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.
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.
By Tan Sri Lee Kim Yew, founder of Country Heights Holdings Berhad
Tan Sri Lee Kim Yew
To the Leaders and Citizens of Malaysia, as we look forward to the future, one truth stands clear: our youth are our greatest asset.
They are the driving force that will carry Malaysia through the next decades, shaping our nation’s progress, innovation, and unity. Yet, today, many of our young citizens—whether from the bustling cities of Peninsular Malaysia or the vast lands of Sarawak and Sabah—are finding themselves compelled to seek better opportunities elsewhere, even beyond our borders.
We see our talented youth drawn away, "brain-drained,” to countries like Singapore and further afield, not because they do not love Malaysia but because they believe the opportunities they need to fulfil their potential are elsewhere. From the rural heartlands of Sarawak to the urban centres of Kuala Lumpur, this is a shared challenge. But more than that, it is a call to action.
Our West Malaysian youth are full of creativity, drive, and ambition. Our East Malaysian youth, too, possess incredible resilience, skills, and a deep connection to their land. Yet both groups of young Malaysians face barriers—either a lack of opportunity, restrictions in movement, or insufficient investment in local development—that make it harder for them to build their futures here at home. It is time we come together to change this.
*Uniting East and West: A Future Without Barriers*
A better future for our youth means a Malaysia where our young people, no matter where they are born, can move freely, learn freely, and work freely within their own country. A future where a young person from Sarawak or Sabah can explore job and education opportunities in Peninsular Malaysia without barriers, and vice versa. We must look at changing the immigration laws between East and West Malaysia to allow greater freedom of movement, especially for our younger generations.
Let us remember that when Malaysia was formed in 1963, it was built on the idea of a unified federation—a nation made stronger by its diversity and collective strength. While Sarawak and Sabah have been rightly granted special autonomy to protect their unique identities and interests, we must now ask ourselves: Can we maintain these protections while also building a stronger, more unified future for our youth?
By easing the restrictions on movement for the young people born in and after 2000, we can strike the right balance between honouring Sarawak’s autonomy and fostering greater national unity. This change would not only uphold the spirit of our Federal Constitution, which guarantees the freedom of movement and equality for all citizens, but it would also encourage the exchange of ideas, skills, and cultures that are essential for the growth of any nation.
*A Future of Opportunity: Building Bridges, Not Borders*
This is not only about movement; it is about opportunity. We must create a Malaysia where a young person does not feel they have to look to Singapore, Australia, or any other third country to find a promising career. We must create the conditions where Sarawakian youth, with their rich cultural heritage and untapped potential, can come to Peninsular Malaysia, gain valuable skills and experience, and then return home to help develop Sarawak into a thriving hub of agriculture, energy, and technology.
Similarly, Peninsular youth should be encouraged to explore the vast, opportunity-filled landscapes of East Malaysia. With proper investment in infrastructure, education, and job creation, the young people of Kuala Lumpur, Johor, or Penang could bring new industries to Sarawak’s shores—whether in the fields of eco-tourism, sustainable agriculture, or renewable energy.
*Addressing Brain Drain: Keeping Talent at Home*
By opening up our states to each other and creating pathways for development, we will stem the tide of brain drain. Let us keep our talented graduates, engineers, doctors, and creatives at home. This means investing in our local economies, ensuring that wages and job conditions in Sarawak, Sabah, and throughout Peninsular Malaysia are competitive. It means building better infrastructure—roads, hospitals, schools, and broadband networks—that make life in any part of Malaysia attractive, whether it’s in the heart of Kuching, the mountains of Borneo, or the cities of the Peninsula.
It means creating public-private partnerships that encourage entrepreneurship and innovation at home. Let our youth know that their dreams and ambitions do not have to take them overseas to be realized. Malaysia must become a land where they can thrive, grow, and succeed.
*A Call for Unity and Action*
As we move forward, we must ask ourselves: What kind of nation do we want to build? One where our young people are divided by geographical boundaries and restrictions, or one where they are free to connect, contribute, and create across our entire Federation? It is time for a national conversation about how we can empower our youth to stay, to return, and to build.
