No electricity tariff surcharge for domestic consumers in January-June 2020
The electricity tariff in Peninsular Malaysia for domestic consumers will be maintained while the surcharge for commercial and industrial users will be reduced effective Jan 1 until June 30 next year. Minister of Energy, Science, Technology, Environment and Climate Change Yeo Bee Yin said the Cabinet had agreed to set the rates based on the ‘Incentive Based Regulations’ (IBR) mechanism. She said the surcharge on commercial and industrial users was reduced in light of lower fuel costs over the last 6 months. IBR, a mechanism for electricity tariff setting with incentives to improve efficiency, was implemented in 2015 and reviewed every three years. (The Edge)
Iskandar Waterfront considering IPO as early as 2020
Iskandar Waterfront Holdings Sdn. Bhd. is considering an initial public (IPO) offering as early as next year, partly to help fund the US$33.5 billion Bandar Malaysia project, according to sources. The company known as IWH is working with at least one adviser for the listing that may fetch a valuation of about RM30 billion (US$7.2 billion). Bandar Malaysia was conceived under 1MDB but cancelled in 2017. In April, the government gave the developers another chance to revive the project in Kuala Lumpur. IWH holds a 60% stake in IWH-CREC Sdn, the joint venture assigned to build Bandar Malaysia, with China Railway Engineering owning the rest. The IPO discussion comes as the real estate market struggles with persistent oversupply. (NST Online)
Industrial properties see strong growth
Industrial properties, which had been underrated in the past, are a bright spot in the current lacklustre property market, said CBRE|WTW Malaysia managing director Foo Gee Jen. He pointed out that the industrial sector has seen strong growth, with logistics and warehousing complementing Malaysia’s potential as a distribution hub. “You can tell the growth of the industrial sector from the returns from REITs (real estate investment trusts) that focus on industrial [properties]. Currently, industrial properties can get a [rental] yield of 9% to 10%. The sector has been underrated,” Foo said, adding that hotel is also a growth sector due to the increasing arrivals of affluent tourists. (The Edge)
IGB to dispose of London property for RM1.27bil
IGB Bhd’s wholly owned subsidiary, Verokey Sdn Bhd and Tower Ray Ltd are planning to sell their stakes in Black Pearl Ltd for £250 million (RM1.27 billion). Black Pearl, in which Verokey and Tower Ray hold a 50% stake each, owns the freehold title to the land known as 18 Blackfriars Road, SE1, London. Verokey and Tower Ray had signed non-binding heads of terms with Hero Inc Ltd, Staycity Ltd and BSW Land and Property LTD for the disposal. IGB said the head of terms provide exclusivity for the purchasers until Feb 7, 2020. A full announcement will be made in the event that the parties execute a sale and purchase agreement. (The Sun Daily)
Bill tabled to allow transfer of husband’s EPF contributions to wife
A bill was tabled to enable the transfer of contributions of a member of the Employees Provident Fund into the account of another member of the fund who is or are his lawful wife or wives. The bill, proposes the contributors to make an application to the EPF for the transfer by submitting the relevant particulars or documents, and then choose for it to be done on a monthly basis or in accordance with such other period. However, in the event of a divorce or death of the wife, the contributor may apply to cease the transfer by submitting the relevant particulars or documents. (Malay Mail)