Week 9 - 2024
OVER 85% OF APPROVED MANUFACTURING PROJECTS IMPLEMENTED
NST, 24/2/2024
More than 85% of the manufacturing projects approved in 2021-2023 have been implemented to date. A total of 2,386 manufacturing projects were approved during that period, and generally these projects would require 18 to 24 months to be completed, depending on their complexity. The total approved investment of RM329.5 billion recorded for 2023 reflects the recovery and revival of the national economy.
Several projects succeeded in being implemented in a short duration of less than 18 months includes Enovix Malaysia Sdn Bhd (a silicon battery company) which was able to implement its project in less than six months. Other companies mentioned were Ferrotec Manufaturing Malaysia Sdn Bhd, which established Ferrotec Holdings’ first manufacturing facility for electromechanical assembly and advanced material fabrication for semiconductor equipment in Southeast Asia, and Ultra Clean Technology (Malaysia) Sdn Bhd, which invested in a capacity expansion project in Penang.
LOCAL PRODUCER PRICE INDEX DOWN 0.6% IN JANUARY 2024
The Edge, The Star & The Sun, 28/2/2024
Malaysia’s Producer Price Index, which measures the prices of goods at the factory gate, declined 0.6% in January 2024 from a negative 1.3% in December 2023. The mining sector decreased by 1.3% (December 2023: -3.4%), affected by the drop in the index of extraction of natural gas (-6.8%). At the same time, the manufacturing sector decreased by 0.9% (December 2023: -1.5%) due to the decline in the manufacturing of coke & refined petroleum products (-11.3%) and manufacturing of food products (-3.6%) indices. The electricity & gas supply sector continued to decline by 0.8% (December 2023: -0.6%). Nevertheless, the agriculture, forestry & fishing sector went up by 3.2% (December 2023: +1.3%), contributed by animal production (5.4%) and growing of perennial crops (3.6%) indices. The water supply index posted an incline of 0.6% last month (December 2023: 0.4%). Malaysia’s crude palm oil was traded at RM3,800 in January 2024, despite the Malaysian Palm Oil Council’s projection of a higher average of RM4,000 per tonne for 2024.
JANUARY RECORDS HIGHER LOAN GROWTH, BOOSTED BY INVESTMENT-RELATED LOANS, HOUSEHOLD DEMAND – BNM
The Edge, 29/2/2024
Malaysia saw an overall improvement in loan growth, with credit to the private non-financial sector growing at a faster pace of 5% year-on-year (y-o-y) as at end-January 2024, compared with 4.7% in December 2023. Outstanding loans grew 5.4% y-o-y, as compared to the 4.9% recorded in December 2023. Outstanding business loan growth climbed 4.2% in January 2024 compared to 3.6% in December 2023, on the back of higher growth in investment-related loans. Growth in outstanding loans to small and medium enterprises remained forthcoming albeit with a marginal decline to 8% from 8.2% in December 2023, while outstanding corporate bonds moderated to 3.6% from 4.2%.
In the household segment, outstanding loan growth increased to 6% from 5.6% with sustained growth across most loan purposes. The aggregate loan-to-fund ratio remained broadly stable at 81.6% (from 81.8%).
GOVERNMENT WIDENS SERVICE TAX SCOPE TO INCLUDE MAINTENANCE AND REPAIR JOBS
The Edge, 27/2/2024
The government has decided to expand the 6% service tax to 8% come March 1, 2024, to include almost all types of maintenance and repair (M&R) jobs. According to a federal government gazette on an amendment to the service tax regulation, the service tax would be imposed on M&R services starting from Monday (February 26, 2024). This sudden inclusion of M&R services as a taxable service was accompanied by various other previously announced inclusions, namely brokerage, underwriting, karaoke, and logistics services. The service tax was previously only imposed on M&R services for motor repair and ad hoc maintenance work on assets covered under a maintenance management contract. However, two exclusions of the services tax relating to the maintenance of residential buildings and M&R services of joint management corporations (JMCs), such as building maintenance charges.
SECTION 11 OF WEST COAST EXPRESSWAY AT 99.33% COMPLETION, SAYS PERAK MB
The Edge, 29/2/2024
The progress status of Section 11 of the West Coast Expressway (WCE) at the South Taiping Interchange, which is connected to the North South Expressway (PLUS) at the Changkat Jering Interchange, has reached 99.33%. The route, which is expected to open soon before Hari Raya Aidilfitri on April 10, 2024, will complete the entire length of the WCE in Perak.
