Tuesday, October 30, 2018

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Monday, October 29, 2018

Strategic position makes Malaysia Alibaba’s pick as DFTZ host

Malaysia was chosen to host the Digital Free Trade Zone (DFTZ) due to its position as an important hub in the Maritime Silk Road, said Alibaba Group Holding Ltd electronic World Trade Platform (eWTP) project leader Song Juntao.
Apart from that, he said Malaysia’s aggressive push to develop a digital economy is another reason for the country being selected to host Alibaba’s first eWTP outside of China.
“Both these factors are highly compatible with the eWTP concept, and also allows room for the development of local small and medium enterprises (SMEs),” Song said last Friday.
He also said since the official launch of the DFTZ by Alibaba founder Jack Ma and Prime Minister Datuk Seri Mohd Najib Razak, many big developers and electronic financial companies have started to move into Malaysia.
“At the same time, training programmes for local SMEs in Malaysia have also commenced,” he said.
Minister in the Prime Minister’s Department Datuk Seri Dr Wee Ka Siong — who paid a courtesy visit to the Alibaba headquarters in China last week — commended Alibaba’s recognition in making Malaysia its first eWTP hub, as it would redefine global trade and the e-commerce industry.
“The DFTZ can help local SMEs enter the global arena, integrate with the overseas market and help move the nations towards globalisation.
“The new concept of retail shopping, cloud technology, big data and so on initiated by Alibaba will enable local SMEs to be more competitive in the international arena, and to be more efficient and compatible,” Wee said.
The collaboration with Alibaba, he said, will make Malaysia’s DFTZ the digital backbone of the nation’s logistics, payments, customs clearance and data integration.
“It will thus become the infrastructure for the development of our nation’s digital economy and a window of opportunity for local SMEs to open up to the world,” he said.
Wee urged local traditional industry players to embrace the digital economy and adopt Alibaba’s five new strategies, which are “new retail”, “new finance”, “new manufacturing”, “new technology” and “new energy resources” — saying it will completely change the pattern for future industries.
Last month, Najib together with Ma flagged off 1,972 SMEs and said the DFTZ would facilitate SMEs to capitalise on the convergence of exponential growth of the Internet economy and cross-border trade.
He reiterated that the DFTZ would increase SME goods export to US$38 billion (RM155.42 billion) and create over 60,000 jobs, in addition to supporting the movement of US$65 billion worth of goods by 2025.
“We want it (DFTZ) to be one of the iconic projects, because digital Malaysia has a growth rate of 18.2% so far and would grow to 20% by 2020,” Najib had said during the launch in Sepang.
The idea of DFTZ was first mooted in Malaysia on Nov 4, 2016, when Ma first visited Malaysia. Malaysian Digital Economy Corp (MDEC) had reported that the DFTZ will be a boost to Malaysia’s e-commerce roadmap that was introduced in 2016, which aims to double the nation’s e-commerce growth and increase the gross domestic product contribution to RM211 billion (or approximately US$47.68 billion) by 2020.

Newsmakers 2017: The Jack Ma factor in Malaysia’s digital free trade zone

THE launch of Malaysia’s Digital Free Trade Zone (DFTZ), touted as the world’s first, was one of the most publicised events this year. It threw two names in the spotlight — Alibaba Group Holding Ltd founder Jack Ma and Catcha Group CEO Patrick Grove.
First announced in March, the DFTZ has been open for business since last month. It is aimed at helping local small and medium enterprises get into cross-border trade by leveraging technology.
The government anticipates that this joint venture with Alibaba, China’s e-commerce giant, will handle up to US$65 billion worth of goods and create 60,000 jobs by 2025.

So convinced were Prime Minister Datuk Seri Najib Razak and Ma of the project’s prospects, that the DFTZ deal was sealed within 10 minutes when the two met in Beijing in November 2016, a jubilant Najib revealed in March.
In a nutshell, DFTZ is made up of three main components that combine physical and virtual zones. The first two — the e-fulfilment logistics hub and the e-services platform — will be carried out in collaboration with Alibaba.
The third — Kuala Lumpur Internet City — the primary digital hub for the DTFZ will be developed by regional internet firm, Catcha Group, on a 10-acre tract in Bandar Malaysia.
What is apparent is that Ma’s Alibaba is the clear, immediate winner from the DFTZ. It has tentacles in commerce, payment and financial services, logistics, cloud computing and other services.
It is expected to use the former Low-Cost Carrier Terminal in Sepang as its logistics hub to serve its e-business in Southeast Asia. The regional logistics hub fits right into Alibaba’s plan to extend its reach beyond China and into Southeast Asia.
As for Malaysian SMEs, for now, it remains to be seen how many will jump at the opportunity to use the e-service platform to grow sales. The government has already thrown in incentives, announcing that goods bought online will be exempt from tax in the DFTZ as long as they are worth RM1,200 and below — a higher threshold than the earlier RM500 price range.
With so much hype around it, the DFTZ’s progress will certainly be keenly watched next year.  

