Property developers seen revising sales, launch targets
Hong Leong Investment Bank Bhd (HLIB) said it sees the likelihood of property developers in Malaysia revising sales and launch value targets as the Covid-19 pandemic takes its toll on the broader economy. HLIB analyst Andrew Lim Ken-Wern said that as the outbreak takes its toll on the broader economy, 2020 may record a dip in property transaction volume if developers do not maintain sufficient discounts to entice buyers. “The lower interest rate environment would improve the affordability for home buyers but may not spur sufficient demand for the market. We lower our GDV launch estimates and raise our RNAV (revalued net asset value) discounts by 5%-10% to reflect the halt in operations during the MCO period alongside potential pushbacks in planned launches,” he said. Despite the economic headwinds, the Malaysian property market is expected to remain resilient in 2020, according to the Valuation and Property Services Department Malaysia’s latest property report. It said affordable housing and finding the right solutions to the property overhang will continue to be the main agenda of the government. (The Edge)
Trade, industry bodies urge all states to restart economic activities
Trade chambers and industry associations have declared “full support” for the government’s decision to allow most economic sectors and business activities to resume operations from last Monday. In a joint statement, presidents and chairmen representing 59 chambers of commerce and industry associations, shared the conviction that the move is critical for business operations to return to normalcy. They urged all state governments to collectively execute the federal government’s decision and restart the economy together, given the close interlinking of supply chains among states. “The decision was made to prevent the economy from further collapse as companies can no longer afford to remain closed while they continue to have financial obligations to meet, especially salaries, and continue to provide employment for their workers, which translate into safeguarding the livelihood of the rakyat,” they said. (NST Online)
IBS technology can reduce COVID-19 outbreak in construction sites – Fadillah
The use of the Industrialised Building System (IBS) technology is seen as the best way to reduce the risk of COVID-19 outbreak in the construction sector, said Senior Minister (Infrastructure Cluster) Datuk Seri Fadillah Yusof. He said the use of the IBS technology could also reduce manpower, especially that of less-skilled labour, as construction components were manufactured directly in factories. “For the duration of the MCO (Movement Control Order), we encouraged the use of IBS to control the labour force at construction sites. Apart from that, it also increases the safety and health levels of the workers,” he said. He also said that they would continue to ensure that all workers and employers complied with the standard operating procedure (SOP) set by the government, especially on conducting health screening tests, following the spread of COVID-19. (Bernama)
Practice SOP at construction sites during CMCO, says Rehda
Rehda Malaysia is calling on developers and construction companies to fully abide by the standard operating procedure (SOP) for the construction industry when operating under the conditional movement control order (CMCO) phase 5. Malaysia has moved to the fifth phase of the MCO, a week before it was supposed to end on May 12. Rehda advises developers and contractors to take extra precautionary measures during the CMCO period to break the chain in containing the spread of the pandemic. Its president Datuk Soam Heng Choon said given that developers and contractors both have contractual obligations that must be met, lifting these restrictions reduce the worries of all stakeholders. Soam said people are living in an unprecedented period and the adoption of these measures is part of the new normal at workplaces. He said Rehda has also been engaging with the government on measures to protect and invigorate the property industry post-MCO. (NST Online)
US COVID-19 Cases top 1.2 million – Johns Hopkins University
The number of COVID-19 cases in the United States reached 1,201,337 as of Tuesday, reported Xinhua news agency, according to the Center for Systems Science and Engineering (CSSE) at Johns Hopkins University. Meanwhile, the death toll from the disease in the country hit 70,646. New York remains the hardest-hit state, with 321,192 cases and 25,073 deaths, followed by New Jersey with 130,593 cases and 8,244 deaths. Other states with over 50,000 cases include Massachusetts, Illinois, California, and Pennsylvania, according to the CSSE. (Bernama)
