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Ikano Centres Introduces ‘Klippa,’ A Mixed-Use Centre That Will Be Connected To IKEA Batu Kawan.

Klippa, Ikano Centres’ latest retail destination and mixed-use development, was launched at a media event in Penang.

The project, which marks Ikano Centres’ first excursion into the northern region, intends to be the cultural heart and hub for the developing Batu Kawan township. Ikano Centres is a subsidiary of Ikano Retail, which owns IKEA furniture stores and shopping malls in five countries.

Klippa will offer a unique retail experience via an integrated shopping centre spanning 1.6 million sq ft of gross leasable area (GLA), housing over 300 brands including Mr DIY, A&W drive-thru, and TMG Plus Supermarket, with direct access to the Second Penang Bridge and a seamless connection to IKEA Batu Kawan.

Klippa is a suitable wordplay of Batu Kawan, according to Ikano Centres shopping centre and mixed-use director Adrian Mirea. Klippa means rock or friend in Swedish.

Klippa’s first phase opened in December 2019 with 20 brands and 80,000 square feet of GLA. Then, in November 2021, a fast-food drive-thru was opened, with McDonald’s as the first tenant.

Klippa also plans to push the local arts and culture scene forward, in keeping with the Penang state government’s goal of bringing arts and culture to Batu Kawan.

Ikano Centres is collaborating closely with Aspen Vision City and partners at the Batu Kawan Industrial Park (BKIP) to present Klippa as “the area where people can live, work, and create memories together,” according to Bakker.

In the meantime, Ikano Centres will look into further commercial and residential opportunities (to be constructed in phases) to complement Klippa and fulfil Batu Kawan’s growing community of students, families, and professionals at the nearby BKIP.

 

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PETALING JAYA (May 19): Ikano Centres has officially unveiled Klippa – its new retail destination and mixed-use development – in a media event in Penang on Tuesday (May 17).

The development aims to be the cultural heart and hub for the growing Batu Kawan township – marking Ikano Centres’ first foray into the northern region. Ikano Centres is a part of Ikano Retail, which owns the IKEA furniture stores in five countries and shopping centres anchored by IKEA.

With direct access to the Second Penang Bridge and a seamless connection to IKEA Batu Kawan, Klippa will offer a unique retail experience via an integrated shopping centre spanning 1.6 million sq ft of gross leasable area (GLA), housing over 300 brands including Mr DIY, A&W drive-thru and TMG Plus Supermarket.

According to Ikano Centres shopping centre and mixed-use director Adrian Mirea, Klippa means rock or friend in the Swedish language – which is a perfect wordplay of Batu Kawan.

“As we continue to strengthen our presence in Malaysia, we want to introduce the Ikano Centres retail experience to communities in the northern region to mirror the success of our meeting places in central and southern Malaysia.

“With Klippa, we aim to be the rock in this growing community and to transform Batu Kawan into a successful commercial and leisure hub in Penang. The emphasis of this meeting place development is to provide visitors in the region a holistic customer experience, enhanced with convenience for all their shopping, dining, entertainment and leisure needs,” said Mirea, adding that Klippa is set to create 5,000 job opportunities for locals.

The first phase of Klippa was launched in December 2019 with 20 brands over 80,000 sq ft of GLA. Next, an F&B drive-thru space was introduced in November 2021 with McDonald’s being the first tenant.

Additionally, Klippa also intends to drive the local arts and culture scene in line with the Penang state government’s vision to bring arts and culture to Batu Kawan.

“Since its opening, the first phase of Klippa has enjoyed a 98% lease rate, with established tenants such as IKEA, Harvey Norman and McDonald’s, which have given us the motivation to continue developing and creating spaces for our communities. As we grow, we will continue to evaluate the needs of our customers in North Malaysia and design our Klippa meeting place accordingly,” said Ikano Centres commercial director Arnoud Bakker.

Bakker added that Ikano Centres is working closely in collaboration with Aspen Vision City and partners at the neighbouring Batu Kawan Industrial Park (BKIP) to position Klippa as “the place where people can live, work and create memories together”.

Meanwhile, Ikano Centres will also be exploring additional commercial and residential opportunities (to be developed in phases) to complement Klippa, meeting Batu Kawan’s growing community of students, families, and professionals at the neighbouring BKIP.

Source: Edge Prop

Kevin Hans Jun Wei Samuel No Comments

Malaysia’s Housing Market Will Be Unaffected By The Hike In OPR

The recent decision by Bank Negara Malaysia (BNM) to raise the Overnight Policy Rate (OPR) by 25 basis points to 2.00 percent will have no negative impact on the housing market in 2022 and 2023.

