Research

‘THE WEEK THAT WAS’ 14th January – 20th January 2019

Knight Frank

Prepared by:

Research & Consultancy Knight Frank Malaysia Suite 10.01, Level 10 Centrepoint South Mid Valley City, Lingkaran Syed Putra 59200

T: +603 228 99 688 F: +603 228 99 788

Table of Contents (A) RESIDENTIAL / TOWNSHIP ...... 6 Affordable housing in Bangsar South 75% taken up (EdgeProp.my, 15th January 2019) ...... 6 S P Setia's Avis 2 based on ideal M'sian home (EdgeProp.my pullout, 18th January 2019) ...... 6 Eco World breaks new ground with Simfoni (New Straits Times, 17th January 2019) ...... 7 Affordable living in (The Star, 18th January 2019) ...... 8 (B) RETAIL ...... 8 Retail sector to see lower growth this year, says RGM (The Malaysia Reserve, 14th January 2019) ...... 8 Data drives retailers (The Star, 17th January 2019)...... 9 Building value for a grocer brand (The Star, 14th January 2019) ...... 9 Pizza Hut Malaysia set to open its 400th store (Bernama, 16th January 2019)10 (C) COMMERCIAL / OFFICE ...... 11 Mammoth Empire: Tower H tenanted, including by Grab (New Straits Times, 17th January 2019) ...... 11 Colony@ marks debut of Colony (EdgeProp.my, 15th January 2019) ...... 11 All-female co-working space HelloHERA opens in KL (The Malay Mail, 17th January 2019) ...... 12 Owner of project told to buy Medan Imbi land or lose right to project (The Star, 16th January 2019) ...... 12 Medan Imbi building owner identified (The Edge Financial Daily, 18th January 2019) ...... 12 (D) MIXED DEVELOPMENT ...... 13 Mah Sing recognised by Malaysia Book of Records (New Straits Times, 17th January 2019) ...... 13 Vanke to focus on Jalan Raja Chulan mixed-use development project this year (The Malaysian Reserve, 14th January 2019) ...... 13 HCK takes over Empire Remix 2 project, to be rebranded as education city (The Edge Financial Daily, 16th January 2019) ...... 14 Three years on, Kg Baru redevelopment plan remains challenging for KBDC (The Malaysian Reserve, 16th January 2019) ...... 15 Big plans for Gurney foreshore (The Star, 17th January 2019) ...... 16 RAC: Best time to redevelop rail land (New Straits Times, 17th January 2019)17 Transit-oriented plan for Kempas (NST Property, 17th January 2019) ...... 18 (E) INDUSTRIAL / LOGISTICS / PLANTATION ...... 19 Chin Well’s warehouse to start operations this year (The Star, 14th January 2019) ...... 19 NTPM investing US$30mil to expand in M'sia, Vietnam (The Star, 14th January 2019) ...... 19

Wellcall plans composite hose plant with Trelleborg (The Star, 15th January 2019) ...... 20 Uni Wall Aps expands presence in Malaysia, Australia (The Star / Bernama, 15th January 2019) ...... 20 HPI Resources launches second plant worth RM45m (The Star / Bernama, 17th January 2019) ...... 20 HSL gets digital village job (The Star, 14th January 2019) ...... 21 No near-term rerating catalysts expected for CPO price (The Edge Financial Daily, 14th January 2019) ...... 22 MPOB sees CPO prices above RM2,500 a tonne this year (theedgemarkets.com, 17th January 2019)...... 23 IJM Plantations’ 2019 FFB production outlook sturdy (The Edge Financial Daily, 17th January 2019) ...... 23 Prinsiptek in JV to build oil palm mill for RM2.126b (NST Business, 15th January 2019) ...... 24 FGV to sell RM350m worth of non-core businesses, assets (theedgemarkets.com, 14th January 2019)...... 24 (F) INVESTMENT ...... 25 Selangor eyes RM7.5bil investments this year (The Star, 15th January 2019) 25 records RM3.8b investments between Jap-Sept 2018 (Bernama, 14th January 2019) ...... 25 (G) CORPORATE ...... 25 AQRS on the up and up? (EdgeProp.my, 19th January 2019) ...... 25 Berjaya Corp mulls asset sales abroad (New Straits Times, 18th January 2019)26 Newsbreak: Cycle & Carriage to sell its retail operations? (The Edge Malaysia, 14th January 2019) ...... 26 Eastland Equity aborts rights issue as proposed development project faces hiccups (theedgemarkets.com, 18th January 2019) ...... 27 JAKS releases RM50m bank guarantee payment to Star Media (theedgemarkets.com, 16th January 2019)...... 27 Kayin revises Selangor Properties privatisation offer again (theedgemarkets.com, 15th January 2019)...... 28 Kerjaya Prospek gets RM155m job from HCK unit (theedgemarkets.com, 17th January 2019)...... 28 Scientex seen to gain from stretch film demand, property strategy (The Edge Financial Daily, 18th January 2019) ...... 29 Sunway’s property division targets RM1.3bil sales for FY19 (The Star, 15th January 2019) ...... 29 TH completes disposal of TRX land at a premium (New Straits Times, 15th January 2019) ...... 30 Vizione Q2 earnings surge threefold (The Sun Daily, 15th January 2019) ...... 30 (H) REITS / FUNDS ...... 31 Pavilion REIT won't buy stake in Pavilion Bukit Jalil (theedgemarkets.com, 17th January 2019) ...... 31

MRCB-Quill REIT's net property income falls 11.7% in 4Q (theedgemarkets.com, 17th January 2019)...... 31 MRCB-Quill REIT sees RM5.4m loss on revaluation of properties (theedgemarkets.com, 17th January 2019)...... 32 KIP Reit’s 2Q profit fall on higher expenses (The Malaysian Reserve, 16th January 2019) ...... 32 (I) LEISURE / TOURISM ...... 32 W Hotel near Petronas Twin Towers for sale for RM360mil (The Star, 14th January 2019) ...... 32 W Hotel not up for sale, says Tropicana (EdgeProp.my, 15th January 2019). 34 As age catches up, Grand Seasons KL to halt operations (The Edge Malaysia, 16th January 2019) ...... 34 The Datai Langkawi reopens in grand style (The Star, 18th January 2019) .... 35 SEA LIFE Malaysia to be launched by first half of 2019 (EdgeProp.my, 14th January 2019) ...... 35 keen on eco-tourism partnership with Chinese investors (The Star, 17th January 2019) ...... 36 klia2's new RM3m processing centre to cut time by 66% for domestic flights (theedgemarkets.com, 18th January 2019)...... 36 Malaysia Airlines reinstates Kochi (Sunbiz, 14th January 2019) ...... 36 Malindo Air to start KL-Varanasi flights in March (Bernama, 17th January 2019) ...... 37 MATTA urges visa-free travel for Chinese, Indian tourists (theedgemarkets.com, 15th January 2019)...... 37 (J) INSTITUTIONAL ...... 38 Matrix Concepts enters JV for schools rationalisation plan (The Star, 16th January 2019) ...... 38 Alibaba sets up first ‘netpreneur training’ programme outside China in Malaysia (The Malay Mail, 17th January 2019) ...... 38 Seismic fundamental shift expected in local healthcare space (The Edge Financial Daily, 14th January 2019)...... 39 Sinmah Capital focuses building hospitals for B40 and M40 (New Straits Times, 17th January 2019) ...... 39 KPJ Healthcare to focus on brownfield developments (The Star, 16th January 2019) ...... 40 Fortis completes deal for RHT Health assets (The Sun Daily, 16th January 2019) ...... 40 New team takes over at Mawar, pledges to re-open private hospital (The Star, 15th January 2019) ...... 41 (K) INFRASTRUCTURE ...... 41 New LRT3 contract to be signed soon (The Star, 18th January 2019) ...... 41 EPCC contract with CCCC for ECRL project terminated — source (theedgemarkets.com, 18th January 2019)...... 41

JB-S'pore RTS link may be delayed until 2024 – S'pore Transport Minister (EdgeProp.my, 14th January 2019) ...... 42 TSR Capital bags RM307m job under Gemas-JB rail project (Bernama, 14th January 2019) ...... 42 Penang seeks federal aid to carry out RM300mil plan for mainland (The Star, 17th January 2019) ...... 42 Cheaper and faster to build BRT than MRT, says transport group (EdgeProp.my, 17th January 2019) ...... 43 Bintulu Port Authority cancels Muhibbah’s RM585m wharf contract (theedgemarkets.com, 17th January 2019)...... 44 (L) ISKANDAR MALAYSIA ...... 44 IRDA targets RM30b new investments for Iskandar Malaysia (Bernama, 15th January 2019) ...... 44 Passage of convenience (The Star, 17th January 2019) ...... 44 (M) OTHERS ...... 45 Kuwait's KFH plans asset sales in 2019, including Malaysia (The Star / Reuters, 14th January 2019) ...... 45 'Bangsar South' officially reverts to Kg Kerinchi (EdgeProp.my, 19th January 2019) ...... 45 Redevelopment of Highland Towers site to start next year (The Malaysian Reserve, 18th January 2019)...... 45 3,733 Pr1ma units to be built in Terengganu (EdgeProp.my, 14th January 2019) ...... 46 RM200m allocated to build, repair 8,889 PPRT houses (EdgeProp.my, 14th January 2019) ...... 46 State low-cost housing initiatives launched in (EdgeProp.my, 15th January 2019) ...... 46 Malaysians can expect up to 10 pct discount for overhang residential units (NST Business, 17th January 2019) ...... 47 Private sector adoption of IBS around 35% — CIDB (theedgemarkets.com, 17th January 2019) ...... 47 Malaysia economy to grow slower at 4.6% for 2019, says RHB Research (theedgemarkets.com, 14th January 2019)...... 48 World Bank: Malaysia’s economic fundamentals remain strong (The Star / Bernama, 16th January 2019) ...... 49 Malaysia consumption growth to slow to 5.5% in 2019, Fitch Research says (The Star / Bloomberg, 18th January 2019) ...... 49 Govt must provide consistency and clarity on policies — SERC (theedgemarkets.com, 17th January 2019)...... 50 Unemployment rate in Nov unchanged at 3.3% (The Star, 15th January 2019)50 Hiring activity in construction, property to stay conservative in 2019 (The Malay Mail, 17th January 2019) ...... 50

Korn Ferry sees 3.6% rise in real wages in 2019 (The Star / Bernama, 17th January 2019) ...... 51 Malaysian business optimism weakens in 1Q — survey (theedgemarkets.com, 15th January 2019)...... 51 (N) OVERSEAS ...... 52 London, NYC, Hong Kong are no longer immune to the housing slump (Bloomberg, 16th January 2019) ...... 52 Malaysian developers not hit by weakening Aussie dollar (The Edge Financial Daily, 14th January 2019)...... 53 Singapore Dec private home sales surge 40% y-o-y (Reuters, 15th January 2019) ...... 54 Singapore’s Golden Mile Complex may be developed as an integrated development if conserved (theedgemarkets.com, 14th January 2019) ...... 55 Rare Singapore Hotel site gets record US$415m bid (The Star / Bloomberg, 16th January 2019) ...... 55 Co-working brand No18 set to open Asia flagship space in Capitol Singapore (EdgeProp.sg, 14th January 2019) ...... 56 Berjaya Land plans Four Seasons Resort in Okinawa costing US$400m (The Star, 17th January 2019) ...... 56 Marriott looks to reboot loyalty plan after cyberattack (The Star / Reuters, 17th January 2019) ...... 57 Rich Chinese still hungry for luxury goods (The Malaysian Reserve / Bloomberg, 15th January 2019) ...... 57 China's coffee unicorn is burning millions to overtake Starbucks (Bloomberg, 17th January 2019) ...... 58 Senior single-person households to increase by 2030 – research (EdgeProp.my, 16th January 2019) ...... 59 Berkeley to launch 2nd phase of Birmingham scheme (Focus Malaysia, 18th January 2019) ...... 60

(A) RESIDENTIAL / TOWNSHIP

Affordable housing in Bangsar South 75% taken up (EdgeProp.my, 15th January 2019)

 A Federal Territory-level affordable housing scheme by IJM Land Bhd and Amona Development Sdn Bhd has achieved a take-up rate of 75% at its launch yesterday.

 The Rumawip project is named Suria Pantai and comprises 896 units of homes in a 34-storey block.

 Each unit is 810 sq ft, comes with one covered parking bay and is priced at RM275,000.

 Facilities within the gated and guarded development include a swimming pool, playground, and a multipurpose hall.

 Suria Pantai is about 3km to Mid Valley and 5km to KL Sentral. It is also accessible via the recently-opened New Pantai Expressway (NPE)’s Pantai Sentral interchange.

 The new dedicated interchange which comprises three ramps and two at-grade roads connects Pantai Sentral Park directly to the NPE, with enhanced accessibility to various key hubs and locations in Valley.

 Equipped with CCTV, the new interchange is expected to ease traffic flow in the entire area surrounding Pantai Sentral Park.

 The development is now open for registration via Suria Pantai’s official portal.

 Single individuals with monthly income of less than RM10,000 and combined household incomes of no more than RM15,000 are eligible apply for a unit in this project.

 The construction works has begun and it slated for completion by 2022.

S P Setia's Avis 2 based on ideal M'sian home (EdgeProp.my pullout, 18th January 2019)

 Property developer S P Setia Bhd is building more homes based on what Malaysians want as revealed in the findings of the Lafarge-EdgeProp MYHOME survey which was conducted from February 28 to April 15 last year.

 Following the unveiling of Baccas at Setia EcoHill 2, Semenyih on November 28 by the Housing and Local Government Minister, the developer had in early January introduced the Avis 2 double-storey terraced homes at Setia Alamsari in Bangi.

 The 775-acre freehold Setia Alamsari township was launched back in 2007 by the then I&P Group Sdn Bhd which in 2017, merged with S P Setia.

 Comprising 61 units, the Avis 2 homes feature a Scandinavian look. Each unit is on a 22ft by 80ft lot while unit built-ups are from 1,953 sq ft. Avis 2 units are

tagged from RM709,000 to RM1.03 million. The project will be completed in early 2021.

 Setia Alamsari is connected to major highways such as the PLUS highway, LEKAS highway and SILK highway while surrounding amenities include shopping malls such as Bangi Gateway and ECO Mall; educational institutions such as Universiti Kebangsaan Malaysia, Sekolah Rendah Sri Al-Amin Bangi and SMK Convent and medical centres including the Kajang Hospital and KPJ Kajang Specialist Hospital.

 Currently the developer is in talks with the Kajang Municipal Council (MPKj) to upgrade the road from the station leading to the township while a link has just been completed recently that connects Setia Alamsari to Jalan Bangi Lama and Setia EcoHill, cutting travel time by 20 to 25 minutes.

 Other projects in the pipeline at Setia Alamsari this year include superlink houses tentatively priced from RM800,000 onwards, semidees, the first bungalows in the township and Rumah SelangorKu homes by the end of this year.

Eco World breaks new ground with Simfoni (New Straits Times, 17th January 2019)

 Simfoni Apartments is located within Eco Majestic Sdn Bhd’s township in Semenyih, Selangor.

 Eco Majestic is a subsidiary of Eco World Development Group Bhd (Eco World).

 Eco World has broken new ground and challenged industry norms with Simfoni Apartments by creating quality affordable homes. It launched the apartments in 2015 under the Selangor government’s Rumah SelangorKu Type B category where each unit is priced at RM100,000.

 Despite the price, the units offer an incomparable quality of life.

 Simfoni Apartments carry the Eco World DNA with its clean white facade, entrance statement, 24-hour manned guard house and linear parks, to name a few.

 Simfoni Apartments residents enjoy access to a range of amenities at Eco Majestic township. This includes hypermarkets and retail malls, education institutions, healthcare, sporting facilities and recreational parks.

 Simfoni Apartments comprise three blocks with a total of 870 apartment units. The standard size of the apartments is 750 sq ft and all units come with three bedrooms and two bathrooms.

 The keys were handed over to buyers recently.

 The 440.7-hectare Eco Majestic was launched in May 2014. Since then four residential precincts — namely Cradleton, Tenderfields, Gentlebre and Merrydale — with a total of 1,967 units and two parcels of neighbourhood shop offices — Brighton and Ivoris— with a total of 148 units have been launched.

 Three parcels of affordable housing have also been launched, namely Simfoni, Karisma and Harmoni Apartments, comprising 2,520 units of low-to-medium- costs homes. Both Simfoni (870 units) and Karisma (750 units) have been handed over.

 The apartment blocks are thoughtfully designed with architectural themes mirroring the overall colonial straits-era style adopted throughout the township. Facilities include playgrounds, multipurpose courts, surau, function halls, guard house, gazebo and carparks.

