KL penthouse price hits record RM38m

By Sharen Kaur
Published in NST on March 31, 2014

BENCHMARK: Other luxury projects set to follow Four Seasons Place

THE price of penthouses in Kuala Lumpur have reached record levels, with the latest unit in the market priced at RM38 million, or about RM3,200 per sq ft (psf).

This is the price of a 11,984 sq ft penthouse at Four Seasons Place Kuala Lumpur.

There are two units, and the owner is keeping one and negotiating to sell the other to an Asian investor.

Meanwhile, market observers are waiting to see if the next project in Kuala Lumpur can match or beat that price.

C.H. Williams Talhar & Wong managing director Foo Gee Jen said it could take three to five years or longer for a project to come up in Kuala Lumpur and offer penthouses at above RM38 million.

A few luxury projects have started in Kuala Lumpur, including Banyan Tree Residences, a joint development by Pavilion Kuala Lumpur and Banyan Tree Holdings; and Harrods Hotel & Residences developed by Tradewinds Corp Bhd and Qatar Holding LLC.

Foo said built-up areas of penthouses at Banyan Tree and Harrods range from 4,000 sq ft to 6,000 sq ft.

Although smaller than Four Seasons Place's, they are more expensive in terms of price psf.

"Banyan Tree and Harrods are selling their penthouses at more than RM3,300 psf. With different services and finishing, it is possible for the price to hit RM4,000 psf. We will have to wait and see if any developer can match that," Foo said.

At an average of RM3,300 psf, the penthouses at Banyan Tree and Harrods will cost between RM14 million and RM21 million each. At RM4,000 psf, they would be worth RM16 million to RM24 million.

Meanwhile, penthouses in Singapore and London are hitting record prices nearly every year.

In Singapore, a staggering 21,108 ft three-storey penthouse is set to not only be the largest-of-its-kind-development in the city state, but also the most expensive. It is priced at S$30 million (RM98.4 million) and will be built on Guocoland Ltd's Clermont Residence in Tanjong Pagar.

In London, SP Setia Bhd is also planning to price the Phase 2 penthouses at its Battersea project for up to STG30 million (RM1.62 billion) each. There are five penthouses in Phase 1 of the project, each worth more than STG15 million.

TCB eyes RM2b profit from Perdana Quay

Published in NST on March 31, 2014

TRADEWINDS Corporation Bhd (TCB) expects to net a profit of RM2 billion from its Perdana Quay integrated resort development, here, says its director of project and technical services Tey Kok Kheong.

The project, which carries a development value of RM4 billion, will be carried out in six phases over the next 10 to 12 years.

Perdana Quay's integrated development will involve the development of some 96ha of land at Pantai Kok-Teluk Burau on the northwest of Langkawi.

The property will be developed into five distinct components, including waterfront holiday villas, lake homes, themed attractions and other luxury residential properties.

"We estimate the gross development cost for this project to be around RM2 billion, with net profits kicking in once the themed attractions open," he told Business Times.

The first phase of the Perdana Quay development will include natural and family-oriented attractions like butterfly, forest and water-themed adventure parks, of which some have started operations.

The development is also set to include retail outlets, hotel and convention facilities aimed at the core China, Middle East and United Kingdom tourists and shoppers.

TCB's development of a luxury deluxe resort, The Burau, which is sited on the former Mutiara Burau Bay Resort site, kicked off yesterday.

The Burau, which will be developed at a cost of RM420 million, is expected to be completed by the end of 2017.

It will see the construction of 245 deluxe rooms and 60 luxury villas, which includes 26 ultra-luxury villas on Pulau Anak Burau.

On the project's financing, TCB's group chief executive officer Shaharul Fareez said it will be a combination of debt-financing and equity.

He did not rule out the possibility of tying up with specialist investors to help build its proposed water theme park.

"We have the site and the resources and we are seeking the expertise … we think this is a good marriage," he told a media briefing on Saturday.

TCB is one of Malaysia's premier leisure and hospitality owner operators, and its investment in Langkawi includes hotels such as The Danna Langkawi, Meritus Pelangi Beach Resort and the former Mutiara Burau Bay Resort, which has contributed over 600 rooms to the island.

ENDS

New KTMB chief sets 5-year plan to turn company around

By Sharen Kaur
Published in NST on March 27, 2014

KUALA LUMPUR: The new chairman of Keretapi Tanah Melayu Bhd (KTMB), Datuk Nawawi Ahmad, has set a five-year business plan for the company to become profitable.

