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Research ‘THE WEEK THAT WAS’ 14th January – 20th January 2019 Knight Frank Malaysia Prepared by: Research & Consultancy Knight Frank Malaysia Suite 10.01, Level 10 Centrepoint South Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur T: +603 228 99 688 F: +603 228 99 788
Table of Contents
(A) RESIDENTIAL / TOWNSHIP ................................................................................. 6
Affordable housing in Bangsar South 75% taken up (EdgeProp.my, 15 th
January 2019) .......................................................................................................................... 6
S P Setia's Avis 2 based on ideal M'sian home (EdgeProp.my pullout, 18th
January 2019) .......................................................................................................................... 6
Eco World breaks new ground with Simfoni (New Straits Times, 17 th January
2019)........................................................................................................................................... 7
Affordable living in Semenyih (The Star, 18th January 2019) ................................. 8
(B) RETAIL .................................................................................................................. 8
Retail sector to see lower growth this year, says RGM (The Malaysia Reserve,
14th January 2019) ................................................................................................................. 8
Data drives retailers (The Star, 17th January 2019)..................................................... 9
Building value for a grocer brand (The Star, 14th January 2019) .......................... 9
Pizza Hut Malaysia set to open its 400th store (Bernama, 16th January 2019)10
(C) COMMERCIAL / OFFICE ..................................................................................... 11
Mammoth Empire: Tower H tenanted, including by Grab (New Straits Times,
17th January 2019) .............................................................................................................. 11
Colony@Mutiara Damansara marks Selangor debut of Colony
th
(EdgeProp.my, 15 January 2019) ................................................................................ 11
All-female co-working space HelloHERA opens in KL (The Malay Mail, 17th
January 2019) ....................................................................................................................... 12
Owner of project told to buy Medan Imbi land or lose right to project (The
Star, 16th January 2019) .................................................................................................... 12
Medan Imbi building owner identified (The Edge Financial Daily, 18th
January 2019) ....................................................................................................................... 12
(D) MIXED DEVELOPMENT ...................................................................................... 13
Mah Sing recognised by Malaysia Book of Records (New Straits Times, 17 th
January 2019) ....................................................................................................................... 13
Vanke to focus on Jalan Raja Chulan mixed-use development project this
year (The Malaysian Reserve, 14th January 2019) .................................................... 13
HCK takes over Empire Remix 2 project, to be rebranded as education city
(The Edge Financial Daily, 16th January 2019) .......................................................... 14
Three years on, Kg Baru redevelopment plan remains challenging for KBDC
(The Malaysian Reserve, 16th January 2019) ............................................................. 15
Big plans for Gurney foreshore (The Star, 17th January 2019) ............................ 16
RAC: Best time to redevelop rail land (New Straits Times, 17th January 2019)17
Transit-oriented plan for Kempas (NST Property, 17th January 2019) ............. 18
(E) INDUSTRIAL / LOGISTICS / PLANTATION ........................................................ 19
Chin Well’s Shah Alam warehouse to start operations this year (The Star,
14th January 2019) .............................................................................................................. 19
NTPM investing US$30mil to expand in M'sia, Vietnam (The Star, 14 th
January 2019) ....................................................................................................................... 19
Wellcall plans composite hose plant with Trelleborg (The Star, 15th January
2019)........................................................................................................................................ 20
Uni Wall Aps expands presence in Malaysia, Australia (The Star / Bernama,
15th January 2019) .............................................................................................................. 20
HPI Resources launches second plant worth RM45m (The Star / Bernama,
17th January 2019) .............................................................................................................. 20
HSL gets digital village job (The Star, 14th January 2019) .................................... 21
No near-term rerating catalysts expected for CPO price (The Edge Financial
Daily, 14th January 2019) .................................................................................................. 22
MPOB sees CPO prices above RM2,500 a tonne this year
(theedgemarkets.com, 17th January 2019)................................................................. 23
IJM Plantations’ 2019 FFB production outlook sturdy (The Edge Financial
Daily, 17th January 2019) .................................................................................................. 23
Prinsiptek in JV to build oil palm mill for RM2.126b (NST Business, 15 th
January 2019) ....................................................................................................................... 24
FGV to sell RM350m worth of non-core businesses, assets
(theedgemarkets.com, 14th January 2019)................................................................. 24
(F) INVESTMENT ...................................................................................................... 25
Selangor eyes RM7.5bil investments this year (The Star, 15th January 2019) 25
Penang records RM3.8b investments between Jap-Sept 2018 (Bernama, 14th
January 2019) ....................................................................................................................... 25
(G) CORPORATE ...................................................................................................... 25
AQRS on the up and up? (EdgeProp.my, 19th January 2019) ............................. 25
Berjaya Corp mulls asset sales abroad (New Straits Times, 18th January 2019)26
Newsbreak: Cycle & Carriage to sell its retail operations? (The Edge
Malaysia, 14th January 2019) ........................................................................................... 26
Eastland Equity aborts rights issue as proposed development project faces
hiccups (theedgemarkets.com, 18th January 2019) ................................................ 27
JAKS releases RM50m bank guarantee payment to Star Media
(theedgemarkets.com, 16th January 2019)................................................................. 27
Kayin revises Selangor Properties privatisation offer again
th
(theedgemarkets.com, 15 January 2019)................................................................. 28
Kerjaya Prospek gets RM155m Cyberjaya job from HCK unit
(theedgemarkets.com, 17th January 2019)................................................................. 28
Scientex seen to gain from stretch film demand, property strategy (The
Edge Financial Daily, 18th January 2019) .................................................................... 29
