Construction To Benefit From Budget 2023, GE15, Penang Govt Urged To Review Homestay Restrictions At High-Rise Buildings And, More
27th September – 3rd October
Kenanga Investment Bank Bhd (Kenanga IB) expects the construction sector to gain from the upcoming Budget 2023’s higher gross development expenditure and the General Election 15 (GE15).
Meanwhile, the Malaysian Association of Homestay (Short-Term Rental) Practitioners has joined Airbnb in urging the Penang government to reconsider the proposed limits on short-term rental accommodation within high-rise buildings.
1) Construction to benefit from Budget 2023, GE15
Kenanga Investment Bank Bhd (Kenanga IB) expects the construction sector to gain from the upcoming Budget 2023’s higher gross development expenditure and the General Election 15 (GE15).
Notably, it forecast Budget 2023’s gross development expenditure to stand at RM90 billion, up from FY2022’s RM76 billion primarily due to the absence of COVID-19 pandemic-related funds in the previous Budget 2022, reported Borneo Post.
“The rollout of new public project will come handy at a time when order-books of most contractors are fast depleting,” said Kenanga IB.
It also expects a new wave of awards of public infrastructure projects after the GE15.
These will include Pan Borneo Sarawak Phase 2, MRT3, Pan Borneo Sabah, Central Spine Road as well as various flood mitigation and hospital projects.
“It is critical for the government to start rolling out new jobs as most key on-going infrastructure projects are already at their tail-end including MRT2, LRT3, Pan Borneo Phase 1,” said Kenanga IB.
2) Penang govt urged to review homestay restrictions at high-rise buildings
The Malaysian Association of Homestay (Short-Term Rental) Practitioners has joined Airbnb in urging the Penang government to reconsider the proposed limits on short-term rental accommodation within high-rise buildings.
The association noted that the restrictions limited the options of travellers who are looking for affordable accommodation, while making it hard for property owners to pay their housing loans, reported Free Malaysia Today.
“The proposed rental cap of 180 days a year and three days a week are hardly ideal for short-term rentals when it is the top choice of travel accommodation for international and domestic travellers,” said the association’s President, Lydia Teh.
She underscored that short-term accommodations have contributed significantly to Penang’s tourism over the past decade. As such, the legalisation of any industry must be discussed with all stakeholders involved to find a middle ground.
“Together, we should support and sustain Penang’s tourism, rather than stamp out an industry which has contributed so much to our local tourism sector,” said Teh.
3) World Bank upgrades 2022 GDP growth forecast for Malaysia
The World Bank has upgraded its 2022 economic growth forecast for Malaysia to 6.4% from 5.5% previously amid the above-expected performance during the first half of 2022.
Apurva Sanghi, World Bank’s Lead Economist for Malaysia, noted that the above-forecast growth in 1H 2022 was driven by high growth in Q2 2022 following the full reopening of the economy, reported The Sun.
“Starting from 1 April, the one-off special withdrawals from EPF supported domestic consumption as well as robust export growth from both E&E segments and commodities,” he said.
“Services, due to tourism and manufacturing, have done rather well. Construction rebounded, (but) remains constrained by labour shortages and rising costs of construction (building materials). Mining and agricultural declined.”
He noted that Malaysia would also benefit from the low base of growth in Q3 2021, when the economy contracted 4.5%.
Apurva, however, pointed that growth is fragile since it is not felt equally.
For 2023, the World Bank revised its GDP forecast for Malaysia downwards from 4.5% to 4.2%.
4) UAE invited to participate in Bandar Malaysia project
Prime Minister Datuk Seri Ismail Sabri Yaakob has extended an invitation to the United Arab Emirates (UAE) to take part in the development of the Bandar Malaysia project in Kuala Lumpur.
Ismail Sabri made the invitation during a meeting with UAE’s President Sheikh Mohamed bin Zayed Al Nahyan as part of his four-day working visit to UAE, reported Bernama.
“I informed him about the development of Bandar Malaysia, which was done in several phases and several packages. I invite the UAE to be involved in the packages offered,” he said.
Ismail Sabri revealed that the Cabinet had agreed to “revisit” Bandar Malaysia project.
In fact, the Ministry of Finance as well as the Economic Planning Unit (EPU) in the Prime Minister’s Department are discussing development proposals and packages for the project.
Set to be a world-class, master-planned development within Kuala Lumpur, Bandar Malaysia is a 196-hectare development by Bandar Malaysia Sdn Bhd, a fully-owned unit of TRX City Sdn Bhd, which in turn is a subsidiary of the Ministry of Finance.
5) Selangor to help complete infrastructure work at Kg Koskan development
After 20 years of waiting, 43 landowners in Kampung Koskan, Rawang are grateful that the state government of Selangor has agreed to pump in RM5.2 million to complete infrastructure works at their unfinished homes.
“We hope the project can be completed soon as several landowners have already died while waiting for a solution,” said owner Abdul Aziz Mahmud.
The civil service retiree wrote the state government, on behalf of the other landowners, in 2019 to ask for help, reported The Star.
Works at the housing project started in 2000, but was subsequently stalled after the developer went bust in 2012, leaving works on the drainage, access roads and utility lines uncompleted.
State Housing, Urban Well-being and Entrepreneur Development Committee Chairman Rodziah Ismail revealed that the state agreed to help the landowners in 2019 using a special fund.
“A contractor has been appointed under the ‘Abandoned Projects Recovery Fund’ and has started construction at the site on 16 May,” she said.
To be completed by 14 November, works at the development include stabilising the soil structure, building drainage, roads, onsite detention pond and provisions for utility lines.
6) 25% of Bukit Dinding hillslope site to be retained as green area
Kuala Lumpur Mayor Datuk Seri Mahadi Che Ngah said 25% of the Bukit Dinding hillslope site in Wangsa Maju, Kuala Lumpur, which has been approved for high-rise development, should be retained as a green area to prevent landslides.
He noted that this percentage is higher than the usual 5% of green space retained at other developments, reported The Star.
“The slopes at the site were identified to be Class 3 and 4 (Class 3 are slopes with 25°-35° incline while Class 4 are slopes with inclines above 35°),” he said.
“As of now, no work can take place as engagement sessions with locals are still being conducted.”
The Bukit Dinding site gained attention after a group of residents from Setiawangsa and Wangsa Maju raised opposition against the project, which will feature two 26-storey apartment blocks.
They were worried the planned development would cause landslides within the area, given the higher rainfall seen in recent years.
7) Taman Kinrara residents’ 30-year wait for proper access road continues
Residents of Taman Kinrara Section 5 in Puchong, Selangor has been waiting for over 30 years for a proper access route to their neighbourhood.
They revealed that they have been using a slip road to get to their neighbourhood even as it has been fully developed, reported The Star.
Their situation is made worse by motorists coming from Section 3 and 4 who also utilise the slip road to get to Kesas highway, said Taman Kinrara residents representative S. Sivanesan.
“Jalan TK5/32A is a narrow road and is meant only for people to get to the commercial area. It is not suitable to be a main access road for thousands of vehicles,” he said.
In fact, there had been several accidents on Jalan TK5/32A.
He shared that while several attempts had been made to follow up with the local authority regarding the matter, they did not receive any proper response.
