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Tuesday, 31 May 2016

(NST) MRCB to continue asset monetisation to pare down debts


PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) will continue with its asset monetisation to pare down debts and maintain dividend payouts of 20 per cent of core earnings to shareholders, said executive director Mohd Imran Mohamad Salim. 

“After the first tranche of share placement exercise in April 2016, MRCB’s gearing is pared to 1.12 times,” he told reporters after the company's shareholders meeting held here today. 

“This is a marked improvement from a very indebted level of 1.73 times, back in December 2013. Over the years, we have been de-gearing via asset monetisation,” he said. 

In October 2015, the Youth and Sports Ministry awarded to MRCB’s subsidiary Rukun Juang Sdn Bhd (RJSB) a RM1.6 billion job to redevelop the Bukit Jalil Sports Complex into KL Sports City. 

In return for undertaking the redevelopment, RJSB will receive three parcels of land near the Bukit Jalil Sports Complex, measuring 11.38ha, 7.12ha and 18.94ha. 

The RM1.6 billion project is being carried out in two phases. The first phase (from January 2016 to June 2017) costing RM499 million involves getting the Bukit Jalil National Stadium ready to host the 2017 SEA Games. 

During this phase, RJSB will also carry out works on Putra Stadium, the National Aquatic Centre and the National Hockey Stadium, improve integration to the current transportation links and increase pedestrian access throughout the site. 

Two months ago, it was reported that the Employees Provident Fund, which holds 38 per cent in MRCB, offered to buy 80 per cent of RJSB’s stake in one of three parcels of land, for RM421.5 million. 

“This offer by our parent EPF is a form of land fund structuring. It doesn’t mean EPF is funding for the Bukit Jalil project,” he said. 

Imran reiterated MRCB is able to self-finance the RM1.6 billion regeneration of the Bukit Jalil Sports Complex. “We can generate funds internally and borrow money from the banks.” 

Imran assured that MRCB, while having relatively high gearing, is committed to paying out dividends to shareholders. “MRCB’s dividend policy is set at 20 per cent of core earnings.” 

He went on to say MRCB’s earnings is stable, having secured a slew of sizeable jobs involving the LRT 3 and MRT 2. “Our construction orderbook alone is at RM6.5 billion.” 

Apart from the redevelopment of Bukit Jalil Sports Complex into KL Sports City, Imran said MRCB is also busy with the development of Cyberjaya City Centre and Kwasa Sentral Commercial Centre. These long term projects yield an estimated gross development value of nearly RM20 billion. 

Also present at the media briefing were MRCB chief operating officer Kwan Joon Hoe, chief financial officer Ann Wan Tee and chief corporate officer Amarjit Singh Chhina. 

Last year, it was reported MRCB’s property sales fell to RM597 million, just over half of RM1.1 billion garnered in 2014. Kwan, however, expressed optimism sales momentum should pick-up again this year. 

“We’ve set an internal sales target of RM1 billion this year,” Kwan said, adding launches in the months ahead include new phases for 9 Seputeh, Sentral Suites at KL Sentral and affordable homes in Kajang.

(The Star) A home surrounded by greenery

KUCHING: MJC City Development Sdn Bhd’s third block of SkyVilla Residences is now open for purchase.
Called Bella, the block is the third of five in the project. SkyVilla Residences is built on 4.45ha surrounded by green landscaping at the edge of the Batu Kawah New Township.
The residential and commercial area is a stone’s throw away from the city centre and 7km from Kuching International Airport.
In 2013, the project was awarded Outstanding Residential High-Rise Development by the Sarawak Housing and Real Estate Developers’ Association.
The Bella block consists of 16 floors, with eight units per level, maximising comfort and privacy.
The units have a built-up area of between 1,001sq ft and 1,377sq ft, with views of either the city centre or overlooking a clubhouse.
Every unit is designed as if it were a semi-detached house, with layouts and designs that promote ventilation and natural lighting.
In a press release, the developer said features include “six security points” that come with 24-hour surveillance.
Every unit will have a private intercom to the guardhouse. Additional security is provided guards on patrol, CCTVs and six-feet high fencing.
Moreover, private access cards are required to enter the enclave and lift lobbies.
Lifestyle features include a swimming pool, outdoor jacuzzi, rooftop gardens, reading room, function hall, children’s playground, barbecue pits and a mini theatre.
The price per unit of Bella block condominiums start from RM74.20 a day.
The developer added that Block D was now open for registration of interest.

