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PETALING JAYA: Malaysian Resources Corp Bhd’s (MRCB) project pipeline is expected to start materialising in 2024 as the group benefits from better project pipeline visibility and value unlocking initiatives, says Hong Leong Investment Bank (HLIB) Research.
The research house said the construction and property group’s pipeline visibility is strong, anchored by projects such as the Light Rail Transit Three (LRT 3) phase two, and the redevelopment of Shah Alam Stadium and KL Sentral.
As MRCB’s pipeline is estimated to be formalised in 2024, HLIB Research noted the lowest hanging fruit could be the reinstated scopes of the LRT 3 phase two.
This was judged based on its targeted operations timeline of the second quarter of calendar year 2027 for phase two, in which the research house reckons formalisation of the enlarged scope will happen soon.
HLIB Research noted the move would add more than RM1.5bil to MRCB’s active order book of RM1.5bil, as at end-September 2023.
The Shah Alam Stadium redevelopment, worth some RM1bil, will likely be split into several phases to aid land monetisation with demolition phase expected to commence in 2024 and reach completion by mid-2025.
HLIB Research noted other higher value phases will commence post-demolition, which is expected by the second half of 2025.
The progress timeline of the project is rather fluid and could remain so considering 100% land consideration.
“The commercial viability of proposed land parcels will have to be considered prior to finalisation,” the research house added.
On a brighter note, MRCB has continued to benefit from its track record with KL Sentral, where it was the transit-oriented development or TOD developer of the project.
HLIB Research estimates that MRCB’s appointment as the contractor for the rejuvenation of KL Sentral will be formalised by midyear and based on previous guidance, it could add about less than RM1bil to MRCB’s order book.
Due to KL Sentral’s overcapacity situation and need for expansion, MRCB was chosen as the contractor for its revitalisation last year. Development rights over KL Sentral’s airspace will be provided to MRCB as part of this proposal.
HLIB Research stated that in order to augment fare revenue, the consortium will need to work out an equity participation structure in addition to various non-fare revenue streams including property and media rights.
As for MRCB’s property projects, launches worth RM4bil are slated for financial year 2024, with sales target standing at RM800mil, driven mainly by domestic projects. HLIB Research maintained a “buy” call on MRCB with a higher sum-of-part driven target price of 70 sen per share, after increasing construction target price earnings multiple to 16 times.

MEGA project HSR RTS ECRL MRT Property & construction beneficiary Mrcb ,Minetec , Uems ,suncon ,wct ,gamuda , YTL , Ekovest

MEGA project HSR RTS ECRL MRT Property & construction beneficiary Mrcb ,Minetec , Uems ,suncon ,wct ,gamuda , YTL , Ekovest

MEGA project HSR RTS ECRL MRT Property & construction beneficiary Mrcb ,Minetec , Uems ,suncon ,wct ,gamuda , YTL , Ekovest

MEGA project HSR RTS ECRL MRT Property & construction beneficiary Mrcb ,Minetec , Uems ,suncon ,wct ,gamuda , YTL , Ekovest

MEGA project HSR RTS ECRL MRT Property & construction beneficiary Mrcb ,Minetec , Uems ,suncon ,wct ,gamuda , YTL , Ekovest

MEGA project HSR RTS ECRL MRT Property & construction beneficiary Mrcb ,Minetec , Uems ,suncon ,wct ,gamuda , YTL , Ekovest

Earlier, both ministers held a bilateral meeting at Menara JLand here today and discussed, among other things, the resumption the Kuala Lumpur-Singapore High Speed Rail (HSR) project and enhancing the transportation connectivity via sea and land between both countries.Loke earlier raised the possibility of a ferry service and additional KTM Tebrau shuttle services.The RTS Link will connect Bukit Chagar in Johor Baru to Woodlands in Singapore, serving about 10,000 passengers per hour each way.It aims to ease the current traffic congestion on the Johor Causeway.The RTS Link will connect to a viaduct 25 metre above the Tebrau Straits, bridging the Woodlands North station in Singapore to the Bukit Chagar station in Johor Baru.

the project is still on track and Malaysia remains fully committed to the delivery of RTS Link, commended the progress on the project, and said construction on his country’s side passed the 45-per cent mark in March, with work on the foundations for the viaduct piers set to be completed by the first quarter of 2024. We (Singapore) look forward to be ready and on time for commencing passenger services by the end of 2026,”

Loke said most of the target milestones have been achieved, and as of April 30, the overall progress of the railway infrastructure was 36 per cent.For the marine viaduct portion, where we are visiting today, the actual progress is 30 per cent where construction has started on the ground.We are on track to meet the target milestones,” said Loke in a joint press conference with Iswaran after a RTS Link site visit in Stulang Laut here today.

