Third link may cost up to RM20b

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on September 24, 2013

THE proposed third link between Johor and Singapore may cost as much as RM20 billion, depending on the project structure and the starting points of the bridge in both countries.

People with first-hand information on the matter said Malaysia is mulling over whether to construct the bridge in Pasir Gudang or Pengerang, and get Singapore to link it to either Changi, Punggol or Tampines.

The distance between Pengerang and Changi is longer than from Pasir Gudang to Changi, which is about 2km.

Sources said if the line is built from Pasir Gudang to Changi via a bridge over water, it would cost RM3 billion to RM4 billion.

"If the government decides to build a tunnel between the two points, the cost will increase by threefold to around RM12 billion," he said at a highway conference here, recently.

The source said the third bridge will cost about RM20 billion if Malaysia were to build a tunnel from Pengerang to Changi.

"A tunnel will cost three times more than a suspension bridge. The government will do a feasibility study on the project. It will be good for both Malaysia and Singapore as traffic at the Causeway and the Tanjung Kupang-Tuas Second Link is getting heavy," the source said.

Both the Causeway and Second Link are heavily used because of the massive development in Iskandar Malaysia.

Works Minister Datuk Fadillah Yusof said recently Malaysia is studying the possibility of building a third link in view of the increasing traffic between both countries.

SP Setia plans 2 new projects worth RM15.5b

By Sharen Kaur
Published in NST on Sept 2, 2013

SP Setia Bhd, the largest property developer by sales, will add two new projects to its portfolio, both of which have a combined gross development value (GDV) of RM15.5 billion.

The company has 34 ongoing projects and the undeveloped portion is worth about RM70 billion. Eight of these projects are in the United Kingdom, Australia, Singapore, China and Vietnam.

The biggest is the RM40 billion Battersea Power Station redevelopment project in London, a joint venture with the Employees Provident Fund and Sime Darby Bhd.

"We have bought land in Kuala Lumpur and Semenyih. The next frontier for us is to transform the sleepy part of Semenyih into a bustling city like what we did in Setia Alam. We will open up a new corridor and this will be a new driver for SP Setia," said SP Setia president and chief executive officer Tan Sri Liew Kee Siew in an interview recently.

SP Setia has 280ha in Rinching, where it is developing Setia Eco Hill, a mixed-development worth RM4 billion.

According to Liew, SP Setia launched 200 bungalow lots at RM100 per square feet three months ago and all have been sold.

The company will be launching doublestorey link houses this month, targeting those from Cheras and existing customers.

SP Setia also has 400ha in Beranang estate The development, Setia Eco Hill 2, is worth RM3.5 billion.

"We have set a benchmark for bungalow prices in Rinching. Everywhere we go, we price our properties 10 per cent above other developers.

We are the trendsetters," Liew said.

Meanwhile, the company expects to launch Setia Federal Hill here in 2015. The project, estimated to be worth RM8 billion, will be developed on the 20.64ha former site of the Public Health Institute off Jalan Bangsar.

The land was acquired by SP Setia as part of a land swap deal in return for building a replacement facility in Setia Alam.

According to Liew, the project will feature luxury residential apartments, offices, a performing arts centre and a mall.

IJM Land mulls UK offers

By Sharen Kaur
Published in NST on Sept 21, 2013

IJM Land Bhd is mulling over offers from British investors to develop land in London to tap the booming United Kingdom (UK) property market, says its chief executive officer Datuk Soam Heng Choon.

IJM Land is now the second biggest Malaysian investor in London after the SP Setia Bhd- Sime Darby Bhd joint venture, which launched the RM40 billion Battersea Power station project early this year.

Soam said it is an opportune time to enter the London property market now because of the strengthening of the pound, which will give the company long-term returns The value of properties there is also increasing, having risen by seven to eight per cent recently, he said.

"When you convert the pound into ringgit, it becomes very substantial. Since we have a set-up in London, if something good comes along, we may consider. The UK market in general is still weak, but London is different.

We are looking at several sites with the developers." Soam was briefing the press, here, yesterday on IJM Land's maiden project, called Royal Mint Gardens in Central London.

"Our development may be small-scale compared with the Battersea project but we plan to enter London in a big way in the next few years.

"Property is a real asset investment and a hedge against inflation. Some 40 per cent of our properties are sold to repeat buyers. They are looking to invest in London properties for their children's education," he said.