Affordable living in Semenyih (The Star, 18th January 2019)

 Located at Jalan in Semenyih, Midlands City is a freehold development with a gross development value (GDV) of RM420 million.

 To be launched in March this year and completed by the first quarter of 2021, the development offers 772 SOHO units designed to cater to the flexible needs of the occupants. With the price range of RM283,800 to RM328,800, Midlands City targets first-time home buyers, and investors.

 Recreational facilities will include BBQ deck, Taichi deck, outdoor gym area, hammock garden, yoga deck, floating deck, chilling lounge, playground, half basketball court, multipurpose plaza, jacuzzi, swimming pool, and spa bed.

 There will also be 70 retail units offering F&B services to the residents and a private specialist hospital adjacent to Midlands City which is linked via an overhead pedestrian bridge.

 Apart from food and healthcare, tertiary education is also a benefit that residents will get to enjoy. The University of Nottingham is located just 800m away. There will also be a private college within Midlands City development itself.

 Midlands City will be equipped with state-of-the-art security. Apart from being surrounded by anti-climb parameter fencing, the development is also under guard house monitoring, lift lobby access control, CCTV monitoring system and a 24-hours security guard patrolling.

(B) RETAIL

Retail sector to see lower growth this year, says RGM (The Malaysia Reserve, 14th January 2019)

 Consumer and business sentiments in the local retail sector are expected to moderate this year as the country’s economy will be mostly driven by private consumption and investments amid curtailed government expenditure.

 Retail Group Malaysia (RGM) projects a 4.5% growth rate for the country’s retail sector this year, slightly lower than the 4.7% forecast for last year. The consumers’ spending pattern this year will be highly dependent on the economic performance and the impact of the cost of living.

 The country’s inflation rate is expected to escalate due to the implementation of a different tax system and higher projected global oil prices. However, the floating

mechanism of the domestic fuel prices, which is expected to relieve consumers’ fuel spending, will reduce the cost of living and help in boosting retail spending.

 The government will continue to distribute monetary incentives to Malaysians in order to alleviate the financial burden and strengthen domestic demand.

 The government will launch the “Buy Malaysian Products” campaign this year with a budget of RM20 million to encourage Malaysians to support the local- made retail goods.

 In contrast, the higher minimum wage that was implemented starting from January 1, 2019, may lead to higher retail prices despite alleviating the lower- income group’s financial burden.

 The increment of the minimum wage by RM100 to RM1,100 per month nationwide will also reduce the income constraints of the lower-income group, for a monthly salary below RM3,000.

 In further boosting the domestic consumption, the government should be more focused on introducing new policies to stimulate broad-based economic activities in order to achieve a better economy across all sectors.

 Since the 14th General Election, the new government has been very busy fixing problems and reducing debts, and very few economic policies have been implemented that will stimulate broad-based economic activities.

 In the next six months, the government should introduce more new economic master plans and new policies that will stimulate broad-based economic activities as a higher GDP will lead to higher take-home pays and higher retail spending subsequently.

Data drives retailers (The Star, 17th January 2019)

 Retailers must become increasingly data-driven in order to remain competitive.

 Data science can provide fundamental business value by helping companies make better decisions. This translates to better customer experience, improvements in planning, logistics, and pricing, and a more accurate picture of customer value.

 The key challenge for retailers is to capture the right data, extract insights and value from it, and take timely action.

Building value for a grocer brand (The Star, 14th January 2019)

 Building a relationship with its customers remains key for Village Grocer, says The Food Purveyor Sdn Bhd.

 The Food Purveyor is the holding company for the Village Grocer, Ben’s Independent Grocer and Pasaraya OTK chains.

 As the premium grocer continues to expand, getting the “people” element right will ensure that the Village Grocer brand stands out in the segment.

 In recent years, Village Grocer has been refurbishing its outlets with a tweak in store layout so that customers can have a better shopping experience. Its aisles are wider, meats are better presented and product offering expanded. At its flagship outlet in Bangsar Village, some of its popular food stations have been moved out of the supermarket into an opposite lot – aptly named Village Pantry – to provide customers with more space to enjoy some downtime or for a meal.

 Grocery shopping has become somewhat a destination where families go to on weekends.

 Providing good customer service is just as important.

 The company has also introduced its digital loyalty programme, BITES, which can be used across the group’s stores. The programme has proven to be a good platform for the brand to stay connected to customers and understand what they are looking for.

 Modern trade has been growing rapidly in Malaysia over the past decade. The segment enjoyed growth of 5.3% from 2011 to 2016 and was estimated to be worth RM8.4 billion in 2016. It is projected to hit RM9.3 billion in 2020 thanks to increasing urbanisation, rising affluence and change of lifestyle, particularly among millennials.

 There is still a lot of space for growth in the area. And given that it is an established brand, developers of new malls often seek Village Grocer out for tenancy.

 Village Grocer currently has 15 outlets with another four planned for the immediate term.

Pizza Hut Malaysia set to open its 400th store (Bernama, 16th January 2019)

 Pizza Hut Malaysia will be opening its 400th store in Peninsula Malaysia within the first quarter this year, through planned expansion of 15 new stores in 2019.

 According to QSR Brands (M) Holdings Bhd, Pizza Hut is poised to achieve a stronger year, as it strengthens its presence in the country from 393 stores at present.

 The fund for the expansion plan will partly come from the initial public offering (IPO) raised for the upcoming listing of QSR Brand in the Main Board of Bursa Malaysia, expected in the next quarter this year.

 QSR Brands is the operator of Pizza Hut and KFC restaurants in Malaysia.

 The cost to open one store is between RM600,000 and RM1.2 million, depending on the value of the property and agreement.

(C) COMMERCIAL / OFFICE

Mammoth Empire: Tower H tenanted, including by Grab (New Straits Times, 17th January 2019)

 There is a new twist in issues relating to an office tower at Empire City Damansara, an integrated lifestyle commercial development by Mammoth Empire Holdings Sdn Bhd (MEH).

 It had been reported that Tower H of Empire City posed safety hazards despite having a Certificate of Fitness. However, MEH group said the allegations were baseless.

 The 20-storey building is currently tenanted. MEH is occupying four floors. Grab has taken up four floors and has been operating there since 2017.

 A report by Campaign Asia-Pacific had alleged that Tower H had several issues that are believed to have been raised mainly by employees of WPP, one of the building’s tenants.

 WPP had signed a tenancy agreement with MEH on July 1 2018 to take up 10 floors in Tower H for five terms of three years each. In the same month and August, WPP moved 13 agencies and agency groups including Hill+Knowlton Strategies, Group M, Ogilvy, Geometry Malaysia, Wunderman and J Walter Thompson to Tower H.

 WPP and MEH are reportedly in constant communication to upgrade the building for the safety and comfort of the occupants.

 Empire City Damansara is the flagship and largest mixed development by MEH in , .

 The RM5 billion project will have 11 towers upon its full completion which is expected before end-2020.

 Eight towers had been completed. The remaining three towers will be completed between the second and fourth quarter of next year.

Colony@Mutiara Damansara marks Selangor debut of Colony (EdgeProp.my, 15th January 2019)

 Luxury co-working space and serviced office provider Colony Space Asia Sdn Bhd has announced its expansion into Mutiara Damansara, Selangor, marking its fifth location in the country.

 The upcoming new space dubbed Colony @Mutiara Damansara will be housed within KYM Tower spanning 19,700 sq ft across two floors, and can accommodate over 250 people.

 KYM Tower is a Grade A and Green Building Index Gold certified building with MSC status.

 Colony @Mutiara Damansara will bring Colony’s footprint to over 100,000 sq ft of space in Malaysia. Prior to this, Colony announced that the 35,000 sq ft Colony @Star Boulevard KLCC will be open in April 2019.

 Slated to open its doors in June 2019, Colony @Mutiara Damansara marks the group’s first foray into the state of Selangor. It will be connected to neighbouring lifestyle malls, including The Curve , IPC Shopping Centre and IKEA Damansara via an elevated walkway, which will also link the co-working space to the MRT rail network.

All-female co-working space HelloHERA opens in KL (The Malay Mail, 17th January 2019)

 An all-women co-working space has opened in the city centre, priding itself on its ability to provide a safe working environment for women.

 Launched on January 3 at Q Sentral, the small and simple-looking boutique set- up exudes an aura similar to one’s own home, and clients who are working mothers are also allowed to bring their children.

 Although HelloHERA is dedicated to women, men are allowed to work in the space.

Owner of project told to buy Medan Imbi land or lose right to project (The Star, 16th January 2019)

 The owner of the buildings built on government land in Medan Imbi have been given an ultimatum to buy the land or the title will revert to the rightful owners.

 According to the Federal Territories Minister, abuse of power in the previous administration enabled a company to build a six-storey office building and a restaurant on two plots of land.

 In March 25, 2015 the company applied to rent Lot 568 from the Federal Lands and Mines office for eight years to build a two-storey building, but it was rejected.

 DBKL, however, issued a development order (DO) in June 17, 2016 for a two- storey restaurant. The One Stop Centre approved the building of a six-storey building in September 23, 2016.

 An amended DO to build the six-storey building was issued on December 15, 2016 and the building was completed on February 8 last year.

 For Lot 716, the company proposed to upgrade the green area and build a durian kiosk in March 14, 2016.

 On June 10 the same year, DBKL gave planning permission to the company for a temporary kiosk. Once completed, the company managed and rented the place for RM16,000 per month.

Medan Imbi building owner identified (The Edge Financial Daily, 18th January 2019)

 The owner of the controversial building built on two plots of government land in Medan Imbi, Bukit Bintang has been identified as Willowcrest Management Sdn Bhd.

 A search on the Companies Commission Malaysia (SSM) website showed that Willowcrest is 99%-owned by businessman Datuk Seri Tee Yam @ Koo Tee Yam, while the remaining 1% is held by Eco Habitat Sdn Bhd.

 The office building has six levels, with Willowcrest listed as one of its tenants. Other tenants include Excellent Epitome Sdn Bhd and Orion Tower Sdn Bhd.

 Another property development company linked to Tee Yam is Viva Impian Sdn Bhd, which is developing a mixed-use, integrated development called Viva Impian Cheras. SSM’s data revealed that Viva Impian is 99%-owned by Tee Yam and the rest by Eco Habitat.

 Eco Habitat is one of the shareholders of Gabungan Tiasa Sdn Bhd with a 33.33% stake. Gabungan Tiasa is involved in the redevelopment of in Jalan Pudu, Kuala Lumpur.

(D) MIXED DEVELOPMENT

Mah Sing recognised by Malaysia Book of Records (New Straits Times, 17th January 2019)

 M CITY, one of the iconic developments by Mah Sing Group Bhd, has received a recognition from the Malaysia Book of Records for housing the “First Multi-Level Thematic Suspended Gardens in Malaysia”.

 The gardens are defined by a variation of themes such as Lagoon Park at Level 7, Bamboo Groove at Level 11, Spring Park at Level 17, Altitude Sky Club at Level 23, Tropical Sanctuary at Level 29 and Sky Garden at Level 35 rooftop.

 Each of the suspended gardens was designed to follow a unique theme, which is part of M City’s garden city living concept. All the gardens have their own unique ambience which offers leisure alternatives to residents with various preferences.

 Located at the corner of Jalan Ampang, M City is a freehold integrated development spanning 2.02 hectares of land and has a gross development value (GDV) of RM1.6 billion.

 It comprises three towers with a total of 1,585 units, made up of boutique retail shops, small-office-home-offices, serviced apartments and Sky Residences.

Vanke to focus on Jalan Raja Chulan mixed-use development project this year (The Malaysian Reserve, 14th January 2019)

 Vanke Holdings (M) Sdn Bhd is expected to focus on its mixed-use development project on its Jalan Raja Chulan prime tract this year.

 The previously reported 80-storey project is an old plan. The project is still in planning phase as the company has yet to obtain approval from the relevant authorities.

 The company targets to launch in phases — the first being a residential development, and retail coming in close as the second. The rest will be according to the market’s demand.

 The project’s gross development value (GDV) is currently unknown, as it is subject to authorities’ approval.

 Preliminary industry estimates put the project’s GDV at between RM1.5 billion and RM2.5 billion — which was subject to vary depending on various factors such as the target market, launch timing and plot ratio.

 The prime tract owned by Vanke Holdings is situated close to the Bukit Nanas heritage zone and forest reserve. It is made up of 16 lots and shaped oddly, surrounding a parcel of land which belongs to another owner.

 Vanke Holdings is a subsidiary of Shenzen-based property developer China Vanke Co Ltd, which was established in June 2017.

 China Vanke is listed in the Hong Kong Stock Exchange and ranked 332nd in the Fortune Global 500 last year, posting US$35.12 million (RM143.79 million) in revenue.

HCK takes over Empire Remix 2 project, to be rebranded as education city (The Edge Financial Daily, 16th January 2019)

 HCK Capital Group Bhd is taking over the development of the Empire Remix 2 project in USJ 1, from Mammoth Empire Holding Sdn Bhd’s (MEH) unit, True Renaissance Development Sdn Bhd (TRDSB), and will brand it as an integrated education city development.

 The project has seen delays since it was first launched in 2012.

 Empire Remix 2 is part of an integrated commercial development together with Empire Remix, which would have a combined gross development value (GDV) of RM1 billion.

 Empire Remix 2 comprises one 12-storey tower (A), three 28-storey towers (B, C and D), as well as two floors or associated units and four basement floors.

 HCK, via its indirectly wholly-owned units, had already purchased towers A and C from TRDSB in 2012.

 HCK’s indirect wholly-owned unit, HCK Builders Sdn Bhd, yesterday signed a joint-venture (JV) agreement with landowner Projek Muara Sdn Bhd and its unit Dergahayu Sdn Bhd, to enable HCK to continue and complete the development.

 This was after TRDSB, the original developer, was granted the release from the landowner from its obligations to complete the project.

 It added that the total development revenue, costs and expected profits in relation to the development “have yet to be ascertained” as the detailed development plan and the proposed amendments are pending finalisation.

 All the revenue, including receivables from units already sold, will also be retained by HCK.

 Previous reports estimated that the new investors will have to fork out at least RM350 million to continue the project.

 It was previously reported that MEH has seen hiccups in other development projects such as the RM5 billion Empire City Damansara (ECD1) launched in 2011.

 The group, currently seeking RM800 million to pare debts, also plans to bring in partners or carve out 26.3 hectares (65 acres) across ECD1, which were initially meant for another RM7 billion mega project, dubbed Empire City Damansara 2.

Three years on, Kg Baru redevelopment plan remains challenging for KBDC (The Malaysian Reserve, 16th January 2019)

 When the “Kampung (Kg) Baru Detailed Development Master Plan” (PITPKB) was launched in 2015, there were huge expectations that the plan would transform the Malay enclave into a modern 21st-century Kampung Melayu.

 The masterplan aims to include up to 17,500 residential units of development, which could accommodate up to 77,000 people within the 121.8 hectares of land. High-rise condominium and mega projects are expected to house the area. In its original plan, the previous aimed to complete the whole development by 2035.

 Divided into four areas, the prime land in Kg Baru is centred around the 89- hectare Malay Agriculture Settlement (MAS) plot. The remaining three zones comprise of the flats and Kg Sungai Baru areas, Social Security Organisation (Socso) office zone and the Jalan Chow Kit area.

 The project prime mover, Kg Baru Development Corp (KBDC) inherited the same set of problems faced by the past and current governments: unresolved issues of ownership, land titles and price valuations.

 Of the total 121.8 hectares, 32.4 hectares of the land sit outside the MAS plot, which has a different set of development rules and priority set for KBDC.

 The three residential areas are labelled as “Jalan Tun Razak” with 252 units of flats (2.4 hectares), the “17-storey” with 284 units (0.67 hectare) and the 5.1- hectare Kg Sungai Baru area which houses 264 units of flats, as well as 96 units of terraces. The remaining land plot sits on the Jalan Chow Kit area and the Socso office zone.

 KBDC will have to “do away” with the pockets of land at Jalan Chow Kit and the Socso office in Jalan Tun Razak, as they are not highly critical to be developed as detailed in the PITPKB programme.

 KBDC is pushing for the redevelopment of Kg Sungai Baru housing areas as most of the landowners are easier to be identified.

 The 54-storey condominium project by Suez Domain Sdn Bhd, if materialised, is expected to be the catalyst for the MAS land area resolution. The developer is working to get at least 80% of the total landowners agree to the project.

 Currently, houses at Kg Sungai Baru are valued between RM100,000 (flats) and RM300,000 (landed), while each unit of proposed condominium is valued at more than RM1 million.

 A new thorough survey is being conducted with Kg Baru residents. As of last December, KBDC has gathered more than 20% of the total of 5,697 survey forms distributed to the MAS landlords, as well as the Kg Sungai Baru houseowners.