Kashif Ansari, co-founder and CEO of the Juwai IQI group, said BNM has taken care to maintain the country’s economy even through the worst of the pandemic.

Other nations were experiencing very high inflation as a result of the global commodity price surge, Kashif explained, but Malaysians were spared since the government provided fuel subsidies.

He stated that from 2004 and 2020, Malaysia’s OPR only dropped as low as 2.0 percent in eight quarters, making the last two years the first time the rate was as low as 1.75 percent in history.

He explained that rather than posing a threat to the housing market, the hike in the OPR to 2.0 percent reflected the economy’s recovery and BNM’s belief that the economy no longer required the extra support of ultra-low interest rates.

“We expect the home market will respond positively to the expanding economy, household income, and employment this year and in 2023.” This year, the gross domestic product is predicted to increase by up to 6.3 percent. The bank forecasts increased domestic demand and exports.

“As a result, we expect good economic conditions to support strength in the real estate market in the second half of this year and into 2023,” he added.

 

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KUALA LUMPUR (May 19): Bank Negara Malaysia’s (BNM) decision to lift the Overnight Policy Rate (OPR) by 25 basis points to 2.00% recently will not negatively affect the housing market in 2022 and 2023.

Juwai IQI group co-founder and chief executive officer Kashif Ansari said BNM has taken a careful step in supporting the nation’s economy even during the worst of the pandemic.

“Inflation is on a rampage in many parts of the world, but it is not on a rampage in Malaysia with headline inflation will likely be somewhere between 2.2% and 3.2% this year.

“That is a manageable rate. There is still room for employment and business activity to grow significantly without causing inflation to surge,” he said in a statement on Wednesday (May 18).

Kashif shared that other countries were experiencing very high inflation due to the spike in global commodity prices, while Malaysian were spared as the government was providing fuel subsidies.

In the wake of the global financial crisis between 2004 and 2020, he noted that Malaysia’s OPR only dropped as low as 2.0% during eight quarters, hence, the past two years represented the first time in history that the rate was as low as 1.75%.

He said rather than creating a risk for the housing market, the increase in the OPR to 2.0% was a reflection of the economic rebound, reflecting BNM’s view that the economy no longer needed the extra support of ultra-low interest rates.

“We believe the housing market will react positively this year and in 2023 to the growing economy, household income, and employment. With the gross domestic product expected to climb as much as 6.3% this year. The bank is projecting stronger domestic demand and higher exports.

“Therefore, we expect positive economic conditions to drive strength in the real estate market that will really gather pace in the second half of this year and in 2023,” he added.

Source: Edge Prop

Kevin Hans Jun Wei Samuel No Comments

Gurney Wharf Project To Be Completed By 2025

Following a ground-breaking ceremony at Gurney Drive, the much-anticipated Gurney Wharf project, an initiative of the Penang government, will progressively open to the public as it enters the development phase.

The project, expected to cost RM200 million, will have numerous components classified into Priority One and Priority Two, according to Chief Minister Chow Kon Yeow. By 2025, the project should be completed completely.

Priority One, he explained, is essentially a green park that would begin at Pangkor Road and would not necessitate any physical construction. It is expected to take 12 months to complete.

Priority Two, which would include a multi-story parking garage, an iconic hawker centre, and a jetty shoreline, will be completed in 24 months or slightly longer, he said.

He predicted that the Gurney Wharf will be a great draw, drawing even more people than the Esplanade seawall project, which was jam-packed after its formal opening. The project also aligns with Penang2030’s goal of a “Family-Focused Green and Smart that Inspires the Nation.”

Chow stated that the state government was aware of the contractors’ current difficult condition as a result of rising material costs and that the matter would be addressed if the contractors raised it with the state government.

The decision to create the Gurney Wharf project began six years ago in 2016, when Lim Guan Eng was the chief minister, according to Chow and state Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh.

A children’s playground, skate park, viewing deck (south vantage point), public restrooms, pedestrian promenade, trader’s booths, recreational park, landscape areas, and open space car parks are among the facilities to be created under Priority One, according to Jagdeep.

Additional landscaping areas, more recreational parks, a hawker centre, an observation platform (north vantage point), public restrooms, more trader’s booths, multi-story car parks, open space car parks, a beach area and boardwalk, water water garden, and the drainage system are all included in Priority Two.

 

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GEORGE TOWN (May 14): Construction of the Gurney Wharf project, which is a park in the largest reclaimed township in Penang worth RM200 million, is expected to be fully completed by early 2025.

Penang Chief Minister Chow Kon Yeow said the project involves about 20 hectares of reclaimed land at Gurney Drive, which would become the latest attraction in Penang and give economic added value and spillover.