AXIS-REIT TO ACQUIRE INDUSTRIAL COMPLEX AT BUKIT RAJA FOR RM49 MILLION
The Edge & The Sun, 26/2/2024
Axis Real Estate Investment Trust’s (Axis-REIT) trustee, RHB Trustees Bhd, has entered into a sale and purchase agreement to acquire an industrial complex from Amsteel Mills Sdn Bhd (AMSB) for a cash consideration of RM49 million. The industrial complex, located in the Bukit Raja industrial area, is currently occupied by AMSB, which is involved in the manufacturing and marketing of steel bars and wire rods. The acquisition adds on to three existing properties that they already own in Bukit Raja, a prominent industrial area that is well connected to major highways. This property is also adjoining Axis-REIT’s existing property, Axis Facility 2 @ Bukit Raja. The acquisition is targeted to be completed by 3Q24.
MCE TO DISPOSE OF LAND IN SETIA ALAM FOR RM44 MILLION CASH
The Edge, 26/2/2024
Automotive electronic parts manufacturer MCE Holdings Bhd is disposing of a piece of freehold vacant land measuring approximately 142,765.83 sq. ft. in Setia Alam, Selangor for RM43.69 million cash to Mega First Corp Bhd’s indirect wholly owned unit Grant Ascent Sdn Bhd. The land was specifically designated for the development of a medical centre and other ancillary buildings for medical related services. The proposed disposal is expected to be completed in 4Q24.
MAJESTIC GROUP REBRANDS TO MAJESTIC GEN; ANNOUNCES 15 PROJECTS WITH GDV OF RM3.3 BILLION
The Edge & The Star, 28/2/2024
Majestic Group announced that it is rebranding its name to Majestic Gen Sdn Bhd during the official launching ceremony of Majestic Gen at EQ Kuala Lumpur hotel here on Tuesday, February 27, 2024, and relocating its office from Pudu to Pavilion Damansara in 2Q24. Following the rebranding exercise, Majestic Gen announced its plans to launch a total of 15 projects with a gross development value (GDV) of RM3.3 billion for 2024 (six projects) and 2025 (nine projects). To date, the company has completed projects worth a total GDV of RM1.7 billion.
The upcoming launches will involve residential, commercial, and industrial developments in the Klang Valley, Selangor, Perak, Negeri Sembilan, Penang and Johor. These upcoming developments will be integrated with energy-efficient solutions and sustainable materials such as solar panels, electric vehicle charging stations, facial recognition, and smart home features. The company will strive to obtain GreenRE certification for its properties.
The first project is expected to be launched in 3Q24 with an estimated GDV of over RM200 million. It will be a serviced apartment project located on Jalan Klang Lama.
KPS TO DISPOSE OF PLAZA PERANGSANG FOR RM46 MILLION
The Edge, 1/3/2024
Selangor state-controlled Kumpulan Perangsang Selangor Bhd (KPS) is disposing of Plaza Perangsang in Shah Alam, a 36-year old building which the group occupies as its main office, for RM46 million to Perbadanan Kemajuan Negeri Selangor (PKNS). KPS intends to maintain its office at the 17th floor of the 26-storey building and will enter into a tenancy agreement with PKNS upon completion of the proposed disposal. The disposal is estimated to be completed within the next seven months.
DISTINCTIVE WORLD TO UNVEIL TUJU@DUTA NORTH WITH RM750 MILLION GDV IN EARLY MARCH 2024
The Star, 27/2/2024 & NST, The Edge, 28/2/2024
Distinctive World Sdn Bhd, a property joint venture between Distinctive Capital Sdn Bhd and Eccaz Sdn Bhd, will launch a new development called TuJu@Duta North on March 3, 2024. The condominium project will have a gross development value (GDV) of RM750 million, situated on 4.52 acres of commercial plot and comprises two 41-storey apartment towers – Tower A and Tower B, and Annexe Block. The condominiums have a total of 932 units and vary in sizes from 710 sq. ft. to 1,442 sq. ft., with an average price of RM650 psf. Prices for the units will start from RM440,960. Both towers offer facilities spanning from Levels 6 and 41, including gaming rooms, sky dining areas, theatre lounges, computer lounges, and reading lounges. The Annexe Block comprises 38 units of one and two storey of retail spaces, with facilities including electric vehicle-ready car park bays, commercial spaces, and amenities on Level 9, catering to recreational needs such as a workout terrace, basketball court, badminton court and a multipurpose hall. It is positioned strategically with access to the city via Jalan Kuching and major expressways like Duke, PLUS, SPRINT, NKVE, Damansara Link and Penchala Link. The development is slated for completion by 3Q27.