For more information, call property consultants at 014-9923226 or 013-8184335.

(The Edge) Focus on promoting luxury tours, says Najib

KUALA LUMPUR: Malaysia must intensify plans, preparations and the implementation of various initiatives to attract more mass tourists and luxury travellers, said Prime Minister Datuk Seri Najib Razak.

He said this was in line with the latest trend in the tourism sector, which focused on elite tourism.

Quoting a report from “The World Travel Monitor”, Najib said that in 2014, 46 million international luxury trips were taken.

“I am certain that by adopting this measure, we can derive much benefit for the local entrepreneurs and population by creating various job opportunities besides stimulating the local economy.

A range of businesses will see higher demand as a result, Najib said. “They include hire car, handicrafts, food and drinks, textile and clothing entrepreneurs who will enjoy the spillover benefits from the considerable expenditure by the luxury and mass tourists,” he said in his blog, NajibRazak.com.

In 2015, Malaysia received 25.7 million tourists who generated a RM69.1 billion income for the country. On the average, Malaysia succeeded in raising the expenditure by each tourist to about RM2,600, which also benefited the local community.

Touching on the St Regis Langkawi hotel, which was officially opened by the Yang di-Pertuan Agong Tuanku Abdul Halim Mu’adzam Shah on Sunday, Najib said it was part of the strategy to upgrade Langkawi into a destination of choice for tourists worldwide.

“It also signifies investors’ confidence in the Malaysian economy and government,” said Najib, who hopes that there will be more Indonesian investments in Malaysia, which would lead to integration and strengthening of the economies of both countries.

The prime minister pointed out that St Regis Langkawi was a success story in terms of joint planning by the government agencies in tourism. — Bernama


(The Edge) Langkawi to be rebranded as cosmetic tourism island

KUAH (Langkawi): Langkawi will be rebranded as a cosmetic tourism destination with the development of the Langkawi Cosmetics Island, that is similar to the Loire Valley in France, in an effort to woo more tourists from the higher-income group.

The chairman of the state committee on religion, tourism, heritage and public works Datuk Mohd Rawi Abd Hamid said so far 600 acres (243ha) of land involving RM200 million in investment had been identified in Kampung Ulu Melaka for the project.

It would accommodate a research and development centre, factory, sales centre and herbal cultivation centre, he said.

It was hoped that the creation of the centre would attract world-renowned cosmetics producers to set up their branches and produce their products fully in Langkawi, beginning with the process of obtaining raw materials such as herbs and flowers right up to the end product.

Mohd Rawi, who is also the state assemblyman for Ayer Hangat, said the selection of the location was made based on the advice of the science, technology and innovations ministry in collaboration with BioTechnology Corp Sdn Bhd.

In his speech at the official opening of the St Regis Hotel here on Sunday night, Prime Minister Datuk Seri Najib Razak said that a cosmetics centre would be developed in Langkawi and called for the planning of the centre to be carried out in a creative manner. — Bernama


(The Edge) What’s affordable in Bukit Jalil?

  • Non-landed residential property indices in Bukit Jalil appear affordable. Based on TheEdgeProperty.com’s analysis of transactions, the average transacted price of non-landed homes was RM464 per square foot in1Q2015 while the average transacted price per unit was about RM555,000. 
  • In the 12 months to 1Q2015, the RM600,001 – RM700,000 range made up 22.7% of transactions while 44.2% of transactions were in the RM500,000 and below range. Another 4.5% were for units above RM1 million.
  • The most expensive project was The Treez Jalil Residence, with an average price per unit of RM1.29 million, at least 38% higher than the next project. Completed at end-2013, this upmarket condominium has a Green Building Index certification and views of the Bukit Jalil Recreational Park. Typical unit sizes here are generous, ranging from 1,409 sq ft to 2,734 sq ft.
  • The Treez Jalil Residence was developed by Exsim Group. Among the group’s other upcoming projects in the vicinity are The Rainz, The Seedz and Twin Arkz. The former two will be located close to the Awan Besar and Muhibbah stations of the Sri Petaling LRT Line.
  • Besides the luxury condominiums, part of the Casa Green development by Amber Homes is available under the RUMAWIP scheme with prices from RM300,000. Meanwhile, 320 housing units have recently been made available under the PR1MA scheme.

