Penang’s RM27bil impact, property companies to benefit from masterplan

Property News/ 5 December 2014 Leave a comment

The Penang transport Master Plan is set to improve accessibility and spur further gains in the state’s vibrant property market, according to AmResearch.

Major construction and property players with projects in Penang are set to be major beneficiaries of the state government’s RM27bil transport masterplan.

The Penang Transport Master Plan (PTMP) is set to improve accessibility and spur further gains in its vibrant property market, said AmResearch in a report yesterday, adding that the Government’s various initiatives would create significant infrastructure opportunities for Malaysian contractors.

“Indeed, the spotlight will turn to the balance RM20bil of major infrastructure works being lined up within Penang over the next 25 years.”

The research house pointed out that the first component – the RM6.3bil Penang undersea tunnel project – was awarded to the Zenith-BUCG Consortium last October, with feasibility studies and detailed design works to be completed by end-2015.

“The state government’s preferred approach is to appoint a project delivery partner (PDP) to co-ordinate the entire project. The request for proposals have attracted about 50 suitors to-date and will close next February.

“This will be quickly followed by the contract award in six months’ time (by the third quarter of 2015), as physical work on the PTMP is scheduled to start by 2016.”

Given the huge financial and technical requirements, AmResearch is of the view that the bidders will likely form consortiums to strengthen their chances, which include tie-ups with international contractors of repute.

“Among the pack, we believe Gamuda Bhd has the upper hand over its rivals.”

The research house said Gamuda already possessed the necessary track record in handling mass rapid transit (MRT) jobs.

“It is the PDP and tunnelling contractor for the Klang Valley MRT Line 1, and was recently appointed as the PDP for the MRT Line 2 as well.”

AmResearch added that Gamuda had the balance sheet strength and relevant expertise in handling tunnelling works, such as the Klang Valley MRT 1, Kaohsiung MRT and SMART Tunnel.

Malaysian Resources Corp Bhd, the research house said, was another beneficiary. “Its proposed Penang Sentral development (approved by the state government in September) is set to be the main transport hub for Penang and the northern region of Peninsular Malaysia.

“Phase 1, with a gross development value (GDV) of RM512mil, consists of a transport hub, terminal and retail mall.

“While not directly under the PTMP, Penang Sentral certainly complements the state government’s transport improvement agenda. This suggests more upside to the entire project’s initial GDV estimate of RM2bil.”

The imminent roll-out of the masterplan is also a timely boost for IJM Land Bhd’s “The Lights” in Jelutong, as it moves to launch the commercial components under Phase 2, which has a GDV of over RM6bil, said AmResearch.

While the opening of the Second Penang Bridge in March is expected to bode well for the remaining phases of Mah Sing Group Bhd’s Southbay City, which has a GDV of around RM2.7bil.

Source: StarProperty.my

  1. IsaacTan
    December 5th, 2014 at 09:23 | #1

    Great News! Hopefully can ease the congestion and prosper the economy …..

  2. chrissi
    December 5th, 2014 at 10:38 | #2

    This RM27bil initiative actually spreads over 25 years as mentioned in the article, and factoring in all sorts of delays here and there, a more realistic time span would be 40 years. So RM27bil over 40 years, big deal?? think again!

    But the bad news is, the first component of this RM27bil is actually the RM6bil tunnel. MASSIVE environmental destruction has to be done before anything else. Our iconic Gurney Drive will be lost forever. The side effect of this tunnel would be a major commercialization of Penang, meaning more and more high-rise, we have to sell more and more of our real estate to foreigners, a more urbanized Penang, more urban poors will be created, we loose our local identities and characters. Good idea?? Pls think again.

  3. David
    December 5th, 2014 at 18:05 | #3

    I thought 20bil in 5 years but over the next 25 years. A little better than

  4. New Boy
    December 6th, 2014 at 12:16 | #4

    where can I get more detail about penang transportation master plan?

  5. IsaacTan
    December 6th, 2014 at 14:14 | #5

    RM27bil in 25 years is better then nothing in 25 years isn’t it?

    Economic is never gonna be an easy topic.It is not impossible to have all the best situation but it is HARD. Example is hard to retain greenery yet you wanna develop the country.Furthermore Penang is just an island with limited of useable land.

    Penang Gov most likely also need to seek their own funding to make Penang a better State. It will never be so easy that the federal government will just release more fund for Penang due to fear factor Penang may over take KL or Jb in economy?

    In order to have better economy, we have very little choice but to attract foreign investor. Malaysia market was limited and not enough to self sustain. Australia is almost a self sustain country but yet still trying to get foreign investor.Do you think a local semi cond factory will create more jobs or an investment by foreign company like Motorola & Intel will create more jobs?
    Unemployment & inflation rate do have some link with crime rate….So please think deeply on the local identity factor…..

    Undeniable there’re people who like Penang to stay where it was just like 30 years ago and there’re people who wanted Penang to move on catching up in economy……Is a matter of choice how people wanted to live and there’s no right or wrong but the Gov need to listen to the majority people on what they need and develop the State accordingly (hopefully efficiently & without corruption). Just my 2 cents

  6. peter
    December 7th, 2014 at 01:13 | #6

    These people have suddenly singled out the tunnel and making a mojor noise about it, I wonder why no such noisy protest over the 2nd bridge when it was built? And building a bridge has much more enviromental impact then a tunnel. Why not protest against the proposed LRT that goes round the island? This is the usual hidden motive protests and “instant enviromentalists”. How on earth did building a tunnel become such a enormous issue? Would a LRT project on the island face such noisy protests? Somehow I doubt it. It would be intersting to debate the Real Agenda at play here behind this protest noise.

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