Gov't enhances property valuation system

By Farah Wahida:

The government’s Valuation Information System is set to be upgraded using remote sensing technology and geographical information system (GIS), reported The Sun Daily.

Notably, the technology will be used to create a comprehensive database of property valuations across Malaysia by combining transaction data and property valuation, along with geographic data obtained from satellite remote sensing.

Along this line, the Valuation and Property Service Department (JPPH) has inked a memorandum of understanding with the Malaysian Remote Sensing Agency (ARSM) yesterday.

According to JPPH Director-General Datuk Abd Hamid Abu Bakar, the collaboration follows the success of a pilot project in Putrajaya to improve the valuation process.

“The present Valuation Information System has been used since 1997 but we have to upgrade to be competitive. Thus there is a need for JPPH to come up with an innovative and cutting-edge system to speed up our delivery system.”

Abd Hamid explained that the cooperation between ARSM and JPPH ensures that the department will not be left behind. However, the technology transfer is a long-term process for the department.

Nonetheless, “the system will make it easy for JPPH to implement on screen valuation,” he noted, adding that it will also save time and reduce operation costs, especially for properties that are difficult to access such as those located in rural areas.

Selangor project freeze will adversely affect contractors

By Farah Wahida:

The state government’s decision to freeze federal projects in Selangor such as the light rail transit (LRT) extension project and other highway-related projects is a bad move, said analysts.

“We are disappointed by the state’s action to consider freezing the light rail transit (LRT) project,” said Hong Leong Investment Bank (HLIB) Research in a report.

“The extension project has already been delayed and further delays will result in cost overruns and prolong the traffic congestion and inconvenience faced by residents staying nearby.”

In addition, site workers and machinery would be left idle, revenue recognition would be delayed and the project freeze may lead to higher costs if material prices rise later on.

“We are negatively surprised by this news,” added Alliance Research.

“A freeze on Federal funded jobs in Selangor would have an adverse impact on the contractors involved.”

Meanwhile, HLIB Research’s latest checks on the concerned projects revealed that the LRT Extension project is still on-going.

The research house thinks that the government’s “freeze” would likely affect projects that have not yet started.

On the other hand, HLIB Research told StarBiz that highway-related projects are more likely to be impacted as some of them have not yet been launched.

“The proposed highways that we believe will be affected are the Sungai Besi-Ulu Klang Expressway, Damansara-Shah Alam Expressway, Serdang-Kinrara Putrajaya Expressway, Kinrara-Damansara Expressway, East Klang Valley Expressway and West Coast Expressway, with total development cost of approximately RM19 billion,” said HLIB Research.

Investments into Malaysia beat target by 9.1%

By Farah Wahida:

Despite the slowdown in global investment, Malaysia still managed to draw RM162.4 billion worth of investments in 2012, up 9.1 percent from its official target and the highest in six years, reported The Business Times.

The bulk of the investments seen last year came from new and emerging technologies, particularly within semiconductor, aerospace, machinery and equipment, solar, biotechnology, oil and gas sector as well as petroleum and petrochemical products and medical devices.

Of the total investments made last year, 50.7 percent or RM20.8 billion came from foreign investments. Japan was the major contributor at RM2.8 billion, followed by Saudi Arabia (RM2.6 billion), Singapore (RM2.2 billion), South Korea (RM1.6 billion) and China (RM2 billion).

The report further noted that domestic investments accounted for the most in the manufacturing, services and primary sectors at 78 percent of the total investments made or RM127.6 billion.

The largest amount of approved investments was seen in Selangor at RM23.4 billion, while Sabah recorded the second largest at RM11.6 billion. It was followed by Kuala Lumpur, Sarawak and Johor at RM9.7 billion, RM9.4 billion and RM7.4 billion, respectively.

Moreover, 72 percent of last year’s approved investments were accounted for by the services sector, with the real estate as its major contributor at RM58.8 billion. Utility contributed RM12.6 billion, transport (RM6.8 billion), hotel and tourism (RM8.9 billion) and telecommunications (RM6.6 billion).

SPNB starts online housing application for youths

By Farah Wahida:

Syarikat Perumahan Negara Berhad (SPNB) has launched an online registration scheme for two affordable housing projects that target young professionals not more than 35 years old, reported Bernama.