 The survey, among others, are aimed to gauge the sentiment of the Malays in loosening up the Kg Baru “MAS” status to allow non-Malay buyers to own properties there. The study is expected to be presented before month-end.

Big plans for Gurney foreshore (The Star, 17th January 2019)

 Ewein Bhd is expected to roll out several developments at the Gurney Drive foreshore following the success of its RM800 million City of Dreams (COD) serviced apartments in Tanjung Tokong, Penang.

 A single-block serviced apartment, an international brand hotel, a university and office towers are among some of the projects that will be carried out on the reclaimed land.

 Priority will be the serviced apartment that is expected to take off next year.

 To be known as COD 2, the project with a gross development value (GDV) of RM1.2 billion will be built on a 1.8-hectare site fronting G Hotel.

 Foreigners are expected to snap up 30% of COD 2.

 The project will feature rock climbing, wave pool, music recording room with all the musical instruments. There will be a cafe-type setting with library and laundry services.

 Ewein’s subsidiary, Ewein Zenith Sdn Bhd, was awarded Entry Point Project 10 (EPP 10) under the Economic Transformation Programme by the Domestic Trade, Cooperatives and Consumerism Ministry.

 EPP 10 is for the development of a wellness resort city, which will be located on the City of Dreams development, which takes up some 20.2 hectares of land.

 The project is located on the reclaimed land (Gurney Drive foreshore) given to Consortium Zenith Constructions Sdn Bhd by the Penang Government in return for building the RM6.3 billion undersea tunnel and three road bypasses.

 These projects will have a gross development value (GDV) of RM15 billion over the next 10 years.

 Ewein Zenith has been given the exclusive right to purchase the parcels of land owned by Consortium Zenith over a period of 10 years.

 On the hotel, an announcement on its partner will be made soon.

 As for the university, the company is still identifying the right partner.

 Meanwhile, COD, a luxury sea-front development overlooking Gurney Drive, has seen a take-up rate of more than 80%. Between 25% and 30% of the buyers are foreigners from China, Taiwan, Hong Kong, Singapore, Indonesia, Thailand and European countries.

 Construction has reached 15th floor and the units are targeted to hand over by this year.

 The project is strategically designed in such a way that all residential units have sea-views, with sizes ranging from 1,097 sq ft to 1,335 sq ft.

 Residents also have access to a wide range of luxury facilities such as private lift, yacht services, Rolls Royce limousine, private bowling alley, private cinema, sky lounge, sky pool and many more.

 All in all, there are more than 60 world-class facilities over 120,000 sq ft in COD.

 COD is being sold at RM1,350 per sq ft.

RAC: Best time to redevelop rail land (New Straits Times, 17th January 2019)

 The KTM Bhd (KTMB) quarters in Bangsar, Kuala Lumpur, will finally undergo redevelopment and the new project will have an estimated gross development value (GDV) of RM3 billion.

 According to Railway Assets Corp (RAC), the corporation is planning a mixed- used transit-oriented development (TOD) on the 5.26-hectare freehold land.

 Currently occupying the land are quarters that were home to over 1,000 KTM Bhd workers.

 RAC will call for the best proposals from developers this year as it plans to maximise the land use. It is looking at building two hotels, office towers, a retail mall and affordable houses that include apartments. The affordable homes will sell from RM350,000.

 The redevelopment may take about 10 years for full completion and is expected to start this year or in 2020.

 The Bangsar land is part of the nine parcels of land that RAC has identified for redevelopment, mostly to be based on the TOD concept.

 RAC has experience in TOD developments with the completion of a project with SP Setia Bhd for the Abdullah Hukum light rail transit station in KL Eco City.

 RAC also has started a TOD venture with MKH Bhd for Kajang 2, a new township located in the vicinity of Kajang, Selangor.

 RAC owns 15,378 hectares of land along the KTM railways and in prime areas. Some 80 per cent of the land has been used to build 1,650km of tracks from

Padang Besar to Baru and Tumpat to Gemas, 170 stations, 16 depots and warehouses.

 Only 20 per cent comprising railway reserve and title land has potential to be developed.

 RAC can develop the reserve land and is working with the respective states to get the title and develop the land along the tracks.

 RAC plans to undertake TODs and transit supportive developments (TSD) to enable the corporation to re-invest in the railway industry and improve railway stations and tracks, as well as help KTMB buy rolling stock and do maintenance for the existing assets.

 The corporation owns assets worth RM17.09 billion. They include land, infrastructure, buildings, rolling stock, office equipment, machinery and ticketing system.

 One of the most exciting projects for RAC is the land next to Bank Negara Malaysia which will be developed via a joint venture with developers.

 RAC has a 2.8-hectare plot adjacent to the central bank and it plans to build office towers, institutions and training centres. The project will take about five years to be fully developed. The development has an estimated GDV of about RM1.5 billion.

 RAC will also develop a 1.2-hectare site in Ampang, Kuala Lumpur, and 5.7 hectares in Bukit Mertajam in Seberang Prai, Penang, in partnership with developers.  The Ampang land is located behind Gleneagles Kuala Lumpur and will have a standalone development. There are plans to develop two towers with a plot ratio of seven. There will be more than 1,000 units of apartments and the expected GDV is around RM1.5 billion.  In Bukit Mertajam, RAC is planning a TOD that consists of office towers, hotels, retail and apartments. The project will have a GDV of RM1.5 billion and take between five and 10 years to be fully developed.

 RAC owns 5.3 hectares of land in Batu 3, Shah Alam, and is looking at a TSD (transit-supportive development) based project. The land, sandwiched between Jaya and Batu 3 rail stations, has high potential for apartments and commercial (offerings) but the focus will be on residential development. The project is expected to take three to five years to develop with an estimated GDV of RM500 million.

Transit-oriented plan for Kempas (NST Property, 17th January 2019)

 Railway Assets Corp (RAC) has identified nine parcels of railway land for transit- oriented development (TOD) and transit-supportive development (TSD).

 RAC, which is a corporation under the Transport Ministry, hopes to start the projects within the next two to four years.

 Among the biggest developments that the corporation will embark on is in Kempas, Johor.

 Kempas, a suburb in Johor Baru, is a huge town area on the way to Senai.

 One of the biggest developers in Kempas is IOI Properties Group Bhd, which is developing Taman Kempas Utama via subsidiary Wealthy Growth Sdn Bhd.

 Taman Kempas Utama, located within the Kempas-Tebrau growth corridor, features lifestyle amenities such as a 1.54-hectare town park, gated-and-guarded residential communities and matured commercial hubs.

 RAC owns about 50.59 hectares of land in Kempas and plans to develop a township that may take 15 to 20 years to be fully completed. It is planning to develop a project, which may be called Kempas Sentral - a replica of the KL Sentral integrated transport hub. The proposed development may be a combination of TOD and TSD concept.

(E) INDUSTRIAL / LOGISTICS / PLANTATION

Chin Well’s Shah Alam warehouse to start operations this year (The Star, 14th January 2019)

 Chin Well Holdings Bhd is diversifying into the warehousing business as the company makes plans for its new RM12 million automated warehouse in Shah Alam to start operations this year.

 The warehouse, with a built-up area of 25,479 sq ft and 12,920 storage areas, will generate long-term recurring rental income for the group. The facility provides one-stop warehousing services.

 Customers in the central region, for example, can use it to store their steel hardware products.

 With a net cash of RM44.58 million, the group will acquire suitable business opportunities in the near future. It is working to raise revenue from its do-it- yourself (DIY) fasteners to contribute 20% to group’s revenue in 2020 from the current 10%.

 The on-going China-US trade war provides opportunities for the group to expand in the US. The move by the US to impose tariff on Chinese steel products gave Chin Well opportunities to further strengthen its position in the US market.

 Currently, the group sends 30 containers of DIY fasteners to the US every month. The figure will gradually increase in the 2020 financial year starting in July.

 There are potential customers in Germany, France, Australia, and New Zealand.

NTPM investing US$30mil to expand in M'sia, Vietnam (The Star, 14th January 2019)

 NTPM Holdings Bhd is investing over US$30 million to expand its tissue paper production facilities in Malaysia and Vietnam for the 2019 financial year.  The bulk of the budget, about two thirds, went towards the expansion of the Vietnam facility. It is expected to commence production in May.

 In Malaysia, the group is expanding the Nibong Tebal facility. It now has the capacity to produce up to 110,000 tonnes per year compared with 90,000 tonnes previously.

 In Bentong, the group has another plant with the capacity to produce 10,000 tonnes of tissue paper yearly.

 Once the expansion in Vietnam is completed, the group would have the capacity to produce 170,000 tonnes of tissue paper annually, with an estimated value of RM900 million.

Wellcall plans composite hose plant with Trelleborg (The Star, 15th January 2019)

 Industrial rubber hose manufacturer Wellcall Holdings Bhd has entered into a joint venture agreement with Swedish Trelleborg Holding AB to produce and market composite hose and fittings.

 The composite hose manufacturing plant, which shall be located within the vicinity of Wellcall’s existing plant, is targeted for commissioning by end-2019, with two production lines and auxiliary equipment.

 The joint venture company will have an initial issued and paid up capital of US$2.2 million (RM9.2 million). Trelleborg shall own a 51% equity in the joint venture company while Wellcall will own the remaining 49% equity.

Uni Wall Aps expands presence in Malaysia, Australia (The Star / Bernama, 15th January 2019)

 Bursa Malaysia's Leap Market debutant, Uni Wall APS Holdings Bhd, is progressively expanding its presence in Malaysia and Australia.

 The company had tendered projects worth about RM1.4 billion recently.

 The listing exercise had successfully raised RM7.31 million, with RM3.50 million to be used for the setting up of new factory on a vacant land adjacent to its existing factory and head office in Semenyih.

 The company expects the fabrication capacity to be increased to about 10 hectares from about 4.9 hectares of panels per month upon its commission by the first quarter of 2019.

HPI Resources launches second plant worth RM45m (The Star / Bernama, 17th January 2019)

 HPI Resources Bhd's subsidiary, Harta Packaging Industries (Perak) Sdn Bhd (Harta Perak) has launched its second plant, Harta Perak Plant 2 (HP2) at the Parit Buntar Industrial area.

 The second plant, worth RM45 million, is equipped with the newest state-of-the- art corrugated machine incorporating German web precision technologies and packaging machine. It will double HPI's production capacity in the northern region to 66,000 tonnes annually from 36,000 tonnes at present.

 Harta Perak has been major producer of triple wall sheets and heavy-duty boxes in Malaysia since 2012. But now with the HP2, production will be further enhanced by its digital printing capabilities and state-of-the-art box making equipment.

 HP1 is located less than one kilometre from HP2 and is equipped with state-of- the-art machines that are able to produce triple wall corrugated board or boxes used in solar, automotive, petrochemical and electronics industries, on top of the conventional single and double wall corrugated sheet boards and boxes.

HSL gets digital village job (The Star, 14th January 2019)

 Hock Seng Lee Bhd has been appointed as the contractor for the RM27 million digital village project at Sama Jaya High Tech Park in Kuching.

 The construction and marine engineering company is expected to commence ground works this month. The developer, Tabung Ekonomi Gagasan Anak Bumiputera Sarawak (Tegas), has already handed over the project site to Hock Seng Lee.

 Tegas will work closely with the Sarawak Multimedia Authority (SMA) to ensure timely delivery of the project. The high-tech park is home to electronic manufacturing plants owned by companies from Japan, the US, South Korea, Europe and China.

 The digital village project is part of the Sarawak Digital Economy Strategy (2018- 2025), which was allocated a RM1 billion funding by the state government to develop its infrastructure and programmes. It was established to facilitate technology transfer and commercialisation and to accelerate maturity among start-ups through a global accelerator partnership.

 Initiatives at the digital village on completion include “Launch Sarawak” – a programme to provide a transformative pathway to support innovation, intellectual property creation and spin-offs as well as “Scale Up” programmes and an open lab.

 The Sarawak government via SMA plans to set up “digital landing pads” overseas to promote the state as a destination for high-tech innovation and entrepreneurship, like Silicon Valley or Shanghai, and also to encourage both domestic and foreign investments.

 As a precursor to the development of the digital village, Sarawak has set up digital innovation hubs in Kuching, Miri and Bintulu. The hubs offer access to co- working space and shared amenities, funding opportunities and facilitation, incubation and acceleration programme as well as an entrepreneur-friendly ecosystem.

 Under the Sarawak digital economy strategy, the state government plans to build and commission another 600 telecommunication towers across Sarawak. The tendering process for the proposed tower projects, which was open to local network facility providers, is completed.

 Sacofa Sdn Bhd, which is a 50%-owned associate of Cahya Mata Sarawak Bhd (CMS), a Sarawak-based telecommunication infrastructure services provider,

won a 20-year exclusive rights contract to build, manage, lease and maintain telecommunication towers in Sarawak. The contract ends in 2022.

 In 2017, Sacofa “rolled out” 270 such towers, bringing the total number of telecommunication towers operational in Sarawak to over 1,300, with more than 11,000km of fibre optic cabling in place.

 The locations for the first batch of additional 300 towers were chosen based on the critical needs of the areas and their abilities to act as a collection and intermediary point to other towers in rural Sarawak.

 The second batch of 300 towers project will be built to achieve mobile coverage of populated areas in the state. The construction of new towers in the rural areas will help to address the rural-urban digital divide.

No near-term rerating catalysts expected for CPO price (The Edge Financial Daily, 14th January 2019)

 In December 2018, Malaysia’s palm oil inventory reached a record high of 3.2 million tonnes. This translates into an increase of +17.7% year-on-year (y-o-y). The increase in the inventory level was mainly attributable to lower export. Note that December 2018 export dropped at a higher pace of -3.1% y-o-y compared with production (-1.4% y-o-y).

 On a month-on-month (m-o-m) comparison, export grew at a slower pace of +6.9% month-on-month (m-o-m) as a slight recovery in export was seen (+0.6% m-o-m) while production slowed down marginally (-2% m-o-m).

 Meanwhile, Indonesia’s inventory level may also attain a new high as crude palm oil (CPO) output is expected to climb by +13.1% y-o-y to 43 million tonnes from 38 million tonnes in 2017.

 The seemingly oversupply may continue to add downward pressure on CPO price given the current uncertain market and trade environment.

 On a year-over-year basis, export shrunk by -3.1% y-o-y to 1.4 million tonnes. This was mainly attributable to lower export from the European Union (-55% y-o- y), Iran (-95.5% y-o-y), Saudi Arabia (-68.7% y-o-y), Egypt (-95.6% y-o-y) and South Africa (-97.7% y-o-y). On a m-o-m basis, export to key destinations namely China (+56% m-o-m) and India (+17% m-o-m). We view that the improvement in demand from China was mainly due to festive purchase.

 Moving forward, China’s import of CPO is expected to continue to increase as there appears to be recovery in demand as its domestic crushers process fewer soybeans due to the spread of African swine fever.

 Meanwhile, India’s export growth would sustain given the import duty cut on CPO for Malaysia from 44% to 40%.

 Production for December 2018 was down by -1.4% y-o-y to 1.8 million tonnes. This was mainly impacted by lower production from Johor (-10.1% y-o-y), Negeri Sembilan (-13.8%) and Pahang (-4%). Palm oil production growth y-o-y is positive in Sarawak (+1.24% y-o-y to 5.1 million tonnes) whereas in Peninsular

Malaysia (-3.6% y-o-y to 10.2 tonnes) and Sabah (down -1.5% y-o-y to 5.14 million tonnes) were in negative territory.

 The inventory levels of palm oil in Malaysia and Indonesia remain elevated.

 Coupled with anticipated higher soybean supply and uncertainties of external developments, no significant improvement in CPO price is expected. Nonetheless, there appears to be some positive signs in export demand stemming from existing key importers such as China and India as well as new markets. Meanwhile, local producers are thought to be facing a tough cost structure from the Malaysian Palm Oil Board price stabilisation tax and additional certification requirement cost.

 Given the less favourable environment, the CPO target price for 2019 is at RM2,280 per tonne.

MPOB sees CPO prices above RM2,500 a tonne this year (theedgemarkets.com, 17th January 2019)

 Malaysian Palm Oil Board (MPOB) expects a turnaround in the palm oil industry in 2019 with the average price of crude palm oil (CPO) recovering to a level above RM2,500 a tonne.

 CPO production is also expected to improve to over 20 million tonnes this year, compared to 19.5 million tonnes in 2018.

 The performance of the country's palm oil industry experienced a bleak situation in 2018 following the decline in production and CPO prices. This year, it is expected that the performance of the Malaysian palm oil industry will improve.

 MPOB has developed technologies — focusing on innovative value-added products such as palm phytonutrients and oleochemicals derivatives, which will help enhance the value of palm products and de-commoditise palm oil — to expand into mature markets such as Europe and America.

