KUALA LUMPUR, 26 April 2020:
Real estate industry experts feel that Covid-19 and the movement control order (MCO) offer a great opportunity for Malaysians to purchase residential properties.
This is because developers are offering more attractive packages – including additional discounts, rebates and furnishing – to attract buyers, said Hartamas Real Estate Group founder and group managing director Eric Lim.
“I believe that the nation’s current economic situation is in a much better position, compared to the 2008 Asian Financial Crisis and our banks are much stronger and well capitalised now.
“Many large firms and public limited companies are into liquidity financing rather than being dependent on bank borrowings,” he said in a statement.
Lim said many developers are also seeking for joint ventures with landowners, making them much more manageable in times of crisis.
Impetus Alliance chief executive officer and managing director Datuk Seri Michael Yam said the situation now is also a golden opportunity for developers to relook the market and expand their capacity.
He expressed hope the government would continue the Home Ownership Programme to spur the real estate market and property buyers.
Axis REIT Managers Bhd director Stephan Tew said banks are now playing a more proactive role by offering stimulus packages and loan deferments to help business owners and individuals during this time of crisis.
“The different economic sectors are affected differently and the key is to understand which sectors would be affected badly. Based on experience, small business owners, especially those whose earnings are based on hand-to-mouth basis are the ones that are likely to be the worst affected.”
Lim, Yam and Tew shared their insights on the real estate market outlook amid Covid-19 and the MCO on the MIEA Hope Programme webinar series organised by the Malaysian Institute of Estate Agents (MIEA).
MIEA will continue the programme through its Facebook platforms and Zoom every day at 10am and 3pm to help members improve their professionalism and overcome possible obstacles during and post MCO.
Meanwhile, small medium enterprises (SMEs) in Labuan have begun feeling the pinch from the MCO, forecasting a massive rental debt in the coming months.
They said the most of the SMEs on the island are still renting government-owned premises and land to carry out business activities.
Labuan was declared a federal territory in 1984 and was subsequently granted the status of Malaysia’s international business and financial centre in 1996.
Labuan Chamber of Malay Entrepreneurs president Datuk Seri Mohd Alias Abd Rahman said the rental waiver on government properties the MCO does not extend to Labuan, leaving SMEs on the island in a quandary.
He said they were worries whether they could continue to pay the monthly rentals imposed by the local authority of Labuan Corporation.
“We have been told that some operators are may have to close shops, especially those with shrinking cash flow, as we recorded zero transaction since the MCO was enforced. Our companies are not generating any revenue as we still obey the order.”
Under the Prihatin Rakyat Economic Stimulus Package, unveiled on March 27, SMEs renting federal government-owned premises – which include all premises owned by its agencies and statutory bodies of the government nationwide – are entitled to a six-month rental waiver.
The six-month rental exemption for canteens, cafeterias, convenience stores and other outlets operating in federal government buildings will involve costs of about RM20 million.
Alias said some SMEs are already facing cash flow problems and in dire need of assistance to avert closure as this relief had not been extended to Labuan “even though our businesses are also badly affected by the MCO”.
“And we hope the Labuan Corporation, which is under the Federal Territories Ministry, will look at our predicament.”
Labuan Chinese Chamber of Commerce president Datuk Wong Kii Yii said Wong said the chamber anticipates several financial issues cropping up, including closure of businesses and a surge in unemployment rate.
“When the government announces the six-month moratorium on loan repayments and restructuring of outstanding credit card following Covid-19 involving at least RM100 billion, it was also pertinent to look at the predicament of employers and business owners in Labuan.”
Wong does not rule out the possibility of employers on the island imposing a hiring freeze, reducing the number of workers and cutting the monthly salaries if the pandemic worsens.
– Bernama