The registration is only open to young buyers who do not own a house, but earns less than RM5,000 per month, said SPNB Chairman Datuk Idris Haron.

The two projects are Alam Prima (Phase II) in Shah Alam which comprises 646 units and the 1,224-unit Laguna Biru (Phase II) at Sungai Buloh. Both projects are expected to be ready within two to three and-half years.

Interested buyers should file their application at SPNB’s website (www.spnb.com.my). The online application closes in 10 weeks starting from 27 February 2013.

No change to minimum property price for foreigners: Chor

By Farah Wahida:

The government has no plans to raise the RM500,000 minimum property price for foreigners, according to Housing and Local Government Minister Datuk Seri Chor Chee Heung.

While the ministry had considered increasing the minimum price, it discovered that foreign buyers accounted for less than 10 percent of the overall transactions, with Singaporeans making up about five percent.

Nonetheless, “the government may review the ceiling price in future,” he noted, adding that the base price is a bit low considering the present circumstances.

Meanwhile, Malaysia is quickly becoming South East Asia’s education hub, attracting many parents from the region, especially in China, to buy houses in the country for their children, said Chor.

However, “property buyers should see the properties personally instead of making their decision solely on online information,” he told the media after launching a new property portal called Malaysia.SouFun.com.

“We’ve received many reports about false promises and advertisements for online purchases of other products.”

Hence, buyers are advised to visit Malaysia and view the properties to make sure that everything is alright. Moreover, developers can also set-up tours for buyers to view their properties, he added. 

Kota Kinabalu to remain a hotspot

By Farah Wahida:

Rapid property development in Kota Kinabalu would see more investors turning their sights away from traditional destinations to this Malaysian hotspot, said Fiabci Malaysia National Committee member Michael Geh.

“The strong Kota Kinabalu property development trend, with its domestic property product launches may end up drawing investors away from the Klang Valley, which used to be the traditional destination for savvy Sabah property investors.”

In concurring, Fiabci Malaysia President Yeow Thit Sang said Kota Kinabalu will still be this year’s hotspot with its economy boosted by tourism.

“The property sector was holding up reasonably well last year with the demand for houses within the RM250,000 to RM400,000 range but there has been a drop in demand for high-end units,” said Yeow.

He attributed the decline to the difficulty faced by investors of luxury units to find tenants.

“This is because influx of multinational corporations (MNCs) did not come as expected, coupled with the disaster in Japan as well as the economic situation in Europe and the US still struggling to recover,” he added.

While the industry is impacted by global economic slowdown, the government’s mega projects and infrastructure projects helped keep the industry stable.

Geh noted that Penang, Kuala Lumpur, Johor Bahru and Kota Kinabalu will remain as hotspots for various reasons.

“In Penang, it is because it is a domestic and international tourist destination while the Iskandar region of Johor Bahru is propelled by the government’s focus on it in recent times,” he said, adding that the growth of the Iskandar region will be fuelled by “the strong Singapore and international retail investors.”

For Kota Kinabalu, the same can be said for this hotspot as it shares the same traits with the Iskandar region.

Singapore-Malaysia rail link to push property prices

By Farah Wahida:

The upcoming high-speed rail link project between Singapore and Malaysia is expected to boost property prices in both countries, according to property analysts.

“We believe a high-speed rail link is going to boost the property value not only in Singapore but also in Kuala Lumpur,” said Dr Yeah Kim Leng, Chief Economist at RAM Holdings Group.

“We expect more foreigners especially in Singapore to commute between Singapore and possibly Johor Bahru and Kuala Lumpur, and buy more properties in Kuala Lumpur.”

Upon completion, the high-speed rail link will speed up the economic integration of the two countries, causing significant spill-over benefits to other sectors such as tourism and construction. Moreover, it would also improve the political relationship of Singapore and Malaysia, reported Bernama.

“Finally, after 15 years, this development is about to be realised,” commented Dr Nazri Khan, Vice President and Head of retail research at Affin Investment Bank.

“We believe the High Speed Rail is going to give a positive impact on both countries’ economies, especially the tourism and property sectors,” he noted, adding that property values could significantly increase once it nears completion.

Moreover, plans for the Malaysia-Singapore high-speed rail link started in 1997 and is expected to be completed by 2020.