Royal Mint Gardens is part of a two-phase mixed development featuring a five-star hotel, apartments and townhouses on 1.08ha of land above the national rail and Docklands Light Railway lines near the Royal Mint Street.

Worth STG200 million, Royal Mint Gardens will be launched next week in Kuala Lumpur.

It consists of 254 units of studio and one-, two-, and three-bedroom apartments priced between STG465,000 and STG1.85 million (STG1,000 to STG1,350 per sq ft).

"The launch provides IJM Land with the perfect opportunity to introduce a brand new property asset to discerning Malaysian property investors," Soam said.

IJM Land holds a 51 per cent stake in the mixed development, while the rest is held by UK investors.

Work on Royal Mint Gardens is expected to begin in early 2014 and slated to complete in 2017.

`House prices up in selected areas only'

By Sharen Kaur
Published in NST on Sept 19, 2013

The Real Estate and Housing Developers' Association Malaysia (Rehda)'s immediate past president Datuk Ng Seing Liong has ruled out that house prices are increasing by double digits.

Reports of rising property prices are not reflective of the entire market situation as prices are increasing only in selected areas due to strong liquidity in the market, scarcity of land, and a mismatch between demand and supply, Ng said.

There is an increase in labour and construction costs but it is minimal and not reflected in existing housing projects.

"Construction cost has increased by between one and three per cent recently, but it is still negligible.

"The key here is a mismatch between demand and supply which is causing house prices to increase in some locations," he said.

Ng was speaking to Business Times here yesterday after a briefing on the Malaysia Property Exposition (Mapex), which will be held at the Mid Valley Exhibition Centre from October 25 to 27.

Ng said there is strong demand for gated communities and the more affluent groups are willing to pay higher prices for such properties.

"Properties in gated communities can cost between 30 and 50 per cent more than basic houses because of value-added privileges. This is where, I believe, there is a misconception that property prices are increasing," he said.

Property measures set to boost overseas purchases

By Sharen Kaur
Published in NST on Sept 18, 2013

STRICTER policies by the government to cool the hot property market will spur buying interest overseas, says Henry Butcher Malaysia chief.

This is because more locals would likely to channel their funds overseas and invest in properties.

"New cooling measures will only encourage people to start buying overseas, especially in London where the economy is improving. When Hong Kong and Singapore introduced cooling measures to curb speculation, people started to buy in foreign markets," Lim Eng Chong said.

He was speaking at a briefing yesterday to introduce a new project in London, called City Island, by UK developer Ballymore Group.

Maybank Investment Bank (IB) Research recently downgraded its outlook for the domestic property sector amid uncertainties posed by the cooling measures.

The research house is predicting another round of government's policy tightening to rein in household debt, despite Bank Negara Malaysia insisting that its measures initiated in July have started to work.

Maybank IB warned of further measures to cool down the property market amid concerns of a bubble, including a rise in real property gains tax and stamp duties, which is most likely to be announced in 2014 Budget.

Lim also said that the weakening of the ringgit against the US dollar will encourage Malaysians to buy properties overseas.

"We expect the pound and Australian dollar to strengthen and this will create a stimulus for people to invest in foreign properties. Investors will make more money when they buy foreign properties because of property value appreciation and forex (foreign currency) gain," he said.

The ringgit hit a fresh three-year low on August 14, loosing as much as 0.4 per cent to 3.272 per US dollar, amid broad weakness in emerging Asian currencies.

Analysts expect the local currency to weaken to 3.30 in the next six months.

Competitive ticket pricing for HSR

By Sharen Kaur
Published in NST on Sept 12, 2013

THE ticket price for the proposed high-speed rail (HSR) link between Malaysia and Singapore will be cheaper than travelling via a budget airline, says the chief of the Land Public Transport Commission (SPAD).

Chief executive officer Nur Ismal Mohamed Kamal said the HSR link is not a project for the well-to-do and high-end market but those in the lower end of the pyramid.

SPAD, as the lead agency for the project, has been carrying out feasibility studies on the fare structure, Nur Ismal said.

"There won't be a fix pricing. This means we can offer fares for as low as RM1 during the promotional period, but it will depend on the operator," Nur Ismal said at the Rail Business Asia 2013 conference, here, yesterday.