(The Edge) TA Global defers Dutamas project again

KUALA LUMPUR: TA Global Bhd has once again deferred the launch of its Dutamas condominium development in Mont’Kiara here to the first quarter of next year (4Q17) from 4Q16, due to poor market conditions.

Sprawling 4.55 acres (1.84ha) of land in the exclusive and affluent residential enclave of Kenny Hills, Sri Hartamas and Mont’Kiara, the Dutamas project with a gross development value (GDV) of RM482 million has been in the group’s plans since 2011. It was originally scheduled to be launched in 4Q15.

TA Global executive director Kimmy Khoo said TA Global will, however, go ahead to launch its Ativo Suites, consisting of 668 units with a GDV of RM450 million, and its Little Bay Cove project in Sydney, Australia, with a GDV of A$160 million (RM472.87 million) this year.

She added that the timing of the launch of the Dutamas project will be dependent on market conditions, whose units are larger in size and higher in prices than the two-block Ativo Suites, its Damansara Avenue development.

“If the market is strong, we will be able to do it (launch in 4Q16). We are ready but it depends on the market because Ativo Suites are smaller; it is more affordable in terms of the price level,” Khoo told a press conference after the group’s annual general meeting (AGM) yesterday.

The built-up of the Dutamas units range from 1,652 sq ft to 6,500 sq ft for the penthouse unit, while 70% of the Ativo Suites units have a build-up of between 500 sq ft and 650 sq ft, and the remaining 30% units measure between 1,000 sq ft and 1,200 sq ft.

Khoo also said 83% of the Little Bay Cove project had been taken up to date. TA Global is expected to recognise A$138 million from the project on a progressive basis over 18 months starting 3Q16.

TA Global non-independent non-executive director Datuk Tan Kuay Fong said the bulk of the group’s revenue for FY16 will come from its Trump International Hotel and Tower project in Vancouver, Canada, which is targeted to open in August.

The group will keep three penthouses in the project for recurring income.

Trump International Hotel and Tower contributed RM46.4 million in profit, representing 57.4% of the group’s profit, in the 11-month period ended Dec 31, 2015 (FY15). The group had changed its financial year end from Jan 31 to Dec 31.

For FY15, TA Global recorded a net profit of RM43.62 million on revenue of RM534.95 million. The main contribution for the group came from hotel operations, property investments and property development outside of Malaysia.

Meanwhile, the group has also completed the refurbishment of its Movenpick Resort & Spa in Phuket to add in more rooms to the hotel. It also plans to develop a 20-acre land near the hotel.

On TA Enterprise Bhd’s stockbroking segment, Tan said the group is looking to open more branches in the future where the demand is.

The group opened two branches in Melaka and Penang last year, and a branch in Johor Baru in April 2016.

“We will look to open more when there’s a need because the cost of opening a branch has dropped signifi
cantly. Last time, we had to spend more than RM1 million to open a branch, but now trading is mostly one through the Internet,” Tan said.

“In spite of the challenging environment, our return on equity (ROE) in our stockbroking firm is still decent, much better than some of the bigger firms.

“Some firms had merged their stockbroking business with their investment bank. Our turnover might not be the biggest, but we have good people,” she added.

Tan said TA Enterprise’s ROE stood at 8% to 10%. On the recent announcement by Bank Negara Malaysia to develop a framework for financial technology, Tan opined that this would not have much impact on the group’s stockbroking segment, but more on investment banks.

But she did not rule out the possibility to partake in this industry, but will only go into it if they have the expertise.

On TA Enterprise’s high gearing ratio of 1.25 times, Tan said the group’s actual gearing is lesser at one times, which the group is comfortable with.

“We don’t want to bring back the money we made overseas because we don’t want to take exchange-rate risk. Whatever money we make overseas, we don’t want to bring back because I might have good use for it.

Our net gearing is only one times, which is still comfortable for us,” Tan said.

She added that the group still had land that it had yet to pledge, such as 2.47 acres of prime land located in the Kuala Lumpur City Centre area.

