18 malls in limbo?

 By Kathy B. - January 26, 2024 

Johor Bharu. Image courtesy of KGV International

KUALA LUMPUR: Johor's shopping malls, many of which were shuttered during the pandemic starting in 2020, are seeing a new breath of life.

  KGV International Property Consultants executive director Sr. Samuel Tan said that in order to capitalise on the most recent trends in shopping, either new shopping centres are opening or older malls are being retrofitted.

  According to Tan, Coronation Square and the rapid transit system (RTS) development area will house new malls. 

  "So basically, to say malls are in limbo is an untrue fact," he said.

  Tan was commenting on a WhatsApp message that went viral recently and claimed that at least 18 Johor Bahru malls were in limbo; either they were shut or about to close.

  "Obviously, it was written by someone who is very ignorant of the real landscape," Tan told NST Property.

  According to NAPIC's most recent data, there will be a total of 18.39 million sq m of shopping mall space in Malaysia during the third quarter of 2023. Of this, 13.37 million sq m have an occupancy rate of 76.8 per cent, which is higher than the previous year's 76.6 per cent.

  Malls in Selangor have an occupancy rate of 79.3 per cent, Kuala Lumpur 83.1 per cent, Johor 69.9 per cent and Penang 73 per cent. States within the lower range are Melaka at 56.2 per cent and Kedah at 69.8 per cent.

  Tan said the country's economy and the resulting purchasing power of consumers determine the supply and occupancy rates of shopping centres.

  "We've seen more foot traffic since Covid. To attract customers, mall owners have been employing a variety of marketing strategies. Tenancy mixes were rearranged as a result of the evolving trend brought about by an increase in online shopping. 

  "Many stores nowadays provide both online and offline experiences, as we can see," he remarked. 

  According to Tan, many Malaysians and Singaporeans who work in Singapore go shopping in Johor Bharu because of the strong Singaporean dollar, which is currently trading at 3.53 against the US dollar. 

  When the RTS is completed by the end of 2026, he anticipates that this trend will continue and get stronger. 

  He said that the creation of the Special Financial and Economic Zones will encourage more foreigners to shop in Johor Bahru. 

  Recognising this, the government has made plans for infrastructure, including connected roads and bridges, to connect different city buildings, he said.

Refurbishment, repurpose

  Tan said that major brands are making their debuts or adopting a new aesthetic in already-existing malls.

  Additionally, abandoned or old malls are being transformed.

  He said that the Sheraton Hotel will soon occupy the long-abandoned Pacific Mall, which according to him, is a huge relief because it is located near to the RTS station. 

  The renowned Mustapha Centre will soon open at Capital Mall along Jalan Tampoi, and Danga City Mall will be transformed into an RTS "park and ride" location featuring retail establishments.

  Tan said Johor Bahru City Square and JBCC Komtar will see a rebirth as more Singaporeans move back into the city.

  To accommodate increasing foot traffic, Tasek Mall in Taman Ungku Tun Aminah has added a new wing.

  "Tasek Mall is still very popular. There are now more shops and amenities. Sutera Mall is another well-liked mall in the neighbourhood. It is also crowded with customers due to its strategic location within the Sutera Business Hub. A hotel and movie theater that are complimentary are required to add to the appeal," he said.

  Tan said that Kotaraya Galleria, situated in the heart of the city, is yet another example of success.   Because of the UTC, it is a "must-go" location when interacting with different government agencies. Tampoi's Plaza Angsana is also another well-liked mall, Tan said.

  "One of Medini City's main attractions is Big Box at Sunway Iskandar City. It provides items at a lower cost and is roomy. There is plenty of parking, and every journey is exciting. There are other leisure activities available besides shopping," Tan said.

Source: https://www.nst.com.my/property/2024/01/1005895/18-malls-limbo

Why Japanese firms not keen on Malaysia's bullet train project

 By Sharen Kaur - January 26, 2024

Japanese companies such as East Japan Railway are not keen to take part in Malaysia's multi-billion ringgit bullet train project because there is no government funding available to support the development.