Sunway’s property division targets RM1.3bil sales for FY19 (The Star, 15 th
January 2019) ....................................................................................................................... 29
TH completes disposal of TRX land at a premium (New Straits Times, 15 th
January 2019) ....................................................................................................................... 30
Vizione Q2 earnings surge threefold (The Sun Daily, 15th January 2019) ...... 30
(H) REITS / FUNDS ................................................................................................... 31
Pavilion REIT won't buy stake in Pavilion Bukit Jalil (theedgemarkets.com,
17th January 2019) .............................................................................................................. 31MRCB-Quill REIT's net property income falls 11.7% in 4Q
(theedgemarkets.com, 17th January 2019)................................................................. 31
MRCB-Quill REIT sees RM5.4m loss on revaluation of properties
(theedgemarkets.com, 17th January 2019)................................................................. 32
KIP Reit’s 2Q profit fall on higher expenses (The Malaysian Reserve, 16 th
January 2019) ....................................................................................................................... 32
(I) LEISURE / TOURISM .......................................................................................... 32
W Hotel near Petronas Twin Towers for sale for RM360mil (The Star, 14 th
January 2019) ....................................................................................................................... 32
W Hotel not up for sale, says Tropicana (EdgeProp.my, 15th January 2019). 34
As age catches up, Grand Seasons KL to halt operations (The Edge Malaysia,
16th January 2019) .............................................................................................................. 34
The Datai Langkawi reopens in grand style (The Star, 18th January 2019) .... 35
SEA LIFE Malaysia to be launched by first half of 2019 (EdgeProp.my, 14 th
January 2019) ....................................................................................................................... 35
Sabah keen on eco-tourism partnership with Chinese investors (The Star,
17th January 2019) .............................................................................................................. 36
klia2's new RM3m processing centre to cut time by 66% for domestic flights
(theedgemarkets.com, 18th January 2019)................................................................. 36
Malaysia Airlines reinstates Kochi (Sunbiz, 14th January 2019) .......................... 36
Malindo Air to start KL-Varanasi flights in March (Bernama, 17th January
2019)........................................................................................................................................ 37
MATTA urges visa-free travel for Chinese, Indian tourists
th
(theedgemarkets.com, 15 January 2019)................................................................. 37
(J) INSTITUTIONAL .................................................................................................. 38
Matrix Concepts enters JV for schools rationalisation plan (The Star, 16 th
January 2019) ....................................................................................................................... 38
Alibaba sets up first ‘netpreneur training’ programme outside China in
Malaysia (The Malay Mail, 17th January 2019) .......................................................... 38
Seismic fundamental shift expected in local healthcare space (The Edge
Financial Daily, 14th January 2019)................................................................................ 39
Sinmah Capital focuses building hospitals for B40 and M40 (New Straits
Times, 17th January 2019) ................................................................................................ 39
KPJ Healthcare to focus on brownfield developments (The Star, 16th January
2019)........................................................................................................................................ 40
Fortis completes deal for RHT Health assets (The Sun Daily, 16th January
2019)........................................................................................................................................ 40
New team takes over at Mawar, pledges to re-open private hospital (The
Star, 15th January 2019) .................................................................................................... 41
(K) INFRASTRUCTURE ............................................................................................ 41
New LRT3 contract to be signed soon (The Star, 18th January 2019) .............. 41
EPCC contract with CCCC for ECRL project terminated — source
(theedgemarkets.com, 18th January 2019)................................................................. 41JB-S'pore RTS link may be delayed until 2024 – S'pore Transport Minister
(EdgeProp.my, 14th January 2019) ................................................................................ 42
TSR Capital bags RM307m job under Gemas-JB rail project (Bernama, 14th
January 2019) ....................................................................................................................... 42
Penang seeks federal aid to carry out RM300mil plan for mainland (The Star,
17th January 2019) .............................................................................................................. 42
Cheaper and faster to build BRT than MRT, says transport group
(EdgeProp.my, 17th January 2019) ................................................................................ 43
Bintulu Port Authority cancels Muhibbah’s RM585m wharf contract
(theedgemarkets.com, 17th January 2019)................................................................. 44
(L) ISKANDAR MALAYSIA ....................................................................................... 44
IRDA targets RM30b new investments for Iskandar Malaysia (Bernama, 15th
January 2019) ....................................................................................................................... 44
Passage of convenience (The Star, 17th January 2019) ......................................... 44
(M) OTHERS .............................................................................................................. 45
Kuwait's KFH plans asset sales in 2019, including Malaysia (The Star /
Reuters, 14th January 2019) ............................................................................................. 45
'Bangsar South' officially reverts to Kg Kerinchi (EdgeProp.my, 19 th January
2019)........................................................................................................................................ 45
Redevelopment of Highland Towers site to start next year (The Malaysian
Reserve, 18th January 2019)............................................................................................. 45
3,733 Pr1ma units to be built in Terengganu (EdgeProp.my, 14 th January
2019)........................................................................................................................................ 46
RM200m allocated to build, repair 8,889 PPRT houses (EdgeProp.my, 14 th
January 2019) ....................................................................................................................... 46
State low-cost housing initiatives launched in Sarawak (EdgeProp.my, 15 th
January 2019) ....................................................................................................................... 46
Malaysians can expect up to 10 pct discount for overhang residential units
(NST Business, 17th January 2019) ................................................................................ 47
