investments economic overvie · 2015-02-17 · covering kedah, perlis, seberang prai and northern...

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JS Values Research & Consultancy Sdn Bhd 1 of 22 pages Economic Overview Key statistics Latest release Previous rate Quarterly GDP growth 5.9% (2Q2006) 5.5% (1Q2006)* Annual GDP growth 5.3% (2005) 7.1% (2004) Consumer Price Index (CPI) 3.3% (Aug-06) 4.1% (July-06) Industrial Production Index (IPI) 138.4 (Aug-06) 137.5 (Jul-06) Base Lending Rate (BLR) 6.72% (Sep-06) 6.72% (Aug-06) Exchange rate: RM to US dollar RM3.685 (29/09) RM3.677 (30/08) Source: Department of Statistics Malaysia & Bank Negara Malaysia Manufacturing sector is expected to grow by 7.3% this year, an improvement from 5.1%. Production in the export orientated industries is forecast to contribute 63.6% of total output. The robust performance of the manufacturing sector is based on higher output growth of 8.7% posted in the first half of 2006 and further growth is anticipated for the second half. Deputy Second Finance Minister Datuk Dr Awang Adek Hussin has indicated that the government is confident of achieving the projected 5.8% gross domestic product this year despite global uncertainties. Malaysia’s industrial output in July rose 7.3% year on year. The expansion was in line with the rise in indices of the manufacturing sector (8.8%) and the electricity sector (4.5%). The mining sector has declined by 2.5% to 112.7 from 115.6. IMF expects the Asian economies to grow at 8%, with contribution from buoyant expansions in China and India. IMF also forecasts Malaysia’s real GDP to grow by 5.8% next year, up from this year’s 5.5%. Manufacturing sales in July expanded by 17.3% or RM6.8 billion, to a 12 month high of RM46 billion from RM39.2 billion in the corresponding month last year and was higher by 7.9% or RM3.4 billion from RM42.7 billion in the preceding month. The Consumer Price Index (CPI) for August rose by 3.3% year on year, mainly due to higher fuel and food prices. The increase was slowest pace in six months. When compared with previous month, it decreased by 0.1%. The decrease was attributed to five main groups including clothing and footware, food and non-alcoholic beverages and communications. More highlights next page… Retail’s section BP to invest further in petrochemical… DiGi believes “open office” will help… Cameron to set up plant in PTP Free… Alliance Bank to open more… Biotech to get RM6 million Investment in E&E industry set to hit… Toyota invests RM174mil in auto… CustomWare: Malaysia office will… Pulau Indah to be FTZ Brady's expansion a boost to… Commerce Venture sets up… KFH to step up operations in Malaysia Malayawata plans new plant Molex to expand ops at Prai plant W.R. Grace considering expansion… Plexus Manufacturing to open third… DiGi opens Penang regional office RM1.5 billion i-City project gets… EON to sell Volkswagen marques Maybank opens first Johor Islamic… Smart Modular to invest more in… Investments McDonald’s food on the spot Dijaya signs hypermarket lease deal GC Gruppe opens store in Malaysia Retall opens first tea house in… Bridal studios flock to Jalan Ipoh Wine retailer ventures across the… Expansion repositions Sunway… 'Little India' in the making Carrefour to have 14 outlets by… LV's new store with the 'wow' effect Texchem to open first fine-dining… Volkswagen names 3 Klang Valley… Parkson's expansion to East Malaysia Hypermarket support Jusco first mall to accept Visa Wave… Hangout for teenagers and… Starbucks at Pantai Medical Centre Plans to inject Subang, Mahkota… Hytex China plant to start ops Tomei exploring new markets WCT begins work on Aeon’s biggest… AC Nielsen Shoppers to spend… Couple grow 1901 into franchise…

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Page 1: Investments Economic Overvie · 2015-02-17 · covering Kedah, Perlis, Seberang Prai and northern Perak, which had huge potential for commercial agriculture, agro-based and high technology

JS Values Research & Consultancy Sdn Bhd 1 of 22 pages

Economic Overview

Key statistics Latest release Previous rate

Quarterly GDP growth 5.9% (2Q2006) 5.5% (1Q2006)*

Annual GDP growth 5.3% (2005) 7.1% (2004)

Consumer Price Index (CPI) 3.3% (Aug-06) 4.1% (July-06)

Industrial Production Index (IPI) 138.4 (Aug-06) 137.5 (Jul-06)

Base Lending Rate (BLR) 6.72% (Sep-06) 6.72% (Aug-06)

Exchange rate: RM to US dollar RM3.685 (29/09) RM3.677 (30/08)

Source: Department of Statistics Malaysia & Bank Negara Malaysia

Manufacturing sector is expected to grow by 7.3% this year, animprovement from 5.1%. Production in the export orientated industries isforecast to contribute 63.6% of total output. The robust performance of themanufacturing sector is based on higher output growth of 8.7% posted inthe first half of 2006 and further growth is anticipated for the second half.

Deputy Second Finance Minister Datuk Dr Awang Adek Hussin hasindicated that the government is confident of achieving the projected 5.8%gross domestic product this year despite global uncertainties.

Malaysia’s industrial output in July rose 7.3% year on year. The expansionwas in line with the rise in indices of the manufacturing sector (8.8%) andthe electricity sector (4.5%). The mining sector has declined by 2.5% to112.7 from 115.6.

IMF expects the Asian economies to grow at 8%, with contribution frombuoyant expansions in China and India. IMF also forecasts Malaysia’s realGDP to grow by 5.8% next year, up from this year’s 5.5%.

Manufacturing sales in July expanded by 17.3% or RM6.8 billion, to a 12month high of RM46 billion from RM39.2 billion in the corresponding monthlast year and was higher by 7.9% or RM3.4 billion from RM42.7 billion inthe preceding month.

The Consumer Price Index (CPI) for August rose by 3.3% year on year,mainly due to higher fuel and food prices. The increase was slowest pacein six months. When compared with previous month, it decreased by 0.1%.The decrease was attributed to five main groups including clothing andfootware, food and non-alcoholic beverages and communications.

More highlights next page…

Retail’s section

BP to invest further in petrochemical…DiGi believes “open office” will help…Cameron to set up plant in PTP Free…Alliance Bank to open more…Biotech to get RM6 millionInvestment in E&E industry set to hit…Toyota invests RM174mil in auto…CustomWare: Malaysia office will…Pulau Indah to be FTZBrady's expansion a boost to…Commerce Venture sets up…KFH to step up operations in MalaysiaMalayawata plans new plantMolex to expand ops at Prai plantW.R. Grace considering expansion…Plexus Manufacturing to open third…DiGi opens Penang regional officeRM1.5 billion i-City project gets…EON to sell Volkswagen marquesMaybank opens first Johor Islamic…Smart Modular to invest more in…

Investments

McDonald’s food on the spotDijaya signs hypermarket lease dealGC Gruppe opens store in MalaysiaRetall opens first tea house in…Bridal studios flock to Jalan IpohWine retailer ventures across the…Expansion repositions Sunway…'Little India' in the makingCarrefour to have 14 outlets by…LV's new store with the 'wow' effectTexchem to open first fine-dining…Volkswagen names 3 Klang Valley…Parkson's expansion to East MalaysiaHypermarket supportJusco first mall to accept Visa Wave…Hangout for teenagers and…Starbucks at Pantai Medical CentrePlans to inject Subang, Mahkota…Hytex China plant to start opsTomei exploring new marketsWCT begins work on Aeon’s biggest…AC Nielsen Shoppers to spend…Couple grow 1901 into franchise…

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Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz said BNM hasstopped raising borrowing costs and expects inflation to fall below 3 percent, joining other central bankers in signaling an end to interest rate rises.She also indicated that the outlook for the domestic economy is for steadygrowth to continue. Malaysia’s interest rates are still below the neutral leveland still supportive of the economy. The direction of the monetary policywill only change if there is a change in the outlook.

Khazanah Nasional Bhd’s wholly owned subsidiary Malaysian Agro FoodCorp Bhd (MAFC) chief executive officer Azizi Meor Ngah said Malaysiawas seriously moving into a modern, commercial and competitiveagriculture sector. He said the establishment of an RM200mil agriculturefund financed jointly by Khazanah, the government and the private sectoraugured well for the development of the Northern Economic Corridorcovering Kedah, Perlis, Seberang Prai and northern Perak, which hadhuge potential for commercial agriculture, agro-based and high technologyindustries.

