actively planning and developing new international-class industrial parks to meet the high demand for industrial land by foreign and local investors. The development of new industrial parks, through the Penang Development Corporation, would span over 323,749 hectares. The new industrial parks are, among others, Bandar Cassia Technology Park, East Batu Kawan and Penang Science Park South. Apart from focusing on the existing electrical and electronics industry, the state government will focus on making Penang a medical technology hub, developing a supply chain for front-end manufacturing equipment and encouraging research and development and design activities. The state government will also help and encourage more local companies to be involved in the global value chain and strengthen the existing ecosystem. The state government has made a firm commitment to the evolution of infrastructure in forming a conducive investment landscape, which up to now has 11 facilities and infrastructure to meet the demands of companies involved in the digital economy industry.
TAIWAN’S SINYI GROUP, INTERCONTINENTAL HOTELS BUILDING RM1 BILLION RESORT IN PAPAR, SABAH
The Edge, 21/11/2023
Taiwan’s Sinyi Group and UK-based hospitality company InterContinental Hotels Group (IHG) are constructing a RM1 billion five-star luxury resort in Melingsung, Papar, further catalysing Sabah’s hospitality and service industry. The strategic investment is set to provide a multiplier effect on the state’s economy, growing the tourism sector and providing employment opportunities. The 450-room resort would create more than 500 employment opportunities and contribute to the growth of the tourism sector. The Sinyi Group and the IHG chose the right location to build the resort as the area is expected to boom with the construction of the Pengalat-Papar bypass project and the upgrading of the Lok Kawi Road.