It is time for our leaders in Parliament to amend the laws that prevent young Sarawakians and Sabahans from moving freely, and to support policies that build bridges between East and West Malaysia. This is not just good for Sarawak or Peninsular Malaysia—it is good for the entire nation.
Malaysia was built on the promise of unity in diversity. Let us take the next step in fulfilling that promise by giving our youth the freedom, opportunities, and encouragement they need to build a better future—both for themselves and for this country we all call home.
*In Unity, We Thrive*
Together, we can ensure that the future of our youth is not defined by borders but by the opportunities they create. We can ensure that Malaysia remains a place where dreams are realized not just in one part of the country but across the whole nation. Our young people deserve no less.
Let us act now so that we build a better Malaysia, united and stronger, for all our youth.
*Federal Constitution: Articles 8 and 9 are part of the Fundamental Liberties*
Article 8: Ensures all citizens are equal before the law and entitled to equal protection, allowing reasonable classifications when justified.
Article 9: Prohibits banishment of citizens and guarantees freedom of movement within Malaysia, subject to legal restrictions for public security, order, or health.
Look out for Malaysia's bullet train project announcement within the next two to three months. Industry players are more positive about the implementation of the long awaited bullet train project that will cost below RM90 billion.
By Sharen Kaur/ Business Times - September 9, 2024
Eversendai executive chairman and group managing director of Tan Sri AK Nathan
KUALA LUMPUR: Eversendai Corporation Berhad's group of companies has been awarded RM1.1 billion worth of new contracts in Singapore, India, and the Middle East.
Tan Sri AK Nathan, executive chairman and group managing director of Eversendai, said that the group's current outstanding order book has reached a historic RM6.7 billion.
He said that this achievement will significantly boost Eversendai's turnover and profits.
"The Eversendai Group of companies is on the path to reach greater heights in 2025 and beyond with the record high order book in hand," Nathan said.
Looking ahead, he noted that more high-profile, lucrative projects are expected to be secured, particularly in the Middle East and other regions where the group operates.
"We foresee progressive optimal utilisation of all our fabrication facilities with the current outstanding order book as the project momentum increases," he said.
In Chennai, India, Eversendai secured the composite structural steel and civil works project for the DLF Downtown Taramani Block 4 & 5, the single largest contract win in the history of Eversendai India.
The 27-floor and 32-floor building development, with a total built-up area of 4.4 million square feet, will redefine Chennai's IT corridor as its vibrant new epicentre, with state-of-the-art office spaces offering unparalleled amenities.
In a statement, Eversendai said that the scope of this project includes engineering, connection design, shop drawings, steel material supply, fabrication, delivery, erection of structural steel works, and civil works.
Eversendai in Mumbai secured the C65 commercial tower project, a 19-floor composite structure building, and the 30 Little Gibbs, a high-rise composite structure residential building in Malabar Hills, Mumbai, while Eversendai in Singapore secured the Founder's Memorial project.
"The scope of all these projects includes connection design, engineering and preparation of shop drawings, steel material supply, fabrication, delivery, and erection of structural steel works."
Meanwhile, Eversendai in Saudi Arabia secured another structural steel subcontract work package for the Speed Park Track, Primary Pit, and Motorsports Experience Centre. The Speed Park Track is a new Qiddiya racetrack located near the heart of Riyadh that is set to host the biggest international motorsport championships in the world.
By Sharen Kaur - Published in Business Times, September 19, 2024
KUALA LUMPUR: Eco World Development Group Berhad (EcoWorld Malaysia) exceeded its full-year sales target of RM3.5 billion within the first 10 months of fiscal year 2024 (FY2024).
Iskandar Malaysia in Johor contributed the largest share, accounting for 63 per cent of the group's year-to-date (YTD) sales, followed by 27 per cent from the Klang Valley and 10 per cent from Penang.
The industrial segment performed exceptionally well, recording RM1.05 billion in sales by Aug 31, 2024, surpassing the FY2023 record of RM1.04 billion.
In response to this growth, EcoWorld Malaysia launched its fifth revenue pillar, QUANTUM, on Aug 1, 2024, focusing on digital and high-tech industrialists.