The plan includes getting more locomotives and fixing the ailing infrastructure, said Railwaymen's Union of Malaya president Abdul Razak Md Hassan Razak.

He said Nawawi will launch a brand-building exercise to build public confidence and implement new marketing strategies and promotional activities to boost both cargo and passenger revenues.

For fiscal year 2013, KTMB achieved a revenue of RM380 million while expenditure was around RM700 million.

KTMB, which is involved in freight, intercity and commuter train services, and property and advertisement, has been bleeding red ink since it was corporatised in 1992 due to high operating costs.

The company did make net profits of between RM9 million and RM15 million from 1993 to 1995.

Abdul Razak said Nawawi's direction for KTMB will supercede the business plan launched by its president Datuk Elias Kadir last year.

"Nawawi sees the potential in cargo and he will find ways to increase revenue from RM130 million currently to more than RM500 million. This can be achieved if there are enough rolling stocks and proper infrastructure ," he said.

PDZ looking to raise funds

By Sharen Kaur
Published in NST on March 27, 2014

BUYING O&G ASSETS: Sources say company may consider private placement, rights issuance or bonds

TAN Sri Robert Tan Hua Choon, a major shareholder of PDZ Holdings Bhd, may consider a fundraising exercise to help finance the acquisition of oil and gas (O&G) assets, sources said.

The fundraising exercise may include a private placement, rights with warrants issuance or convertible bonds, they said.

Tan owns 19.13 per cent of PDZ and has been a shareholder of the shipping firm since November 2000. He plans to venture into the O&G sector to diversify earnings and boost profitability.

PDZ currently operates six vessels in Malaysia, Singapore, Brunei and Myanmar.

Tan sees the O&G sector as having the biggest potential for PDZ due to the size of the industry.

Prime Minister Datuk Seri Najib Razak said on Tuesday capital expenditure in the Malaysian O&G upstream business is forecast to be around RM200 billion over the next five years.

He also said some 20 per cent of the global upstream spending of around US$700 billion (RM2.31 trillion) in the sector over the next decade would be in Southeast Asia.

Tan was not available for comment.

“His close link with Petroliam Nasional Bhd may land him some jobs. To be in the game, PDZ needs a good O&G play, which is why Tan is actively looking to buy assets,” one of the source said.

“He is not going to leave his cash idle in PDZ without doing anything. He wants to grow PDZ by diversifying. He may venture into logistics.” 

Tan was looking to buy O&G services provider Efogen Sdn Bhd but aborted the plan last month.

For the first quarter to September 30 last year, PDZ posted a net profit of RM778,000 from a loss of RM265,000 previously. This was despite an 18.33 per cent drop in revenue to RM43.6 million.

For the period, PDZ had a net asset value (NAV) of 11 sen and its net cash position was RM16 million.

Analysts believe the stock, which is currently hovering around 12 sen, will have potential to hit 20 sen or above due to the diversity of its core businesses.

“If PDZ does acquire an O&G asset soon, 20 sen to 25 sen is achievable, given that its NAV is 11 sen. PDZ has been loss-making not because of management incompetence but because of slow growth in the overall shipping industry,” an analyst said.

ENDS

Four Seasons Place KL buyers mostly Malaysians

By Sharen Kaur

RM3,000 PER SQUARE FEET: Some even paid cash for units priced from RM3m upward

MALAYSIANS bought the majority of the private residences at the RM3 billion Four Seasons Place Kuala Lumpur, which transacted at a record RM3,000 per square feet, sources said.

According to the sources, some buyers even paid cash for the properties but they declined to reveal the names of the buyers.

The Four Seasons Place is a 1.5 million sq ft integrated development owned by Venus Assets Sdn Bhd and is located next to the Petronas Twin Towers.

It is being constructed on a 1.04ha site that the company acquired for RM90 million in 2003 from the estate of the late Khoo Teck Puat, a former shareholder of Standard Chartered Plc.

Venus Assets is controlled by Ipoh-born Singapore tycoon Ong Beng Seng, businessman Tan Sri Syed Yusof Syed Nasir and the Sultan of Selangor, Sultan Sharafuddin Idris Shah.

The company's director, Datuk David Ban, also has a stake in the development.

The 65-storey Four Seasons Place will house the 231-room Four Seasons Hotel and its 242 units of private residences atop a 300,000 sq ft upscale retail mall.