DFTZ a game changer; will make Malaysia more accessible to the world: SMEs

SEPANG: The Digital Free Trade Zone (DFTZ) Goes Live was an eagerly awaited event for Malaysian small and medium enterprises (SMEs), who wanted to take full advantage of the state-of-the-art e-commerce hub to expand their market shares globally.
The advisor to the Secretariat for the Advancement of Malaysian Entrepreneurs (SAME) Peter Phang, who witnessed the historic moment at the Sepang International Circuit (SIC) this evening said the DFTZ will be a game-changer for the local SMEs.
"Our country is now officially the digital free trade hub for this part of the world and from now on we are effectively being transformed and recognised in the digital world," he said.
The presence of 20 top global freight forwarders in DFTZ will also make Malaysia more accessible to the world.
"Today is also the day that marks the flag off of 1,900 Malaysian SMEs to ride on the digital bandwagon for global trade," he added.
Sharing his e-commerce trading experience, the managing director of Love A Durian, Benson Wong, who exports Love a Durian White Coffee in the region, strongly believes in the power of e-commerce, especially for Malaysian products to penetrate the Chinese market.
"There are a lot of food safety regulations in the world. The DFTZ allows SMEs like us to do new cross-border e-commerce and open up the market, especially in China.
"It also saves a lot of time, because our stocks can be parked in the DFTZ warehouse. Imagine the speed of sending our products from Shah Alam to Penang. Or to China."
But for green household and industrial cleaning product exporter, Kleenso Resources Sdn Bhd, there is a need for DFTZ to support more homegrown manufacturers.
"The DFTZ, at this moment, will benefit the e-commerce online traders," its founder Lee Teck Meng opined. "It can still benefit Malaysian manufacturers like me. But we will have to put in a lot of effort to manage and promote our products that will be in direct competition with products made in China.
"So a lot of local manufacturers will choose exhibition over an e-commerce platform because of its direct and bigger impact."
Sharing the same sentiment, the president of Young Entrepreneurs Association (GMB Malaysia) Agil Faisal Ahmad Fadzil said the mechanics of DFTZ need to be outlined and fine-tuned to support more local e-Commerce players as well as homegrown products.
"The DFTZ should facilitate local SMEs in embracing e-Commerce because our take-up rate is still low. We need to scale up our SMEs, who are more apt at doing business to consumers (B to C) as compare to business to business (B to B) as propagated by Alibaba," he explained.
There are also concerns over different market requirements, especially in China that many local SMEs are still unfamiliar with.

DFTZ expects to attract RM800m investments

KUALA LUMPUR: The Digital Free Trade Zone (DFTZ) is expected to receive RM800 million investments on infrastructure development, facilities, systems and equipment over the next three years.
Malaysia Airports Holdings Bhd (MAHB) managing director, Datuk Badlisham Ghazali said the investments would come from the airport operator with joint-venture (JV) companies as well as direct investments from China and would drive Malaysia's digital economic growth.
Badlisham said the DFTZ pioneer project based at KLIA Air-Cargo Terminal 1 (KACT1) at KLIA Aeropolis Development and Logistics Cluster is also expected to generate RM1.6 billion to gross domestic product (GDP) and create 6,000 jobs over the next three to four years.

“DFTZ is expected to receive RM800 million investment to further boost the development of the country's digital economy zone on 36.4 hectares of land, which will be fully completed by 2020,” he said during the DFTZ latest media briefing in Sepang, yesterday.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed attended the briefing session and visited the DFTZ project site to review the development of the country's digital economic zone.
Also present were Malaysia Digital Economic Corp (MDEC) chief executive officer Datuk Yasmin Mahmood and the ministry’s secretary-general Datuk Seri J. Jayasiri.
Badlisham said MAHB and Alibaba Group through its logistics unit, Cainiao Network will develop KLIA Aeropolis DFTZ Park, that sits on a 24.9-hectare within the DFTZ development area.
The project is being developed and will be handed over to a JV company for facility development, which will be the first Electronic World Trade Platform (eWTP) outside China.
“The facility will include 1.2 million sq ft of gross floor area (GFA) for cargo terminals, construction centres, warehouses and operating offices. It is expected to be completed in the third quarter of 2020,” he said.
Another 12.1 hectares development will be built for other e-commerce players to expand their business through DFTZ.
“MAHB will also develop one million sq ft of GFA for cargo convenience in the next three years. To this end, we are looking at potential partners to develop high-grade warehouses and distribution centres through built and lease concepts to meet other requirements including halal logistics.
“Other infrastructure developments include commercial free zone corridors, which will be developed to meet business growth, while the cargo station will support interconnection with the seaport, as well as this facility will also be used for data analytics to improve operational efficiency,” he added.
Earlier, Mustapa said a total of 2,651 small and medium enterprises (SMEs) had joined DFTZ so far and it was on track to reach the target of 10,000 SMEs by year-end.
“Since DFTZ was launched by the Prime Minister Datuk Seri Najib Razak and Jack Ma six month ago, we see the growth is quite encouraging as it triggers to drive SMEs towards e-commerce.
“We also hope that Bumiputera e-commerce companies will also benefit from the RM50 million allocation in DFTZ's e-Commerce WIRA initiative for the next three years as announced by Najib recently,” he said.

