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Property, Uncategorized

RHB Research Positive On Mah Sing’s Sepang Land Acquisition

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KUALA LUMPUR: RHB Research is upbeat on Mah Sing Group Bhd’s recent land acquisition in Sepang, which is planned for Mah Sing Business Park’s development. The bank-backed research firm in a report said apart from the land’s reasonable pricing, the company’s collaboration with a Chinese party should also ensure promising take-up of industrial properties in this project. To recap, Mah Sing signed a conditional sale and purchase agreement with Premier Land Resources (under Yuwang Group, a private plantation firm) to acquire 561.65 acres of leasehold agricultural land in Sepang. The acquisition involves an initial parcel measuring 185 acres with a purchase price of RM100.7 million and comes with an option to purchase the 376.65-acre balance in adjacent parcels within four years at the same land price of RM12.50 per square foot. Mah Sing South Sea Industrial Development (MSSSID) will collaborate with the landowner and jointly develop the land, with MSSSID holding 80 per cent and the landowner holding 20 per cent. MSSSID is a partnership entity between Mah Sing, which holds a 70 per cent stake and The South Sea Capital (TSSC) holding 30 per cent. “Led by TSSC’s executive president Sun Jian Wei’s established network with potential investors from Jiangsu Province and neighbouring Shanghai, as well as Mah Sing’s profile in the plastics manufacturing sector, we believe this new business park will see encouraging take-up upon its launch in the second half (2H) of 2024,” RHB Research noted in the report. The land is located in Sepang and is only 10km from the Kuala Lumpur International Airport (KLIA). Reputable logistics hubs such as Cainiao Warehouse by Alibaba Group, POS Aviation E-Commerce Hub and DHL Global Forwarding are in the vicinity. The site is also well connected via major highways such as KLIA Expressway, ELITE Highway, North-South Expressway and others. Surrounding amenities include the Express Rail Link (ERL) Salak Tinggi Station, KIP Mall in Kota Warisan and some other educational institutions. Mah Sing Business Park, with a gross development value (GDV) of up to RM2 billion for the entire 561.65 acres, comprises customised factories, industrial lots, clusters, and semi-detached and detached factories catering for medium and light industrial activities. RHB Research maintains a Buy call for Mah Sing and sees the impact on the company’s FY25 earnings to be minimal. “Our new target price of RM1.12 per share is now based on a 50 per cent discount to revalued net asset value (RNAV) from 55 per cent, given improving sentiment in the property market,” RHB Research noted.

Investment & Market Trends

Danone Malaysia, Singapore Achieves First Certified B Corporation Distinction In Malaysia

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KUALA LUMPUR: Danone Specialized Nutrition (Malaysia) Sdn Bhd and Danone Specialized Nutrition (Singapore) Pte Ltd have become certified B Corporation in Malaysia, further recognising and deepening their commitment to social and environmental responsibility. Danone Malaysia and Singapore country manager Koh Kok Meng said becoming a certified B Corporation is putting the flag in the sand to say that Danone Malaysia is committed to the impacts the company has on the environment and communities it serves. “When we started our B Corporation certification, the team was at the forefront of what we could do collectively as an organisation. “Being a B Corporation is the ultimate badge of honour for our organisation to have, and today, we are proud to be part of the sustainable global community movement toward a more equitable future,” he said in a recent statement.Danone underwent a rigorous and extensive review of its environmental, social practices and policies. With this certification, Danone Malaysia and Singapore will be held to high standards of accountability, undergoing a recertification process every three years to update its impact assessment and recertify as a B Corporation. Danone Malaysia and Singapore join among the ranks of 50 purpose-led businesses in Malaysia and Singapore that meet highly verified standards of social and environmental performance, transparency, and accountability. As a specialised nutrition company, it has positioned itself as an advocate of iron deficiency anaemia (IDA) among Malaysian children. The Iron Strong Study was conducted in a collaborative effort with the University Malaya Medical Centre (UMMC) to understand the prevalence of anaemia risk amongst Malaysian young children using a non–invasive screening device. This multi-site clinical study was conducted for six months across selected government clinics in Kelantan, Johor, Selangor, and Sabah. The findings from the clinical study will further help to raise awareness of this critical issue provide a solution to improve the nutrition status in Malaysia and emphasise the importance of early intervention through proactive screening for anaemia by including it as part of primary care health screening programs.