Private sector adoption of IBS around 35% — CIDB (theedgemarkets.com,
17th January 2019) .............................................................................................................. 47
Malaysia economy to grow slower at 4.6% for 2019, says RHB Research
(theedgemarkets.com, 14th January 2019)................................................................. 48
World Bank: Malaysia’s economic fundamentals remain strong (The Star /
Bernama, 16th January 2019) .......................................................................................... 49
Malaysia consumption growth to slow to 5.5% in 2019, Fitch Research says
(The Star / Bloomberg, 18th January 2019) ................................................................ 49
Govt must provide consistency and clarity on policies — SERC
(theedgemarkets.com, 17th January 2019)................................................................. 50
Unemployment rate in Nov unchanged at 3.3% (The Star, 15th January 2019)50
Hiring activity in construction, property to stay conservative in 2019 (The
Malay Mail, 17th January 2019) ...................................................................................... 50Korn Ferry sees 3.6% rise in real wages in 2019 (The Star / Bernama, 17 th
January 2019) ....................................................................................................................... 51
Malaysian business optimism weakens in 1Q — survey
th
(theedgemarkets.com, 15 January 2019)................................................................. 51
(N) OVERSEAS ......................................................................................................... 52
London, NYC, Hong Kong are no longer immune to the housing slump
(Bloomberg, 16th January 2019) .................................................................................... 52
Malaysian developers not hit by weakening Aussie dollar (The Edge
Financial Daily, 14th January 2019)................................................................................ 53
Singapore Dec private home sales surge 40% y-o-y (Reuters, 15th January
2019)........................................................................................................................................ 54
Singapore’s Golden Mile Complex may be developed as an integrated
development if conserved (theedgemarkets.com, 14th January 2019) ........... 55
Rare Singapore Hotel site gets record US$415m bid (The Star / Bloomberg,
16th January 2019) .............................................................................................................. 55
Co-working brand No18 set to open Asia flagship space in Capitol
Singapore (EdgeProp.sg, 14th January 2019) ............................................................ 56
Berjaya Land plans Four Seasons Resort in Okinawa costing US$400m (The
Star, 17th January 2019) .................................................................................................... 56
Marriott looks to reboot loyalty plan after cyberattack (The Star / Reuters,
17th January 2019) .............................................................................................................. 57
Rich Chinese still hungry for luxury goods (The Malaysian Reserve /
Bloomberg, 15th January 2019) ...................................................................................... 57
China's coffee unicorn is burning millions to overtake Starbucks
(Bloomberg, 17th January 2019) .................................................................................... 58
Senior single-person households to increase by 2030 – research
(EdgeProp.my, 16th January 2019) ................................................................................ 59
Berkeley to launch 2nd phase of Birmingham scheme (Focus Malaysia, 18th
January 2019) ....................................................................................................................... 60(A) RESIDENTIAL / TOWNSHIP
Affordable housing in Bangsar South 75% taken up (EdgeProp.my, 15th January
2019)
A Federal Territory-level affordable housing scheme by IJM Land Bhd and
Amona Development Sdn Bhd has achieved a take-up rate of 75% at its launch
yesterday.
The Rumawip project is named Suria Pantai and comprises 896 units of homes
in a 34-storey block.
Each unit is 810 sq ft, comes with one covered parking bay and is priced at
RM275,000.
Facilities within the gated and guarded development include a swimming pool,
playground, and a multipurpose hall.
Suria Pantai is about 3km to Mid Valley and 5km to KL Sentral. It is also
accessible via the recently-opened New Pantai Expressway (NPE)’s Pantai
Sentral interchange.
The new dedicated interchange which comprises three ramps and two at-grade
roads connects Pantai Sentral Park directly to the NPE, with enhanced
accessibility to various key hubs and locations in Klang Valley.
Equipped with CCTV, the new interchange is expected to ease traffic flow in the
entire area surrounding Pantai Sentral Park.
The development is now open for registration via Suria Pantai’s official portal.
Single individuals with monthly income of less than RM10,000 and combined
household incomes of no more than RM15,000 are eligible apply for a unit in this
project.
The construction works has begun and it slated for completion by 2022.
S P Setia's Avis 2 based on ideal M'sian home (EdgeProp.my pullout, 18th
January 2019)
Property developer S P Setia Bhd is building more homes based on what
Malaysians want as revealed in the findings of the Lafarge-EdgeProp MYHOME
survey which was conducted from February 28 to April 15 last year.
Following the unveiling of Baccas at Setia EcoHill 2, Semenyih on November 28
by the Housing and Local Government Minister, the developer had in early
January introduced the Avis 2 double-storey terraced homes at Setia Alamsari
in Bangi.
The 775-acre freehold Setia Alamsari township was launched back in 2007 by
the then I&P Group Sdn Bhd which in 2017, merged with S P Setia.
Comprising 61 units, the Avis 2 homes feature a Scandinavian look. Each unit is
on a 22ft by 80ft lot while unit built-ups are from 1,953 sq ft. Avis 2 units aretagged from RM709,000 to RM1.03 million. The project will be completed in early
2021.
Setia Alamsari is connected to major highways such as the PLUS highway,
LEKAS highway and SILK highway while surrounding amenities include shopping
malls such as Bangi Gateway and ECO Mall; educational institutions such as
Universiti Kebangsaan Malaysia, Sekolah Rendah Sri Al-Amin Bangi and SMK
Convent Kajang and medical centres including the Kajang Hospital and
KPJ Kajang Specialist Hospital.
Currently the developer is in talks with the Kajang Municipal Council (MPKj) to
upgrade the road from the station leading to the township while a link has just
been completed recently that connects Setia Alamsari to Jalan Bangi Lama and
Setia EcoHill, cutting travel time by 20 to 25 minutes.
Other projects in the pipeline at Setia Alamsari this year include superlink houses
tentatively priced from RM800,000 onwards, semidees, the first bungalows in the
township and Rumah SelangorKu homes by the end of this year.
Eco World breaks new ground with Simfoni (New Straits Times, 17th January
2019)
Simfoni Apartments is located within Eco Majestic Sdn Bhd’s township in
Semenyih, Selangor.
Eco Majestic is a subsidiary of Eco World Development Group Bhd (Eco World).
Eco World has broken new ground and challenged industry norms with Simfoni
Apartments by creating quality affordable homes. It launched the apartments in
2015 under the Selangor government’s Rumah SelangorKu Type B category
where each unit is priced at RM100,000.
Despite the price, the units offer an incomparable quality of life.
Simfoni Apartments carry the Eco World DNA with its clean white facade,
entrance statement, 24-hour manned guard house and linear parks, to name a
few.
