It is expected to generate RM6.8bil in jobs in 2015
GEORGE TOWN: Penang’s construction industry is expected to stay flat this year with a value of about RM6.8bil, which is almost the same in 2014.
“The RM6.8bil mark is one of the highest in the history of the construction industry in Penang.
“Due to the economic slowdown, it will be difficult to surpass this figure,” said Penang Master Builders and Building Materials Dealers Association president Datuk Lim Kai Seng.
Lim said the bulk of the projects were hotel and mixed development schemes.
PMBBMDA president Datuk Lim Kai Seng: ‘Due to the economic slowdown, it will be difficult to surpass this figure (RM6.8bil).’
“For the first six months of this year, the value of jobs given out reached RM2.68bil for 171 contracts.
“Of that total, some 153 are from the private sector while the remainder are government contracts,” he added.
The value of contracts from the private sector is around RM2.47bil, while government contracts total RM214mil.
The business contracts generated in 2014 was revised to RM6.8bil from RM4.8bil announced previously, after taking into consideration projects tendered out in late 2014.
Lim said that the association was confident that there were at least over RM4bil contracts given out in Penang in the second half of 2015.
These contracts, he said, were for mainly new hotels and mixed integrated developments.
Some of the big projects are from IJM Land Bhd with a gross development value (GDV) of RM486mil, Eco World Development Group Bhd (GDV: RM600mil), Mah Sing Group Bhd (GDV: RM1.005bil), Sunway Bhd (GDV: RM150mil), Ivory Properties Group Bhd (GDV: RM1.156bil) and Ideal Property Group (GDV: RM1.8bil).
Lim pointed out that the construction cost for the projects would come up to about 40% or about RM2bil of the total RM5bil GDV.
“The renovation will cost about 30% or RM600mil of the RM2bil spending for construction works.
“We can expect spending of over RM800mil for construction and renovation works annually for the next three years from these projects alone,” he added.
Lim said the new shopping malls being planned now would also generate about RM3.5bil worth of jobs for the local construction industry over the next five years.
“This means that there will be about RM800mil to RM1bil worth of construction jobs given out in Penang per annum starting from next year,” he said.
These shopping malls include Penang Times Square Phase 3 which will have a net lettable area (NLA) of 230,000 sq ft, City Mall Bayan City (300,000 sq ft), Southbay Plaza (424,000 sq ft), Penang World City (1 million sq ft), Sunshine Tower (2 million sq ft), The Light Waterfront Mall (1 million sq ft), Mall@Southbay City (750,000 sq ft), The Designer Village (400,000 sq ft), Ikea & Ikano Power Centre (NLA not available), and a mall project by Belleview Goup (1.5 million sq ft).
Aug 4, 2015 ... Malaysian construction projects shrunk in Q1. The real property gains tax, the
difficulties in obtaining housing loans from banks and the impact ...
Trade volume between China and the US hit $441.6 billion in the first three quarters of the year, surpassing the $438.1 billion in trade between Canada and the US. [Photo/IC]
In the past year, the growing pressure on US President Barack Obama's foreign policy due to the unfolding US presidential race cast a shadow on US-China ties despite some achievements.
The international situation and diplomatic practices in the passing year, to a large extent, confirm this contention. Some impartial American scholars agree to it because of the global issues the US faces, and wonder why the US has gone all out looking for "adversaries" in every corner of the world. Also, a number of such scholars believe that whether China and the US can avoid a confrontation largely depends on whether the US can rethink its "dominant power" status.
The world is undergoing profound changes, and that includes China's rise. The changes, however, have made some people in the US nervous, according to some American scholars. The US has got accustomed to being the world's most powerful country. But the fact is, the US' power has been declining. And these people attribute the development to the weakening US leadership and argue that a strong leadership will help restore Washington's unchallenged position in the world.
Needless to say the presumption is unrealistic. A sagacious analysis of the situation, however, can help the US rethink its real position in the world. Regrettably, US decision-makers have failed to read the vicissitudes of the times and still want to maintain world peace under Washington's leadership and change other countries by forcing them to adopt the US model of "democracy".
The world today is different from what the US imagines it to be. Countries, including the powerful ones, will prosper if they follow the general world trend and falter if they go against the tide. The trend suggests the developing world as a whole will continue to rise because emerging countries now contribute more than 50 percent to world economic growth. Even some Westerners admit that no major world issue can be resolved without the participation of big countries such as China, India and Brazil.