Investment & Market Trends

SC Broadens Investor Categories For Greater Market Accessibility

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KUALA LUMPUR: The Securities Commission Malaysia (SC) has widened its sophisticated investor categories in a move to increase capital market accessibility. The new Guidelines on Categories of Sophisticated Investors, which took effect recently, reinforce the SC’s commitment to maintaining capital market competitiveness and vibrancy while promoting greater investor participation. SC chairman Datuk Seri Dr Awang Adek Hussin said the growing sophistication of the Malaysian capital market has resulted in varied financing needs and investment risk appetites. “The criteria for sophisticated investors have been broadened to include a wider range of individuals who can contribute to the market’s growth and stability. “In 2023, the domestic capital market grew to RM3.8 trillion from RM3.6 trillion in the previous year. “This presents significant opportunities for the market to attract a more diverse investor base regionally and encourage greater capital flow into sophisticated product and market segments,” he said in a recent statement SC also noted that the key features of the expansion include a new category that takes into account the knowledge and experience of sophisticated investors. In addition, enhancements to current categories are made, allowing flexibilities of existing financial thresholds for high-net-worth individuals. The new Knowledge and Experience category will benefit individuals who do not meet financial tests but can demonstrate financial knowledge sophistication to participate in relevant market offerings. This category assesses potential investors based on their education, recognised financial association membership, and practical experience in relevant sectors such as banking, capital markets or insurance. Another key change is the inclusion of an investor’s primary residence value, up to a cap of RM1 million, in assessing their qualification as a sophisticated investor. The definition of a joint account is also expanded to incorporate accounts with a spouse or child, including total net joint annual income and investment portfolios. This expansion will better depict a family’s collective financial status and investment potential. The Guidelines on Categories of Sophisticated Investors are available on the SC website. Consequently, all relevant guidelines have also been updated regarding sophisticated investors.

Energy & Technology

Asia Pacific Sovereigns Outlook Shifted To Negative Due toTight Funding Conditions, Geopolitical Tensions

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KUALA LUMPUR: The outlook for Asia Pacific (APAC) sovereigns has shifted to negative, given the anticipated slower regional growth and persistently tight funding conditions. According to a recent report by Moody’s Investor Service, this will impede governments in achieving deficit consolidation and debt reduction, leading to larger debt burdens and a notable decline in debt affordability due to higher interest rates. The agency said the interest rates are expected to stay elevated in APAC, with central banks likely having reached their peak policy rates, the decline in interest rates will be gradual. There is a possibility of occasional rate increases to mitigate unexpected inflationary pressures. Additionally, pressures on capital outflows and currencies in APAC, excluding China, may stabilise with the easing of monetary policy in the US, it said. Moody’s Investor Service further said  while growth is expected to decelerate in 2024, the region will still outperform most others. It said the slowdown in China’s growth trajectory is anticipated to have a spill-over effect through various channels like trade, commodity prices, and investment. “However, the impact will be mitigated by strong domestic demand in significant emerging markets, including Indonesia (Baa2 stable) and India (Baa3 stable),” Moody’s Investor Service report said. Moody’s Investor Service also noted that  geopolitics will persist as a prominent factor, with ongoing trade and technology competition between China and the US disrupting supply chains. “Amidst this disruption, economies with robust manufacturing bases and excellent infrastructure, such as Vietnam (Ba2 stable), Thailand (Baa1 stable), and Malaysia (A3 stable), may find opportunities. “Additionally, an escalation of military conflicts in the Middle East poses additional risks to supply chains,” it said. The agency said the proportion of stable outlooks in APAC across sectors has decreased from the previous year, indicating a less robust economic environment. In 2024, both non-financial companies and financial institutions in China are expected to grapple with challenging credit conditions, in contrast to their counterparts in the rest of APAC, which maintain a stable outlook. Non-financial companies heavily dependent on the high-yield market will continue to face heightened refinancing risks. Moving on, Moody’s Investor Service noted that the APAC region’s growth prospects face constraints due to China’s declining growth profile and a cyclical slowdown in the US, exacerbating challenges in deficit consolidation and debt reduction amid tight funding conditions and slow growth. Post-Covid, emerging and frontier economies like Pakistan and Sri Lanka experience increased debt burdens and reduced debt affordability due to higher interest rates. However, it said the easing policy rate tightening in the US may alleviate currency pressures for sovereigns across rating spectrums, although APAC currencies have weakened against the strong US dollar since 2022. Stabilisation in exchange rates could offer relief to holders of foreign currency debt. While some APAC governments have reduced exposure to foreign currency borrowings after Covid-19, certain frontier market sovereigns, including Sri Lanka, Laos, and Mongolia, maintain high levels of such debt. Nonetheless, countries like Cambodia, the Solomon Islands, and Bangladesh benefit from concessional terms on foreign currency-denominated debt, mitigating liquidity risks and currency mismatches. Mongolia has recently refinanced and decreased its exposure to maturing external financing obligations.