“The Gurney Wharf development initiative began in 2016 with engagement sessions with all stakeholders including Penang residents to obtain views, input and feedback in terms of needs as well as the recreational component required by the community in the state.

“The project will be a promenade with a beautiful sea view, recreational park. hawker centre, parking and other facilities for the entire family to spend quality time and for better quality of life for the people on the whole,” he told reporters after the Gurney Wharf ground-breaking ceremony here on Saturday (May 14).

The ground-breaking ceremony was officiated by Penang Governor Tun Ahmad Fuzi Abdul Razak and also present were Deputy Chief Minister I Datuk Ahmad Zakiyuddin Abdul Rahman as well as Deputy Chief Minister II Dr P Ramasamy.

Chow said two phases of the project development which were postponed due to the Covid-19 pandemic will be carried out simultaneously after the ground-breaking ceremony.

He said the two phases of the project would offer a children’s playground, skating park, observation deck, public toilets, pedestrian promenade, hawker kiosks, retail area, surau, landscaped area, recreational park and a multistorey car park.

“The state government is also taking note of the issues that have arisen, but I am sure the stakeholders in the project are aware of the situation, including ensuring that the protection of the environment and the marine area is an aspect that is emphasised during the initial planning stage of the project, ” he said.

He said the state government had also decided to implement the Gurney Wharf project through an open tender and it had agreed to appoint TETO Engineering Sdn Bhd as the main contractor, while the appointment of other subcontractors would be announced from time to time.

“With the appointment of qualified consultants and contractors, the state government hopes the project can be implemented more systematically and comply with the set specifications. In fact, we have also instructed that the traffic flow in the area be carefully planned to ensure the safety of everyone, including pedestrians,” he said.

Source: The Edge Markets

Kevin Hans Jun Wei Samuel No Comments

Increase In Interest Rates Will Reduce Consumer Spending & Damage The REIT Sector

Consumer spending is likely to drop due to higher-than-expected interest rates and inflationary pressures, according to AmInvestment Bank, which will hinder the real estate investment trust (REIT) sector’s recovery.

The research house stated in a sector update on Friday (May 13) that its in-house economist projected a 25-basis-point raise in the overnight policy rate (OPR) in July this year.

The Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) lifted the OPR by 25 basis points to 2% on Wednesday, up from a record low of 1.75 percent set on July 7, 2020.

As a result, it forecasted flat rental reversion for malls in ideal locations and possibly negative reversion for malls that were less established.

Covid-19 rental subsidies to tenants of shopping malls will end in the coming quarter, it said, in conjunction with the lessening of the lockdown and the reopening of the economy.

The withdrawal of Covid-19-related assistance will result in a normalisation of retail rental income.

According to the Malaysian Institute of Economic Research, “revenge spending” is moving to “moderate expenditure” in the first quarter of 2022 (1Q22) as retail sales rebound to almost pre-pandemic levels (MIER).

REITs with a well-diversified income base, such as Sunway, whose portfolio includes retail malls, offices, hotels, universities, hospitals, and an industrial property across the country, have a greater chance of avoiding potential downside risks, according to the report.

Due to the falling yield against 10-year Malaysian government securities, REIT distribution yields will remain unappealing, according to AmInvestment (MGS).

 

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KUALA LUMPUR (May 13): AmInvestment Bank foresees a decline in consumer spending ahead due to higher-than-expected interest rates and inflationary pressures, which will in turn affect the improvement of the real estate investment trust (REIT) sector.

In a sector update on Friday (May 13), the research house said that its in-house economist predicted another hike in overnight policy rate (OPR) by 25 basis points (bps) in July this year.

On Wednesday, Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) had increased the OPR by 25bps to 2%, from a record low of 1.75% since July 7, 2020.

“The higher OPR rate is estimated to support the ringgit from further weakening against the US dollar due to the differential in interest rates between the two countries,” said AmInvestment.

“Higher interest rates and inflation are anticipated to weigh on personal consumption expenditure due to higher borrowing costs and prices for consumer goods.

“Hence, tenant sales ahead are likely to soften as consumers may turn cautious in spending on discretionary goods.”

Therefore, it predicted rental reversion to stay flattish for malls in prime locations and possibly adverse reversion for less established malls.

“Rental reversion is expected to remain flattish in prime malls but could turn negative in unpopular malls with low footfalls in order to retain existing and attract new tenants.

“Given that retail malls are only able to renew tenancy agreements with higher rental rates if tenant sales improve,” AmInvestment Bank said.

