The Business Processing Outsourcing Prime (BPO Prime) and Penang International Technology Park (PITP) projects worth a combined RM11.3 billion, which involve the Penang Development Corp (PDC) and Singapore’s Temasek Holdings Private Ltd, have been deferred due to current property market conditions.

The BPO Prime project with a gross development value (GDV) of RM1.3 billion in Bayan Baru, Penang was to be completed in 2019.

However, it has been postponed indefinitely, inadvertently pushing back the commencement of the PITP project, slated to begin after the BPO Prime project.

On May 23, 2014, Penang’s investment arm PDC signed a memorandum of understanding (MoU) with Temasek and Economic Development Innovations Singapore Pte Ltd (EDIS). The MoU was also to facilitate the setting up of a joint-venture company (JVCo) with PDC holding a 51% stake with the remaining stake held by investors, including Temasek. EDIS will provide project management services to the JVCo. The JVCo is in the midst of being set up.

The Penang government said in 2014 that the PITP and BPO Prime will be completed over the next five to 10 years.

“The BPO Prime will be part of the efforts by the state government to fulfil Penang’s destiny as one of the 31 BPO hubs of the future,” it added.

On July 31, 2015, PDC signed a RM1.3 billion JV agreement with Temasek and EDIS to develop the BPO Prime that would be built on a 2.8ha piece of land, currently housing PDC in Bayan Baru on the island.

Invest-in-Penang Bhd (investPenang) said the BPO Prime project is an integrated and multifunctional development, providing high-quality BPO space amid a green urban setting. It would feature two towers, 29 and 25 stories high respectively.

EDIS senior development director Eng Gim Hwee said BPO Prime is “very much market-driven” in terms of meeting the demands of BPO tenants and buyers of quality residential developments. “Given current property market conditions in Malaysia, we are monitoring the situation before deciding on the next steps,” he told The Edge Financial Daily via email.

EDIS is involved in two key areas in BPO, he said, noting that the first was to drive a global investment promotion strategy that would bring overseas investors to Penang.

“Here, EDIS is working with investPenang to attract overseas investors to Penang and help them set up operations. The global investment promotion strategy is ongoing. As the programme involves a process of engagements and the programme only started in 2016, it is too soon to comment on its [investment] results,” he said.

According to the EDIS webpage, it is a privately owned international economic development company that works with governments and investors to leverage Singapore’s development experience for the benefit of other countries.

In the development of BPO Prime, EDIS is involved in the design and development of BPO Prime as an integrated residential and commercial development based on a “live-work-play” concept.

“These efforts are intended to introduce Grade A offices and a good residential development that will attract multinational corporations to set up operations in Penang.

“As we are monitoring current market conditions on these sectors, we are unable to comment on the demand and supply situation and the next steps for the project now,” he said, when questioned on the property demand in Penang.

EDIS also said as BPO Prime is currently in the design stage, it is unable to share the projected return on investment.

On PITP, which sits on an 83.4ha piece of land, Eng said the project will only take off after BPO Prime.PITP, when completed, will feature two advanced technological parks, residential and commercial units, a medical hub and a green lung.

Meanwhile, investPenang general manager Loo Lee Lian said Temasek and EDIS have yet to indicate a time frame for the construction of BPO Prime. “They are reviewing the design due to the current market condition. The [business] model is for the residential units to be sold and the commercial units — for lease, and it is supposed to encompass a ‘work-play and live’ concept, so that those who work in BPO can stay there. So it is a comprehensive package altogether. It is integrated.

“I think they have asked valuers to look at the property market again, especially the residential segment in Penang and [other parts of] Malaysia,” Loo said in an interview with The Edge Financial Daily.

She said the state is focusing on developing Bayan Lepas into a BPO zone with Multimedia Super Corridor (MSC)-status buildings such as One Precinct, SunTech and Mayang Mall in the vicinity.

“Penang remains a very attractive site for BPO and investors want to go to a second-tier city (first-tier being Cyberjaya and Kuala Lumpur) because it is cheaper and smaller-sized.

“We never depend on one single solution. We always have multiple solutions. We will leave it to EDIS to do their review on the market. Everyone is being prudent. Let them do the analysis, and we will decide then.

“From our point of view, we can always find another alternative for investors. This is only one of the elements of the BPO,” Loo added.

Recall that Penang Chief Minister Lim Guan Eng reportedly said in 2015 that the state aimed to tap into the global shared services and outsourcing (SSO) sector that had doubled to RM12.8 billion in 2013.

“In Penang alone, the cumulative investments for SSO companies with MSC status between the years 2009 and 2014 have reached RM4.1 billion,” he said then.

Global tech researcher Technavio-Infiniti Research Ltd expects the global market share for shared services to grow at a compound annual growth rate of more than 14% by 2020.

The sector provided more than 8,000 high-income jobs to locals who served regional and global markets, with numbers expected to increase by 60% from 2015 to 2018.

The collaboration with Temasek marked the first venture with PDC. As at March 31, 2016, Temasek’s net portfolio value was S$242 billion, according to its website.

Read Source: TheEdgeProperty.com.my

Scots Pavilion, strategically located next to Scotland Road is another brainchild of M Summit Group offering a 22-storey condominium with 89 residential units. The project is assured to captivate you with its unique concept as it is intentionally designed to provide one-stop wellness destination comprising healthcare, therapy, healing, entertainment and leisure cafés.

Be fascinated by its automated parking system where cars are parked on multiple levels stacked vertically to maximize the number of parking spaces while minimizing land usage.