Despite all this, there is hardly a country that doesn't want to maintain and develop good ties with the US. The BRICS countries expect smooth cooperation with the US. Russia may be determined to rid Syria of terrorists, but it has still made it clear that it wants cooperation with the US. China's willingness to cooperate with the US is also beyond doubt. But the problem is, the US has not made appropriate changes in its stance and often takes actions without paying attention to other countries' interests.
Because of China's consistent efforts, Beijing and Washington have made notable achievements in economic, military and cultural fields, and these hard-won achievements should be cherished by both sides. But by being unnecessarily worried that China will challenge its hegemonic status, the US has been making moves to contain China on various fronts. Apt examples are the US' tough and even provocative stance and actions on the South China Sea issue.
The ever-increasing interdependence of China and the US should have led to better bilateral ties. And with many US allies, including Britain, Canada and Australia, showing greater interest in cooperating with China, one wonders why the US cannot do the same when it comes to its relationship with China.
By Wang Yusheng (China Daily)
The author is executive director of the Strategy Study Center, China Foundation for International Studies.
Related:
China Establishes PLA Army General Command, Creates Rocket Force, Strategic Support Force - nuclear strategy to remain consistent
At the inauguration ceremony for the three military forces, President Xi Jinping conferred military flags to the commanders and political commissars of each force.
The commander of the PLA Army is Li Zuocheng, who was previously commander of the Chengdu Military Region. The Rocket Force is headed by Wei Fenghe, previously commander of the Second Artillery Corps, while the Strategic Support Force chief is lieutenant general Gao Jin, former president of the PLA Academy of Military Sciences and chief of staff of the Second Artillery Corps.
President Xi Jinping looked forward to 2016 in a speech calling for confidence and hard work for a good start in the home stretch of building a “well-off society in an all-round way”.
In his New Year speech, Xi said a Party meeting in late October had set out a promising blueprint for development over the next five years.
He said lifting tens of millions of rural people out of poverty was his top concern and called for joint efforts to achieve this goal.
“We should care for all people facing difficulties ... making them feel warm from the bottom of their hearts,” he added.
China must not be absent from international affairs, Xi said in the speech, as the world was looking forward to voices and answers from China.
“The world is so big, the challenges so complicated. For those people torn by hardship and war, we need to offer not only sympathy and compassion, but also responsibility and action.
“China will always welcome the world with an open embrace, and we will extend our hand to those in difficulty as best as we can, and our ‘circle of friends’ will grow,” Xi said, borrowing a term from the messaging app WeChat. — China Daily / Asia News Network
Events that shaped China in 2015
THE year 2016 will see China implementing its 13th five-year plan, pursuing an economic growth of no less than 6.5% and hosting the G20 summit.
But before that, let’s take a look at eight major headlines in China in 2015.
China Victory Day parade
All eyes were on Beijing on Sept 3 as Chinese soldiers marched along Chang’an Avenue to commemorate the 70th anniversary of the victories of the Anti-Japanese War and World Anti-Fascist War.
Seventeen other countries such as Russia, Mexico and Cuba sent their troops to take part in the parade, while Russian President Vladimir Putin and South Korean President Park Geun-hye were among the international dignitaries in attendance.
But most Western leaders, as well as Japanese Prime Minister Shinzo Abe, shunned the event. The parade was widely interpreted as a showcase targeting Japan, which China has denied.
Yuan in the basket
The Chinese yuan has been admitted into the special drawing rights (SDR) currency basket in the Washington-based International Monetary Fund alongside the US dollar, British pound, Japanese yen and euro.
Back in 2010, the yuan had failed to be included in the SDR as it did not meet the “freely usable” criterion. China then introduced a series of measures to reform its financial market and speed up the process of capital account convertibility. The new basket, to be launched on Oct 1, 2016, will feature the yuan with a 10.92% weighting.
Xi visited the United States
Chinese President Xi Jinping had his first trip to the United States as China’s leader in September. Among the deliverables in a 49-point outcome list of Xi’s state visit published by the Xinhua News Agency were conducting a forum to exchange views on judicial reform, seeking to enhance counter-terrorism cooperation, designating 2016 as China-US Tourism Year and agreeing not to steal each other’s trade secrets.
