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Daily Archives: November 16, 2019

Indonesia explores economic opportunities with Labuan as it relocates capital

LABUAN, Indonesia has identified various economic and investment areas in which it can cooperate with Labuan in line with the plan to shift its capital from Jakarta to East Kalimantan.

Hot on the heels of Indonesian Defence Minister Prabowo Subianto’s two-day visit to Malaysia to forge new areas of defence cooperation, today its economic consul Rima Diah Pramudyawati paid a courtesy call on Labuan Member of Parliament Datuk Rozman Isli to exchange views and experiences on how to boost economic and investment activities between Indonesia and the federal territory.

They pledged further efforts to improve bilateral relations and stressed on enhancing cooperation to overcome challenges such as climate change and improving connectivity to facilitate future economic ties.

The consul’s visit to Labuan followed Sabah Chief Minister Datuk Seri Mohd Shafie Apdal’s working trip to East and North Kalimantan, Indonesia, last month with a view towards preparing for economic opportunities amid the development of the republic’s new capital city on Borneo island.

Datuk Rozman and I discussed trade-related issues and connectivity which is pertinent to easing the traffic flow for business matching and future investments into Labuan and vice-versa once the Indonesian capital moves to Kalimantan, Rima Diah told Bernama after the courtesy visit at Tiara Labuan Hotel.

She said they were looking at potential business ventures in the fisheries (tuna and marine life industries), education (exchange of education experts) and tourism sectors (industry players’ familiarisation trip to Labuan).

As the economic consul based at the Consulate General of Indonesia in Kota Kinabalu, I can help to facilitate any possible business matching especially between the Kalimantan industry players and their Labuan counterparts, she said.

According to Rima Diah, East and North Kalimantan are in need of future development in tandem with the plan to relocate the Indonesian capital and investors from Labuan are encouraged to foster closer business ties with their counterparts in Kalimantan.

Meanwhile, Rozman said Indonesia’s move to relocate its capital to Kalimantan would be a boon for Sabah, Sarawak and Labuan in terms of cross-border trade and investment.

Kalimantan will certainly be a new economic growth area on the world’s third largest island of Borneo. It will help enhance the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA). Therefore, Labuan, Sabah and Sarawak would benefit economically through possible business explorations, he said.

Rozman said he and the economic consul shared broader common interests and broader prospects for the economic development taking place in Labuan and Kalimantan. Pertinently, we talked about the need to have accessibility for the export and import deals between Labuan and Kalimantan, he said.

He said the relations between Labuan and Indonesia were age-old and deep-rooted and had always been friendly and cordial.

Malaysia and Indonesia have a long tradition of exchanging high-level visits on a regular basis which have contributed to strengthening and consolidating bilateral ties.

Both countries have been utilising bilateral, regional and multilateral forums to hold meetings between the leaders in order to maintain regular contacts and share views on issues of mutual interest, Rozman said.

The good relations between the two countries would pave the way for mutual understanding in the economic issues affecting both Labuan and Kalimantan, he said.

Rozman expressed hope that the Malaysian Investment Development Authority (MIDA) would provide attractive investment incentives to foreign investors, including those from Indonesia, to invest in Labuan.

Source: BERNAMA (News Agency)

Singapore-listed Nam Cheong to build shipyard in Labuan

LABUAN, Kiamsam is poised to be a new economic growth catalyst for Labuan as Malaysia’s largest offshore support vessel (OSV) builder Nam Cheong Dockyard Sdn Bhd will invest RM60 million to turn the existing Labuan Halal Hub Complex there into a shipyard.

Federal Territories Minister Khalid Abdul Samad said the new shipbuilding sector was expected to generate employment for more than 1,500 people and help produce skilled workers over the long run through a training centre to be built at the complex.

It is an initiative from Labuan Corporation, which tendered out the complex to potential bidders through a request for proposals (RFP) in June this year and Nam Cheong had given us the better RFP, he said.

He was speaking to reporters after witnessing the signing of a memorandum of understanding (MoU) between Labuan Corporation and Kuala Lumpur-headquartered Nam Cheong Dockyard for Nam Cheong to take over the 7.3-hectare complex and a briefing from Nam Cheong chief executive officer Leong Seng Keat.

A definitive agreement is expected to be inked by year-end.

Nam Cheong Dockyard, the principal operating subsidiary of Singapore-listed Nam Cheong Ltd, will move its existing fabrication and ship building-related activities in Batam, Indonesia, and China to Labuan beginning Jan 1 next year.

Khalid said the Labuan Halal Hub Complex, with its existing warehouse facilities as well as logistic support, is located by the seaside and is strategically positioned for a shipbuilding industry.

Nam Cheong, being a Malaysian company with a global reputation in shipbuilding, should be given the chance to relocate its business activities to Labuan.

We hope it will help to improve the local economy and the people’s wellbeing, as this (shipbuilding) sector will come alongside Labuan’s heavily-depended-on oil and gas sector, he said.

Source: BERNAMA (News Agency)

DPUKM inks MoU to bring Malaysian products worth 20 mln RMB to China

CHANGSHA (China), The Malaysian Small Entrepreneurs Chamber of Commerce (DPUKM) today signed a memorandum of understanding (MoU) with one of China’s leading hypermarkets, E-Fresh Food Corporation Ltd, for the sale of 20 million renminbi (about RM12 million) worth of products from Malaysia every month.

DPUKM president Datuk Seri Abu Hasan Mohd Nor said the MoU would enable a range of Malaysian products to enter the China market through E-Fresh outlets.

”We hope the cooperation with E-Fresh would spur the introduction of more Malaysian products in the country,” he told reporters after the MoU signing at the 2019 One Town One Product International Commodity Fair (OTOP) here.