In a maiden joint visit of the project today with Singaporean counterpart, S. Iswaran, Loke said construction was proceeding at a satisfactory rate and on track to start operations by end 2026, in line with the bilateral agreement signed in 2018.

Transport Minister Anthony Loke said the Johor Baru-Singapore Rapid Transit System (RTS) Link would be “life-changing” for families in both countries, pledging to make it his priority to ensure the project proceeded on time.

Datuk Seri Azmi Abdul Aziz, CEO of YTL Construction (Rail Division), said the briefing was very well prepared, with proper and relevant references from all over the world.

the government is appearing to target a model that is entirely funded by the private sector, it remained to be seen whether the private sector could bear the costs. Meanwhile, transport consultant Rosli Khan said the project, although very ambitious, was not feasible. Cost of borrowing, interest charges, exchange rates and other associated costs will be high. My calculations do not generate positive numbers, so I can’t see positive returns on investment

Wan Agyl said the concept of a PPP transcended monetary contributions and was a strategic alliance that sought to harmonise the strengths of both public and private entities.Even when the financial onus is entirely on the private sector, the public sector remains an invaluable stakeholder. It often steps in to streamline processes like land acquisition, obtaining regulatory permissions, assuring potential revenue streams or alleviating certain associated risks

When contacted, a MyHSR spokesman said the PPP for the project could take different forms depending on the level of the government’s contribution towards project cost.In this sense, PPPs can be fully privately funded if the projected revenue collection over the concession period exceeds the total project cost and profit margin on a net present value basis

MyHSR Corporation Sdn Bhd said the project could be funded fully by the private sector, despite being developed and operated through a public-private partnership (PPP).

Historical precedents, including the Putra LRT in Malaysia, show that relying solely on private sector funding for such projects can lead to financial difficulties that necessitate government intervention. So a fully private-funded model appears to be impractical and high risk,” the former land public transport commission (SPAD) official told

The Kuala Lumpur-Singapore high-speed rail (HSR) project cannot be funded entirely by the private sector as the high levels of capital investment required make such an endeavour unfeasible, transport experts said.

Should renewable energy become an economic driver for the Johor state in the upcoming years, there is potential for economic collaboration between Johor and Singapore that results in a positive spillover to the Iskandar property market given low property prices and the standstill demand situation that lasted over six to seven years

Johor was the top state for foreign direct investment inflow with RM70.6 billion in 2022, representing 27% of the total.

Malaysian Investment Development Authority (Mida), Malaysia has attracted RM264.6 billion in approved investments, manufacturing and primary sectors in 2022, which is 14.5% lower than 2021 figures.

Johor’s data centre investments alone contributed RM51.1 billion in 2022 and that the state sees RM17 billion worth of new investments in 2024.

Apart from that, rentals for condominiums in Singapore grew 32% annually in the first quarter of 2023, while the government has also imposed a steeper stamp duty starting April.

RHB research maintained overweight call on the Iskandar property market, with buy ratings on UEM Sunrise at a target price (TP) of 70 sen, IOI Properties at a TP of RM1.46 and Matrix Concepts at a TP of RM1.75, as cross-border traffic is expected to increase due to the completion of Johor Bahru-Singapore Rapid Transit System (RTS) in 2026 and the KL-Singapore high speed rail (HSR) in 2033.

This is on par with the average prices of condominiums in the KLCC area. A visit during the night shows that many residential units located near the station are well lighted up. In years to come when the connectivity is enhanced and more buildings are tenanted, JB city centre will likely expand."

There are circa 11 projects surrounding the RTS station at Bukit Chagar going at an average selling price of RM1,000-RM1,300 psf

Although none of the listed developers have projects in the Johor Baru (JB) city centre, the overall Iskandar property market is expected to benefit from the return of property investors and buyers, both local and foreigners. This will further be boosted by increased spending from visitors from Singapore as well as the revival of the KL-Singapore HSR project

Since we last visited in 2019, we feel that the momentum has picked up in Johor, especially in areas surrounding the RTS (rapid transit system) station at Bukit Chagar

According to previous reports, more than 20,000 units have been sold as at 2019.