It said tenants will feel additional pain once Covid-19 rental rebates to tenants of shopping malls discontinue in the coming quarter in line with the easing of lockdown and reopening of economy.

The removal of the Covid-19-related support will lead to a normalisation of rental income in the retail segment.

AmInvestment Bank further highlighted that the “revenge spending”, possibly seen in the first quarter of 2022 (1Q22) of retail sales recovery to almost pre-pandemic levels, is shifting to “moderate spending” as noticed by the Malaysian Institute of Economic Research (MIER).

It said REIT players that have a well-diversified income base such as Sunway, whose portfolio encompasses retail malls, offices, hotels, universities, hospitals and an industrial property across the country, have a better chance against the potential downside risks.

AmInvestment added that REIT distribution yields will remain unattractive due to declining yield against the 10-year Malaysian government securities (MGS).

“With higher interest rate expectations in the US, a further increase in the 10-year MGS and 10-year US treasury could result in a deeper contraction in the yield spread between REITs and the 10-year MGS.

“The yield spread of companies under our coverage is now mostly negative against the 10-year MGS,” said AmInvestment.

It believes that market sentiment on REITs will remain lacklustre in the near term due to the unappealing offering to yield-seeking investors.

“The targeted average calendar year 2023 forecast (CY23F) distribution yield for REITs under our coverage is 6.4%,” it said.

AmInvestment said its top “buy” is Sunway REIT (fair value RM1.66), underpinned by its well-diversified income base, which could provide a cushion against potential downside risks, adding that its portfolio encompasses retail malls, offices, hotels, universities, hospitals and an industrial property across Malaysia.

“We are also positive about the outlook of Sunway eMall, which offers delivery and in-store collection for online shopping across its physical malls.

“The group is recognised for its environmental, social and governance (ESG) practices. Specifically, Sunway REIT is the first amongst its local peers to incorporate sustainability financial consideration into its capital management strategy,” it said.

Source: Edge Prop

Kevin Hans Jun Wei Samuel No Comments

MBPP Secretary – A New Esplanade In Penang Will Open On May 13.

With the completion of the seawall upgrade project, Penangites will be able to enjoy the new Esplanade. A. Rajendran, secretary of the Penang Island City Council (MBPP), said the RM14 million Esplanade seawall upgrade project has been finished and would be launched on Friday (May 13).

According to Rajendran, Chief Minister Chow Kon Yeow would hold a press conference at the site soon. The 460-meter length of seawall between Medan Renong food court and the Royal Malaysian Naval Base is being upgraded. It is one of 14 projects of the RM140 million North Seafront Masterplan, which runs from Dewan Sri Pinang to Fort Cornwallis and the Swettenham Pier entrance.

The George Town Conservation and Development Corporation (GTCDC), a partnership between the Penang government and Think City, is funding and supporting the project.

The corporation was established to lead the revitalization and repair of the heritage site’s public assets.

Its goal is to increase the attraction and worth of important monuments and public open spaces, as well as to illustrate the importance of culture-based urban regeneration in developing a long-term historic city.

Restoration of Koh Seang Tatt Fountain Garden, improvements to Lebuh Light streetscape, upgrading of Esplanade field subsoil system, and other planning documents generated to aid with the physical execution are among the 14 key efforts done so far.

 

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GEORGE TOWN: Penangites will be able to experience the new Esplanade with the completion of its seawall upgrading project.

Penang Island City Council (MBPP) secretary A. Rajendran said the RM14mil Esplanade seawall upgrading project has been completed and will be launched on Friday (May 13).

“The project has been completed,” he said in a Whatsapp text message to The Star.

Rajendran said Chief Minister Chow Kon Yeow will also be having a press conference at the site soon.

The seawall upgrading project involves a stretch of 460m from Medan Renong food court to the Royal Malaysian Naval Base.

It is one of 14 projects under the RM140mil North Seafront Masterplan that starts from Dewan Sri Pinang to Fort Cornwallis and the entrance to Swettenham Pier.

The project is funded by MBPP and supported by the George Town Conservation and Development Corporation (GTCDC), a partnership between the Penang government and Think City.

The corporation has been formed to spearhead the rejuvenation and restoration of select public assets in the heritage site.

It is meant to enhance the appeal and value of key monuments and public open spaces, and demonstrate the value of culture-based urban regeneration in creating a sustainable heritage city.

To date, among the 14 major initiatives completed are the restoration of Koh Seang Tatt Fountain Garden, improvements to Lebuh Light streetscape, upgrading of Esplanade field subsoil system and numerous planning documents produced to assist with the physical implementation.

