BNM: Houses priced RM300,000 and above are unaffordable
Houses in the price range of between RM300,000 and RM500,000 should not be categorised as affordable housing for households earning the median income, said Bank Negara Malaysia (BNM). Based on the Housing Cost Burden approach, the maximum price of an affordable house was estimated at only RM282,000, given the 2016 median household income of RM5,228. 4Q17 data from NAPIC showed that unsold residential units priced below RM300,000 constituted the lowest share of total unsold residential properties under construction in Malaysia at 20%. The creation of an integrated housing supply and demand database was important, given the challenges of identifying the right price points in the right location for new housing supply. (NST Online)

MRCB minority shareholders advised to accept MX-1, Bukit Jalil Sentral constructions
Minority shareholders of Malaysian Resources Corp Bhd (MRCB) have been advised to vote in favour of a management contract between its 70%-owned unit Kwasa Sentral Sdn Bhd and MRCB Land Sdn Bhd to jointly develop the town centre of the Kwasa Damansara township on 64.3 acres of land in Sungai Buloh, Selangor (proposed MX-1 construction) for RM7.46 billion. The development forms part of the Kwasa Damansara township project in Petaling Jaya, and is estimated to generate a GDV of RM50 billion over the next 20 years. Separately, MRCB minority shareholders have also been advised to vote in favour of a JV to develop hree parcels of leasehold land in Bukit Jalil into a mixed development with a GDV of RM21 billion. (The Edge Markets)

Office rentals likely to see some uptick
The absorption of excess stocks in the commercial office segment, along with cost push initiatives by developers and landlords, is anticipated to drive the rental market’s reversion upwards. Savills Malaysia Sdn Bhd executive chairman Datuk Christopher Boyd said the present excess of supply has created some weaknesses in the rental market. “Office rentals in Kuala Lumpur (KL) haven’t seen a great deal of growth, which makes the city a very attractive place to set up a new business,” he said. The government needs to introduce fresh incentives to encourage office occupants to move into newer buildings that features better facilities. According to Boyd, the present office market in the Klang Valley area hovers at around 120 million sq ft and is estimated to welcome about 5% of new supplies this year. (The Malaysian Reserve)

Kossan to spend RM1.5bil on new base
Kossan Rubber Industries Bhd has acquired more than 800 acres of land in Bidor, which will serve as its new base and will feature integrated and modernised glove manufacturing facilities. The project is expected to take six years to eight years to complete at an estimated cost of RM1.5 billion. The group also has plans to dispose of two parcels of industrial land in Selangor for some RM200 million. As the Bidor land is large enough to house its manufacturing processes, the original development plans on the two Selangor land parcels have been put on hold. (The Edge Markets)

KL – Singapore is world’s busiest overseas route
A one-hour flight linking one of the world’s smallest countries with its next-door neighbour is the world’s busiest international route. Planes made 30,537 trips between Kuala Lumpur and Singapore in the 12 months to February, according to a report by OAG Aviation Worldwide Ltd – the equivalent of 84 flights a day. In terms of passenger numbers, Hong Kong-Taipei tops the list with 6.5 million people flying that route in the 12-month period. The world’s busiest air route, bar none, is between Seoul and a tiny island off the coast of South Korea. Planes made 65,000 trips between the South Korean capital and Jeju island in 2017, according to OAG. (The Star Online)