About 3.5 million passengers travel via air on the KL-Singapore route every year. The growth rate per year is about 6.8 per cent.

Nur Ismal expects many budget travellers to use the HSR service when it is operational in 2020.

Besides being an affordable way to commute to and from Singapore, it will cut travel time between the two countries to 90 minutes.

At present, it takes up to eight hours to travel between the two cities by train; five hours by bus and car and 45 minutes by flight.

Nur Ismal said negotiations between Malaysia and Singapore on the implementation of the HSR link will start next month and may last for about a year.

The construction for the HSR line may commence in 2015.

Dorsett: klia2 will help drive group's growth

By Sharen Kaur
Published in NST on Sept 9, 2013

HONG Kong-listed Dorsett Hospitality International (DHI) Ltd says the opening of Kuala Lumpur International Airport 2 (klia2) will help to drive growth for the group's operation in existing and new markets.

DHI, which is controlled by Malaysian tycoon Tan Sri David Chiu, owns, operates and manages 18 hotels under the brand Dorsett Hotels, D.Collection Hotels and Silka Hotels in Hong Kong, Shanghai, Chengdu, Wuhan, Kuala Lumpur, Johor Bahru, Labuan and Singapore.

According to its senior vice-president of sales and marketing Philip Schaetz, DHI's growth strategy includes expanding its hotel management business and establishing brand presence in key destinations in Asia, Australia and continental Europe.

Schaetz said the opening of klia2 is very much in line with the group's growth strategy as it would help to increase room occupancy.

DHI has a total of 5,158 rooms under operation. Between January and July this year, the occupancy rate for its hotels in Malaysia, Singapore and China has been between 55 per cent and 65 per cent.

For hotels in Hong Kong, the average occupancy rate for the period was 93 per cent, Schaetz said.

"The airport will be catering to a crowd that primarily could not travel so frequently. Low-cost airlines bring something else to the market that stays with us. AirAsia and AirAsia X are also helping by accelerating growth in the industry by serving a market that never existed before," Schaetz said in an interview here recently.

The RM4 billion klia2, which is the extension of the KLIA, is the world's largest purpose-built terminal for low-cost carriers.

klia2 is slated to open on May 2 2014, replacing the low-cost carrier terminal currently in operation. It is expected to serve 45 million passengers annually.

DHI, a unit of Far East Consortium International, has been riding on passenger growth at KLIA to maintain a high occupancy rate for all its properties in Asia.

For the financial year ended March 31, DHI posted a net profit of HK$647.4 million (RM277.22 million) on revenue of HK$1.15 billion. Its net operating margin was 43.3 per cent.

Work on MRT lines should start soon'

By Sharen Kaur
Published in NST on Sept 6, 2013

UALA LUMPUR: MASS Rapid Transit Corp Sdn Bhd (MRT Corp) says work on Line 2 and Line 3 of the Klang Valley Mass Rapid Transit (MRT) system should start soon, before the cost escalates.

"Any delay will result in the cost rising... we will also be foregoing the economic benefits the MRT can bring to the country," said its chief executive officer Datuk Azhar Abdul Hamid.

The MRT project is the largest infrastructure development ever undertaken in Malaysia. All three lines are estimated to cost between RM80 billion and RM90 billion.

The overall cost of the project, however, will only be finalised once all the contracts are awarded.

Construction of Line 1 from Sungai Buloh to Kajang started in 2011.

Azhar hopes the government will give approval for Line 2 and 3, which consist of the Circle Line looping around the Kuala Lumpur city centre and the north-south line from Selayang to Putrajaya, by the end of this year.

He said this here on Wednesday after commenting on the recent fuel price hike.

Prime Minister Datuk Seri Najib Abdul Razak on Monday announced a 20 sen cut per litre for RON95 and diesel subsidies.

Azhar said the lowering of government subsidies is a natural progression to improve public infrastructure and stabilise the economy.

The public will benefit as the savings from lower subsidies will be put to better use such as building transport terminals, and MRT and light rail transit (LRT) systems, he said.

"The money spent on public transport is not going to be wasted. The infrastructure is going to be here for the long term. Public transport is a logical way forward.

"There will be a better integration between the MRT, LRT, monorail, bus and taxi services in Greater Kuala Lumpur, which will help ease traffic burden and improve road safety," he added.

Azhar said Line 1 of the MRT project will be completed by 2016/2017 and the cost will not exceed RM30 billion.