The residences which will take up 42 floors, comprising 232 typical units (1,098 sq ft to 3,843 sq ft), eight duplex (6,512 sq ft to 7,039 sq ft) and two penthouses (11,984 sq ft).

Around 70 per cent of the residences have been sold since May last year, including the eight duplexes, a source told Business Times.

At RM3,000 psf, this means that the typical units were sold at between RM3 million and RM12 million, while the duplexes were offered at more than RM20 million each.

The two penthouses are worth about RM38 million each.

It is understood that Ong will keep one of the penthouses while the second unit will be sold to a ready buyer at RM3,300 psf.

"Most of the buyers are not speculators. They are collectors who want to keep the units they bought because of the location and the Four Seasons brand name," the source said.

The Four Seasons Place, when completed, will be Malaysia's second tallest skyscraper after the Petronas Twin Towers.

The residences will provide the ultimate in prestige and exclusivity for owners with a rooftop sky lounge, private dining pavilions and a swimming pool 330m above ground level.

The Four Seasons Place (right), when completed, will be Malaysia’s second tallest skyscraper after the Petronas Twin Towers.

May launch for Battersea Phase 2

By Sharen Kaur

PRIME PROPERTIES: BPHC confident 254 apartments worth £1.6b will be sold within a month

Battersea  Project Holding Co Ltd (BPHC) chairman Tan Sri Liew Kee Sin said Phase 2 of the Battersea project in London, comprising 254 apartments worth £1.6 billion (RM8.74 billion),
will be sold within a month of its launch on May 1.

The apartments range from studio units to five-bedroom penthouses.

Liew told Business Times that the apartments will be sold at £2,300 per  square foot (psf).

Last year, the company sold all 861 apartments in Phase 1, priced at an average of £1,100 psf, within three weeks.

BHPC is currently looking to sell five penthouses in Phase 1, each worth more than £15 million.

“We are in no hurry to sell as the Battersea project still has a long way to go.

We have a few buyers but we want to be careful as to whom we sell the units to,” he said.

The £8 billion Battersea project, which is owned by BPHC, is slated to complete in 2022.

BPHC is controlled by SP Setia Bhd and Sime Darby Bhd, with 40 per cent stake each, and the Employees Provident Fund, with a 20 per cent stake.

Liew is president and chief executive officer of SP Setia but he is leaving the company next month.

However, he is staying on as BPHC chairman until September next year to ensure continuity and maintain confidence.

According to him, the Phase 2 apartments are more appealing as they form part of the 17-storey power station.

The apartments are positioned within the facades of the western and eastern flanks of the power station and on top of the central boiler house.

“The development will include two levels for parking, three floors of luxury retail and six storeys of offices, as well as apartments.

We are selling all the apartments  and will lease the offices and retail mall to generate long-term income,” Liew added.

He declined to reveal the development cost for Phase 2.

It was reported that repairs of the power station building would cost about £700 million.

Longer Battersea, Qinzhou roles for Liew

By Sharen Kaur
Published in NST on March 21, 2014

SHAH ALAM: Tan Sri Liew Kee Sin, who is leaving SP Setia Bhd next month, will continue to head the Battersea project in London and the Qinzhou Industrial Park development in China for a further 18 months to ensure continuity and maintain confidence.

  The RM40 billion Battersea project and the Industrial Park in China are expected to be developed over the next 10 to 15 years.

  Liew, who is SP Setia president and chief executive officer, will step down from his posts on April 30 after 19 years in office.

  However, Liew will remain as  Battersea Project Holdings Co Ltd chairman and  Qinzhou Development (M) Consortium Sdn Bhd managing director until September 2015.

 "My focus now will be on my family and developing the Battersea and Qinzhou projects, which will take up a lot of my time.

 "It is not easy to just walk off as I have been heading SP Setia for so long. But there will be a smooth transition," he said after a press conference, here, yesterday.

  Liew also said he will not take on offers to advise SP Setia.

  "I cannot linger around the company as it needs its own space to grow. The projects in London and China are important for Malaysia because of the strong government-to-government ties and the board has entrusted both to me. Those who know me  will know that I am hands-on. I will do whatever necessary to ensure the success of  the two projects before I move on to pursue other things," he said.

   Liew believed that SP Setia will continue to grow under acting-president and CEO Datuk Voon Tin Yow and his management team.