Once Tuju Residences is completed, the developer plans to develop another project on an around four-acre site adjacent to Tuju.
SOUTHERN SCORE WINS RM618 MILLION CONTRACT TO BUILD TWO APARTMENT BLOCKS
The Edge, 29/2/2024
Southern Score Builders Bhd, formerly known as G Neptune Bhd, has won a contract amounting to RM618.24 million to construct two blocks of apartment suites in Setapak, Kuala Lumpur. The contract was awarded by property developer Platinum Victory Development Sdn Bhd. The two 47-storey blocks will comprise 946 units and 1,136 units of apartment suites respectively and 55 units of commercial space.
INCENTIVES FOR FIRMS MOVING TO TUN RAZAK EXCHANGE
NST, 24/2/2024
Prime Minister launched the Tun Razak Exchange (TRX) as Malaysia’s International Financial Centre (IFC) on February 23, 2024, and additionally announced the incentives for companies relocating there. The incentives include an industrial building allowance, tax exemption on 70% of the statutory income for five years for property developers and stamp duty exemption on loan and service for TRX Status companies. The launched of TRX also represents a milestone forward in the government’s mission to renew the country’s economic and financial architecture through the Madani Economy. With more than 30,000 employees, including 20,000 knowledge workers, TRX is a bustling business hub that is expected to drive economic growth and innovation and create jobs.
TENANT MIX REVEALED FOR SENTUL PROPERTY
The Star, 26/2/2024
Key tenants have been announced for the TigaTiga retail space at Laman Seni Harmoni 33 (LSH33), a new mixed commercial and condominium development in Sentul, Kuala Lumpur. TigaTiga has 36 commercial units with a net lettable area of 113,000 sq. ft. with anchor tenant Village Grocer occupying 20,000 sq. ft. on the lower ground floor. Other tenants include R Pharmacy, Phraya Thai, Maru Cafe by MyNews, Lim Seong Hai Lighting and Knight Auto. The development, which began construction in June 2021, was nearing completion with nearly 97% of residential units sold. LSH33 completed its milestone topping up ceremony on October 9, 2023, and is currently preparing for certificate of completion and compliance (CCC) inspections. TigaTiga is slated to open in 3Q24.
AEON PLANS TO OPEN NEW STORE NEAR MITEC BY END OF 2025
The Edge, 24/2/2024
AEON Co (M) Bhd is planning to open a new AEON store, scheduled to be open by the end of 2025, near the Malaysia International Trade and Exhibition Centre (MITEC). The company will also open a new AEON store in Setia City Mall, Shah Alam, in March 2024. The company is committed to further expanding its business, including fully renovating three existing AEON stores. To date, AEON has a total of 28 malls, 34 stores, seven MaxValu, 64 AEON Wellness and 45 DAISO outlets across the country.
METROJAYA AT MID VALLEY MEGAMALL TO CLOSE FOR RENOVATION FROM FEBRUARY 27, 2024
The Edge, 26/2/2024
Malayan United Industries Bhd’s (MUI Group) Metrojaya department store at Mid Valley Megamall will close for renovations on Tuesday, February 27, 2024, and will be rebranded to MJ by Metrojaya when it reopens in September 2024. There will also be an update to Metrojaya’s house brands, such as The East India Company, Somerset Bay and Cape Cod, to attract a new generation of fashion-conscious consumers. Metrojaya has also recently introduced a batik fashion brand called Indie, menswear brand Benjamin Barker, and Scentses+Co, an online subscription fragrance platform that is expanding to have a physical space to sell international fragrance brands.
TH PROPERTIES AND MRCB LAUNCH PADANG RESIDENCES IN RM3.09 BILLION KOTA SEMARAK MIXED DEVELOPMENT IN KL
The Edge, 26/2/2024 & The Star, 27/2/2024
TH Properties Sdn Bhd and Malaysian Resources Corp Bhd (MRCB), through a joint-venture company named 59 Inc Sdn Bhd, officially launched serviced apartment Padang Residences on Monday, February 26, 2024. Padang Residences is part of the RM3.09 billion Kota Semarak mixed development in Jalan Sultan Yahya Petra, Kuala Lumpur. Kota Semarak is a 27-acre leasehold mixed-development project to be developed in three phases. It will comprise serviced apartments, shop offices and a retail mall. The entire development is expected to be completed by June 2027.