Total investments in the country’s electrical & electronics (E&E) industryduring the 14-year period of the Third Industrial Master Plan (IMP3) isexpected to hit RM82.4 billion by 2020. Under the IMP3 (2006–2020),International Trade and Industry Minister Datuk Seri Rafidah Aziz said thesemiconductor industry will be strengthened further through the realisationof a fully-developed semiconductor cluster, which covers the north-westerncorridor including Perak, Penang, Kulim Hi-Tech Park and theneighbouring industrial areas in Kedah.

INVESTMENTS

BP to invest further in petrochemical sector Top

Petroleum and chemicals giant BP wants to invest further to expand its business in Malaysia, particularly in thepetrochemical sector. BP has so far invested over RM7bil in Malaysia. It has four petrochemical plants – three in Kertih(Terengganu) and one in Kuantan (Pahang) – in joint venture with Petroleum National Bhd. BP also controls over 30% ofthe local lubricants market. Its plant in Port Klang produces the Castrol, BP and Duckhams brands of lubricants.

(The Star-1st September 2006)

Know your neighbourhood

Boom time for Bum Bum with new bridgeNews of LRT service thrills USJ…Dead trees yet to be clearedTragedy waiting to happen at foothillUSJ 17 folks opt to pay for securityBU folk welcome new bus routesFlood fears continueIndustrial area needs urgent attentionCondo residents want their access…MPSJ to give views on LRTResidents fear their houses might …Victims yet againMBSA must do more for Section U19…Three-party night patrols in SS14/7Flood mitigation plans facing difficultiesNetwork bus service postponedEnsuring service in Cheras on right trackIpoh to extend runwayNew bus terminalRapid starts new service covering PJ…Traffic snarls still a problemField will not be removed, but upgradedProject in forest reserve irks residents“We have been victimised”

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DiGi believes “open office” will help boost efficiency Top

DiGi.Com Bhd hopes to see improved efficiency once it completes the upgrading of its regional offices with the “openoffice” concept. The mobile services operator recently launched its RM80 million “open concept” headquarters and plansto invest RM5 million to upgrade regional office, including renovation to be interior, changing its furniture as well as itsinformation technology system. DiGi currently has regional and sub-offices in Penang, Johor Bharu, Kuching, KotaKinabalu and Melacca. The new headquarters, dubbed D’House occupies a built-up area of 325,000 sq ft and bringstogether its employees from previously six locations in Shah Alam.

(New Straits Times-1st September 2006)

Cameron to set up plant in PTP Free Zone Top

Cameron International Malaysia Systems Sdn Bhd has signed a land lease agreement with Port of Tanjung Pelepas(PTP) to set up a RM150 million manufacturing plant. Operating from the PTP Free Zone, the plant will manufactureCameron’s subsea systems used in producing oil and gas wells terminated on the seabed. “The setting up of Cameron’smanufacturing plant in the PTP free Zone is timely with PTP’s role as one of the main drivers in turning south-west Johorinto a logistics hub under the Ninth Malaysia Plan,” PTP’s chief executive officer Harum Johari said. A fast-tract project,construction on an 8.1 ha facility in the PTP Free Zone’s Distripark B has already started and it is expected to beoperational by July 2007.

(New Straits Times-4 th September 2006)

Alliance Bank to open more branches in 18 months Top

Alliance Bank Malaysia Bhd targets to open up to seven branches within the next 18 months o further strengthen itsconsumer banking and small and medium enterprise (SME) business, said its chief executive officer Bridget Lai. The banknow has 77 branches nationwide. Lai said that at least 70% of the bank’s branches are strategically located within thereach of a large consumer and SME presence. Speaking to the reporter in Kuala Lumpur yesterday after Alliance Bank’sparent, Malaysian Plantations Bhd’s AGM, Lai said that one of the new branches would be located in Muar, Johor.

(New Straits Times-8 th September 2006)

Biotech to get RM6 million Top

The Johor government will spend RM6 million to develop biotechnology and make the state the southern gateway for thebiotechnology industry. State Agriculture, Heritage, and Rural Development committee chairman Ahmad Zahri Jamil saidRM2.5mil had been allocated for this year while another RM3.5mil would be used next year by the Johor Biotechnologyand Biodiversity Corporation (J-Biotech).

(The Star-13rd September 2006)

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Investment in E&E industry set to hit RM82.4 billion by 2020 Top

Infineon Technologies (Kulim) Sdn Bhd opened a new Infineon facility at Kulim Technology Park, which at full capacity,the new facility is expected to employ 1,700 people. The maximum capacity will be about 100,000 wafer stats per month,using water disc with a diameter of 200 mm. “Our new fabrication in Kulim is a strategic investment into our future and anopportunity to address the world’s growing demand for more efficient power controls in industrial, computing andhousehold appliances by enabling variable speed-controlled electric motors with higher performance,” said Dr WolfgangZiebart, the company’s president and chief executive officer.

(New Straits Times-13rd September 2006)

Toyota invests RM174mil in auto parts plants Top

Toyota Auto Body Co Ltd Japan (TABJ) has invested RM174 million to set up two auto parts factories in Malaysia via unitToyota Auto Body (M) Sdn Bhd (TABM). Production has started at the first plant in Section 23, Shah Alam. The resin partsmoulding factory makes bumpers, instrumental panels and door trims for Toyota Avanza. The plant would help the groupreduce logistics cost and increase production efficiency, TABJ managing director Toshio Mizushima said at the resin partsplant opening yesterday. The facility has a 3,500-tonne moulding equipment that can produce a variety of auto parts. Theproduction of resin parts was previously undertaken by Sugity Creatives, a subsidiary of TABJ in Indonesia. Meanwhile,the second facility, a 12,000-sq-ft stamping and welding parts factory, is scheduled for launch in October next year. Onwhether TABM planned to manufacture resin parts for other Toyota models, Mizushima said: “There are plans to makeresin parts for other models. However, nothing is firm for the time being.”

(The Star-15th September 2006)

CustomWare: Malaysia office will help spur revenue growth Top

CustomWare Asia Pacific Sdn Bhd (CustomWare Malaysia), an information technology consulting firm, will expand itsstaff strength to capture businesses in the region. By next year, the company expects to have over 20 people from thecurrent seven. CustomWare Malaysia, which is among 20 Australian Multimedia Supper Corridor-status companies, is aregional hub for Sydney-based CustomWare. CustomWare invested about RM500,000 in CustomWare Malaysia’s office,which was incorporated in late 2005. It is targeting to market its services to large multinationals. It has clients in variouspart of world including China, India, Indonesia, Thailand, Singapore, West Asia, the US and Europe.

(New Straits Times-16th September 2006)

Pulau Indah to be FTZ Top

Menteri Besar Datuk Seri Dr Mohd Khir Toyo said ongoing efforts to develop Pulau Indah were aimed at luringinvestments and to create an FTZ there. He announced that RM4 billion would be invested to gradually develop PulauIndah over a period of 20 years, with public amenities such as shopping malls, a hospital, a hotel and government officesto be built. Dr Khir said the island also had vast tourism potential. The MB said this plan would give islanders anopportunity to improve their living standards. The proposed South Klang Valley Expressway, scheduled to be completedby 2010, would help enhance Pulau Indah’s status as an industrial site as it would give the island access to both air andsea freight, he said. He said the highway would connect Putrajaya and Kuala Langat, and a link road would also beconstructed to connect Pulau Indah to the highway

(The Star-18th September 2006)

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Brady's expansion a boost to Penang's investor-savvy image Top

New York Stock Exchange-listed, Brady Corp opened its state-of-the art RM30 million new plant at the Bayan LepasIndustrial Zone. The 50,000 sq ft facility would be used by its unit, Brady Technology Sdn Bhd, for its manufacturingoperations. The plant was officially opened by Penang Chief Minister Tan Sri Dr Koh Tsu Koon and witnessed by BradyVice President for Asia Pacific, Allan Klotsche. Koh said the company’s expansion programme clearly illustrate theconfident shown by investors in Penang. “It also shows that we have the necessary climate, infrastructure and workforceto attract a new world-class corporation. He cited the cases of several other companies, including Intel and Dell, whichhave continued expand their operations in Penang. Brady was found in the US in 1914 and it first opened a sales office inPenang in 1996. It established its first manufacturing facility in Penang in 2002.

(New Straits Times-20th September 2006)

Commerce Venture sets up RM170 million magnesium plant Top

Commerce Venture Manufacturing Sdn Bhd (CVM), which will build a magnesium smelting plant valued at RM170 millionin Taiping, Perak, plans to expand into alloy production within six months of the plant beginning operations in May 2008.CVM is a subsidiary of Ho Wah Genting. CVM signed a RM142 million loan facility agreement with Bank Pembangunan tofacilitate its maiden project to build the magnesium smelting plant. The plant would have an initial production capacity of15,000 tones per annum, Chong said. “CVM feels that it is the right time to tap into the readily available supply of dolomite(a major component of magnesium) in Perak,” he added. The plant will be located in the Kamunting Raya III IndustrialEstate. Its 65-acre site is suitable for the production of magnesium as the dolomite quarry site is located 60 km away. Theplant will be completely commissioned by engineering, procurement and construction contractors from China.