   He said with 1,935ha of prime land and potential gross development value of RM71 billion from projects in Malaysia, London, Australia, China and Vietnam, coupled with unbilled sales of RM9.6 billion and RM2.2 billion in cash, will provide SP Setia with a solid footing on which to grow.  

  Meanwhile, Voon is upbeat that SP Setia's net profit and revenue will be on an upswing  in the next three years.

  "We will discuss soon with PNB (Permodalan Nasional Bhd) on  SP Setia's future and what it wants for the company. We will chart out a new path together," he said.  

  PNB and other government-linked funds control 72 per cent of SP Setia.

Eco World to launch RM8b Klang project

By Sharen Kaur
Published in NST on March 20, 2014

 Eco World Development Group Bhd, a company set up by former SP Setia Bhd's directors and executives, will launch EcoSanctuary, a new project in south Klang worth RM8 billion.

 The project is part of Tropicana Corp Bhd's 468.8ha Tropicana Aman development, which was previously known as Canal City.

 Eco World is acquiring 123.5ha from Tropicana for RM470.67 million, or RM35 per square feet.

 Trading of Eco World and Tropicana shares was suspended yesterday from 2.30pm to 5pm.

 Prior to the suspension, Eco World rose two sen, or 0.4 per cent, to RM4.69, while Tropicana was up five sen, or 3.6 per cent, to RM1.43.

 Both parties expect to conclude  the land deal in the second half of this year.

 Tropicana said in a statement that it will gain RM170 million from the land sale, which will translate into incremental net earnings per share of 12 sen for fiscal year 2014.

 Its group executive vice-chairman Tan Sri Danny Tan Chee Sing said the sale is to unlock the value of the sizeable landbank and monetise assets to boost its balance sheet.

 Meanwhile, Eco World president and chief executive officer Datuk Chang Khim Wah said the deal is in line with its strategy to replenish its landbank in major growth corridors to expand its operations.

   He said Eco World would be able to launch the project after completion of the deal as the land comes with an approved development order.

   Chang said the eight-year project, which will feature eco-themed mixed residential and commercial properties, is expected to start by year-end.

 EcoSanctuary will be the company's maiden township launch in the lang Valley under the Eco World brand.

 Eco World has been busy buying land since last year and now has 1,214ha in Greater Kuala Lumpur, Johor and Penang with estimated gross development value of   RM30 billion.

 Business Times reported recently that Eco World is participating in a request for proposal by Penang Development Corp to buy 190ha on a hillock close to the landing point of the new bridge crossing between Batu Kawan and Batu Maung on Penang island.

MAS - Business strategy remains intact

By Sharen Kaur
Published in NST on March 11, 2014

LOW PRESSURE: MH370 incident will not dent MAS bid to restore profitability, says official

THE Malaysia Airlines flight MH370 incident will not put a dent in the carrier’s business strategy, says a company official.

 The official, who spoke on condition of anonymity, said the plan will remain intact until and unless it becomes necessary to adopt a new one.

“For now, the business strategy, which is churning out positive gains, will remain as it is,” the official said.

The airline’s business strategy is aimed at restoring profitability by significantly cutting capacity and focusing on its premium sectors.

Flight MH370, which carried 239 passengers, including 12 crew members, disappeared while flying over South China Sea on a flight from Kuala Lumpur to Beijing early on Saturday.

The incident weighed down on MAS’ share price on Bursa Malaysia in the morning session yesterday.

The counter, which closed at 25 sen last Friday, fell to 20.5 sen in morning trade but later rebounded to close one sen lower at 24 sen.

It was the most active stock on the local bourse with 385 million shares traded.

Meanwhile, analysts said MAS’ air flight safety procedures should not be blamed for the disappearance of flight MH370.

“The issue is more on airport security or unforeseen problems. I don’t see any reason why MAS might want to change its business strategy as a result of this incident,” says Mercury Securities
head of research Edmund Tham.

On the sharp movement in the airline’s share price yesterday, Tham expects it to be temporary and “the stock will rebound”.

“The lower share price is because of a drop in investors’ sentiment following the incident.

I believe investors may turn to other aviation stocks or other sectors for a while.

“The main issue is MAS’ profitability and not so much the missing plane. It is up to Khazanah (Nasional Bhd) on whether to prop up the price,” Tham told Business Times.

MAS stock dropped 19 per cent when it announced a fourth-quarter net loss of RM342 million for fiscal year 2013 on February 18.