When speaking at the United Nations General Assembly, Xi pledged a donation of US$1bil (RM4.29bil) to the UN for a peace and development fund. He also took a group photo with the chief executives of top US and Chinese tech companies, including Facebook’s Mark Zuckerberg and Alibaba’s Jack Ma, at the Microsoft campus.
The Chinese media noted that the total market value of the companies present was almost US$2.5 trillion (RM10.73 trillion) “or one-tenth of the combined GDP of China and the United States, or the total GDP of the United Kingdom”.
... and the United Kingdom
Xi visited Britain in October. China and the United Kingdom issued a joint statement declaring a “global comprehensive strategic partnership for the 21st century” which, among others, pledged to support each other in (China’s) Belt and Road initiative and (Britain’s) National Infrastructure Plan and the Northern Powerhouse.
During Xi’s trip, China General Nuclear Power Corporation entered into a deal with energy company EDF for a £18bil (RM115bil) nuclear plant at Hinkley Point, Somerset.
A light-hearted moment was captured in a selfie at Manchester City’s ground. China’s elite politicians are rarely seen taking selfies but at Manchester City’s ground, football fan Xi obliged to a selfie with footballer Sergio Aguero and UK Prime Minister David Cameron. Xi’s UK trip was hailed by Xinhua as opening a “golden era” of China-UK ties.
Belt and Road is underway
The Belt and Road initiative continued to be a buzzword in China. Countries along the routes – land-based Silk Road Economic Belt and seafaring 21st Century Maritime Silk Road – have responded warmly to the initiative to foster connectivity and cooperation.
The Asian Infrastructure Investment Bank (AIIB), a development bank for infrastructure projects, was formally established in December and will be put into operation following the first-ever meeting of its board of directors and executive council in January.
The US$40bil (RM171bil) Silk Road Fund, meanwhile, announced its first investment – a US$1.65bil (RM7bil) Karot hydropower station in Pakistan – during Xi’s state visit to the country in April.
The US presence in the South China Sea
The South China Sea, an important maritime passage for trade and a resource-rich region, is the subject of overlapping territorial claims among China, Brunei, Malaysia, the Philippines and Vietnam. China has said that its extensive construction on the Spratly Islands, which it calls Nansha, is for civilian purposes.
The United States, in denying China’s claims over the rocks and reefs, expanded its military presence in the waters by sending a destroyer within 12 nautical miles of Subi Reef in the Spratly Islands in October.
In early December, it deployed a spy aircraft to Singapore for the first time to step up its surveillance in the South China Sea.
Most recently, an American B-52 bomber unintentionally flew within two nautical miles of the Cuarteron Reef, prompting Beijing to lodge solemn representations with the United States.
First Nobel laureate in science
In October, Tu Youyou became the first Chinese citizen to win a Nobel Prize in Physiology or Medicine for discovering the anti-malaria drug artemisinin, which is extracted from sweet wormwood.
Tu, 85, is also the first female Chinese national to win a Nobel. Chinese Premier Li Keqiang said Tu’s Nobel prize “marks a great contribution of traditional Chinese medicine to the cause of human health”.
Enter the second child
China’s decades-long one-child policy has officially been scrapped. All couples are now allowed to have a maximum of two children in a legislation rubber-stamped on Dec 27 to address the challenges of an ageing population.
Xinhua said the two-child policy would inject 30 million more people into the workforce by 2050, lower the percentage of senior citizens in the population by 2% and boost economic development by 0.5%.
By Tho Xin Yi Check-in-China
Video and full text of President Xi’s New Year address
December 31, 2015
In a televised address on Thursday evening, Chinese President Xi Jinping extended New Year wishes to people across the Chinese mainland, compatriots in the Hong Kong SAR, the Macao SAR and Taiwan, along with overseas Chinese and friends in other countries and regions around the world.
During the speech, Xi recounted the achievements made through the year with regard to economic growth, judicial and education reforms and the fight against corruption, while pledging that the Communist Party of China and the government will continue their efforts to improve people’s livelihood.
In a few hours, the New Year bell will be ringing. We will say goodbye to the year 2015 and welcome the first ray of sunshine of the year 2016.
At this turn of the year, I wish to extend my New Year greetings to the people of all ethnic groups in China, to our compatriots in the Hong Kong Special Administrative Region and the Macao Special Administrative Region, to our compatriots in Taiwan and overseas Chinese, as well as to friends in other countries and regions in the world.
As long as we pay, there will be gains.
In 2015, the great efforts of the Chinese people have paid off.