The first QUANTUM project, QUANTUM Edge in Kulai, Iskandar Malaysia, achieved RM626 million in sales by the end of August.
Significant land sales at QUANTUM Edge included a 123.141-acre transaction with Microsoft Payments (Malaysia) Sdn Bhd for RM402.3 million and a 57.081-acre sale to Princeton Digital Group, Asia's leading data centre provider, for RM223.8 million.
"Both deals are in line with the group's strategy of identifying market leading players to catalyse our industrial parks and accelerate the development timeline of our projects, which creates positive spillover effects for EcoWorld Malaysia and our surrounding communities," said EcoWorld Malaysia president and chief executive officer Datuk Chang Khim Wah.
"We are confident that the group, through our sizeable, diversified yet complementary Eco Business Parks and QUANTUM pillars, will be able to meet the heightened industrial demand as we are able to cater to both traditional industrialists as well as technopreneurs and new economy players."
On the residential side, the Eco Townships and Eco Rise pillars recorded RM2 billion in combined sales by August 31, 2024.
Upgrader homes priced above RM650,000 accounted for 83 per cent of Eco Township sales, reflecting strong demand for high-end landed properties.
Eco Rise also set a record with RM909 million in YTD sales, significantly surpassing the FY2023 total of RM509 million.
The group's duduk apartments contributed RM775 million, with over 1,800 units sold.
Additionally, Eco Hubs, the group's commercial division, reported RM454 million in sales, driven by new strata shop and office launches in the Klang Valley and Penang.
EcoWorld Malaysia's financial position continued to strengthen, generating RM657.6 million in cash from operations during the first nine months of FY2024, surpassing the full-year figure of RM572.2 million in FY2023.
As of July 31, 2024, the group's cash reserves hit a record RM1.55 billion, enabling a reduction in its net gearing ratio to 0.21 times and positioning the company for further landbank acquisitions, Chang noted.
The housing market could return to the positive levels seen more than 10 years ago, according to Radium Development Bhd group managing director Datuk Gary Gan.
KUALA LUMPUR: The housing market could return to the positive levels seen more than 10 years ago, according to Radium Development Bhd group managing director Datuk Gary Gan.
"While there is still a notable gap between the property boom of 2010 and current conditions, we are seeing signs of improvement in the market. The worst is over for us," he told Business Times.
Gan is optimistic that Malaysia's housing market could return to those levels if the economy stays robust and construction projects are expedited.
"We're witnessing increased foreign investment, largely driven by major infrastructure projects and the development of economic zones in Malaysia. With more investors coming in, we can expect pent-up demand for landed and high-rise residential properties in prime locations," he added.
The housing market had weakened before the pandemic due to concerns similar to those of the 2008 financial crisis. At that time, housing values dropped, many projects were left incomplete, and consumer confidence dipped.
Gan highlighted several factors that could contribute to a recovery to 2010 levels, such as lower interest rates and new initiatives from the government.
"Lower mortgage rates improve affordability, which attracts more buyers and can heat up the market. If the economy continues to strengthen, we could see a housing boom within two to three years," he said.
"I hope the government introduces more initiatives in Budget 2025 to support first-time homebuyers, as many are focusing on affordable properties," Gan said.
He said although Bank Negara Malaysia has maintained the Overnight Policy Rate (OPR) at 3.00 per cent, it still has an impact on certain buyers.
"Compared to two or three years ago, the OPR is still higher. A reduction of 0.25 basis points could help some buyers. If you're purchasing for personal use, anytime can be a good time to buy," he said.
Regarding Radium's expansion, Gan said the company aims to be a city-centric developer, focusing on fast-turnaround projects in Kuala Lumpur, particularly in well-established areas with existing amenities.
"We conduct thorough studies before acquiring land and launching projects," he said, noting that Radium plans to launch its third development (post listing) in the fourth quarter of this year.
The project, called Radium Arena Residences, will consist of two residential blocks with a gross development value of RM550 million.
Situated on Old Klang Road, Kuala Lumpur, near the Datuk Lee Chong Wei Sports Arena, it will offer 988 units with built-up sizes ranging from 658 to 920 sq ft.