It was signed by E-Fresh chairman Arthur Pan and Abu Hasan, witnessed by Tekun Nasional deputy chief executive officer (management and corporate) Roshaimi Harun.

Abu Hasan said under the MoU, 200 types of Malaysian products from 20 companies will enter China every month.

Pan said: We have chosen Malaysian-made products especially durian-based food products, beverages and others because many people in China find them interesting, easy to prepare and appetising.

He said in December, a group of Malaysian entrepreneurs will be brought to E-Fresh’s newest outlet in Wenzhou to see E-Fresh’s marketing operations.

Some 2,000 entrepreneurs and exhibitors from around the world are taking part in the fair being held at the Changsha International Convention and Exhibition Centre from Nov 15 to 19.

Source: BERNAMA (News Agency)

MED eyes 45 pct SME contribution to GDP in 5 years

ALOR GAJAH, The Ministry of Entrepreneur Development (MED) aims to raise the contribution of small and medium enterprises (SMEs) to gross domestic product to 45 per cent from 38.3 per cent currently within five years with the implementation of the National Entrepreneurship Policy 2030 (NEP 2030) this year.

Minister Datuk Seri Mohd Redzuan Yusof said for 2030, the target is to further raise the GDP contribution to 50 per cent.

“At the ministry level, we provide assistance, guidance and training to SME entrepreneurs, and help them understand the NEP 2030 so that this objective can be achieved, he told reporters after opening a state-level cooperative entrepreneurship carnival here today.

Also present were state Agriculture, Agro-based, Entrepreneur Development and Cooperatives Committee chairman Datuk Norhizam Hassan Baktee and the ministry’s deputy secretary-general Muhammad Razman Abu Samah.

The carnival, a programme under the Melaka branch of the Cooperatives Commission of Malaysia (CCM), features 46 booths, including 38 by entrepreneurs and cooperatives and eight by the ministry’s agencies.

Mohd Redzuan said his ministry is prepared to help manufacturers of Malaysian halal products penetrate international markets especially Japan at the 2020 Tokyo Olympics Games.

The NEP 2030, launched by Prime Minister Tun Dr Mahathir Mohamad, outlines seven core thrusts, including generating new growth sectors, improving the labour market, and enhancing social wellbeing and social capital.

“We have obtained the Japanese government’s agreement on the halal market to be penetrated at the Games where 40 million visitors are expected, he said, noting that 20 Malaysian entrepreneurs have registered for the mission to Japan, including four anchor entrepreneurs entrusted with marketing Malaysian halal products.

Source: BERNAMA (News Agency)

Madison Realty Capital Provides $48 Million First Mortgage Loan For Office Development in Manhattan’s East Village

Senior loan is part of a $79.1 million financing that fully capitalizes a 10-story boutique mixed-use office development at 3 St. Mark’s Place  

NEW YORK, Nov. 15, 2019 (GLOBE NEWSWIRE) — Madison Realty Capital (MRC) has provided a $48.0 million senior loan for the funding of a $79.1 million financing package for the development of a mixed-use office project at 3 St. Mark’s Place in Manhattan’s East Village neighborhood.

Hana Financial Group, a leading South Korean financial services company, provided Real Estate Equities Corporation (REEC), an experienced local developer with an additional $31.1 million of mezzanine financing to fully capitalize the project.

“Hana approached us to provide the first mortgage loan on this financing package in order to leverage our strong construction lending program and market expertise,” said Josh Zegen, co-founder and managing principal of MRC. “Our intimate knowledge of the national lending landscape allows us to partner with global financial institutions deploying capital into the US. We provide our expertise in complex structuring, due diligence and quick execution, in addition to on-going servicing and asset management.”

REEC’s development plans call for a 10-story, 68,224-square-foot modern boutique office building with eight floors of office space, a fitness center, roof deck, and 7,886 square feet of retail. REEC entered into a 99-year ground lease for the property in 2017.

“We are very familiar with this sponsor given their excellent reputation and successful execution of similar boutique mixed-use projects in Manhattan,” Zegen added. “We are pleased to be financing this high-quality office property and that we were able to close in a timely manner to meet the needs of the borrower.”

The property is well-located at the corner of St. Mark’s Place and 3rd Avenue in a section of Manhattan’s East Village that has seen significant growth in demand for quality office space from a mix of tech, finance, law, and family office tenants in recent years.

The site is adjacent to 51 Astor Place, a 400,000-square-foot office and retail asset developed by Minskoff Equities that is home to anchor tenants IBM Watson and St. John’s University, in addition to a strong retail roster that includes Shake Shack, Flywheel, Bluestone Lane and Orange Theory. The property is within walking distance to New York University, Washington Square Park and the R, W, 6 and L subway trains.

“This a prime location for both tech tenants seeking a full-building identity and boutique financial services firms in search of well amenitized, Class-A product outside of Midtown but proximate to transit,” Zegen added. “We’re excited by the increased demand for this type of product and are confident that the asset is well-positioned to capitalize on the continued growth of this submarket.”

About Madison Realty Capital

Madison Realty Capital (MRC) is a New York City-based real estate private equity firm focused on debt and equity investment strategies. Founded in 2004, MRC has closed on approximately $11 billion of transactions in the multifamily, retail, office, industrial and hotel sectors. The firm manages investments in the United States on behalf of a global investor base. MRC is a fully integrated firm with over 60 employees across all real estate investment, development, and property management disciplines. Among other industry recognitions, MRC has been named to the Commercial Observer’s prestigious “Power 100” list of New York City real estate players and is consistently cited as one of the industry’s top construction lenders.

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