No ''rail' urgency, or immediate need for KL-Singapore HSR amid fiscal constraints, say experts

 By Sharen Kaur/ NST Business Times

The Kuala Lumpur-Singapore High-Speed Rail (HSR) project is unlikely to be implemented in the near term due to Malaysia’s current economic growth trajectory and fiscal constraints, according to Sunway University economics professor Dr. Yeah Kim Leng.

KUALA LUMPUR: The Kuala Lumpur-Singapore High-Speed Rail (HSR) project is unlikely to be implemented in the near term due to Malaysia's current economic growth trajectory and fiscal constraints, according to Sunway University economics professor Dr. Yeah Kim Leng.

Dr. Yeah, who also serves as an external member of Bank Negara Malaysia's monetary policy committee, noted that the government has indicated the HSR project will only proceed if it is privately funded.

"Government support for the HSR will be kept minimal to avoid disrupting its medium-term fiscal consolidation framework, which aims to steadily reduce the fiscal deficit and government debt levels," Dr. Yeah told Business Times.

He added that the project could become financially feasible for the government, once fiscal pressures are significantly reduced, likely after 2030.

Finance Minister II Datuk Seri Amir Hamzah Azizan has confirmed that discussions to revive the HSR project have not yet begun.

In an interview with Singapore's The Straits Times ahead of the 11th Malaysia-Singapore Leaders' Retreat scheduled for late 2024, he emphasised the government's focus on completing existing transportation infrastructure projects to support economic growth. 

"HSR is something that we will always consider, and a study has been conducted. However, at the moment, the Cabinet has not discussed it to that level. We are waiting for the Cabinet's decision," Amir Hamzah told ST.

He noted that Malaysia is currently prioritising the completion and further development of its existing transportation projects, including the Gemas-Johor Bahru Electrified Double-Track Rail Project (Gemas-JB EDTP) and the East Coast Rail Link (ECRL).

"The priority must be on what we have today... The focus should be on realising the value from Gemas-JB EDTP and ECRL. This is where the government's attention should be," he said.

Meanwhile, economists remain divided on the necessity of another railway project, given that the Gemas-JB EDTP is nearing completion and the ECRL is progressing steadily.

For now, Malaysia's strategy centres on optimising its current transportation investments before considering new large-scale infrastructure projects like the HSR, said Olive Tree Property Consultants chief executive officer (CEO), Sr. Samuel Tan.

"While waiting for a final decision for the HSR, there are issues to be addresed. Do we need the HSR? ⁠Can we afford it if there is not governmental funding? ⁠Is there an alternative?

"If there is no governmental funding or guarantee, then it has to be a private driven initiative. Securing strong investors will be a major issue. Only financially strong companies will be willing to take the risks. And often these will come from foreign countries. Arising from these will be the possibility of increased national debt, something we should avoid.

"To ensure viability, the fares must be high enough. The question arising is affordability and the sufficiency of ridership," he told Business Times.

Tan said assuming that the HSR does not proceed, Malaysia cna bank on the double-tracking electrified system and the ECRL.

''Although slower, the two major lines still serve the purpose of an alternative mode of transportation and the fares are likely to be cheaper," he said.

Delaying the MRT3 construction allows government to replenish funds, analysts said

The Mass Rapid Transit 3 (MRT3) construction, which is expected to begin in 2027, will buy the government more time to strengthen its fiscal position for the project.

Tourism and transport consultant YS Chan noted that MRT3, while necessary in the long term, is not an immediate priority.

"Similar to the high speed rail (HSR) project, the MRT3 is not urgently required but eventually needed. Obviously, funds are in short supply currently, hence the delay until such time they become available and can be beyond 2027. And just like the HSR, the MRT construction would become costlier with each passing year," he told Business Times.

Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) CEO Datuk Mohd Zarif Hashim recently said that on-site construction will only commence after completing land acquisition, a process expected to take up to two years, extending into 2026.

CIMB Securities Sdn Bhd analyst Mak Hoy Ken said the delay aligns with expectations, as the government is likely to revisit the project after implementing its petrol subsidy rationalisation scheme, targeted for mid-2025.

The government, under the revised 2023 Budget, has aimed to cut MRT3 project costs to below RM45 billion, down from the RM68 billion estimated in 2018. Of the original RM68 billion, RM34 billion was allocated for construction works.

"Land acquisition issues aside, the move to extend the planning process provides the government with much-needed breathing space to recalibrate its fiscal position and wriggle room to undertake a re-tendering exercise, as the project's key inputs may have changed since the expiry of its original tender validity in March 2024.