 The board's regional offices will continue to work with authorities and industry players overseas to increase uptake of palm oil usage in both the food and non- food sectors.

IJM Plantations’ 2019 FFB production outlook sturdy (The Edge Financial Daily, 17th January 2019)

 The management of IJM Plantations Bhd (IJMP) does not expect any supply disruptions in the fourth quarter of financial year 2019 (4QFY19), but has noted the risk of encountering the same problem again if production picks up in the second half of calendar year 2019 (2HCY19).

 Production in the Sugut region, which accounts for about two-thirds of Sabah’s output, still saw some lagged impact of El Nino in FY19.

 Management expects production in the region to fully recover by the middle of FY20, and has conservatively guided for a fresh fruit bunch (FFB) yield of 20 tonnes/ha for Malaysia in FY20 (versus around 19 tonnes/ha in FY19).

 For Indonesia, FFB yield is expected to improve from approximately 17 tonnes/ha in FY19 to 20 tonnes/ha in FY20. Overall, this translates into a 23% growth in FFB output to 1.22 million tonnes in FY20.

 In FY20, approximately 1,000 hectares of planted acreage is projected to come into maturity.

 As Indonesia’s production yield improves, unit cost of production is expected to ease from RM2,100 to RM2,200 per tonne in FY19 to RM1,900 per tonne in FY20.

 On the other hand, unit cost in Malaysia is likely to edge up from RM1,800 per tonne in FY19 to RM1,900 per tonne in FY20 due to higher fertiliser cost and full- year impact of a minimum wage increase — which raises labour cost by an estimated RM4 million in FY20.

 Overall, the group’s blended cost of production is projected to drop by 5% from approximately RM2,000 per tonne in FY19 to RM1,900 per tonne in FY20.

 Management believes RM2,400 per tonne is a realistic crude palm oil (CPO) price target for CY19. This represents a 7% improvement from CY18, in line with our forecast. It is estimated that every RM100 per tonne change in CPO prices would translate into an earnings impact of RM20 million in FY20.

Prinsiptek in JV to build oil palm mill for RM2.126b (NST Business, 15th January 2019)

 Prinsiptek Corp Bhd has roped in AA Strategic Marketing Inc Sdn Bhd and TTSJ Trading Sdn Bhd to build an oil palm mill and refinery in Sabah for RM2.126 billion.

 Prinsiptek’s wholly-owned Tanah Perangsang Sdn Bhd has signed a joint venture agreement with the other two companies for the construction.

 The joint venture will strengthen its core competencies in the construction industry as well as income stream to its business in the long run.

 The proposed development and construction shall be completed within five years from the date of all necessary approval of the relevant authorities is obtained.

FGV to sell RM350m worth of non-core businesses, assets (theedgemarkets.com, 14th January 2019)

 FGV Holdings Bhd has identified several non-core businesses and assets worth RM350 million for disposal.

 FGV has also identified several areas for the development of strategic alliances or partnerships to capitalise on its strengths and plug capacity gaps where there are any.

 Operational processes are being improved under a transformation plan. These include improvements such as intensifying crop recovery, cost reduction in the estates, implementing mechanisation and enhancements of agricultural practices.

 FGV’s fresh fruit bunches (FFB) yield for 2018 is forecast at 16.9 tonnes per hectare, whereas the industry average for Malaysia is 19 tonnes per hectare. In 2019, it expects to close this gap with yields at 19.4 tonnes per hectare.

 For 2018, FGV is forecasting average crude palm oil (CPO) production cost (ex- mill) at RM1,666 per tonne. In 2019, it is targeting average CPO production cost (ex-mill) at RM1,469 per tonne.

(F) INVESTMENT

Selangor eyes RM7.5bil investments this year (The Star, 15th January 2019)

 Selangor state expected to secure RM7.5 billion worth of approved investments this year.

 As at September last year, approved investments into Selangor stood at RM8.2 billion, exceeding its expectations of RM7 billion for 2018.

Penang records RM3.8b investments between Jap-Sept 2018 (Bernama, 14th January 2019)

 Penang recorded investments of RM3.83 billion in the first nine months of 2018, comprising RM2.16 billion in foreign direct investment (FDI) and domestic investment of RM1.67 billion.

 According to the Malaysian Investment Development Authority (MIDA), Penang registered the highest approved manufacturing FDI among the states in Malaysia at RM8.5 billion since 2017.

 Penang has grown tremendously from its early days as a colonial trading port to becoming the third largest economy in terms of per capita income among the states and federal territories of Malaysia.

 In 2017, Penang's gross domestic product (GDP) per capita surpassed the national level by 18 per cent, amounting to almost RM50,000.

(G) CORPORATE

AQRS on the up and up? (EdgeProp.my, 19th January 2019)

 Gabungan AQRS Bhd says that its E'Island affordable housing project in , Selangor and The Peak, a high-rise residential project in Johor Bahru, will generate RM641 million in operating cash flow over the next four years.

 The affordable housing project E'Island has received a good response. It has received over 2,000 registrations for 1,140 units available. However, sales of The Peak are expected to be lower as it is a high-rise, high-end residential project in Johor Bahru. This is a market segment that is not performing well, due to oversupply.

 The company is being realistic for its Johor development, expecting a low take- up rate of about 15% in 2019, and gradually increasing in the coming years.

 AQRS will not be buying land but will be partnering with landowners for future projects. The group has almost RM1 billion in gross development value (GDV) and targets to sell RM500 million worth of properties this year.

 The 1.14 billion contract from Prasana Malaysia Bhd for construction and completion of guideways, four stations and park-and-ride facilities for LRT Line has caused AQRS to lose market value, due to the review of the LRT 3 project by the Ministry of Finance. Some RM150 million worth of works has been completed.

 AQRS is also developing the One Jesselton Waterfront mixed-use project in which is part of the Kota Kinabalu Port redevelopment project being undertaken by Suria Capital, where a new central business district will be developed.

Berjaya Corp mulls asset sales abroad (New Straits Times, 18th January 2019)

 Berjaya Corp Bhd (BCorp) is looking at selling selected assets especially hotels abroad to fund various projects in the pipeline.

 BCorp reportedly had planned to carve out its group hotel business from Berjaya Land Bhd and list it in Singapore Stock Exchange. The initiative would involve several Berjaya Group’s hotels abroad such as Japan. The group also owns hotels in Vietnam, the UK, the Philippines, Seychelles and Sri Lanka.

 BCorp will most probably retain its hotels in Malaysia.

 The group will likely sell its Four Seasons Hotel and Hotel Residences Kyoto in Japan in the next three months. The divestment may be potentially worth US$400 million

 The group’s Four Seasons Hotel in Kyoto is touted as the best hotel in Kyoto and at least top three in Japan, and boasts an average rate of US$1,500 per night.

 BCorp can also use the same business template for its Four Seasons Resort and Private Residences in Okinawa, Japan, which is currently under construction.

 The group has a 100-acre land in Okinawa. Of the total, 30-acre will be used to build the Four Seasons Hotels and Residents. The remaining 70-acre will be for future development.

Newsbreak: Cycle & Carriage to sell its retail operations? (The Edge Malaysia, 14th January 2019)

 Cycle & Carriage Bintang Bhd (CCB) could exit the retail operations of Mercedes-Benz cars in Malaysia and sell the business to Mercedes-Benz Malaysia Sdn Bhd (MBM). This could be seen as CCB downsizing its business and only selling spare parts and servicing Mercedes-Benz vehicles in Malaysia.

 MBM is the brand custodian and distributor for Mercedes-Benz in Malaysia. Last month, CCB announced to Bursa Malaysia that it was selling its entire 49% stake in MBM to Daimler AG for RM66 million, after Daimler exercised a call option, which would, in turn, make MBM a wholly-owned unit of Daimler. However, the

announcement indicated that the sale would only be concluded in 12 months or at the end of this year.

 CCB is a leading Mercedes-Benz dealer group in Malaysia with 13 sales and after-sales facilities across the country to serve Mercedes-Benz customers.

 Other companies involved in the retailing of Mercedes-Benz cars are Hap Seng Star Sdn Bhd, a wholly-owned unit of Hap Seng Consolidated Bhd; NZ Wheels Sdn Bhd, which is under the Naza group; and the Swire group.

Eastland Equity aborts rights issue as proposed development project faces hiccups (theedgemarkets.com, 18th January 2019)

 Eastland Equity Bhd has aborted the rights issue with warrants it had proposed to raise funds to pay for part of its RM23.27 million land acquisition in Sabah.

 In November 2017, Eastland’s wholly-owned unit FBO Land (Setapak) Sdn Bhd (FBO) had entered into a sales and purchase agreement (SPA) with the landowner PCK Properties Sdn Bhd to acquire the 2,181 sq m land.

 At the time, PCK held a planning approval to develop two blocks of 28-storey hotels, with a total gross development value (GDV) of RM638.97 million.

 The vendor had, on January 16, 2019, informed the board that it was not able to fulfil a representation and warranty in the SPA as the planning approval for the proposed development granted by Dewan Bandaraya Kota Kinabalu has lapsed on January 9, 2019.

 Due to the uncertainty as to when the extension of the planning approval may be obtained, FBO and PCK had, January 18, 2019, entered into a deed of mutual termination to terminate the SPA in relation to the proposed acquisition.

 Meanwhile, Eastland also pointed out that based on current business condition, financial position and working capital requirements of the company, the amount it could raise from the rights issue with warrants “may not be sufficient to meet the company’s funding requirements”.

JAKS releases RM50m bank guarantee payment to Star Media (theedgemarkets.com, 16th January 2019)

 JAKS Resources Bhd has released the payment on a bank guarantee of RM50 million to Star Media Group Bhd, marking the end of a dispute between the two parties that has been ongoing for almost a year.

 Its subsidiary JAKS Island Circle Sdn Bhd (JIC) released the payment to Star Media on January 9, following the dismissal by the Federal Court of JIC’s application for leave to appeal, and after consultation with its legal advisors.

 As JAKS has 51% equity interest in JIC, RM25.5 million will be charged off in the financial statements of the group for its fourth financial quarter ended December 31, 2018.

 To recap, the bank guarantee was made as security to ensure JIC completes and delivers a 15-storey office block called Tower A on a piece of land in Section

13, Petaling Jaya, within three years from the vacant possession date or the date of approval of the plans for the tower.

 Star Media was then entangled in a legal row with JAKS after the media company attempted to make a call on the RM50 million guarantee in February last year when JAKS failed to deliver Tower A on the stipulated date.

 JAKS argued that the delays were partly caused by changes in Star Media's requirement on the tower's design, and retaliated with a suit to restrain the guarantee's release.

Kayin revises Selangor Properties privatisation offer again (theedgemarkets.com, 15th January 2019)

 Selangor Properties Bhd's (SPB) major shareholder Kayin Holdings Sdn Bhd revised its proposed selective capital reduction and repayment (SCR) offer price to RM6.30 from RM6 for each SPB share to privatise the company.

 Consequent to the SCR offer price revision, entitled shareholders will receive capital repayment of RM687.77 million which represents a cash repayment of RM6.30 for each SPB share.

 This is the second time Kayin revised its SPB SCR offer price. When the privatisation offer was first announced on October 25, 2018, Kayin had offered RM5.70 for each SPB share.

 SPB had on December 17, 2018, announced that its board received a revised proposal letter from Kayin, informing that the offer price for the SPB shares had been revised from RM5.70 to RM6.

Kerjaya Prospek gets RM155m Cyberjaya job from HCK unit (theedgemarkets.com, 17th January 2019)

 Kerjaya Prospek Group Bhd's wholly-owned subsidiary Kerjaya Prospek (M) Sdn Bhd (KPMSB) secured from Aspen Entity Sdn Bhd (AESB) a RM155 million project to construct the main building for a planned property development along Persiaran Bestari in Cyberjaya, Selangor.

 KPMSB had today accepted the letter of award from AESB, a subsidiary of HCK Capital Group Bhd.

 The contract covers the construction of main building for the proposed project comprising two (2) blocks of service suites of eleven (11) storeys each on top of a five (5) level car park podium and two (2) levels of common area and facilities and one (1) block of twenty-five (25) storey service suites on top of a five (5) level car park podium and two (2) levels of common area and facilities to be built on Lot PT 41466 Persiaran Bestari, Cyber 11, Cyberjaya, Mukim , Daerah , Selangor Darul Ehsan.

 The contract will start on March 1, 2019 for completion within 24 months from the commencement date.

 According to the group, the RM155 million project is its first contract this year, and will bring the group's total outstanding order book to approximately RM3.1 billion.

 With this new contract in hand, the group’s outstanding order book totalled approximately RM3.1 billion to-date.

Scientex seen to gain from stretch film demand, property strategy (The Edge Financial Daily, 18th January 2019)

 Under its Vision 2028 strategy, Scientex Bhd aims to hit RM10 billion in revenue by 2028 through organic and merger and acquisition-led expansion, implying a 10-year revenue compound annual growth rate (CAGR) of 14.3%.

 Under the 2028 strategy, Scientex will also be building 50,000 units of affordable homes.

 It has completed 17,000 units since 1995.

 Average utilisation rates for the manufacturing division are expected to grow to 70% to 77% over financial year 2019 to 2021 estimate (FY19-21E) from approximately 66% in FY18.

 This is due to the group progressively fills up capacity for its stretch film (US Arizona plant) and custom film biaxially-oriented polypropylene plant to cater to the increased demand for flexible plastic packaging for both the domestic and export markets.

 The group’s property launches have been very saleable, thanks to its focus on the affordable housing segment.

 In the nearer term, Scientex’s property prospects will be supported by unbilled sales of RM500 million as at 1QFY19.

 Furthermore, its property prospects will be supported by RM1 billion worth of project launches coming in FY19 (FY18 project launches of RM1.2 billion).

 Scientex’s gross development value (GDV) of RM13.5 billion is expected to sustain the group over the next ten years.

Sunway’s property division targets RM1.3bil sales for FY19 (The Star, 15th January 2019)

 Sunway Bhd, which has lined up several property launches this year, is targeting new sales of RM1.3 billion for its property division for the financial year 2019 (FY19).

 The new launches are expected to have a combined gross development value (GDV) of RM2 billion.

 However, the target of RM1.3 billion is 28% lower than FY18’s actual new sales of RM1.8 billion. The new sales of RM1.8 billion chalked up in 2018 exceeded its target of RM1.7 billion.

 Sunway has previously launched several projects in 2018 with a combined gross development value (GDV) of RM2.1 billion.

 The projects launched were Rivercove Residences EC in Singapore (GDV RM590 million), Sunway GEOLake (GDV RM480 million), Sunway Citrine Lakehomes Phase 2, Sunway Iskandar (GDV RM80 million) Sunway Gardens, Tianjin, China (GDV RM600 million) and Sunway Velocity TWO Phase 1 (GDV RM320 million).

 In the central region, projects that slated for launch this year are Sunway Velocity TWO Phase 2 (GDV RM300 million), Sunway Avila (GDV RM230 million) and Sunway GEOLake Residences (GDV RM100 million). In Ipoh, there is Sunway Onsen Suites (GDV RM120 million).

 In the southern region, Sunway will roll out Sunway Citrine Lakehomes Phase 3, Iskandar (GDV RM100 million), Sunway Lenang Heights (GDV RM150 million), and the Brookvale, Clementi in Singapore (GDV RM1 billion).

TH completes disposal of TRX land at a premium (New Straits Times, 15th January 2019)

 Lembaga Tabung Haji (TH) has sold its Tun Razak Exchange (TRX) land back to the government at a premium.

 The TRX land was included in the 28 properties and lands TH had transferred to special purpose vehicle Urusharat Jamaah Sdn Bhd, which is owned by the government.

 Of the 28 properties and land, 18 has zero income and mainly vacant lands.

 The 1.6-acre TRX land was acquired by TH in 2015 from debt-ridden 1Malaysia Development Bhd (1MDB) for RM188.5 million.

 TH’s property arm, TH Property Sdn Bhd, was supposed to develop the property into a high-rise residential tower on the TRX land.

 The proposed development by TH on TRX land would encompass a mix of apartment and serviced apartments, and other commercial developments with a gross development value of an estimated RM900 million.

 Under the transfer of under-performing assets to the SPV under the Ministry of Finance, RM19.9 billion of assets were identified to be transferred in exchange for RM10 billion of sukuk with a yield of five per cent and the RM9.9 billion in Islamic redeemable convertible preference shares (RCPS-i).

Vizione Q2 earnings surge threefold (The Sun Daily, 15th January 2019)

 Vizione Holdings Bhd’s net profit for the second quarter ended November 30, 2018 jumped almost threefold to RM19.44 million from RM6.55 million a year ago mainly attributed to the construction works that were undertaken during the quarter by Wira Syukur (M) Sdn Bhd.