Scots Pavilion, a stylish yet modern building furnished with its own exclusive characteristics comes with an attractive starting price of RM600 psf onwards. Well equipped with a relaxing home environment concept, it features 8 types of design with sizes ranges from 1,008 sq.ft to 2210 sq.ft and up to 6,421 sq.ft for Penthouses (type H, I J). The floor plan contains up to 4 bedrooms, 3 bathrooms, a utility room, a balcony, an open living hall, dining hall and a kitchen.

Ensuring all the comfort and coziness of a home is present, Scots Pavilion offers an exciting range of facilities at Level 2, namely hydrotherapy pool, swimming pool, Jacuzzi, children playground, community function hall. For the convenience of the residents, e-storage, café and physio-therapy centre are also available on site.

This project is currently open for registration. Stay tuned for the launching soon.

Property Project : Scots Pavilion
Location : Scotland Road, Penang
Property Type : Condominium
Total Units: 89
Built-up Area: 1,008 sq.ft. onwards
Indicative Price: RM600 psf onwards
Developer : GL Semesta Corporation (M Summit Group)

Location Map:

BMT Jelas Sdn Bhd has started preliminary works for the proposed RM4.6bil expressway that will connect Jelapang in Ipoh to Batu Kawan in Penang.

The 116 km expressway, named Jelapang-Selama-Batu Kawan Expressway (Jelas), is anticipated to be completed within three years upon obtaining approval from the federal government.

In a statement yesterday, group executive chairman Tan Sri Bahadon Ariffin said the proposed Jelas Expressway would complement the government’s plans for the Northern Corridor and would significantly impact the economic development for the region.

To serve as an alternative link to the main North South Expressway, it would consist 13 interchanges which include Jelapang (Meru), Klebang, Kanthan Baru, Sungai Siput (Utara), Karai, Kati, Anak Kurau, Batu Kurau, Selama, Serdang, Lima Kongsi and Batu Kawan.

Currently, the preliminary works included costing and budgetary processes of the overall acquisition.

“It will narrow down the gap between rural and urban areas, as well as, increase household income,” he said, adding that Jelas would have the longest road tunnel in Asia, stretching 3km across the Bintang Range,” said Bahadon.

Source: Bernama

Homeownership has become easier after Projek Perumahan 1Malaysia (PR1MA) enlarged the eligibility pool.

Prime Minister Datuk Seri Najib Abdul Razak said the income cap has been increased from RM10,000 to RM15,000 to allow more people to purchase their own homes.

He said this was part of efforts to lower the entry bar for those wanting to purchase a place they can call their own.

In line with making PR1MA units more attractive, Najib added that the moratorium period – where purchasers are forbidden from selling their units within a given time – has been shortened to five years from 10.

He said this not only gave people the opportunity to own their home but also transferred wealth in the form of properties to the people.

He expressed his confidence the new measures will not only increase the eligibility pool but make PR1MA homes attractive to those looking to own a home.

“The government recognises the aspiration of the people to own a home and we will try to fulfill this wish through PR1MA,” he said at a press conference today after a meet-the-people session here.

PR1MA CEO Datuk Abdul Mutalib Alias meanwhile welcomed the new measures to enlarge the eligibility pool and to make PR1MA homes more attractive.

He said their homes received good response from the middle-income group.

He said those earning between RM2,500 to RM10,000 a month (also known as the M40 group) favoured PR1MA projects as the the supply of homes which fit their budget was in scarce supply.

“The M40 group is very much under-served, they are not able to afford many offerings on the market but are also not eligible for low-cost housing,” he said.

As at January 2017, PR1MA has 231 approved projects, comprising 266,400 units, nationwide.

Sungai Petani presently has 2,700 PR1MA homes under the Residence SP1 and Residence SP2 residential area schemes.

More than a thousand strong crowd turned up to meet Najib in person and he also presented mock keys to 10 new homeowners.

Also present was Kedah Mentri Besar Datuk Seri Ahmad Bashah Md Hanipah and other state government leaders.

Source: TheSunDaily.my

Upcoming PR1MA projects in Penang

PR1MA @ Gelugor

One of the first few PR1MA affordable housing approved in Penang. This development is strategically located along Jalan Bukit Gambier, undertaken by Ideal Capital Venture Sdn. Bhd. It’s only less than 2km away from University Science Malaysia (USM), neighbouring communities include Gelugor Customs Housing, Centrio Avenue, Taman Tun Sardon, Mutiara Court and etc.

PR1MA @ Batu Ferringhi

This is one of the three PR1MA affordable housing projects approved by Penang State Government in 2016. The development is strategically located along Jalan Sungai Satu in Batu Ferringhi, just a stone’s throw away from the Ferringhi Residence housing scheme by Mah Sing Group.

Novus, an upcoming residential development by Prisma Bumiraya Sdn. Bhd. (Pearl Ocean) at Sungai Nibong, Penang. It is strategically located near Gerbang Bukit Kecil 2, adjacent to Kristal Court Townhouse and Kristal Villa.

The proposed development comprises single block of 44-storey condominium, offering 273 residential units with built-up area ranging from 860 sq.ft. onwards. There will be 8 units per floor.

Property Project : Novus
Location : Sungai Nibong, Penang
Property Type : Condominium
Total Units: 273
Built-up Area: 860 sq.ft. onwards
Indicative Price: RM530,000 onwards
Developer : Prisma Bumiraya Sdn. Bhd. (Pearl Ocean)

Location Map: