S P Setia: Proposed zero-rated GST may boost local property market's buyer sentiment

SHAH ALAM (May 17): S P Setia Bhd said today that the Malaysian property market may see improved buyer sentiment after the government announced that the goods and services tax (GST) rate will be reduced from 6% to 0% effective June 1 this year.

Today, S P Setia president and CEO Datuk Khor Chap Jen said an immediate impact could be felt among buyers looking to purchase commercial properties, as these items will not be subject to the GST.

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"Until we see the (GST) details, we do not know how it will affect our overall construction cost, with talks of a possible re-implementation of the sales and services tax.

"Hopefully, with GST out of the way, sentiment of the public will be better and they might be more encouraged to commit to big-ticket items, such as the purchasing of houses," Khor told reporters, after S P Setia's annual general meeting here today.

At Bursa Malaysia, SP Setia shares settled at RM3.06 at 12:30pm, for a market capitalisation of RM11.79 billion. S P Setia's latest-reported net assets per share stood at RM3.07. — theedgemarkets.com

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