Malaysian retail property 'attracting attention'

Article Date : 10 May 2012
News Section: Malaysia

Many commercial real estate investors in Malaysia are focused on the country's retail sector at present. This is the finding of a new Savills report into property investment markets in the Asia-Pacific region in the first quarter of this year. The firm predicted there will be "major shopping centre transactions" in the three months from April to June, highlighting several deals and developments in the pipeline. In addition, the hospitality sector was described as "quite bullish", with an increasing number of local businesses ploughing their money into this part of the Malaysian commercial property market. The study concluded: "The success of the retail sector is closely linked to tourism. Nearly 25 million tourists arrived in the country last year, with receipts edging close to RM60 billion (£12.1 billion)." In the latest Global Commercial Property survey published by the Royal Institution of Chartered Surveyors, sentiment among commercial real estate professionals was largely positive for Malaysia. Rental expectations for the coming quarter were in positive territory, while the supply of distressed assets is set to be balanced by demand. However, capital value and investment expectations were both slightly negative.

Is the Malaysian property market going into stagnation?

Article Date : 11 January 2013
News Section: Malaysia

The Malaysian property market is going into a period of stagnation, according to Allstones Group Asia. Issues of affordability and supply are creating a challenging environment, which, while stable, is not creating growth. Alstones Group Asia chairman K.H Sim does not expect house prices in the country to increase over 2013, nor will new launches decrease. However, for those considering investing in Malaysian real estate, conditions are still favourable. "Landed property would still command premium and faster sales rates, while reasonably priced condominiums and services apartments would continue to draw interest in key cities, especially those priced below RM500 (£102.95) per sq ft," Mr Sim explained. House prices will remain largely the same as in 2012, with home products that have added values, such as interest-bearing schemes, free furnishings and rental guarantees, offsetting steep prices. Mr Sim maintains that in this climate it is important to consider "affordability, location and proximity to transport, given the increasing traffic congestions". For speculators, the outlook for the Malaysian property market is slightly bleaker, with pending project deliveries threatening to flood an already saturated market. This will make it difficult for people to find tenants or sub-sale buyers. Market stagnation has been attributed to slowing GDP growth in the country over the last two years. In 2011, GDP stood at 5.1 per cent from 7.2 per cent in 2010, the Global Property Guide reported. This impacted on the national house price index in the first quarter of 2012, rising 3.7 per cent in real terms year-on-year, down from 5.9 per cent real term growth in 2011. This moderate growth continued throughout the year, with house price rises slowing considerably. However, not all experts believe 2013 will be a slow year for real estate in Malaysia and TA Securities told The Malay Mail that the market with grow, driven by domestic activity and the projects created under the Economic Transformation Programme.  A solid banking system, which has excess liquidity, will also make it easier for investors to buy.

2013 a boom year for construction: CIDB Chief

By Farah Wahida:

Malaysia’s construction industry expects a fruitful year, with around RM110 billion worth of projects, mainly driven by the Economic Transformation Programme (ETP).

Commenting on last year’s performance, Datuk Seri Dr Judin Abdul Karim, Chief Executive of the Construction Industry Development Board Malaysia's (CIDB), said that “despite the weakening world economy last year, our construction industry did very well, registering growth of about 18 percent higher compared with 2011.”

The industry secured a total of RM120 billion in projects last year, exceeding the expected RM95 billion, added Judin.

Moving forward, CIDB expects a busy construction industry, particularly with more Mass Rapid Transit projects and other ETP projects to be launched.

Judin said this after the signing of a corporate integrity pledge between CIDB and Malaysian Anti-Corruption Commission (MACC), which was in line with efforts to ensure responsibility, integrity and transparency in all dealings related to the public and construction industry practitioners.

CIDB will work with MACC to build awareness among CIDB officials and industry players on such issues.

Separately, Judin noted that Indonesia and Myanmar will provide great opportunities for the local construction players, given increasing demand for infrastructure due to their growing populations. With their experience and expertise, local contractors are fit to cater to these countries’ construction needs. 

Malaysia hotel voted among most romantic in Asia

By Farah Wahida:

Malaysia’s Casa del Mar Langkawi has been chosen as Asia’s second most romantic hotel by the world’s biggest travel portal TripAdvisor, reported The New Straits Times.