The units are priced between RM400,000 and RM600,000, or an average of RM600 per square foot.
"We are highly confident that we will sell 50 per cent of the units by the end of this year and reach 80 per cent within a year of the launch," he said.
Radium was listed on the Main Market of Bursa Malaysia in May 2023.
The company raised RM434 million in proceeds from its share sale, of which RM171 million has been earmarked for the acquisition of landbank and development expenditure, and RM109.3 million for hotel construction.
The incentives announced for the Forest City Special Financial Zone (Forest City SFZ) in Johor, including tax breaks and benefits for family offices, highlight a strategic vision to attract global capital and bolster Johor’s position as a financial hub, according to Knight Frank Malaysia. Credit pic: Forest City SFZ
KUALA LUMPUR: The incentives announced for Johor’s Forest City Special Financial Zone (Forest City SFZ), including tax breaks and benefits for family offices, reflect a strategic vision to attract global capital and strengthen Johor's position as a financial hub, according to Knight Frank Malaysia.
"We see this as a pivotal moment for Johor's growth. We fully support these efforts," the firm said.
Located in Iskandar Puteri, Forest City spans four man-made islands covering 30 square kilometers. Developed by Country Garden Pacificview Sdn Bhd, a joint venture between Country Garden Group and Malaysia-government-backed Esplanade Danga 88 Sdn Bhd, the project represents a US$100 billion investment.
On August 23, 2024, Prime Minister Datuk Seri Anwar Ibrahim announced the creation of an SFZ within Forest City. Last week, Malaysia’s Second Finance Minister Datuk Seri Amir Hamzah introduced a series of targeted incentives for key sectors within the zone.
As a duty-free island, Pulau Satu in Forest City will focus on financial services, while the mainland will prioritize logistics, global service hubs, and relocation services. The planned Kuala Lumpur-Singapore high-speed rail, currently under discussion, is also expected to pass through Forest City.
Key incentives include corporate tax rates of 0% to 5%, a 15% individual income tax rate, 0% tax for family offices, 5% tax for global financial services, and expanded foreign bank operations with foreign exchange flexibility within the SFZ.
These incentives align with the broader objectives of the Johor Singapore Special Economic Zone (JS-SEZ) and Johor’s goal to achieve developed state status by 2030. UOB noted that these measures are designed to ignite initial interest and position Forest City SFZ as a global financial hub.
The bank highlighted that the JS-SEZ will be closely integrated with Forest City SFZ, driving investment, job creation, and development in Johor.
"Key incentives that span 20 years (10 + 10 years) are conditional on operations expanding by at least 30 per cent, covering operating expenses, number of key personnel, number of knowledge workers, and ESG elements. As such, the outcome-driven incentives are designed to attract new investments and reward expansionary activities that invest and grow the skilled workforce as well as enhance sustainability efforts," the firm said in a note today.
UOB also noted that the incentives are more attractive than typical offerings, which usually last five to 10 years. For qualifying sectors such as logistics, the investment tax allowance is 100% to offset statutory income, compared to the usual 60%.
Looking ahead, UOB pointed to Budget 2025, expected next month (October 18), and the final JS-SEZ agreement, set to include broader incentives for non-financial sectors by November.
Meanwhile, RHB Research highlighted the potential positive spillover from the Forest City SFZ incentive packages on Iskandar Malaysia, predicting increased demand for property, commercial, and retail activities.
If the regulatory and infrastructure ecosystem is well-established, RHB said, the push for family offices makes sense given Forest City’s proximity to Singapore, a regional hub for family offices.
"Incentives for other financial institutions and logistics sectors should also attract investments into Forest City, creating more job opportunities," it said.
(L-R): RHB Banking Group head of alternate sales channel, Vincent Tan Yee Wee; managing director of group community banking, Jeffrey Ng Eow Oo; LBS Bina Group Bhd chief executive officer, Datuk Wira Joey Lim Hock Guan; LBS Bina executive director, Datuk Cynthia Lim Mooi Pang; and RHB Banking Group homeowner squad lead, Christine Wong Sze Pin, at the event celebrating the partnership.