RHB Research is growing more positive on the prospects of the Iskandar Malaysia property market in Johor, as it believes that the market has moved past the "Forest City scare" or supply glut from the massive mixed-use development, thanks to incoming infrastructure developments.

Widad Business Group it will hold a 40% stake in the project, while TNB will hold 60%.

The project will be carried out by TPGSB, in collaboration with Widad Business Group Sdn Bhd a subsidiary of Widad Group Bhd and is scheduled for commercial operations in 2031.

LOI was awarded by the Ministry of Energy and Natural Resources to TNB’s wholly-owned unit TNB Power Generation Sdn Bhd (TPGSB)

LOI was awarded by the Ministry of Energy and Natural Resources to TNB’s wholly-owned unit TNB Power Generation Sdn Bhd (TPGSB), said TNB without disclosing the amount of the project.

Tenaga Nasional Bhd that it has received a letter of intent (LOI) for the development of a 2,100 megawatt (MW) combined cycle power plant in Kapar.

benefit from long-term recurring income via FBG’s existing renewable energy power purchase agreement with Tenaga Nasional Bhd. The agreement, which is effective for 16 years until March 2034, enables FBG to supply power to the national grid.

KAB said FBG, a wholly-owned subsidiary of Future NRG Sdn Bhd, owns a biogas power plant in Kedah with an installed capacity of 2.4 megawatt.

Engineering and energy solutions provider Kejuruteraan Asastera Bhd (KAB) is expanding its sustainable energy solutions (SES) segment through the proposed acquisition of the entire equity of Future Biomass Gasification Sdn Bhd (FBG) for RM15 million.

The group is targeting to complete and commission the plant on or before May 11, 2027, envisaging a potential revenue of RM53.09 million to the group over a span of 21 years based on the FiT rate of 24.61 sen per kilowatt hour and [an] estimated annual production of 10.27 gigawatt hours of electricity to be generated from the plant

KHRE was granted in May this year the feed-in approval by the Sustainable Energy Development Authority Malaysia for a two-megawatt high-head mini hydro water plant in Sungai Geroh, Perak.

Reppa was inked via G Capital's 74.64%-owned subsidiary Hydro R E Sdn Bhd (KHRE). Under the deal, TNB will buy electricity from KHRE at a feed-in-tariff (FiT) rate of 24.61 sen per kilowatt hour. Reppa's tenure will start from the commercial operation date, which is scheduled to be May 11, 2027.

G Capital Bhd has entered into a 21-year renewable energy power purchase agreement (Reppa) with Tenaga Nasional Bhd (TNB).

With these contracts, Reservoir Link’s order book for the solar renewable segment increased to RM51.5 million. These projects which primarily involve the development of solar energy-related facilities in Kuala Lumpur, Selangor and Perak are targeted to be completed between end-2022 and mid-2023.

Reservoir Link Energy Bhd’s 51%-owned subsidiary Founder Energy Sdn Bhd has won five solar contracts between October and November this year, with a combined value of RM12.05 million.

Gamuda recently revealed his plan to acquire a 30% stake in solar firm ERS Energy Sdn Bhd for RM200 million. The group has also earmarked RM2 billion for investment in renewable energy over the next five financial years to capitalise on growing demand in the segment.

Cypark recently announced the postponement of the operational date for two renewable energy projects.
Its 100 MW floating solar plant in Pasir Mas, Kelantan is now scheduled to begin operations in May 2023, after three postponements from its initial deadline of December 2021.the operational date for its 20 MW solid waste modular advance recovery and treatment waste-to-energy plant in Ladang Tanah Merah, Negeri Sembilan has been deferred until November, from September previously. It is unclear if the project has achieved commercial start-up.

The second is a 1.5 MW plant in Kemaman, Terengganu awarded to BACRE Reviva Biogas (Kemaman) Sdn Bhd, which is 80%-owned by BACRE Reviva Biogas Holdings Sdn Bhd, which in turn is an indirect 51% subsidiary of Cypark.

The first biogas project comprises a 1.2 MW installed capacity biogas plant in Layang-Layang, Johor, which was awarded to Cypark's 51% indirectly owned Reviva BACRE (Ulu Remis) Sdn Bhd.