US-based Horizon to develop outlet mall 40km from the city

SHOPPING in the Klang Valley is about to take on a new dimension with the development of its first outlet centre, or outlet mall. Resembling Johor Premium Outlet (JPO), Horizon Group Properties Inc from the United States says the Kuala Lumpur International Outlet (KLIO) may well be the best among its stable of outlet malls in the United States.
The Chicago-based Horizon group develops only outlet centres. It is the third largest in the United States, says its director of leasing Greg Clarke during a trip to Kuala Lumpur.
KLIO will be located 40km south of the city and 10km north of the Kuala Lumpur International Airport (KLIA) at the intersection between toll-free B15 highway to the KLIA and the Elite Highway. It will be the first development to be built in a new township of about 2,235 acres being master planned by the Sime Darby group.
KLIO will be one of two major focus of the township, the other being Xiamen University from China. KLIO will be undertaken by Horizon Outlet Shoppes Sdn Bhd, a joint venture between Horizon Group Properties and Mainstay Holdings Sdn Bhd, a local property and construction firm. The 70:30 JV purchased 40 acres of land from conglomerate Sime Darby to build KLIO.

The land purchase was formalised on April 25 this year. Mainstay has the majority stake.
Horizon will develop the project with its JV partners and will also undertake the leasing of the mall.
“We will bring the relationships we have established with international retailers who are already with us and who are already here as full-priced stores,” he says.
When built at more than RM400,000, KLIO will have a total of 400,000 sq ft. It will be developed over two phases with the first phase to take up 26 acres and the second phase 4 acres. This second phase will be an extension of the first phase.
Clarke says phase one is expected to have more than 140 retailers.
The structure resembles the alphabet L with a centre court and food and beverage (F&B) oulets located at each end of the structure. While most of the outlets will be in single-storey space, some of the premium brands will occupy duplexes.
The project is designed by an international team of architects from Ross Adams USA who worked on Horizon’s stable of outlets in the United States. It has 10 and the group has opened an average of one outlet a year thus far. It is also working with China to have an outlet mall there.
Clarke says they are currently doing the designs for KLIO and will be submitting them to their partners who are coordinating the different process. Construction will start in September this year and completed by July 2016. They are working towards a 95% occupany or more when it opens.
Outlet centres vs standalone malls
Clarke says outlet centres or malls form the second generation of retail industry and apart from offering merchandise similar with other malls, prices will be a lot less.
“Prices at outlet centres are typically between 40% and 70% lower because rent at outlet centres are typically lower, staff per shopper are lower although the space may be bigger,” he says.
He says the retail environment may be less decorated compared with the retail space inside a standalone mall. “Shoppers like both brands and value,” he says. From market studies, Clarke says shoppers tend to stay longer in outlet malls and come in larger groups.
KLIO will have an open outdoor environment but unlike the JPO, all the walkways will be covered for shoppers’ convenience and comfort.
“We will offer better parking facilities, all of which will be covered. There will be about 2,000 car park bays located at ground level and space for more than 25 coaches.”
The mall will have six entrances from the car park including the drop-off area. All the outlets will be located one level above. There will also be more quality F&B outlets, he says.
Clarke says the plan is to have between 15% and 20% of the space, or 60,000 to 80,000 sq ft, for F&B outlets. On this point, it differs from its US outlets which only have about 5% of F&B space.
This will be Horizon’s first international outlet centre. It is working on another centre in China currently, with a separate partner. The progress of that development is about the same as this KL venture.
On its strategy, Clarke says retailers like CoachNike and Polo – while other brands like Hugo Boss and Burberry offer previous season’s merchandise or odd sizes.
Because it is located on a master planned university township, there is the potential that it may enjoy promising sales.
“I wish I can say we will be bringing in new retailers into KLIO but logistically, unless they already supply to their stores here, new brands will not be here. Retailers in outlet centres always follow their full-priced stores,” he says.
Asians go for brands
The percentage of luxury goods will be much higher in Malaysia than its US centres as Asians tend to like brands a lot more. The merchandise mix include accessories like bags, casual and children’s wear and sport wear.
On whether it is too early to talk to retailers, Clarke says on the contrary, negotiations should start now.
“It is not too early to talk to retailers to get their commitment. We do not construct and then ask for their commitment. Instead, we ask for their commitment and then constuct.
“This is the discipline we bring into this joint venture. Retailers like to know the position of their outlets and who their neighbours are because it helps them to plan,” says Clarke.
On the location of the mall which seems far from the city, Clarke says although it may come across as an outstation location, it is within the Greater Klang Valley.
It has great visibility as it is located at an intersection of two major highways. Secondly, it is part of a Sime Darby master planned township and is about 2km from the Salak Tinggi ERL station, he says.
He says generally, outlet centres are located some distance away from their full-priced stores.
“While this location is not a goal of ours, it nevertheless supports the visibility of our development. Being near the KLIA is not necessary a plus because people do not shop before they get on a plane or get off a plane.
“I am less concerned about the airport, but more concerned about the seven million people who live in Klang Valley and their spending habits as well as the nine million tourist and their retail spending,” he says.
Airport cities
The growth of airport shopping space seem to be the current trend with the heavy retail emphasis by KLIA and KLIA2.
While the previous emphasis used to be airport-related infrastructure with retail being a small portion of its development, the trend seems to have change today.
Malaysia Airport Holdings Bhd (MAHB) is also planning for a commercial development known as Gateway@KLIA2, which is a 70:30 joint venture between MAHB and WCT Holdings Bhd