News

Pacific Prime Malaysia Acquires MIT Insurance Brokers

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KUALA LUMPUR: Global insurance brokerage Pacific Prime Malaysia recently acquired MIT Insurance Brokers Sdn Bhd, the country’s leading insurance brokerage firm specialising in risk management, insurance, and reinsurance. Pacific Prime’s merger with MIT Insurance simplifies broker unity, where insurance is streamlined, and client-centric in the face of evolving challenges. Among Pacific Prime’s fifteen offices around the globe, MIT Insurance Brokers will operate as part of Pacific Prime Consultants Malaysia, a fully licensed client service point that provides localised products as well as flexible benefits administration and servicing within the region. In the coming weeks, it is anticipated that MIT Insurance Brokers’ staff will continue their journey onboard the Pacific Prime flagship with the shared goal of simplifying insurance. Pacific Prime chief executive officer Neil Raymond said Malaysia is an exciting country for the company to expand its operations. “With the integration of MIT Insurance Brokers, we’ll bring together a team of established and experienced personnel to provide innovative and strategic solutions both within and outside of the region. “This is of utmost importance in light of the numerous global regulatory and technological changes taking place,” he said in a recent statement. MIT Insurance Brokers has been the leading property and casualty, financial lines, and employee benefits solutions since 1973. Previously under the ownership of the largest state development corporation in Malaysia, MIT Insurance Brokers has provided high-profile clients with retail brokerage and risk consulting services, overseeing the methodical execution of their insurance programs and arrangements to fit every unique requirement and risk profile. Pacific Prime Consultants Malaysia chief executive officer Cedric Deschamps said acquiring MIT Insurance Brokers will undoubtedly distinguish Pacific Prime from its competitors. “MIT Insurance Brokers’ current guiding principles—providing the most optimal solutions for their client’s unique requirements—are in perfect alignment with our own. “I am convinced that Pacific Prime’s global footprint, combined with MIT Insurance Brokers’ 50 years of expertise locally, will pave the way for the future—and here in Malaysia, we’re just getting started,” he said. MIT Insurance Brokers has a proven track record of formulating cost-efficient insurance solutions for medical institutions, food manufacturers, plantations, retail businesses, property developers, energy companies and so forth. The company’s versatility has positioned it to be one of the most technically capable and advanced insurance service providers in Malaysia. MIT Insurance Brokers director Shahrizal Shahruddin said this acquisition happens at an opportune time for the company to showcase its track record and capability. “MIT Insurance Brokers has been in the market for over 50 years, and I hope we carry on this momentum. “I look forward to seeing us deliver the best services to our clients in Malaysia, and most importantly, I’m delighted to be a part of Pacific Prime. Here’s to a wonderful year ahead for the insurance industry,” he said.