China’s economic growth continues to lead in the world. Reform has been pushed forward comprehensively. Reform in the judicial system has been further deepened. The special educational campaign of “Three Stricts and Three Earnests” has promoted the improvement of the political eco-system. The fight against corruption has been carried out deeply. Through the joint efforts of the people of all ethnic groups across the country, we see a successful conclusion of the “12th Five-Year Plan”. The general public has enjoyed the increasing “sense of gain”.
During this past year, we solemnly commemorated the 70th anniversary of the Victory of the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War. We held a grand military parade, making the truth clear to all that justice will prevail, peace will prevail, and the people will prevail.
Mr. Ma Ying-jeou and I met in Singapore, with a handshake that transcended 66 years of time and space. This shows the peaceful development of cross-Strait relations is the common wish of the people on both sides of the Taiwan Strait.
During this past year, Beijing won the bid to host the 24th Winter Olympic Games. The renminbi has been included into the Special Drawing Rights basket of the International Monetary Fund. China’s domestically-produced C919 large passenger aircraft rolled off the production line. China’s super computer broke the world record for a sixth consecutive year. A satellite developed by Chinese scientists to detect “dark matter” was launched. Tu Youyou became China’s first scientist to win a Nobel Prize.
These show that as long as we persevere, dreams can always be realized. During the past year, we had happiness, as well as sadness.
The capsizing of the “Eastern Star” ferry, the major fire and explosions at Tianjin Port, the Shenzhen landslide and other accidents have taken the lives of many of our countrymen. And some countrymen were brutally killed by terrorists.
All these are deeply heartbreaking. We will remember them. We wish all the deceased to rest in peace and the living safe and healthy.
Some difficulties and troubles still remain in people’s daily life.
The Communist Party of China and the government will surely continue efforts to effectively guarantee the safety of people’s lives and property, guarantee the improvement of people’s livelihood, and guarantee people’s health.
The year 2016 is the first year when China enters the crucial period to build a moderately well-off society in an all-around way.
The 5th Plenary Session of the 18th CPC Central Committee has made clear China’s development direction for the next five years. The future is encouraging and inspiring. But happiness does not fall from the sky.
We shall establish a spirit to prevail, continue to immerse ourselves in hard work, implement the development concepts of innovation, coordination, green, openness and sharing.
We shall put forth efforts in promoting structural reform, and reform and opening up, promoting social fairness and justice, as well as creating a green political eco-system.
We shall get off to a good start as we advance in the crucial period for China to build a moderately well-off society in an all-around way.
To build a moderately well-off society in an all-around way, our 1.3 billion people should join hands and move forward together. A better life for tens of millions of poor people in rural regions is dear to my heart.
We have sounded the trumpet to win the battle of poverty alleviation. All Party members and fellow countrymen should pull together and work hard as a team, put forth efforts to lengthen this short stave. We should make sure that the entire poor population in rural regions can rise out of poverty on schedule. For all the people in difficulties, we should care for them and let them feel the warmth from deep in their hearts.
Comrades and friends, ladies and gentlemen,
We have only one earth, which is the common home of people of all countries.
During this past year, Chinese leaders have participated in many international conferences and conducted many diplomatic activities. We have achieved solid progress in promoting the development of the “Belt and Road” initiative. We engaged in many international affairs including the United Nations 2030 Agenda for Sustainable Development and issues on dealing with global climate change.
The world is so big, and the problems are so many. The international community expects to hear China’s voice and see China’s plans. China cannot be absent.
Seeing the people trapped deep in suffering and war, we should have compassion and sympathy, but also take responsibilities and action. China will always open its arms to the world and will make all efforts possible to extend our helping hand to the people facing difficulties. Let our “circle of friends” grow bigger and bigger.
I sincerely hope that the international community can work together. With more peacefulness and more cooperation, let’s turn confrontation into cooperation, and turn swords into ploughshares.
Let’s work together to build a community of common destiny of all mankind, which is shared by all people in every country.
Appreciate the good and bad in your life and be optimistic about the future
WITH two days left for this year, it is time to reflect and make fresh resolutions for 2016.
I have learnt to give thanks for all things – good or bad – that came my way.
But why be thankful even for the bad?
Truth be told, it took me a long time to be willing to accept misfortune and longer still to give thanks for them.
Now I appreciate there are far too many factors that I cannot control despite my best efforts.
So I just learn from the sad experiences to avoid repeating them and hold on to the hope that something good will come out of them later.
