Week 52 - 2023
INFLATION HITS 1.5% IN NOVEMBER 2023
NST, 23/12/2023
Malaysia continued to log a gradual rise in inflation after registering a rate of 1.5% last month. This follows the rise in Consumer Price Index to 130.9 from 129 a year ago. The Statistics Department said this was attributed to lower upticks in restaurants and hotels (4.3%), food and non-alcoholic beverages (2.6%) and health (2.3%) groups. For comparison, inflation in Malaysia was lower than in the Philippines (4.1%), Vietnam (3.5%), South Korea (3.3%) and Indonesia (2.9%). However, it was higher than Thailand (-0.4%) and China (-0.5%).
180,000 PROPERTIES IN AMPANG TO BE REVALUED
The Star, 23/12/2023
Owners may see a hike in their assessment tax in 2025 when a property valuation exercise is carried out by Ampang Jaya Municipal Council (MPAJ) next year. The council had received state approval to carry out the exercise. The exercise will involve some 180,000 properties within MPAJ’s jurisdiction. The new appropriate assessment tax rate will be implemented after given approval from the state.
BATU GAJAH ON TRACK FOR STATUS UPGRADE
The Star, 23/12/2023
Batu Gajah is on track towards becoming a municipality. However, its 135,000 population still fell short of the 150,000 requirements for municipal status. Other than the population criteria, a local council must have minimum tax revenue of RM20 million to achieve municipal status. The state government would identify and strategically plan for local authorities in Perak to upgrade their status within the next three to five years. Achieving the target population is feasible, with several new housing projects slated for development in the next five years. MDBG’s administrative area includes five sub-districts, namely Sungai Terap, Belanja, Tanjung Tualang and parts of Sungai Raia and Hulu Kinta.
KPKT NOW KNOWN AS MINISTRY OF HOUSING AND LOCAL GOVERNMENT
The Edge, 28/12/2023
The Ministry of Local Government Development is now known as the Ministry of Housing and Local Government (KPKT). The name was amended based on the decision made during the Cabinet meeting on December 13, 2023 and it will be officially gazetted under the Ministerial Functions Act 1969. KPKT’s vision and mission will continue to be strengthened through eight main functions, namely Affordable Housing, Urban Planning, Landscape Development, Local Government Empowerment, Firefighting and Rescue, Solid Waste Management, Community Empowerment as well as Community Credit and Pawnbroker Companies. Providing affordable housing remains the ministry’s main thrust, with a target of constructing 500,000 housing units nationwide, especially for the B40 and M40 groups through the 12th Malaysia Plan. KPKT, in collaboration with the Madani Government, is committed to achieving the main agenda of advancing the well-being of urban communities and fostering sustainable environments.
SHAH ALAM CITY COUNCIL GRANTS PERMISSION FOR DEMOLITION OF SHAH ALAM STADIUM
The Edge, 25/12/2023
The demolition process of the Shah Alam Stadium for the reconstruction of the new Shah Alam Sports Complex (KSSA) is expected to be carried out soon. This follows the approval given by the Shah Alam City Council (MBSA) for the KSSA development project last Friday, 22nd Dec 2023. The Selangor government was previously reported to have submitted the Planning Permission (KM) plan for the KSSA project on 15th Nov 2023, involving a demolition process of the Shah Alam Stadium with a cost of RM35.5 million. The KSSA reconstruction project covers an area of 76.08ha and is expected to be completed by 2026.
MRT CORP SEEKS FOURTH EXTENSION TO FINALISE TENDERS FOR CIRCLE LINE
NST, 29/12/2023
MRT Corp had requested another three-month extension, until March 2024 to finalise tenders for the rail development. This marks the fourth extension requested by MRT Corp since middle of this year. The extension, effective from November 1, 2023 is seen as crucial for the continuity and progress of the MRT3 and potentially Penang LRT project. The total MRT3 cost is approaching RM40 billion. MRT Corp will start to secure the MRT3 land corridor as early as 2Q24. The acquisition process is expected to involve 1,012 lots of land, covering 842 private lots, 133 government lots, and 37 lots of unknown ownership. However, the alignment for MRT3 had yet to be finalised.
MRCB TO ACQUIRE PJ SENTRAL OFFICE TOWER DEVELOPMENT RIGHTS FROM PKNS FOR RM270 MILLION
The Edge, 23/12/2023 & NST, 25/12/2023
Malaysian Resources Corp Bhd (MRCB) has proposed to acquire the rights to carry out the development of an office tower in the PJ Sentral commercial development from the Selangor State Development Corp (PKNS), for RM270 million. The acquisition consideration will be satisfied through the disposal of malls and several residential units to PKNS, and funding through internally generated funds.
