The construction sector is expected to see a pick-up in job flows in the second half of this year (2H24), driven by infrastructure projects like the Penang light rail transit (LRT) and Mass Rapid Transit 3 (MRT3) in the Klang Valley.

Coupled with the strong demand for industrial buildings such as warehouses, data centres and semiconductor plants, the operating environment will likely remain favourable for the sector in Malaysia in the near term, leading to a bullish outlook.

In line with this general optimism, MIDF Research reiterated its “positive” stance on the construction sector.

The research house attributed this to a strong pipeline of development and infrastructure projects, on top of rising demand for industrial buildings.

“We expect the rollout of mega projects to be a boon to the sector and contribute to increased job flows over the coming quarters,” the research house said in a report yesterday.

MIDF Research noted that as of February 2024, a total of 1,442 projects, with a total value of RM15bil, had been awarded, markedly lower than the corresponding period last year, when 2,083 projects, with a combined value of RM19.9bil, were awarded.

“We see this as a temporary hiccup, attributed to delays in project rollouts within the pipeline, to be boosted by job flows in the likes of the Penang LRT and MRT3 contracts likely by 2H24,” it argued, adding that it did not expect any surprises for the second quarter (2Q24) of this year.

MIDF Research projected the construction sector to register growth of 5.2% year-on-year (y-o-y) this year and 5% y-o-y in 2025. In 2023, the sector grew 5.4% y-o-y.

“With the lack or rather delayed rollout of mega pump-priming projects, the construction sector is still expected to be supported by private-sector jobs and previously awarded infrastructure projects such as the Pan Borneo Highway, East Coast Rail Link, LRT3 in the Klang Valley, and the rapid transit system link in Johor,” the research house pointed out.

MIDF Research said it would not discount the possibility of another quarter of extension for the MRT3 project, after four extensions sought by MRT Corp since the middle of last year.

Over in Sabah and Sarawak, MIDF Research said development projects were picking up pace, with the Pan Borneo Highway in Sarawak nearing 98.91% completion and expected to be finished this year.

For the Sabah portion of the highway, the research house said, Phase 1A was ongoing, at 87% completion, while Phase 1B was currently in the tender process, with 19 work packages, of which some awards could be expected this quarter.

On the impact of material costs on the industry, MIDF Research said the stronger contractors would likely be able to navigate the elevated material-cost environment and maintain margins in the coming quarters.

Source: TheStar.com.my

Twin Star, an affordable housing development by Acara Prestasi Sdn. Bhd. in Jelutong. Located on approximately 3 acres of land along Lintang Slim, adjacent to Setia Sky Ville by S P Setia which was completed last year. It is just a mere minutes’ drive to Heng Ee secondary school, Penang Free School and Han Chiang College.

The development will see the demolition of the existing landed buildings, for the construction of new skyscrapers in two phases:

• Phase 1: 30-storey affordable housing (258 units)
• Phase 2: 33-storey affordable housing (328 units)

There will be 9 levels of car parking podiums in each building with several shop offices located at the ground level.

The project is still pending approval. More details to be available upon official launch.

READ MORE ABOUT AFFORDABLE HOUSING:

• Full list of affordable housing in Penang
• Eligibility and the requirement of buying affordable housing

Project Name : Twin Star
Location : Jelutong
Property Type : Affordable housing
Tenure: (to be confirmed)
Land Area: (to be confirmed)
Built-up Size: 900 sq.ft.
Total Units : 586
Indicative Price : RM300,000 onwards (affordable housing price guide)
Developer : Acara Prestasi Sdn. Bhd.

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider, or party in question.

In light of the ongoing Air-Itam Bypass project, another temporary road closure is scheduled to take place from the 3rd to the 4th of May 2024, between the hours of 9pm and 5am. This closure is necessary to facilitate beam launching works along the Lebuhraya Thean Teik, specifically between Desa Intan and Tanjung Court.