HwangDBS Vickers Research has maintained a “fully valued” recommendation on MAS’ shares, with a target price of 27 sen a share.

Hong Leong Investment Bank (HLIB) Research said it expects minimal expenses to be borne by MAS over the MH370 incident and any compensation would likely be covered by insurance, as
with previous cases.

On the airline’s share price performance, HLIB expects selldown pressure in the immediate term.

The research firm maintained a “sell” call on the counter with a revised target price of 20 sen from 25 sen previously.

Avani Sepang sees revenue exceeding RM50m this year

By Sharen Kaur
Published in NST on March 11, 2014

SEPANG: Avani Sepang Goldcoast Resort is confident its revenue will exceed RM50 million this year as it targets Asia Pacific and European travellers.

The five-star resort (formerly known as Golden Palm Tree Resort & Spa) in Bagan Lalang, Sepang, expects its revenue to post double-digit growth year-on-year in 2014, said its general manager Thomas Fehlbier.

The resort, which began operations in 2010, is owned by Sepang Goldcoast Sdn Bhd (SGSB) and operated by Thailand-based Minor International.

SGSB is a joint venture between the Selangor investment arm Permodalan Negeri Selangor Bhd and Sepang Bay Sdn Bhd, a subsidiary of Indonesia's Istana Group.

They have invested more than RM200 million to set up the resort, which has 389 studio, two-bedroom and three-bedroom villas that spread out into the sea in the shape of a palm tree.

Minor International took over the management of the resort from Hong Kong-based Swiss-Belhotel International a year ago and has completed a re-branding exercise recently.

Avani is among the more than 100 hotels and resorts in Southeast Asia owned and managed by Minor International.

Fehlbier said under the new management, Avani Sepang Goldcoast is moving up its ante to provide world-class services to travellers.

Some RM7 million has been invested to upgrade the lobby and clubhouse, and another RM8 million will be spent to set up a kids club, a multi-purpose hall and a pool, he said.

"We are changing our marketing approach by reducing occupancy and increasing room rates.

"We are targeting travellers who want to stay for at least a week, especially Europeans and Australians," he said.

The majority of the stay-in guests are locals and the rest are tourists from Australia, Vietnam, Singapore and parts of Europe.

"We are quite confident that more foreigners will stay with us because of the changes that we are making. We are trying to regain the European market," he said.

The villas are priced at between RM500 (studio) and RM2,400 (three-bedroom) a night and the rates will be increased by 15 per cent this year, Fehlbier said.

Last year, the rates were raised by 18 per cent.

I-Berhad to turn i-City into ultrapolis landmark

By Sharen Kaur
Published in NST on March 11, 2014

SCALING UP: Entrepreneur wants project to become world-class development and destination in Selangor

THE i-City project here, which is worth RM7 billion currently, is being "scaled up" further by its owner I-Berhad.

Founder and executive chairman Tan Sri Lim Kim Hong said there will be new product offerings soon that will turn i-City into an ultrapolis landmark and "centre of gravity" for Selangor.

These include adding a water-based ride, four- and five-star hotels for business and leisure, and better infrastructure, Lim said.

The Selangor government and I-Berhad are building a RM63 million flyover to link the Federal Highway to i-City.

"We are not stopping here. We want i-City to be a world-class development and destination," he said in an interview, here, yesterday.

I-Berhad is the master developer of the 29ha information communications technology (ICT)-based urban development, which comprises residential and office towers, hotels, a mall and theme parks.

The land was acquired in 1993 for RM60 million from the Selangor government and is currently worth RM400 million, Lim said.

The project was envisaged to be an ICT hub with gross development value (GDV) of RM1.5 billion when it started in 2005.

However, Lim later proposed to turn it into an even more attractive development by including tourism-related products and services.

In 2011, I-Berhad won a 21-year concession from the state government to manage an additional 12ha.

This raised the project's GDV to RM3 billion.

The award of MSC status and higher plot ratio in the last few years have helped to increase the GDV of the project to RM5 billion.

"As an entrepreneur who started this project, I am determined to make it sustainable for buyers, investors and stakeholders.

"The project has contributed to the state economy and set new benchmark in property prices," Lim said.

Lim has invested more than RM1.2 billion in the i-City project since it was started.

The project is now 20 per cent developed with more than RM2 billion worth of properties launched.

