Budget 2018 to be mildly positive for market
CIMB Research is expecting Budget 2018, which is scheduled to be tabled on Oct 27, to be mildly positive for the market. Potential beneficiaries of Budget 2018 include the consumer, construction, property and healthcare sectors. According to an analyst, Budget 2018 is expected to lift social assistance and cash transfers, as well as personal income tax reliefs, thus boosting consumer sentiment. Other potential measures include improving access to end-financing for affordable housing via the Rent-to-Own scheme to affordable non-PRIMA property developments, an extension of the full waiver of stamp duty for first-time home buyers and setting up an agency to coordinate the provision of affordable housing. (The Edge Markets)
Foreign workers injured in explosion at Bandar Malaysia
Police have confirmed the explosion at the Mass Rapid Transit (MRT) station construction site in Bandar Malaysia yesterday was from an old unexploded bomb from the Second World War. Three Bangladeshi workers were seriously injured in the 5pm incident. Two of them lost their legs while another suffered injuries on the hands and legs. (NST Online)
More than 250,000 PR1MA units approved to date
As at September 2017, 259,882 units of 1Malaysia People’s Housing (PR1MA) have been approved for construction, of which 141,661 are in various stages of development, while 8,475 units had been completed with 934 keys handed over to the houseowners. Most of the PR1MA housing development projects are in Selangor, making up 19% of the total. Each PR1MA house is priced lower by 20% to 30% of the market value, and include high-rise residentials, mixed developments, and landed houses. (The Sun Daily)
MRT connectivity a big selling point for M Vertica
Property projects with a good value for money and in the right locations will attract buyers, which is why Mah Sing Group Bhd has set its eyes on Cheras its new mixed development project, M Vertica. With an estimated GDV of RM2.2bil, M Vertica will be constructed on a 11.25-acre leasehold land, which is currently occupied by Stadium Badminton Kuala Lumpur. It will comprise five high-rise towers with 3,681 units of serviced apartments. There will also be 70 units of two-storey shop lots. The most interesting part is that the project is located 600m away from Maluri MRT and LRT interchange, and 800m from Taman Pertama MRT station. Construction works are expected to begin in the first quarter of 2018. (The Star Online)
Mah Sing Group Bhd project manager Yeoh Chee Beng and chief executive officer Datuk Ho Hon Sang with the mock-up of M Vertica. (Photo from The Star)
Sanichi plans cash call to raise RM99mil for property projects
Loss-making Sanichi Technology Bhd is proposing a rights issue with warrants to raise some RM59.26 million on base case scenario – an amount that is more than its existing market capitalisation of RM48.9 million. The fresh fund raised is to be used mainly for its property development activities. The precision plastic injection mould manufacturer, which diversified into property development in 2014, plans to utilise the proceeds to identify and acquire landbank at strategic locations in Malaysia, as well as joint ventures with third-party land owners. (The Edge Markets)
Sunway buys KFH’s stake in South Quay project
Sunway Bhd is buying out Kuwait Finance House (M) Bhd’s (KFH) 20% stake in the 123-acre Sunway South Quay project in Bandar Sunway, Petaling Jaya, for RM136.65mil. In addition, Sunway Lagoon Sdn Bhd (SLSB) – which directly owns project developer Sunway South Quay Sdn Bhd (SSQ) – will repay RM73.35mil in cash to settle the musyarakah capital invested by KFH in SSQ. SLSB will have a higher ownership of Sunway South Quay, which has a GDV of RM3.7bil, and is expected to contribute positively to the current and future earnings of the group. (The Star Online)
Ireka bags RM60.7mil contract from Pantai Medical Centre
Ireka Corp Bhd’s wholly-owned subsidiary, Ireka Engineering & Construction Sdn Bhd, has accepted a letter of award from Pantai Medical Centre Sdn Bhd worth RM60.74mil to complete unfinished refurbishment works at its facility in Jalan Bukit Pantai, Kuala Lumpur. Ireka Corp said the contract was expected to contribute positively to the group’s earnings for the financial years ending March 31, 2018 and March 31, 2019. (The Star Online)
Carey Island port necessary to handle future capacity
The planned Carey Island port development is necessary to handle future demand once Westports Holdings Bhd’s expanded terminal reaches full capacity in 2030, said Transport Minister Datuk Seri Liow Tiong Lai. In August, Westports announced it would expand its container terminal facilities by 10 more berths on top of its existing nine container terminals. Based on the national Logistics and Trade Facilitation Masterplan, the government plans to develop Port Klang as a regional maritime centre to handle 16.4 million TEUs by 2020. (The Edge Markets)
Khairy: Malaysia to be cashless society by 2050
Malaysia is heading towards becoming a cashless society, said Youth and Sports Minister Khairy Jamaluddin. He said that the goal would be to reduce the physical transactional element to payment so that it becomes easier for the user. However, he said that it is important that these transactions are safe and ubiquitous for all Malaysians. However, he also expected resistance from the public, in particular the older generations. Khairy warned that there were also risks to such a system and personal finance education would be crucial. (The Star Online)
