Iskandar Malaysia - Property Sector

Starting to bear fruit
•  Strong take-up of launches at new price benchmarks; warm response to JPO
•  Reaching tipping point, but achieving critical mass would take longer; increasing investments in IM should accelerate development progress
•  Top stock picks for exposure to Iskandar Malaysia : UEM Land, SP Setia, E&O, Genting Plantation

 

Warming ties with Singapore to boost IM investments
The Prime Ministers of Malaysia and Singapore met recently for the Malaysia-Singapore Leaders’ Retreat, which resulted fruitful discussions to enhance bilateral collaborations:
1)  Construction of an undersea tunnel linking Johor Bahru and Singapore as part of the proposed Rapid Transit  System (operational by 2018);
2)  Sale of electricity to Singapore, possibly from Pengeran (under the US$20bn refinery and petrochemical indust development);
3)  Plans to align radio frequency spectrums for digital broadcast and mobile broadband services;
4)  Forming a work group on industrial cooperation to promote IM and Singapore; and
5)  Cooperation in aviation and airport services between Johor’s Senai International Airport and Singapore’s Changi International Airport.

 

Other initiatives being explored include higher education, and technical and vocational education. For M+S Pte Ltd’s developments in Marina South and Ophir-Rochor (Singapore), construction is expected to commence in 2013 with targeted completion within 6 years.

 

The successful bilateral talks will boost prospects for IM. The industrial cooperation work group may be a springboard for more investments by Singapore in IM, and could be a key re-rating catalyst. Since 2006, IM has received RM77.8bn worth of committed investments (surpassing its initial targets). 

 

from: HDBS Vickers report

Popular posts from this blog

Malaysia Inflation to start easing end-3Q or early 4Q2011

Image
Malaysia Inflation Rose To The Fastest Pace.
Inflation is still a major concern and we expect the upward pressure to stay in 3Q2011 coming from food & non-alcoholic and clothing/footwear in  view of the festive seasons. Impact from June’s electricity tariff hike is expected to continue. But the  upward inflation pressure can be contained from stronger RM/USD and high base comparison. Nonetheless, we expect inflation to start easing by end 3Q2011 or early 4Q2011. Meanwhile, with global uncertainties flared by euro debt crisis and slower US economic recovery lingering, it has forced AxJ policymakers to focus on growth as opposed to inflation. Rates hikes could be reaching its tail end. We expect BNM to accommodate further erosion in real returns by holding OPR at 3.00% to focus on growth. But possibilities for another 25bps hike in OPR remains, as it depends on inflation outlook. Likewise SRR hike will depend on liquidity inflow. If that happen, we expect another 50bps to 100bp…
Read more

Trump’s Win – Bark Worse Than Bite?

Image
While Asian equity markets may remain soft after the surprise of Donald Trump’s win in the US presidential election, we look forward to buying opportunities. Essentially, we do not expect significant economic repercussions on Malaysia’s economy or corporate earnings, save for the indirect impact on downward biases for the ringgit vs the US dollar and on interest rates. We highlight the trough prices of our conviction picks, as well as some buying opportunities.

WHAT’S NEW
• Near-term confidence pricked. Asian equity markets have swooned on knee-jerk reactions to Trump’s surprise win; the FBMKLCI eased 1%. Despite the major turnaround in US equities after Trump’s acceptance speech which promoted national unity and stressed on fiscal stimulus (the DJI futures initially fell by as much as 800 pts before the cash DJI remarkably recovered to positive territory), investment sentiment in Asia may remain damp and to be swayed by Trump’s anti-globalisation rhetoric. Nevertheless, we do not …
Read more

FBM KLCI Technical Outlook

Image
Stocks on Bursa Malaysia snapped a three-day losing streak to end higher last Friday on bargain hunting in selected heavyweights, which saw late fund buying of Tanaga Nasional and Malayan Banking. Bargain hunting by institutional funds supported the local market but further gains were limited by fears of a better-than-expected US third-quarter gross domestic product data which will be out later of the day. Asian stock markets were mixed as they were still affected by a flurry of major corporate earnings reports across the region and the declining oil prices. The ringgit weakened further against the US dollar at 4.1970/1020 from the 4.1810/1900 recorded on Thursday, tracking the performance of emerging Asian currencies. At close, the FBM KLCI settled at 1,670.27, up 1.24 points or 0.07%, from Thursday’s close of 1,669.03, after opening 0.58 of a point higher at 1,669.61 and moved between 1,666.97 and 1,671.72 throughout the day. On a weekly basis, the benchmark index gained 0.29 of a p…
Read more