KUALA LUMPUR: The government has to tread with caution in the implementation of the 10th Malaysia Plan (10MP), said investment analysts.
One analyst contacted believe that implementation of projects such as the development of governments lands in Kuala Lumpur will revitalize the city's property sector.
ECM Libra Group head of research Bernard Ching told theedgeproperty.com, that the proposals under the 10th Malaysia Plan (10MP) are generally positive for the city's property sector as it will turn the city into a modern metropolis.“However, existing efforts have been on the supply side of the equation. Much would need to be done on the demand side as well, or the property sector would probably experience an oversupply situation,” he warned.
Ching added that the implementation of a Mass Rapid Transit (MRT) in Kuala Lumpur is laudable: “It will boost property demand in the city centre. While KL has some world-class skyscrapers, it still lacks a modern public transportation system such as those seen in Hong Kong, Japan and Singapore.”Meanwhile, Yeonzon Yeow, head of research at Kenanga Investment Bank however said a lot of money is being spent on what were already in previous Malaysia Plans such as transportation and power. "The difference now is that the risk is increasing. Cost is higher, and you are doing projects that are increasingly less economically viable right from the start,” said Yeow.
He added that at the although the 10MP looks like a good plan overall, it all comes down to implementation at the end of the day. He said the lack of resolve to execute the 10MP can hinder its success.
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