2015 has been a victorious year for me with more blessings than woes.
With a grateful heart, I choose to remember the former with rejoicing and overlook or forget the latter.
Wonderful blessings
Firstly, I am thankful that everyone in my family is in good health.
My biggest blessing is my baby, Cat.
My life has completely changed since her arrival in mid-year and everything I do now revolves around this little bundle of joy.
Healthy, joyful and growing well, she sits, crawls and listens whenever we speak to her.
On her second swimming class, she was submerged briefly in water and has been doing this with ease ever since.
In a couple of months she will start her nursery and music appreciation classes.
Meanwhile, she is learning to recognise words being pronounced and images with the aid of picture cards.
Being an inexperienced mother, the help and support from my husband, his parents and my parents has been invaluable.
My mother is a great help in tending to baby Cat and teaching me many valuable lessons about caring for my baby.
Everyone knows how difficult it is to hire a maid these days.
The timely arrival of our maid who is well-mannered and an experienced mother to take care of the many household chores lifted a heavy load of me.
It spite of the current weak economy, our architectural firm has been successful in securing several commercial and residential projects in addition to our appointment to design automotive facilities throughout the Asia-Pacific region for an upmarket marque.
We are continuously developing talented architects and designers while fostering in them a passion and enthusiasm for their work.
My 95-year old grandmother fell very ill in September but has since recovered almost fully.
She has good health except for occasional bouts of sleeplessness for a couple of days after which she will be groggy for two or three days and regale us with funny tales.
I am thankful to have clean air to breathe for the next few months before the haze sets in again, and that our economy is not too bad and personal safety here is much better than most other countries.
Looking forward
Our family has a saying that “next year will be a better year”.
Thankfully, it has been so all these years.
I eagerly await the time when baby Cat begins to talk and walk.
I am certain my heart will melt at the sweet sound of her voice when she calls me “mummy” and the sight of her staggering towards me for a hug.
After several months’ hiatus, I am getting ready to return to work which I miss very much.
Meantime, I have to trim off at least 6kg to get back in shape.
With determination, it will take three to four months.
I am yearning for the opening of our new automotive facility which specialises in the restoration and maintenance of classic and exotic cars.
Renovation work on the premises is in their final stages and business should commence in the first quarter of 2016.
Everything seems bright
Ever since my father told me about the downfall of his arrogant business principal, I have always reminded myself to be more careful when everything seems bright.
After a conference in a five-star hotel in Madrid, he asked the latter why he was wearing dark sunglasses in the coffee house.
Puffing a cigar, the principal replied that his future was too bright.
He lost his job soon after and his fortune has dwindled further ever since.
While I receive blessings, I remember there are many poverty-stricken people.
I shall rekindle my passion for charity and do my part for orphans and old folks.
We cannot do much about the burning national issues but I hope that they will be settled expeditiously so that the government can begin to organise itself to take care of wage-earners who are hard-pressed due to the rising cost of living.
On balance, I am optimistic about the future because the scriptures teaches me to always have hope and that the righteousness of God will bring peace and joy to anyone who puts it into practice.
May you be blessed with peace, joy, love, excellent health and prosperity in 2016 and beyond.
By Chermaine Poo Slice of life
Chermaine Poo is a chartered accountant turned actress, TV host, emcee and columnist. Follow her on www.chermainepoo.com, Facebook.com/ChermainePoo, and Instagram.com/Chermaine Poo or drop her an email at info@chermainepoo.com
Chan: ‘We still foresee the volume and value transactions of properties to contract in 2016. However, the contraction this time won’t be so sharp." (Default Alternate Text: "Chan: ‘We still foresee the volume and value transactions of properties to contract in 2016. However, the contraction this time won’t be so sharp.
GEORGE TOWN: Five developers will undertake RM4.33bil in property projects in Penang next year despite a challenging year for the property market.
The developers planned to price their mostly residential properties from between RM480,000 and RM3.3mil.
The price range came on the heels of this year’s launches of between RM200,000 and RM400,000 in strategic locations.
The developers would be shifting their focus to higher-priced residential properties.The condominium units in Bayan Lepas will be from 1,000 sq ft and priced from RM480,000 while three-storey houses with built-up of 5,300 sq ft will be priced at RM3.3mil in Seri Tanjung Pinang.
