Property

KUALA LUMPUR: The estimated cost of the Rapid Transit System Link (RTS Link) infrastructure project had increased by 29.9% or RM1.20 billion to RM5.24 billion as of 31 December 2023 compared to the original estimated cost of RM4.03 billion in January 2018. According to the Auditor General’s Report 2/24 (LKAN), this increase was partly due to the expansion of the depot work scope from light to heavy maintenance, new contracts for the Traffic Diversion Scheme, and the construction of the Customs, Immigration, and Quarantine (CIQ) Complex. Additionally, supplementary infrastructure work for iconic facades and aesthetic flyover structures, additional land acquisition costs, and extra infrastructure costs for the construction of parking facilities and additional piling at the CIQ Complex also contributed to the cost increase. According to the report, the government allocation of funds for the Klang Valley Mass Rapid Transit (KVMRT) project and the RTS Link project have been utilised for approved public infrastructure projects. “However, the increase in project costs can affect the government’s current financial position,” it said. The RTS Link is a 4km cross-border rapid transit system connecting Malaysia with Singapore, comprising two stations: the Bukit Chagar Station in Johor Bahru and the Woodlands North Station in Singapore. According to the project developer and asset owner, Mass Rapid Transit Corporation Sdn Bhd (MRT Corp), the increase in project costs was unavoidable due to the impact of the Covid-19 pandemic, which led to a rise in raw material prices worldwide. There were also changes in the work scope to ensure a holistic traffic solution and land acquisition costs. On 24 July 2020, the government agreed to finance the development of the RTS Link project through the development expenditure allocation via the Ministry of Transport (MoT). Clause 10.1 of the Project Development and Management Agreement (PDMA) Stipulates that the government shall finance the development of the RTS Link infrastructure according to the estimated project cost of RM5.24 billion as stated in Clause 6.3. Disbursement of the fund shall be carried out every quarter on requests from Malaysia Rapid Transit System Sdn Bhd (MRTS), which is a subsidiary of MRT Corp which is the developer and owner of public infrastructure for the Malaysian portion of the RTS Link project. According to the LKAN, the MoT had disbursed RMI.94 billion or 37.1% of the government’s total approved allocation of RM5.24 billion to MRTS as of 31 December 2023. A total of RM1.55 billion or 29.6$ was spent on payments to contractors and consultants. — BERNAMA

KUALA LUMPUR: The Islamic Tourism Centre (ITC) and the Malaysian Budget and Business Hotel Association (MyBHA) have signed a Memorandum of Understanding (MoU) to enhance the availability of Muslim-friendly accommodation across the country. In a statement, MyBHA said this initiative is a significant step towards strengthening the Muslim-friendly tourism and hospitality sector in Malaysia. According to MyBHA, the MoU outlines ITC’s commitment to providing comprehensive training on Muslim-Friendly Tourism and Hospitality (MFTH) to MyBHA members. “This initiative aims to guide MyBHA members in obtaining the MFTH Assurance and Recognition (MFAR) from ITC. This recognition will affirm their commitment to meeting the unique needs of Muslim tourists, thereby fostering a more inclusive and welcoming tourism environment in Malaysia,” it said. Meanwhile, ITC Director-General Nizran Noordin said the collaboration is a crucial step in maintaining Malaysia’s position as a leading Muslim-friendly tourism destination. By equipping MyBHA members with the necessary knowledge and skills through MFTH training, he hopes to ensure that Muslim tourists feel comfortable throughout their stay in Malaysia. Meanwhile, MyBHA national president, Dr Sri Ganesth Michiel said the association is committed to enhancing the quality and inclusivity of accommodation services in Malaysia. “This MoU not only provides our members with the opportunity to elevate their standards and remain relevant in the market but also aligns with our goal of promoting Malaysia as a destination of choice for Muslim tourists,” he said. — BERNAMA

KUALA LUMPUR: WCT Holdings Bhd’s wholly-owned subsidiary, WCT Bhd has secured a contract to undertake works for additional lanes for the North-South Expressway expansion project from Yong Peng (North) to Senai (North) Phase 1: Senai (North) – Sedenak (Package A) worth RM249.74 million. WCT Holdings said its unit has received a letter of acceptance dated 14 June 2024 issued by Projek Lebuhraya Usahasama Bhd. The works under the contract encompass site clearance, demolition works, earthworks, drainage works, pavement works, road markings, road furniture, geotechnical works, bridge structures, environmental protection works, relocation of utilities, road lighting system and extension of vehicular box culvert. “The works under the contract are expected to be completed within 36 months from 28 June 2024, the date of commencement,” it said in a filing with Bursa Malaysia. — BERNAMA

KUALA LUMPUR: Genting Bhd is eyeing to generate about US$8.5 billion in revenue over the next 25 years from the gas-fired power plant in ZhouShan, Greater Shanghai Area in the Zhejiang Province, China, which it has proposed to acquire. Genting, through its indirect unit Genting MZW Pte Ltd, proposed to acquire a 49% equity interest in SDIC Jineng (ZhouShan) Gas Power Generation Co Ltd, which is developing a 2×745-megawatt (MW) gas-fired power plant in ZhouShan for 100 million yuan (RM64.87 million). Genting President and Chief Operating Officer Datuk Seri Tan Kong Han said the group aims to generate US$343 million annually starting in the year 2026 as the power plant is estimated to be completed by end-2025. He said the company is looking forward to investing more in the green energy sector even though the segment currently does not contribute significantly to its revenue. “If you look at our last annual report, the leisure and hospitality sectors contributed about US$4.9 billion in revenue, whereas the power as well as oil and gas divisions currently or at least at the end of last year, contributed only US$365.7 million. “So it is a small fraction of the business contribution, but just looking at the current gas prices, that could bring us around US$1.3 billion in revenue and it suddenly becomes a big number. “That is why we are excited and spending a lot of time and energy in this space,” he said. The gas-fired power plant is one of the 3 key H-class projects listed in the 14th 5-Year Plan of Zhejiang Province. “It uses an H-class gas turbine manufactured by GE Vernova Inc, which is the most efficient gas turbine in the world and the project is expected to be the first H-class unit to operate within the Zhejiang Province when it achieves commercial operation in the fourth quarter of 2025,” it added. — BERNAMA