Ringgit hits new low, foreign funds exit emerging markets
The ringgit hit a new intra-day low of 4.4250 against the US dollar, as foreign funds continue to exit emerging markets due to concerns of a rate hike by the US Federal Reserve by year-end. The KLCI followed the ringgit’s decline, dropping 6.58 points at the end of trading yesterday. While the US is expected to report “positive” figures, Malaysia will continue to be bogged down by low commodity prices, such as the drop in crude oil prices as well as the China economy slowdown and internal political issues, which have shaken the confidence of foreign investors. (The Star Online)
Developers to enjoy 50% discount by DBKL
Property developers can enjoy a 50% discount on development charges for high-density projects starting this month, announced Kuala Lumpur City Hall (DBKL). The discount served as an incentive to encourage developers to continue building the city despite the slow market. The two qualifying criteria for the discount are an increase in allowable density and an upgrade in land zoning: the development’s density or plot ratio must be more than the standard set, or involve change of land use to a higher status such as from residential to commercial. DBKL has so far approved the discount for one mixed development project in Bukit Jalil and vetting other applicants. Those who applied but have not received the development order may be considered, but DBKL will remain firm on those who have already received their development orders. (The Star Online)
The 50% discount has so far been given to one mixed-development project in Bukit Jalil. (The Star Online filepic)
Photo from The Star Online
Mah Sing to open luxury hotel by 2018
Mah Sing Group Berhad is tapping into Johor’s tourism sector by building a luxury hotel that is expected to be fully operational by 2018. The Ramada Encore Meridin hotel will have 322 fully furnished units based on a studio apartment concept, and is being developed as part of the second phase of Meridin@Medini. A franchise agreement has been signed with the world’s largest hotel company, Wyndham Hotel Asia Pacific. The four-star hotel, is strategically located at the heart of Medini with Legoland theme park, Puteri Harbour and private hospital Gleneagles within walking distance. (The Star Online)
Ecofirst expects triple revenue for FY16
Ecofirst Consolidated Bhd is expecting its revenue to at least triple in the financial year ending May 31, 2016 based on promising prospects from retail assets and property development. The company is banking on its current project in Ipoh and retail assets to bolster performance. Ecofirst’s two malls – 1Segamat in Johor and South City Plaza in Seri Kembangan, Selangor – generated turnover of RM19.5 million last year. Its latest property development, Upper East @ Tiger Lane in Jalan Kelab Golf, Ipoh has received 80% take-up rate. (New Straits Times Online)
Malaysia’s 2014 GDP per capita exceeds world average for first time
Malaysia’s gross domestic product (GDP) per capita for 2014 has exceeded the world average for the first time, reported the Global Science and Innovation Advisory Council (GSIAC). Malaysia’s GDP per capita was at US$10,830 (RM47,600) in 2014 while the average of all nations worldwide stood at US$10,804. This is a significant increase from the 2010 GDP per capita of US$8,752 which was 8% below the world average at the time. However, while Malaysia in on the path to developed country status, there is still a way to go to reach the US$15,000 goal by 2020. Meanwhile, in the report, Malaysia ranked 32nd, up one position from 33rd last year, and is the top-ranked middle-income country. (The Sun Daily)
Al-Salam REIT sees strong growth potential
Johor Corp’s Islamic-based Al-Salam real estate investment trust (REIT) sees strong growth potential in the rental rates of its Komtar JBCC Mall. The current rental of the property is at an average of RM5.63 psf, while CH Williams Talhar & Wong’s property market report note that prime rental rates in Johor Baru average RM27 psf. In addition, Jcorp has an asset reservoir of RM800 million and almost one million sq ft in net lettable area that affords further acquisition opportunities for Al-Salam. Al-Salam’s current property portfolio comprise of Komtar JBCC Mall, Menara Komtar, @ Mart Kempas, KFCH College and multiple quick service restaurant properties, bringing its total asset value to RM903.14 million. (The Malaysian Reserve)
LBS Bina hopes for more flexible property financing
LBS Bina Group Bhd is hoping for the government and Bank Negara Malaysia to come up with more flexible end financing guidelines and further incentives for first-time house-buyers. The property developer said some incentives should also be granted for second-time house-buyers who want to upgrade due to increased family members or household income. It suggested easing cooling measures, supply of more land to private developers at reasonable prices, adding value with good infrastructure, and policies to control and lower the cost of construction materials for affordable housing. (Bernama)
AEON Malaysia seeks buyer for Mahkota Cheras mall
Retailer-cum-property manager AEON Co (M) Bhd is planning to dispose of AEON Mahkota Cheras Mall – one of the group’s smaller malls – for at least RM80 million. It was revealed that AEON had last month invited bids from selected companies. Sources said that AEON Malaysia is disposing the AEON Mahkota Cheras property due to a change in business direction, which is to own larger malls that sit on at least 12 acres of land, and also to avoid cannibalism as there are several other AEON branded stores in close proximity. (The Edge Malaysia, September 28, 2015, pg 30)