The i-City project in Shah Alam is being scaled up into an ultrapolis, says I-Berhad founder and executive chairman Tan Sri Lim Kim Hong (left). With him is vice-chairman Datuk Eu Hong Chew. Pic by Mohd Asri Saifuddin Mamat

2 more regional airlines for SkyPark

By Sharen Kaur

KUALA LUMPUR: Two more regional airlines are expected to begin flying to SkyPark Terminal at the Sultan Abdul Aziz Shah Airport (SAAS) in Subang this year, sources said.

Business Times understands that the two  airlines from Indonesia and Thailand, which operate turboprops, are set to fly there in the second half of the year.

Wings Air, a unit of Indonesia’s PT Lion Group, is one of them, say the sources.

They also said the airlines are now talking to Malaysia Airports Holdings Bhd (MAHB) and Subang SkyPark Sdn Bhd (SSSB) for parking and landing rights.

Wings Air earlier planned to fly to Subang next year but changed its plan to ride on Asia-Pacific’s passenger growth.

“SkyPark Terminal is now a vibrant aviation centre. Its parking and landing charges are among the lowest,” said a source.

“SSSB is charging hangar space of about US$2 (RM6.50) per sq ft. Operating costs are also the lowest in terms of support staff and facilities.”

To date, regional airlines such as FireFly, Malindo Air and Berjaya Air have made SkyPark Terminal their base.

Thai Lion Air, a sister company of Malindo Air (jointly owned by Lion Group and Malaysia’s National Aerospace and Defence Industries), will fly to Subang this month.

The no-frills carrier will offer four weekly flights between Subang and Hat Yai starting March 21.

SSSB, meanwhile, holds a 59-year MAHB concession for SkyPark Terminal (formerly Terminal 3), starting 2008.

Based on data released by the International Air Transport Association (Iata), Asia-Pacific passenger traffic is forecast to grow at a compounded annual growth rate of 5.7 per cent between 2013 and 2017.

Traffic within the region will represent 31.7 per cent of global passengers in 2017, up from 28.2 per cent in 2012.

US$80m to redevelop Terminal 2 in Subang

By Sharen Kaur
Published in NST on March 7, 2014

TERMINAL 2 at Sultan Abdul Aziz Shah Airport in Subang, Selangor, will be redeveloped for about US$80 million (RM261.2 million) this year to accommodate growth in turboprop operations, sources said.

The redevelopment is an expansion of the SkyPark Terminal (formerly known as Terminal 3), which has eight parking bays and five remote parking spots.
"The airport apron is shared by several operators and is running about 40 per cent beyond capacity, with some planes double parking. It is crucial to redevelop Terminal 2 and cater for additional requirements," said a source.
Terminal 2 has been sitting idle since 1998 when the Kuala Lumpur International Airport in Sepang started operations.
The redevelopment will be undertaken by Subang SkyPark Sdn Bhd (SSSB).
SSSB won a 59-year concession from Malaysia Airports Holdings Bhd (MAHB) to redevelop Terminal 2 and 3 in 2008 for about RM300 million. The deal included building five hangers for RM100 million.
"SSSB is awaiting approvals from MAHB. It is targeting to start redeveloping Terminal 2 in the third or fourth quarter of this year," said a source.
According to the source, SSSB will spend around US$50 million to construct a new terminal building with a floor space of 300,000 to 400,000 sq ft, as well as retail and commercial facilities.
He said the airport apron, with more than 20 aircraft bays, will be built by MAHB for between US$25 million and US$30 million.
MAHB has demolished the Eurocopter Malaysia facility at Terminal 2 to make way for the apron. Eurocopter Malaysia moved to a new facility opposite SkyPark Terminal about 10 months ago.
When the redevelopment is completed in 2016, both SkyPark Terminal and Terminal 2 will have a combined passenger handling capacity of five million.
SkyPark Terminal houses the operations of Firefly, Malindo Air, Berjaya Air, VistaJet and Westair.
According to the MAHB website, aircraft movement at SkyPark Terminal had grown by 16.3 per cent to 74,008 in 2012 from 63,616 in 2010, the first year it started operations.
The number of passengers handled by the terminal had surpassed its one-million capacity.
The source said Firefly and Malindo Air, which operate 14 and five turboprops, respectively, are expanding their fleet to 17 and 13, respectively, by the end of this year.
 