"For Line 1, we have spent only RM4 billion since 2011. For Line 2 and 3, we will spend no more than RM1 billion for each line in the first 24 months after getting the government approval," he said.

ERL hopes to bid for KL-S'pore HSR project

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on September 13, 2013

EXPRESS Rail Link Sdn Bhd (ERL), controlled by YTL Corp Bhd, wants to embark on new rail projects such as the highspeed rail (HSR) linking Kuala Lumpur and Singapore, boosting its portfolio.

Chief executive officer (CEO), Noormah Mohd Noor said the company is ready to help the government develop an intelligent rail infrastructure here.

ERL has a 30-year concession to operate the KLIA Express and KLIA Transit on the railway line between KL Sentral in Brickfields and the Kuala Lumpur International Airport.

For the HSR link, a consortium, led by YTL, will be formed to bid for the project. The consortium will comprise key players either from Europe, Japan or China, Noormah told Business Times yesterday, at the Rail Business Asia 2013 conference here.
"We are waiting for the government to call for tenders. As a rail operator, ERL will operate the HSR line while YTL will undertake the civil works. For rolling stocks and systems work, we will get foreign experts.

"We are open to negotiations with foreign companies from Spain, China and Japan as far as the systems portion is concern. We are evaluating the suitability of the system," Noormah said.

Land Public Transport Commission (SPAD) CEO Mohd Nur Ismal Mohamed Kamal said negotiations between both the governments of Malaysia and Singapore for the implementation of the HSR link will start next month.

He expects tenders to be called between June and December next year and construction to commence in 2015.

"The HSR will be a good link between Malaysia and Singapore. It will spur economic activities along the corridor.

"I believe Malaysia is ready to undertake the project. As a consortium, we will fund a majority of the works," Noormah said.

'Investments in roads to continue'

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on September 10, 2013

SEAMLESS CONNECTIVITY: Malaysian Govt will continue to accept development proposals, says Works Ministry

CONSTRUCTION of public infrastructure, including toll roads and highways, will continue despite the current emphasis on improving the railway sector.

The Works Ministry will continue to accept the private sector's road and highway development proposals, said its minister Datuk Fadillah Yusof said on the sidelines of the Association of Highway Concessionaires Malaysia (PSKLM) International Conference and Exhibition, here, yesterday.

"Some people still prefer to travel long distance by road and we need to provide for this segment. We will ask the private sector to step in so the capital outlay will come from them," he said.

Fadillah said there is an urgent need to build roads and highways in Johor, Penang, Perak, and Selangor because of the population increase and massive ongoing developments.

"For highways, there are still areas that we need to look at.

Selangor, especially, requires roads to improve connectivity.

The federal government will call on the private sector to put in proposals to build roads in areas such as Shah Alam, Petaling Jaya and Klang. Even Perak has requested us to build more roads in developed areas.

"The government, through SPAD (Land Public Transport Commission), is studying the overall public transport plan for the country. One of the proposals is not only to develop railway infrastructure, but (also) to improve public transport via roads and highways," he said.

Malaysia's railway industry will pump in up to RM160 billion in total investment between now and 2020 to develop the rail infrastructure.

SPAD is now undertaking a series of studies under the Urban Rail Development Plan. Among them are the KL Monorail extension plan from Brickfields to Old Klang Road; the implementation of MRT Line 2 and Line 3; upgrading the Klang Valley double-tracking system; and the KTMB freight line from Subang to Klang.

The commission is also studying the possibility of implementing the high-speed rail (HSR) project linking Kuala Lumpur and Singapore, which is estimated to be worth around RM40 billion. The HSR project is not part of the RM160 billion planned investment by the government.

"While railway infrastructure is good for the country, we still need roads to move from one point to another. We need to build more roads and highways for seamless connectivity," Fadillah said.

Third bridge to Singapore proposed

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on September 10, 2013

MEETING FUTURE DEMAND: Link to Changi could boost Pengerang and Desaru development

JOHOR BARU: MALAYSIA is studying the possibility of  building  a third link between Johor and Singapore in view of the increasing volume of movement between both countries, says Works Minister Datuk Fadillah Yusof.

The proposed bridge will be the third link between Malaysia and Singapore after the Causeway and the Tanjung Kupang-Tuas Second Link.

