UEM Sunrise: Property sector to gain from economic and welfare measures

• UEM Sunrise said Malaysia recorded a 4.4% GDP growth in the first quarter, with a stronger ringgit anticipated to ease development costs, particularly for imported materials.

KUALA LUMPUR (July 23): UEM Sunrise Bhd (KL:UEMS) shared in a statement on Wednesday (July 23) that Prime Minister Datuk Seri Anwar Ibrahim’s latest address on economic growth and welfare initiatives signalled a favourable outlook for the property development sector.

The announcement of wage increases and cost-of-living relief measures, such as the Sara RM100 scheme, is expected to raise households’ disposable income and drive demand for affordable and mid-range residential properties.

In the statement, UEM Sunrise said Malaysia recorded a 4.4% GDP growth in the first quarter, with a stronger ringgit anticipated to ease development costs, particularly for imported materials.

The government’s decision to freeze toll hikes and push infrastructure development under the 13th Malaysia Plan is projected to spur demand for suburban and mid-commuter developments located 30 to 50 minutes from city centres.

Despite the positive outlook, UEM Sunrise remains mindful of margin pressures stemming from the revised minimum wage and higher vendor costs.

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