The other commercial development is the Mitsui Outlet Park KLIA. The joint venture between MAHB and Japan’s Mitsui Fudosan will be one of the largest factory outlet shopping mall in South-East Asia with 270,000 sq ft of commercial area targetting KLIA and KLIA2 passengers and surrounding population. The airport cities development will be an ongoing project.
MAHB general manager for corporate planning, Randhill Singh says in a report: “Our new vision is to be a global creator of airport cities.”
Other airports aggressively adopting the airport cities plan are Amsterdam’s Schiphol Airport and South Korea’s Incheon International Airport.

Outlet Mall To Open In Sepang Next Year

To satisfy Malaysians fondness for shopping, an upscale outlet mall known Horizon Village Outlets (HVO) will open by mid-2018 within Serenia City, a 2,370-acre township by Sime Darby in Sepang.
Costing RM400 million, the commercial development is being jointly undertaken by local firm Mainstay Properties Sdn Bhd and US-based Horizon Group Properties, with the former owning 70 percent of the property, while the latter holds the rest.
“When HVO is completed, it will cover 23 acres and have 150 one-storey retail lots. The total net lettable area available will be 400,000 sq ft and there will be 2,000 covered parking bays,” said David Nelson, HGP’s Managing Director of international business.
“What will be unique about the outlet mall is that it will be built on a platform. We are building on a deck with parking underneath and there are six escalators and lifts to the shopping area.”
Featuring a European theme, the mall is designed like a racetrack so that the shops will be within the clients’ view when they walk through it. Its retail offerings will consist of sports and lifestyle, high-end goods, food & beverages (F&B) as well as affordable premium items.
“We will concentrate on a few different merchandise categories. We are going to do luxury and affordable luxury and I think we will be known in the market for the better quality of our merchandise mix. But it won’t be pure luxury. That’s not the right thing to do, especially in a shopping centre that’s as large as HVO.”
“People who shop at Gucci and Salvatore Ferragamo also buy Nike shoes. They buy Adidas and they eat; they buy baby strollers and clothes. So we will have sportswear and a large F&B component,” Nelson explained, adding the latter will make up about 20 percent to 25 percent of the space at HVO on a sq ft basis.
So far, the list of brands that will set-up shop at HVO include Flow, Tumi, Pedro, Godiva, Victoria’s Secret beauty and accessories, Michael Hors, Tory Burch, La Martina, Bath & Body Works, Swiss Watch Gallery, Charles & Keith, Kate Space New York and Giuseppe Zanotti Design.
HVO plans to draw in a total of 6 to 10 million customers during the first year of business, as well as generate 2,000 jobs both in the mall and during its building stage.
Founded in 1998, Michigan-based HGP is the third biggest developer and operator of outlet shopping centres in the United States. As of last year, it had 11 outlet malls with more than .5 million sq ft of retail space combined.
Meanwhile, Mainstay Holdings Sdn Bhd’s unit Mainstay Properties was incorporated in 2005, and is involved in construction, property development and real estate investment.

Outlet malls: A growing concept in Malaysia

The outlet mall concept is growing popular in Malaysia thanks to the increasing demand for retailers to put off-season merchandise in a separate channel.
An outlet store, factory outlet or factory shop is a brick and mortar or online store in which manufacturers sell their stock directly to the public, cutting out the middle-men.
Traditionally, a factory outlet was a store attached to a factory or warehouse. In modern times, outlet stores are typically manufacturer-branded store grouped together in outlet malls.
The research team at MIDF Amanah Investment Bank Bhd (MIDF Research) said these outlet malls provided a secondary platform for retailers to have better inventory management by rechannelling products and lower operating costs as well as to create brand awareness.
“Apart from that, the fashion and fashion accessories segment growth in Malaysia is quite healthy with 3.9 per cent year-onyear growth recorded in 2017 in comparison to the subdued overall Malaysia’s retail sales growth of two per cent.
“This is partly attributed to the luxury apparels and accessories segment which has experience double digit sales growth yearon- year where 85 per cent of the luxury retail sales growth was fuelled by Gen Y and Z.
“In addition, the stronger ringgit also contributed to better affordability of luxury brand.”
New government, new policies?
Policy from newly elected government, if implemented successfully should result in higher Consumer Sentiment Index.
According to the latest publication from Malaysian Institute of Economic Research (MIER), Consumer Sentiment Index in the first quarter of 2018 has improved to 91.0 from 4Q17’s 82.6 and 3Q17’s 77.1.