Both the Causeway and Second Link are currently heavily utilised because of massive development taking shape in Iskandar Malaysia, where Singapore's Temasek Holdings Pte Ltd is also involved.

The proposed third bridge was among the key bilateral issues discussed between Prime Minister Datuk Seri Najib Razak and his Singapore counterpart, Lee Hsien Loong, in May 2009.

Najib proposed the bridge linking the eastern side of Johor, from Desaru and Pengerang to Changi in Singapore to facilitate movement of people, goods and services.

It will complement future development in the less-developed Pengerang and Desaru areas.

"We are open to the idea and will study all options. Anyone from the private sector can put up proposals to facilitate us with our decision making," Fadillah said after opening the International Conference on Highways here.

He said if the project was given the go-ahead, it will be implemented on a government-to-government basis as both countries would be involved in the development, with the private sector financing the Malaysian side.

Meanwhile, Construction Industry Development Board chief executive officer Datuk Sri Dr Judin Abdul Karim said total construction value for this year was expected to be RM110 billion compared with RM120 billion last year.

Judin said companies should depend less on government projects as 85 per cent of the country's developments were undertaken by the private sector.

Rehda optimistic about market prospects

By Sharen Kaur
Published in NST on September 3, 2013

Sharen Kaur

THE Real Estate and Housing Developers' Association Malaysia (Rehda) is optimistic of the prospects of the property market in Malaysia, based on its recent survey findings.

The survey, which covered 150 property developers nationwide, showed that the respondents are launching 18,181 homes, comprising mainly high-rise developments in the second half of this year compared with 10,985 units in the first half of the year.

The majority of the respondents are pricing their products between RM250,000 and RM500,000, followed by the RM1 million bracket.

"This shows that the property market is healthy, driven mainly by local buyers. The top five hot spots include Puchong, Cheras, Kota Damansara, Shah Alam and the KLCC area. We expect to see more superlink houses, serviced apartments and condominiums," Rehda national treasurer Datuk N.K. Tong told a media briefing yesterday.

Tong said for commercial properties, there will be more shop offices, small-office-home-office (soho), small-office-flexi-office (sofo) and small-office-virtual-office (sovo) entering the market.

Half of the respondents indicated that they will be pricing their properties between RM350,000 and RM1.5 million each, while seven per cent said they are selling their units at RM1.5 million and above, he said.

Meanwhile, Rehda president Datuk Seri Michael Yam said although there is bullishness in the local property market, the worst is not over.

"While there has been improved economic stability in Europe and better data in the United States, the dark clouds seem to be heading this way. There is softening of economic growth, particularly in China and in the Asean region.

"Additionally, we expect various possible cooling measures to curb speculation and it would have a bearing on buying decision. We expect a wait-and-see attitude as buyers assess the global situation and the outcome of 2014 Budget," Yam said.

He also said that imposing higher real property gains tax (RPGT) and stamp duty are not the answer to address the increasing property price situation.

This is because speculation only happens in certain hot spots such as Bangsar and Mont Kiara, not in the affordable segment of the market.

Yam believes that there is a need to study closely the various categories of buyers, so a more focus action can be targeted at speculators.

"There are better mechanisms to curb speculation than just applying RPGT universally throughout the country," Yam said, added that the problem with the property market in the country is inadequate supply.

"The best thing is almost a free market. Make sure there is enough supply in the market and the prices will come down," he said.

House prices increasing due to high costs, say developers

By Sharen Kaur
Published in NST on September 3, 2013

KELANA JAYA: Property developers say increasing house prices are due to high compliance and construction costs.

They also attribute the rising cost to government agencies, especially local authorities and utility companies, said Real Estate and Housing Developers' Association Malaysia (Rehda) deputy secretary-general (Melaka branch) Datuk Anthony Adam Cho.

According to Cho, the total development cost of a project can be reduced by around 20 per cent if the compliance cost is lowered.

The development cost of a project is based on five factors, namely construction cost, land cost, compliance cost, interest for borrowings and developers' profits.

In most cases, the development cost is about 70 per cent to 80 per cent of the project's total gross development value, Cho said.

The biggest cost is construction, ranging between 50 per cent and70 per cent of the total project. Compliance cost takes up about 15 per cent to 25 per cent, he said.

Compliance cost includes levies and contribution to authorities, and building infrastructure for utility companies within the project, Cho said.