The developers are IJM Land Bhd with gross development value (GDV) of RM415mil, Ideal Property Group (RM1.46bil GDV), Hunza Properties Bhd (RM600mil GDV), Eastern & Oriental Bhd (RM650mil GDV) and Mah Sing Group Bhd (RM1.2bil GDV).
Real Estate & Housing Developers’ Association (Penang) chairman Datuk Jerry Chan told StarBiz that developers could be shifting their focus to properties priced from RM400,000 as there was a large supply of housing priced between RM200,000 and RM400,000 targeting first-time buyers.
This did not mean that buyers have lost interest in affordable housing with built-up of 900 sq ft and priced from RM500 to RM600 per sq ft.
Chan pointed out that developers would continue to build housing in the affordable range to leverage on the higher density for plots of land but there would be a gradual shift to the “non-affordable” range.
He added that there would be fewer launches in 2016, due to the difficulties in obtaining bridging and end-financing loans from banks.
Referring to the incoming supply of housing that were currently under construction, Chan said this would be spread over a five- to 10-year period, depending on market demand and the size of the schemes.
The National Information Property Centre (Napic) report revealed that the state would see an incoming supply of 72,114 units into the market.
According to the Napic report, the existing stock of houses in the state stood at 393,303, compared with 383,484 in the first half of 2014.
“We still foresee the volume and value transactions of properties to contract in 2016. However, the contraction this time won’t be so sharp,” Chan said.
Ideal executive chairman Datuk Alex Ooi said the group had developed 4,840 units of affordable projects on the island for the last two years.
“We have sold about 60% of these properties. Moving ahead, the strategy is to move into the non-affordable range priced between RM400,000 and RM600,000.
“Ideal Property still has around 300 acres of land bank on the island. We have some 25,000 units of properties planned for the land bank.
“There are still 8,000 units of properties with more than RM4bil in GDV to be implemented over the next 10 years, priced between RM400,000 and RM600,000,” Ooi said.
‘Moderate to flat’ outlook
Ooi expected property market conditions to be “moderate” to “flat” in the coming year.
Mah Sing (North) senior general manager Law Wei Keong said the company had recently completed a survey on the preference of housing products in the country.
“The study revealed that a majority of the 6,000 surveyed favoured houses priced in the range of RM500,000 to RM700,000,” he said.
Of the RM2bil worth of housing projects launched in the country this year, about 16% were priced from RM1mil, while the remaining 84% are below RM1mil, according to Law.
IJM Land senior general manager (north) Datuk Toh Chin Leong said despite the weak market sentiment, the company would continue to launch properties priced below RM800,000.
“It will be a slow year for the property market in 2016,” Toh said.
TrehausIJM Land’s pipeline of projects for next year in Penang included the RM232mil Waterside Residence in The Light Waterfront project next to Penang Bridge, the RM64.7mil Trehaus Condo Villa scheme in Bukit Jambul, and the RM118.4mil Senjayu Terrace project in Jawi, South Seberang Prai.
The Trehaus and the Waterside Residences scheme would be launched in the second quarter of 2016, while the Senjayu Terrace would be introduced in late 2016.
“The price of the three property schemes ranged between RM730,000 and RM1.3mil,” he said.
Meanwhile, Ideal would be launching the RM460mil Forestville, RM600mil Queens Waterfront Residences, and RM400mil Camerlina, located in Bayan Lepas, priced between RM480,000 and RM800,000.
“There is still growing need for mid-range houses that is reasonably priced, located within mature township, surrounded and supported by amenities such as schools with good accessibility, lower density with lifestyle concept,” he said.
Eastern & Oriental will develop the recently launched RM482mil Tamarind and 50 units of terraced houses with a RM168mil GDV in Seri Tanjung Pinang.
The Tamarind units, ranging between 1,000 sq ft and 1,770 sq ft, are priced around RM691,000 and RM1.16mil, while the terraced units, with built-up areas of 5,300 sq ft, are priced from RM3.3mil.
Its general manager (marketing and sales) Christina Lau said the Tamarind was scheduled for completion in 2019.
No date has been set for the completion of the 50-terraced properties.
Mah Sing to unveil Ferringhi Residence 2
Mah Sing will launch the RM735mil Ferringhi Residence 2, the RM350mil Icon Residence and an unnamed RM150mil project in Southbay City, Batu Maung.
“We are targeting the Ferringhi Residence 2 launch in the first quarter,” Law said.