Simfoni Apartments residents enjoy access to a range of amenities at Eco
Majestic township. This includes hypermarkets and retail malls, education
institutions, healthcare, sporting facilities and recreational parks.
Simfoni Apartments comprise three blocks with a total of 870 apartment units.
The standard size of the apartments is 750 sq ft and all units come with three
bedrooms and two bathrooms.
The keys were handed over to buyers recently.
The 440.7-hectare Eco Majestic was launched in May 2014. Since then four
residential precincts — namely Cradleton, Tenderfields, Gentlebre and Merrydale
— with a total of 1,967 units and two parcels of neighbourhood shop offices —
Brighton and Ivoris— with a total of 148 units have been launched. Three parcels of affordable housing have also been launched, namely Simfoni,
Karisma and Harmoni Apartments, comprising 2,520 units of low-to-medium-
costs homes. Both Simfoni (870 units) and Karisma (750 units) have been
handed over.
The apartment blocks are thoughtfully designed with architectural themes
mirroring the overall colonial straits-era style adopted throughout the township.
Facilities include playgrounds, multipurpose courts, surau, function halls, guard
house, gazebo and carparks.
Affordable living in Semenyih (The Star, 18th January 2019)
Located at Jalan Broga in Semenyih, Midlands City is a freehold development
with a gross development value (GDV) of RM420 million.
To be launched in March this year and completed by the first quarter of 2021, the
development offers 772 SOHO units designed to cater to the flexible needs of the
occupants. With the price range of RM283,800 to RM328,800, Midlands City
targets first-time home buyers, and investors.
Recreational facilities will include BBQ deck, Taichi deck, outdoor gym area,
hammock garden, yoga deck, floating deck, chilling lounge, playground, half
basketball court, multipurpose plaza, jacuzzi, swimming pool, and spa bed.
There will also be 70 retail units offering F&B services to the residents and a
private specialist hospital adjacent to Midlands City which is linked via an
overhead pedestrian bridge.
Apart from food and healthcare, tertiary education is also a benefit that residents
will get to enjoy. The University of Nottingham is located just 800m away. There
will also be a private college within Midlands City development itself.
Midlands City will be equipped with state-of-the-art security. Apart from being
surrounded by anti-climb parameter fencing, the development is also under
guard house monitoring, lift lobby access control, CCTV monitoring system and a
24-hours security guard patrolling.
(B) RETAIL
Retail sector to see lower growth this year, says RGM (The Malaysia Reserve,
14th January 2019)
Consumer and business sentiments in the local retail sector are expected to
moderate this year as the country’s economy will be mostly driven by private
consumption and investments amid curtailed government expenditure.
Retail Group Malaysia (RGM) projects a 4.5% growth rate for the country’s retail
sector this year, slightly lower than the 4.7% forecast for last year. The
consumers’ spending pattern this year will be highly dependent on the economic
performance and the impact of the cost of living.
The country’s inflation rate is expected to escalate due to the implementation of a
different tax system and higher projected global oil prices. However, the floatingmechanism of the domestic fuel prices, which is expected to relieve consumers’
fuel spending, will reduce the cost of living and help in boosting retail spending.
The government will continue to distribute monetary incentives to Malaysians in
order to alleviate the financial burden and strengthen domestic demand.
The government will launch the “Buy Malaysian Products” campaign this year
with a budget of RM20 million to encourage Malaysians to support the local-
made retail goods.
In contrast, the higher minimum wage that was implemented starting from
January 1, 2019, may lead to higher retail prices despite alleviating the lower-
income group’s financial burden.
The increment of the minimum wage by RM100 to RM1,100 per month
nationwide will also reduce the income constraints of the lower-income group, for
a monthly salary below RM3,000.
In further boosting the domestic consumption, the government should be more
focused on introducing new policies to stimulate broad-based economic activities
in order to achieve a better economy across all sectors.
Since the 14th General Election, the new government has been very busy fixing
problems and reducing debts, and very few economic policies have been
implemented that will stimulate broad-based economic activities.
In the next six months, the government should introduce more new economic
master plans and new policies that will stimulate broad-based economic activities
as a higher GDP will lead to higher take-home pays and higher retail spending
subsequently.
Data drives retailers (The Star, 17th January 2019)
Retailers must become increasingly data-driven in order to remain competitive.
Data science can provide fundamental business value by helping companies
make better decisions. This translates to better customer experience,
improvements in planning, logistics, and pricing, and a more accurate picture of
customer value.
The key challenge for retailers is to capture the right data, extract insights and
value from it, and take timely action.
Building value for a grocer brand (The Star, 14th January 2019)
Building a relationship with its customers remains key for Village Grocer, says
The Food Purveyor Sdn Bhd.
The Food Purveyor is the holding company for the Village Grocer, Ben’s
Independent Grocer and Pasaraya OTK chains.
As the premium grocer continues to expand, getting the “people” element right
will ensure that the Village Grocer brand stands out in the segment. In recent years, Village Grocer has been refurbishing its outlets with a tweak in
store layout so that customers can have a better shopping experience. Its aisles
are wider, meats are better presented and product offering expanded. At its
flagship outlet in Bangsar Village, some of its popular food stations have been
moved out of the supermarket into an opposite lot – aptly named Village Pantry –
to provide customers with more space to enjoy some downtime or for a meal.
Grocery shopping has become somewhat a destination where families go to on
weekends.
Providing good customer service is just as important.
The company has also introduced its digital loyalty programme, BITES, which
can be used across the group’s stores. The programme has proven to be a good
platform for the brand to stay connected to customers and understand what they
are looking for.
Modern trade has been growing rapidly in Malaysia over the past decade. The
segment enjoyed growth of 5.3% from 2011 to 2016 and was estimated to be
worth RM8.4 billion in 2016. It is projected to hit RM9.3 billion in 2020 thanks to
increasing urbanisation, rising affluence and change of lifestyle, particularly
among millennials.
