Proposed Bayan Lepas LRT

Putrajaya has decided not to proceed to grant a government guarantee for a US$500 million (RM2.04 billion) loan application by Penang to partly finance its RM9.5 billion light rail transit (LRT) project.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the decision was in line with the revised revenue and income projections for the country, as well as the government’s focus to restore the economy, following the Covid-19 pandemic.

Find out more about Bayan Lepas LRT

Should the loan go through, Tengku Zafrul said it will increase the federal government’s commitment on operational and development expenditure, as well as other off-budget projects borne by the government such as the MRT Line 1 and 2 (RM71 billion), LRT3 (RM17.7 billion), the Pan Borneo Sarawak Highway (RM13 billion) and the East Coast Rail Link or ECRL (RM48.85 billion).

“Any new loan with a government guarantee should be scrutinised as much as possible, as it will increase the government’s contingent liability. Unchecked increases in the government’s contingent liability could increase fiscal risks and affect Malaysia’s credit rating given by international rating agencies.

“Therefore, it is prudent for the government to limit the exposure of government guarantees by reorganising the projects according to the priority and repayment capacity of the debt,” Tengku Zafrul said in a parliament written reply dated Nov 25.

As of Sept 30, the total value of government guarantees stood at RM289.8 billion or 20.1% of the country’s GDP, he said.

Tengku Zafrul was responding to a question by Tanjong MP Chow Kon Yeow, who is also the chief minister of Penang, on whether the federal government will provide a government guarantee to Penang for the loan applications to finance the state’s LRT project.

In November last year, Chow said the state government will form a special purpose vehicle (SPV) to issue bonds to raise funds to pay for the project.

At the time, he said then prime minister Tun Dr Mahathir Mohamad had assured that Putrajaya will provide a sovereign guarantee for bonds issued through the state’s SPV, to raise money for the LRT project under the RM46 billion Penang Transport Master Plan (PTMP).

Chow added that Penang would not have been able to raise enough in the bonds market, without Putrajaya’s guarantee.

Tengku Zafrul, in the written reply, said the finance ministry received a letter from the Asian Development Bank (ADB) dated Jan 25, 2019, with regards to the application by the Penang government to obtain a loan from ADB to finance the LRT project.

He said that according to ADB’s financing terms, the loan will be charged at a higher repayment rate and cost of financing, as the bank places Malaysia as an upper middle income country, which has a higher maturity premium, with a spread of 0-50 bps, compared with 0-20 bps previously.

The minister said if the government agrees to the loan from ADB, the allocation should be provided for, in the annual budget and the rolling plan of the Malaysia Plan.

“The Penang state government needs to re-examine the projects based on priority.

“The prioritised projects should then be submitted for further study by the Economic Planning Unit, Prime Minister’s Department to be considered under the upcoming rolling plan of the Malaysia Plan,” Tengku Zafrul said.

The LRT project, the first of its kind in the state, spans 19 stations across a 22km line linking the city centre of George Town to Bayan Lepas down south. The Bayan Lepas LRT line is said to be one of the priority projects to be delivered under PTMP.

Source: EdgeProp.my

GUH Realty Sdn. Bhd. (a subsidiary of GUH Holdings Berhad)  and Centralised Dormitory Sdn Bhd will be jointly developing 5 blocks of 5-storey foreign workers dormitory in approximately 7.5 acres of land at Valdor, Penang. It is located along Jalan Nafiri, adjacent to North-South Expressway.

This development comprises a total of 335 units foreign worker dormitory and can house approximately 6,000 foreign workers for nearby industrial parks, namely Batu Kawan Industrial Park, Penang Science Park and Bukit Minyak Industrial Park. It was initially targeted to be completed in stages from the middle to end of 2022, but it is not known whether would the date change due to the pandemic.

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The government has instructed banks to automatically approve applications to freeze loan repayments by applicants in the bottom 40% income group (B40) as well as micro-enterprises with debts of below RM150,000.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz (pictured) announced this today during his winding-up speech on Budget 2021 in Parliament.

As for those in the middle 40% income group (M40) seeking a reduction in monthly installments, they would have to make a self-declaration with the banks, but can do so without documents.

Zafrul also said those who do not fall under any of the above categories can ask their banks directly about repayment assistance.

He said more than 700,000 Malaysians had applied for the second moratorium phase, now under Budget 2021, with some 98% of applications approved.

He added that the government will be consulting with banks moving forward and that Putrajaya is committed to helping the people if the situation worsens due to the Covid-19 pandemic.

Source: EdgeProp.my

Penang has been named as one of the “11 Best Islands for Retirement Abroad” by International Living, a website that covers global retirement or relocation opportunities, earlier this month.

The other islands which made into the list were Mallorca in Spain, Ambergris Caye in Belize, Ireland, Roatan in Honduras, Isla Mujeres in Mexico, Malta, Isla Colon in Panama, Bali, Koh Samui in Thailand and Las Terrenas in Dominican Republic.

In an article published on thinkadvisor.com today, a caption on Penang read: “Penang, off the coast of Malaysia, is former British Empire outpost with an English-speaking populace.

“Penang’s largest city, George Town, is home to eclectic architecture, a vibrant art scene, and terrific street food.

“As Penang is located in the middle of Southeast Asia, resident can easily reach other destinations in the region as well as Australia and New Zealand.

“A couple can live well on a monthly budget of between $1,500 and $2,500.”

International Living’s executive editor Jennifer Stevens had said that on each of the 11 islands they highlighted, it was possible to live comfortably on a modest income.

Stevens had also said that with a budget from $2,500 a month for a couple, it stretched quite nicely in places where life was simple and the pleasures of sunshine, sand and surf were included, all for free.

Chief Minister Chow Kon Yeow has taken to his official Facebook page to say that Penang was proud to be named alongside 10 other best islands for retirement abroad.

Aside from being known as a cultural melting pot, he said, George Town in Penang was also listed as a Unesco World Heritage Site in 2008.

“In addition to that, Penang has already been recognised as the street food haven by many visitors.

“Most importantly, our Penang Lang (the people of Penang) are warm and friendly,” he added.

Last month, Penang’s assam laksa made it into the list of “The World’s 50 Best Foods” by CNN Travel.

In June, George Town made it into the list of “The 10 Best Destinations for Digital Nomads”, with good cost of living, ample co-working spaces, good level of free Wi-Fi and friendliness.

The survey carried out by Storage Cafe, an online platform that lists self-storage units for rent, polled a number of digital nomads to whip up the list of the best destinations for remote workers.

It conducted research on the 100 most recommended locations based on 20 factors such as cost of living, quality of life, friendliness to foreigners, internet infrastructure, safety, healthcare, air pollution and entertainment.

Source: NST Online

Ivory Properties Group Bhd (IPGB) said it has received the shareholders’ approval for the acquisition of two pieces of adjoining freehold land, totaling 1.98 hectares (ha), located opposite Penang Queensbay Mall.

The announcement was made following IPGB’s virtual Extraordinary General Meeting (EGM) today, in which shareholders and proxies participated in the meeting via live streaming, and voted in favour of the resolution.

In a statement, IPGB said the strategic purchase was in line with the company’s plan to expand its landbank in locations with growth potential and strengthen its foothold in the property market in Penang.