The Ferringhi Residence 2 consists of three blocks offering 632 units with built-up areas from 1,208 sq ft to 2,910 sq ft, priced from RM775,265.
Law said the pricing for the unnamed project would be below RM680 per sq ft.
“The units have built-up areas of 750 sq ft to 1,000 sq ft,” he said.
Meanwhile, Hunza will develop the RM600mil Alila 2 project in Tanjung Bungah, 270 units which have built up of between 1,900 sq ft and 3,300 sq ft, priced from RM775 per sq ft.
“We will promote the 9.8acre project in Indonesia, Hong Kong, and Singapore early next year.
“The key attractions are the size of the units, which are extremely scarce on the island nowadays,” group managing director Khor Siang Gin said.
By David Tan The Star
Construction sector to be busy in 2016 with projects worth RM83bil
KUALA LUMPUR: WITH over RM83bil worth of infrastructure jobs to be awarded next year, it is going to be a busy year for the construction sector in 2016.
“The 11th Malaysia Plan unveiled in May 2015 has reaffirmed the strong pipeline of construction jobs till 2020. The record awards of project delivery partners (PDPs) for four major infrastructure projects with total value of RM80bil have further reiterated the potential works,” said Maybank IB Research in a recent strategy report. This flow of contracts if they are rolled out according to plan, is a new record, outpacing the high of RM28bil dished out in 2012.
The strong job flows are expected to be driven from new tenders in public transport, oil & gas downstream infrastructure and water-related jobs.
New award phase for the Klang Valley Mass Rapid Transit Line 2, is set to take off from the first half of next year while the other rail project coming on strean is the Klang Valley Light Railway Transit (KVLRT) 3. The Gemas-JB double track, which is being reviewed, is another potential.
The total value of rail-related construction jobs was estimated at RM39bil in the medium term, said CIMB Research. “These could be broken into 17-20 chunky packages worth between RM800mil and RM1.5bil each, excluding underground portions,” the research firm said in its recent outlook report.
As for highways, there are the RM4.2bil Damansara-Shah Alam Highway (DASH), the Sungai Besi-Ulu Kelang Elevated Expressway (SUKE), and the remaining West Coast Expressway (WCE) packages to be awarded. In East Malaysia, eleven more packages of the 1,090km Pan-Borneo Highway is expected to be tendered out in phases next year.
As for oil and gas infrastructure, Petronas’ Refinery and Petrochemicals Integrated Development (Rapid) project in Pengerang, Johor, is expected to see investments worth RM18bil based on Budget 2016.
On water-type contracts, CIMB Research reckoned that over RM2bil worth of jobs could be dished out and this excludes potential jobs from the private sector side.
The country’s strengthened ties with China have also injected further optimism into the construction sector.
“Chinese contractors have expressed interest in the rail projects, specifically, the Gemas-JB double track rail and Kuala Lumpur-Singapore high speed rail. Local contractors could partner them in bidding for the projects. With the Chinese companies’ ability to offer attractive financing packages, this would raise their chances of winning the projects, while allaying concerns on project funding issue,” said Maybank Research.
One other key project to watch for is the Penang Transportation Master Plan (PTMP) that is said to have contract value of RM27bil.
As for stock picks, Maybank IB Research has Gamuda Bhd at its top pick. The stock was a likely beneficiary of the PTMP and could also clinch additional jobs from the mega rail projects including KVLRT 3 and Gemas-JB double track rail, the research firm said.
CIMB Research also has Gamuda as its big-cap pick for the largest exposure to MRT 2. Among small/mid-cap it has Muhibbah Engineering Bhd as the preferred stock for the company’s US-dollar theme and exposure to Petronas’ Rapid.
“In the water segment, Salcon Bhd could emerge with a bigger share of wins. The company’s tender book currently stood at RM1bil to RM2bil,” said CIMB Research.
On the other hand, Public Invest Research has a neutral “call” on the sector as “most of the counters under our coverage were already fairly valued.”
“Currently, the construction index is priced at 13 times one-year forward earnings, which is also equal to its long-term mean. Hence, we believe the sector is fully valued for now, with most positives already priced in.”
As for stock picks, the research firm favours WCT Holdings Bhd as its job replenishment was better than expected with RM2.7bil clinched to-date, bumping up its unbilled orderbook to more than RM5bil.
“Hock Seng Lee Bhd is expected to benefit from the Pan Borneo project, while Gamuda also looks attractive after the stock dipped below our fair value.”