 The group’s revenue rose 13% to RM165.75 million compared with RM147.3 million in the previous year’s corresponding quarter.

 For the six-month period, its net profit surged close to fivefold to RM34.46 million from RM7.08 million a year ago, while revenue almost doubled to RM325.25 million from RM168.63 million.

 Vizione has positioned relevant resources in the wake of the government’s fiscal policy in building more affordable homes in the short to medium term as reflected in their manifesto to construct one million affordable houses within two terms of administration.

(H) REITS / FUNDS

Pavilion REIT won't buy stake in Pavilion Bukit Jalil (theedgemarkets.com, 17th January 2019)

 Pavilion Real Estate Investment Trust (REIT) has decided not to participate in the ownership of the Pavilion Bukit Jalil mall, which is being developed by Malton Bhd.

 No reason was given for its decision.

 Malton said Pavilion REIT, via its trustee MTrustee Bhd, had informed Malton's wholly-owned subsidiary Pioneer Haven Sdn Bhd of its decision not to participate in the ownership of the on-going development.

 Both Pavilion REIT and Malton are linked to property tycoon Tan Sri Desmond Lim Siew Choon, who is a substantial shareholder and chairman in both entities.

 Pioneer Haven had on August 8 last year formally invited Pavilion REIT to participate in the ownership. This was followed by a due diligence and discussions between the two parties on the method of participation and negotiations on relevant terms and conditions.

 The Pavilion Bukit Jalil mall comprises one block of retail mall with five levels of retail spaces and two levels of basement parking. The mall, scheduled to open in the third quarter of 2020, will have a net lettable area of 1.8 million sq ft.

 The Pavilion Bukit Jalil mall is part of the wider Bukit Jalil City project, with a gross development value of RM4 billion, which is being undertaken by Pioneer Haven.

 On July 9, 2018, it was reported that Canada Pension Plan Investment Board was in talks with Malton on the purchase of up to a 49% stake in the Pavilion Bukit Jalil mall.

MRCB-Quill REIT's net property income falls 11.7% in 4Q (theedgemarkets.com, 17th January 2019)

 MRCB-Quill REIT (MQREIT) net property income in the fourth quarter ended December 31, 2018 (4QFY18) fell 11.7% to RM31.82 million from RM36.03 million a year ago, due to lower revenue from its portfolio.

 The commercial REIT's 4QFY18 revenue fell 9.2% to RM41.81 million from RM46.05 million a year ago.

 For the full year ended December 31, 2018, MQREIT’s NPI retreated 6% to RM132.8 million from RM141.34 million the year before, as revenue declined 4.94% to RM172.57 million from RM181.5 million.

 The 2019 outlook for the office market remains challenging.

 MQREIT will remain focused on asset management and leasing strategies that are centred on tenant retention as well as managing its operational cost effectively. In addition, prudent identification of right acquisition targets that meet its investment criteria will be essential to drive sustained growth going forward.

 In respect of 2019, MQREIT has about 19% of its leases based on net lettable areas that are up for renewal, with the bulk of the leases due after the first half of 2019.

 Meanwhile, the REIT has scheduled enhancement works that will be initiated for a few properties in FY19, namely Wisma Technip, Quill Building 5-IBM, Platinum Sentral and Menara Shell.

MRCB-Quill REIT sees RM5.4m loss on revaluation of properties (theedgemarkets.com, 17th January 2019)

 MRCB-Quill REIT (MQREIT) has realised a total fair value loss of RM5.43 million, arising from the revaluation of its properties.

 The market value of the properties stood at RM2.178 billion, as at its latest revaluation.

 The fair value loss of investment properties after taking into account the unbilled leased income receivable is RM4.58 million.

KIP Reit’s 2Q profit fall on higher expenses (The Malaysian Reserve, 16th January 2019)

 KIP Real Estate Investment Trust’s (Reit) net profit for the second quarter ended December 31, 2018 (2QFY19) decreased 9.71% year-on-year (YoY) to RM7.90 million due to higher property operating expenses.

 Operating expenses in the quarter rose 6.5% YoY to RM5.2 million on higher maintenance, marketing and advertising expenses. Its net property income of RM10.4 million was 3.4% lower than preceding year corresponding quarter.

 Revenue for the three months decreased slightly to RM15.63 million from RM15.68 million a year ago, mainly due to lower rental per sq ft of RM5.28 as compared to RM5.52 in 2QFY18.

(I) LEISURE / TOURISM

W Hotel near Petronas Twin Towers for sale for RM360mil (The Star, 14th January 2019)

 W Hotel joins a list of other hotels for sale, with owner Tropicana Corp Bhd believed to be asking RM360 million (or RM2.4 million a room). The hotel started accepting guests in the second half of last year.

 Located at the site of the former Bok House, W Hotel is less than 400 metres from the Twin Towers, Kuala Lumpur’s most famous destination.

 The 1.28-acre land on which Bok House was sited was believed to have been sold to a South Korean who then sold it to then-property developer Dijaya Corp Bhd for RM123 million, or RM2,200 per sq ft in July 2008. Dijaya Corp was renamed Tropicana Corp to reflect its Tropicana property brand.

 W Hotel has been unofficially on the market for some time but the price tag tended to be on the high side even then.

 The hotel is located from level eight to 24, while 353 units of residences are from level 25 to 52. It has four basement levels for parking. The building is 55-storey high.

 Up to 90% of the residential units have been sold and the remainder are being sold at RM2,600 per sq ft, before rebates. Most of the units were sold to investors from China, Hong Kong, Taiwan, Japan, South Korea, Singapore and the United States. The residential units are expected to be handed over to buyers after the Chinese New Year.

 Tropicana Corp has put its property assets, including its land in Johor and Langkawi for sale. It has also put out a list of commercial blocks it would like to divest.

 Late last year, the Boustead Group invited bids for Royale Chulan Bukit Bintang in a tender exercise. The 400-room hotel is said to have a reserved price of about RM190 million. The tender closed without any deal. There may be private negotiations on-going.

 Hotels are offering between 5.5% and 6.5% annual yield, which is still “worthwhile”, considering today’s low interest rate regime, the flood of office and mall space which is putting pressure on rental.

 The last several years had seen quite a number of acquisitions of Malaysian hotels by foreign investors.

 In September 2017, the 203-room Geo Hotel, near the Central Market was sold to Singapore-listed ICP Ltd for S$27.5 million, or RM410,296 per room.

 Three months later, the 154-room Nova Hotel in Jalan Alor was sold for RM63.8 million, or RM414,286 a room. The buyer was Regalwide Holdings Sdn Bhd, which is owned by Choo Chong Ngen, a Singaporean hotel tycoon who founded the Hotel 81 budget hotel chain.

 IGB sold its 910-room Renaissance to Singapore-based group Ventura International in 2016 for RM765 million, or about RM840,000 a room.

 A year earlier, Singapore-based Royal Group bought the DoubleTree by Hilton Hotel Kuala Lumpur, from asset manager Blackrock for RM388 million, or RM720,000 a room. DoubleTree is located within The Intermark commercial development along Jalan Tun Razak in the city.

 In the second quarter of 2018, the Royal Group sold two hotels for RM240 million, or about RM451,000 a room. These being the 532-room Hilton Garden

Inn North (formerly Cititel Express) and Hilton Garden Inn South (Hotel Empress) in Jalan Tunku Abdul Rahman in the city.

 The buyer was Thailand-listed Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust.

W Hotel not up for sale, says Tropicana (EdgeProp.my, 15th January 2019)

 Tropicana Corp Bhd has said that the W Hotel in Kuala Lumpur is not being put up for sale.

 W Kuala Lumpur, which opened its doors to the public in August 2018 has, demonstrated strong occupancy rates and has contributed positively to the group’s property investment portfolio in 2018.

 For 2019, W Kuala Lumpur is expected to continue on this growth tangent, bolstered by the uplift of arrivals from international visitors and as a venue for key events, both local and international.

As age catches up, Grand Seasons KL to halt operations (The Edge Malaysia, 16th January 2019)

 Twenty-year old Grand Seasons Hotel Kuala Lumpur will cease operations at the end of next month, owing to prolonged financial challenges and issues relating to ageing utility components.

 Located in Jalan Pahang, the 40-storey building with 800 rooms is operated by Prominview Sdn Bhd, which is owned by Lim Siew Kim, a daughter of late Genting Bhd tycoon Tan Sri Lim Goh Tong. It is learnt that the staff count at the hotel is between 200 and 220.

 Previously the tallest hotel in the capital, Grand Seasons is part of a mixed-use development that includes office and retail space. The development has 72,000 sq ft of retail space and 236,000 sq ft of office space. Construction of the building commenced in 1996 and was completed two years later. Although it is an 800- room hotel, it is learnt that only 678 rooms were being used and some floors are not operational.

 Tenants of the office portion may have been asked to vacate by June this year. New leases have been put on hold as there are plans to refurbish the offices.

 Based on its last submitted financials, Prominview posted a net profit of RM7.63 million on the back of revenue of RM45.15 million for the financial year ended April 30, 2013. As at the same date, its accumulated profit amounted to RM19.76 million and its total liabilities to RM198.39 million. Prominview has no bank charges.

 The company is wholly owned by Impianpuri Sdn Bhd. Impianpuri is owned by 70-year-old Lim and 40-year-old Chan T’shiao Li, with 20% and 80% equity interest respectively.

 It was previously rumoured that the building was available for sale for RM300 million. However, it is not known if it has been sold.

The Datai Langkawi reopens in grand style (The Star, 18th January 2019)

 Following a 12-month renovation programme, The Datai Langkawi has reopened. Its newly refurbished interiors and facilities are fabulous and all done without compromising the Datai’s DNA.

 Situated in the heart of a 10-million-year-old rainforest, The Datai has been reimagined into a global icon for new generations since its inception in 1993. The refreshed look and feel of the resort offer guests nature and culture-based experiences, to promote Malaysian hospitality to the world and reaffirm The Datai Langkawi as an unparalleled luxury destination.

 There are 121 rooms, suites and villas, all with amazing views of the lush tropical rainforest, some with the breath-taking view of the beach and Andaman Sea with Tarutao Island on the horizon. The Canopy Collection is situated in the main buildings, and its lovely views delight the heart. The Canopy Suites offer rare rainforest opulence from their spacious balconies, and also feature a separate living room with dining area and a very large bedroom.

 The Rainforest Collection, tucked deep inside the lush tropical rainforest, features villas, including some with 10m infinity pools and are architecturally designed to be naturally at one with Mother Nature.

 The Datai Estate Villa deserves a prominent introduction as the resort’s newest addition; with its expansive five-bedroom facility, spanning 3,500 sq m. The exclusive space features neutral tones with modern furnishings, living rooms, game rooms, two 20m connected pools, 24-hour butler service as well as a private chef.

 Located directly on the pristine white-sand beach of Datai Bay, the One-Bedroom Beach Villas and the Two-Bedroom Beach Villa are fully enclosed with serene garden views and inviting private swimming pools.

SEA LIFE Malaysia to be launched by first half of 2019 (EdgeProp.my, 14th January 2019)

 SEA LIFE Malaysia at Legoland Malaysia Resort has completed 95% of its construction and is currently on track to launch the interactive aquarium by the first half of 2019.

 The construction has reached a milestone with the filling of the Ocean tank — the largest tank in the aquarium — which will contain 400,000 gallons of water once filled.

 The Ocean tank will house a replica of a historic shipwreck, Wanli, and be themed to appear like visitors are walking through the shipwreck with Lego elements spread out for display.

 Once the tanks have been filled, SEA LIFE aquarists will work to get the water quality and salt content ready for the arrival of marine life such as Blacktip Reef Shark, Zebra shark, stingrays, seahorses, jellyfishes and more.

 SEA LIFE Malaysia will refresh its offerings to Malaysians and provide a new experience to visitors from all over the world.

 Upon completion, the two-storey interactive aquarium measuring 2,123 sq m will house more than 25 display tanks with 11 habitat zones.

Sabah keen on eco-tourism partnership with Chinese investors (The Star, 17th January 2019)

 Sabah is looking at a proposal from a company in China to develop agro-tourism in the state.

 A China-based company is keen to invest and develop agro-tourism in the state.

 Agro-tourism is rapidly gaining popularity as it offers tourists a variety of agriculture-related activities. Also known as farm tourism, it involves activities such as visits to animal or vegetable farms to feed livestock, harvest vegetables or pick fruits.

 Agro-tourism can be added to Sabah's list of tourism products such as eco- tourism, adventure tourism, cultural tourism, medical tourism, golf tourism, historical tourism and heritage tourism. klia2's new RM3m processing centre to cut time by 66% for domestic flights (theedgemarkets.com, 18th January 2019)

 The construction of a new dedicated RM3 million processing centre at klia2 in Sepang is almost 50% complete, says Malaysia Airports Holdings Bhd (MAHB).

 The processing centre, which was kicked off last October, is expected to be operational by May this year.

 The processing centre encompasses customs and immigration clearance that will significantly reduce the time taken by departing airline crew to reach the boarding gates.

 For domestic flights, the time is reduced by 66%, while for international flights, the crew can save more than 40% of the time to reach the gates, compared to current, with the dedicated processing centre.

 This is made possible because the dedicated processing centre will enable the crew to bypass the terminal building to get to the designated departure gates directly.

 The processing centre is expected to benefit AirAsia Group Bhd as the largest tenant of klia2.

 With the enhanced turn-around time, AirAsia has proposed new flight schedules which may increase their flight frequency by up to 18 flights per week for some of its current routes.

 Last year, klia2 handled 31 million passengers, up 5.3% from the previous year.

Malaysia Airlines reinstates Kochi (Sunbiz, 14th January 2019)

 Malaysia Airlines today announced its return to Kochi with its inaugural flight on March 31, 2019.

 Due to increasing demand, the carrier is happy to announce its return on the daily Kuala Lumpur-Kochi route.

 It has also recently increased capacity on the Kuala Lumpur-Mumbai route.

Malindo Air to start KL-Varanasi flights in March (Bernama, 17th January 2019)

 Malindo Air will start flying to Varanasi in north India, the airline’s 10th destination in the country.

 Varanasi will be the carrier’s new destination in India from March. Initially, there will be three weekly flights with demand coming from pilgrims and tourists.

 An ancient city on the banks of the Ganges river, Varnasi is an important Hindu pilgrimage point.

 At present Malindo Air has 61 weekly flights between Kuala Lumpur and nine Indian cities.

 Transfer passengers make up 60 per cent of Malindo fliers from India.

MATTA urges visa-free travel for Chinese, Indian tourists (theedgemarkets.com, 15th January 2019)

 The Malaysian Association of Tour and Travel Agents (MATTA) has called on the government to grant visa-free travel for Chinese and Indian tourists visiting Malaysia.

 MATTA welcomes the government's move to extend the 15-day visa exemption for tourists from China and India from January 1 to December 31, 2019, published under the Passports Act 1966 in the Federal Government Gazette.

 According to Tourism Malaysia, Malaysia [saw] 34.2% growth of Chinese tourists and 10.4% growth of Indian tourists from January to September in 2018 compared to the same period in 2017. With the growth of Chinese and India tourists, the government should take the opportunity to entice these two top markets for inbound tourism with convenient and hassle-free entry to Malaysia.

 Neighbouring countries are offering visa facilitation to lure foreign tourists especially to welcome Chinese and Indian tourists. For example, Thailand recently extended the waiver of visa-on-arrival (VOA) fees for visitors from 21 countries, including China and India until April 30, 2019. Arrivals from China and India spiked about 20% compared with the first half of November 2018, when VOA fees were still in effect.

 Indonesia grants visa-free travel to citizens of 169 countries including China and India nationals to the country.

 The visa-free policy helped boost the number of tourist arrivals by about 20% every year since 2014.

 Malaysia's tourism industry is trailing behind neighbouring countries such as Thailand, Singapore, and the Philippines. The tourist arrivals for ASEAN

countries have recorded positive growth in 2017, with 7.8% increase for Thailand, 6.2% for Singapore and 11% for the Philippines.

 Whereas visitor arrivals to Malaysia dropped by 3% with 25.95 million tourists in 2017, compared to 26.76 million in 2016.

(J) INSTITUTIONAL

Matrix Concepts enters JV for schools rationalisation plan (The Star, 16th January 2019)

 Matrix Global Education Sdn Bhd (MGE), a subsidiary of Matrix Concepts Holdings Bhd, has partnered Bondanza Educare Sdn Bhd in a bid to rationalise and reorganise the operations of the Matrix brand of schools.

 Bondanza has the requisite experience and expertise in the education industry for the setting up, operating and management of Matrix Global Schools (MGS), which comprises the Matrix International School, Matrix International Pre-School and Matrix Private School in Bandar Sri Sendayan, Negeri Sembilan.

 The collaboration will offer "a new improved business proposition and outlook which are expected to boost the operational efficiency of MGS".