KUALA LUMPUR: Japanese companies such as East Japan Railway are not keen to take part in Malaysia's multi-billion ringgit bullet train project because there is no government funding available to support the development.

Sources with knowledge on the matter said that since the Request for Information (RFI) document was released in July of last year, not a single Japanese company had paid RM20,000 to purchase it.

"The Japanese companies didn't purchase the RFI documents because they already knew there would be no government funding. Therefore, the reports of them dropping out of the KL-Singapore HSR are misleading," a source with links to Japanese firms told Business Times.

It was reported that Japanese companies had withdrawn their bids to build the KL-Singapore HSR due to worries about the Malaysian government's lack of funding support.

According to reports from Japan, several companies, such as East Japan Railway, had intended to bring the country's Shinkansen, or bullet train, and systems into the KL-Singapore HSR project.

However, they concluded that investing would be too risky without government support

From its initial agreement between Malaysia and Singapore in 2013, the KL-Singapore HSR has encountered multiple obstacles.

It was cancelled in 2020 and then revived in July of last year.

Malaysia hopes to avoid using public funds for the construction of this latest attempt by financing it through private investment.

Japanese companies' abandonment of the high-speed line brings more concern to the project given the country's long-term interest in the idea, including a visit by its then Transport Minister Keiichi Ishii in 2015 to pitch the Shinkansen system to officials.

Besides East Japan Railway, it was reported that trading house Sumitomo had also shown interest in supporting the project during its initial proposal.

"The Japanese companies are not keen simply because they would rather invest their funds and resources in countries that are expanding their railway networks and where government funding is involved.

"Look at what the Japanese are doing in India. In India, the government bears direct responsibility for railway development, whereas in Malaysia, funding must come from private sources," the source said.

In the city of Surat in the western state of Gujarat, the first trial run of the 508-km line, which is modelled after Japan's Shinkansen and constructed with Japanese assistance, is scheduled for 2026.

The line connecting Mumbai, the commercial hub in the state of Maharashtra, with Ahmedabad in Gujarat, will have trains hitting speeds of up to 320 kph, reducing the train travel time between the two cities from over six hours to under three hours.

The 1.08 trillion rupee project, of which the Japan International Cooperation Agency is reportedly paying 81 per cent of the cost at an interest rate of 0.1 per cent, has about 45,000 people working on the line.

Source: https://www.nst.com.my/business/corporate/2024/01/1005807/why-japanese-firms-not-keen-malaysias-bullet-train-project

Seven groups set for intense competition to build KL-Singapore HSR

 By Sharen Kaur - January 26, 2024 

KUALA LUMPUR: Seven consortiums that have submitted concept proposals to develop the Kuala Lumpur-Singapore high speed rail (HSR) project will be in intense competition.

Three of the seven consortiums, comprising a total of 31 companies, are believed to be led by Tan Sri Vincent Tan Chee Yioun-controlled Berjaya Group, YTL Group and China Railway, the national passenger and freight railroad corporation of China.

Industry insiders said in addition to rolling stock manufacturers, the bidders have roped in local and foreign firms with experience in civil engineering, technology, piling, design and build, signalling systems, construction supervision, and infrastructure development.

"Berjaya and YTL will need to be cautious around the Chinese players. Along with the East Coast Rail Link (ECRL), which is presently being built, the Chinese government sees the KL-Singapore HSR as a component of their Belt and Road Initiative, and they will have the top railroad development companies involved," said an insider.

China's HSR reportedly accounts for two-thirds of the world's total HSR networks.

The HSR network in China is the world's longest and most extensively used, with a total length of 45,000 kilometres by the end of 2023. The network encompasses newly-built rail lines with a design speed of 200-380 km/h.

"The consortiums can divide the KL-Singapore HSR construction into several sections, such as the technical part of the recommended route, the station and track alignment, and specifications like the project schedule, rolling stock, and signaling system details.

"In a different section, they can also break down the costs of the project, covering things like funding sources, operating expenses, land acquisition, and structure.

"They should explain their business models, revenue streams, pricing, and demand strategies, as well as the legal and regulatory support the government requires in their concept proposal," another insider said.