(The Star-21st September 2006)

KFH to step up operations in Malaysia Top

Kuwait Finance House (Malaysia) Bhd (KFH) is stepping up operations with the planned opening of five branches in thenext three to five years, said its managing director K Salman Younis. He said KFH would be rolling out retail bankingbusiness, which includes the issuing of syariah-compliant credit cards, pursuant to the progressive opening of thebranches. “We are working on rolling out our retail franchise from early 2007. It will take 12 to 18 months because itinvolves opening several branches and investment in technology and people development.

(The Sun-21st September 2006)

Malayawata plans new plant Top

Malayawata Steel Bhd is looking to set up a RM200mil hot metal iron plant in Prai, Penang, as part of the group'sdiversification into producing high-grade engineering steel products. President Datuk Lim Hong Thye said the groupexpected to complete a viability study on the new plant by February. “Construction of the plant, which is believed to be thefirst of its kind in South-East Asia, will only start in 2008,” he told reporters after Malayawata's AGM yesterday. He saidwhile the world demand for steel would remain strong over the next two years, Malayawata was also looking forward tothe speedy implementation of the construction projects announced under the Ninth Malaysia Plan.

(The Star-22nd September 2006)

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Molex to expand ops at Prai plant Top

Molex (M) Sdn Bhd will invest RM71 million in its new manufacturing wing in Prai as part of its commitment to expand itsoperations, vice-president for South Asia Ang Lye Hin said. He said the company recently spent RM11mil to build thefacility and planned to pump in RM60mil later to fully equip the wing over three years. “To date, a total of RM146mil hasbeen invested in Molex Malaysia's 19-year-old plant in Prai. “The new manufacturing wing will position us to expand ourcurrent product line capability, which includes plating, product tooling design and research and development (R&D)capabilities,” he said at the wing's opening ceremony here on Thursday. Ang said the Prai plant had expanded from11,000 sq ft in 1987 to 226,000 sq ft currently. The facility designs, manufactures and imports electronic connectors fromits sister companies worldwide. It is also a one-stop inter-connection solution centre for its customers in Malaysia. “Wesee our role as part of the supply chain industry providing components to contract manufacturers as well as multinationalcompanies based in Penang,” he said, adding that the company presently had 300 local vendors. “Molex is so committedthat in its global re-organisation, it has given more important functions to its Penang plant to become an integratedmanufacturing hub.'' Molex Asia Pacific South president Bob Mahoney said the company hoped to receive continuedsupport from the state government, especially via the supply of trained and experienced workforce.

(The Star-23rd September 2006)

W.R. Grace considering expansion in Pahang Top

W.R. Grace and Co, a global company specialising in chemicals and materials, is mulling over several expansion plans inPahang. President and chief executive officer Fred Festa said the company was presently carrying out trial production of anew grade of silica for beverages industries. “If the trial runs well, we will look into making Kuantan our manufacturingcentre for the Asia Pacific region. “Several other expansion plans are also being considered as our silica plant in Kuantanhas already achieved its maximum production capacity,” he said after paying a courtesy call to Deputy Menteri BesarDatuk Tan Aminuddin Ishak recently. Festa was in Malaysia for the 10th anniversary of the group's manufacturing facilityin Gebeng, Kuantan, operated by subsidiary W.R. Grace Specialty Chemicals (M) Sdn Bhd. “From an initial capitalinvestment of RM77mil in 1996, total investment now stands at RM177.1mil. “The plant produces more than 40 grades ofamorphous silica that are used in a number of industrial applications such as paints, plastics, paper and consumergoods,” he said. Festa said the Gebeng facility was the firm's fourth silica plant in the world after the ones located in theUS, Germany and Brazil. “Our facilities in Malaysia play a vital role in our business strategy in Asia Pacific, which will be acornerstone of our future growth,” he said.

(The Star-23rd September 2006)

Plexus Manufacturing to open third plant in Penang Top

Plexus Corp, a US-based electronics contract manufacturer, plans to expand its operations in Malaysia by opening a thirdplant in Penang, company officials said. Plexus, headquartered in Neenah, Wisconsin currently has two manufacturingplants in Penang via Plexus Manufacturing Sdn Bhd, which is located at the Bayan Lepas Free Industrial Zone. Otherthan Penang, Plexus also has operations in China. The expansion here will bring Plexus’ manufacturing capacity to630,000 sq ft, making Penang its largest base in Asia. The Nasdaq-listed Plexus, which has yearly revenue of US$1.2billion (RM4.40 billion), is expected to invest as much as US$38 million (RM 139.46 million) to beef up operations inPenang. Operation at the new facility is due to start by as early as the middle of next year. The last time Plexus expandedits operations in Penang was in 2004. Plexus’ investment plans should be soothing to Penang, the country’s technology-driven manufacturing hub. The state recently received a blow when Intel Corp, the world’s biggest chipmaker, announceda global scale layoff.

(New Straits Times-25th September 2006)

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DiGi opens Penang regional office Top

DiGi Telecommunications Sdn Bhd recently opened its new RM1.5 million Penang regional office in Gelugor. DiGi Chiefexecutive Morten Lundal said Penang was an important growth area for the company. “We expect even stronger potentialgiven the state’s strategic position in the Northern Economic Corridor.” The corridor, covering Kedah, Perlis, SeberangPerai and Northern Perak, is among three growth corridors identified by the Government.

(The Sun-27th September 2006)

RM1.5 billion i-City project gets government support Top

I-City Selangor, a 29.1ha development on high ground near the Sungai Razau toll plaza in Klang. Public-listed company i-Berhad has promised, however, to soften the hardwired integrated urban township with lush greens and a lake. The firstphase of the RM1.5bil project, with the initial cluster of retail outlets, is due to be completed by the end of next year. TheSelangor Government views this “miniature Cyberjaya” project as an important milestone and has set up a steeringcommittee to ensure i-City receives all the support it needs. State Information Technology Committee chairman DatukCh’ng Toh Eng, who heads the steering committee, said: “Selangor is taking the MSC (multimedia super corridor) conceptto the next level. “Instead of merely focusing on the business community, Selangor’s goal is to create a digital communitythat encompasses the home, the office and public amenities.”

(The Star-27th September 2006)

EON to sell Volkswagen marques Top

Edaran Otomobil National Bhd (EON), through its wholly-owned subsidiary Euromobil Sdn Bhd, has secured the rights tomarket and sell all products of German Volkswagen (VW) marques in Shah Alam, Selangor. Euromobil will now offer theVW range of Polo, Cross Polo, new Golf, Golf GTI, new Beetle, Jetta, Passat, Touareg and Touran models as well asafter sales support at its 3S facility in Glenmarie Shah Alam.

(New Straits Times-29th September 2006)

Maybank opens first Johor Islamic Banking Branch Top

Malayan Banking Bhd (Maybank) has opened its first full-fledge Islamic banking branch in Johor. In a statement, the banksaid the Larkin Perdana branch was its 11th Islamic banking branch nationwide. “It also complements our network of over400 branches natiowide, including 34 in Johor, which offers both conventional and Islamic banking services.

(New Straits Times-29th September 2006)

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Smart Modular to invest more in Penang ops Top

Smart Modular Technologies, a US-based electronic subsystems designer, manufacturer and supplier, is expected toinvest RM100mil in its operations in Penang over the next five years. It’s Chief Executive Officer and President IanMacKenzie said in terms of its manpower in the state, the company had grown from fewer than 50 employees in 1998 tomore than 600 today. “The floor space of our plant in Seberang Jaya had more than tripled over the last few years andcurrently totals 60,000 sq ft. “Since setting up operations here, we have invested more than RM380mil in the state. Thecoming years will see us investing another RM100mil in infrastructure, labour force and training programmes to continuegrowing our business.