In addition, the newly elected government has pledged to increase consumer disposable income through initiatives such as higher minimum wages as well as the abolishment of GST.
“We also gather that current prospect of job and financial expectations has improved post-election.
“Therefore, we believe that consumer sentiment is on an upward trajectory to pass the 100 optimistic threshold level,” said MIDF Research.
Also, the projected increase in Chinese tourists will have a spilled over effect to outlet malls. Globally, consumer confidence is improving particularly in major economies such as China, US and Europe underpinned by stable job market.
For instance, China unemployment rate has touched 3.9 per cent in the previous quarter, the lowest ever recorded. Looking further into the consumer confidence index, China has breached 120 points – a level not seen for 24 years.
“This favourable atmosphere augurs well with the tourism industry as Chinese tourist represented a notablepercentage of international tourists in Malaysia,” it added.
As a result, Tourism Malaysia forecasted the number of Chinese tourists will reach eight million by the year 2020, a compound annual growth rate (CAGR) of approximately 28 per cent from the number recorded in 2017.
“We believe that the increase in Chinese tourists have a spilled over effect to outlet malls given the fact that they are located in major tourist attraction and tourists normally spent a third of their budget on shopping.
“Due to the aforementioned factors, we project that the Malaysia’s retail sales growth will recover in 2018 and to be better than the two per cent year-on-year growth recorded in 2017. This is in line with the Retail Group Malaysia (RGM)’s forecast of 4.7 per cent in 2018.

“As the prospect for Malaysia retail industry is improving going forward, we expect that it will benefit outlet malls as well.”
Presence in the peninsula
Malaysia has five outlet malls currently. The first outlet mall in Malaysia was Oriental Village in Langkawi, which opened between 10 to 15 years ago. But perhaps built ahead of its time, it did not gain traction and eventually closed down.
In 2011, Johor Premium Outlets (JPO), which is a joint venture effort between the Genting Group and Simon Property Group, was launched in Kulai, Johor. This marked a second entry of outlet mall in Malaysia and it look set for stay this time around.
Following its success, four other outlet malls were launched between 2011 and 2016 namely Mitsui Outlet Park KLIA in Sepang, Freeport A’Famosa Outlet in Malacca, Genting Premium Outlet and Design Village in Penang.
BizHive Weekly takes a snapshot of the five outlet malls currently — all populated in Peninsula Malaysia:
Genting Highlands Premium Outlets and Johor Premium Outlets
Both Genting Highlands Premium Outlets and Johor Premium Outlets are owned by Genting Simon Sdn Bhd which is a 50:50 joint venture between Genting Plantations Bhd and Simon Property Group.
The Genting Highlands outlet has gross built up area of 600,000 square feet with net lettable area of 275,000 square feet. It opened its doors to the public on June 15, 2017.
With more than 150 designers and brand name stores offering savings of up to 70 per cent, Genting Highlands Premium Outlets is currently enjoying 99 per cent occupancy rate.
“We returned from the trip feeling positive on GHPO prospect as we gather that it has achieved 99 per cent occupancy rate. There is also a potential for expansion as GHPO still has 300,000 more square feet of land,” it said in an individual report.

Horizon Village Outlets to open in mid-2018
Horizon Village Outlets is set to open in mid-2018 with confirmed tenants and brands such as Giuseppe Zanotti Design, Tumi, Swiss Watch Gallery, La Martina and Kate Space New York.
HVO is a 30:70 joint-venture project between US-based Horizon Group Properties and local outfit Mainstay Properties Sdn Bhd.
The premium outlet mall has a gross development value of RM400 million and will be located about 10km north of the KLIA and KLIA 2, and will be located in Sime Darby Bhd’s 2,370-acre township Serenia City.
When completed, Horizon Village Outlets will cover 23 acres and have 150 one-storey retail lots.
The total net lettable area available will be 400,000 sq ft and there will be 2,000 covered parking bays.