The seven concept proposals mark a new phase in Malaysia's efforts to revive the on-off-on initiative.

They were submitted to MyHSR Corporation Sdn Bhd (MyHSR Corp) in response to a request for information (RFI) that invited private sector participants to deliver the project.

  MyHSR Corp is a company owned by the Minister of Finance (Incorporated) and under the supervision of the Ministry of Transport (MOT), serving as the government's project delivery vehicle.

The MOT and the Cabinet have been presented with the results of the RFI evaluation for their consideration.

It will enter the second phase with the Request for Proposal (RFP) stage to obtain detailed proposals from the selected consortia if the feedback from the government is positive, according to an insider.

The insider told Business Times that both technical proficiency and the overall capacity "to develop and operate the railway and services with the necessary resources and within the budgeted cost, quality, and time" are requirements for participating firms.

The consortiums must also present viable commercial and business models, as well as suitable frameworks for project and consortium governance.

  The KL-Singapore HSR will be developed based on a public-private partnership initiative on the design-finance-build-operate-transfer (DFBOT) model, without any government funding or guarantees.

The 330-350 km-long project, first mooted over 20 years ago by YTL Group, resulted in a legally binding agreement signed in December 2016, with the aim of having the line operational by 2026.

However, it was put on the back burner following several delays at Malaysia's request and the eventual lapsing of an agreement in December 2020.

Malaysia paid more than S$102 million (US$76.46 million) in compensation to Singapore for the project's termination.

Talk of reviving the project intensified following the general elections in 2022 and Prime Minister Datuk Seri Anwar Ibrahim's visit to Singapore early in the new year, where he met with Singaporean leaders.

Source: https://www.nst.com.my/business/corporate/2024/01/1005801/seven-groups-set-intense-competition-build-kl-singapore-hsr

Kuala Lumpur-Bangkok high-speed rail line possible, says MyHSR Corp head

By Sharen Kaur - January 8, 2024

The chairman of MyHSR Corporation Sdn Bhd, Datuk Seri Fauzi Abdul Rahman

KUALA LUMPUR: The chairman of MyHSR Corporation Sdn Bhd, Datuk Seri Fauzi Abdul Rahman, said that there may be a possibility that the bullet train will be extended to Malaysia's northern sector, with a final stop at Padang Besar in Perlis, but the immediate priority is on the KL-Singapore HSR to be developed.

"Thailand intends to construct a high-speed rail system that will connect Bangkok and Padang Besar. The three airport lines and the northeast are being constructed.

They will begin the southern line after they have finished that.

"We would simply synchronise with that if we were to construct a line connecting Kuala Lumpur and Padang Besar," he said.

"However, we must ensure that our southern line, which runs from Kuala Lumpur to Singapore, is fully utilised before we can proceed. We want to ensure that the construction is completed to a high standard and that the ridership figures match projections that are developed in the proposal by the private sector.

 "Our goal is for the southern corridor to grow into a major economic hub, given the positive correlation and interdependence between investments in large infrastructure projects such as the HSR and economic multipliers. Early planning and integration of the economic corridor alongside the HSR delivery is critical to amplifying the benefits and growth potential of the project.

"We simply cannot rest on our laurels and must not be left behind, as our regional peers such as Thailand and Indonesia, which are prioritising mega transport infrastructure projects, are closing the gap to Malaysia," he said.

 On the RFI process for the KL-Singapore HSR line, Fauzi said that the deadline will not be extended after Jan 15, 2024.

"Due to requests from the majority of possible bidders, we decided to extend the RFI until January 15. They needed more time to form consortiums and explore financial options. There won't be another extension after January 15.

"We will submit the findings to the Malaysian government following the RFI evaluation. Whether the concepts are compelling enough to move forward with the project will be determined by the government.

"Each consortium will need to conduct an extensive feasibility study on their own as they must raise the funds. The government and other stakeholders have to be convinced that the financials make sense," said Fauzi.