LBS Bina Group Berhad has formed a strategic collaboration with RHB Banking Group to introduce green financing for SkyRia @ D'Island Residence, Puchong, Selangor.
Under the RHB Green Financing Schemes, prospective homeowners can benefit from a loan margin of up to 95% and an additional 5% coverage for mortgage-reducing term assurance (MRTA) or mortgage-reducing takaful term (MRTT).
These exclusive packages aim to make sustainable living more affordable and accessible for Malaysians, said Tan Sri Ir (Dr) Lim Hock San, group executive chairman of LBS Bina.
This collaboration follows the awarding of the Provisional Silver in GreenRE Certification to SkyRia, underscoring LBS's commitment to building a greener future. GreenRE certifications are given to buildings or projects that meet stringent sustainability standards.
SkyRia is part of D'Island Puchong, one of LBS Bina Group's flagship townships, offering serene lakeside living. Comprising two residential blocks with a total of 999 units, SkyRia is expected to generate a gross development value (GDV) of RM457 million. Unit prices range from RM250,000 to RM507,000.
Since its launch, the project has seen high demand, reflecting the appeal of LBS’s sustainable housing options, Lim noted.
Designed to merge luxury with sustainability, SkyRia offers 29 facilities that enhance lifestyle while minimizing environmental impact, making it an attractive choice for eco-conscious buyers.
"Our partnership with RHB Bank is a key milestone in our mission to provide affordable and sustainable housing. By offering green financing options, we are making it easier for homeowners to own eco-friendly homes and reinforcing our commitment to environmental stewardship," Lim said.
SkyRia @ D'Island reflects LBS Bina's vision of high-quality, sustainable living. Lim also emphasized the company’s dedication to achieving net-zero carbon emissions by 2050, a goal that shapes all its projects, including SkyRia.
"Our approach involves implementing cutting-edge green technologies, optimising energy efficiency, and promoting environmentally responsible practices across our developments. This roadmap to net zero is not just an ambition but a reflection of our responsibility to future generations," he said.
Jeffrey Ng Eow Oo, managing director of group community banking at RHB Banking Group, said the partnership with LBS Bina aligns with RHB's vision to promote sustainable living.
"At RHB, we are committed to leading the financial sector in driving sustainability through innovative green financing solutions. This collaboration is a significant step towards realising our five-year sustainability strategy and roadmap, where we aim to deploy RM50 billion in sustainable financing," he said.
Ng highlighted that RHB focuses on supporting initiatives that foster a low-carbon economy and environmentally responsible development.
"By offering comprehensive green financing packages, we are not only facilitating access to eco-friendly homes but also reinforcing our role as a thought leader in sustainable finance.
"We believe that by working together with like-minded partners like LBS, we can accelerate the transition to a more sustainable future and create lasting positive impacts for communities and the environment," he said.
YS Chan, a tourism transport business consultant, said KTMB needs more trains to effectively cover the existing railway lines in Peninsular Malaysia and support the planned electric train service from Padang Besar to Johor Bahru by 2025.
KUALA LUMPUR: Loss-making Keretapi Tanah Melayu Bhd (KTMB) requires additional train sets to operate at full capacity and boost revenue, according to industry observers.
YS Chan, a tourism transport business consultant, said KTMB needs more trains to effectively cover the existing railway lines in Peninsular Malaysia and support the planned electric train service from Padang Besar to Johor Bahru by 2025.
"This is especially important as our roads and expressways become increasingly congested during rush hours and festive seasons, often doubling or tripling normal travel times," he told Business Times.
The Auditor General's Report 2018 Series 2 disclosed that KTMB's accumulated losses as of Dec 31, 2018 had reached RM2.83 billion.
The audit attributed the losses to several factors, including KTMB's lack of autonomy in decision-making, particularly concerning its operations and asset usage, as well as its heavy reliance on train ticket sales.
The state-owned railway company has been struggling financially, with over RM2 billion in liabilities, forcing it to depend heavily on government funding to sustain its operations.
According to a report by FMT last year, KTMB operated around 100 locomotives between 2000 and 2010, with 80 per cent in daily use.