ESG, Uncategorized

Yayasan Hasanah, Centexs Inks MoU To Strengthen Malaysia’s Textile Preservation

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KUALA LUMPUR: Yayasan Hasanah, Malaysia’s leading impact-based foundation, and Centre for Technology Excellence Sarawak (Centexs), recently signed a memorandum of understanding (MoU), solidifying their commitment to advancing the preservation and conservation of the country’s rich textile heritage. The MoU outlines a strategic partnership focused on capacity development, cross-fertilisation of skills, and the promotion of excellence in heritage textile preservation. The MoU exchange was organised in conjunction with Centexs’ recent convocation ceremony graced by Sarawak premier Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang  Openg. Yayasan Hasanah trustee and managing director Datuk Shahira Ahmed Bazari said sustainable preservation requires more than conveying historical value, it demands an ability to resonate with the hearts and minds of contemporary consumers, staying relevant in the ever-evolving market. “Thus, over the next two years under its heritage textile preservation efforts, Yayasan Hasanah is focusing on amplifying research and development (R&D) and the commercialisation of artisanal products. “In doing so, we recognise that this translates to a crucial need for a skills upgrade among our exceptionally talented traditional practitioners. “In this spirit, we are excited to collaborate with Centexs in curating impactful skill-training programmes, to preserve excellence in these art forms, while strengthening heritage textiles as a thriving economic space for our local artisans in Malaysia,” he said in a recent statement. The collaboration includes targeted initiatives such as skill development workshops, training programs, and master classes aimed at enhancing the proficiency of traditional textile artisans. The partnership also seeks to facilitate collaborations between traditional artisans and contemporary designers, fostering the creation of modern interpretations of traditional textiles through innovation and product development. Furthermore, key aspects of the collaboration also include fostering sustainable practices in capacity-building, product design, development, and entrepreneurship. The historic MoU builds upon Yayasan Hasanah’s tireless efforts in Malaysia’s heritage textile preservation in collaboration with various expert partners. Initiatives include preserving original Malaysian legacy motifs through digital documentation and intellectual property (IP) protection, the development of an experiential centre for heritage textiles, masterclasses for royal textile art forms like Telepuk with  Adigurus (master artisans), as well as training for youths in heritage textile arts like Kelingkan, Keringkam, Songket, and Telepuk – such as the ASPIRE Programme that trains the young trainees of Puncak Borneo complex in the art of Keringkam embroidery. Centexs chief executive officer Datuk  Syeed Mohd Hussien Wan Abdul Rahman said the centre’s mission is to be the best technology training institute in the region by 2030. “As we strive towards this goal, our responsibility is to equip the state’s workforce for various economic sectors, and this includes the lifestyle and heritage scene. “This partnership with Yayasan Hasanah adds immense value in co-designing an impactful training programme for our traditional artisans, to ensure they are not left behind in technological advances and innovations relevant to their craft, thus nurturing a strong workforce in this sector,” he said. The MoU is in line with Yayasan Hasanah’s aim to become a leading foundation that promotes Malaysia’s global sustainability through solutions encouraging human capital development, empowering communities, promoting social inclusivity, and improving the local environment.