There is still a lot of space for growth in the Klang Valley area. And given that it is
an established brand, developers of new malls often seek Village Grocer out for
tenancy.
Village Grocer currently has 15 outlets with another four planned for the
immediate term.
Pizza Hut Malaysia set to open its 400th store (Bernama, 16th January 2019)
Pizza Hut Malaysia will be opening its 400th store in Peninsula Malaysia within
the first quarter this year, through planned expansion of 15 new stores in 2019.
According to QSR Brands (M) Holdings Bhd, Pizza Hut is poised to achieve a
stronger year, as it strengthens its presence in the country from 393 stores at
present.
The fund for the expansion plan will partly come from the initial public offering
(IPO) raised for the upcoming listing of QSR Brand in the Main Board of Bursa
Malaysia, expected in the next quarter this year.
QSR Brands is the operator of Pizza Hut and KFC restaurants in Malaysia.
The cost to open one store is between RM600,000 and RM1.2 million, depending
on the value of the property and agreement.(C) COMMERCIAL / OFFICE
Mammoth Empire: Tower H tenanted, including by Grab (New Straits Times, 17th
January 2019)
There is a new twist in issues relating to an office tower at Empire City
Damansara, an integrated lifestyle commercial development by Mammoth
Empire Holdings Sdn Bhd (MEH).
It had been reported that Tower H of Empire City posed safety hazards despite
having a Certificate of Fitness. However, MEH group said the allegations were
baseless.
The 20-storey building is currently tenanted. MEH is occupying four floors. Grab
has taken up four floors and has been operating there since 2017.
A report by Campaign Asia-Pacific had alleged that Tower H had several issues
that are believed to have been raised mainly by employees of WPP, one of the
building’s tenants.
WPP had signed a tenancy agreement with MEH on July 1 2018 to take up 10
floors in Tower H for five terms of three years each. In the same month and
August, WPP moved 13 agencies and agency groups including Hill+Knowlton
Strategies, Group M, Ogilvy, Geometry Malaysia, Wunderman and J Walter
Thompson to Tower H.
WPP and MEH are reportedly in constant communication to upgrade the building
for the safety and comfort of the occupants.
Empire City Damansara is the flagship and largest mixed development by MEH
in Damansara Perdana, Petaling Jaya.
The RM5 billion project will have 11 towers upon its full completion which is
expected before end-2020.
Eight towers had been completed. The remaining three towers will be completed
between the second and fourth quarter of next year.
Colony@Mutiara Damansara marks Selangor debut of Colony (EdgeProp.my,
15th January 2019)
Luxury co-working space and serviced office provider Colony Space Asia Sdn
Bhd has announced its expansion into Mutiara Damansara, Selangor, marking its
fifth location in the country.
The upcoming new space dubbed Colony @Mutiara Damansara will be housed
within KYM Tower spanning 19,700 sq ft across two floors, and can
accommodate over 250 people.
KYM Tower is a Grade A and Green Building Index Gold certified building with
MSC status. Colony @Mutiara Damansara will bring Colony’s footprint to over 100,000 sq ft of
space in Malaysia. Prior to this, Colony announced that the 35,000 sq ft Colony
@Star Boulevard KLCC will be open in April 2019.
Slated to open its doors in June 2019, Colony @Mutiara Damansara marks the
group’s first foray into the state of Selangor. It will be connected to neighbouring
lifestyle malls, including The Curve Shopping Mall, IPC Shopping Centre and
IKEA Damansara via an elevated walkway, which will also link the co-working
space to the MRT rail network.
All-female co-working space HelloHERA opens in KL (The Malay Mail, 17th
January 2019)
An all-women co-working space has opened in the city centre, priding itself on its
ability to provide a safe working environment for women.
Launched on January 3 at Q Sentral, the small and simple-looking boutique set-
up exudes an aura similar to one’s own home, and clients who are working
mothers are also allowed to bring their children.
Although HelloHERA is dedicated to women, men are allowed to work in the
space.
Owner of project told to buy Medan Imbi land or lose right to project (The Star,
16th January 2019)
The owner of the buildings built on government land in Medan Imbi have been
given an ultimatum to buy the land or the title will revert to the rightful owners.
According to the Federal Territories Minister, abuse of power in the previous
administration enabled a company to build a six-storey office building and a
restaurant on two plots of land.
In March 25, 2015 the company applied to rent Lot 568 from the Federal Lands
and Mines office for eight years to build a two-storey building, but it was rejected.
DBKL, however, issued a development order (DO) in June 17, 2016 for a two-
storey restaurant. The One Stop Centre approved the building of a six-storey
building in September 23, 2016.
An amended DO to build the six-storey building was issued on December 15,
2016 and the building was completed on February 8 last year.
For Lot 716, the company proposed to upgrade the green area and build a durian
kiosk in March 14, 2016.
On June 10 the same year, DBKL gave planning permission to the company for a
temporary kiosk. Once completed, the company managed and rented the place
for RM16,000 per month.
Medan Imbi building owner identified (The Edge Financial Daily, 18th January
2019) The owner of the controversial building built on two plots of government land in
Medan Imbi, Bukit Bintang has been identified as Willowcrest Management Sdn
Bhd.
A search on the Companies Commission Malaysia (SSM) website showed that
Willowcrest is 99%-owned by businessman Datuk Seri Tee Yam @ Koo Tee
Yam, while the remaining 1% is held by Eco Habitat Sdn Bhd.
The office building has six levels, with Willowcrest listed as one of its tenants.
Other tenants include Excellent Epitome Sdn Bhd and Orion Tower Sdn Bhd.
Another property development company linked to Tee Yam is Viva Impian Sdn
Bhd, which is developing a mixed-use, integrated development called Viva
Impian Cheras. SSM’s data revealed that Viva Impian is 99%-owned by Tee Yam
and the rest by Eco Habitat.