(The Edge) TRX City invites contractors for pre-qualification exercise

KUALA LUMPUR: TRX City Sdn Bhd is inviting contractors to participate in a pre-qualification exercise for a proposed traffic dispersion and improvement for part of Jalan Tun Razak, and construction of the Tun Razak Exchange’s (TRX) ingress and egress.

In a statement yesterday, the developer said the project will include the construction of Jalan Tun Razak-TRX Ingress & Egress (underground tunnel); MEX-TRX Ingress (elevated); SMART-TRX Ingress & Egress (underground tunnel); relocation of utilities services; landscape work; a flood gate system; and traffic management control.

“The traffic dispersal system and improvement of roads around the vicinity is a major component to ensure smooth traffic flows. Th is pre-qualification exercise is to identify potential candidates for the subsequent stage of the tender,” said its chief executive officer Datuk Azmar Talib.

TRX City said a briefing will be held at the TRX Gallery on June 8, and is compulsory for applicants.It said contractors that meet the criteria and wish to participate in the tender are invited to submit duly completed pre-qualification documents by 12pm on July 1.


(The Edge) Atlan unit gets nod for disposal of stake in duty-free business

SINGAPORE: Duty Free International Ltd (DFI), a 79.09%-owned subsidiary of Atlan Holdings Bhd, has received shareholders' green light to dispose of as much as a 25% stake plus one share in DFZ Capital Bhd, which operates the group's duty-free business via the ZON brand of retail shops, to Heinemann Asia Pacifi c Pte Ltd (HAP).

DFI executive director Lee Sze Siang told reporters after the company’s extraordinary general meeting yesterday that the sale completion would be positive to the company's performance going forward, as it capitalises on synergies expected by working with HAP, a wholly-owned unit of Gebr Heinemann.

“We view Heinemann as a strong business partner and strategic investor. The completion of the proposed sale will bring significant positive changes to DFZ. Going forward, we will be leveraging on its resources and expertise in the areas of purchasing, merchandising, product assortment and costing, retail store management, distribution and logistics management,” he said.

Lee said proceeds from the acquisition would allow DFI to further expand its business, with the company currently considering various options, eyeing other businesses that could complement its existing operations.

He added, however, that other business opportunities would not be discounted.

“One of the key synergies for this alliance is the similar business models and corporate culture that both organisations share.

We are confident [that] this partnership will provide a sturdy platform for our expansion into Southeast Asia,” said Heinemann chief executive officer Max Heinemann.

To recap, the exercise entails a first tranche sale of 20.99 million DFZ shares, representing 10% plus one share of the company's share capital, for €19.7 million (RM90.32 million), and two call options to purchase up to a further 15% equity interest in DFZ.

The sale of the first tranche is expected to be completed in June this year.

If HAP fully subscribes to the issuances, DFI will realise proceeds of up to €52.21 million and be left with a 75% stake minus one share in DFZ Capital, with the balance in HAP's hands.

DFZ Capital, said to be the country's largest local duty-free retailing group, has duty-free retail outlets, duty-free wholesale outlets and duty-paid retail outlets at various locations throughout Peninsular Malaysia such as Padang Besar, Langkawi, Bukit Kayu Hitam, the KL International Airport and Johor Baru.


Atlan closed three sen or 0.57% lower at RM5.2 yesterday, valuing it at RM1.32 billion.

(The Edge) Tropicana attracts another Chinese land investor

KUALA LUMPUR: Tropicana Corp Bhd is in the midst of finalising a deal to sell land in Johor to China-based Tiarn Group.

Tropicana announced to Bursa Malaysia yesterday that its indirect wholly-owned unit Tropicana Desa Mentari Sdn Bhd had entered into a heads of agreement with Terran Property Sdn Bhd.

The announcement said that the deal could be a land sale or the grant of development rights of the land to Terran Property or its related parties. The parcel of the freehold land of about 131.964ha in gross area is in Pulai, Johor Baru.

Sources close to the matter told Th e Edge Financial Daily that the piece of land could fetch a price of between RM500 million and RM600 million cash. However, both parties are still in talks to finalise the structure of payment for the land divestment.

Once the details have been ironed out, a definitive agreement would be signed.