Source: The Star Online

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The OPR Has Risen To 2%

The Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) raised the overnight policy rate (OPR) by 25 basis points to 2% from a record low of 1.75 percent citing increased global inflationary pressures and the fact that the sustained reopening of the global economy and improvements in labour markets continue to support the recovery of economic activity from the impact of Covid-19-driven movement restrictions.

According to BNM, the OPR’s corridor ceiling and floor rates have been raised to 2.25 percent and 1.75 percent, respectively. Based on the data on the BNM website dating back to 2004, the OPR stands at 1.75 percent, which is the lowest on record.

Since July 7, 2020, when BNM reduced the OPR from 2% to 1.75 percent following the Covid-19 outbreak in early 2020, the OPR has remained at that level. According to BNM, these elements have helped to mitigate the impact of the war turmoil in Ukraine and China’s strong Covid-19 control measures.

As told by BNM, while global inflationary pressures have risen substantially as a result of rising commodity prices, tight supply chains, and strong demand conditions, some central banks are expected to modify their monetary policy settings more quickly to decrease inflationary pressures.

The newest statistics for the Malaysian economy, according to BNM, reveal that the country’s economic growth is robust, led by strengthening domestic demand and continued export growth.

A lower unemployment rate, increased labour participation, and better income prospects are all helping to boost the labour market. Malaysia’s headline inflation, as measured by the consumer price index, is expected to range between 2.2 and 3.2 percent in 2022.

BNM said the country’s underlying inflation, as assessed by core inflation, is likely to trend higher, averaging between 2% and 3% in 2022, due to improved economic activity and persisting cost pressures. The OPR was decreased by a total of 125 basis points during the Covid-19 crisis to a historic low of 1.75 percent to help the Malaysian economy. The extraordinary conditions that prompted such monetary operations, according to BNM, have since passed.

 

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KUALA LUMPUR (May 11): Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) on Wednesday (May 11) increased the overnight policy rate (OPR) by 25 basis points to 2% from a record low of 1.75% as global inflationary pressures have increased sharply and after taking into account that the sustained reopening of global economy and improvement in labour markets continue to support the recovery of economic activity from the impact of Covid-19-driven movement restrictions.

The ceiling and floor rates of the OPR’s corridor are correspondingly increased to 2.25% and 1.75% respectively, according to BNM.

“Inflationary pressures have increased sharply due to a rise in commodity prices, strained supply chains and strong demand conditions, particularly in the US.

“For the Malaysian economy, latest indicators show that growth is on a firmer footing, driven by strengthening domestic demand amid sustained export growth,” BNM said in a statement.

The OPR at 1.75% is the lowest on record, according to BNM data dating back to 2004 on the central bank’s website.

The OPR had been maintained at 1.75% since July 7, 2020, when BNM cut the rate from 2% following the Covid-19 outbreak which began in early 2020.

On Wednesday (May 11, 2022), BNM said in its statement that the sustained reopening of the global economy and improvement in labour market conditions continue to support the recovery of economic activity.

BNM said these factors have partly cushioned the impact of the military conflict in Ukraine and the strict Covid-19 containment measures in China.

As global inflationary pressures have increased sharply due to the rise in commodity prices, strained supply chains and strong demand conditions, particularly in the US, several central banks are expected to adjust their monetary policy settings at a faster pace to reduce inflationary pressures, according to BNM.

“The global growth outlook will continue to be affected by the developments surrounding the conflict in Ukraine, Covid-19, global supply chain conditions, commodity price shocks, and financial market volatility,” BNM said.

On the Malaysian economy, BNM said the latest indicators show that the country’s economic growth is on a firmer footing, driven by strengthening domestic demand amid sustained export growth.

The labour market is further lifted by a lower unemployment rate, higher labour participation and better income prospects, according to BNM.

“The transition to endemicity on April 1, 2022 would strengthen economic activity, in line with further easing of restrictions and the reopening of international borders. Investment activity and prospects have also improved, underpinned by the realisation of multi-year projects and positive growth outlook.

“However, risks to growth remain, which include a weaker-than-expected global growth, further escalation of geopolitical conflicts, worsening supply chain disruptions, and adverse developments surrounding Covid-19,” BNM said.

Malaysia’s headline inflation, as measured by the consumer price index, is projected to average between 2.2% and 3.2% in 2022, BNM said.

Given the improvement in economic activity amid lingering cost pressures, the country’s underlying inflation, as measured by core inflation, is expected to trend higher to average between 2% and 3% in 2022, according to BNM.

“Nevertheless, upward pressure on prices would be partly contained by existing price controls and the continued spare capacity in the economy.