(The Star-29th September 2006)

RETAIL’S SECTION

Mcdonald's food on the spot Top

McDonald’s plans to celebrate its 25 years in Malaysia with a year long celebrations. The anniversary day is set for April29, 2007. With 173 outlets throughout Malaysia, it plans to open eight to ten new stores annually. Even while serving fourmillion customers a month, it appears to have a lot more planned in the next few years. Azmir Jaafar, the generalmanager of Golden Arches Restaurants Sdn Bhd, the licensee of McDonald's restaurant in Malaysia, says McDonald'shopes to raise the bar on how to serve customers better. The new concept – Made For You – is already working out in theAlamanda Putrajaya shopping mall outlet, he adds. McDonald's Malaysia is investing a lot into redesigning the oldkitchens with new equipment from the US following specific standard of McDonald's Corp requirements, according toAmir. Stores presently ready with Made For You specifications are in Kota Damansara in Petaling Jaya, TamanConnought in Kuala Lumpur as well as new stores in development in Dataran Pahlawan Mall in Malacca and TamanSutera in Johor. Amir says McDonald's Malaysia has allocated RM35mil for new stores and refurbishments. The recentlyupgraded stores will be equipped with lounge chairs, wooden panelling and chic deco.

(The Star-2nd September 2006)

Dijaya signs hypermarket lease deal Top

Dijaya Land Sdn Bhd, subsidiary of Dijaya Corp Bhd, has signed a lease agreement with Magnificent Diagraph Sdn Bhdfor 125,000 sq ft of hypermarket space in Tropicana Mall. Magnificent Diagraph is the operator of French hypermarketCarrefour, which will be the mall's main anchor tenant. “The mall is targeted for completion by mid-2008,” Dijaya groupmanaging director P.K. Poh said at the signing ceremony yesterday. Tropicana Mall is located within Dijaya's latestRM600mil mixed commercial development, which is near the Sprint Expressway and Lebuhraya Damansara Puchong,Tropicana City, as the development is known, comprises the mall, 601 designer suites known as The Tropics and a 12-storey Signature Office Tower with 105,000 sq ft of lettable space. “The suites and offices, meanwhile, are scheduled forcompletion by 2009,” Poh said, adding that the offices would be sold by blocks. He said the mall, with a net lettable areaof 390,000 sq ft, would consist of four levels, namely, festival market place, fashion and events, family, fun andentertainment. There will also be more than 180 retail outlets comprising cafes, diners, themed restaurants and boutiques,among others. He said Dijaya now had about 700 acres of undeveloped land bank, of which 500 were in Perak and 200 inSelangor.

(The Star-6th September 2006)

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GC Gruppe opens store in Malaysia Top

GC Gruppe of Germany, one of the world’s biggest designer bathroom products wholesalers has opened a store inMalaysia, the first in Asia. Malaysia is chosen due to it being an emerging market, its young population and the rapiddevelopment of its property sector, said GC Gruppe managing director Andrew Wegemeyer. In Malaysia, its local partneris Andrew Sia and his son Adrian who collectively hold a 20 per cent stake in the joint venture GC Building Technologies(M) Sdn Bhd. The remaining stake is held by GC Gruppe. Sia said there are plans to open more stores in Malaysia in thenext two to three years. “We are planning four more, and depending on the location and size, each store would most likelyrequire an investment of RM5 million each”, he said.

(New Straits Times-1st September 2006)

Retall opens first tea house in Malaysia Top

Retall Holdings Sdn Bhd has opened its first tea house outlet in Malaysia, based on the concept of a popular tea brand inChina. Deputy general manager Lionel Choo said among the tea products available at the tea house would be thoseproduced by China Tuhsu Yunnan Tea Import and Export Corp. Located at the Mines Resort City in Seri Kembangan, thetea house was launched by Deputy Finance Minister Datuk Dr Ng Yen Yen on Monday. Retall, which will be managing thetea house, also has distribution rights for the products in South-East Asia. Retall, Hai-O Enterprise Bhd and MinesExhibition Management Sdn Bhd will jointly organise the Coffee and Tea Asia 2006 Exhibition. It will be held from Sept 17to 23 at the Malaysia International Exhibition and Convention Centre.

(The Star-6th September 2006)

Bridal studios flock to Jalan Ipoh Top

A growing attraction at one end of meandering Jalan Ipoh in Kuala Lumpur must be the shops specialising in bridal gownsand all things weeding-related. These shops, several displaying huge billboards and posters of beautiful brides and theirhandsome grooms, can hardly be missed from the 2 ½ to 4th mile stretch in this established part of the city. There’s evenone store touting itself as the country’s first Indian bridal studio. A quick count more than 14 such bridal-themedestablishments. GDS Properties principal Govin Bala says such a concentration of bridal shops is a normal businessstrategy, similar to that practised by banks and financial institutions, to provide customers with a variety of choices – all inone convenient location.

(The Sun-8 th September 2006)

Wine retailer ventures across the causeway Top

Denise The Wine Shop, Malaysia’s largest wine retail concept store, announced its foray into the Singapore marketyesterday with the opening of its first outlet in the island republic and plans for another 19 stores in the near future. Theannouncement was also made in conjunction with the opening of Denise The Wine Shop’s19th Malaysian outlet inTaman Tun Dr Ismail, Kuala Lumpur. The entry into Singapore was made possible through a strategic partnership withSingapore Straits Wine Co Pte Ltd. Starting out as a single wine shop in one of the most rapidly growing satellite cityareas of Kuala Lumpur in mid 2001, the company has over 18 specially outlets nationwide.

(The Sun-8 th September 2006)

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Expansion repositions Sunway Pyramid Top

Sunway Pyramid Sdn Bhd is set to be one of the larger shopping malls in the Klang Valley upon the completion of itsexpansion programme. Sunway City Bhd property investment managing director Ngeow Voon Yean said Sunway Pyramidshopping mall should not be viewed as two separate buildings when the extension was completed. “When completed,there will be no phases I and II like other shopping malls. It will be a whole new Sunway Pyramid. We see ourselves asone shopping centre,” he said in an interview. Sunway Pyramid is 52% owned by Sunway City and 48% by theGovernment of Singapore Investment Corp. The RM550 million new investment includes RM25 million for dedicatedramps connecting to the New Pantai Expressway from both Subang Jaya and Kuala Lumpur. Another RM50 million isallocated to refurbish the existing shopping mall to blend in with the new extension. Scheduled for completion nextSeptember, the extension will add a gross area of 1.5 million sq ft to the existing 2 million sq ft in the mall. “Uponcompletion, the whole shopping mall will have about 1.7 million sq ft of net lettable area,” Ngeow said. The shoppingcomplex will have four distinct zones: Fashion Central, Asian Avenue, Marrakesh and Oasis Boulevard. Apart from theexisting tenant Parkson, new tenants would include Jusco, Harvey Norman, California Fitness and Tony Roma's.According to Ngeow, architecture in the extension will reflect a contemporary retail design with elements that resemble theexisting Egyptian theme and a huge open-air piazza will be incorporated in the development as well. He said part of theexisting covered parking bays would be turned into shoplots, and the monorail station would be relocated to the newSunway Lagoon resort entrance. On increasing competition in the retail scene, Ngeow said: “We have made a name forourselves and we have throngs of tourists visiting the mall. Moreover, we have a high tenancy rate and there is still a longlist of people waiting to come in.”

(The Star-9th September 2006)

'Little India' in the making Top

Penang Island’s famed ‘little Indian’ may soon see its counterpart in Jalan Bangan Luar, Butterworth, following a recentsurge of Indian and Indian Muslim traders setting up ventures there. The growing number of Indian restaurants, minimarkets, health and beauty centres as well as CD and VCD shops will enable this booming enclave to earn the name of“Little Indian of Butterworth”. The shops are sporadically located from Travel Lodge to the Jalan Kampung Gajah trafficlights and along Jalan Jeti Lama and Jalan Telaga Air.

(New Straits Times-9 th September 2006)

Carrefour to have 14 outlets by mid-2008 Top

The world’s second largest retailer, Carrefour, after a two-year lull is now geared to open at least two outlets each yearbetween September 2006 and 2008 in Malaysia. That will bring the number of its hypermarkets to 14. The French retaileris also scouting for locations in Penang Island and Ipoh, Perak, for future openings. Carrefour Malaysia currently has atotal of nine stores. Its last store opening was the Kepong store in early September while its second opening will be inBatu Pahat, Johor by the end of the month. “Together the cost of investment into both outlets is RM 90 million, excludingland,“ managing director Shafie Shamsuddin said. Next year, Carrefour is set to open its first outlet in Melacca located atDataran Pahlawan. “We signed the agreement in early-August and will open in mid-2007,’ he said. The outlet, to belocated within a shopping complex is on a 15-year-plus-15-year lease. Also on the cards are two new stores in Klang andSeremban. “Hopefully we are able to open these stores by end of 2007 or early 2008,” he said. Meanwhile, itshypermarket in Tropicana city, which is expected to sport a slightly different look to match the overall modernity andlifestyle image of the mall, will open in mid 2008. Beyond that, if all goes well, Carrefour may have an opening in ShahAlam in 2009.