Tropicana has been on a divestment spree as part of its efforts to pare down its massive borrowings.

The property developer’s debt reduction eff orts have yielded results with its fi nance cost halved to RM7.8 million in the quarter ended March 31, 2016, from RM14.7 million a year ago.

As at March 31, the group had cash and bank balances of RM775.45 million against its total borrowings of RM1.86 billion, including long-term debts of RM1.09 billion.

Tropicana possesses a land bank of more than 1,600 acres (647.5ha) across Malaysia with a potential gross development value of more than RM50 billion. It plans to launch in excess of RM1.5 billion worth of new projects in FY16.

Tropicana’s share price performance has been flat since the beginning of this year. Yesterday, its shares were unchanged at RM1.02, with a market capitalisation of RM1.46 billion.


(The Star) Petroleum gallery in Terengganu reopens

KUALA TERENGGANU: The Terengganu Museum's Petronas Petroleum Gallery which was closed since 2014, has reopened to the public.
Petronas East Coast Region general manager Wan Mohd Hasnan Abdullah said the gallery which opened in 1995 was temporarily closed in 2014 for renovation.
He said the gallery now has the latest information on oil and gas operations.
“Visitors can gain a better understanding of various activities in the oil and gas industry, from the formation of crude oil and gas, samples of rocks drilled from beneath the earth, profiles of earth layers as well as models of oil and gas plants, among others.
“Visitors will also be able to see the types of oil rigs, as well as the life of a worker in an oil rig,” he said after the gallery’s opening by Terengganu State Assembly Speaker Datuk Mohd Zubir Embong.

Also present were Terengganu Museum director Mohd Yusof Abdullah and Petronas public relations general manager Intan Ainirawati A. Razak. – Bernama

(The Star) Highway project will spur growth

TAWAU: Sabah Chief Minister Datuk Seri Musa Aman said the Pan Borneo Highway project would be a catalyst for the state's economic growth.
He said the east coast of Sabah possessed vast economic potential in the agricultural and tourism sectors.
“We are confident that the project would help to accelerate the state's development agenda in the areas concerned,” he said in his speech at the launch of the Pan Borneo, Tawau-Sandakan package here.
The Tawau-Sandakan package stretching from KM43 to KM48 (Semporna-Tawau check-point roundabout) was launched by Prime Minister Datuk Seri Najib Tun Razak.
Also present were Deputy Chief Minister Tan Sri Joseph Pairin Kitingan, Works Minister Datuk Seri Fadillah Yusof, Defence Minister Datuk Seri Hishammuddin Tun Hussein, Chief Secretary to the Government Tan Sri Dr Ali Hamsa and Sabah State Legislative Assembly Speaker Datuk Syed Abas Syed Ali.
“This is among the benefits we get if we continue to support Barisan Nasional,” Musa said.

He cited the Urban Transformation Centre (UTC) in Tawau, substantial allocation for security and defence through the Eastern Sabah Security Command (ESSCom) and upgrading of the Kalabakan-Sapulut Road in Tawau. – Bernama