 Matrix Educate Sdn Bhd (MEC), a wholly owned subsidiary of MGE, will serve as the joint venture company where 49% of the shareholding will be held by Bondanza.

 Purusuant to the agreement, MGE will relinquish control of MGS to MEC in order that the latter can assume operations.

 MEC will acquire the relevant operating assets from MGE and Matrix Properties Sdn Bhd for a net book value of RM9.75 million.

Alibaba sets up first ‘netpreneur training’ programme outside China in Malaysia (The Malay Mail, 17th January 2019)

 Malaysia has been chosen by the Alibaba Business School as the first country outside China for its “Netpreneur Training” programme.

 The school, set up by Alibaba founder and one of the world’s richest men Jack Ma, seeks to aid Malaysian entrepreneurs keen to develop their electronic trade infrastructure and best practices in embracing the digital economy.

 The Alibaba Netpreneur Training Program is jointly organised with the Malaysian Digital Economy Corporation, Malaysia External Trade Development Corporation, and SME Corporation Malaysia.

 The training programme will be held at Alibaba’s headquarters in Hangzhou, China.

 Intake this year will be held in two batches: from March 23 to April 3; and from April 13 to 24.

Seismic fundamental shift expected in local healthcare space (The Edge Financial Daily, 14th January 2019)

 The government, regulators and foreign insurance players appear to have come to a compromise on the requirement to divest 30% of their equity stakes to local partners. This compromise has taken the shape of the B40 Healthcare Protection Fund (B40HPF) as announced in Budget 2019. The proposed B40HPF to be managed by Bank Negara Malaysia will provide the B40 segment with: i) free protection against 36 critical illnesses of up to RM8,000 per annum (pa); and ii) up to 14 days of hospitalisation income at RM50 per day (RM700 pa). The scheme essentially represents a shift of patient volumes to the private sector backed initially by a private sector-led funding model.

 This policy shift essentially provides: 1) a federal framework for public private partnerships between the ministry of health (MoH) and private hospitals; 2) it is in line with the goal of bridging the gap of insurance coverage for the B40 segment; and 3) it sets in motion a structure for a national healthcare insurance scheme similar to Medicare (Australia) and NHS (UK) in future, whereby healthcare is funded by the public, lessening the burden on the government’s coffers.

 The cap of RM8,000 per annum will limit accessibility to major treatments (surgeries). The scheme will be channelled towards ancillary services — diagnostics (MRI, CT scans and pathology) at private hospitals, thus potentially increasing the utilisation rates of nascent medical equipment albeit at a volume discount rate.

Sinmah Capital focuses building hospitals for B40 and M40 (New Straits Times, 17th January 2019)

 Former poultry producer Sinmah Capital Bhd (SMCap) plans to build between 20 and 25 hospitals in 10 years to capture the bottom 40 (B40) and middle 40 (M40) income groups.

 Aiming to provide affordable healthcare services, SMCap, through its unit Sinmah Amegajaya Healthcare Sdn Bhd, plans to begin construction of four hospitals in Malacca and Negri Sembilan respectively under the "Integrated Public-Private University Hospital" (IPPUH) concept.

 The new concept of medical facility will benefit the B40 and M40 groups as the prices will be considerably lower than those of other private hospitals. The quality of services will be maintained albeit at a discount to patients. There is also plan to tie up with a sole insurance company that provides affordable medical premiums which they can use to enjoy the hospital facilities.

 The insurance will also cover all services including the in-patient services since the insurance companies will be able to come up with an equilibrium to the premiums due to the lower hospital charges.

 SMCap signed a deal to buy a property in Nilai, Negri Sembilan for RM27 million with plans to redevelop it into Malaysia's full-service IPPUH.

 Sterling Medical Centre is poised to begin construction in March 2019 and to be completed in 28 months.

KPJ Healthcare to focus on brownfield developments (The Star, 16th January 2019)

 KPJ Healthcare plans to explore capex-lite opportunities, including shifting its focus to brownfield expansions after the existing greenfield developments are rolled out.

 This shift in strategy is positive as it will reduce the need to fund heavy development expenditures which should help KPJ manage its borrowings.

 Core earnings are projected at RM58 million to RM60 million in 4Q18F on the back of patient growth of 2% on-year. This is 2%-4% lower on-year due to a one- off patient boost in the corresponding quarter, and as KPJ has to absorb additional start-up losses from the commencement of KPJ Perlis in May 2018.

 KPJ Healthcare has indicated that it will further expand its network of 25 hospitals this year through the opening of four new hospitals - KPJ Bandar Dato’ Onn (150 beds), KPJ Miri (90 beds), KPJ Batu Pahat (150 beds) and KPJ Kuching (150 beds).

 Coupled with its brownfield expansion plans, this will further strengthen its presence nationwide and provide space to capture more patient volumes in the future.

 KPJ Healthcare's capacity of over 3,000 beds is projected to grow circa 8% on- year by end-2019F following its planned capacity expansion activities.

Fortis completes deal for RHT Health assets (The Sun Daily, 16th January 2019)

 India’s Fortis Healthcare Ltd, in which IHH Healthcare Bhd owns a 31.1% stake, has completed the acquisition of RHT Health Trust’s assets for INR46.66 billion (about RM2.69 billion).

 Fortis has completed the acquisition of the equity and other securities of several entities from Fortis Global Healthcare Infrastructure Pte Ltd.

 The acquisition, which includes foreign exchange movement and slippages, is pursuant to the master purchase agreement dated February 12, 2018 and other subsequent definitive agreements.

 The entities will become direct/indirect wholly owned subsidiaries of Fortis and thus become indirect subsidiaries of IHH. The financials of the entities will be consolidated under IHH.

 The entities are International Hospital Ltd, Fortis Health Management Ltd, Escorts Heart and Super Specialty Hospital Ltd, Hospitalia Eastern Private Ltd and Fortis Hospotel Ltd.

 Recall that IHH, via Northern TK Venture Pte Ltd, had in November 2018 completed the purchase of 31.1% of Fortis for RM2.35 billion.

 However, its plan to acquire an additional 26% stake in Fortis for RM1.97 billion has been put on hold following the Supreme Court of India’s ruling.

New team takes over at Mawar, pledges to re-open private hospital (The Star, 15th January 2019)

 A new team that has taken over the management of the deregistered Mawar Medical Centre in Seremban has pledged to re-open the private hospital after rehiring the bulk of its specialists who resigned in November.

 Intelek Ceria Sdn Bhd will also submit an application for a new licence to the Health Ministry in the next few days.

 Mawar's licence was revoked on December 14 after it failed to furnish proof that it had enough specialists at the hospital.

 However, the management was then given a month to appeal but the new team decided against this.

 Intelek Ceria currently manages and operates the Putra Specialist Hospitals in Batu Pahat and Kajang and is confident of turning around the 98-bed Mawar Medical Centre.

(K) INFRASTRUCTURE

New LRT3 contract to be signed soon (The Star, 18th January 2019)

 The new contract for the light rail transit 3 (LRT3) project is expected to be sealed before Chinese New Year.

 According to the project’s main contractor, MRCB-George Kent Sdn Bhd (MRCBGK), unpaid contractors are also slated to receive their outstanding payments by the month’s end.

 The agreement, to be restructured from a project-delivery-partner (PDP) model to a “fixed-price contract”, was supposed to be executed by December 12, 2018. The signing was, however, extended to this month since December was a festive season.

 Moving forward, it is expected to take another two to three months before work on the 37km LRT3 resumes.  In July last year, the government approved the continuation of the 36km-long track at a final cost that was reduced by 47% to RM16.63 billion. The government said it would do away with the PDP model and revert to the turnkey model, while the completion date was extended from 2020 to 2024.

 Besides the joint-venture of MRCB and George Kent as the main contractor, other listed companies that were involved in the project include Mudajaya Group Bhd, WCT Holdings Bhd, IJM Corp Bhd and Sunway Construction Group Bhd.

EPCC contract with CCCC for ECRL project terminated — source (theedgemarkets.com, 18th January 2019)

 The government has terminated the engineering, procurement, construction and commissioning (EPCC) contract awarded to China contractor China Communications Construction Co Ltd (CCCC) for the RM81 billion East Coast Rail Link (ECRL) project.

 CCCC was instructed to stop all construction works and services regarding the ECRL project by the Finance Minister on July 3 last year until further notice, pending a review.

JB-S'pore RTS link may be delayed until 2024 – S'pore Transport Minister (EdgeProp.my, 14th January 2019)

 The Johor Bahru-Singapore Rapid Transit System Link (RTS Link) project is behind schedule and not progressing well, said Singapore Minister for Transport.

 The RTS Link Bilateral Agreement (BA), signed by Singapore and Malaysia in January 2018, set out certain milestones to track the progress of the project.

 Based on the BA, the joint-venture company (JVC) comprising Singapore’s SMRT and Malaysia’s Prasarana Malaysia Bhd should have been constituted by June 30, 2018, and the JVC should have been appointed as the RTS Link operator (OpCo) through a Concession Agreement (CA) with Singapore’s Land Transport Authority (LTA) and the Malaysian government by September 30, 2018.

 However, these milestones have been missed.

 Under the BA, if by the original deadlines the JVC has either not been incorporated, or not been appointed as the OpCo, then both countries are obliged to jointly call a fair, international and transparent open tender to appoint the OpCo, unless both governments mutually agree to postpone these deadlines.

 In line with the intent of the BA, Singapore prepared and sent draft tender documents to Malaysia in November 2018 and is awaiting comments.

 Singapore remains fully committed to implementing the RTS Link Project and fulfilling its obligations under the RTS Link BA.

TSR Capital bags RM307m job under Gemas-JB rail project (Bernama, 14th January 2019)

 TSR Capital Bhd has clinched a RM307 million civil works sub-contract for a section of the Gemas-Johor Bahru electrified double track project from YTL Corporation Bhd’s unit Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd.

 Its construction arm TSR Bina Sdn Bhd today accepted the letter of award to undertake site clearance and embankment earthworks with all associated works.

 The project is expected to begin this month and be completed by March 2020.

 For the 18-month financial period ended June 30, 2018, the group’s construction segment recorded revenue of RM378.07 million and profit before tax of RM12.79 million.

Penang seeks federal aid to carry out RM300mil plan for mainland (The Star, 17th January 2019)

 The Penang Government is planning more than RM300 million in new roads and bridges for the mainland and it is hoping that the Federal Government will ‘chip in’ to finance them.

 The bridges and roads will be new connections in Batu Kawan, Nibong Tebal, Bukit Tambun and Jawi, and they are being planned through Penang Development Corporation (PDC).

 The infrastructure improvements will ensure growth and ease of access to attract investments.

 PDC took the initiative to increase the road network by opening Jalan PSPN 2 as an alternative route to enable traffic from Batu Kawan and Bukit Tambun to continue to Juru using the passage way to the Bukit Tambun toll plaza.

 The newly opened road is 30m wide with a three-lane dual carriageway design stretching 1.6km.

 The project was executed in two phases, with the first phase stretching about 0.8km with a construction cost of RM9.6 million which was completed in 2016.

 The second phase was about 800m costing RM9.5 million.

 The construction for both phases cost RM20 million, which was fully funded by PDC.

Cheaper and faster to build BRT than MRT, says transport group (EdgeProp.my, 17th January 2019)

 Cities are better off investing in a BRT (bus rapid transit) system than an MRT (mass rapid transit) system, especially when budget is a concern, according to an international transport systems organisation director.

 For US$1 billion (RM4.1 billion), 426km of BRT corridor or 40km LRT or 14km elevated metro or 7km underground subway can be built.

 In Jakarta, the BRT system cost US$1.1 billion and covers 225km, carrying 700,000 passengers per day; and the Transjakarta BRT took only 12 months to construct.

 In contrast, the Jakarta MRT, slated for completion in March, requires RM1.4 billion, covers merely 16km, took 10 years’ planning and four years to build and is expected to cater for only 135,000 passengers per day.

 Penang needs to implement changes to its city planning to be more pedestrian- friendlier while introducing the BRT.

 Complete street concepts that allocate spaces for pedestrians, cyclists and buses instead of only cars are advocated.

 Penang’s back lane and bicycle lane projects should be expanded further.

 Private vehicles are the least effective method to move people compared to mass transits systems like BRT.

Bintulu Port Authority cancels Muhibbah’s RM585m wharf contract (theedgemarkets.com, 17th January 2019)

 The Bintulu Port Authority has cancelled a RM584.84 million contract with Muhibbah Engineering (M) Bhd to build a supply base wharf at the second harbour basin of the port in Sarawak.

 Muhibbah said its 51%-owned unit Muhibbah Viccana JV has received a notice from the Bintulu Port Authority to terminate the contract.

 It is expecting a fair compensation to the termination of the contract.

 The project, which was awarded to Muhibbah Viccana JV on April 28, 2017, was expected to be completed by the end of 2019.

(L) ISKANDAR MALAYSIA

IRDA targets RM30b new investments for Iskandar Malaysia (Bernama, 15th January 2019)

 The Iskandar Regional Development Authority is targeting to attract RM30 billion in new investments into Iskandar Malaysia this year.

 The target is achievable as the development authority managed to record RM32.23 billion in investments last year.

 The cooperation will ensure that investments originate from desirable sectors such as tourism, logistics, health, the creative industry, finance and education.

 The six sectors saw a 16% growth in investments compared with 2017. For example, the tourism industry attracted RM1.94 billion in investments while the education sector took in RM940 million.

 On the whole, Iskandar Malaysia recorded committed investments totalling RM285.34 billion from 2006 to December 31, 2018. Local investments contributed 62% or RM177 billion of total investments.

Passage of convenience (The Star, 17th January 2019)

 Causeway Link has launched its new cross-border route between Malaysia and Singapore via the Second Link, making it easier for commuters in the two countries.

 According to Handal Indah Group of Companies (HIGC), the new route opened on December 31, running between Medini in Iskandar Puteri and Tuas Link MRT Station in Singapore.

 The drop-off and pick-up points are located at Mall of Medini in Iskandar Puteri, and Tuas Link MRT Station in Singapore with a 10 to 15 minutes’ interval. The introduction of the new route will also provide a more comfortable ride for commuters taking the Jurong East and Boon Lay bus service.

 Commuters from Tuas Link MRT in Singapore can be connected to various places of interest in Johor, including Legoland Malaysia Resort, Sanrio Hello Kitty Town and Johor Premium Outlet.

(M) OTHERS

Kuwait's KFH plans asset sales in 2019, including Malaysia (The Star / Reuters, 14th January 2019)

 Kuwait Finance House plans to sell assets in the range of 100 million dinars ($330.1 million) to 120 million dinars in 2019.

 The sale will include the headquarters of its unit in Malaysia and its stake in Kuwait Energy.

'Bangsar South' officially reverts to Kg Kerinchi (EdgeProp.my, 19th January 2019)

 Increasingly gentrified over the past seven years, property developers dubbed the area Bangsar South, using the prestige of the nearby Bangsar address to infuse the area with an air of affluence.

 Descendants of Indonesian migrants that had begun settling in the area circa 1870s had named it Kampung Kerinchi after their ethnic group.

 The traditional name to the area was restored today to emphasise that this area, historically and culturally, is Kampung Kerinchi.

Redevelopment of Highland Towers site to start next year (The Malaysian Reserve, 18th January 2019)

 The proposed development of a public park in place of the three abandoned Highland Towers buildings in Ampang can only start next year once all related legal issues are resolved.

 The Highland Towers Redevelopment Committee, which was initiated by the Ministry of Housing and Local Government (KPKT), is currently conducting a study with the Works Department (JKR) on the technical and construction aspects of the project.

 The committee, which consists of some 10 government agencies including at the state level, is expected to conclude all legal matters by year-end. Once it is done, the Municipal Council will be notified on the demolition processes.

 The committee was established to solely work on the 6.1-hectare site redevelopment, which was abandoned and uninhabited after the December 1993 disaster that claimed 48 lives when the first block of the 13-storey Highland Towers buildings collapsed due to a major landslide in , , in Selangor.

 The developer of the project, Regal Field Development Sdn Bhd, is also expected to build bungalows on the plot surrounding the park.

 For a start, a sum of RM2 million would be forked out by the developer to demolish the buildings and clear the area.

 The final concept of the park’s landscape, as well as the bungalows, will only be discussed after all the legal matters are resolved.

3,733 Pr1ma units to be built in Terengganu (EdgeProp.my, 14th January 2019)

 The Housing and Local Government Ministry plans to build 3,733 units of houses under the 1Malaysia People’s Housing Programme (PR1MA) in Terengganu.

 The project involves seven locations and will be implemented in stages for three years after the businesses related to land and the law were settled.