Occupying 7.26 acres, the RM857 million Padang Residences will have four towers, with a total of 1,226 units. The built-up areas will range between 802 sq. ft. and 2,400 sq. ft. for two to four bedroom units. Selling prices are from RM580,000 to RM1.45 million. 100 units have been dedicated for Federal Territories Affordable Housing Project (RUMAWIP) units which will have a built-up area of 802 sq. ft. at a selling price of RM300,000. The development will also have 29 units of three-storey shop offices with selling prices starting from RM3.7 million. Padang Residences is slated for completion by February 2027.
Some green features to be incorporated in Padang Residences are an electric vehicle charging station, scooter station, multi-tier security, waste management system and rainwater harvesting system. The target market consists of urban dwellers, young professionals and small families. The development is accessible via the Duta Ulu-Kelang Expressway (Duke), with close proximity to amenities such as KLCC Park, Kelab Golf Titiwangsa PDRM and Setapak Golf Range, Kuala Lumpur Hospital, National Heart Institute and Universiti Teknologi Malaysia Kuala Lumpur.
ANCUBIC GROUP UNVEILS SALES GALLERY FOR ANCUBIC HARMONI MIXED-USE DEVELOPMENT IN TANJUNG DUA BELAS, SELANGOR
The Edge, 26/2/2024
Ancubic Group unveiled the sales gallery of its Ancubic Harmoni mixed-use development in Tanjung Dua Belas, Selangor on February 25, 2024. Ancubic Harmoni is spread across a 33-acre tract, comprises low-rise commercial projects, mixed and high-rise residential developments, medical and wellness facilities, and learning centres. The entire development will feature various open spaces, a 24-hour security system, walkways, bicycle paths, landscaped gardens, among other facilities and will be provided with green features, such as solar power system in common and landscaped areas, electric vehicle charging stations, and a rainwater harvesting system to provide watering for landscaping. The RM2.5 billion Ancubic Harmoni has nine parcels which will be developed in four phases.
Phase 1 comprising Parcel 1, 2 and 8, will feature commercial components, which will be officially launched at a later date. Parcel 1 measuring 4.66-acres is a commercial project named Botanical Pavilion. It will feature 46 units of 3½- and 4-storey shops with elevators, with land size of 21 ft. by 75 ft., and built-up area of 5,403 sq. ft. Parcel 2 will be spread across 3.91 acres, and consists of serviced apartments, office spaces and retail units. Parcel 8 will comprise a commercial development named Village Pavilion, with components such as SoHo apartments and retail units. The group has secured Village Grocer as key tenant in the Village Pavillion.
Ancubic Harmoni is accessible via highways such as the Shah Alam Expressway (Kesas), Kemuning-Shah Alam Highway (LKSA), North-South Expressway Central Link (Elite), South Klang Valley Expressway (SKVE), and Maju Expressway (MEX).
PLATINUM VICTORY LAUNCHES PV22 RESIDENCES
The Star & The Edge, 28/2/2024
Property developer Platinum Victory has launched PV22 Residences, a mixed development with a concept of balanced living located in Setapak and has a gross development value (GDV) of RM1.3 billion. The development features a commercial centre, The Palette at PV22, that is slated to host amenities such as food and beverage outlets, health and wellness centres and grocery shops within walking distance from the residential apartments. The residences offer dual-key units, which multigenerational families will have the option of more privacy and individualised space, while at the same time maintaining close proximity among family members. The units also come with bathrooms which are larger and can accommodate wheelchair-bound residents. The residences also feature wheelchair-friendly ramps.
Strategically located within easy access via Setiawangsa Pantai Expressway (SPE/DUKE 3), Jalan Genting Kelang, and the Middle Ring Road 2 (MRR2), PV22 Residences are also near light rail transit (LRT) stations of Wangsa Maju, Sri Rampai and Taman Melati.
TROPICANA BUYS RM224 MILLION KOTA DAMANSARA LAND FROM PKNS FOR RM2.8 BILLION PROJECT
The Edge, 1/3/2024
Property developer Tropicana Corp Bhd is acquiring a piece of leasehold land in Kota Damansara for RM224 million from Perbadanan Kemajuan Negeri Selangor (PKNS) to be developed into a residential area comprising four to five tower blocks of serviced apartments, with an estimated gross development value of about RM2.8 billion. The land, measuring 7.79 acres, is situated adjacent to Tropicana’s mixed development, Tropicana Gardens. The development is set to be developed in multiple phases comprising 3,200 units serviced apartments, complete with condominium facilities and a small retail component.