(New Straits Times-11st September 2006)

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LV's new store with the 'wow' effect Top

Louis Vuitton has scored several firsts with the opening of its street front store in Kuala Lumpur on Thursday. Housed inStarhill Gallery facing Jalan Bukit Bintang, the new store boasts a beautiful facade with details inspired by Islamicarchitecture, a first for LV. The task of conceptualisation fell to LV's architectural department in Paris whose membersanalysed mosques before coming up with a design. A smaller LV store had been located within Starhill but it was just amatter of months popular demand dictated that a larger store was needed. From 450 sq m, the new store has expandedto 540 sq m, with the added challenge of split-level shopping space. The wider expanse of space allows for the inclusionof a VIP room, the first for an LV store in KL. Referred to as the Very Important Customer room by LVMH Malaysiageneral manager Kathy Lam during the media preview, the space was no less than an inner sanctum for VIPs to shopdiscreetly. YTL Corp managing director Tan Sri Francis Yeoh, who was seated beside Lam, said LV had won an intensebattle for its street front location – the spot had been eyed by other luxury brands like Cartier. The lot was previouslyoccupied by a coffeehouse.

(The Star-11st September 2006)

Texchem to open first fine-dining Japanese eatery in Penang next year Top

More than one decade after Japanese fast-food to Malaysians via Sushi King outlets, the Texchem Group of Companiesis now set to go upscale with the opening of its first fine-dining Japanese eatery in Penang early next year. A RM1.5million investment has been earmarked for the opening of the 4,500 sq m flagship “Miraku” restaurant in Penang. To belocated at the soon-to-be-opened “G Hotel” at the sea-fronting Gurney Drive, the restaurant promises to meet thedemands of discerning Japanese diners in Malaysia, Sushi King Sdn Bhd managing director Yasuhiro Nishida said inPenang yesterday. The RM1.1 million restaurant which serves as Sushi King first stand-alone restaurant, boosts a floorarea of 3,354 sq ft, four private rooms and can accommodate 123 people. Sushi King is now touted as the largestJapanese “Kaiten” restaurant chain in the country with outlets located in the Klang Valley, Penang, Ipoh, GentingHighlands, Seremban, Melacca and Johor. Texchem Resources chairman and chief executive officer Datuk Seri FumihikoKonishi said a total of 50 Sushi King are targeted to be operating in the country by 2008. These include two new openingin December at “Centro Klang” in Klang and Penang’s “Queensbay Mall” on the island.

(New Straits Times-12nd September 2006)

Volkswagen names 3 Klang Valley dealers Top

German carmaker Volkswagen (VW) has appointed three local dealers in the Klang Valley which will open total of five VWshowrooms between next month and January 2007. The three local dealers are Wearnes Automotive, More Cars SdnBhd and VW Cars Sdn Bhd, More Cars Sdn Bhd will open 3S (sales, services and spare parts) showroom along JalanDamansara in Sg. Pencala, Kuala Lumpur, in November, and another 1S (sales) showroom in Jalan Sultan Ismail, KualaLumpur, in January 2007. VW Cars Sdn Bhd will open a 3S dealership off the Federal Highway in Petaling Jaya, Selangorin January 2007 and a 1S dealership at the UOA Centre in Kuala Lumpur next month. Wearnes Automotive will beopening VW’s 3S showroom in Jalan Sg Besi, Kuala Lumpur, in November.

(New Straits Times-12nd September 2006)

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Parkson's expansion to East Malaysia Top

Parkson Corp Sdn Bhd is investing between RM18 million and RM20 million in its sixth outlet in East Malaysia. This willbe retailer’s second outlet in Kuching. The rest in East Malaysia are in Miri, Sibu, Labuan and Kota Kinabalu. The retaileris still on the lookout for new sites in East Malaysia. Parkson’s chief operating officer Toh Peng Koon says it has signed a15-year anchor tenancy at lifestyle shopping centre, The Spring. “We will open in December 2007 and this outlet with102,800 sq ft of retail space will be 15% larger than out first Kuching outlet in Riverside Shopping Complex of 65,000 sq ft.we will occupy three storeys and we will bring in new and international brands,” says Toh. The Spring is a RM150 million 2½-storey shopping centre built on a 12-acre leasehold tract three km from the city centre. The shopping centre sits oneight acres and has a gross built-up of 700,000 sq ft. when completed next September. The Spring will have 147 retaillots, 1,500 parking bays, an eight-screen cineplex, supermarket and a Harajuku precinct occupying 400,000 sq ft of netlettable area.

(The Sun-14th September 2006)

Hypermarket support Top

Carrefour will open its door in Taman Flora Utama, Batu Pahat, Johor. Carrefour’s opening in Batu Pahat marks its 10th

Malaysian outlet and the event mirrors an aggressive expansion drive by the hypermarket chain that greeted Malaysian inSubang Jaya back in 1994. By end 2008, Malaysians can expect another four more outlets – two next years and two in2008, Carrefour (Singapore and Malaysia) managing director Shafie Shamsuddin tells Propertyplus. The four outlets willbe in Dataran Pahlawan, Melaka (opening in mid-2007); Klang (late 2007); Seremban (early 2008) and Tropicana City,Petaling Jaya (mid-2008), Shafie says, adding that they are also looking at areas such as Shah Alam, Penang and Ipoh.Carrefour’s current outlets are in Subang Jaya, Mid Valley Megamall, Kepong, Wangsa Maju, Sri Petaling, Jalan Peel inKuala Lumpur, Alamanda Putrajaya, Johor Bharu and Prai. Carrefour would be Batu Pahat’s first hypermarket.

(The Sun-15th September 2006)

Jusco first mall to accept Visa Wave card Top

AEON Co (M) Bhd has teamed up with Visa International and Malayan Banking Bhd (Maybank) to become the firstdepartmental store operator to accept the Visa Wave contactless payment card. Under the collaboration, Maybank willinstall 150 Visa Wave readers to accept payments for purchases below RM110 at 14 Jusco stores and two Jusco J-Onesupermarkets nationwide, beginning with Jusco 1 Utama and Jusco Taman Maluri. AEON managing director NagahisaOyama said all the remaining outlets would be accepting payment by Visa Wave cards soon. Malaysia was the firstcountry in the world to implement the Visa Wave contactless payment technology last year, which allowed consumers aconvenient way to make payments within seconds.

(The Star-15th September 2006)

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Hangout for teenagers and trendsetters Top

The magnetic field of Sungei Wang Plaza's T-Hop has just enlarged after an RM2mil expansion. A total of 46 fun andfunky shops and six mini anchor lots have just been added to the existing 64 outlets, replacing the 2,787 sq m (30,000 sqft) bowling centre. Occupying the sixth floor of the shopping centre, T-Hop has been a hangout for teenagers andtrendsetters since its opening two years ago. Each and every corner of the 5,574 sq m (60,000 sq ft) zone that wasconverted from a car park oozes youthfulness. T-Hop is probably the only place in Kuala Lumpur where one will seeteenagers dressed to look like Japanese animation characters - an activity called Cosplay that has long been a culture inJapan.

(The Star-18th September 2006)

Starbucks at Pantai Medical Centre Top

Starbucks Coffee has opened its 70th outlet at Pantai Medical Centre in Bangsar, Kuala Lumpur. It offers a full range ofbeverages as well as a wide variety of food item, including sandwishes, pastries and desserts. Berjaya Starbucks CoffeeCompany Sdn Bhd executive director Eric Khoo said: ”With the opening of this store we hope to be able to provide anavenue for visitors and patients alike to enjoy their favourite Starbucks beverages in a soothing and relaxingenvironments.” Starbucks has nearly 12,000 retail locations in North American, Latin American, Europe, the Middle Eastand the Pacific Rim.

(New Straits Times-20th September 2006)

Plans to inject Subang, Mahkota malls into REIT Top

Shopping malls Subang Parade and Mahkota Parade will be injected into a real estate investment trust (REIT) before theend of the year. Hektar group, which owns the two malls, aim to have the REIT listed on the main board of Bursa Malaysiaand it will be worth about RM300 million. Subang Parade and Mahkota Parade, which have retail space more than489,000 sq ft and 500,000 sq ft respectively, are popular malls that enjoy high tenancy. Occupancy currently stands at98.5% and 95% respectively, said Chris Mears, the Hektar group’s executive vice president (asset management). Thegroup’s next retail project will be the Hilltop Shopping Centre in Nusajaya, Johor, which will be managed by Hektar Klasik.According to press reports last year, Hilltop, which a net lettable area of one million sq ft should be opened by last quarterof 2007.