Horizon Village Outlets expects to attract 10 million visitors within a year of opening

KUALA LUMPUR (April 13): US-based Horizon Group Properties (HGP) expects the Horizon Village Outlets in Sepang, Selangor to attract 10 million visitors within 12 months after it opens in mid-2018, said its managing director of international business, David Nelson.
Spanning some 23 acres of land in Sepang, Horizon Village Outlets is a 30:70 joint-venture project between HGP and local outfit Mainstay Holdings Sdn Bhd. HGP is the third largest operator and developer of outlet shopping malls in the US. The company is currently managing over 3.5 million sq ft of retail space in outlet malls.
When completed, the premium outlet will consist of a total net lettable area of 400,000 sq ft and 150 one-storey retail lots.

The outlet has a gross development value of RM400 million. It will be about 10km north of KLIA and KLIA 2, and will be located in Sime Darby Bhd’s 2,370-acre township, Serenia City.
Nelson said that the population is about 7.74 million within a 50-minute drive radius of the outlet, based on the estimation of data from the Department of Statistics Malaysia.
“Malaysians are very enthusiastic about shopping and it is also a preferred leisure activity. So based on our experience in the US, it would not surprise me if we’re able to get 10 million people [to visit the outlet],” he told reporters at a group interview session today.
In addition, the estimated tourist arrivals in Malaysia this year is about 31.8 million, which is going to augur well for Horizon Village Outlets as it will also have tourism-based products and leisure attractions that will cater to tourists and locals alike, he said.
The piling works at the construction site have started this month. The open-air outlet mall will be built on an elevated platform and offer 2,000 parking bays when completed.
Nelson added that Horizon Village Outlets has secured slightly over 30% of tenants with a handful of renowned brands having committed, including Michael Kors, Kate Spade, La Martina, Victoria’s Secret, Giuseppe Zanotti, Tory Burch, Tumi and Swiss Watch Gallery.
HGP chairman, president and CEO Gary J Skoien added that the company is confident that the mall will achieve a 90% occupancy rate upon its opening, as the malls that the company is managing have always been able to be fully rented out. “So there is no reason that it should not be the case here too,” said Skoien.
Source :
http://www.theedgemarkets.com/article/horizon-village-outlets-expects-attract-10-million-visitors-within-year-opening

Xiamen lures bumi and Indian students

Source:
https://www.thestar.com.my/news/nation/2017/03/31/xiamen-lures-bumi-and-indian-students-xmum-offering-scholarships-for-new-intake-in-drive/

PETALING JAYA: Xiamen Univer­sity Malaysia (XMUM) is wooing bumiputra and Indian students with scholarships for its coming intake.
This university based in Sepang is the first overseas campus for China’s Xiamen University. It is ranked ninth among more than 2,000 universities in China, 37th in Asia.
Scholarships will be offered for foundation and degree courses for the 2017 intake, said XMUM’s Assoc Prof Krishnamoorthy Muthaly.
“Those with 4As and above could get scholarships of up to 100% for tuition fees,” he said.

XMUM also offers additional financial aid to deserving students.
The next intake for foundation and degree courses is April 17. The following intake will be in August for foundation and September for degree.
“Parents and students are invited to attend its open day on Saturday and Sunday (April 1 and 2), at the campus located in Sepang,” he said.​
The medium of instruction of all programmes is in English (except Chinese studies and traditional Chinese medicine).
He said XMUM’s campus hostel is at an affordable RM340 per month rental and comes with facilities such as free WiFi, attached bathroom and air conditioning.
There is also a common pantry on each floor equipped with a microwave oven, a refrigerator, a kettle and a water dispenser while laundry and car park facilities are also provided, he added.
XMUM also has a five-floor student activity centre with a canteen, a convenient shop, a gym, a table tennis room, a gymnastics room, an indoor stadium, a yoga room, a swim­­ming pool, a lounge, ATMs and prayer rooms.
A one-year foundation programme in arts and social science costs RM12,000 while a foundation in science is RM13,000.
More than 80% of the lecturers and professors are PhD holders with working experience in their fields, said Krishnamoorthy.
For more information please visit http://www.xmu.edu.my or contact 03-7610 2079.

Sleepy Hollows Wake Up - Sepang


Interest in the district of Sepang, southern Selangor, has grown over the years, thanks to major developments such as the Kuala Lumpur International Airport (KLIA), klia2, Sepang International Circuit and Mitsui Outlet Park.
And then there are ongoing developments such as KLIA Aeropolis — a 24,710-acre development surrounding KLIA and part of the Digital Free Trade Zone — which is aimed at promoting the growth of e-commerce in the country.
Several areas within the district, which is made up of the sub-districts Dengkil, Labu and Sepang, are attracting investors and homebuyers. Two such areas are Ampar Tenang and Salak Tinggi, which are part of eight planning blocks outlined in the Sepang Municipal Council Local Plan 2025.