ECOWORLD TO LAUNCH THREE DUDUK SERIES PROJECTS IN 2024
The Edge, 29/2/2024
Eco World Development Group Bhd (EcoWorld) announced that it will be launching three duduk series products this year during the opening ceremony of Se.duduk D’Kajang sales gallery at Jalan Kajang Villa. The three duduk series projects are Riang @ D’Eco Majestic, Santai @ D’Eco Spring and Se.duduk D’Kajang, which are expected to be launched in 3Q24.
Se.duduk D’Kajang is situated on a 6.92 acres of freehold land along Jalan Kajang Villa, and has a gross development value of RM500 million. The development will comprise residential and commercial components. The residential will have five towers, comprises a total of 1,220 units with two built-ups – 550 sq. ft. studio apartment selling for RM270,000 and a 1,000 sq. ft. going for below RM500,000 with three bedrooms and two bathrooms. The commercial component of Se.duduk D’Kajang is called Se.duduk Square with 25 commercial units. The development is slated for completion in 3Q27.
LANDMARKS UNIT’S RECEIVER AND MANAGER FINDS BUYER FOR LANGKAWI LUXURY RESORT
The Edge, 24/2/2024
Landmarks Bhd said a buyer has been found for its wholly-owned unit Andaman Resorts Sdn Bhd’s (ARSB) luxury resort, The Andaman, in Langkawi. ARSB’s receiver and manager (R&M) Deloitte Restructuring Services PLT had entered into a binding agreement with Mutiara Hotels & Resorts Sdn Bhd on Monday, February 19, 2024, for the sale of the charged asset.
BRIDGE DATA TO BUILD ITS LARGEST DATA CENTRE IN MALAYSIA
NST, 1/3/2024
Bridge Data Centres (Bridge Data) is expanding its presence in Malaysia by acquiring new land in Selangor to build its third data centre, MY02, in Cyberjaya. The new data centre is expected to be the largest among the three developments. In partnership with Cyberview Sdn Bhd (Cyberview), the expansion will increase Bridge Data’s IT capacity by about 87 MW across three phases. Each phase involves constructing a three-story data centre.
In 2023, Cyberjaya witnessed a surge in data centre investments, solidifying its position as a global technology hub. It is currently home to 15 commercial and captive data centres including hyperscale, as well as the location for 90% of Malaysia’s co-location data centres.
LOKE: CABINET HAS GIVEN NOD FOR PENANG INTERNATIONAL AIRPORT EXPANSION, TO COST RM1 BILLION
NST, The Edge & The Star, 28/2/2024
The government has given its approval for the expansion and upgrade of the Penang International Airport (PIA) worth RM1 billion, which will be handled by Malaysia Airports Holdings Bhd (MAHB). The project can begin immediately and be completed within four years.
FEDERAL GOVERNMENT HAS APPROVED 510 PROJECTS IN JOHOR WORTH RM4.7 BILLION
The Edge, 29/2/2024 & The Sun, 1/3/2024
The federal government has approved a total of 510 projects in Johor this year with a cost of RM4.7 billion. This included the Johor-Singapore special economic zone and special financial zone, highway upgrading projects, flood mitigation plan, upgrading works for the Sultanah Aminah Hospital and construction of Sultanah Aminah Hospital 2, upgrading works for the Sultan Iskandar Building and Sultan Abu Bakar Complex, proposal for traffic dispersal and public transport upgrade in Johor Bahru, and the Johor water supply project. These projects are aiming for the country’s economic growth and recognising Johor’s potential to become a new economic hub.
SABAH TO RESTORE RAZED BRITISH COLONIAL BUILDING
The Star, 29/2/2024
The old British North Borneo Chartered Company office building which was destroyed in a fire years ago is set to be restored. This is part of the Sabah integrated cultural mapping system development project, and the study of the old welfare office building (that used to be in Kota Kinabalu) restoration project which was approved by the state government this year. A funding of RM2 million has been allocated for the mapping development system, while RM200,000 has been set aside for the study of the old welfare office restoration project. The mapping system is set to see the redevelopment or restoration of the British North Borneo Chartered Company. The plan is to preserve the historical site and the building into a cultural art gallery that would boost Sabah’s efforts to nurture its cultural heritage.