The boutique beach resort features 34 sea-facing rooms and has been very popular with couples seeking a truly romantic getaway.

According to the resort’s General Manager Tom Blachere, the award is not only an honour to Casa del Mar Langkawi but also for the Malaysian tourism industry, since it signifies that the country is a truly memorable destination.

“We would like to thank our guests for their continuous support and we look forward to delivering the highest service standards possible to ensure that they keep coming back,” he added.

Barbara Messing, Chief Marketing Officer at TripAdvisor, commented: “The awards are based on feedback from couples who have stayed at these hotels and given them the highest romantic stamp of approval.”

Notably, the reviews and opinions were gathered over a period of one year, with emphasis on the feedback from those who have marked the review form that they stayed at the hotel as a ‘couple’.

The five most romantic hotels in Asia include the Baros Maldives at North Male Atoll in Maldives, followed by Casa del Mar Langkawi at Pantai Cenang in Malaysia and Thailand’s Layana Resort and Spa.

Rounding off the top five are Maldive’s Veligandu Island Resort and Constance Moofushi.

KL to host Asia Pacific Property Awards 2013

By Farah Wahida:

The annual Asia Pacific Property Awards and the Asia Pacific Hotel Awards will be held on 9 to 10 May at the Shangri-la Hotel, Kuala Lumpur, as part of the 2013 Asia Pacific Property & Hospitality Show.

The finest developments, architecture and interior design from 23 countries will be recognised in the annual awards ceremony, which is sponsored by Virgin Atlantic and Samsung.

Aside from the two awards ceremonies, the event will also serve as a platform for renowned developers to showcase their projects, build networks and participate in various seminars and discussion tables.

Notably, the Asia Pacific awards is part of the global International Property Awards, which has similar programmes in Arabia, Africa, the Americas and Europe. The 19-year old event covers both residential and commercial developments.

Winners from the Asia Pacific region, which were determined through a rigorous process involving a panel of over 60 experts, will move to compete in the International Property awards.

Stuart Shield, President of the International Property Awards, said, “Asia Pacific consistently proves to be the hardest region to beat when it comes to competing internationally for the highly coveted World’s Best awards.”

“The majority of attendees at our awards events are CEOs, presidents, and managing directors, or from the highest echelons of their companies,” he added

“Our networking events and showcase prior to the awards ceremonies allow these VIPs to interact in a relaxed but professional setting.”

Property investors look beyond Malaysia

By Farah Wahida:

Despite a more cautious sentiment from real estate investors, Malaysians are setting their sights on overseas properties, reported The Borneo Post.

“Today’s investors are more savvy and receptive of the idea of investing in international properties to tap opportunities away from home,” said Seulyn Wong, a Property Investment Strategist at Ironfist Australia.

The driving force behind this is the availability of specialist property firms that help investors acquire real estate in other countries. Typically, these companies provide research, support and facilitation to clients so that they can quickly act on an offshore acquisition.

In fact, she has personally handled many Malaysian investors in the past two year. Apart from the traditional favourite Melbourne, property hunters have also ventured in Perth, Sydney, Brisbane and Adelaide.

“Territory is no longer the inhibition, they go where opportunities exist.”

Moreover, even Malaysian banks are providing mortgages for Malaysian buyers planning to invest in overseas property. For instance, Maybank has launched loans for properties in Melbourne and London.

Thanks to the availability of such financing scheme, the number of Malaysians investing in other countries is expected to increase.

Meanwhile, most people in Australia prefer to live in an apartment rather than a house, revealed Australia’s latest census.

“With the rising cost of transportation, people want to live near to where they work. They no longer wish to spend too much time on congested roads and be stuck in heavy traffic,” she noted.

“Even retired couples are selling their traditional large homes. They want to be able to ‘lock and leave’ to go for frequent holidays and not to be bothered with gardening and house maintenance.” 

Property investors look beyond Malaysia

By Farah Wahida:

Despite a more cautious sentiment from real estate investors, Malaysians are setting their sights on overseas properties, reported The Borneo Post.

“Today’s investors are more savvy and receptive of the idea of investing in international properties to tap opportunities away from home,” said Seulyn Wong, a Property Investment Strategist at Ironfist Australia.

The driving force behind this is the availability of specialist property firms that help investors acquire real estate in other countries. Typically, these companies provide research, support and facilitation to clients so that they can quickly act on an offshore acquisition.

