Selangor to review hillslope projects

SHAH ALAM: All hillslope development projects in Selangor will be reviewed, said its Menteri Besar Tan Sri Khalid Ibrahim yesterday. Speaking to reporters after chairing the first state executive council meeting, he said exco member Ronnie Liu, who is in charge of local government, has been tasked with finding ways to resolve the problem of hillslope projects. He said Liu will meet presidents from local councils like Ampang Jaya where there are hillslope projects and advise the executive council on what measures to take on this matter. Hillslope developments have been equated with the rape of hills, and this has been a sore point as such projects continue to be done despite statements made by national leaders over the years, including prime ministers. On another matter, Khalid revealed that the state government wanted to revive the controversial Port Klang Free Trade Zone. “With RM4.5 billion invested in that project, we do not see the vibrancy and dynamism in that area. If you have that sort of real estate not being utilised, can you imagine the state not having the responsibility to take care of that area?” he asked. He believed his involvement in the privatisation of Port Klang services in 1992 as a former chairman of then Kontena Nasional Sdn Bhd will help him to carry out the task.

(The Edge 27-3-2008)

SP Setia in JV with DBKL on mega project near Mid Valley

KUALA LUMPUR: SP Setia Bhd is set to finalise a joint venture (JV) agreement with Dewan Bandaraya Kuala Lumpur (DBKL) to develop high-rise residential cum commercial project on a 20-acre (8.1ha) plot located opposite the Mid Valley City. Speaking to reporters at Invest Malaysia 2008 yesterday, SP Setia’s managing director Tan Sri Liew Kee Sin said the company secured an approval from the Economic Planning Unit (EPU) seven years ago for the project. Although it had subsequently signed a memorandum of understanding (MoU) a few years ago with the DBKL, a privatisation agreement is still pending. “We expect to finalise a deal with DBKL soon and launch the project next year,” said Liew. However, he declined to reveal the value of the project. Squatters residing on the land were relocated to nearby apartments recently, indicating that the project is making progress. The JV between SP Setia and DBKL will be similar to previous deals such as the one between IGB Group Bhd and DBKL for the now completed Mid Valley City project. Under such deals, DBKL would provide land while developers such as SP Setia or IGB carry out the development work and invest in the infrastructure. Read more

(The Edge 27-3-2008)

MRCB: Subway system is several times costlier than monorail

KUALA LUMPUR: While the suggestion from Penang’s new Chief Minister Lim Guan Eng to build a subway system in Penang as opposed to a monorail is technically feasible, it will cost considerably more, said Malaysian Resources Corp Bhd (MRCB) managing director Shahril Ridza Ridzuan at Invest Malaysia 2008. MRCB was picked to build the monorail system by the Federal government. “Engineering-wise it is not so much an issue. At the end of the day, it is whether it meets the requirements of what they (the state and federal governments) are trying to achieve on a technical point, or whether from a cost point of view it is attractive. “A tunnel solution for public transport will cost substantially more, you are talking about maybe a factor of four or five times more depending on soil conditions,” said Shahril. Lim said recently that a subway rail system could be considered over an overhead structure, as a subway system could also double up as a flood mitigation tunnel. Read more

(The Edge 27-3-2008)

Danga City Mall to open in Johor in July

ONE of the biggest shopping complexes in Johor Baru - Danga City Mall - will open in July with Metrojaya as its anchor tenant.The tenancy agreement will be signed on Friday between the complex owners, Danga City Mall Sdn Bhd (DCM) and Metrojaya Bhd’s wholly-owned subsidiary, MJ Department Stores Sdn Bhd.DCM director Gary Lee Seaton said the mall is scheduled to open in July as soon as Metrojaya completes its renovations and fittings.News of the opening has spurred a great deal of interest in Johor Baru with strong enquiries from Malaysian and Singapore-based retailers and traders for take-up of the 500-odd shop lots in the complex. — Bernama

(New Straits Times 27-3-2008)

Penang mulls subway system instead of monorail

PENANG is mulling the idea of building a subway system as a long-term solution for its traffic and flooding problem, instead of the elevated monorail project mooted by the federal government."The final say on this matter, however, rests with the federal government, since the monorail is a project which is to be financed by the federal authorities," Penang Chief Minister Lim Guan Eng said.He was speaking to reporters after chairing his second state executive council meeting in George Town yesterday.Lim said he realises that an underground transportation system will cost at least three times more than the monorail system. The chief minister, who received a courtesy call on Tuesday from Malaysian Resources Corp Bhd (MRCB) officials, said he was briefed on the monorail project."The parties involved in the monorail project said that they are unable to secure financing for a subway system," Lim said.MRCB, together with Penang Port Sdn Bhd and Scomi Engineering Bhd's subsidiary, Scomi Rail Bhd, have jointly bid for a monorail project on the island.In January, Syarikat Prasarana Negara (SPNB) issued a letter of intent to the consortium for the monorail job. The monorail is said to comprise two lines measuring 25km.The first route proposed is between the Penang International Airport and George Town, while the second line will be from George Town to Tanjung Bungah.

(New Straits Times 27-3-2008)

SP Setia eyes RM520m profit

SP Setia Bhd, Malaysia's most valuable property company, aims to double its net profit in four years, helped by new product offerings and overseas expansion.The company expects overseas businesses to contribute equally to its net profit and revenue by 2012, said group managing director and chief executive officer Tan Sri Liew Kee Sin.SP Setia, which has a market value of some RM5 billion, made a net profit of RM260 million for the 12 months ended October 31 last year. Its revenue was flat at RM1.15 billion."We are looking at launching new projects in nearby neighbouring countries, which we can effectively manage. "There is huge potential in Southeast Asia. Besides maintaining a steady growth in Malaysia, we will launch projects in new markets," Liew told reporters at Invest Malaysia 2008 in Kuala Lumpur yesterday. Read more

(New Straits Times 27-3-2008)

Headline inflation rises at slower pace of 2%

THE headline inflation rate, as measured by the annual change in the Consumer Price Index (CPI), increased at a slower pace of 2% in 2007 (2006:3.6%). The level of inflation was within the forecast range of 2% to 2.5%. While supply factors remained important, they contributed less to overall inflation, as the impact of earlier adjustments to administered prices waned in the first quarter of 2007.Read more

SP Setia Q1 net profit up 3.8% at RM48.52m

PETALING JAYA: SP Setia Bhd posted net profit of RM48.52mil for the first quarter ended Jan 31, 2008, up 3.8% from RM46.76mil a year ago, boosted by its property development in the Klang Valley, Johor Bahru and Penang. The company said yesterday revenue rose 19% to RM303.65mil from RM255.21mil. Earnings per share was 4.81 sen compared with 4.56 sen. Apart from property development, the group’s construction and wood-based manufacturing activities contributed to the earnings. SP Setia said its focus for the current financial year was to transform itself from being largely a Malaysian developer of residential homes to a fully integrated regional real estate developer. Commenting on its first integrated commercial project, Setia Walk in Pusat Bandar Puchong, the company said sales had been encouraging. “Along with the solid contributions by its established residential developments in the Klang Valley, Johor Bahru and Penang, total sales as at Feb 29, 2008 amounted to RM646mil,” it said, adding this was significantly higher than the RM290mil a year ago. On its overseas ventures, SP Setia said it targeted to launch its first overseas project in Vietnam by July this year.

(The Star 27-3-2008)