(The Star) Ride-hailing apps on the rise

A survey conducted throughout Asia Pacific by Ford Motor Company found that consumers are increasingly using smartphones to plan their journeys, whether using private or public transportation or a combination of both.
“Smartphones are rapidly assimilating into our lives on the road,” said Ford Smart Mobility (Asia-Pacific) director John Larsen.
Regionally, one in four respondents said they used a ride-hailing app more than once a week to get around.
Respondents in China and India were the most likely to use ride-hailing apps at 28%.
On the other end of the spectrum were Australia and New Zealand, where respondents reported low ride-hailing app usage.
Only 5% of Australians and 3% of New Zealanders said they regularly used apps to book a car.
Across the region, use of these apps is on the rise, with 32% of respondents reporting increased use over a year earlier.
India (42%) and China (33%) were the main drivers of the upward trend, with New Zealand (7%), Taiwan (9%) and Australia (12%) reporting the lowest increase in use.
Car-sharing programmes are also becoming more popular, with one in five respondents in the region saying their participation in shared-car platforms had increased from a year earlier.
Indian respondents were the most likely to report higher use of car sharing, at 33%, followed by China (19%) and Malaysia (16%).
“Mobility challenges are local in nature, and although no two places have the same issues and opportunities, technology solutions can come from anywhere in the world,” said Larsen.
“For many, especially in urban environments, car-sharing programmes can offer significant benefits.
“We are looking at different sharing models in the US, Europe and here in the Asia-Pacific to explore ways of improving what it is like to take part in car sharing,” said Larsen.
“In India, for example, we are running a Ford Smart Mobility experiment to explore a model for easy vehicle sharing among close-knit groups such as families or colleagues.”
Malaysian survey responses showed the dominance of the private car in Malaysia’s transportation landscape — 76% said they travel by car regularly, meaning, more than once a week. Regular use of all transportation modes are broken down as follows:
Private car: 76% ; subway, tram or train 26%; bus 23%; electric scooter or motorbike 14%; taxi 12%; car-sharing programs 12%; ride-hailing apps 9%; and motorcycle taxi 3%.
The popularity of cars in Malaysia is continuing to increase. Private cars had the highest reported increase in usage of any mode of transport, with 47% of respondents saying they use private cars more than they did a year ago.
Although reported use of technology-enabled transportation modes — car-sharing programmes and taxi-hailing mobile apps — was relatively low compared with other markets in Asia Pacific, both modes are becoming more popular, with a 16% rise in usage froma year earlier.
Of transportation modes on the decline, taxis saw the largest reported decrease in usage, with 26% of respondents saying they used taxis less compared to a year earlier, followed by buses (24%) and subways, trams and trains (15%).

Malaysians are less likely to take more than one mode of transportation in a single trip compared with other markets in Asia Pacific with 41% of respondents saying they never or rarely used multi-modal transportation with only one in four doing so every day.

(The Star) Developer makes house ownership, umrah trip possible for bumiputra

Bumiputra house buyers who are anxious about finding the funds for their umrah now have some help with IJM Land’s “Beli Rumah, Jom Umrah” campaign.
A collaboration between IJM Land Bhd and Andalusia Travel & Tours Sdn Bhd, one of the topumrah travel agencies in Malaysia, gives potential bumiputra buyers in IJM Land’s Seremban 2, Seremban 2 Heights or Seri Binjai @ Rahang projects the opportunity to travel to Saudi Arabia for theumrah.
IJM Land central region senior general manager Hoo Kim See said the promotion, which ends on July 31, will help partially lift the financial burden off bumiputra house buyers.
“We understand that Muslims see the pilgrimage as a personal success for their spiritually.
“However, embarking on the trip requires a hefty amount from their savings, and purchasing a home is not a walk in the park either. We know both are equally important for them.
“By introducing this promotion, we hope to put their minds at ease,” said Hoo.
For every unit purchased, IJM Land is offering buyers an all-expenses-paid 12-day trip for two to perform the umrah.
The trip will include air tickets, accommodation on a twin-sharing basis at Hilton Towers, Mecca, for six nights and Mawaddah al Waha/Mawaddah al Huda, Madinah for four nights, ground transport and international buffet.
In addition to the trip, IJM Land offers accessible ownership package to assist buyers, ranging from low down payments, 0% interest instalment plans up to 36 months via credit card, free two-year S2 Club subscription fee, subsidy on legal documentation fee and other benefits.
As for IJM Land’s loyal customers, they will enjoy an additional rebate ranging from 1% to 1.5% under the IJM Land’s Purchaser Priority Programme.
Hoo added that bumiputra who wished to buy property but were not ready to embark on their pilgrimage could transfer the trip over to their parents.
“Buying a home is a big investment in life that needs careful financial planning whereas performing the umrah is definitely a privilege of a lifetime and can bring great rewards to the pilgrims.
Some of the properties on sale under the Beli Rumah, Jom Umrah campaign are the 20x70 two-storey link homes priced from RM488,110, 22x70 link homes from RM558,410 and 24x80 super-link homes priced from RM661,010 as well as the two-storey semi-detached homes priced from RM925,110.
Some of the properties are completed and ready for buyers to move in, which involves additional savings in terms of interest.
To top it off, buyers can view the actual property before paying the deposit upon request.

“For us at IJM Land, we want to make house purchases a real possibility,” said Hoo.