"Although a pushback in MRT 3's construction timeline to 2027 could be a minor setback for the construction industry, we firmly believe that the project will still continue, given its strategic importance as the final piece of the Klang Valley MRT network, integrating with existing rail systems that runs on the periphery of Kuala Lumpur city centre," he added.

Besides allowing the government to better allocate resources, transport expert Dr Rosli Azad Khan said the government can focus on increathe efficiency and ridership of Mass Rapid Transit (MRT) 1 and MRT 2 and other existing public transport systems  

"If these systems remain underutilised, the additional capacity MRT3 promises will not be worth the investment," he said  

He added that delaying MRT3 provides time to reevaluate urban growth patterns and population densities. This ensures that the MRT3 network is aligned with areas of highest need, increasing the likelihood of higher ridership when completed. 

For the construction industry, Rosli said while delays may create short-term uncertainty for the construction industry, this does not necessarily harm the industry in the long run. 

"Rushing into MRT3's construction without ensuring optimal planning and financing could lead to cost overruns and mismanagement, as seen with MRT1 and MRT2.

"A delay provides time to assess lessons learned, ensure better procurement processes, and maximize project value, ultimately benefitting the industry through streamlined execution and improved reputational outcomes," he added.

He also said that other projects such as rail double tracking, highways, housing, and renewable energy projects—are still ongoing, offering opportunities to keep the construction industry engaged.

"A delay in MRT3 does not equate to the collapse of the construction sector, as resources can be redirected to other government or private sector projects in the interim."

Also known as the Circle Line, MRT3 spans 51 kilometres (km), including 40 km of elevated track and 11 km underground, with a capacity to handle 25,000 passengers per hour in each direction. The full journey will take roughly 73 minutes and include 32 stops.

The project, which has been on the drawing board for several years, has seen progress with one of its five main packages awarded to HSS Engineers Bhd in August 2022. 

Source: https://www.nst.com.my/business/corporate/2024/11/1137901/no-immediate-need-kl-singapore-hsr-amid-fiscal-constraints-say

RM600mil upgrade for Carcosa Seri Negara and Sultan Abdul Samad Building

 By Sharen Kaur / NST Property - October 18, 2024 

Carcosa Seri Negara, one of Kuala Lumpur’s most iconic historical landmarks, along with the Sultan Abdul Samad Building, is set to undergo a significant restoration to enhance their cultural value.  

KUALA LUMPUR: Carcosa Seri Negara, one of Kuala Lumpur's most iconic historical landmarks, along with the Sultan Abdul Samad Building, is set to undergo a significant restoration to enhance their cultural value. 

According to the Economic Outlook 2025 report released by the Ministry of Finance (MOF), Khazanah Nasional Bhd has allocated RM600 million for the restoration efforts, aimed at preserving Kuala Lumpur's status as a cultural and creative hub. 

The funds will also be used to construct a multi-storey bridge connecting the Perdana Botanical Garden with Carcosa Seri Negara.

Sr Samuel Tan, chief executive officer of Olive Tree Property Consultants, emphasised the importance of preserving heritage buildings such as Carcosa Seri Negara and the Sultan Abdul Samad Building.

He told NST Property that Khazanah's initiative is timely, as Malaysia is preparing for Visit Malaysia 2026, which is expected to attract a large number of tourists, many of whom will be interested in historical sites.

The Economic Outlook 2025 report predicts Malaysia will benefit from a global recovery in the travel and tourism industry next year. 

The government plans to boost promotional efforts for Visit Malaysia Year 2026 through strategic advertising and increased visibility at the World Expo.

Tan noted that the RM550 million allocated for Visit Malaysia 2026 is substantial and that Khazanah's plan to restore these two heritage buildings is a positive move.

"Not only will it boost tourism, but these landmarks are a legacy for future generations. It's crucial to maintain high standards of preservation to ensure their long-term condition," he said.

Carcosa Seri Negara, located within the Perdana Botanical Gardens, comprises two colonial-era mansions—Carcosa and Seri Negara—situated on a 12.14-hectare estate. Carcosa was built in 1897 by Sir Frank Swettenham, the first Resident General of the Federated Malay States, as his official residence. Seri Negara, constructed in 1913, served as a government guest house for high-profile dignitaries, earning the nickname "King's House."