Boosting road connectivity in Peninsular Malaysia

By Sharen Kaur
Published in NST on March 6, 2014

SPURRING DEVELOPMENT: Road projects worth RM40b planned for Peninsular Malaysia

  ROAD projects worth about RM40 billion will be implemented in Peninsular Malaysia over the next three to four years to boost transport connectivity.

  These include proposals put forward by North-South Expressway (NSE) operator PLUS Expressway Bhd and Maju Expressway Sdn Bhd, said  Malaysian Highway Authority (MHA) sources.

  PLUS is proposing a new toll road in Senawang, Negri Sembilan, that links the Kajang-Seremban Highway with the NSE.

  The project, estimated to cost RM2.5 billion, is aimed at cutting congestion on the NSE and boosting revenue from toll collection.

  Maju Expressway is looking to extend its  MEX highway to connect to the Kuala Lumpur International Airport in Sepang. The project is expected to cost about RM1 billion.

   "We are evaluating all the proposals. Decisions will be made after a thorough study on their technical and financial capabilities. The roads will spur property development and investment," said a source.

   A 465.3km road  linking Kota Baru to Simpang Pelangi in Bentong, Pahang, worth RM8 billion, is also in the works.

   It has been reported that a joint venture between MMC Corporation Bhd and Mudajaya Group Bhd is the front-runner for the job.

   Other proposed road projects include Kuala Lumpur-Arah Serendah Expressway (KLAS), Jelapang-Selama-Batu Kawan  Expressway (Jelas), Sungai Juru-Batu Kawan Expressway, Johor Baru-Pasir Gudang Elevated Expressway and Port Dickson-Banting Expressway.

   Under the 10th Malaysia Plan (2011-2015), seven highways worth about RM19 billion will be built to  improve traffic in Selangor.

   They include the West Coast Expressway (WCE), Kuala Lumpur Outer Ring Road (KLORR), Damansara-Shah Alam Highway (DASH), Sungai Besi-Ulu Klang Expressway (SUKE), Kinrara-Damansara Expressway (Kidex) and Serdang-Kinrara-Putrajaya Expressway (SKIP).

   Works Minister Datuk Fadillah Yusof told Business Times two months ago that the projects were in the planning stage.

  "They must  meet the condition precedent. We will look at technical capabilities and financial strength and go through public consultations for the road alignments before they can proceed."

  SUKE and DASH will be implemented by Projek Lintasan Kota Sdn Bhd and WCE by IJM Corporation Bhd.   Kidex will be undertaken by Kidex Sdn Bhd while Ahmad Zaki Resources Bhd's unit, EKVE Sdn Bhd, will complete the RM1.5 billion KLORR.

 

Real estate market may see upswing next year

By Sharen Kaur

MIEA PROJECTION: Transaction value for properties set to exceed RM143b in 2015

   THE local real estate market will be on an upswing next year with the value of transactions for all types of properties forecast to exceed RM143 billion.

    Malaysia Institute of Estate Agents (MIEA) president   Siva Shanker expects the market to improve by between 10 and 15 per cent next year, after a slow performance last year.

  “Everybody thinks 2014 will be a bad year for the property market. In my mind, it was bad last year.

  “My take on the sector is that in the first two quarters of this year, the market will shrink as there is still some knee-jerk reaction because of 2014 Budget  and the government’s cooling measures,”  he said, after introducing a new tag system for real estate agents and negotiators, here, yesterday. 

  “The second half of 2014 will see an increase in property transactions and this will spill over into 2015.

  There will be a slowdown at first, followed by consolidation and then a new high.” Siva said the only hiccup next year would be the April 1 implementation of the goods and services tax (GST).

   He believes it may cause a dent in the market,  but the impact could be minimised as the government continues to educate the public on GST.

   “I  expect an upswing in the property market in 2016 and 2017, once all these are settled and people get used to the new measures and understand the GST better.”  \

   According to the National Property Information Centre,  the   transaction value for all types of properties in 2012 was RM142.8 billion (427,520 units).  It is still compiling data for 2013.

  Meanwhile,  Siva expects an improvement in the property market, thanks to the new tag system for real-estate agents and negotiators, introduced by the Board of Valuers, Appraisers and Estate Agents     Starting May 1,  registered agents and negotiators  are required to use an identification tag whenever they buy or  sell properties.

(From left) MIEA board representative Eric Lim, Valuation and Property Services Department director-general Datuk Abdul Hamid Abu Bakar and MIEA president Siva Shanker at the briefing in Putrajaya yesterday. Pic by Mohd Fadli Hamzah