Artist impression

Penang International Airport (PIA) expansion project will take place this year and will be fully funded by Malaysia Airports Holdings Bhd (MAHB).

Transport Minister Anthony Loke Siew Fook said this when he made his first official working trip to Penang yesterday, revealing that the expansion, for now, would cater to 12 million passengers per annum.

On Friday, Prime Minister Datuk Seri Anwar Ibrahim announced that PIA and the Sultan Abdul Aziz Shah Airport (LTSASS) in Subang, Selangor, would be expanded but the construction of the new Kulim airport in Kedah would be stopped.

“The funding will come from MAHB, not from the Federal Government. The Penang International Airport is the third busiest airport in Malaysia and it is commercially viable for MAHB to undertake the project.

“This will also accelerate the project, which will begin this year, probably by the third quarter, and finish within three to four years. MAHB will call for tender in April.

“The airport was upgraded from 2009 until 2013 to cater to a capacity of 6.5 million passengers per annum. But in less than six years, the passenger arrivals exceeded the target in 2019 as it recorded 8.3 million passengers per annum.

“In 2020 and 2021, because of the Covid-19 pandemic, the number came down. But last year in 2022, the trend (of passenger arrivals) went up. Even though the borders were opened in April, the airport recorded 4.27 million passenger arrivals last year. This shows that this year it will hit more than 8.5 million. Therefore, the Government sees the need for it to be expanded.

“So, MAHB has been directed to fund the project. They are able to do it because they have the funds, and it is a commercially viable project.

“The expansion project will be able to increase the capacity of passenger arrivals from 6.5 million to 12 million passengers per annum, double the capacity,” Loke told a press conference in Komtar.

He added that the control tower at the airport would be relocated to allow the terminal floor space to be increased by 100%.

When Loke was the transport minister in 2018, the Federal Government approved the PIA expansion project, but put it on the back burner after a change of Federal Government.

Loke, reinstated in his job after the formation of the Unity Government following the 15th General Election, said the previous construction design was still valid. He explained that the expansion project does not require any land reclamation or acquisition or relocation of a nearby Chinese school.

Asked by a reporter about the cancellation of the proposed Kulim airport in Kedah, Loke said his ministry has not received any application for an aerodrome operator licence from any private party.

He said moreover Kedah has currently two airports – one in Alor Setar and another in Langkawi.

Chief Minister Chow Kon Yeow, who received Loke during his courtesy visit earlier, thanked the transport minister for visiting Penang and giving his support to the airport expansion project.

“We’re glad that the minister is here with his delegation to have a meeting with various stakeholders and agencies associated with the airport expansion and other related transport matters.

“The state government will give its full cooperation to Malaysia Airports Holdings Berhad, and will also ask all state government agencies, especially the district and land office, to facilitate the airport expansion project implementation,” Chow said.

Source: Buletin Mutiara

Marina Residence, a high-rise residential development by Welcome Properties Sdn. Bhd. in Teluk Air Tawar. Located on 11 acres of sea-facing land next to Quayside @ Clear Water Bay, just a stone’s throw away from Robina EcoPark. It is less than 10km to Penang Sentral via Butterworth Outer Ring Road, about 20 minutes drive to Penang Bridge.

The development consists of three blocks of low-density condominiums and a five-storey car park building. It includes a total of 404 units of resort-style homes with a built-up size ranging from 1,208 sq. ft to 1,593 sq. ft.

Property Project : Marina Residence
Location : Teluk Air Tawar
Property Type : Condominium
Built-up Size: 1,208 sq. ft to 1,593 sq. ft.
Total Units:: 404
Tenure : {to be confirmed)
Indicative Price: RM546k onwards
Developer : Welcome Properties 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.

Greatech Technology Berhad is realising its 10-year plan that involves venturing into the solar and life science industries, according to co-founder and CEO Datuk Tan Eng Kee. The company’s plan is divided into two parts: Factory Automation and Process Automation. The four pillars of the former will be solar, e-mobility, life science, and semiconductor, with the solar and e-mobility industries expected to generate revenue for the company within two to three years, and the life science and semiconductor industries projected to contribute significantly from 2025 to 2027. Greatech plans to shift its focus to Process Automation from 2028 to 2032.