In fact, she has personally handled many Malaysian investors in the past two year. Apart from the traditional favourite Melbourne, property hunters have also ventured in Perth, Sydney, Brisbane and Adelaide.

“Territory is no longer the inhibition, they go where opportunities exist.”

Moreover, even Malaysian banks are providing mortgages for Malaysian buyers planning to invest in overseas property. For instance, Maybank has launched loans for properties in Melbourne and London.

Thanks to the availability of such financing scheme, the number of Malaysians investing in other countries is expected to increase.

Meanwhile, most people in Australia prefer to live in an apartment rather than a house, revealed Australia’s latest census.

“With the rising cost of transportation, people want to live near to where they work. They no longer wish to spend too much time on congested roads and be stuck in heavy traffic,” she noted.

“Even retired couples are selling their traditional large homes. They want to be able to ‘lock and leave’ to go for frequent holidays and not to be bothered with gardening and house maintenance.” 

Lexis eyes RM100m in GOR by 2015

By Farah Wahida:

Hotel firm Lexis Hotels and Resorts Sdn Bhd eyes to achieve gross operating revenue (GOR) of RM100 million by 2015, driven by its existing hotels and two upcoming projects, reported The Malaysian Reserve.

Notably, Lexis Hibiscus in Port Dickson as well as Lexis Suites in Penang are both expected to be completed by end-2014.

“For the year 2014, revenue will continue to be on an upward trend. Even for hotels in Kuala Lumpur, when they see an improvement of five percent to eight percent from the year before, it is already considered very good,” said Jasbir Singh, Vice President of Finance at Lexis.

This year, Lexis targets its GOR to grow by 5.8 percent to RM54 million from RM51 million last year. This boost will be supported by cash flow from existing hotels the Lexis and Grand Lexis in Port Dickson.

Via its expansion plan, Lexis aims to manage at least five more hotels across various areas such as Johor, Malacca and Negri Sembilan, in the next four years.

Aside from West Malaysia, the group will also explore opportunities in the east, said Steve Woon, Lexis Vice President of Sales and Marketing.

Among the firm’s best assets is the Grand Lexis Port Dickson resort, which boasts a unique concept of indoor swimming pools per unit. In fact, the Malaysia Book of Records warded for having the “most number of swimming pools in a resort.”

Meanwhile, the upcoming Lexis Hibiscus will not only come with this feature but also have an additional sauna per unit.

Low-rent houses as prostitution den?

By Farah Wahida:

Residential properties with low rentals are potential havens for prostitution thanks to their cheap cost and likelihood of not getting caught, reported Bernama.

With a minimum monthly rental of around RM1,000, syndicates boosted their profits via daily rentals imposed on prostitutes occupying the houses, said Federal Police (Bukit Aman) Anti-Vice, Gambling and Prostitution Division (D7) Principal Assistant Director Datuk Abdul Jalil Hassan.

“Carrying out such activities in housing premises is much cheaper than shophouses, which costs RM2,000 or more per month to rent and usually bungalows, terrace homes and condominiums house these activities to fool authorities.”

“Prostitutes also pay a daily rental of about RM50 for staying there, so imagine how much they make if five to 10 people live there,” he noted, adding that syndicates and home owners are usually involved in the illegal activity.

Typically, people who use the service of the prostitutes in these houses are regular clients and they know the security code needed to enter the flats. However, they are not allowed to take the prostitutes out.

Moreover, “individuals found abetting such activities, either the syndicate or home owners, can be detained under Section 373 of the Penal Code which carries a maximum jail sentence of 15 years and fine upon conviction,” he added.

Solid demand for Kuantan homes despite Lynas

By Farah Wahida:

Kuantan is expected to attract more house hunters and renters despite the controversial Lynas Rare Earth Plant, according to the Real Estate Housing Developers Association (REHDA Pahang branch).

Not a single buyer was concerned about Lynas when they acquired a property in Kuantan, said Cheoh Chee Guan, Chairman of REHDA Pahang.

“Nobody asked any question about it (Lynas) at all. This is reflected in brisk demand for houses in areas like Balok which are priced between RM150,000 to RM180,000 per unit.”