Eco Habitat is one of the shareholders of Gabungan Tiasa Sdn Bhd with a
33.33% stake. Gabungan Tiasa is involved in the redevelopment of Plaza Rakyat
in Jalan Pudu, Kuala Lumpur.
(D) MIXED DEVELOPMENT
Mah Sing recognised by Malaysia Book of Records (New Straits Times, 17th
January 2019)
M CITY, one of the iconic developments by Mah Sing Group Bhd, has received a
recognition from the Malaysia Book of Records for housing the “First Multi-Level
Thematic Suspended Gardens in Malaysia”.
The gardens are defined by a variation of themes such as Lagoon Park at Level
7, Bamboo Groove at Level 11, Spring Park at Level 17, Altitude Sky Club at
Level 23, Tropical Sanctuary at Level 29 and Sky Garden at Level 35 rooftop.
Each of the suspended gardens was designed to follow a unique theme, which is
part of M City’s garden city living concept. All the gardens have their own unique
ambience which offers leisure alternatives to residents with various preferences.
Located at the corner of Jalan Ampang, M City is a freehold integrated
development spanning 2.02 hectares of land and has a gross development value
(GDV) of RM1.6 billion.
It comprises three towers with a total of 1,585 units, made up of boutique retail
shops, small-office-home-offices, serviced apartments and Sky Residences.
Vanke to focus on Jalan Raja Chulan mixed-use development project this year
(The Malaysian Reserve, 14th January 2019)
Vanke Holdings (M) Sdn Bhd is expected to focus on its mixed-use development
project on its Jalan Raja Chulan prime tract this year.
The previously reported 80-storey project is an old plan. The project is still in
planning phase as the company has yet to obtain approval from the relevant
authorities. The company targets to launch in phases — the first being a residential
development, and retail coming in close as the second. The rest will be according
to the market’s demand.
The project’s gross development value (GDV) is currently unknown, as it is
subject to authorities’ approval.
Preliminary industry estimates put the project’s GDV at between RM1.5 billion
and RM2.5 billion — which was subject to vary depending on various factors
such as the target market, launch timing and plot ratio.
The prime tract owned by Vanke Holdings is situated close to the Bukit Nanas
heritage zone and forest reserve. It is made up of 16 lots and shaped oddly,
surrounding a parcel of land which belongs to another owner.
Vanke Holdings is a subsidiary of Shenzen-based property developer China
Vanke Co Ltd, which was established in June 2017.
China Vanke is listed in the Hong Kong Stock Exchange and ranked 332nd in the
Fortune Global 500 last year, posting US$35.12 million (RM143.79 million) in
revenue.
HCK takes over Empire Remix 2 project, to be rebranded as education city (The
Edge Financial Daily, 16th January 2019)
HCK Capital Group Bhd is taking over the development of the Empire Remix 2
project in USJ 1, Subang Jaya from Mammoth Empire Holding Sdn Bhd’s (MEH)
unit, True Renaissance Development Sdn Bhd (TRDSB), and will brand it as an
integrated education city development.
The project has seen delays since it was first launched in 2012.
Empire Remix 2 is part of an integrated commercial development together with
Empire Remix, which would have a combined gross development value (GDV) of
RM1 billion.
Empire Remix 2 comprises one 12-storey tower (A), three 28-storey towers (B, C
and D), as well as two floors or associated units and four basement floors.
HCK, via its indirectly wholly-owned units, had already purchased towers A and
C from TRDSB in 2012.
HCK’s indirect wholly-owned unit, HCK Builders Sdn Bhd, yesterday signed a
joint-venture (JV) agreement with landowner Projek Muara Sdn Bhd and its unit
Dergahayu Sdn Bhd, to enable HCK to continue and complete the development.
This was after TRDSB, the original developer, was granted the release from the
landowner from its obligations to complete the project.
It added that the total development revenue, costs and expected profits in
relation to the development “have yet to be ascertained” as the detailed
development plan and the proposed amendments are pending finalisation. All the revenue, including receivables from units already sold, will also be
retained by HCK.
Previous reports estimated that the new investors will have to fork out at least
RM350 million to continue the project.
It was previously reported that MEH has seen hiccups in other development
projects such as the RM5 billion Empire City Damansara (ECD1) launched in
2011.
The group, currently seeking RM800 million to pare debts, also plans to bring in
partners or carve out 26.3 hectares (65 acres) across ECD1, which were initially
meant for another RM7 billion mega project, dubbed Empire City Damansara 2.
Three years on, Kg Baru redevelopment plan remains challenging for KBDC (The
Malaysian Reserve, 16th January 2019)
When the “Kampung (Kg) Baru Detailed Development Master Plan” (PITPKB)
was launched in 2015, there were huge expectations that the plan would
transform the Malay enclave into a modern 21st-century Kampung Melayu.
The masterplan aims to include up to 17,500 residential units of development,
which could accommodate up to 77,000 people within the 121.8 hectares of land.
High-rise condominium and mega skyscraper projects are expected to house the
area. In its original plan, the previous aimed to complete the whole development
by 2035.
Divided into four areas, the prime land in Kg Baru is centred around the 89-
hectare Malay Agriculture Settlement (MAS) plot. The remaining three zones
comprise of the flats and Kg Sungai Baru areas, Social Security Organisation
(Socso) office zone and the Jalan Chow Kit area.
The project prime mover, Kg Baru Development Corp (KBDC) inherited the same
set of problems faced by the past and current governments: unresolved issues of
ownership, land titles and price valuations.
Of the total 121.8 hectares, 32.4 hectares of the land sit outside the MAS plot,
which has a different set of development rules and priority set for KBDC.
The three residential areas are labelled as “Jalan Tun Razak” with 252 units of
flats (2.4 hectares), the “17-storey” with 284 units (0.67 hectare) and the 5.1-
hectare Kg Sungai Baru area which houses 264 units of flats, as well as 96 units
of terraces. The remaining land plot sits on the Jalan Chow Kit area and the
Socso office zone.