During World War II, Carcosa Seri Negara became the headquarters for the Imperial Japanese Army in Malaya. Seri Negara's chambers were instrumental in the drafting of the Constitution of Malaya from 1955 to 1957. On Aug 5, 1957, the Merdeka Agreement, which secured Malaya's independence, was signed by the nine Malay rulers in Seri Negara.

As a gesture of goodwill, Tunku Abdul Rahman later gifted the deeds of Carcosa and its land to the British government. The building served as the residence of British High Commissioners until 1987, when it was returned to Malaysian ownership. 

Following its return, both Carcosa and Seri Negara were restored and reopened as boutique hotels in 1989, preserving much of the original colonial architecture. 

However, despite its grandeur, the hotel struggled to attract business and was shut down in 2015, leaving the buildings abandoned.

Source: https://www.nst.com.my/property/2024/10/1121992/rm600mil-upgrade-carcosa-seri-negara-sultan-abdul-samad-building

Kelantan's KB Sentral terminal to open concurrently with ECRL?

 By Sharen Kaur / NST Business Times - October 25, 2024 

The Kota Bharu Integrated Bus Station Terminal (KB Sentral) in Kelantan, valued at RM64 million, is set for completion alongside the East Coast Rail Line (ECRL) project in 2027. NSTP/SYAMSI SUHAIMI

KUALA LUMPUR: The Kota Bharu Integrated Bus Station Terminal (KB Sentral) in Kelantan, valued at RM64 million, is set for completion alongside the East Coast Rail Line (ECRL) project in 2027.

As of July, the ECRL project, spanning four states—Pahang, Kelantan, Terengganu, and Selangor—was 70.13 per cent complete, according to Transport Minister Anthony Loke Siew Fook.

Perak Transit Bhd recently won the contract to develop KB Sentral for an undisclosed amount.

The contract was awarded by the Kelantan state secretary's office following an October 2 state council meeting, as stated in the company's filing with Bursa Malaysia.

Perak Transit, which also operates Terminal Meru Raya and Kampar Putra Sentral in Perak, announced that China Communications Construction Company (CCCC) will serve as the project's main contractor. Additional development conditions will be provided by state authorities in due course.

Previously, in March, Kelantan's local government, housing, health, and environment committee chairman Hilmi Abdullah noted that KB Sentral's completion timeline had been adjusted to 2027, a two-year delay from the original target.

In July 2022, the government confirmed that KB Sentral, intended to replace the temporary bus terminal in Lembah Sireh, which has been operational for over 12 years, would be completed by the end of 2025.

Hilmi explained that the state aims to synchronise KB Sentral's completion with the ECRL project, which is expected to be fully operational by 2027.

Source: https://www.nst.com.my/business/corporate/2024/10/1125335/kelantans-kb-sentral-terminal-open-concurrently-ecrl

'Define clearly to prevent RM500,000 homes labelled as affordable'

 By Sharen Kaur / NST Property - October 30, 2024 

However, he said that affordable housing must genuinely meet the needs of households with incomes at or below the median. -NSTP/AIZUDDIN SAAD

KUALA LUMPUR: There must be a cleardefinition of "affordable housing" to prevent developers from labelling houses priced at RM500,000 as affordable, according to the National House Buyers Association (HBA).

Datuk Chang Kim Loong, HBA's honorary secretary general, expressed optimism about affordable housing and rising homeownership numbers in Malaysia.

However, he said that affordable housing must genuinely meet the needs of households with incomes at or below the median, as determined by a government-recognised housing affordability index.

"A home is more than a physical asset. It's a source of financial security in retirement. Every citizen aspires to have a roof over their head, and HBA urges the government to prioritise the people's interests over those of housing developers," said Chang.

HBA defines affordable housing according to three key criteria. 

First, affordability means properties should be priced between RM150,000 and RM300,000, distinct from "social housing units" such as low and medium-cost housing priced below RM100,000, like People's Housing Projects (PPR), he told Business Times.

Secondly, affordable housing should be suitable for family living, with a minimum built-up area of 800 sq ft (excluding balconies) and at least two bedrooms.

Lastly, affordable housing should be in accessible areas with robust public transport links like LRT, MRT, and KTM and close to public amenities, including government schools, hospitals and hypermarkets.

Chang said the government's proposals in the 2025 Budget for the housing sector are well-considered and, if implemented correctly, could significantly increase the supply of affordable homes, addressing the risk of a "homeless generation."