Greatech announced the construction of a new facility, BK IV, in Batu Kawan. The new facility, with a built-up area of 500,000sq ft, will be constructed on an 11.58-acre site in Batu Kawan Industrial Park. The company is set to create an additional 500 job opportunities with this new plant.

The new plant will be divided into two parts, with one part dedicated to life science automation, according to Tan.Greatech aims to create more medical and life science automation in Penang. The company has a total of 1,288 employees, with 50% of staff being design engineers, and 98% of employees being local talents.

Greatech Board chairman Ooi Hooi Kiang said the company would invest about MYR1.3bn ($312m) in the expansion of BK IV. The company envisions building Penang into a world-class automation hub and becoming a top 10 global factory automation solutions provider within a few years.

The Malaysian Government remains committed to supporting companies such as Greatech, according to International Trade and Industry (MITI) deputy minister Liew Chin Tong. MITI’s National Investment Aspiration highlights the need for economic complexity, integration of local supply chains with regional and global supply chains, and creation of new economic clusters and high-value job opportunities. The Government aspires to see the industry move up the value chain and produce more innovative and high-value products that will enable Malaysia to compete globally.

Malaysian Investment Development Authority (MIDA) deputy CEO Lim Bee Vian encouraged all companies in Malaysia to incorporate Environmental, Social and Governance (ESG) practices into their operations.Greatech’s investment in ESG practices is a shining example of corporate responsibility that other companies can emulate, according to Lim.

Penang Chief Minister Chow Kon Yeow expressed his congratulations to the Greatech team and all who were involved in bringing this expansion to fruition. He is hopeful that the expansion can nurture local talents and enhance their knowledge and exposure to the latest technology in solar, e-mobility, life science, and semiconductor.

A bypass connecting Hijaun Hills to Bander Tasek Mutiara in the south Seberang Perai (SPS) district is set to be constructed, enhancing accessibility to the schools in the neighbourhood.

The bypass will be constructed from Jalan Tasek Mutiara 10 to Jalan Hijauan Hills 1.

This was announced by State Transport and Infrastructure Committee chairman Zairil Khir Johari during a press conference held on Sunday (Feb 26).

Zairil said the Traffic Impact Assessment (TIA) received by the Seberang Perai City Council also suggested that the construction of the bypass must be prioritised.

“Parents staying in the neighbourhood have complained that they have to use a longer route via the main road to send their children to the schools even though the schools are only less than 1km away.

“There are seven schools within the 1.5km of the residential area.

“The task to construct the bypass has been given to the state Public Works Department (PWD) and the cost of the project is to be borne by the state government,” Zairil said.

The seven schools are Sekolah Menengah Tasek, Sekolah Kebangsaan Bandar Tasek Mutiara, Sekolah Jenis Kebangsaan (Tamil) Tasek Permai, Sekolah Menengah Tasek Mutiara, Sekolah Menengah Jenis Kebangsaan (Cina) Jit Sin II, XCL International School Pearl City, Penang and SRJK(C) Keng Koon.

It is learned that the duration of the project is 30 weeks, and it comprises the construction of a new road, a road median, a pedestrian walkway, a new drain, upgrading of the existing road, installation of streetlights as well as CCTVs.

The project is estimated to cost RM5.3 million. It will be a two-way bypass road with four lanes.

Source: Buletin Mutiara

As we step into 2023, the Penang property market is expected to continue its gradual recovery phase from the pandemic-induced slowdown. The year 2021/2022 was a good time to buy property in Penang, thanks to the Home Ownership Campaign (HOC), record-low interest rates, and developers offering freebies, discounts, and rebates to clear their overhang stocks. Looking back, yesterday is always the best time to buy property, and that still holds true for the Penang property market in 2022.