The group plans to dispose of Plaza Alam Sentral Mall and the adjoining land in Section 14, Shah Alam, to PKNS, for RM178 million. Additionally, several residential units — 11 units of Residensi Vivo, 9 Seputeh and 20 units of Residensi Tria Seputeh located adjacent to Old Klang Road, as well as 13 units of The Residences at the St Regis Kuala Lumpur in KL Sentral — will be sold to PKNS for RM79.92 million.
EKOVEST PARTNERS CHINA’S CICO TO EXPLORE INFRASTRUCTURE PROJECTS IN MALAYSIA
NST, 27/12/2023, The Edge & The Star, 28/12/2023
Ekovest Bhd is teaming up with Zhejiang Communications Investment Group Co Ltd (CICO), the largest state-owned enterprise established by the Zhejiang provincial government in China, for the joint exploration and development of infrastructure and other projects in Malaysia. Ekovest signed the one-year collaboration agreement with CICO’s wholly owned overseas subsidiary, Universal Cosmos Co Ltd, on Wednesday, 27th December 2023. The two groups will participate in infrastructure concession assets, large-scale infrastructure projects, food security and trading initiatives, retailing ventures and transit-oriented development (TOD) projects.
BANK RELOCATES TO OFFER BETTER SERVICES
The Star, 27/12/2023
MBSB Bank Putrajaya has relocated to Galleria PJH in Presint 4, Putrajaya. This relocation aims to provide comfort and improved banking services to customers, especially the local community. The branch also housed its Central Region Commercial Banking Centre. The establishment of the Central Region Commercial Banking Centre is to provide direct banking services to small and medium enterprises (SME) owners, such as capital and operational expenditure financing, as well as working capital.
SAUDI ARAMCO MULLS RETAIL OPERATIONS IN MALAYSIA, SOUTHEAST ASIA
The Edge, 28/12/2023, The Star & The Sun, 29/12/2023
Saudi Aramco, one of the world’s largest integrated energy and chemicals companies, is looking at expanding its downstream activities in Malaysia as it aims to make Pengerang Integrated Complex (PIC) in Johor the largest hub in Southeast Asia. Aramco is committed to expanding its Pengerang facilities by adding petrochemical and gas downstream activities for it to become the largest hub in Southeast Asia. Aramco had teamed up with Petronas to set up the Pengerang Refining Company Sdn Bhd and Pengerang Petrochemical Company Sdn Bhd, in Pengerang, Johor, with an investment of US$7 billion (RM32 billion) in the joint venture.
CREST BUILDER SECURES RM315 MILLION SERVICED APARTMENT PROJECT
The Sun, 28/12/2023
Crest Builder Holdings Bhd’s has secured a RM314.5 million contract from UEM Land Bhd to construct 1,334 units of serviced apartments in two 53-storey blocks in Cheras, Kuala Lumpur. The project also comprised a level of sub-basement car park, elevated podium car parks, commercial retail and office spaces and a level of recreation facilities. The construction works would take approximately 39 months to complete from its scheduled site possession date of June 1, 2024.
SSF HOME SET TO EXPAND DOMESTIC REACH
The Star, 27/12/2023
SSF Home Group Bhd intends to strengthen its presence via its expansion plans to open more retail outlets in various towns and cities in Malaysia, in particular the northern and southern regions. The home-grown furniture and home living product retailer said the expansion into new areas would enable the group to build awareness and increase the visibility and presence of its brand.
QUEENSBAY MALL, THE MINES RECEIVE GREEN CERTIFICATION
The Star, NST & The Sun, 28/12/2023
CapitaLand Malaysia REIT Management Sdn Bhd’s (CMRM) two of its retail properties in Malaysia have been awarded the prestigious Green Mark certification by the Building and Construction Authority of Singapore (BCA). Queensbay Mall has achieved the Green Mark Platinum, while The Mines has obtained a Green Mark GoldPLUS (Provisional) certification. Sustainable building features at Queensbay Mall include an energy-efficient air conditioning system that is integrated with precise chiller plant measurement and verification instrumentation whilst at The Mines, the air conditioning infrastructure is integrated with an advanced chiller plant management system. The BCA Green Mark award recognises organisations who have made outstanding achievements in integrating environmentally friendly features into the built environment.
