Restart MM2H to stimulate the market - Glomac

PETALING JAYA (Oct 26): The government should resume the Malaysia My Second Home (MM2H) programme with attractive measures to draw foreign investors’ attention to Malaysia as a catalyst to local property market, urged Glomac Bhd group managing director and CEO Datuk Seri Fateh Iskandar Mohamed Mansor.

In a virtual press conference after the developer's 36th Annual General Meeting (AGM), Fateh said it is rather unfortunate for the MM2H programme to be suspended as it brought in foreign property investments.

"With that, I would like to see the foreign purchasing threshold standardised. Most states are not following the current threshold of RM600,000. I suggest the government standardise it to about RM600,000 or RM700,000," said Fateh.

He highlighted that foreign homeownership only accounts for no more than 2% of total homeownerships in the country, way lower than those seen in Singapore and Dubai which are about 35% and 49% respectively.

"And the lowered threshold is not going to be a permanent fixture. Perhaps maintain it for a year until December 2021 to spur the market again," stressed Fateh.

Additionally, Fateh said the government should consider reintroducing homeownership grants for not only first-time homebuyers (akin to the MyHome scheme) but also to first-time home upgraders as well.

As for financial performance, Fateh noted that the sales target for the financial year ending April 30, 2021 (FY21) is still an ongoing target. "There were hardly any sales during the first one to two months due to the movement control order (MCO). We are still reviewing [the sales target], as sales have picked up from July to September.

"The current conditional MCO in the Klang Valley has once again affected footfall to our sales galleries. Thus, we will come up with a more reliable target once the CMCO is over," he said, adding that despite Glomac's strong online presence, many people still prefer to visit show units and sale galleries.

Glomac recorded a profit-before-tax of RM44.8 million and a revenue of RM246 million as of financial year ending April 2020 (FY20). Sales and unbilled sales stood at RM285 million and RM650 million respectively during the same period.

For the first quarter of FY21, sales doubled to RM50 million year-on-year mainly driven by sustained demand for residential phases at Saujana Perdana, Sungai Buloh and 121 Residences in Petaling Jaya.

Glomac will be planning for RM403 million worth of new launches for FY21 with the bulk of the launches comprising new phases of affordable landed properties at its townships Saujana Perdana, Saujana KLIA and Saujana Jaya, Johor.

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