(New Straits Times-22nd September 2006)

Hytex China plant to start ops Top

Hytex Integrated Bhd’s plants in Malaysia and Cambodia monthly produce 600,000 garments each. It will have acombined monthly production of 1.7 million garments when the new plant is ready. Hytex subsidiary Hytex Apparel SdnBhd director Saw Kim Hock said the group was planning to expand locally by opening more World of Cartoons and Worldof Babies outlets. “We plan to add five more World of Babies outlets to our existing 12 outlets. As for World of Cartoons,we plan to add two more outlets to our current 20 outlets. We hope to open the new outlets during the current financialyear ending March 31, 2007,” he said. Saw added that Nike appointed the group to set up a Centre of Excellence twomonths ago to shorten the lead time in retail.

(The Star-28th September 2006)

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Tomei exploring new markets Top

Jewellery retailer and exporter Tomei Consolidated Bhd is on a drive to penetrate new market segments and isaggressively expanding its physical presence in Malaysia. It also plans to venture into retailing jewellery abroad, and islooking at opportunities around the region, particularly in Indonesia and Vietnam. Tomei Gold and Jewellery Holdings (M)Sdn Bhd executive director Ng Sheau Chyn said the group currently had 39 retail outlets in Malaysia and was due to opentwo more soon, one each in Malacca and Batu Pahat, Johor. “We will be adding five or six more outlets by year-end, andone of these will be in Vietnam,” she told reporters after the announcement of a strategic partnership between Tomei Goldand IBM business partner, SL Information System. Tomei Gold is a subsidiary of Tomei Consolidated.

(The Star-28th September 2006)

WCT begins work on Aeon's biggest complex here Top

The largest Aeon shopping centre outside of Japan started taking shape yesterday with the ground-breaking ceremony ofthe RM350 million Aeon Bukit Tinggi in Klang. Developed by WCT Land Bhd, the six-storey centre is expected to be readyby the end of next year, complete with a 5,000-bay car park. “The complex is expected to be the premier shoppingdestination in Klang and its surrounding areas,” WCT Land executive director Lai Yeng Fock said. The complex will bemanaged by Aeon Co (M) Bhd, owner of Jusco retail chain. WCT has signed a 25-year lease with Aeon to operate theshopping centre, which will have a gross area of one million sq ft.

(New Straits Times-28th September 2006)

AC Nielsen Shoppers to spend more in H2 Top

Shoppers’ spending and consumer sentiment are expected to be positive in the second half of 2006, but not without somechallenges, a survey by AC Nielsen shows. For the second half of 2006, significant growth is expected to be seen in non-food categories which include personal care, household and health remedies, driven by new product innovations,competitive launches and offerings for consumers’ convenience. “Improvement in consumer sentiment during the period,weaker inflationary pressure and the festive season towards the end of the year would help boost consumer spending,” hesaid.

(New Straits Times-30th September 2006)

Couple grow 1901 into franchise chain Top

Nineteen O One Sdn Bhd (1901) has 60 outlets in Malaysia, and 5 outlets in Singapore. It also plans to expand thenumber of outlets in Malaysia to 100 by end-2007. We are looking to expand our presence in east Malaysia, especially inSarawak where we do not have any outlet yet,” Tengku Rozidar Tengku Zainol Abidin said.

(The Star-30th September 2006)

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KNOW YOUR NEIGHBOURHOOD

Boom time for Bum Bum with new bridge Top

After decades of living simple life, villagers on Pulau Bum Bum are looking forward to an economic boom with the buildingof a RM100 million bridge connecting the island and the mainland. The bridge, one of 880 projects that will beimplemented under the ninth Malaysia Plan, is set to change the way of life on the island and villagers are eager toembrace the benefits that come with development. Pulau Bum Bum is 10 minutes away from by speedboat fromSemporna town on the southeast of Sabah. It is a large and flat island which houses some 30,000 people in 70 villages.

(New Straits Times-1st September 2006)

News of LRT service thrills USJ residents Top

Missing a bus when u live in USJ area in Subang Jaya means only one thing – a long wait. For USJ residents, theproposal to extend the Kelana Jaya Light Rail Transit line to Subang Jaya is welcome news. With the line will come morefrequent feeder and trunk line services, all part of an ambitious RM10 billion plan to get at least half of Klang Valleyresidents to use public transport by 2010. As well planned as these suburbs have been, its residents have been poorlyserved in terms of public transport. While plans are drawn up for the Subang Jaya line, residents will at least get a betterbus service. Rapid KL will extend its service to cover areas in Subang Jaya up to USJ 8 from Sept 18, said corporatecommunication manager Katherine Chew. Their bus will be plying Sunway Lagoon and other major commercial areasevery 15 minutes, and a trunk line will ply the direct route from USJ 8 to KL Sentral every 10 minutes.

(New Straits Times-1st September 2006)

Dead trees yet to be cleared Top

The freak storm that occurred in Damansara last month uprooted trees in the hill area of Lorong Basong, DamansaraHeights, but the local authority has yet to take any action to clean up the mess. The hill area, which is a private property,is now a picture of chaos as dead trees and branches are everywhere. Some of the dead branches have also beenwashed onto Lorong Basong. The narrow Lorong Basong is the only access road to cater to residents of Belair Condo aswell as two rows of terrace houses, and now dead trees block half of the road. “City Hall has the right to charge theowners if the trees are not cleared within two weeks but it has been more than a month and nothing has been done,” DrColin Abraham, a resident of Belair Condominium in Lorong Basong said. The residents are also concerned over twohuge rubbish containers that have been placed at the side of the access road for almost a year. A City Hall spokespersonconfirmed that the local authority had received complaints on the fallen trees and said the matter was being looked into

(The Star-5th September 2006)

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Tragedy waiting to happen at foothill Top

A few months ago a loud rumble sent a number of diners who were having their dinner in a restaurant in Taman BukitBelimbing, Kajang, scurrying for safety as a landslide hurled two 10-tonne lorries dangerously close in their direction.Since that incident, some of the diners at the 24-hour ABC Maideen restaurant admit that they always sit facing the hillwhen having their meal. Despite the landslide, no safety measures have been taken by the developers. Apart from thelandslide danger, the hill project has become a source of noise and air pollution to residents and business community inthe area. Regulars at the restaurant say that judging from the intensity of the hill clearing, a major landslip is waiting tohappen. There is a path running dangerously close to the hill which is being used by factory workers. Although it isbarricaded, factory workers still use it as a shortcut,’’ said the diner.

(The Star-5th September 2006)

USJ 17 folks opt to pay for security Top

Residents of USJ 17 Zone A have installed their own security measures in the wake of the many crime incidents occurringin the USJ township. Starting Sept 1, these proactive residents who used to carry out their own night patrols under theNeighbourhood Watch programme have paid security guards to patrol their neighbourhood. The round-the-clock securityservice is made possible through the collection of RM40 monthly from each household.

(The Star-5th September 2006)

BU folk welcome new bus routes Top

Residents, business owners and the developer of Bandar Utama are looking forward to the commencement of services onRapid KL's new bus routes in the area on Sept 16, connecting the township to the surrounding areas and Kuala Lumpur.The new routes are 613, 614 and 615. Route 613 will service areas in Sections 6, 7 and 8 in Kota Damansara,Damansara Uptown and Bandar Utama, while route 614 will connect Sections 4 and 5 in Kota Damansara to BandarUtama. Covering various areas in Taman Tun Dr Ismail and Damansara Uptown and linking them to Bandar Utama will beRoute 615. Meanwhile, trunk line Route T82 will connect Bandar Utama (Lebuh Bandar Utama) to KL Sentral, while trunkRoute T86 will link Bandar Utama to Metro Prima. In view of the commencement of the bus service and to encouragemore people to use public transportation, Bandar Utama developer See Hoy Chan is opening a 400-bay parking lot nextto the bus terminal at Lebuh Bandar Utama. The car park has already been completed and will be opened on Sept 16.The company is seeking a special bus lane and it is currently conducting talks with the relevant local and highwayauthorities concerned. The special lane is expected to be opened by the first quarter of next year. Meanwhile, theresidents and the developer are also very happy with the announcement by Deputy Prime Minister Datuk Seri Najib TunRazak on Tuesday 29 of a new light rail transit (LRT) service linking Kota Damansara and Cheras, expanding the presentLRT networks for an efficient and cost-effective public transport system in the Klang Valley. Under the special RM10bilproject, the Kelana Jaya line (formerly Putra LRT) will be extended to Subang Jaya and USJ, while the Sri Petaling line(formerly Star LRT) will cover Puchong. The project is expected to be completed in four years.