However, as we move forward, the Penang property market is set to face some challenges in 2023. Increasing material and labor costs have made it challenging for developers to keep property prices low. In addition, the 1% increase in the Overnight Policy Rate (OPR) since its record-low in 2022 has led to higher borrowing costs, potentially impacting the demand for property.

Despite these challenges, Penang’s property market is expected to be exciting enough, with several launches in the pipelines. The residential market will continue to focus on affordable and mid-range segments, with high-rise condominiums in the affordable price range of around RM500k being the main focus. The trend is expected to continue in 2023, with some niche high-end projects also expected to be launched in good locations.

As indicated in the National Property Information Centre (NAPIC) transaction data, Penang’s residential property market has started its gradual recovery phase, with an upward trend in transactions post-pandemic. Between January and September of 2022, the residential property market in Penang experienced significant growth, with transaction volume increasing by 46% and transaction value increasing by 44% compared to the same period in 2021.

Taking a closer look, there was a comparable upswing in transaction volume on both Penang Island and the mainland. However, during Q3 2022, transactions on the mainland saw a more significant increase. This trend is further evidence that there has been a continuing rise in the number of properties being transacted on the mainland.

2023 Development Highlights

Some of the most popular projects in 2022 and expected to garner significant attention in 2023 are The Meg at Andaman by E&O Property, along with Ideal Residency, Ideal Venice Residency, and Foreshore Residence. Notably, most of these projects are affordable housing projects. For those looking for new niche high-end projects, stay tuned for an upcoming residential project near Codrington Avenue at Pulau Tikus, launching soon. Sunway Dora, located in Bayan Baru, is also expected to launch soon in 2023.

Some other noteworthy developments to mention are Senze@PICC by Hunza Group, The Light City by IJM and Eco Horizon by EcoWorld, which are set to have many activities taking place this year.

For upcoming affordable housing projects, Setia Miracca, and The Millennia, both at Bayan Lepas, are some projects to wait for. Several additional affordable housing developments are slated to launch this year in various locations, including Jelutong, Tanjung Tokong, Sungai Ara, and Teluk Kumbar. Make sure to stay up-to-date on the latest launches by checking our website regularly.

The housing ministry’s plan to revamp public housing by drawing inspiration from Singapore’s HDB has the potential to alter our affordable housing model and policy, which could lead to a significant transformation in the affordable housing landscape in 2023 and beyond.

Batu Kawan: A Flourishing Township with Potential Challenges

Batu Kawan is now a major economic zone for Penang. As the demand for property in Batu Kawan increases, so does the price. The prices of landed houses and condominiums in the area are now comparable to those in the southern part of Penang Island. With the continued influx of foreign investment and new multinational corporations, the trend is expected to continue, making Batu Kawan one of the most expensive areas in Penang mainland.

However, while good sales performance in the primary property market at Batu Kawan may indicate a flourishing economy, it does not necessarily translate into the same demand in the secondary market. This means that those who buy property in Batu Kawan for investment purposes may find it difficult to resell their property at a profit in the short term due to the area’s lack of essential amenities.

Despite the potential challenges, Batu Kawan remains a prime location for property investment. Its strategic location, combined with its proximity to key employment hubs, makes it a promising area for long-term investment.

Is now the best time to invest in property?

Assuming there are no further pandemics, 2021/2022 was likely the nadir of the property market, and we have now entered the recovery phase. It is possible that the best time to buy property may have come and gone, but it’s worth keeping in mind that the current period can still be considered the second-best opportunity to make an investment.

Despite the persistent complaints about rising property prices, it is important to be realistic and acknowledge that developers are in the business of building houses for a profit. With the scarcity of land in Penang and the increasing costs of materials and labor, it’s improbable that property prices will drop in the future, except in the case of affordable housing projects.

Given the government’s ongoing efforts to boost the supply of affordable housing, there is no need to rush if you’re in the market to purchase such property for your own stay. With a variety of options expected to be available, take your time and carefully consider your choices before making a decision. Additionally, it’s worth noting that these projects are likely to remain priced at RM300k or below for the foreseeable future.

– Ken Lim
(Founder, PenangPropertyTalk.com)