Developers are also required by Telekom Malaysia Bhd to incur between RM4,000 and RM6,000 per unit to install high-speed broadband infrastructure in their projects, or risk their development application being rejected by the Malaysia Communications and Multimedia Commission.

"Our margins are squeezed also because of the Bumiputera cross subsidies on discounts and low-cost houses. The more expensive the unit, the more discount is given. The poor is basically subsidising the rich.

"We hope the government will review the housing quotas and discounts allocated to Bumiputeras, and also look into other matters relating to property development, which can help to lower the overall cost of doing business," Cho said at a media briefing yesterday. 

MRT Corp: No 'hiccups'

By Sharen Kaur
Published in NST on August 31, 2013


JULY 2017 DEADLINE: Line 1 from Sungai Buloh to Kajang to be completed on time and within budget.


MASS Rapid Transit Corp Sdn Bhd (MRT Corp) is optimistic that the Klang Valley MRT project will be completed without any hiccups.

Chief executive officer Datuk Azhar Abdul Hamid said Line 1 of the MRT project, from Sungai Buloh to Kajang, will be completed as scheduled by July 2017, and within budget.

"Line 1 is currently 24 per cent completed. By Christmas, we expect it to reach 30 per cent, and 50 per cent by the middle of next year," Azhar said in an interview recently.

"The MRT system is an important project for Malaysia. The key challenge will be to effectively manage the interface between the civil and systems contractors. We want to make sure it is well coordinated." 


He said the winning formula has been the awarding of contracts to qualified contractors and suppliers, who have been working round the clock to complete the project as quickly as possible.

"At MRT Corp, we want the best quality work. We do not award contracts to contractors because they are the lowest bidders. We make sure that they have the finances, resources and technical expertise.

"The contractors and suppliers who have won contracts are working on accepted quality, as dictated to them. Safety is the key here," he added.

Azhar said he is upbeat that the MRT project will set new building standards for the local construction industry.

The MRT project is the largest infrastructure development ever undertaken in Malaysia.

In total, the three lines are estimated to cost between RM80 billion and RM90 billion. The overall cost of the project, however, will only be finalised once all the contracts are awarded.

For Line 1, Azhar said the construction cost will not exceed RM30 billion. The amount includes fees for consultants and the project delivery partner.

Line 2 and 3 consist of the Circle Line looping around the Kuala Lumpur city centre and the north-south line from Selayang to Putrajaya. Tenders for both lines may be called by year-end or early 2014.

"Together with the government, we have introduced a performance appraisal system to motivate the contractors.

Contractors who perform well for Line 1, will be given an advantage to work on Line 2 and 3," Azhar said.

Mohamad Salim is MRCB group MD

By Sharen Kaur
Published in NST on August 31, 2013

KUALA LUMPUR: Datuk Mohamad Salim Fateh Din, founder of Gapurna Sdn Bhd (GSB), will be appointed group managing director of Malaysian Resources Corp Bhd (MRCB) effective Monday.

Business Times understands that Mohamad Salim and his 32-year-old son Mohd Imran Mohamad Salim, who is MRCB group chief operating officer, will drive the group to become a leading player in environmental construction.

The new management is expected to launch a roadmap next year, which will set the group's business direction and new strategies.

The plan is to have one-, three-, six- and 10-year roadmaps.

In an earlier interview with Business Times, Imran had said under the new management led by Mohamad Salim, MRCB will move into high-value construction with higher profit margins to fuel the company's growth.

According to Imran, MRCB will focus on niche, specialised areas such as environmental construction. These will involve rehabilitation projects and coastal rehabilitation works.

He said the focus on environmental construction will make the company less dependent on building construction work where margins are being squeezed due to massive competition in the sector.

MRCB will also diversify its property development activities to include niche projects and build more investment assets for higher recurring income.

Mohamad Salim's entry into MRCB is through its 16.8 per cent control of the group, following an asset injection exercise.

To recap, MRCB is trying to buy assets worth RM814 million from Nusa Gapurna Development Bhd (NGD), which is controlled by GSB and the Employees Provident Fund.

This includes taking full control of PJ Sentral Development Sdn Bhd (PJSD).

PJSD is developing the multi-billion ringgit PJ Sentral project in Petaling Jaya, a 70:30 joint venture between NGD and the Selangor State Development Corp.