(The Star-6th September 2006)

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Flood fears continue Top

Frustrated by 10 years of flood woes, residents around Kampung Cheras Baru do not want another housing project on anearby hill slope to worsen the situation. About 100 representatives from Ketumbar Heights and Ketumbar Hillcondominiums, Cheras Ria and Cheras Utama apartments as well as Kampung Cheras Baru shops and factories cameforward to urge the Ampang Municipal Council and City Hall to disapprove a housing project on Bukit Seputeh ForestReserve, recently submitted to them for approval. Among them were presidents and committee members of residents’associations in these areas. Cheras MP Tan Kok Wai said City Hall had made an allocation of more than RM2 million forflood mitigation projects in the area, believed to be caused by two housing developments on the hill slope. He added thata RM3.7 million flood retention pond was also recently approved. Construction scheduled to take 47 weeks would start assoon as the families living in about 20 squatter houses at the site were moved to public flats. “If this project is approved,all these efforts will be futile,” he stressed.

(The Star-6th September 2006)

Industrial area needs urgent attention Top

Occupants at Sungai Penaga Industrial area in USJ 1 have expressed their worries about worsening road conditions inthe area. Factory owner Datuk Mohd Azri Abdullah claimed that since he opened his premises about 11 years ago, theroad has been in a shoddy condition, and has only become worse over time. Jalan Subang 4 is the main access road tothis area and it has not been maintained properly. The drains are also giving us problems when it rains. The clogged drainhad been causing flash floods in the area during heavy downpours. The industrial area, which was set up in the 1990s,has about 400 small- and medium-scale industries, including freight forwarding, construction, food and beverage andmanufacturing concerns.

(The Star-6th September 2006)

Condo residents want their access road back Top

Residents of Evergreen Park Condominium in Bandar Sungai Long, Cheras, want to know how much longer it would takethe authorities to rebuild the road near their units that was damaged when a landslide hit on May 2. The road is part of themain road leading out of Bandar Sungai Long. It offered easy access for Evergreen Park residents and low-cost flatdwellers nearby but was closed following the landslide. Following a site visit in June, Selangor Infrastructure and PublicUtilities Committee chairman Datuk Fatah Iskandar said the state government would spend RM1.5 million to repair theroad. It was supposed to re-open in August but work has slowed down.

(The Star-8th September 2006)

MPSJ to give views on LRT Top

Subang Jaya Municipal Council (MPSJ) public transport coordinating committee wants to work with the consultantsappointed by Prime Minister’s Department to plan an effective Light Rail Transit (LRT) route to Subang Jaya andPuchong. In welcoming the government’s announcement of a RM10 billion plan to extend the routes of the Klang ValleyLRT system to Puchong, Subang and Cheras, the committee hopes to present its proposals for the improvements to thepublic transport system in the municipality and offer its help to the relevant authorities. MPSJ’s proposals also outlinepossible route.

(The Sun-8 th September 2006)

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Residents fear their houses might collapse Top

Taman New Green Park residents in Rawang fear that their houses would sink and collapse one day, said MalaysiaNanban. The residents believe that the stone blasting works at a nearby quarry is responsible for the cracks on the wallsof their 30-year-old houses. Resident M. Alagewaran, 75, noticed that the floor was sinking after cracks started appearingon the walls. However, officials from a cement factory who visited the houses recently said that the sinking was due to theroots of the big trees in the area. Resident committee chairman Zakir Abdullah, 62, said efforts to find a solution had notbeen successful. Selayang Municipal Council president Zainal Abidin Azim said he has received a memorandum from theresidents.

(The Star-11st September 2006)

Victims yet again Top

While the residents were away, their houses in Taman Zooview were burgled. One resident, Dr Mohd Fitter said he wasvery disappointed with MPAJ for pulling out the security service in the area. He said he was disappointed with MPAJ forstopping the security as Selangor Menteri Besar Datuk Seri Dr Mohamad Khir Toyo and the previous MPAJ presidentDatuk Ahmad Shafie Saidin had assured residents that their welfare and belongings would be taken care of. “Doesn't theMB's directive count for anything anymore,” Dr Fitter asked. Another resident who did not want to be identified said he toohad lost several air-conditioner units in his house. When contacted MPAJ deputy president Abdul Hamid Hussain said thecouncil was not able to resume the security service in Taman Zooview because of lack of manpower and also because itwas costing the council a lot of money.

(The Star-11st September 2006)

MBSA must do more for Section U19 stores catch fire Top

Section UI9 needs some major improvements and re-development as the residential and industrial areas are deterioratingdue to the lack of proper infrastructure and upkeep. Almost half the residential area does not have concrete drains andthis has become a health a hazard due to stagnant water. Vacant lots are used as garbage dumps and hawker stalls havesprung up everywhere. The area is very dark at night as there are too few streetlights. The wet market and nearby foodcourt are dirty as MBSA health officers are nowhere to be seen. Redevelopment of the town centre has not occurred asexpected. The roads in both the residential and industrial zones are in a state of woeful neglect.

(The Star-12nd September 2006)

Three-party night patrols in SS14/7 Top

Residents of SS14/7 Subang Jaya have been carrying out their own night patrols within their vicinity for the past ninemonths. The job is carried out between 11.30pm and 1.30am by some four to six men at any one time, and rotated amongthe 30-plus regular patrollers. But on Sept 7, a bigger-than-usual patrolling group gathered on SS14/7. It was the first jointpatrolling held between the neighbourhood watch, policemen from the SS17 Subang Jaya police station and some 33Rela members from USJ. The inaugural three-party joint patrol was launched by Subang Jaya assemblyman Datuk LeeHwa Beng. “There are only 225 houses in SS14/7, which is good as I've always encouraged patrolling in small areas andnot to go too big,” said Lee. On Prime Minister Datuk Seri Abdullah Ahmad Badawi’s recent call to revive the RukunTetangga (RT), he said it was a good idea but felt that making night patrols compulsory for all males was too drastic.

(The Star-12nd September 2006)

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Flood mitigation plans facing difficulties Top

Redevelopment works at Kampung Kebun Bunga in Batu Tiga, Shah Alam, and the deepening of a mud-laden stretch atSungai Damansara in Kampung Johan Setia in Klang are measures considered as part of a flood mitigation programme.Floods wreaked havoc in Shah Alam and its surrounding areas again on Saturday. Among the areas that were floodedfollowing hours of rain were Batu Tiga, New Klang Valley Expressway (NKVE) Bukit Jelutong toll area and Taman TTDIJaya. Even heavy vehicles were stranded in the knee-deep waters. The state government has instructed PLUS to improvedrainage system along the NKVE. “The highway operator must conduct more studies and come up with better solutions toensure the expressway does not flood again,'' said Dr Khir. Following the Feb 26 flood in Shah Alam, he said the stategovernment had built retention ponds and carried out river and drainage upgrading works.

(The Star-13rd September 2006)

Network bus service postponed Top

Rangkaian Pengangkutan Integrasi Deras Sdn Bhd (Rapid KL) chief operating officer (bus operations) Mohd Ali Mohd Norrecently said that the launch of the new bus network service in Klang, Shah Alam, Subang Jaya, Damansara, PetalingJaya and Puchong (Areas 5 and 6) had been postponed from Sept 16 to Sept 23. “We need 250 new buses tocommence the new bus network service, but we have received only 100. We are expecting more to arrive next week andafter that approval for the necessary documents must be obtained for each bus before they are put on the roads,” saidMohd Ali. Mohd Ali added that the company would be planting 1,258 new bus stops with information panels in Areas 5and 6 before the launch, and was working on creating proper shelter designs for the bus stops and hubs. Under the PJUtara bus network, there will be 13 local shuttle routes with eight routes to and from LRT stations, and one trunk lineplying into Damansara from Bandar Utama to KL Sentral. The local shuttle routes are 613, 614, 615, 616, 620, 622, 623,624, 625, 626, 627, 628 and 629, while the trunk line route is T82. The trunk line service frequency is every 10 minutes,from 5.30am to 12.30-1am daily.