 The seven locations are Pulau Besar, Kuala Nerus (560 units); Wakaf Tapai, Marang (482 units); Bukit Payong, Marang (500 units); Kijal, Kemaman (856 units); Kerteh, Kemaman (462 units); Besut (523 units) and Batu Rakit, Kuala Nerus (350 units).

 The proposed number of units in every area will allow the building of integrated and planned communities. ’All the proposed sites are also located near to infrastructural facilities such as main roads for the benefit of the residents.

RM200m allocated to build, repair 8,889 PPRT houses (EdgeProp.my, 14th January 2019)

 The rural development ministry will build and repair 8,889 houses this year under the Hardcore Poor Housing Programme (PPRT) on a RM200 million allocation.

 Some 44,430 people are expected to benefit from the programme which comprised the construction of 1,535 units of new houses and the repair of 7,354 old houses.

 As of December 15, 10,841 PPRT units were built and repaired exceeding the 10,550 units target, 817 units were new houses while 10,024 units were existing ones on a RM271 million allocation.

 Despite the lowering of allocation, the quality and size of the construction of the PPRT houses were not affected with the use of Industrialised Building System (IBS) and conventional method which simultaneously reduced the cost up to 18%.

 The improvement in the PPRT implementation procedures which included the updating of e-kasih data and PPRT recipients list prevent unqualified people from benefiting.

 In another development, the ministry will consider the proposal of the Johor government to create new traditional villages in Felda schemes in the state. The proposal is to enable Village Community Management Council to be established in the new traditional villages.

State low-cost housing initiatives launched in Sarawak (EdgeProp.my, 15th January 2019)

 The Sarawak state government has launched its own low-cost housing development initiatives, previously under the jurisdiction of the Federal Government.

 The state government includes initiatives such as building low-cost houses costing only RM90,000 to RM150,000 each.

 Sarawak will venture into its own low-cost housing schemes as those built by the Federal Government are too costly.

 The state government will start pilot projects this year in five locations - Kuching (two projects), Miri, Sibu and Bintulu.

 For this year, they are plans to build at least 2,000 units and each unit will be priced at RM90,000 to RM150,000 only. Those eligible for the units are those earning a household income of RM800 to RM2,500 per month.

 A total of RM6.24 billion was allocated, and the key initiatives include the implementation of 324 grassroots projects aimed at socio-economic impact inducement of the rakyat.

Malaysians can expect up to 10 pct discount for overhang residential units (NST Business, 17th January 2019)

 Malaysians can expect at least a 10 per cent discount for overhang residential units which have reached a record high of RM19.54 billion in value.

 A mega home expo will be held to exhibit the units in the country from March 1 to March 3. This will help address the issue of unsold residential properties in the country.

 Banks will also participate in the expo to assist with home financing.

 According to National Property Information Centre (NAPIC), the number of unsold houses in the country reached a record high of 30,115 units in the third quarter of 2018, valued at RM19.54 billion.

 This was a 48.35 per cent increase from 20,304 units in the same period in the preceding year.

Private sector adoption of IBS around 35% — CIDB (theedgemarkets.com, 17th January 2019)

 The private sector adoption of the industrialised building system (IBS) currently stands at an estimated 35%, out of its 2020 target of 50%, said the Construction Industry Development Board (CIDB).

 CIDB is confident the adoption rate will increase steadily as more construction players are made aware of the benefits of the system.

 IBS is defined as a technique of construction where by components are manufactured in a controlled environment, either at site or off site, placed and assembled into construction works.

 The adoption rate is also expected to increase as from January 10, 2018, the Housing Ministry has since mandated IBS adoption for private projects worth RM50 million and above, with a minimum score of 50 required.

 While this new ruling has been approved at federal level, the government now aims to apply this rule to state level. About seven states have accepted this new rule, however now they will have to trickle it down to the local authorities. It has not yet been made compulsory to these local authorities to follow. By 2020, it will be made mandatory.

 There are currently 300 companies manufacturing IBS products, 68 of which have been accredited by CIDB.

 The outlook for the construction industry is expected to remain flat for now as the government continues to review certain projects. However, the momentum is expected to pick up by the middle of this year.

Malaysia economy to grow slower at 4.6% for 2019, says RHB Research (theedgemarkets.com, 14th January 2019)

 As the global environment turns more challenging amid rising trade protectionism and global interest rates, RHB Research Institute Sdn Bhd is expecting Malaysia's economy to sustain at a slow pace of 4.6% for 2019, compared with 4.6% in 2018 and 5.9% registered in 2017.

 Overall, signs of a slowdown in external demand have begun to weigh on Malaysia's manufacturing activities, while the recovery in the mining sector remains slow.

 Economic activities in the fourth quarter of 2018 are expected to ease further after the tax holiday during June to August 2018.

 The 4Q18 gross domestic product (GDP) growth is expected to moderate to 4.2% year-on-year (y-o-y) from +4.4% registered in 3Q.

 Malaysia saw its November 2018 Industrial Production Index (IPI) growth retraced to 2.5% y-o-y from 4.3% in the previous month, due to decelerated manufacturing output growth in tandem with a slump in exports, while mining activity fell back into decline.

 Manufacturing output, which grew at the slowest pace in 2.5 years of 3.5% y-o-y in November 2018 from 5.4% in October 2018, was dragged by a slowdown across most subsectors, such as electrical and electronics (E&E) products, petroleum, chemicals, rubber and plastics, transport equipment, food and beverages, metals, and wood products.

 These were, however, cushioned somewhat by a pick-up in manufactures of textiles, wearing apparel and footwear, Loo noted.

 Additionally, mining activity output slipped into a decline of 0.7% y-o-y in November 2018, after it rebounded 1.4% in the previous month — this was as natural gas production fell back even as crude oil output picked up marginally.

 Electricity output, however, picked up to 3.2% y-o-y in November 2018 from 2.8% in October 2018 to provide some cushion.

 Likewise, manufacturing sales registered a slower growth of 7.7% y-o-y from 10.2% in October 2018, and factories also slowed down their pace of hiring, with employee headcount in the sector rising at 2% y-o-y, down from 2.2% in October 2018.

 Meanwhile, salaries and wages paid to workers also eased to a 10.6% y-o-y growth from 11.8% in the previous month.

 As November 2018's manufacturing sales fell by a quicker pace m-o-m compared with the decline in worker headcount, the manufacturing sector's productivity (as measured by sales value of manufactured products per employee) eased to 5.6% y-o-y (+7.8% in October 2018).

World Bank: Malaysia’s economic fundamentals remain strong (The Star / Bernama, 16th January 2019)

 Malaysia’s economic fundamentals remain strong due to its diversified economy.

 The country’s diversified income stream such as electrical and electronic manufacturing, commodities, natural resources, agriculture, as well as external and domestic demand will give strength to Malaysia.

 In the medium term, there are challenges around human capital, productivity and governance.

 Malaysia’s economic growth continues to be stable and the World Bank has projected it to grow at 4.7% for 2019.

Malaysia consumption growth to slow to 5.5% in 2019, Fitch Research says (The Star / Bloomberg, 18th January 2019)

 Private consumption growth was likely in “sharp correction” last quarter, with effects continuing in 1Q and 2Q this year, according to Fitch Solutions Macro Research.

 Consumption will be supported by RM37 billion one-time payment of tax refunds in 2019, tight labour market and low inflation.

 Real GDP growth forecast has been lowered to 4.2% in 2019, from 4.5%, due to exports and investment growth concerns.

 Risk seen in high level of household debt at 68% of GDP in June 2018.

 Growth of households’ loans has slowed however, after peaking in August during the tax holiday period when consumers front-loaded purchases. Credit card loan growth has also eased from August peak.

 Average inflation is projected at 1.4% in 2019.

 Central bank likely to hold rates unchanged at 3.25% through 2019.

Govt must provide consistency and clarity on policies — SERC (theedgemarkets.com, 17th January 2019)

 Amid an environment of cautious economic sentiment, the Malaysian government must provide consistency and clarity in the execution of its policies, or risk dampening investor sentiment.

 The Socio-Economic Research Centre (SERC) projects a 4.7% gross domestic product (GDP) growth for Malaysia this year, although there may be significant downside risks, primarily in the form of external uncertainties.

 There is still room in the current economic climate of moderating growth for the government to "push reforms gradually", although it also needs to be attentive to the costs that small businesses may have to bear.

Unemployment rate in Nov unchanged at 3.3% (The Star, 15th January 2019)

 Malaysia's unemployment rate remained unchanged at 3.3% in November 2018 on track for the third straight month, according to the Statistics Department.

 The number of unemployed persons was 516,200 which was an increase of 2.2% from a year ago.

 The labour force participation rate in November 2018 fell 0.1 percentage point to 68.4% from October but increased by 0.5 of a percentage point from a year ago which was at 67.9%.

 The number of labour force in this month rose 2.5% against November 2017 to 15.46 million persons. During the same period, employed persons also increased 2.5% to 14.94 million persons.

 A total of 31.6% of the working age population, aged 15 to 64, was outside the labour force which comprised of housewives, students, retirees and those who were not interested in working.

Hiring activity in construction, property to stay conservative in 2019 (The Malay Mail, 17th January 2019)

 Recruitment and human resources services provider, Agensi Pekerjaan Randstad Sdn Bhd (Randstad Malaysia), expects hiring activity within the local construction and property industries to remain conservative but stable in 2019.

 Indications show that companies were positively recruiting again after cost reviews on certain big-ticket infrastructure projects were done last year.

 More boutique developers are entering the local market and more small-scale developers are seen investing in small pieces of land in the outskirts of the city to develop their own properties.

 The report also noted that after having a large number of unsold units for a long period of time combined with the undetermined success of the newly- implemented policy like the FundmyHome initiative, the scenario had prompted property firms to take on a more conservative approach towards long-term business and hiring strategies.

 Instead of hiring a generalist such as a civil or structure project manager, employers are increasingly looking for talent who have a full-cycle experience and specialised skills in specific projects such as high-rise properties, hospital refurbishment projects and steel structure buildings.

 Candidates still prefer to work with well-known developers. However, experienced candidates are also looking for job opportunities with smaller developers as these employers welcome new ideas and offer the flexibility that people are looking for. Requests for flexible-work options are also on the rise.

Korn Ferry sees 3.6% rise in real wages in 2019 (The Star / Bernama, 17th January 2019)

 Real wages in Malaysia are expected to grow by 3.6 per cent in 2019, a slight increase from 3.5 per cent predicted last year, adjusted for an inflation rate of 1.4 per cent, according to the Korn Ferry 2019 Salary Forecast.

 The forecast said all sectors surveyed are expected to see an increase in median base salaries, with the telecommunications and media sector predicted to see the highest increase in 2019, up 0.4 per cent to 6.0 per cent.

 The insurance and oil and gas sectors are expected to see the smallest increase in median base salaries, up 0.2 per cent from 5.4 and 4.2 per cent respectively. The industrial products sector is the only exception as median base salaries are predicted to decrease by 0.2 per cent to 4.9 per cent.

 Most organisations are noted to be taking a ‘wait and see' approach due to signs of economic contractions.

 Variable bonus payment trends are also expected to decrease, averaging 2.1 months in 2019 as compared to an average of 2.3 months in 2018.

 Bonuses for the construction sector are expected to be amongst the highest in 2019 at 2.8 months, while bonuses for employees in the consumer goods and services sector is expected to remain amongst the lowest at 1.9 months.

 On average, senior and middle management are expected to see the largest decrease in variable bonus payments, down 0.6 month and 0.5 month respectively, while clerical staff are expected to see an increase of 0.2 months. Bonuses of junior professionals are likely to remain at an average of 2.0 months in 2019.

Malaysian business optimism weakens in 1Q — survey (theedgemarkets.com, 15th January 2019)

 Confidence levels among Malaysian businesses fell sharply as they entered the new year, a latest quarterly study revealed.

 In a study conducted by Dun & Bradstreet Malaysia, the overall business optimism index (BOI) has moderated downwards to +8.92 percentage points in the first quarter of this year (1Q19), compared with +12.99 percentage points in 4Q18.

 However, on a year-on-year comparison, the overall BOI has risen slightly from +7.25 percentage points in 1Q18.

 Moving into 1Q19, sentiments among local firms are expected to moderate due to weaker growth within the external-oriented industries such as wholesale trade as well as the muted outlook among construction and mining firms.

 For 2019, however, firms have anticipated higher investments for business expansion compared to the previous year. This is particularly in the area of technological investments in software, infrastructure and machinery and capital equipment.

 Six business indicators were included under the quarterly BOI study, namely volume of sales, net profits, selling price, inventory level, employees and new orders.

 According to the study, only two (employment levels and inventory levels) of the six indicators have climbed upwards on a quarter-on-quarter basis.

 Notably, volume of sales contracted from +25.98 percentage points in 4Q18 to +7.06 percentage points in 1Q19, and net profit declined from +15.69 percentage points in 4Q18 to +8.82 percentage points in 1Q19.

 Selling price fell visibly from +7.35 percentage points in 4Q18 to +2.94 percentage points in 1Q19, while new orders dropped slightly from +17.16 percentage points in 4Q18 to +15.88 percentage points in 1Q19.

 The study revealed that the transportation, services and wholesale sectors have emerged as the most upbeat sectors while the construction and mining sectors are the least optimistic.

(N) OVERSEAS

London, NYC, Hong Kong are no longer immune to the housing slump (Bloomberg, 16th January 2019)

 In the years since the financial crisis, global cities like London, Hong Kong and New York appeared to defy housing-market cycles, thanks to a concentration of financial jobs and the self-fulfilling belief that they offered investors a safe haven. Now every release of data seems to turn those assumptions on their head.

 In Manhattan, the median condo price dipped below US$1 million for the first time in three years. Hong Kong home values endured their longest losing streak since 2008, while prices in outer London neighbourhoods fell for the first time since 2011. Sydney home owners are grappling with the worst real estate slump since the 1980s.

 Luxury residential prices are growing at the slowest rate since 2012, according to a Knight Frank index of prime properties in 43 cities. Where some see an orderly retreat, others see cause for concern. A November working paper by the International Monetary Fund warned that the tendency of housing prices in global cities to move in sync means that local shocks could upend markets around the world.

 International investors in search of higher-yielding investments have poured cash into the biggest, most-expensive housing markets, pushing prices ever upward.

Governments became concerned the gains were unsustainable, and reacted with measures aimed at curbing the flows of international money.

 UK lawmakers will publish details later this month of a tax on foreign real estate buyers in London. That plan follows moves to increase charges on second homes and properties owned by corporate entities. The government also eliminated tax breaks for rental homes bought with mortgages. Home prices in the most-expensive parts of London are down 19% from their peak in 2014 but the move to curtail investor purchases is still on.

 Similar dynamics are playing out around the world. The number of home sales in Vancouver dropped 32% in 2018 from the previous year, following a series of new taxes, stricter mortgage rules and rising interest rates. Median prices in Auckland registered their first annual drop since 2008 after the New Zealand government passed legislation to restrict foreign buying that it said was partly to blame for escalating housing costs. Home prices have dropped 11% in Sydney from their 2017 peak after government restrictions on foreign purchases and tighter credit.

 Government actions to reduce foreign purchases and/or stretched borrower affordability have already caused home prices to stall or fall in cities such as Sydney, Melbourne, Toronto, Vancouver and Stockholm.

 In Hong Kong, a looming vacancy tax, intended to dissuade investors from hoarding empty apartments, played a part in driving prices down almost 9% from their August peak. Prices are expected to reach their nadir in March and there is ample evidence to suggest homebuilders remain concerned. China Overseas Land & Investment Ltd recently unveiled aggressive discounts at its new residential units released in Hong Kong’s Tai Po area in an effort to fend off competition amid rising supply.

 Policies aimed at reining in prices aren’t the only factors weighing on growth. Local dynamics, like Britain’s planned exit from the European Union, last year’s US tax bill, or tighter capital controls in China are no longer local — they ripple around the world.

Malaysian developers not hit by weakening Aussie dollar (The Edge Financial Daily, 14th January 2019)

 With the sluggish property market in Malaysia, it is not surprising to see local property players expanding their presence to other countries, notably Australia and the UK.

 But stepping into another country means being exposed to foreign exchange (forex) risk. Revenues and expenses in that country are not denominated in ringgit and as such are subject to currency fluctuations. Thus, any weakening of that country’s currency could result in a lower revenue upon conversion into ringgit.

 This is the situation now for Malaysian developers in Australia in the wake of the dropping Australian dollar. Another cause for concern is the slower property market Down Under.

 Among Malaysian listed property developers undertaking projects in Australia, Mulpha International Bhd stands out when it comes to revenue contribution from that country. Some RM1.15 billion, or a whopping 97.92% of its total revenue, came from its Australian projects in 2017.