(The Star) New road link allows drivers from Subang Jaya and Putra Heights to access LDP

Motorists from Subang Jaya and Putra Heights heading towards Puchong can now use a link from Jalan Jurutera as an alternative road to get onto the Damansara-Puchong Highway (LDP).
The 200m-long link that was opened early this year will benefit residents of Putra Heights and Bandar Metro Puchong which includes Taman Sri Puchong, Lake Edge, Lake Side and Taman Perindustrian Puchong.
The road was opened to motorists last Saturday by Kinrara assemblyman Ng Sze Han and Puchong MP Gobind Singh Deo in a ceremony that was also attended by Subang Jaya Municipal Council (MPSJ) officers and councillors, as well as residents.
“Motorists heading for Puchong should keep left before the toll plaza to turn into Jalan Jurutera and exit at Jalan TPP 6/2 to get onto the LDP.
“The developer has handed over the road to MPSJ,” said Ng.
On the public’s query on why the road was not built before the Puchong Barat toll plaza was approved, Gobind agreed that alternative roads should be in place before tolls are approved.
However, he said the whole LDP stretch was considered as one project and it already had a toll-free stretch from Kinrara to Jalan Kelang Lama bypassing the tolled highway.
He also said it was good that Jalan Jurutera ran parallel to Sungai Kelang as it would reduce the likelihood of people dumping rubbish along the riverbank and pollute the river.
“With many cars passing the area, hopefully there will be fewer indiscriminate dumping cases,” he said.
Ng and Gobind proposed that road humps be built along the road to prevent motorists from speeding and urged motorists to adhere to the “no entry” sign and the speed limit.
On a separate note, Gobind said MPSJ had agreed to reduce the compound issued to SJK(T) Kinrara from over RM45,000 to RM10,000.
The school, located in Jalan Kinrara 1, was issued the compound for starting construction on a new block without the council’s approval.

“We helped them appeal to the council as the school committee did not know the procedure. Moreover, public funds are used for the construction,” said Gobind.

(The Star) Gombak folk want free bus service

Gombak residents want the Selangor Smart Bus service to be extended to more areas in the district, said Selayang Municipal Council (MPS) president Suliman Abd Rahman.
He said this was based on the many feedback he had received from the residents who wanted the same services in their areas after it was introduced in the Selayang area on May 16.
Batu Arang, Kundang, Rawang, Kuang and Sungai Buloh residents had appealed to the council asking for the free bus service, he added.
“This is due to the increasing population of the poor, old folk and students in these areas.
“The operating cost for four buses for the Selayang route is RM1.25mil.
“We hope the state can help expedite the process of getting the bus service in these areas as there is high demand from rural folk,’’ said Suliman during the MPS full board meeting in Bandar Baru Selayang yesterday.
Later, councillor Mohd Fauzan Madzlan asked about the new rubbish management project that MPS was undertaking and how to overcome public complaints when the project was implemented next year.
Suliman explained that the council would start operations under a new project called Project Management Corporation (PMC) that is managed by the Mentri Besar Incorporated (MBI) by June 2017.
“A company will handle PMC and manage all waste-related matters including public complaints, assets, new rates, new inventory, monetisation of waste, equipment and vehicles.
“We (MPS) only need to monitor the PMC’s progress and provide the funds as well as enforcement on rubbish disposal.

“This project is now being implemented in the Klang Municipal Council. I think the public will still complain about rubbish problems to MPS despite PMC handling it, but we must see how to ensure the implementation is done efficiently,’’ he said.

(The Star) AWC bags TRX signature tower plumbing contract

KUALA LUMPUR: AWC Bhd has secured a plumbing contract worth RM18.15mil from Mulia Property Development Sdn Bhd for the Tun Razak Exchange (TRX) project’s Signature Tower in Jalan Tun Razak/Jalan Davis.
The contract, to be undertaken by its wholly-owned subsidiary Qudotech Sdn Bhd (Qudotech), is for the supply, delivery, installation, testing, commissioning, maintenance and warranty of the cold water and plumbing works.
It is expected to be completed over 28 months commencing immediately with a targeted completion date of Sept 15, 2018, said AWC, an engineering services provider in a statement here yesterday.
“We are very excited to be part of this landmark project and will use this success as a springboard to bid for more plumbing contracts in the TRX project,” said AWC managing director and group chief executive officer Datuk Ahmad Kabeer Nagoor.
This project win coupled with other recent contract awards such as the KL118 project, the PNB 1194 (MAS Building) project and all existing projects already being implemented by Qudotech would increase AWCs plumbing order book to approximately RM130mil, the company said in the statemen\t.