Facts and figures
Ampar Tenang covers a total of 11,170 acres. To make development planning easier, it is separated into four small planning sections — Bandar Serenia (4,010.44 acres), Ampar Tenang (2,699.72 acres), Pekan Dengkil (2,022.18 acres) and Timah Langat (2,347.66 acres). Kota Warisan, a 600-acre township developed by Gema Padu Sdn Bhd, is located in Bandar Serenia.
There are several new developments coming up in Ampar Tenang such as Serenia City by Sime Darby Property Bhd, Sunsuria City by Sunsuria Group, KIP Sentral by KIP Group, Bandar Puteri Warisan by IOI Properties Group Bhd and Bandar Saujana KLIA by Glomac Bhd.
There will also be an outlet mall called Horizon Village Outlets (HVO) slated to open in the middle of the year. Located between Serenia City and Sunsuria City, it is a joint venture between US-based Horizon Group Properties and local property developer Mainstay Properties Sdn Bhd.
Salak Tinggi, which is the administrative centre of the Sepang district, covers 5,938 acres. It, in turn, is divided into three small planning sections — Bandar Baru Salak Tinggi (1,920.61 acres), Salak Perdana (2,181.46 acres) and Jenderam Hulu (1,835.93 acres).
The nearest residential estate to KLIA, Bandar Baru Salak Tinggi’s residents are mainly airport ground staff and crew. In Salak Perdana, Paramount Corporation Bhd has a township called Greenwoods by Paramount. The original developer of Salak Perdana was NCT United Development Sdn Bhd but it sold a portion of the land to Paramount in 2015.

Growth opportunities
Property experts note that one of the main challenges of Ampar Tenang and Salak Tinggi is that they are still relatively undeveloped, comprising mainly Malay villages and agriculture land.
“Although there are sizeable developments or townships being built, they would need population growth.
“The attraction for owner-occupiers and tenants are always growing economic activities and job opportunities, which are always linked to key mega projects that are catalysts for change in terms of infrastructure and additional amenities,” says PA International Property Consultants (KL) Sdn Bhd managing director Jerome Hong.
Ampar Tenang and Salak Tinggi look to benefit from the spillover effect from KLIA Aeropolis, which is expected to contribute RM30 billion to the country’s gross domestic product and create 56,000 jobs over a 15-year period.
“The massive airport city project, which was launched in May 2016, together with Mitsui Outlet Park and upcoming Horizon Village Outlets, will create ample job opportunities to grow Sepang’s population,” Hong adds.
KGV-Lambert Smith Hampton (M) Sdn Bhd director Anthony Chua says the area is somewhat rural as a large portion of it is under the Labu Malay Reservation. Also, there is a lack of industries there, resulting in lower population density and housing demand.
“But lately, industries have been making inroads into this locality. Hartalega purchased a large site there and constructed a glove production facility, while Gamuda IBS has also set up a manufacturing facility,” he adds.
Raine & Horne International Zaki+Partners Sdn Bhd executive director Lim Lian Hong concurs, “The main economic activity is agriculture in Ampar Tenang and Salak Tinggi. If there are no jobs, there won’t be any economic activity and the place would not be sustainable. The municipal council should look into the planning of some nice resorts or tourist attractions,” he opines.
Another challenge, according to Chua, is that potential house buyers do not consider it a desirable location owing to the limited amenities. “However, recent new developments are set to change the landscape and the introduction of better facilities is expected to draw more people,” he says.
Lim points to the area’s distance from the city centre. “But the spread of urbanisation is moving outwards and with good connectivity and public transport, people would not have any problem in staying there,” he says.
According to property experts, the buyer profile of Ampar Tenang and Salak Tinggi are mainly locals who work in KLIA, klia2, KLIA Aeropolis, Putrajaya and Cyberjaya. These people prefer to buy landed homes.
The setting up of Xiamen University Malaysia Campus in Ampar Tenang has created a rental market and Chua notes that recent developments are catering for investors and students.

Ampar Tenang’s developments
The 150-acre Xiamen University is part of the RM10 billion Sunsuria City township by Sunsuria Bhd. Sunsuria City, which sits on 525 acres, launched its first development in December 2015 and has unveiled six phases. In the second quarter this year, Sunsuria hopes to launch its latest project, Monet Springtime, a 23.2-acre residential development comprising 308 two-storey terraced homes.
Nearby, the 1,775-acre Serenia City is a freehold township development launched in 2013. Sime Darby Property has unveiled three phases of industrial and commercial developments since then. Phase 1 of Serenia Amani, which comprises 126 two-storey link homes and was launched on March 31, is sold out. Sime Darby Property plans to launch more residential products in Serenia City at the end of the year.
There are 1,462 acres of undeveloped land in Serenia City, which has an estimated gross development value of RM7.6 billion.
A short distance away, along the Putrajaya-Cyberjaya Expressway, is the RM3.6 billion Bandar Warisan Puteri @ Sepang, a 206-acre freehold township by IOI Properties.
The first and second phases, both featuring 2-storey terraced houses, were launched in October 2015 and September 2016 respectively. The third phase, Ayden, which will comprise 3-storey townhouses, is scheduled to be launched in the third quarter.
Adjacent to Bandar Warisan Puteri is the 36-acre freehold mixed-use development, KIP Sentral @ Sepang. Launched in 2012 by KIP Group, the development comprises three phases — shoplots (Phase 1), a mall (Phase 2) and small office/home office (SoHo) units and retail lots (Phase 3). All phases have been launched and KIP Mall is now open.
On the other side of the Putrajaya-Cyberjaya Expressway is the RM1.2 billion Saujana KLIA, a 239-acre freehold township by Glomac. Ten phases have been launched since 2015. The developer is planning to unveil serviced apartments in the last quarter of the year.
On EdgeProp.my, a 2-storey end-lot terraced house in Kota Warisan with a built up of 2,200 sq ft was listed for RM660,000. A 2-storey corner-lot bungalow with a built-up of 4,225 sq ft is going for RM1.9 million while a 3-storey shoplot with a built-up of 2,100 sq ft is going for RM1.325 million.