Investment & Market Trends, Property

AME REITs NPI Increases 14.4% To RM11.5 Mil In Q3 FY24

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KUALA LUMPUR: Industrial real estate investment trust (REIT) AME Real Estate Investment Trust (AME REIT) recorded net property income (NPI) of RM11.5 million for the third quarter (Q3) ended December 31 2023 (FY24), up 14.4 per cent from the NPI of RM10.1 million in the same quarter last year. The positive earnings came from rental income which increased by 14.6 per cent to RM12.4 million from RM10.8 million previously. The improved Q3 results were also driven by additional contributions from three industrial properties acquired by AME REIT from its sponsor, AME Elite Consortium Bhd, post-listing in September 2022. The company’s acquisitions of the industrial properties, namely Plot 15 at i-Park @ Indahpura, Plot 43 at i-Park @ Senai Airport City, and Plot 16 at i-Park @ Indahpura were completed in 2023. With this strong results, AME REIT will distribute 99.6 per cent of its RM9.9 million distributable income for Q3, equivalent to a distribution per unit (DPU) of 1.88 sen. The distributable income is after adjustments for fair value gain on investment properties net of its deferred tax expenses, in addition to management fees payable in units, amortisation of capitalised financing costs, and unbilled lease income receivables. AME REIT chief executive officer and executive director of I REIT Managers Sdn Bhd Chan Wai Leo said the firm results in Q3 FY24 are underpinned by the full occupancy rate of its property portfolio, complemented by the completion of post-listing acquisitions. “Tenancy renewals sustained a positive momentum with a renewal rate of 83 per cent with existing tenants and a new replacement tenant, resulting in total renegotiated space of 92 per cent. “The increasing number of high-profile multinational corporations in our portfolio bolsters our status as a premier industrial-focused REIT, and we also stand to benefit from Malaysia’s resurgent status as a magnet for foreign direct investment,” he said in a recent statement. Chan said with the recent success of three industrial property acquisitions, AME REIT intends to further expand its portfolio by exploring acquisition opportunities in Johor and other industrial hubs across Peninsular Malaysia to continue providing our unitholders with stable and growing total returns. For the nine months (9M) FY24, AME REIT posted an NPI of RM33.0 million on the back of a revenue of RM35.5 million. As AME REIT was listed on the main market of Bursa Malaysia on September 20, 2022, the financial results covered for September 20, 2022, to December 31, 2022 only and are therefore not comparable. The Q3 FY24 distribution is payable on March 18, 2024 to unitholders. AME REIT’s current properties under management stood at RM669.3 million compared to RM640.3 million as of September 30, 2023, following the acquisition of Plot 16 at i-Park @ Indahpura from AME Elite Consortium Bhd in October 2023 and other property enhancement works. Its current portfolio consists of 34 industrial properties with an agreed lettable area of approximately 1.9 million sq ft and 3 industrial-related properties of workers’ dormitories. AME REIT’s properties are mainly situated across three industrial parks of AME Group in Iskandar Malaysia, namely i-Park @ Indahpura in Kulai, i-Park @ Senai Airport City in Senai, and i-Park @ SILC in Iskandar Puteri.

Property

UEM Sunrise Partners Alliance Bank For Home Ownership Financing Program

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KUALA LUMPUR: Property player UEM Sunrise Bhd has collaborated with Alliance Bank Malaysia Bhd to partner in the Alliance Home Complete programme. This partnership signifies progress in making home ownership easily accessible and enhances the home-buying experience. This financing solution aims to offer flexibility to homeowners by providing additional loans of up to 10 per cent of the property value, or a maximum of RM150,000. UEM Sunrise chief executive officer Sufian Abdullah said an initiative designed to empower homeowners to customise their living spaces for renovations and interior design, we ensure they are worry-free of initial cash outlay. “The primary objective at UEM Sunrise is to create homes that cater to the diverse needs and aspirations of our customers. “We hope that this creative collaboration with Alliance Bank, would help our customers with the extra boost to help them settle in their dream homes better,” he said in a recent statement. Sufian said partnering with Alliance Bank to offer alternatives beyond the conventional financing solutions is part of the company’s ongoing commitment to empower home-buyers in not only reducing financial burdens but also making their homeownership journeys hassle-free and enjoyable. Alliance Bank group chief consumer banking officer Gan Pai Li said the bank aims to provide financing packages that meet its customers’ evolving needs. “With Alliance Home Complete financing, homeowners shall gain immediate access to funds in realising their dream homes. “This exclusive offering is coupled with Alliance Bank’s mortgage products, to ensure a more streamlined and efficient application experience for the homebuyers. “Moreover, customers can now enjoy lower interest rates with us upon purchasing UEM Sunrise’s green-certified properties”, she said. UEM Sunrise is optimistic about the Alliance Home Complete programme, envisaged to drive better take-up rates for the company’s participating projects. The projects include 2023’s key launches in Klang Valley such as The MINH, The Connaught One, and Serene Heights Intrika, while Aspira Gardens, Aspira Parkhomes and Senadi Hills 2A are based in Johor.

