The Penang government plans to gazette as a “green lung” a piece of illegally reclaimed land in the seaside town of Tanjung Bungah, state executive councillor Zairil Khir Johari said yesterday.

“The illegally reclaimed land does not belong to any private party. It’s state land and the government plans to gazette it as a green lung,” he told FMT after residents complained about the state government’s failure to build a coastal park promised in 2018.

The Tanjung Bungah Residents’ Association (TBRA) had said earlier today that a five-storey wellness centre was being built on the reclaimed land in exchange for the developer bearing the cost of creating the park.

However, Zairil, who is the assemblyman for Tanjung Bungah, said the proposed wellness centre was on privately-owned land. The developer had been required to build a public park before being allowed to proceed with the project, he said.

“Residents get a coastal park and as for the state, we don’t need to spend (money). But the condition imposed is clear and the park has to come first,” he said.

Zairil said no development was taking place on the reclaimed land.

“The developer owns a small piece of land adjacent to the One Tanjong development, which is not part of the reclaimed land. That is a land to which they have rights,” he said.

Last month, TBRA president Zulfikar Abdul Aziz had staged a protest to urge the state government to fulfil its promise to build a public park at Tingkat Laut 1.

He said the chief minister then, Lim Guan Eng, had announced in April 2018 that the state government would build a 9,000 square meter green park, a boardwalk and an open concrete stage there but the promise had remained unfulfilled after five years.

Source: FMT Online

Malaysia’s central bank will keep its key interest rate unchanged at 2.75% for a third consecutive meeting next Wednesday (May 3) and for the rest of this year and next as inflation has cooled faster than expected, a Reuters poll of economists found.

After reaching a peak of 4.7% in August, inflation dropped to a nine-month low of 3.4% last month, approaching the top of the central bank’s target range of 2%-3%. That provides space to assess the impact of four consecutive rate hikes in 2022.

Over 80% of economists, 21 of 25, in the April 24-27 Reuters poll expected Bank Negara Malaysia (BNM) to keep the overnight policy rate unchanged at 2.75% at its May 3 meeting. The remaining four forecast a 25 basis point rise.

“Malaysia’s moderating inflation path, as seen from the slowdown in both headline and core inflation for March, should be a relief to policymakers, even though inflation remains elevated vs. history,” wrote Chua Han Teng, economist at DBS.

“We expect Malaysia’s economic growth to slow in 2023 amid global external headwinds, and therefore BNM, being cognizant of downside risks, would also aim to keep the monetary policy stance supportive of growth.”

Malaysia’s economic growth rate was expected to more than halve to 4.0% this year from 8.7% in 2022 and was projected to recover only marginally to 4.6% next year, according to a separate Reuters poll. That may discourage the central bank from implementing further rate hikes.

While the median forecast showed rates would remain unchanged at 2.75% until at least the end of 2024, a significant minority — nine of 22 economists — predicted at least one more hike this year.

“Backed by sticky core inflationary pressures, still positive domestic growth momentum and domestic financial stability, we continue to see room for Bank Negara Malaysia to further normalise its monetary policy back to pre-pandemic level,” noted Julia Goh, senior economist at UOB.

Source: TheEdgeMarkets.com

Developers in Penang will delay some new residential projects in the state this year as labour and materials costs continue to rise.

Real Estate and Housing Developers’ Association (Rehda) Penang branch chairman Khoo Teck Chong said the number of new launches this year could be up to 60 per cent lower than in 2019.

He said the pace of new launches in the last two years had already been slower due to the pandemic, but buyers have remained cautious even as Malaysia was transitioning out of the pandemic.

“Not many developers are keen to launch new projects now especially with rising labour costs and material costs,” he said in an interview with Malay Mail.

He added that property developments have already slowed even further since early this year.

He said labour and material costs have increased by almost 30 per cent since the pandemic, affecting many developers.

He said there was now a lot of uncertainty in the housing sector and many developers felt the market would not be able to handle more property launches.

Developers will be monitoring the industry, especially the labour and materials costs, and adjust their plans accordingly, Khoo said.

“We hope that the prices of materials will stabilise by the third quarter of this year and maybe after that, developers will consider launching new projects that have been put on hold,” he said.

According to statistics from the National Property Information Centre (NAPIC), Penang topped the list in new residential launches with 2,560 units as at the third quarter of 2022.

However, Penang also had the second-highest number of overhang or unsold residential properties of 5,222 units valued at RM3.48 billion in the same period.

About 55 per cent of the overhang residential units in Penang were those priced below RM500,000; 30 per cent were properties priced between RM500,001 and RM1 million; while the rest were properties priced above RM1 million.