During the closure period, motorists are advised to utilize alternative routes to reach their destinations. For those traveling from Batu Lanchang to Paya Terubong, please consider using Lengkok Angsana to Jalan Angsana, before resuming your journey at Lebuhraya Thean Teik. Similarly, for those heading from Paya Terubong to Batu Lanchang, the recommended route is via Jalan Thean Teik to Lintang Thean Teik, before rejoining Lebuhraya Thean Teik.

Authorities urge the public to exercise caution and adhere to road safety protocols, including observing road signs, barriers, cones, and light beacons.

Soft launch of Iconic Harmony at Alma

Iconic Worldwide Bhd is engaged in preliminary discussions with potential partners to develop mega townships and industrial projects throughout Malaysia.

The group is also exploring avenues to establish resorts, villas, and theme parks, with the aim of bolstering tourism in Penang and leveraging the island’s distinguished reputation as a top-tier global tourist destination.

These developments are integral components of the group’s comprehensive strategy to fully capitalise on the potential within its property development and hospitality management ventures.

This strategic direction is being guided by the leadership of the new controlling shareholder and executive chairman, Datuk Seri Tan Kean Tet.

Tan expressed confidence in the future prospects of the real estate and hospitality sectors in Penang, citing substantial growth in tourism and the commencement of significant infrastructure projects this year, such as the Penang LRT and the expansion of the Penang International Airport (PIA).

He remains steadfast in his belief that the future holds promise for real estate and hospitality in Penang.

“As we embark on our next chapter with a renewed focus on property development and hospitality management, we will make bigger and bolder bets that will accelerate our growth and leave an indelible mark on the real estate industry. We are determined to turn around the group and explore opportunities to expand our business.

“On the property side, we have begun early discussions with potential partners to explore opportunities to develop mega township and industrial real estate projects in Malaysia. I believe that demand will only grow for these projects due to Malaysia’s unique appeal as a destination for foreign direct investments (FDI) and domestic direct investments (DDI),” he said.

Tan said the implementation of visa-free travel for tourists from China and India has delivered a positive impact on the local tourism industry, which will support the growth of the group’s hospitality business.

In addition, the expansion of PIA’s capacity from 6.5 million to 12 million passengers a year, slated for completion in three to four years, will deliver a major boost to the local tourism industry.

“This is a major, catalytic infrastructure project that I believe the market has yet to appreciate,” he said in a statement.

Tan, who was previously a major shareholder of Iconic, is now a controlling shareholder of the group. This is following the group’s successful corporate exercise that raised RM95.6 million via an oversubscribed rights issue, which raised his stake to 36.59 per cent.

Iconic plans to utilise 41.6 per cent of the RM95.6 million gross proceeds to acquire a parcel of freehold, vacant land measuring 15 acres in Paya Terubong, Penang Island.

“The group will submit a proposal to the Penang state authority for planning permission to construct a residential development on this newly acquired asset. It is expected that the gross development value (GDV) of this project will be more than RM300 million,” he said.

In a further boost to the group’s hospitality segment, in the fourth quarter of this calendar year, Iconic will start to manage the Iconic Regency, a serviced apartment in Sungai Nibong. The 42-storey Iconic Regency, one of Penang’s tallest residential towers, comprises 268 serviced apartments with built-ups ranging from 500 sq ft to 850 sq ft.

Source: NST Online

Dua Tanjung, an upcoming condominium development by UDA Holdings Berhad in Tanjung Tokong. Situated along Jalan Desiran Tanjung, it stands adjacent to The Brezza condominium. Boasting a prime location, it’s merely a 5-minute walk to Island 88, with convenient access to essential amenities within the established upscale neighborhood.

This development will witness the construction of two blocks of 48-storey condominiums, comprising a total of 600 residential units. These units will offer a built-up size ranging from 850 sq. ft. to 1,100 sq. ft. Additionally, the development will include an 8-level car parking podium.

The project is still in the planning stage. More details will be available upon the official launch.

Project Name: Dua Tanjung
Location : Tanjung Tokong
Property Type : Condominium
Total Unit: 600
Built-up Area: 850 sq.ft. – 1,100 sq.ft.
Land Tenure: Leasehold
Indicative Price: (to be confirmed)
Developer: UDA Holdings Berhad

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider or party in question.