KBDC will have to “do away” with the pockets of land at Jalan Chow Kit and the
Socso office in Jalan Tun Razak, as they are not highly critical to be developed
as detailed in the PITPKB programme.
KBDC is pushing for the redevelopment of Kg Sungai Baru housing areas as
most of the landowners are easier to be identified. The 54-storey condominium project by Suez Domain Sdn Bhd, if materialised, is
expected to be the catalyst for the MAS land area resolution. The developer is
working to get at least 80% of the total landowners agree to the project.
Currently, houses at Kg Sungai Baru are valued between RM100,000 (flats) and
RM300,000 (landed), while each unit of proposed condominium is valued at more
than RM1 million.
A new thorough survey is being conducted with Kg Baru residents. As of last
December, KBDC has gathered more than 20% of the total of 5,697 survey forms
distributed to the MAS landlords, as well as the Kg Sungai Baru houseowners.
The survey, among others, are aimed to gauge the sentiment of the Malays in
loosening up the Kg Baru “MAS” status to allow non-Malay buyers to own
properties there. The study is expected to be presented before month-end.
Big plans for Gurney foreshore (The Star, 17th January 2019)
Ewein Bhd is expected to roll out several developments at the Gurney Drive
foreshore following the success of its RM800 million City of Dreams (COD)
serviced apartments in Tanjung Tokong, Penang.
A single-block serviced apartment, an international brand hotel, a university and
office towers are among some of the projects that will be carried out on the
reclaimed land.
Priority will be the serviced apartment that is expected to take off next year.
To be known as COD 2, the project with a gross development value (GDV) of
RM1.2 billion will be built on a 1.8-hectare site fronting G Hotel.
Foreigners are expected to snap up 30% of COD 2.
The project will feature rock climbing, wave pool, music recording room with all
the musical instruments. There will be a cafe-type setting with library and laundry
services.
Ewein’s subsidiary, Ewein Zenith Sdn Bhd, was awarded Entry Point Project 10
(EPP 10) under the Economic Transformation Programme by the Domestic
Trade, Cooperatives and Consumerism Ministry.
EPP 10 is for the development of a wellness resort city, which will be located on
the City of Dreams development, which takes up some 20.2 hectares of land.
The project is located on the reclaimed land (Gurney Drive foreshore) given to
Consortium Zenith Constructions Sdn Bhd by the Penang Government in return
for building the RM6.3 billion undersea tunnel and three road bypasses.
These projects will have a gross development value (GDV) of RM15 billion over
the next 10 years.
Ewein Zenith has been given the exclusive right to purchase the parcels of land
owned by Consortium Zenith over a period of 10 years. On the hotel, an announcement on its partner will be made soon.
As for the university, the company is still identifying the right partner.
Meanwhile, COD, a luxury sea-front development overlooking Gurney Drive, has
seen a take-up rate of more than 80%. Between 25% and 30% of the buyers are
foreigners from China, Taiwan, Hong Kong, Singapore, Indonesia, Thailand and
European countries.
Construction has reached 15th floor and the units are targeted to hand over by
this year.
The project is strategically designed in such a way that all residential units have
sea-views, with sizes ranging from 1,097 sq ft to 1,335 sq ft.
Residents also have access to a wide range of luxury facilities such as private lift,
yacht services, Rolls Royce limousine, private bowling alley, private cinema, sky
lounge, sky pool and many more.
All in all, there are more than 60 world-class facilities over 120,000 sq ft in COD.
COD is being sold at RM1,350 per sq ft.
RAC: Best time to redevelop rail land (New Straits Times, 17th January 2019)
The KTM Bhd (KTMB) quarters in Bangsar, Kuala Lumpur, will finally undergo
redevelopment and the new project will have an estimated gross development
value (GDV) of RM3 billion.
According to Railway Assets Corp (RAC), the corporation is planning a mixed-
used transit-oriented development (TOD) on the 5.26-hectare freehold land.
Currently occupying the land are quarters that were home to over 1,000 KTM
Bhd workers.
RAC will call for the best proposals from developers this year as it plans to
maximise the land use. It is looking at building two hotels, office towers, a retail
mall and affordable houses that include apartments. The affordable homes will
sell from RM350,000.
The redevelopment may take about 10 years for full completion and is expected
to start this year or in 2020.
The Bangsar land is part of the nine parcels of land that RAC has identified for
redevelopment, mostly to be based on the TOD concept.
RAC has experience in TOD developments with the completion of a project with
SP Setia Bhd for the Abdullah Hukum light rail transit station in KL Eco City.
RAC also has started a TOD venture with MKH Bhd for Kajang 2, a new
township located in the vicinity of Kajang, Selangor.
RAC owns 15,378 hectares of land along the KTM railways and in prime areas.
Some 80 per cent of the land has been used to build 1,650km of tracks fromPadang Besar to Johor Baru and Tumpat to Gemas, 170 stations, 16 depots and
warehouses.
Only 20 per cent comprising railway reserve and title land has potential to be
developed.
RAC can develop the reserve land and is working with the respective states to
get the title and develop the land along the tracks.
RAC plans to undertake TODs and transit supportive developments (TSD) to
enable the corporation to re-invest in the railway industry and improve railway
stations and tracks, as well as help KTMB buy rolling stock and do maintenance
for the existing assets.
The corporation owns assets worth RM17.09 billion. They include land,
infrastructure, buildings, rolling stock, office equipment, machinery and ticketing
system.
One of the most exciting projects for RAC is the land next to Bank Negara
Malaysia which will be developed via a joint venture with developers.
RAC has a 2.8-hectare plot adjacent to the central bank and it plans to build
office towers, institutions and training centres. The project will take about five
years to be fully developed. The development has an estimated GDV of about
RM1.5 billion.