“The inflation outlook continues to be subject to global commodity price developments, arising mainly from the ongoing military conflict in Ukraine and prolonged supply-related disruptions, as well as domestic policy measures on administered prices,” BNM said.

Looking back, BNM said that over the course of the Covid-19 crisis, the OPR was reduced by a cumulative 125 basis points to a historic low of 1.75% to provide support to the Malaysian economy.

BNM said the unprecedented conditions that necessitated such monetary actions have since abated.

“With the domestic [economic] growth on a firmer footing, the MPC decided to begin reducing the degree of monetary accommodation.

“This will be done in a measured and gradual manner, ensuring that monetary policy remains accommodative to support a sustainable economic growth in an environment of price stability,” BNM said.

Source: Edge Prop

Kevin Hans Jun Wei Samuel No Comments

Simmtech Has Officially Opened Its New Batu Kawan Manufacturing Site

Simmtech Holdings Inc., a South Korean semiconductor giant, has formally launched its new manufacturing plant in the Batu Kawan Industrial Park (BKIP) through its Malaysian affiliate, Sustio Sdn Bhd.

It is the company’s first sophisticated manufacturing plant in Southeast Asia, according to Simmtech Southeast Asia managing director Jeffery Chun.

Bukit Tambun assemblyman Goh Choon Aik, Datuk Seri Lee Kah Choon, Chief Minister of Penang special investment adviser, Datuk Loo Lee Lian, South Korean ambassador to Malaysia Lee Chi Beom, and Malaysian Investment Development Authority (Mida) (investment development) deputy chief executive officer Lim Bee Vian were also present.

According to Chun, the new factory in Penang will boost Simmtech’s total substrate and PCB capacity by 20%.

The Penang government, according to Chief Minister Chow Kon Yeow, is glad to witness the rise of stakeholders in the semiconductor supply chain.

“As a result of the improved robustness of its well-developed industrial environment, the state has reaped a slew of benefits.”

“As the first major Korean semiconductor industry investment in Penang and a significant supplier of memory module PCB and substrate, Simmtech’s presence, through its Malaysia-based subsidiary, Sustio, is set to deliver enhanced supply chain robustness.”

“InvestPenang and other related state agencies are dedicated to fostering a diverse talent pool, supported infrastructure, and resilient industry clusters,” said the state administration.

 

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BATU KAWAN (May 9): Simmtech, a South Korean-based manufacturer of printed circuit board (PCB) and packaging substrate for semiconductors, opens its first advanced manufacturing facility in Southeast Asia at Penang to address the heightened industry demand.

Simmtech Southeast Asia managing director Jeffery Chun said the manufacturing facility under Simmtech’s subsidiary Sustio Sdn Bhd, is expected to start delivering mass volume of substrate and PCB products to customers by the second half of this year.

Chun said the facility on 7.3 hectares will be the group eight factory along with its other operations in South Korea, China and Japan.

“Sustio’s factory in Penang will increase Simmtech’s total capacity of substrate and PCB by 20 per cent, which will immediately contribute to improve the semiconductor industry supply constraint situation which can aptly address the needs among the industry players,” he told reporters here yesterday.

Earlier, Penang Chief Minister Chow Kon Yeow officiated at the opening ceremony of Sustio’s factory here, which was also attended by South Korea’s ambassador to Malaysia Lee Chi Beom, deputy chief executive officer of Malaysian Investment Development Authority (MIDA) Lim Bee Vian and special investment advisor to the Chief Minister of Penang, Datuk Seri Lee Kah Choon.

Chun said the new RM600 million factory at Batu Kawan Industrial Park can produce up to 60 million substrate and 2 million PCB boards monthly.

“Sustio has already employed a workforce of more than 700 for its Penang’s facility and it will reach its full employment of more than 1,000 employees by next year,” he said.

He said the Sustio factory’s commencement is just in time for the new dynamic random-access memory (DRAM) technology transition (DDR5).

“We have already engaged with our key customers for the new site qualification programme and we will ramp up this new site mainly for our DRAM and NAND customer worldwide,” he said.

Simmtech was founded in South Korea in 1987 and recorded sales revenue of more than RM4 billion last year with around 4,000 employees globally.

 

Source: The Borneo Post

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Penang Is Considering Regulating Short-Term Rentals And Homestays.

Despite recently imposing a ban on short-term rental properties or homestays, the Penang government is still considering regulatory options.

 

Many stakeholders, including the Ministry of Tourism, Art and Cultural (Motac), the Ministry of Housing and Local Government, and local councils, would need to be involved, according to State Tourism and Creative Economy Committee chairman Yeoh Soon Hin.

 

Short-term rental homes or homestays, he claimed, have generated unfair competition for licenced hotels that follow Motac’s rules, such as paying taxes and hotel fees.