However, more than 60 per cent of these locomotives are now out of service, it said, quoting the Railwaymen Union of Malaya (RUM) president Muhammad Faizal Shahibul Kiraya.
Malaysia has developed a plan to increase passenger train services nationwide from 2024 to 2030, to achieve 80 per cent railway track utilisation.
Transport Minister Anthony Loke Siew Fook said recently that although Malaysia had invested billions of ringgit in rail services, current utilisation stood at only 30 per cent.
Last week, Loke announced the acquisition of 62 new train sets for KTMB through a RM10.7 billion leasing agreement with China.
The amount will be paid in installments over a 30-year lease period, and the costs will cover maintenance, repair, and operational services provided by the train suppliers,
Loke hoped that the initiative would improve the reliability of rail services and boost public transport usage while managing the financial aspects of procuring the train sets.
Chan praised the government's decision to lease new train sets from China rather than opting for an outright purchase, noting that this approach avoids the substantial capital outlay and maintenance costs associated with purchasing.
He said that adding 62 train sets to the existing 68 in operation could increase track utilisation from 30 per cent to 45 per cent.
Chan also pointed out the practicality of continuing with a proven supplier, as nearly 90 per cent of KTMB's current passenger trains are manufactured in China.
While acknowledging its consistent financial losses and the likelihood of continued deficits, Chan emphasised that KTMB provides an essential service that the government must maintain, a common practice worldwide.
"The return on investment in public transport is not measured by profitability but by its value as a social service," he added.
"For example, China built at high cost 45,000 km of high-speed rail from 2008 to 2023, not for immediate use but well into the future when costs will skyrocket, and also to propel the country and its people into a high-tech and futuristic world that embraces science and technology."
Chan also noted that unlike city-states like Singapore, where public transport is the primary mode of commuting, Malaysia has a culture where public transport is less popular.
Dr. Yeah Kim Leng, a professor of economics at Sunway University Business School, echoed these sentiments, saying that although KTMB and the urban bus transport system were currently loss-making, they provide essential services critical to the economy's functioning.
He said the social benefits of public transport far outweigh the financial costs, suggesting that the focus should be on operational efficiency, reliability, and connectivity to maximise utilisation and reduce road congestion.
Yeah also stressed the importance of balancing affordability with cost recovery to alleviate the financial burden on the government.
He pointed out the significant imbalance between private and public transport in Malaysia and called for urgent improvements in the efficiency, reliability, and connectivity of the public transport system.
He argued that leasing is the most cost-effective way to finance the substantial capital investments needed to modernise and upgrade both intra- and inter-city rail transport.
Dr. Ahmed Razman Abdul Latif, an associate professor at Putra Business School, supported the government's plan to acquire new trains for KTMB.
He attributed KTMB's financial challenges primarily to poor asset utilisation.
"With more trains, revenue will increase, and KTMB will achieve economies of scale, leading to a return on investment and eventually a move back into profitability," he said.
Ahmed Razman highlighted the need to encourage greater public transport use to reduce traffic congestion and environmental impact, noting that the number of cars in Malaysia has already surpassed the population.
He pointed out the practical limits of highway construction, especially in large cities like Kuala Lumpur, and suggested that as traffic worsens, people will naturally turn to alternative transportation.
Ahmed Razman added that leasing trains is preferable to purchasing them outright, as it avoids the heavy burden of debt commitments. Under the lease agreement, Malaysia's obligation is limited to the lease payments.
The Ministry of Housing and Local Government (KPKT) has revived 704 sick or abandoned projects with a total gross development value (GDV) of RM58.94 billion since January 2023.
KUALA LUMPUR: The Ministry of Housing and Local Government (KPKT) has revived 704 sick or abandoned projects with a total gross development value (GDV) of RM58.94 billion since January 2023.
This has helped more than 65,000 homebuyers acquire their desired homes, according to its minister, Nga Kor Ming.
"We aim to ensure there are no more abandoned housing projects by 2030," he said in an Agenda Awani interview programme.
Nga said KPKT will amend the law to ensure that developers found guilty of fraud will not be allowed to leave the country.