"The past four years have been challenging, with Covid-19, floods, water pollution, changes in government leadership, inflation, rising food and utility costs, a shortage of well-paying jobs, and rising unemployment. These factors have dampened the hopes of many who are striving to overcome these hurdles," he added.

HBA has been advocating for the establishment of a Housing Index, noting that "different states and localities have varying standards or definitions of affordable housing."

Such an index could help developers better align their pricing with buyers' affordability in less-developed areas, addressing the current mismatch between what buyers can afford and developers' selling prices.

This disparity has led to a significant overhang of completed properties, as past statistics have shown.

Establishing a national housing trust

Real Estate and Housing Developers' Association (Rehda) president Datuk Ho Hon Sang recently proposed establishing a national affordable housing trust to ensure that affordable homes are built in areas with genuine demand.

Ho said while developers are committed to affordable housing, they often face a mismatch between supply and demand. 

Data from the National Property Information Centre revealed that in the first quarter of 2024, 28.6 per cent of completed but unsold residential properties in Malaysia were priced below RM300,000.

"(The figure) highlights the mismatch of unsold affordable housing units. The focus should be on the right location, as some areas require more affordable housing units, while others require less due to the weak demand in those areas.

"There should be a more targeted solution rather than a one-shoe-fits-all approach to identifying the needs," Ho said.

Ho suggested that the trust's committee should include representatives from the Housing and Local Government Ministry, state authorities and Rehda, with developers contributing a portion of their gross development value.

The committee could then evaluate demand regionally, ensuring affordable housing is built strategically rather than following a non-market-driven quota that risks underserving or oversupplying areas.

Rehda also encouraged industry players to enhance affordability by offering subsidised loans for affordable housing through banks. 

"Other incentives, such as discounts on premium charges, development charges, and Improvement Service Funds, will go a long way in making housing more affordable for the people," he said.

He expressed Rehda's support for the Madani housing concept and government initiatives aimed at expanding housing access, especially for the B40 and M40 groups.

In August, Prime Minister Datuk Seri Anwar Ibrahim directed the Federal Territories Department and Kuala Lumpur City Hall to integrate Madani housing blocks into all new residential projects, underscoring this as a condition for development approval to increase homeownership among low-income groups.

Affordable housing should vary by state

Samuel Tan, founder and chief executive officer of Olive Tree Property Consultants, said the definition of "affordable housing" should vary by state given each state's unique characteristics.

"For instance, a home priced at RM500,000 may be considered affordable in the Klang Valley but would be deemed luxurious in states like Kelantan or Perlis. It's essential for each state to define affordable housing based on local demographics," he told Business Times.

Tan asserted that price alone shouldn't determine affordability.

"I fully agree price should not be the only parameter for defining affordable housing. As this is a social matter, the well-being of the occupiers must be prioritised.

"Hence quantifiable criteria like the number of bedrooms and baths, floor area, and finishes must be spelt out clearly so that the people have a habitable space to live."

He also highlighted the importance of location, stressing that affordable housing should be situated in areas well-connected by public transportation and near essential amenities to meet residents' basic needs.

Housing woes - PPR or PRR? 

Chang urged the government to reconsider the implementation of the Program Residensi Rakyat (PRR), a new public housing initiative by the Ministry of Housing and Local Government.

In the 2025 Budget, the government allocated nearly RM900 million to fund 48 PRR projects, aiming to complete 30 by the end of 2025 and accommodate roughly 17,500 residents, alongside 14 Rumah Mesra Rakyat projects.

"Now, it seems we have a new terminology in PRR, or People's Residential Programme and a huge sum has been allocated for this new programme.

"We don't have details of this PRR scheme, but we have voiced our utmost concern about the idea of PRR (Project Perumahan Rakyat), which was earlier this year announced by the Housing and Local Government Minister," he said.

Chang explained that the current social housing model, PPR, provides temporary accommodations for those working toward buying their own homes and should be rented out by designated agencies.

"The purpose is to offer interim housing to help people save toward homeownership. Those renting PPR flats should see them as temporary shelter for their families while they seek permanent homes."

While he acknowledged the noble intent behind the PRR, Chang suggested improvements to prevent financial strain on the government and ensure sustainable support for future low-income generations. 

He noted that the construction cost per PRR unit is RM300,000, yet they are sold at RM60,000, with RM10,000 to RM15,000 of this set aside for maintenance and sinking funds. A 10-year moratorium on selling these units will also apply.

"HBA appreciates KPKT's efforts to expand social housing through PRR, but selling units at a heavy discount could harm future homeowners and the government," Chang said.

