MIDA expects more MNCs to populate TRX
The Malaysian Investment Development Authority (MIDA) is expecting more multinational companies to populate Tun Razak Exchange (TRX), KL’s international financial district. MIDA has collaborated with TRX City to host foreign chambers of commerce from six of Malaysia’s prominent trading partners (India, New Zealand, France, Japan, Australia and South Korea) as part of MIDA’s initiative to highlight investment opportunities in high-impact projects like TRX to the international business community. By locating to TRX, companies can be closer to an established supply chain and matured workforce. To date, MIDA has approved 26 Principal Hub companies from different industries such as electrical & electronics, food & beverage, oil & gas and consumer products. (NST Online)
Office and retail space oversupply ‘far from over’
The oversupply of office and retail space in Malaysia is “far from over”, according to UOB Kay Hian Research. This latest remark came as it maintained a “market weight” stance on the country’s REIT landscape, “given the lack of compelling catalysts in the near term.” However, it opined that niche office building and prime retail mall segments would remain resilient in the long term. At the same time, Abdul Hadi observed that retail sales in the mass market segment is “still soft” and “remained subdued” in 2Q17, leading to flat rental reversion at mass retail malls. (The Edge Markets)
LBS Bina to buy M3 Mall owner-operator for RM105mil
LBS Bina Group Bhd is acquiring Gerbang Mekar Sdn Bhd, the mall owner and operator of the M3 Mall in Gombak, for which it will be paying RM105 million in cash and kind, to enter the retail business. The M3 Mall in Gombak, which was fully developed in the third quarter of last year, has a market value of RM107 million. Constructed on a 3.2-acre leasehold land, M3 Mall is part of a larger mixed development project known as Medan Mega Melati, which also includes M3 Residency, comprising two blocks of 16-storey service apartments built atop the mall. (The Edge Markets)
Vizione gets green light for RM280mil acquisition
Vizione Holdings Bhd has received its shareholders’ approval on its proposed RM280 million acquisition of construction-based Wira Syukur (M) Sdn Bhd. The acquisition, which was first announced in late March, will enhance Vizione’s earnings from construction segment. Post-acquisition, Vizione will continue to tender for more construction projects, as well as embark and explore some smaller scale property development projects by working closely or joint venture with the landowners. Wira Syukur is principally engaged in building, civil engineering as well as construction works. (NST Online)
Malaysia breaches RM1 trillion total trade in just seven months
Malaysia’s total trade has surpassed RM1 trillion in just seven months, the fastest period to breach the milestone. The total value stood at RM1.01 trillion in the January-July period, up 22.7% from the corresponding period in 2016. Alliance Bank said the robust double-digit exports growth was partly attributed to low-base effect, as the Hari Raya festive holidays fell on the month of July in the previous year. The research house expects domestic demand to be the main driver of growth in 2017 with the external trade sector along with the manufacturing and services sector also contributing positively. (NST Online)
The Datai Langkawi closes for 10-month restoration project
The Datai Langkawi forest and beach resort will close its doors for a 10-month restoration project, said its operator in a statement. This is the property’s most significant overhaul since opening its doors in 1993, and will entail building new components besides refreshing existing facilities. The resort’s guestrooms, suites, and villas will undergo renovations; the retail space will be refreshed while the overall landscaping will be enhanced. Moreover, a nature centre, extra spa pavilions, and fitness centre by the beach will be constructed. (The Edge Markets)
