News by Ben Shane Lim

THE RM1.25 billion Eastern Dispersal Link (EDL) in Johor has not been a rewarding investment for Malaysian Resources Corp Bhd (MRCB) so far. Between the lower-than-expected traffic volume and heavy debt, it has been a deadweight for the group’s balance sheet and a drag on earnings.

Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar seems to have created a shock wave by announcing the idea of having property developers apply for moneylending licences so that they can lend to homebuyers who fail to get mortgages from banks.

Both the Malaysian and Singaporean governments have sent clear signals that the high-speed rail (HSR) linking Kuala Lumpur and the city state will be a reality; it is only a matter of time. While it may be easy to identify which companies will benefit from the project, deciding when to invest is much more challenging, given that the HSR will only be completed in 2026 at the earliest.

There are still many details of the KL-Singapore high-speed rail project that need ironing out before the bilateral agreement is signed at the end of the year. But the memorandum of understanding signed last week shows that both the Malaysian and Singapore governments are now on the same page and more committed than ever to the project.

Property and infrastructure developer Malaysian Resources Corp Bhd (MRCB) is close to securing a RM700 million work package for the Damansara-Shah Alam Highway (DASH) project, say sources with knowledge of the matter.

Property stocks have gone into a tailspin as the boom years have come to an abrupt halt. Although valuations have eased, developers are still out of favour with investors because of a lack of earnings catalysts for the medium term.

The RM9 billion worth of jobs to be awarded under the third light rail transit (LRT) line project by the end of the year has been one of the bigger catalysts in the pipeline for the construction industry.

1MDB last week announced that the 60% stake in the 486-acre (197ha) piece of land was transacting at RM7.41 billion. However, CREC’s Hong Kong-listed parent, China Railway, announced that the cost was only RM5.28 billion

Meda last month announced that it was acquiring a 4.18-acre parcel in Jalan Satu, Chan Sow Lin, Kuala Lumpur, for RM180 million