Salak Tinggi’s neighbourhoods
Of the two planning blocks, Salak Tinggi has more residential, commercial and industrial properties. Within this block lies the RM1.1 billion, 237.27-acre township Greenwoods by Paramount in Salak Perdana, where several projects have been launched.  The most recent was Keranji on March 31, when 204 units of 2-storey terraced houses were offered. All were taken up on the same day. The remaining 254 units in that phase have been opened for registration.   
Previous launches include 96 double-storey link houses in 2015 and 47 double-storey shoplots in 2017.
Transaction records (refer to table on Page 5) for Salak Tinggi provided by PA International Property Consultants show that 1-storey terraced houses with built-ups of between 764 and 885 sq ft were sold at average prices of RM158,332 in 2010 and RM370,000 in 2017.
Two-storey terraced houses with built-ups of 1,100 sq ft were transacted at average prices of RM130,571 in 2010 and RM313,333 in RM2017.
Larger 2-storey terraced houses of 1,271 to 1,397 sq ft were sold at average prices of RM151,850 in 2010 and RM335,000 in 2016.
The average transacted prices of 1-storey semi-detached houses with built-ups of 813 sq ft were RM165,000 in 2010 and RM415,000 in 2017 while those of 2-storey semidees with built-ups of 1,475 sq ft were RM281,716 in 2010 and RM515,000 in 2016.
Units in 5-storey medium-cost apartments sized from 910 to 1,008 sq ft were transacted at average prices of RM100,000 in 2010 and RM210,000 in 2017.
As for commercial shopoffices, 2-storey units with built-ups of 2,660 to 2,869 sq ft were sold at average prices of RM199,040 in 2010 and RM300,000 in 2017. Three-storey lots with built-ups of 4,184 sq ft were transacted at average prices of RM388,750 in 2010 and RM590,000 in 2016.
For 1½-storey terraced factories with built-ups of 2,743 sq ft, the average transacted prices were RM250,000 in 2010 and RM354,000 in 2016.

Positive outlook
The future of Ampar Tenang and Salak Tinggi looks promising, says KGV-Lambert’s Chua. “The area is one of the upcoming growth areas in the Klang Valley. The proposed e-commerce and logistics hub in the nearby KLIA Aeropolis, which is part of the Digital Free Trade Zone, is an exciting prospect that will spur development in the surrounding areas.”
Raine & Horne’s Lim agrees with Chua, saying that KLIA Aeropolis is going to be the driving force because it will provide plenty of job opportunities if the aerospace industry takes off.
“The area needs a real comprehensive plan and the developers there must work together. If they just develop only their side and other areas are not done properly, then they cannot generate much synergy. The worst-case scenario is — if everybody builds the same thing — they will end up competing against and killing each other. They need to find a balance.
“What I foresee is, if the airport can generate enough traffic, then possibly, the area will be able to get the economic benefits. I think in 50 years’ time, things will be different,” he says.
Hong notes that there is massive development in the southern part of Selangor, where land is still relatively cheap. “With the Kajang-Bangi-Semenyih southern corridor being a hot spot, buyers are more open to exploring new areas and, as a result, Ampar Tenang and Salak Tinggi are benefitting from the spillover effect,” he says.
Hong also points out that Xiamen University will spur population growth in the mid to longer term.
So, it comes as no surprise that the upcoming developments and the facilities and amenities surrounding the university and Horizon Village Outlets are located within close proximity.
Hong believes that the areas’ close proximity to KLIA and KLIA Aeropolis, together with the upcoming commercial hubs, will generate more commercial activities and employment in the areas.
Moreover, the KLIA Express and proposed interchange to North South Expressway Central Link Highway will improve connectivity and accessibility.
“In short, all these massive developments are expected to transform Ampar Tenang and Salak Tinggi into self-sustainable vibrant cities in the mid to longer term,” he says.
http://www.theedgemarkets.com/article/cover-story-sleepy-hollows-wake

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