SHANGRI-LA HOTELS SIGNS NEW MANAGEMENT AGREEMENT
The Star, 28/12/2023
Shangri-La Hotel (KL) Sdn Bhd (SLKL) has entered into a new hotel management agreement (HMA) with Shangri-La Hotel Management (MY) Pte Ltd (SLMY). Under the new HMA, SLMY will provide hotel management, sales, marketing and reservation services to SLKL for a term of five years effective Jan 1, 2024. SLKL may choose to extend under the same conditions for an additional five years, and either party may then choose to extend for a further five years with mutual consent.
PERAK PROVIDING SITE FOR UNIVERSITY IN PROTON CITY
The Star, 24/12/2023
The Perak government will provide a location for the construction of a university of international standards in Proton City, Tanjung Malim, as proposed by Zhejiang Geely Holding Group Co Ltd (Geely). The matter was discussed two weeks ago, during the company’s senior management visit to Perak. However, no specific period has been set for the construction of this university, as well as other details.
The construction of the university was seen as significant, especially in providing job opportunities to various levels of society, especially the youth. In October 2023, Geely and DRB-Hicom signed a joint venture agreement for the development of the Automotive Hi-Tech Valley (AHTV) in Tanjong Malim, Perak, which is expected to attract RM32 billion in investments.
PENANG EXTENDS HOME OWNERSHIP CAMPAIGN UNTIL DECEMBER 2024
The Edge, 24/12/2023
The Penang state government has extended the Home Ownership Campaign (HOC) 3.0 from 1st January 2023 till 31st December 2024 as part of the efforts to promote the ownership of Affordable Homes (RMM). The extension also sought to meet the state government’s target of providing 220,000 units of RMM to Penangites by 2030 to support Penang 2030 Vision. The HOC has proven successful to boost the real estate industry in Penang which led to the continuation of this campaign.
Through the campaign, the state government is offering a 10% discount for RMM units priced at RM300,000 on the island, reducing it to RM270,000. In Seberang Perai, RMM units priced at RM250,000 will be discounted to RM225,000 with a minimum area of 850 sq. ft.
PENANG STATE INITIATIVE PROJECTS EXPECTED TO BOOST ECONOMY AND TOURISM
The Star, 27/12/2023
Penang state has announced and kickstarted several major infrastructure development projects as part of the Penang Unity Manifesto 2023. These are hoped to improve the quality of life for locals, spur economic growth and elevate both the state’s tourism and investment appeal in the eyes of the world. Here are the major events of the year that made the headlines:
Penang Hill cable car, a lower station will be built near the Penang Botanic Gardens, from which 43 gondolas would ply a scenic route above lush tropical rainforests. These will carry 1,000 passengers per hour and complement the century-old funicular railway in Ayer Itam. The planned line, near the existing Jeep track, means no new roads need to be opened. Most of the towers would be located near the lower and upper stations. Physical works are expected to commence in 2Q24, with completion expected in 18 to 24 months.
Silicon Island, a 2,299 acres man-made island off Penang island’s southern coast is poised to be the state’s economic catalyst and tourism jewel for decades to come. With a Green Tech Park (GTP) and the Heart of the Island (Hoti) business district as its main components, it is expected to generate significant economic impact through some 220,000 direct, indirect and induced jobs across multiple sectors by 2050. Reclamation works started on 1st September 2023 and will be completed in phases over the next 15 years. The first phase, involving 1,260 acres, should be done by 2027. Construction of common infrastructure is slated to begin in 2H24, while the first piece of industrial land is expected to be handed over sometime in 2025. The 2,699 acres GTP will redefine the landscape of industrial parks with its forward-thinking approach to environmental responsibility. Not only would the site be enveloped in greenery, its first phase will also be fully powered by renewable energies and set new standards for sustainability. GTP’s cutting-edge digital infrastructure as well as Penang’s well-established standing as a crucial, global electronics-and-electrical hub, ideally positions it to attract a wide array of high-value sectors. The strategic goal is to advance high-value technology components, with research, design and development, high-tech manufacturing, advanced packaging, automation, robotics, artificial intelligence (AI) and the Internet of Things (IoT) being key focus areas. Situated close to GTP will be the Global Business Services (GBS) Software Campus, a hub of essential industry facilities such as Centres of Excellence (CoEs), innovation and R&D suites, educational institutions, training facilities and incubator labs – to facilitate collaborations and cross-pollination of ideas to drive innovation. Hoti is envisioned as a world-class tourist destination that seamlessly integrates leisure, commerce and community, complementing the existing George Town heritage zone. With a multi-faceted hub comprising a retail precinct with trendy spaces, business district and future-ready office facilities, Hoti will offer visitors an experience of culture and entertainment.