 

Following numerous complaints from residents’ groups at apartments, condominiums, and residential neighbourhoods, State Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh Deo announced last month that the State had agreed not to allow “check-ins” at landed and high-rise buildings for short-term rental homes or homestays.

 

However, according to Yeoh, the restriction will only apply to high-rise buildings with residential titles, prohibiting owners from renting out their units on a short-term basis.

 

He said Penang planned to outlaw something like Airbnb, an internet lodging marketplace where travellers may rent out apartment or condominium units for a short period of time.

 

The restriction will not apply to kampung-style homestays, which are permitted as a tourism product by Motac, according to Yeoh, who added that the State government has yet to decide when the ban will take effect.

 

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GEORGE TOWN (May 6): Despite recently announcing a ban on short-term rental homes or homestays, the Penang government is still open to the option of regulating the activity.

State Tourism and Creative Economy Committee chairman Yeoh Soon Hin said for this, many parties such as the Ministry of Tourism, Art and Cultural (Motac), the Ministry of Housing and Local Government and local councils would need to be involved.

He said short-term rental homes or homestays have created unfair competition for licensed hotels that abide by Motac’s regulations, including by paying taxes and hotel fees.

“We will discuss with all the Ministries and agencies involved to set up new rules and regulations to regulate short-term rental homes or homestays in the state,” he told reporters after launching the “High Fun Penang Project”, an initiative to stimulate Penang tourism’s industry here on Thursday.

Last month, State Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh Deo announced that the State had agreed to not allow “check-ins” at landed and high-rise buildings for short-term rental homes or homestays, based on numerous complaints from residents’ groups at apartments, condominiums and residential neighborhoods.

However, Yeoh explained that the ban will solely be imposed on high-rise buildings with residential titles, which prohibits owners from renting out on a short-term basis.

He said Penang intended to ban something like Airbnb, an online marketplace for lodging, in which apartment or condominium units are rented out on a short-term basis to tourists.

Yeoh said the ban will not apply to kampung-style homestays as it is also allowed by Motac as a tourism product, adding the State government has yet to decide when the ban will take effect.

Source: Edge Prop

Kevin Hans Jun Wei Samuel No Comments

With The Acquisition Of Property Hub, Knight Frank Malaysia Enters The Residential Real Estate Market.

Knight Frank Malaysia has acquired a 51 percent ownership in Property Hub Sdn Bhd, a Malaysian real estate agency, to increase its presence in the residential real estate industry.

The workforce has grown to 720 experts with Property Hub, which has been rebranded as Knight Frank Property Hub (KFPH), but plans are in place to increase the number to 1,000 professionals within the next three years.

To incorporate Property Hub into Knight Frank’s global processes, a new management structure will be implemented, as well as new recruits.

He said the development strategy involves boosting their presence in Penang and Johor, and that the move was made in anticipation of the housing market’s predicted revival this year. “There is a lot of pent-up demand,” he said, adding that the market will return with the easing of standard operating procedures and the opening of borders.

While Knight Frank has a strong presence in the residential mid-to-high-end markets and a large client base of high-net-worth individuals, KFPH will serve as Knight Frank Malaysia’s residential real estate branch.

 

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KUALA LUMPUR: Global real estate firm Knight Frank Malaysia is expanding its presence into the residential real estate market with the acquisition of Property Hub Sdn Bhd, taking a 51% stake in the local real estate agency.

With Property Hub, which has been rebranded as Knight Frank Property Hub (KFPH), the team has been enlarged to 720 professionals but plans are in place to bolster the total to 1,000 professionals within the next three years.

A new management structure will be implemented, in addition to the acquisition of new hires to integrate Property Hub into Knight Frank’s global practices.

“Today’s announcement reinforces our position as the leading real estate consultant in Malaysia and highlights the power of our brand and culture to attract the best talent. With the combination of our 600+ professionals in Malaysia, this will enhance Knight Frank Malaysia’s ability to provide comprehensive solutions for clients in any market across the country,” Knight Frank Malaysia group managing director Sarkunan Subramaniam said.

The expansion plan includes strengthening their foothold in Penang and Johor, he said, adding that the expansion was in lieu of the expected recovery of the property market this year. “There is a lot of pent-up demand,” he said, pointing out that with the relaxation of the standard operating procedures and the opening of the borders, the market will rebound.

“This joint venture aligns with our vision to provide our clients with a full range of services, including valuation, capital markets, corporate services and property management, while leveraging our expertise in residential sales and leasing as well as project marketing,” KFPH managing director Benjamin Tee said.