In 2021, Penang’s residential unit overhang was 5,493 homes.

Khoo said the slowdown in new property launches may affect the supply of affordable housing in the state.

“Rehda has proposed that the state government take over the construction of low cost and low medium cost housing instead of expecting the private sector to build it as part of its contribution,” he said.

He said developers would make the required contributions to the state for the state to build low cost and low medium cost housing.

“It is most ideal to build low cost and low medium cost housing this way, the state identifies a suitable location, the private sector makes the necessary contributions and the state can build using the contributions and allocate it to those eligible,” he said.

Napic statistics showed that out of the 5,222 unsold residential units, a total 1,121 units (21.5 per cent) were affordable housing units priced below RM300,000.

Khoo said affordable housing units should be built only in locations that are in high demand instead of being built in unsuitable locations.

“The state needs to identify where affordable housing is needed and build it in those locations so that there will be higher uptake,” he said.

Source: MalayMail.com

MIDF Research has placed a positive outlook on Mah Sing Group Bhd following the final approval given to the Penang South Islands (PSI) project by federal environmental regulators.

The research house yesterday maintained its “buy” call on the property development group, with a target price of 75 sen.

“We remain positive on Mah Sing as its strategy of quick turnaround and targeting first-time homebuyers will support new sales outlook,” said MIDF in its report yesterday.

Contributing to MIDF’s optimistic recommendation is Mah Sing’s Southbay project, which is located at the southern end of Penang island and stands to benefit from the upcoming PSI project, particularly the development of the Green Tech Park on Island A.

Southbay currently has 21 acres of remaining land, with a development period of eight to ten years. Its land parcels are earmarked for residential and commercial development.

“We gather that Mah Sing may revise the planning as necessary to mid to high-end residential development that is expected to complement the Green Tech Park,” the report suggested.

It also estimated that Southbay’s current gross development value (GDV) of RM1.4 billion will increase further following the potential revision of the project’s development plan, which will positively impact Mah Sing’s long-term earnings.

In light of this projection, MIDF has maintained Mah Sing’s earnings forecast for the 2023, 2024 and 2025 financial years.

“Overall, we are positive on earnings outlook for Mah Sing due to stable new sales outlook,” concluded MIDF.

Yesterday, Penang chief minister Chow Kon Yeow announced that the natural resources, environment and climate change ministry has granted the PSI project approval, which was attached with 71 conditions under an elaborate environmental management plan.

The project would involve the development of three artificial islands with an area of approximately 1,700 hectares in the waters of Permatang Damar Laut, near Bayan Lapas.

Reclamation works are expected to start in the third quarter of this year.

Source: FreeMalaysiaToday.com

The once upon a time buzzing Island Plaza in Tanjong Tokong is set to take the limelight once again after a Hong Kong businessman snapped up the iconic landmark and has vowed to make the place great again!

It will be renamed ‘Island 88’.

Since the emergence of new shopping malls in the state offered stiff competition with one another, Island Plaza was neglected despite being in the prime Tanjong Tokong area.

All is not lost though as the building is expected to go through redevelopment, re-design and major revamping on the road to becoming a preferred destination filled with exciting and fun activities once again.

Chief Minister Chow Kon Yeow said back in the late 1990s, Island Plaza was a hub of commerce, entertainment, and social interaction.

“It was, at the time, one of the major shopping complexes in Penang, after Komtar.

“But as we all know, competition from other malls which emerged later took its toll on this grand structure that used to be Penang’s most glamorous shopping mall decades ago.

“All is not lost though, and with the new management taking over, it’s time to give it a much-needed new lease of life.

“The rebirth of Island Plaza into what shall be known as Island 88 is a testament to our commitment to preserving Penang’s heritage while embracing modernity and progress.

“This would not have been possible without the commitment of Paul Law and Philip Law from the management (Hong Kong), as well as their team’s tireless efforts and dedication to ensure that this project is kickstarted with the highest standards of quality and safety.

“Your unwavering dedication towards your vision of what Island 88 should be is similar to the values that make Penang a great place,” Chow said in his speech during the groundbreaking ceremony of the new project at Island Plaza in Tanjong Tokong yesterday.

The refurbished Island 88 will be a sight to behold, a modern, state-of-the-art facility that will provide our people with world-class shopping, dining, and entertainment options.

“It will be a source of pride for Penang, a reflection of our unwavering commitment to progress, and a clear indication of our resilience in the face of adversity,” Chow added.

Source: Buletin Mutiara