Moreover, Kuatan’s property market is generally stable and prices are growing slightly since 2011, noted Cheoh, adding that 8,000 houses (new and old) were sold in 2012. In particular, “Balok (near Gebeng) is popular among house buyers as most of the units are single storey and within their budget.”

Aside from the establishment of new industries and factories in Gebeng, the launch of the Malaysia-China Kuantan Industrial park (MCKIP) is also expected to cause an influx of workers, which would fuel the demand for residential properties.

Specifically, top executives and highly-qualified technical employees would prefer expensive units in the town area that are priced from RM180,000 to RM420,000, while the more costly apartments and bungalows will be sought-after by expatriates.

“As for general workers, they will normally seek affordable houses in Gebeng and Balok, and with-in the next three to five years, there will be a significant rise in demand when MCKIP is in full operation.”

The rental market is also expected to flourish thanks to the entry of general workers.

“At present, rental fees are stable at between RM700 and RM2,000 per unit but this will change as new workers come and seek temporary residence in Kuantan,” he added.

KL to release rules on affordable housing

By Farah Wahida:

In a bid to invite more people to live in Kuala Lumpur, a set of guidelines for affordable housing in the city will be released by the end of February, said Kuala Lumpur Mayor Datuk Seri Ahmad Phesal Talib.

The Kuala Lumpur City Hall (DBKL) and The Federal Territories and Urban Wellbeing Ministry are now in the final stage of preparing said guidelines.

“The concept of affordable housing is meant for the middle-income earners as they are not entitled to buy low-cost houses and, at the same time, cannot afford high-end units... Therefore, controlling the price and setting specific sizes are among the guidelines,” noted Ahmad Phesal.

“Developers will be required to build units priced below RM300,000, with a built-up area of at least 800 sq ft.”

“We have started imposing such guidelines for some joint-venture housing projects,” he noted.

Three areas across KL have been identified as sites to develop affordable homes. Among these is a 1.6ha land in Sungai Besi that will yield around 300 affordable homes.

“Other projects in the midst of discussions include a joint-venture with Berjaya Group in Desa Tasek, and with another company developing more than 250 units in Setapak.”

Over at Setapak, a developer would set aside 50 percent of a project’s units for affordable homes leaving the rest as luxury homes, he added.

Property sector to pick up after GE

By Farah Wahida:

Malaysia’s property market is expected to improve after the 13th general election (GE), according to Tan Sri Leong Hoy Kum, Group CEO and Group Managing Director of Mah Sing Group.

“After the GE, I believe the property market will be more vibrant. There’ll be government land ready for tender such as the Rubber Research Institute Malaysia land in Sungai Buloh that we’re keen.”

Malaysia is also doing well compared to other countries, and as far as Mah Sing is concerned, it is business as usual, he said after the group’s extraordinary general meeting (EGM) held yesterday.

At the meeting, shareholders also approved the company’s proposed renounceable rights issue with free warrants to raise up to RM400 million. This also includes a one for every five share bonus issue for stockholders.

The fund raising exercise will partly finance the group’s property projects, including working capital and land acquisition costs. The new warrants and shares are also expected to be listed by March.

Presently, Mah Sing is Malaysia’s second biggest developer by sales value, and is eyeing RM3 billion worth of sales this year.

For 2013, its sales will be boosted by six new property launches with a combined gross development value of RM7.4 billion. They include Sutera Avenue in Kota Kinabalu, The Meridin@Medini in Iskandar, Mah Sing iParc@Tanjung Pelepas, Ferringhi Residence in Penang, as well as Klang Valley’s Southville City and M Residence 2.

The group is also assessing new landbanks in Penang, Klang Valley, Johor Bahru, Kota Kinabalu and Greater Kuala Lumpur for new acquisitions this year.

MBSB eyes new product for foreign property buyers

By Farah Wahida:

Spurred by hot buying demand, Malaysia Building Society Bhd (MBSB) will offer ringgit-denominated loans to locals and expatriates keen on overseas properties, particularly in the UK and Australia markets.

According to MBSB President and Chief Executive Officer Datuk Ahmad Zaini Othman, they are now exploring the possibilities of launching a new product, probably by this year.

“We are just exploring the market right now. So, we cannot give a number at present. I think there would be potential for the niche market, the high net worth individuals.”