While Knight Frank has an established presence in the residential mid-to-high-end markets and a cache of high-net-worth clients, KFPH is set to operate as Knight Frank Malaysia’s local residential real estate arm.

Knight Frank Malaysia group chairman Eric Ooi and group deputy managing director Keith Ooi as well as KFPH executive directors Enoch Khoo and Wan Choy Heng were also present at the launch of KFPH.

 

Source: Star Property

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HSBC Launches SLPs To Aid Affordable Housing

Jayyid Land Sdn Bhd, a joint venture property development business between Platinum Victory and Jakel Group, has received the first Social Loan Principles (SLPs)-based financing in South East Asia for the real estate sector from HSBC.

This agreement will fund Phase 1 of the J Satine project in Setapak, Kuala Lumpur, which will have 2,068 affordable residential apartments under the Residensi Wilayah Keluarga Malaysia banner. The Ministry of Federal Territories is in charge of the housing initiative, which works with private developers to promote homeownership.

HSBC’s first social finance in Malaysia, worth RM136 million, was given to Jayyid Land by HSBC Amanah Malaysia Bhd and is aligned with the SLPs. The move is intended to boost socio-economic activities aimed at reducing social concerns and housing affordability, which is a problem that is particularly acute in urban areas.

The SLP is managed by the International Capital Markets Association and is aligned with the Social Bond Principles, one of the most widely accepted voluntary issuance criteria in the social bond market that promotes transparency, disclosure, and reporting.

Amanda Murphy, HSBC’s commercial banking head for South and Southeast Asia, said the bank has set aside RM1 billion for green and sustainable financing to help firms get started on their sustainability journeys and move to more sustainable methods of doing business.

HSBC’s ambition also aligns with the government’s 12th Malaysia Plan, which aims to provide further 500,000 excellent and affordable houses for Malaysians by 2025, creating a more inclusive environment for the rakyat and enterprises, she added.

According to Murphy, establishing a ceiling price for affordable housing will help to keep house prices in check and enhance homeownership opportunities while also enhancing the living standards of low- and middle-income households in cities.

 

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PETALING JAYA: HSBC has introduced its first Social Loan Principles (SLPs) based financing in South East Asia for the real estate sector to Jayyid Land Sdn Bhd, a joint venture property development company between Platinum Victory and Jakel Group.

This deal will finance the development of Phase 1 of the J Satine project in Setapak, Kuala Lumpur which comprises 2,068 units of affordable residential apartments under Residensi Wilayah Keluarga Malaysia. The housing program is under the purview of the Ministry of Federal Territories in collaboration with private sector developers to promote homeownership.

Amounting to RM136mil, HSBC’s inaugural social financing in Malaysia is granted to Jayyid Land by HSBC Amanah Malaysia Bhd and is aligned with the SLPs. The move is to improve socio-economic activities targeted to mitigate social issues and housing affordability, a challenge faced especially in city centres.

The SLP is administered by the International Capital Markets Association and is aligned to the Social Bond Principles, one of the main internationally recognised voluntary issuance guidelines that promote transparency, disclosure and reporting in the social bond market.

“Residensi Wilayah Keluarga Malaysia targets first-time house buyers in Kuala Lumpur, mainly helping the B40 and M40 Group to own residential units in a safe and conducive environment with the benefit of purchasing at affordable pricing. This financing complements the government’s aim to build more affordable housing and promotes homeownership for all Malaysians,” said Platinum Victory Group managing director and Jayyid Land executive director Tan Sri Gan Yu Chai.

“As an international bank with strong credentials in sustainability, HSBC understood our direction to increase our focus on environmental, social and governance and was able to collaborate and structure this SLP based financing for us – this is a remarkable milestone for Malaysia’s property sector that will create a positive impact for the community,” he said.

HSBC South and Southeast Asia commercial banking head Amanda Murphy said HSBC has earmarked RM1bil towards green and sustainable financing to enable businesses to embark on their sustainability journeys and switch to more sustainable ways of doing business.

HSBC’s goal also runs parallel with the 12th Malaysia Plan on the government’s initiative to offer another 500,000 units of quality and affordable homes for Malaysians by 2025, thus creating an inclusive environment for the rakyat and businesses, she said.

Murphy said the implementation of a ceiling price for affordable housing will help to control house prices and increase the potential of homeownership whilst improving the living standards of the urban low-medium income households.

Also present at the official signing ceremony were HSBC Corporate Malaysia head Karel Dosh, CIMB Malaysia head Andrew Sill and Jayyid Land directors Datuk Seri Mohamed Faroz Mohamed Jakel and Gan Yee Hin.

Source: Star Property