He said that KPKT will also establish escrow accounts.
"This means that all money paid by homebuyers will be used exclusively for the intended project. Currently, without escrow accounts, developers can transfer funds from Project A to Project B, causing Project A to become abandoned. After this amendment, such practices will no longer be permitted," he explained.
"We must ensure that in the housing sector, the good serves as a model and the bad serves as a lesson."
Abandoned projects pose a significant concern, especially in the real estate and infrastructure sectors. These projects often stem from financial challenges, inadequate planning, legal complications, or shifts in market demand.
The impact of abandoned projects can be far-reaching, impacting investors, developers, local economies, and communities that depend on the successful completion of these developments.
Sr. Samuel Tan
Sr. Samuel Tan, a seasoned property analyst, said that successfully completing abandoned projects can help restore investor confidence and showcase a commitment to development.
However, he emphasised the importance of thoroughly evaluating the reasons for the initial abandonment and ensuring that any revival is supported by sound financial planning and demand analysis.
"Reviving abandoned projects is a positive step as it can stimulate the economy. Completing these projects can generate jobs, boost local economies, and energise related industries like construction and real estate," he told NST Property.
"Additionally, it can deliver long-awaited benefits to communities, such as enhanced infrastructure, housing, and public services," he said.
Meanwhile, KPKT has proposed 33 initiatives valued at nearly RM1 billion to the Ministry of Finance for 2025 Budget, aimed at enhancing public well-being in line with digital transformation and the Malaysia Madani aspirations.
Nga said he led the KPKT delegation to the Ministry of Finance, and presented the high-impact proposals, including the development of 100 MADANI recreational parks, the introduction of MADANI Deposit, and the transformation of retention ponds, for the Budget 2025 Initiatives.
The proposed initiatives also include the introduction of electronic property sale agreements with e-stamping.
Nga said that the MADANI Deposit initiative aims to provide a deposit of up to RM30,000 to first-time homebuyers in line with the government's Rumahku, Syurgaku (My Home, My Heaven) policy.
"This is to ease the monthly payment commitment for first-time homebuyers, especially the youth among the B40 and M40 groups, and to realise the ministry's 'Shelter for All' aspiration of providing every citizen with a place to live," he said.
Nga said that this year alone, KPKT has implemented 12 initiatives from 2024 Budget, with 10 out of 12 achieving over 80 per cent of their targets within just six months.
Successful initiatives include the installation of 12,336 LED street lights in local authority areas and the upgrading of 882 public toilets.
KUALA LUMPUR: The 106.72-hectare "Duta enclave" in Kuala Lumpur should be valued at no more than RM6 billion, according to property experts.
Veteran property analyst Sr. Samuel Tan estimated the land's value to be between RM5 billion and RM6 billion, averaging around RM500 per square foot (psf).
"This valuation takes into account the location and comparable land values near the KL Metropolis development. Smaller plots of less than 20 acres within and around KL Metropolis have transacted at an average of RM774 psf. However, it's important to note that the Jalan Duta land lacks a development order and is a significantly larger parcel, so a discount has been applied," he told Business Times.
The Duta enclave currently hosts several government buildings, including the Malaysian Institute of Integrity, the National Archives, the Kuala Lumpur Syariah Court, the Inland Revenue Board building, the Malaysian Anti-Corruption Commission Academy (MACA), the National Hockey Stadium, and parts of Jalan Duta (now Jalan Tuanku Abdul Halim) leading to Segambut, as well as some portions of the Federal Territory mosque.
The government originally acquired the land in 1956 for RM1.32 million under the then-Land Acquisition Enactment with the intention of developing a diplomatic (Duta) enclave.
However, the land's original owner, Semantan Estate (1952) Sdn Bhd—founded by Eng Lian Group and Ng Chin Siu & Sons Rubber Estates Sdn Bhd—disputed the acquisition.
Eng Lian Group is best known for developing Bangsar in Kuala Lumpur, including Bangsar Village, while Ng Chin Siu & Sons reportedly owned much of Desa Hartamas and Mont Kiara during their peak.
In 2009, the High Court ruled that the government had trespassed on the land, a decision upheld by the Court of Appeal and the Federal Court in 2012.