RAC will also develop a 1.2-hectare site in Ampang, Kuala Lumpur, and 5.7
hectares in Bukit Mertajam in Seberang Prai, Penang, in partnership with
developers.
The Ampang land is located behind Gleneagles Kuala Lumpur and will have
a standalone development. There are plans to develop two towers with a plot
ratio of seven. There will be more than 1,000 units of apartments and the
expected GDV is around RM1.5 billion.
In Bukit Mertajam, RAC is planning a TOD that consists of office towers,
hotels, retail and apartments. The project will have a GDV of RM1.5 billion
and take between five and 10 years to be fully developed.
RAC owns 5.3 hectares of land in Batu 3, Shah Alam, and is looking at a TSD
(transit-supportive development) based project. The land, sandwiched between
Bukit Subang Jaya and Batu 3 rail stations, has high potential for apartments and
commercial (offerings) but the focus will be on residential development. The
project is expected to take three to five years to develop with an estimated GDV
of RM500 million.
Transit-oriented plan for Kempas (NST Property, 17th January 2019)
Railway Assets Corp (RAC) has identified nine parcels of railway land for transit-
oriented development (TOD) and transit-supportive development (TSD).
RAC, which is a corporation under the Transport Ministry, hopes to start the
projects within the next two to four years.
Among the biggest developments that the corporation will embark on is in
Kempas, Johor. Kempas, a suburb in Johor Baru, is a huge town area on the way to Senai.
One of the biggest developers in Kempas is IOI Properties Group Bhd, which is
developing Taman Kempas Utama via subsidiary Wealthy Growth Sdn Bhd.
Taman Kempas Utama, located within the Kempas-Tebrau growth corridor,
features lifestyle amenities such as a 1.54-hectare town park, gated-and-guarded
residential communities and matured commercial hubs.
RAC owns about 50.59 hectares of land in Kempas and plans to develop a
township that may take 15 to 20 years to be fully completed. It is planning to
develop a project, which may be called Kempas Sentral - a replica of the KL
Sentral integrated transport hub. The proposed development may be a
combination of TOD and TSD concept.
(E) INDUSTRIAL / LOGISTICS / PLANTATION
Chin Well’s Shah Alam warehouse to start operations this year (The Star, 14th
January 2019)
Chin Well Holdings Bhd is diversifying into the warehousing business as the
company makes plans for its new RM12 million automated warehouse in Shah
Alam to start operations this year.
The warehouse, with a built-up area of 25,479 sq ft and 12,920 storage areas,
will generate long-term recurring rental income for the group. The facility provides
one-stop warehousing services.
Customers in the central region, for example, can use it to store their steel
hardware products.
With a net cash of RM44.58 million, the group will acquire suitable business
opportunities in the near future. It is working to raise revenue from its do-it-
yourself (DIY) fasteners to contribute 20% to group’s revenue in 2020 from the
current 10%.
The on-going China-US trade war provides opportunities for the group to expand
in the US. The move by the US to impose tariff on Chinese steel products gave
Chin Well opportunities to further strengthen its position in the US market.
Currently, the group sends 30 containers of DIY fasteners to the US every
month. The figure will gradually increase in the 2020 financial year starting in
July.
There are potential customers in Germany, France, Australia, and New Zealand.
NTPM investing US$30mil to expand in M'sia, Vietnam (The Star, 14th January
2019)
NTPM Holdings Bhd is investing over US$30 million to expand its tissue paper
production facilities in Malaysia and Vietnam for the 2019 financial year.
The bulk of the budget, about two thirds, went towards the expansion of the
Vietnam facility. It is expected to commence production in May. In Malaysia, the group is expanding the Nibong Tebal facility. It now has the
capacity to produce up to 110,000 tonnes per year compared with 90,000 tonnes
previously.
In Bentong, the group has another plant with the capacity to produce 10,000
tonnes of tissue paper yearly.
Once the expansion in Vietnam is completed, the group would have the capacity
to produce 170,000 tonnes of tissue paper annually, with an estimated value of
RM900 million.
Wellcall plans composite hose plant with Trelleborg (The Star, 15th January 2019)
Industrial rubber hose manufacturer Wellcall Holdings Bhd has entered into a
joint venture agreement with Swedish Trelleborg Holding AB to produce and
market composite hose and fittings.
The composite hose manufacturing plant, which shall be located within the
vicinity of Wellcall’s existing plant, is targeted for commissioning by end-2019,
with two production lines and auxiliary equipment.
The joint venture company will have an initial issued and paid up capital of
US$2.2 million (RM9.2 million). Trelleborg shall own a 51% equity in the joint
venture company while Wellcall will own the remaining 49% equity.
Uni Wall Aps expands presence in Malaysia, Australia (The Star / Bernama, 15th
January 2019)
Bursa Malaysia's Leap Market debutant, Uni Wall APS Holdings Bhd, is
progressively expanding its presence in Malaysia and Australia.
The company had tendered projects worth about RM1.4 billion recently.
The listing exercise had successfully raised RM7.31 million, with RM3.50 million
to be used for the setting up of new factory on a vacant land adjacent to its
existing factory and head office in Semenyih.
The company expects the fabrication capacity to be increased to about 10
hectares from about 4.9 hectares of panels per month upon its commission by
the first quarter of 2019.
HPI Resources launches second plant worth RM45m (The Star / Bernama, 17th
January 2019)
HPI Resources Bhd's subsidiary, Harta Packaging Industries (Perak) Sdn Bhd
(Harta Perak) has launched its second plant, Harta Perak Plant 2 (HP2) at the
Parit Buntar Industrial area.
The second plant, worth RM45 million, is equipped with the newest state-of-the-
art corrugated machine incorporating German web precision technologies and
packaging machine. It will double HPI's production capacity in the northern
region to 66,000 tonnes annually from 36,000 tonnes at present.You can also read