Property

Gamuda Land Inks MoU With DNB To Develop 5G Infrastructure In Gamuda Townships

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KUALA LUMPUR: Gamuda Land, the property arm of Gamuda Bhd, recently signed a memorandum of understanding (MoU) with Digital Nasional Bhd (DNB) to expand 5G services in Gamuda townships.   Under the MoU, both parties will engage in fostering collaboration, knowledge exchange, exploration of 5G possibilities and the expansion of 5G service coverage and infrastructure within Gamuda Land townships – namely Gamuda Cove @ Kuala Langat, Gamuda Gardens @ Sungai Buloh North and twentyfive7 @ South of Kota Kemuning. Gamuda Land chief operating officer for strategic operations Jess Teng said the essence of a smart city lies in its ability to seamlessly connect diverse urban functions, ranging from traffic management and energy systems to waste disposal. She said this integration of functions leverages data to enrich services, elevate the quality of life, and promote environmental sustainability. “As township developers, strategic infrastructure planning is paramount to ensure we future-proof our townships. “Recognising the critical role of 5G technology, our strategic partnership with DNB becomes a catalyst for realising our smart city vision. “Together, we aspire to craft interconnected and innovative townships, harnessing the power of 5G to elevate the living experience for our residents,” Teng said in a recent statement. DNB chief strategy officer Datuk Ahmad Zaki Zahid said that the adoption of 5G by both the public and enterprises in the country is gaining momentum. “As of end-December 2023, Malaysia has recorded 8.2 million 5G service subscriptions, representing an adoption rate of 24.7 per cent. “We are also thrilled to see that enterprises have begun to explore the opportunities made possible by 5G. “5G is undeniably the key to the future of smart cities and townships. We look forward to supporting Gamuda Land’s smart township aspirations,” he said. The partnership with DNB marks the next step in realising the smart city vision. Harnessing 5G technology, Gamuda Land has developed a real-time dashboard to continuously monitor its environmental, social, and governance (ESG) initiatives. As an integral component of the landmark Gamuda Green Plan, this dashboard is set to undergo substantial improvements harnessing the capabilities of 5G, providing immediate insights into carbon emissions offsets, advancements in sustainability and more. “With the integration of 5G, providing enhanced real-time data to our Green Initiatives dashboard, we are setting new standards for transparency and accountability in the real estate development industry. “The inclusion of this dashboard in our experience gallery highlights our steadfast dedication to sustainable practices and community engagement,” Teng said.

Energy & Technology

Harley-Davidson Inks Product Distribution Deal With Didi Resources

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KUALA LUMPUR: American motorcycle manufacturer Harley-Davidson signed a motorcycle, parts and accessories, apparel and licensed products distribution agreement with Didi Resources Sdn Bhd (DRSB) for Malaysia, effective 1 January 2024. Under the agreement, DRSB will be the exclusive distributor of Harley-Davidson motorcycles and will provide after-sales service through a network of Harley-Davidson brand-exclusive dealers in Malaysia. DRSB will also be a non-exclusive distributor for Harley-Davidson parts, accessories, apparel and licensed products. Further, DRSB will deliver Harley-Davidson customer experience and its related programs like H.O.G. (Harley Owners Group) in the market. “Since 2008, Harley-Davidson has established itself and grown with Malaysia’s riding community, tapping into their passion for motorcycles and the open road. “With DRSB’s rich knowledge and experience in the Malaysian automotive market, we will work closely with them to continue to deliver the Harley-Davidson brand experience to our customers,” Harley-Davidson managing director, Asia, Emerging Markets and India Sajeev Rajasekharan said in a recent statement. DRSB chairman Rewi Hamid Bugo said the company looks forward to collaborating with the Harley-Davidson brand to bring the same spirit of adventure to Malaysia’s riding community. “We are honoured to play this important role and have put a larger local team in place to further strengthen the developments and programs that are aligned with Harley-Davidson, bringing greater value to customers,” he said. Customers can continue to experience the Harley-Davidson brand and purchase Harley-Davidson motorcycles and related products at their nearest Harley-Davidson-authorised dealerships.

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