Ayer Itam-Tun Dr Lim Chong Eu Expressway Bypass, also known as Package Two, is one of three toll-free road projects included under the RM6.3 billion Penang Undersea Tunnel project. The RM851 million bypass will serve as an alternative route between the central, northern and southern parts of Penang Island, expected to alleviate daily congestion and significantly reduce travel time. Long-term benefits would be felt by the 300,000-plus population living or working within the vast Ayer Itam and Paya Terubong townships. The bypass is slated for completion by middle of 2025 and is currently halfway complete. The other two road projects are the North Coastal Paired Road (Package One) linking Tanjung Bungah and Teluk Bahang, and Gurney Drive-Tun Dr Lim Chong Eu Expressway Bypass (Package Three).
New ferries which recommenced in August 2023 with the arrival of four new, fast vessels. Named Teluk Bahang, Teluk Duyung, Teluk Kampi and Teluk Kumbar, they each cost RM18 million and are capable of traversing the channel in just 10 minutes. Each ferry can accommodate 150 passengers in a comfortable air-conditioned cabin while an additional 50 motorcycles or bicycles can be ferried on a partially open deck ferry. The arrival of the new ferries also saw major upgrades done to both the Raja Tun Uda Terminal in George Town and Sultan Abdul Halim Terminal in Butterworth. They are now air-conditioned and comfortable, with WiFi, phone-charging docks and facilities for the disabled. A new Penang Bridge Sunset Cruise was also introduced in collaboration with a restaurant operator. The cruise every Saturday and Sunday evening (5pm to 8pm) uses the spare ferry and departs from the George Town terminal. Priced at RM148 for adults and RM68 for children, the cruise includes a buffet dinner on board.
Penang Light Rail Transit (LRT), the Federal Government has committed to provide funding for the Penang LRT project which will be undertaken by Mass Rapid Transit Corp Sdn Bhd (MRT Corp). It was announced that instead of just stretching from Bayan Lepas to Komtar, the LRT line will go all the way to Tanjung Bungah, covering a 29km distance with 27 stations. MRT Corp had called for tender to appoint a research consultant for the project. The state had handed over various technical, feasibility and alignment studies on the LRT project to MRT Corp, adding that the costs, implementation and start date of the project would be decided by the Transport Ministry.
JIANKUN TO BUY PENANG-BASED PROPERTY FIRM TO EXPAND INTO NORTHERN REGION
The Edge, 23/12/2023 & NST, 25/12/2023
Property development and construction group Jiankun International Bhd is acquiring 99.99% equity interest in Penang-based Oriental Link Properties (M) Sdn Bhd (OLPSB) from the privately held property development company’s two directors. The proposed acquisition is expected to provide the group an opportunity to venture into property development in the northern part of Peninsular Malaysia. It has entered into a conditional share sale and purchase agreement (SSPA) with the two directors for the proposed acquisition.
OLPSB is currently developing Panchor Sanctuary Garden, a 7.58-acre residential development in Nibong Tebal, Penang, in a joint venture with the owner of the land. The project has been granted a development order until Jan 31, 2024 and an approved building plan until April 16, 2024. OLPSB is also the owner and developer of a commercial project being developed on Lot 334 Jalan Paboi, as well as a piece of land in Jalan Kampung Bukit, Bayan Lepas. Through the acquisition of OLPSB, the group may start the development of the Panchor Sanctuary Garden project in 3Q24. Panchor Sanctuary Garden boasts a gross development value of RM72.69 million, with a gross development cost of RM54.54 million.
WENTEL ENGINEERING TO BUILD NEW PLANT FROM IPO MONEY
NST, The Star & The Sun, 29/12/2023
Wentel Engineering Holdings Bhd, an engineering company principally involved in the fabrication of metal parts, plans to build a new manufacturing plant largely from the proceeds of its initial public offering (IPO). Proceeds from the IPO will be utilised to part finance the construction of two blocks of single-storey factory (with double-storey office) and two blocks of workers’ hostel (new manufacturing plant) and purchase of new machinery and equipment. The new manufacturing plant is expected to provide the Wentel Engineering with net additional built-up area of approximately 254,381 sq. ft. for its operations and workers’ accommodation.