Notably, MBSB achieved a 53 percent gain in pretax profits to RM656.2 million for 2012. This was buoyed by the culmination of transformation initiatives done in four years, said Ahmad Zaini.

Moreover, opening new income streams in 2010 through a new retail business has supplied the bulk of fee-based income. Recovery and collection was also supported by the computerisation process as well as technological upgrades.

“We are able to dissect and understand our customer base better. Earlier, we did not have this capability. It was like flying a plane without radar,” noted Ahmad Zaini.

Malaysian SPV to put up RM2.4bil Bangladesh project

By Farah Wahida:

Two Malaysian companies will form a special purpose vehicle (SPV) to undertake a RM2.4 billion development project in Bangladesh, according to Datuk Seri S. Samy Vellu, Special Envoy to India and South Asia.

Samy Vellu said the SPV would sign two memoranda of agreement (MoA) for the construction of the development which will comprise 140 blocks of 16-storey flats at Uttara in Dhaka, Bangladesh.

“We have identified the two companies. Within the next two to three months, we would be signing the memoranda,” he said in a report by Bernama.

He also said that Malaysia is currently under the final stage of submitting the drawing plans for the development of a 40.5ha land in Andra Pradesh, adding that the RM3 billion project would be a milestone for Malaysian contractors following its approval.

“I have spoken to India's Minister of Housing and Urban Poverty Alleviation. He was very interested with our plan and I am hopeful that it will be approved.”

Meanwhile, Malaysian contractors are also said to secure a 1,400km road construction project in South Sudan which would connect Juba with Djibouti and Ethiopia.

Subang Jaya Giant hypermarket gets new life

By Farah Wahida:

The Giant hypermarket in Subang Jaya, Selangor will reopen today following the completion of a RM80million renovation that lasted nearly two years, according to GCH Retail (M) Sdn Bhd, the supermarket’s owner and operator.

The former one-storey outlet was redeveloped into a three-level one-stop shopping centre, with anchor tenant Giant hypermarket now occupying almost 80,000 sq ft, said Ian Cruddas, Commercial Director at GCH Retail.

Notably, the shopping complex was the first local hypermarket in Malaysia and was known as the Giant Cash & Carry during its opening in April 1994. However, its owner decided to redevelop it in 2010.

“The needs of our customers have evolved over the years. So have their tastes and shopping habits,” noted Cruddas during the opening preview of Giant Hypermarket yesterday.

“We assigned our team to create and design a new mall that would offer complete retailing solutions in a holistic manner to cater to everyone in the family including the young and the old.”

Thanks to its significant makeover, Giant Subang Jaya Mall will continue to be the choice one-stop shopping destination for Subang Jaya residents as well as those from nearby areas, said the company.

Beside Giant hypermarket, the shopping complex also houses 60 other tenants, which offer various products such as apparels, beauty care, hi-tech gadgets, food and beverages and financial services.

Cruddas revealed that GCH Retail eyes seven new Giant outlets this year and will also upgrade 15 existing Giant outlets in Malaysia.

Iskandar woos investors from Surabaya, Indonesia

By Farah Wahida:

A delegation from the Iskandar Regional Development Authority (IRDA) is headed to the business community of Surabaya, Indonesia between 31 January and 1 February to promote Iskandar’s investment potential.

This follows IRDA’s active promotion of the economic region to Indonesia’s business communities in Jakarta, Bali and Makassar. Notably, IRDA Chief Executive Datuk Ismail Ibrahim and Johor Chief Minister Datuk Abdul Ghani Othman will head the delegation.

The mission aims to brief Indonesian investors on areas of Iskandar where they can invest, said Syahril Syazli Ghazali, Economic Advisor at the Malaysian Embassy in Jakarta.

“Among the areas with potential to attract investments from Indonesia are the creative industries, hospitality, theme parks, logistics as well as financial and health services.”

The delegation will also meet up with individuals from the local business community including members of trade councils and business chambers, he said, adding that Iskandar can easily attract investments from Indonesia if IRDA can offer special incentive packages for the investors.

At present, many Indonesian tourists are visiting Iskandar Malaysia, especially after the opening of the LEGOLAND, Johor Premium Outlets and the Puteri Harbour Family Theme Park.

Specifically, tourist arrivals from the country rose to 2.3 million in 2012 compared to 2.1 million during the previous year.