When completed, Signature Tower will be TRXs tallest building and is poised to be a Prime Grade A office space comprising a 92-storey office tower with a five-storey office annex. – Bernama

(The Star) TRX City invites contractors for pre-qualification exercise

KUALA LUMPUR: TRX City Sdn Bhd, the master developer of Tun Razak Exchange (TRX), is inviting contractors to participate in a pre-qualification exercise for the proposed traffic dispersion and improvement to part of Jalan Tun Razak (JTR), as well as construction of the TRX ingress and egress.
The project will include the construction of JTR–TRX Ingress and Egress (underground tunnel), MEX–TRX Ingress (elevated), SMARTTRX Ingress and Egress (underground tunnel), relocation of utilities services, landscape work, flood gate system and traffic management control.
“The TRX project is in full swing and is moving into its next phase of construction. The traffic dispersal system and improvement of roads around the vicinity is a major component to ensure smooth traffic flow into and out of TRX,” chief executive officer Datuk Azmar Talib said in a statement yesterday..
He also said the pre-qualification exercise is to identify potential candidates for the subsequent stage of the tender.
A project information briefing will be held at the TRX Gallery on June 8, and is compulsory for applicants wishing to participate in this exercise.

Prospective contractors that meet the criteria and wish to participate in the tender are invited to submit duly completed pre-qualification documents by noon on July 1, 2016. – Bernama

(The Star) RM1.1bil GDV seen

KUALA LUMPUR: Analysts have estimated that the high-rise mixed development to be built under an agreement between UEM Sunrise Bhd and Telekom Malaysia Bhd (TM) will have an estimated gross development value (GDV) of about RM1.1bil.
AmInvestment Bank Research said the GDV assumption was made based on a plot ratio of 10x, market value of RM2,500 psf and an efficiency ratio of 60%.
The land value was tagged at between RM147mil to RM150mil as at Dec 31, 2014, based on two valuers,it said.
On May 27, the companies had announced the agreement to develop the property on two adjoining parcels of freehold land measuring a total of 1.69 acres belonging to TM.
The parcels of land are located along the southern side of Jalan Raja Chulan here, within walking distance of Menara Maybank, Menara Olympia, Bursa Malaysia building, Telekom Museum and SEGi College Kuala Lumpur.
Collectively known as Bukit Mahkamah land, it has a total net book value of RM35.88mil, based on TM’s latest audited financial statements as at Dec 31, 2015.
In its recent announcement to Bursa Malaysia, the telecommunications giant said the parcels of land are also close to public transport facilities such the Pudu Sentral, Masjid Jamek and Plaza Raya LRT stations.
One of the pieces of land currently has an 11-storey office building, with a two storey annexe building, which is about 40 years old and is being used by TM as office premises, while the other is a parking lot used by its employees.
Under the agreement, UEM Sunrise’s indirect unit, Sunrise Quality Sdn Bhd (Sunrise Quality) will develop the project, over an expected span of six years.
Sunrise Quality will pay TM a guaranteed land cost of RM150mil or RM2,037 psf, over a period of 16 months as well as a 5% share of the gross development value of the project to be determined later.
The land value was tagged at between RM147mil to RM150mil as at December 31, 2014, based on two valuers.
According to AmInvestment Research, a 5% share in the GDV would raise the land’s selling price to RM205mil, or RM2,784 psf.
Given the location it said the selling price was fair, compared to the Retirement Fund Inc’s acquisition of Tun Razak Exchange land at RM2,300 psf, while Tabung Haji paid RM2,774 psf last year.
Based on a net book value of RM36mil, it estimates an initial one-off net gain of RM87mil for TM from this transaction, or 9% of FY16F earnings.
“We are mildly positive on this development, which unlocks TM’s asset values and marginally enhances its return on equity,” it said.

The research house maintained its “hold” call on TM with an unchanged DCF-derived fair value of RM7.20 per share.