 Another property player, UEM Sunrise Bhd, saw RM963.89 million, or 33.2% of its total revenue contribution, come from Australia in 2017.  UEM Sunrise had said there were no defaults on its Melbourne apartment projects Aurora and Conservatory, and it was on track to settle the units which had been handed over.  Aurora is fully sold while Conservatory had a take-up rate of 96% as at end- December 2018.

 As for other property developers such as S P Setia Bhd, Gamuda Bhd and Sime Darby Property Bhd, their Australian contributions are relatively minimal.

 With the weakening Australian dollar, Malaysians could probably also consider buying properties there. This, will boost the sales of Malaysian companies with projects in Australia, enabling them to clear their unsold units faster. But for those who [have] already [booked properties there], the question is whether they are going to complete the sale.

 From the developers’ standpoint, they are not as forex-sensitive in general because the completion of the project has a longer gestation period, resulting in the forex impact to be averaged out during the period.

 Furthermore, property developers are allowed to leave their money or earnings from their completed projects there to be deployed for their future investments, which means making them less sensitive to the volatility of the currency.

 Developers will focus on selling the remaining unsold units. They will be less aggressive in terms of launching new projects at this stage and will be focusing more on clearing the unsold inventory.

 The depreciating Australian dollar could also offer property developers the opportunity to increase their land bank down under. However, forex is not the “main decider” for developers to build on their land bank in Australia.

 While Australia is seeing a slowdown in the property market, and in the Melbourne central business district, high-rise condominiums are mushrooming.

 Additionally, developers, in general, do not store a lot of Australian land bank, and are “quite prudent” when it comes to land-banking there.

 Developers have to be really careful as the property market in Australia has slowed down and the Australian government has tightened rules for foreign property buyers, especially in restricting the mainland Chinese buyers.

Singapore Dec private home sales surge 40% y-o-y (Reuters, 15th January 2019)

 Sales of private homes by developers in Singapore soared 40% in December from a year earlier.

 Data compiled by the Urban Redevelopment Authority (URA) showed developers sold 602 units last month, compared with 431 units in the same month a year earlier.

 The level of sales dropped from 1,201 units sold in the previous month.

Singapore’s Golden Mile Complex may be developed as an integrated development if conserved (theedgemarkets.com, 14th January 2019)

 If the collective sale of the iconic Golden Mile Complex goes through, the property may be developed as an integrated development with a gross floor area of 925,456 sq ft. This is advised by the Urban Redevelopment Authority (URA), and is subject to the conservation of the main building of Golden Mile Complex.

 The outline application has been submitted to retain the existing 16-storey building and to add a new block next to the building.

 Currently zoned for commercial use under the 2014 Master Plan, the new integrated development may comprise retail, office, residential, serviced apartments and hotels. The property has a land area of about 1.3 hectares.

 The new Golden Mile Complex will be an essential part of the rejuvenation of the Beach Road corridor, and this “unique adaptive reuse opportunity” will provide the developer with the chance of incorporating a new vision into this iconic development.

 Golden Mile Complex has a reserve price of $$800 million (RM2.4 billion). The differential premium and lease upgrading premium to intensify the land use and to top up the lease to 99 years respectively will depend on the developer’s proposed land use mix.

Rare Singapore Hotel site gets record US$415m bid (The Star / Bloomberg, 16th January 2019)

 A rare plot of land that’s zoned for a hotel near Singapore’s central business district has attracted a record bid as developers shift focus after last year’s property cooling measures.

 Midtown Development Pte, a subsidiary of listed group Oxley Holdings Ltd., bid S$562.2 million ($415 million) for the site, the highest among eight offers received, according to the Urban Redevelopment Authority (URA).

 The land adjacent to Club Street, an area known for its bars and restaurants, is the first such plot released by the government in five years. At S$2,148.50 per square foot, that sets a new benchmark for hotel sites.

 The high tender participation rate and rather bullish bids could be due to the rarity of hotel sites and the lack of new hotel projects in the pipeline. The results show that developers have begun exploring other options to diversify their real- estate portfolios away from private residential developments due to the introduction of the July cooling measures.

 Those curbs significantly raised the cost for home builders to acquire land. Other hotel sites that last went under the hammer in 2013 -- at Havelock Road and at

East Coast Road -- were sold at rates 65 percent and 62 percent below this most-recent bid.

 Separately, the tender period for two residential sites also closed Tuesday. An executive condominium for public housing in Singapore’s east received a top bid of S$434.5 million while another development at Kampong Java Road in one of the island’s most-expensive enclaves attracted a tepid response, with the best offer coming in at S$418.4 million.

 The outcome of this batch of tenders reflects the impact of the cooling measures as developers shift their focus to the hotel and executive-condo segments. There is continued appeal for executive condominiums among middle-class households.

Co-working brand No18 set to open Asia flagship space in Capitol Singapore (EdgeProp.sg, 14th January 2019)

 Global flexible workspace provider IWG has leased over 20,600 sq ft of space at Capitol Singapore, and will launch its premium co-working space brand No18 there. The co-working space will be the brand’s flagship facility in Asia, and its first location in the region, when it commences operations in September this year.

 The new space in Singapore will be on the second floor of Capitol Singapore and will be designed to create a “cosmopolitan atmosphere”. About 70% of the space will be catered for private offices, while the rest is set aside for other amenities. No18 is based in Stockholm, Sweden, and its global offerings include a mix of private offices, private desks, and co-working spaces. Typical facilities in its co- working locations include health clubs, cafes, bars, restaurants, and event spaces.

 No18’s members will have privileged access to wine and dining options at Capitol Piazza and The Capitol Kempinski Hotel Singapore. An event space in No18’s co-working area will host health and wellness events, as well as luxury product launches.

 Located in the Downtown Civic District, Capitol Singapore is owned by Perennial Real Estate Holdings. The property is an integrated development across three conservation buildings and comprises the Capitol Piazza retail mall, The Capitol Kempinski Hotel Singapore, Capitol Theatre, and Eden Residences Capitol.

Berjaya Land plans Four Seasons Resort in Okinawa costing US$400m (The Star, 17th January 2019)

 Berjaya Land Bhd is developing its Four Seasons Resort and Private Residences Okinawa in Japan with a projected total development cost of US$400 million (RM1.64 billion) and the gross development value estimated to be about US$1 billion (RM1.40 billion).

 The project comprising about 100 acres of beach front land owned by Berjaya Land along the western coast of the island, is about 50km northeast of Naha International Airport.

 Four Seasons Resort and Private Residences Okinawa will comprise about 30 acres of the project development land area, with 120 hotel rooms, 120

residences and 40 villas. The project is expected to take about four years to complete.

 Berjaya Land’s unit Berjaya Okinawa Development Co. Ltd is partnering Four Seasons Hotels and Resorts for the project.

 The project will debut as part of the development’s master plan as Four Seasons Resort and Private Residences Okinawa.

 The master plan for Four Seasons Resort and Private Residences Okinawa, including planning and landscape architecture, is developed by internationally renowned landscape architecture and urban design firm, EDSA Inc.

 In addition, world-renowned Japanese architects Kengo Kuma and Kuniken will serve as joint architects for the project. The vision is to create a destination that portrays the cultural heritage of Okinawa island along with its natural landscape and resources.

 The Four Seasons Resort and Private Residences Okinawa will be anchored by a resident beach club nestled on the east side, where guests as well as the homeowners will be able to access the natural beach. Additionally, the low- density layout of the resort will also allow guests and homeowners to access every amenity by foot, bicycles or golf carts.

 The resort facilities will include an all-day dining restaurant, specialty dining and lounge, retail shops, recreation facilities, as well as public grounds and gardens.

Marriott looks to reboot loyalty plan after cyberattack (The Star / Reuters, 17th January 2019)

 Marriott International Inc will relaunch its loyalty programme under a new brand name as the company seeks to undo the damage to its name from a massive cyberattack that led to millions of customer records being stolen.

 The world's biggest hotel chain said the new brand, Marriott Bonvoy, will replace the existing loyalty programmes – Marriott Rewards, The Ritz-Carlton Rewards and Starwood Preferred Guest – integrating the three brands into one name, with the launch on February 13.

 The company, which owns the Ritz-Carlton and St. Regis luxury hotel brands, disclosed earlier this month that fewer than 383 million customer records were stolen in a cyberattack on its Starwood Hotels reservation system.

 Marriott has phased out the Starwood reservations database after it acquired the hotel chain for US$13.6 billion (RM55.95 billion) in September 2016. The hack began in 2014, a year before Marriott offered to buy Starwood.

Rich Chinese still hungry for luxury goods (The Malaysian Reserve / Bloomberg, 15th January 2019)

 About half of Chinese consumers say they are planning to spend more on luxury purchases this year in a recent survey as concerns mount that the slowing and trade war-battered economy may dent demand in the key market for premium goods.

 Weeks after brands from Apple Inc to Richemont said that lower than expected Chinese demand is hurting earnings, a new survey of 1,385 affluent consumers by research firm CSG and public relations agency Ruder Finn showed that 46% of respondents in China and 32% in Hong Kong said they planned to spend more on luxury purchases this year compared to 2018.

 While the results for China is in line with survey findings from a couple years ago, the trend showed a softening.

 The global luxury industry has become increasingly reliant on China’s wealthy to drive growth and a perceived pull back in spending has been a consistent drag on luxury shares in recent months.

 The survey results signal some relief for makers of premium goods counting on China, which accounts for a third of the US$1 trillion (RM4.1 trillion) luxury market worldwide.

 The average Chinese shopper in the survey, conducted between November 30 and December 11, spent more than US$35,000 on luxury goods last year.

 In 2016, when the survey’s results were last announced publicly, 42% of Chinese shoppers said they would spend more on premium goods.

 Companies, from jeweller Tiffany & Co to bespoke menswear brand Ermenegildo Zegna are shifting to boost domestic sales in China.

 Brands are also focusing on how to incorporate Chinese elements to gain attention locally: Burberry recently launched a Chinese New Year (CNY) capsule collection and has a limited-edition line sold only over WeChat, for example.

China's coffee unicorn is burning millions to overtake Starbucks (Bloomberg, 17th January 2019)

 Luckin Coffee, a Chinese start-up that’s banking on selling cappuccinos to on- the-go office workers, is spending millions of dollars a year opening outlets to unseat Starbucks Corp as the top java seller in the country.

 Launched about a year ago, the local challenger is confident it’s got a winning model: small coffee outlets that will outnumber Starbucks cafes by year’s end, an app that rushes out deliveries in about 18 minutes and lots of steep discounts. Chasing the entrenched rival, it’s burning through US$130 million a year.

 Luckin’s success so far is putting pressure on Starbucks, which until now had no meaningful challenger and dominated the market with more than 50% share. The companies are employing vastly different approaches in their claims to the US$3.2 billion retail coffee market that is Starbucks’ fastest-growing and second- biggest. That competition is likely to heat up with China’s economic slowdown.

 Questions abound whether Luckin can parlay customer discounts and media hype into as powerful a brand as its rival. The Seattle-based behemoth has lately dialled down its ambition in China, even as it still targets a tripling of revenue by 2022. Starbucks reported last month that comparable sales growth could be as

low as 1% over the long term, sparking concern that competition and cannibalization are taking their toll.

 Currently valued at US$2.2 billion and backed by investors including Singapore’s sovereign wealth fund GIC and China International Capital Corp, Luckin has emphasized convenience in its business model, betting that Chinese office workers would rather have ease of access over premium frills — and pay about a third less for a cup of Luckin joe.

 While the global rival prides itself on warmth and service embodied in cafes styled as a “third space” between home and office, Luckin is about efficiency: its outlets are cashless and customers are meant to be able to get their coffee without ever speaking to anyone.

 The outlets, in or near office buildings, are designed for fast pick-up and delivery — and exploits a competitive edge where Starbucks has been late to the game. Despite Chinese consumers’ reliance on food delivery, Starbucks only launched delivery in partnership with Alibaba Group Holding in August.

 Luckin has made headlines for setting a target of 4,500 stores this year, most no larger than a studio apartment rather than sit down cafes. Still, they would outstrip Starbucks’ count of about 3,600. For its part, Starbucks is also setting up small, delivery-focused kitchens in Alibaba’s Freshippo supermarkets and more than 2,000 of its stores are now equipped for delivery.

 Luckin, also known by its Chinese name Ruixing, faces an uphill race against a global competitor.

 The brand association, taste preference and research and development capabilities that Starbucks brings to the table are much higher barriers for Luckin to overcome.

 China has enough potential to sustain more than one chain. Chinese consumers currently drink just 4 to 5 cups per capita, compared to about 300 cups in countries like Taiwan, Hong Kong and South Korea.

Senior single-person households to increase by 2030 – research (EdgeProp.my, 16th January 2019)

 The number of single-person households will increase by about 120 million by 2030, with senior citizens outnumbering the younger generations.

 Global market research company Euromonitor International revealed in a report from the company highlighting the top 10 global consumer trends to watch.

 “The ‘Loner Living’ trend will become increasingly important as people – especially older consumers – across the world break the stigma of living alone and embrace their independent lifestyles.

 Products and services that help these consumers celebrate their proudly independent lifestyles will succeed in capturing this growing market segment.

 Although people are living more independently, they still want to connect with others. At the root of the ‘Digitally Together’ trend identified in the report is technological advancement providing authentic, life-like interactions online.

 Euromonitor International’s Lifestyle survey reported that 45% of global consumers share photos or videos weekly, up from 38% in 2015, creating digital moments that can be looked back on and relived.

 The trend will continue to shape how people connect while physically apart.

Berkeley to launch 2nd phase of Birmingham scheme (Focus Malaysia, 18th January 2019)

 Berkeley Group announces it has sold 98% from its first release of 159 units  Sales success has led to the firm bringing forward the second phase of its luxury Birmingham Snow Hill Wharf development to the Kuala Lumpur market  Knight Frank and Savills, on behalf Berkeley Group’s newest division St Joseph, is set to launch the second phase of Snow Hill Wharf apartments at The Westin, Kuala Lumpur on 19th and 20th January.

 FTSE 100, Berkeley Group, brought forward the second phase of its luxury 404- apartment scheme in Birmingham to the Kuala Lumpur market after high demand saw 98% of first round units sold to domestic and international buyers.

 The new apartments, priced from £200,000, will be officially launched at The Westin, 199, Jalan Bukit Bintang, 55100, Kuala Lumpur, on 19th and 20th January.

 The strong sales performance from Berkeley Group follows new data from Knight Frank in its Birmingham Report forecasting that residential property prices in the city and wider West Midlands will rise by 10.8% over the next five years. Average residential prices in Birmingham have already climbed 45% over the last decade.

 Delivering a much-needed supply of residential properties at the renowned Berkeley Group standard, Snow Hill Wharf will include a mix of one, two and three-bedroom apartments - offering picturesque views of the city and its growing skyline.

 The latest apartments will be located in Snow Hill Wharf’s The Fazeley and The Colmore buildings – paying heritage to the development’s close proximity to the Birmingham and Fazeley Canal, as well as the iconic Colmore business district.

 Tim Ridges, Head of Sales and Marketing at St Joseph, said: “Birmingham’s property market is on the rise. A growing appetite for high-quality homes in the UK’s second city has meant that the sales of Snow Hill Wharf have been exceedingly strong, with the waterside scheme attracting the attention of global buyers.

“Berkeley Group is committed to Birmingham’s continued growth and by playing a role in reshaping its residential offering, we aim to attract more people to this great city. It is a centre for high rental yields and capital growth, yet much more affordable than London, with residents on average 11% financially better off each month than those in the capital and South-East.”

 Outside of living quarters, the 288,000 sq ft development also features three canal side landscaped podium gardens. Residents of the scheme will be able to access a host of amenities, including a gymnasium with a sauna and steam room, a luxury lounge and cinema room, and exclusive access to a 24/7 concierge service.

 Dominic Heaton Watson, Associate Director International Project Marketing, Knight Frank Malaysia, said: "We are delighted to introduce The Colmore and The Fazeley to the Kuala Lumpur investor community, having seen such appetite for the initial release. Malaysian investors have a strong affinity with the UK education system and Birmingham offers world-class universities within easy reach of Snow Hill Wharf. “Birmingham is now firmly on the map for global investors. It has become the regional city of choice for savvy buyers looking for long term growth prospects. The city continues to offer investors strong capital appreciation and rental yield prospects. According to Knight Frank’s latest forecast, residential property values in Birmingham are predicted to rise by 5% year-on-year until 2020.”

 St Joseph is building on this market momentum and has already announced the purchase of its second site in Birmingham - a £200 million mixed-use development called Eastside Locks.

 For more information visit the Knight Frank project page at https://bit.ly/2AS7C0P

The Colmore & The Fazeley, Snow Hill Wharf, Birmingham, UK. Stylish newbuild apartments by Berkeley Group St Joseph from just £200,000. Private 1-1 appointments via [email protected] / +6010 438 9169