He pointed out key concerns such as a RM240,000 loss per unit, the potential for profiteering, inadequate maintenance practices, and the risk of benefiting one generation at the expense of the next.

"HBA can understand why the Madani government is taking such an initiative, as property prices have risen too rapidly in recent years.

"As noted in Bank Negara Malaysia's 2016 annual report, the increase in house prices in Malaysia since 2012 has outpaced the rise in income levels. Consequently, prevailing median house prices are beyond the reach of most Malaysians."

Tan, meanwhile, praised Johor's Rumah Iskandar initiative.

"This is a good model where the qualified people can rent from the state at a subsidised rental and with an option to buy later," he said.

Gemas-JB Rail line almost completed; to operate by 1H 2025 [BTTV]

 By Sharen Kaur/ NST Business Times - November 5, 2024 

KUALA LUMPUR: The Gemas-Johor Bahru Electrified Double-Track Rail Project (Gemas-JB EDTP), designed to reduce travel time between Kuala Lumpur and Johor Bahru by half when it connects with the existing Padang Besar-Gemas line, is expected to be fully completed by April next year.

It is understood that 98.1 per cent of the estimated RM9.5 billion project is completed.

"The Gemas-JB EDTP stations in Genuang, Segamat, Labis, Bekok and Paloh are now open for public use. Power supply is fully operational, and most of the line has been electrified. Only minor adjustments remain, with full operation expected around the middle of next year," according to sources close to the project.

The Straits Times reported additional delays on the Gemas-JB EDTP, citing issues in Johor's Segamat district. Segamat is set to be the first of 11 new stops spanning major districts in Johor, including Kluang and Kulai, before ending in Johor Bahru.

Initial plans aimed to launch service on the 26km segment from Gemas to Segamat by July, later pushed to October, but electrification setbacks have postponed these timelines.

A market insider told Business Times that these delays are partly due to late arrivals of electric train sets (ETS3) for the line.

Malaysia received its first ETS3 set, with a seating capacity of 312, in June, delivered by contractor CRRC Zhuzhou Locomotive Co., Ltd to the Ministry of Transport in a ceremony in Zhuzhou, China.

Transport Minister Anthony Loke was reported to have said that all ETS3 trains are expected to be delivered by August 12 next year.

These trains will be utilised on the Gemas-JB EDTP and across the entire West Coast Rail network, from Padang Besar to Johor Bahru, he said.

The CRCC-CREC-CCCC Consortium, a Chinese contractor specialising in large-scale rail projects, is leading construction. SIPP-YTL, appointed by the consortium, serves as the Malaysian subcontractor.

Officials from SIPP-YTL were unavailable for comment.

The 192km Gemas-JB EDTP is part of the nationwide electrified double-tracking rail development initiative, aimed at modernising the west coast rail line from diesel to electric trains.

The Gemas-JB EDTP, which began in 2017, has faced multiple delays from an original October 2021 target due to COVID-19 disruptions and land acquisition issues involving reluctant squatters.

The project is now anticipated for full completion by April 2025.

Once operational, the line will reduce the travel time from Johor Bahru to Kuala Lumpur to 4½ hours, down from seven hours by diesel train.

According to Keretapi Tanah Melayu Berhad (KTMB), the completed project will increase rail freight capacity between Port Klang and the Port of Tanjung Pelepas and is expected to serve around 3,000 daily passengers on the Johor Bahru-Kuala Lumpur route.

The Gemas-Johor Bahru Electrified Double-Track Rail Project (Gemas-JB EDTP), designed to reduce travel time between Kuala Lumpur and Johor Bahru by half when it connects with the existing Padang Besar-Gemas line, is expected to be fully completed by April next year. NSTP/AIZUDDIN SAAD

Source: https://www.nst.com.my/business/economy/2024/11/1129686/gemas-jb-rail-line-almost-completed-operate-1h-2025-bttv

Tan: "Don't limit housing purchases"

 By Sharen Kaur / NST Property- November 11, 2024

Rehda President , Datuk Ir Ho Hon Sang. STR/ AZIAH AZMEE

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KUALA LUMPUR: Investors should have the freedom to purchase as many properties as they desire without limitations, said Samuel Tan, founder and CEO of Olive Tree Property Consultants. 

Tan suggested that restrictions, if any, should only apply to affordable housing.

"Affordable housing is a national social agenda, and placing limits here would create more opportunities for others to buy. This is a free market, and investors should have the liberty to buy as many homes as they can afford," he told Business Times.