In November 2018, a Federal Court bench led by then-Court of Appeal president Tan Sri Ahmad Maarop dismissed the Malaysian Government's application to review the 2012 decision, leaving the judgment intact.
Semantan Estate claimed it retained beneficial interest in the 106.72-ha land in Mukim Batu, alleging that the government had unlawfully taken possession of it.
The company argued that the government should pay mesne profits as damages for trespassing, with the amount to be determined by the court.
On Oct 25, 2022, Semantan Estate's liquidators initiated a claim against the Federal Government for wrongful possession of the land, seeking mesne profits.
Mesne profits refer to the rents and profits a trespasser could have earned during their occupation, which must be paid to the rightful owner as compensation for the trespass.
During ongoing trials before High Court judge Datuk Ahmad Shahrir Mohd Salleh, Semantan Estate's valuation of the mesne profits from 1957 to 2021 reportedly ranged from RM3.1 billion to RM6.646 billion with simple interest, and up to RM13.242 billion with compound interest.
However, the Ministry of Finance's Valuation and Property Services Department disputed this sum, arguing that compensation should be RM290 million.
In a decision with significant implications for the land industry and the government, the High Court on Aug 7, 2024, granted Semantan Estate's liquidators' application for the 106.72-ha land to be returned to the company.
However, on Aug 8, 2024, the government filed an appeal against the High Court's decision ordering the transfer of the land to Semantan Estate.
It was reported on Aug 19, 2024 that the government's application to stay the High Court's decision will be heard on Sept 12.
According to a court system check, the application will be heard before Judge Datuk Ahmad Shahrir Mohd Salleh at 10 am.
An industry insider described the Semantan Estate judgment as unique to its circumstances.
"This ruling highlights the fairness and equity of the legal process in addressing any wrongdoing by government agencies. This is not a settlement but a court judgment. While there have been attempts to settle this case, the courts have now made a definitive decision," he told Business Times.
Veteran property analyst Sr. Samuel Tan estimated the land's value to be between RM5 billion and RM6 billion, averaging around RM500 per square foot (psf).
Great potential for redevelopment
Tan, meanwhile, suggested that if the 106.72-hectare Duta enclave land is fully redeveloped with Grade A office towers, luxury residences, hotels, a lifestyle mall, and boutique retail spaces, it could potentially generate over RM30 billion in gross development value.
"Logically, if the land is returned to the original owner, then the properties currently on it should also revert to the original owner," Tan explained.
"The court did not mandate vacant possession of the land or require it to be restored to its original state before development. Once the land titles are transferred to the liquidator of Semantan Estate, the government will effectively be trespassing, which could lead to damages."
Tan said that as the landowner, Semantan Estate would have the typical rights, including the possibility of clearing the government buildings or allowing them to remain under a rental agreement, should both parties agree.
"We're awaiting the final settlement to understand the full implications," Tan added.
To resolve the situation, Tan said that the government could enter into a long-term lease with Semantan Estate, or purchase or compulsorily acquire the land.
"While this would be a costly process, it would provide a clear resolution," he said.
Alternatively, Semantan Estate could consider contributing portions of the land that house important properties, such as the mosque, National Archives, Inland Revenue Board building, and sports complex, to the government.
"The remaining undeveloped land could then be repossessed by Semantan Estate for future development. Given the existing structures, the market value of the estate has already appreciated significantly," Tan noted.
However, Tan acknowledged that any settlement could have far-reaching implications.
He emphasised that compulsory land acquisition, even when necessary, must strictly adhere to the law, or the consequences could be severe, especially as the land's market value has increased over time.
"It's not just about market values, but also mesne profits. The final amount for mesne profits could surpass the market value," he said.
Tan also warned that a final settlement might encourage similar cases to be filed, consuming significant court time and potentially resulting in substantial financial losses for acquiring authorities if they lose.
"If the parties involved in the original acquisition are no longer around (due to death or winding up), the aggrieved parties will suffer major losses. Returning the land to the original owners would introduce a new set of problems, as current occupants would lose ownership and their interests would be jeopardised," he concluded.
