Malaysia's high-speed rail project soon?

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.

Eversendai hits record order book of RM6.7bil with new job wins

 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. 

Source: https://www.nst.com.my/business/corporate/2024/09/1103267/eversendai-hits-record-order-book-rm67bil-new-job-wins

EcoWorld Malaysia exceeds RM3.5bil full-year sales target within 10 months

 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.

Source: https://www.nst.com.my/property/2024/09/1107874/ecoworld-malaysia-exceeds-rm35bil-full-year-sales-target-within-10-months

Radium Development optimistic about housing market boom

 By Sharen Kaur/NST Property, September 11, 2024

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.

Source: https://www.nst.com.my/property/2024/09/1104175/updated-radium-development-optimistic-about-housing-market-boom

Forest City Special Financial Zone (SFZ) set to attract global investment, fueling real estate surge

 By Sharen Kaur

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.

Get up to 95 pct financing for LBS Bina's SkyRia @ D'Island in Puchong

 By Sharen Kaur

(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.