(The Star-14th September 2006)

Ensuring service in Cheras on right track Top

While they are excited over LRT line linking Cheras and Kota Damansara, residents in the former area want the service toreach up to at least Bandar Sungai Long, if not Kajang. Doing so, they claim, would put an end to the notorious trafficcongestion in the area. “Four parliamentary constituencies would benefit by linking the LRT service to Cheras and theseare Bandar Tun Razak, Cheras, Hulu Langat and Serdang, which has a combined population of at least one million,” saidMP Tan Kok Wai. “Residents in these areas, including from Semenyih, Mantin and Seremban, use the Cheras-KajangHighway to travel to work and are caught in a traffic jam despite paying toll charges. “Upgrading roads near Taman Segar,Plaza Phoenix and on Jalan Loke Yew may alleviate the problem, but LRT is a permanent solution,” he added. Tan said ifthe LRT line stopped somewhere in the middle of the highway, such as Plaza Phoenix, cars from the southern areaswould flood the station and congestion would only get worse. To avoid this, residents proposed that LRT stations be builtat housing estates along the highway. They also appealed for free-of-charge multi-level car parks at some of the LRTstations. SPNB chief executive officer Shaipudin Shah Harun said the route of the new LRT line would be made known atthe end of the year. “The new line in Cheras would likely go beyond Plaza Phoenix,'' he added. He assured residents thatthe study in Cheras covered areas from Taman Maluri to Bandar Sungai Long. “The new line in Cheras would likely gobeyond Plaza Phoenix,'' he added.

(The Star-20th September 2006)

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Ipoh to extend runway Top

Perak is prepared to relocate residents to extend the Sultan Azlan Shah Airport runway, said Menteri Besar Datuk SeriMohamad Tajol Rosli Ghazali. “We will build new houses for them (the residents) if we have to acquire their property,” hesaid. “We have land in the vicinity. That is why we have not given out land in the area,” he said yesterday, adding that thestate would not consider building a new airport to replace the present one. Tajol Rosli said the state needed to upgradethe runway so that if any airline wanted to fly from Ipoh to places further away like Madras and Guangzhou, they could doso. “We need a full load of fuel to fly to these places,” he said, adding that an airline has expressed interest in providingUmrah flights from Ipoh to Saudi Arabia. AirAsia chief executive officer Datuk Tony Fernandes recently announced thatthe airline was suspending its four-times-a-week Ipoh-Senai flights starting Tuesday. One of the reasons given for thiswas that the runway was not long enough.

(The Star-21st September 2006)

New bus terminal Top

Klang North bus commuters are full of praise for the new bus terminal that has a soothing green landscape. KlangConsumer Association president A. Devadass said the garden concept was good as the exhaust fumes from the busesare not trapped unlike in the old building. “We find the green landscape soothing to the eyes and it offers commuters amore relaxed environment. Klang Municipal Council (MPK) has done a good job in putting up this bus terminal,'' he said.Formerly the bus terminal was part of the Great Wall Supermarket, one of the oldest shopping centres in Klang. It wasrazed in a fire in May 2003 and the 27 year old building was demolished. Devadass said the bus terminal without wallsblocking the view was a good concept. “However, MPK must consider installing close-circuit television cameras to monitorthe bus terminal for commuter’s security, especially at night. We hope the public will keep the terminal clean and take careof the facilities,'' he said. MPK senior engineer Mohd Noor Mahmud said the RM700,000 bus terminal was scheduled toonly open in early October but the council decided to open it earlier as it was completed.

(The Star-21st September 2006)

Rapid starts new service covering PJ to Klang Top

Areas 5 & 6, which make up one third of Rapid KL’s bus network system, will be launched today. The official launch willbe held at Sunway Pyramid. The launch areas are in Petaling Jaya, Damansara, Puchong, Klang, Shah Alam, Subangand Subang Jaya. Describing it as the biggest area under Rapid KL’s new bus network system, Rapid KL chief operatingofficer for bus operations Mohd Ali Mohd Nor said Areas 5 & 6 would have a total of 264 buses plying nine trunk lines (92buses), 47 shuttle lines (162 buses) and one express line (10 buses). The local shuttle frequents at a 15-minute intervalwhile the trunk line takes 10 minutes. There will be a total of 1,257 new bus stops with information panels to providecommuters with information on the routes and bus numbers. Mohd Ali said the express line plying KL Sentral to Klangmakes two stops at Batu 10 and Asia Jaya (Armada Hotel and Petaling Jaya Hilton). Areas 5 & 6 also see the introductionof Rapid KL’s second sub-trunk line from Bandar Utama to Metro Prima in Kepong. The first sub-trunk line was fromBandar Utama to Putrajaya. Mohd Ali said when the entire bus network system was completed Rapid KL would cover 979housing estates whereas the old system serviced only 600 housing areas in the Klang Valley. Since January, Rapid KLhas launched Area 1 with its city shuttle service covering areas in the city; Area 2 - Rawang, Kepong, Batu Caves,Gombak and Selayang; Area 3 - Taman Melawati, Hulu Kelang, Wangsa Maju, Setapak, Keramat, Pandan and Ampang;and Area 4 - Cheras, Sungai Besi, Balakong, Seri Kembangan, Putrajaya, Cyberjaya, Serdang, Bangi, Kajang and HuluLangat.

(The Star-22nd September 2006)

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Traffic snarls still a problem Top

Traffic congestion is considered a normal phenomenon in a city and when Rapid KL introduced its new bus networksystem this year, the company hoped to entice more people to use buses as an efficient and reliable system might justhelp reduce traffic congestion. Although the completion of the Jalan Balakong/Besraya Highway and Mines/JalanBalakong interchanges have eased traffic congestion significantly, traffic jams are not a thing of the past, especially duringpeak hours. The congestion is mainly caused by motorists waiting for passengers by the station as well as buses andtaxis moving into the transit hub to pick up passengers. Serdang MP Datuk Yap Pian Hon said the opening of the RM91.3million Jalan Balakong/Besraya Highway and Mines/Jalan Balakong interchanges was a huge relief for motoristsfrequently using the highway to get to Seri Kembangan, Mines and Balakong. “The three interchanges allow motorists toget from Seri Kembangan to Balakong, Balakong to Seri Kembangan and from UPM to Balakong without being caught ina gridlock,” he said. Yap said although traffic congestion had reduced since the interchanges opened, traffic was still at astandstill near the railway station during peak hours. “This is caused by the design of the lanes as the lanes narrow atcertain points like from the U-turn leading to the KTM station. Another area thick with traffic is Jalan Tun Sambanthan,near the Sentral KL Monorail stop and Rapid KL's Sentral transit hub. Like the KTM Serdang hub, this area getscongested during peak hours.

(The Star-25th September 2006)

Field will not be removed, but upgraded Top

There is no truth to claims that an open field, behind the Keranji Apartments at SS19 in Subang Jaya, has been cleared ofits green, says Subang Jaya assemblyman Datuk Lee Hwa Beng. “Nor is there any plans by the Subang Jaya MunicipalCouncil (MPSJ) to turn the land around for development,” he said, adding that MPSJ had only cleared the area off old treestumps that were uprooted during thunderstorms some time ago. Lee assured residents that MPSJ was in the process ofturning the open area into a community park for their benefit. He said the council had even allocated RM170,000 forfacilities such as play equipment for children, a gazebo, benches around the park, a mini par course equipment and areflexology area. The upgrading of the park will also further enhance the existing landscape in the area. “This means thatthe residents enjoy more greenery, not less,” he added. “We are also providing spotlights so that residents can use thefacilities even during the night. I can assure the residents here that the open field will become more conducive forrecreational activities once the facilities are provided,” he said. “And, the works will be completed by the end of October.”

(The Star-27th September 2006)

Project in forest reserve irks residents Top

People living near the Gunung Stong Selatan forest reserve here are asking the government to review a rubber cultivationproject being carried out in the highland area. They say the felling of trees to make way for the project is the cause of dirtyand muddy water supplied to their houses. The forest, they say, is a water catchment area, which should be leftuntouched. A check found that an area within the forest reserve between Jalan Jelawang in Jeli and Gua Musang, at aheight of 350m above sea level, had been cleared. Resident Mokhtar Mohd Noor, 61, said since the project started, about500 people living in the surrounding areas, including orang asli families in nearby Kampung Kuala La, had been facingclean water supply problems. Project supervisor Lim Chin Fatt, 59, said the 607 ha rubber cultivation project began inSept 2005, with the first phase expected to be completed by year-end. He expects the RM9 million project to be fullycompleted in 10 years.

(The Star-28th September 2006)

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“We have been victimised” Top

They were promised new homes last year, but have still not received their keys. Worse, the new homeowners have beenslapped with fees for maintenance, electricity and water that they have not utilised for the last four years. According to thesales and purchase agreement signed in April 2002, the 250 residents were to move into their new Vista Damansara unitswithin three years from the signing of the contract. “We are now told by the developer that if we want our keys, we mustpay the bank quit rent from 2002 and 2006 and various charges such as maintenance, electricity and water,” said Kg SgKayu Ara residents association chairman Abidin Pandak during a meeting with the residents on Sunday. The newhomeowners are seeking compensation for late delivery due to them which amounts to about RM7,000 per person (for ahouse costing RM35,000) in addition to RM5,500 which includes moving allowance.

(The Star-28th September 2006)

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