"This approach not only supports the housing and related industries but also facilitates wealth creation, as property is a strong hedge against inflation. Don't limit housing purchases."

Tan's comments were in response to a recent episode of the Keluar Sekejap podcast, where former UMNO leaders Khairy Jamaluddin and Shahril Hamdan discussed the potential benefits of restricting property purchases to address the shortage of affordable housing. 

Khairy and Shahril suggested that imposing limits on property investments could reduce the stock of unsold high-end homes and stabilise prices.

In August, international real estate firm Juwai IQI reported that median home prices in Malaysia had risen by RM136,716, representing a 42 per cent increase from RM330,427 in 2014 to RM467,143 in 2023. 

Meanwhile, data from the National Property Information Centre showed a decline in unsold residential properties, with 22,642 completed units worth RM14.24 billion still on the market in the first half of this year, most priced below RM300,000.

The Real Estate and Housing Developers' Association (REHDA) Malaysia said recently that Malaysia should not impose restrictions on property purchases, as this could harm the housing industry and the 180 related sectors, ultimately impacting the national economy.

"Property purchases are made for other reasons too, besides shelter, hedge against inflation, and wealth preservation. There are those who purchase as gifts to family members, such as parents buying a home for their children," said Datuk Ir Ho Hon Sang, the president of REHDA.

Datuk Chang Kim Loong, honorary secretary-general of the National House Buyers Association (HBA), said he observed that many people choose to invest in property due to limited awareness of alternative options such as jewellery, gold, or art. 

He also agreed that restrictions should apply to affordable housing purchases but maintained that the government should not prevent individuals from investing their "hard and legitimately earned" money in other property categories.

Chang pointed out that most affordable housing units are already earmarked for first-time homebuyers under government schemes and are typically priced at RM300,000 or below.

He emphasised the need for robust policies to ensure a sufficient supply of affordable housing.

Malaysia attracts more MNCs [BTTV]

 By Sharen Kaur, Syakirah Nor/Business Times - November 11, 2024 

KUALA LUMPUR: The challenging global economy and rising operational costs in traditional markets are pushing many multinational companies (MNCs) to explore Southeast Asia, particularly Malaysia, as a strategic alternative.

Malaysia offers an attractive balance of cost-effectiveness and quality infrastructure, which appeals to companies aiming to manage risk and boost efficiency, according to Tan Ka Leong, Group Managing Director of CBRE | WTW.

Tan noted a significant increase in enquiries from MNCs, especially for shared services and business process outsourcing (BPO) operations in Malaysia.

"Compared to other Southeast Asian countries, Malaysia stands out with its highly skilled workforce, proficient in English, which is critical for MNCs aiming for smooth and effective operations," he told Business Times.

Regarding rental rates for prime office spaces, particularly in Kuala Lumpur, Tan said that rates are likely to vary by location.

"In certain areas, like prime office spaces in fringe Kuala Lumpur, we're seeing a bit of an uptick in rental rates. Offices with high occupancy are also likely to see some rent increases due to their strong demand in the market," he said.

Juwai IQI co-founder and group chief executive officer Kashif Ansari said Kuala Lumpur has witnessed a notable influx of MNCs this year.

He said that companies from around the globe are setting up operations in Malaysia to take advantage of the country's strategic location and favourable business environment.

According to him, Malaysia's appeal lies in its skilled workforce, business-friendly infrastructure, and proximity to major markets in Asia, making it an attractive hub for both manufacturing and regional headquarters.

"We work with MNCs who want to set up operations in Malaysia, whether for manufacturing or headquarters, especially from China," Kashif said.

He also highlighted significant investments by U.S. companies, including Alton Industry Ltd Group, which is committing RM2 billion to a manufacturing facility, and GlobalFoundries, which is opening an office that will create 300 high-value roles.

Kashif noted that global supply chain disruptions and rising operating costs have prompted MNCs to look beyond single-country dependencies.

"It's China plus one," Ansari explained, referring to the strategy of building supply chains separate from mainland China to protect against potential disruptions. 

"The pandemic taught companies not to rely on a single supply chain," he noted, adding that this strategy has made Malaysia an appealing alternative for businesses seeking resilience and stability in their operations.

Despite increased demand, Ansari does not foresee a dramatic spike in rental costs across Malaysia, though he acknowledged that rents might rise in specific segments. 

"Occupancy isn't tight enough yet to worry about rents skyrocketing," he said. 