Source: https://www.nst.com.my/business/corporate/2024/01/998472/kl-bangkok-line-possible-says-myhsr-corp-head

Industry insiders say Malaysia and Thailand stand to benefit greatly from a KL-Bangkok HSR

 By Sharen Kaur - January 8, 2024

KUALA LUMPUR: Can the potential high-speed rail connection between Kuala Lumpur and Singapore (KL-Singapore HSR) be a component of a larger scheme extending as far north as Bangkok in Thailand or even further?

According to industry insiders, a route connecting KL and Bangkok will make it possible to link it to other regional HSR lines to form larger networks that will reach Laos and China.

With advancements connected to China's Belt and Road Initiative (BRI), the expected standard gauge could facilitate direct freight services to China and other destinations in addition to passenger traffic.

"It would make sense if Thailand initiated the feasibility study and Malaysia could bring in China to provide the funding, construction, operations and larger volume of passengers from their region into KL and Bangkok," the insiders said.

According to an insider, China seems to be the most likely option to act as an external supplier, tying the project into the Singapore-Kunming rail link, a bigger project that will connect China with a number of Asean members.

"In the long run, Malaysia may benefit from the plan for a KL-Bangkok HSR, although some may argue that it may not be economically feasible given that the distance between the two links is greater than that of KL to Singapore," said the insider.

The capitals of Malaysia and Thailand are separated by about 1,400-1,500 kilometres, but Padang Besar in Perlis is only roughly 450 km from Kuala Lumpur.

In comparison, the HSR from Kuala Lumpur to Singapore is between 330 km and 350 km long. 

The insider told Business Times that Malaysia and Thailand stand to benefit greatly from the KL-Bangkok HSR. 

They said the rapid growth of bilateral economic integration, which includes cross-border production chains, has increased demand for travel between the two countries.

"As the Asean region has rapidly developed into one of the most dynamic and attractive areas for investment opportunities, there is a huge opportunity for Malaysia to turn the economic tide to ensure the continual growth of the country with a much-needed impetus on the scale of a large infrastructure project such as the KL-Singapore HSR.

"The KL-Singapore HSR represents a key driver to harness economic integration opportunities with the Asean region and China, along with the grand and ambitious vision for the country's future development and connectivity to the Belt and Road Initiative," the insider said.

He said the development of the HSR in Malaysia has the capacity to fundamentally accelerate the country's economic recovery and raise the bar for the country's transport system, which would lead to a multitude of economic, social, and environmental benefits.

Catching up with regional peers

Due to the positive correlation and interdependence between infrastructure investments and economic multipliers, large infrastructure projects are widely acknowledged as being essential to a country's economic growth.

Indonesia, Malaysia's immediate neighbour, began offering Jakarta-Bandung HSR services in October 2023 with the goal of using them as a tool for long-term economic transformation.

With a travel time of 40 minutes, this link between Indonesia's first and third largest metropolitan areas, which together have a population of 42 million, has greatly benefited the country's citizens' freedom of movement as the first HSR in Southeast Asia.

"The implementation of the Jakarta-Bandung HSR and the expansion of the plan to connect to Surabaya could potentially increase the income of the surrounding areas along the corridor.

"This is because businesses and individuals will have improved market access to the cities, industrial clusters, food processing and textile industries, and many other sectors," said the insider.

Included in the long-term plan is the investment in the Java corridor, which is expected to generate an additional 2.2 per cent gross domestic product (GDP) growth in the area.

With the HSR serving as a major catalyst, Thailand has also developed the Eastern Economic Corridor (EEC), which is expected to generate more than one million job opportunities and an additional RM 2.5 trillion in GDP by 2037. 

According to him, the Shinkansen was crucial to Japan's economic reform during the Income Doubling Plan initiative in the 1960s, as evidenced by the country's yearly growth average of over 10 per cent, which exceeded the initial goal of 7.2 per cent.

"The size of the Japanese economy also doubled in less than seven years. This is the outcome of the Japanese government's initiative to move the focus of economic development from densely populated cities further into undeveloped areas through the Shinkansen, with a focus on connectivity and mobility as the primary drivers to spur regional development through the Pacific Belt Zone," he said.

Source: https://www.nst.com.my/business/corporate/2024/01/998470/industry-insiders-say-malaysia-and-thailand-stand-benefit-greatly