However, he anticipates that competition could increase for high-quality office spaces and land suited for manufacturing, particularly in sectors like semiconductors.

Source: https://www.nst.com.my/business/economy/2024/11/1132613/malaysia-attracts-more-mncs-bttv

LBS signs MoU for 10GW green hydrogen project in Sabah

 By Sharen Kaur - November 14, 2024 

Datuk Phoong Jin Zhe, Sabah's Minister of Industrial Development and Entrepreneurship (centre), attended the signing ceremony of the Memorandum of Understanding, joined by Tan Sri Ir. (Dr.) Lim Hock San, group executive chairman of LBS Bina Group Bhd (second from right); Datuk Wira Joey Lim Hock Guan, chief executive officer (CEO) of LBS (right); Dr. Firdausi Suffian, CEO of Sabah Invest Bhd (third from right); Tan Sri Anifah Aman, chairman of Sabah Invest; Datuk Hamild Awang, chairman of Sabah Forestry Development Authority (SAFODA), and Bahrul Razha Chupat, general manager of SAFODA.

KUALA LUMPUR: LBS Bina Group Bhd has entered into a Memorandum of Understanding (MoU) with Invest Sabah Bhd, the Sabah Forestry Development Authority (SAFODA), and Midwest Green Sdn Bhd to explore a 10 gigawatts (GW) green hydrogen production project in Kota Marudu, Sabah. 

The initiative aims to generate over 250,000 tonnes of green hydrogen annually, utilising a facility powered by solar and wind energy on a site spanning 15,000 to 30,000 acres. 

Tan Sri Ir. Dr. Lim Hock San, LBS group executive chairman, highlighted that this MoU demonstrates the group's dedication to sustainable development and supports Malaysia's green energy agenda.

"With the immense renewable energy potential of Kota Marudu, we see this as a landmark project that will drive economic growth for Sabah and create lasting job opportunities for local communities. 

"We are honoured to work with our esteemed partners like Invest Sabah, SAFODA, and Midwest Green to drive sustainable growth and innovation," he said in a statement.

Lim said that the substantial economic benefits anticipated from this project are significant, including supporting job creation and stimulating other local industries. 

These positive impacts are likely to multiply over the coming years, he said.

"This MoU is thus viewed as the opening of opportunities for collaborations with various local and international partners in the near future, marking a groundbreaking step towards developing Sabah as a major player within the renewable energy sector."

Lim said that the MOU exemplifies LBS's expertise in developmental projects given its sterling track record over the years. 

According to him, the Kota Marudu land is uniquely positioned to support green energy generation, boasting some of the highest solar irradiance levels in Malaysia and consistent high wind speeds, ideal for renewable energy production. 

Additionally, the site's proximity to nearby seaports will facilitate efficient export logistics, enhancing its potential as a regional green energy hub.

A key aspect of the collaboration will be LBS's strategic focus in exploring a large plot of land in Kota Marudu to align with both national and state sustainability goals.

LBS, in partnership with Midwest Green, will collaborate with Invest Sabah and SAFODA to conduct land surveys and site inspections, facilitating the identification of optimal sites. 

The parties will also work together to establish a consortium structure, ensuring alignment with local and international stakeholders interested in this forward-looking venture.

This development is also expected to pave the way for future green industrial parks, which will help transform Sabah into a leader in green energy and industrial innovation. 

Sunway: From humble beginnings to a RM35bil conglomerate

 By Sharen Kaur - October 14, 2024

Sunway Group founder Tan Sri Dr. Jeffrey Cheah (Courtesy Photo)

KUALA LUMPUR: Sunway Group has grown from humble beginnings into one of Malaysia's top conglomerates, with a combined market capitalisation of more than RM35 billion.

The journey began in 1974 when founder Tan Sri Dr. Jeffrey Cheah started a small tin mining company in Malaysia.

Over time, the group expanded and diversified into various sectors, including property development, construction, education, healthcare, retail, and hospitality.

A pivotal moment in its history was the transformation of barren mining land in Bandar Sunway, Selangor, into a vibrant and thriving township.

Reflecting on this milestone, Cheah shared, "I was a little-known individual from Pusing, in Perak, a poverty-ridden town where many of my childhood friends could not afford to further their education due to the financial constraints faced by their families, but I am deeply grateful to my country for the opportunities it has blessed me with."

He was speaking at Sunway's Golden Jubilee Gala Dinner, celebrating the group's 50th anniversary.

Cheah expressed heartfelt gratitude to his loyal team and partners, stating, "I am lucky enough to celebrate this momentous occasion of Sunway's 50th anniversary with my long-serving and loyal team, as well as all of our partners and friends who made this milestone possible."

The gala dinner, attended by over 1,200 guests, was a tribute to Sunway's valued C-suite partners and stakeholders who have supported the group's growth and success. 

In attendance were Minister of Human Resources Steven Sim, Subang Jaya state assemblywoman Michelle Ng, Japan's Ambassador to Malaysia Takahashi Katsuhiko, acting British High Commissioner David Wallace, EU Minister Counsellor Timo Goosman, and prominent business leaders Tan Sri Syed Azman of Weststar Aviation Group and Tan Sri Azman Hashim of AmBank Group.

Reflecting on his entrepreneurial journey, Cheah recalled the early days of Sungei Way Corporation Sdn Bhd, marked by hard work, sleepless nights, and scepticism from those who doubted his vision of building Malaysia's first green, sustainable, and integrated township—Sunway City Kuala Lumpur.

Cheah also highlighted that Sunway's success has enabled him to fulfil his lifelong dream of establishing the Jeffrey Cheah Foundation, which is dedicated to nation-building. 

Operating under a not-for-profit structure, the foundation governs all entities under the Sunway Education Group and has disbursed over RM745 million in scholarships and grants as of 2024.

"I have been privileged and fortunate to be able to build an ecosystem comprising institutions of teaching and learning, as well as two medical schools working together in a holistic manner. The foundation, with several billion ringgit worth in assets, will continue to carry out this philanthropic mission in perpetuity," Cheah said.

Cheah added that such an ecosystem will not only help stem the brain drain but strengthen our human capital that is required if Malaysia is to achieve its goal of becoming a developed nation.

More REIT listings anticipated in Malaysia

 By Sharen Kaur/NST Property - October 14, 2024

THE local stock exchange could see an increase in Real Estate Investment Trust (REIT) listings, offering a promising opportunity for investors seeking stable and lucrative investments. NSTP/EIZAIRI SHAMSUDIN

KUALA LUMPUR: THE local stock exchange could see an increase in Real Estate Investment Trust (REIT) listings, offering a promising opportunity for investors seeking stable and lucrative investments.

REITs provide diverse portfolios spanning sectors such as retail, office, industrial, and hospitality, effectively reducing risk and insulating against market volatility in any one sector.

Analysts predict that more property developers in Malaysia may turn to REIT listings.

RHB Research noted that this trend is likely to continue, especially as declining interest rates generally benefit REITs, particularly for companies with a substantial pool of investment properties.

Among the developers eyeing REIT listings are IOI Properties Group Bhd (IOIPG) and SP Setia Bhd.

According to RHB Research, IOIPG has a strong portfolio of retail, hospitality, and office assets valued at around RM20 billion, including properties in Singapore, while SP Setia holds retail and office assets worth about RM1 billion.

The firm said that high-quality asset monetisation through REITs is usually seen positively, with shareholders expected to benefit.

Sime Darby Property Bhd is also seen as a strong candidate for a REIT listing.

RHB Research highlighted the company's growing investment property portfolio, which many investors may have overlooked.

Sime Darby Property has built a significant cache of retail assets, including KL East Mall, which now yields 6.5 per cent to 7.0 per cent after three to four years of operation, Senada Mall, set to open in the second half of 2025, and Elmina Lakeside Mall.

In the logistics sector, Sime Darby Property's Metrohub in Bandar Bukit Raja is gaining momentum.

Metrohub 2 is complete, with tenants Comone Express and JD Logistics occupying 25 per cent of the 800,000 square feet space, with room for expansion.

Meanwhile, Metrohub 1, expected to complete by the fourth quarter of 2024, has already secured 50 per cent occupancy, covering 1.1 million square feet of net lettable area (NLA).

By the first half of 2024, Sime Darby Property had accumulated 7.7 million square feet of NLA in investment properties, two million of which are industrial properties.

RHB Research valued the company's total assets under management at RM2.6 billion (excluding concessions) as of fiscal year 2023.

The completion of the Google Data Centre (DC) in 2026 is expected to further enhance Sime Darby Property's asset portfolio by an additional RM1.5 to RM2 billion.

The company's property investment, leisure, and hospitality segments currently generate an annualised revenue of approximately RM220 million, RHB Research said.

Source: https://www.nst.com.my/property/2024/10/1119631/more-reit-listings-anticipated-malaysia