Domestic demand to drive Malaysia’s air travel recovery in 2020
Demand for domestic air travel in Malaysia will recover faster from the fallout of the Covid-19 pandemic than international flights, industry executives say. However, the recovery rate is unlikely to be significant until the Movement Control Order is lifted and people feel confident about travelling again. Brendan Sobie, an aviation consultant at Sobie Aviation, says a recovery in domestic air travel will begin this year, although it will be “a very slow one until the [partial] lockdown comes to an end and confidence in travel returns”. He cites China’s domestic air travel, which showed the first signs of recovery in March after a 10-week coronavirus lockdown. However, domestic passenger numbers are still down 70% from pre-Covid-19 levels. The three major airlines in Malaysia, namely Malaysia Airlines Bhd (MAS), AirAsia Group Bhd and Malindo Airways Sdn Bhd, have resumed domestic flight operations from last month after grounding most of their planes following the MCO in March. But the international passenger market’s recovery is forecast to take longer. (The Edge)
Extending loan moratorium will benefit you, banks told
The Small and Medium Enterprises Association of Malaysia has argued that banks will benefit if the moratorium on loan repayments is extended. The organisation’s president, Michael Kang, said the extension would enable the sector to retain their employees, who would then be able to service their loans. The CMCO allows most businesses to resume operations, but Kang said the business generated would at the most come to only 30% of what SMEs used to make. “What happens to SMEs will have a domino effect on other industries and the economy.” Last Monday, the Federation of Malaysian Consumer Associations said it should be extended to the end of 2020. Kang said he would regard it as an impossibility for many SMEs to start servicing their loans in October. (Free Malaysia Today)
FCC Development shift focus to boutique housing projects
FCC Development Management Sdn Bhd is eyeing small pockets of land in Pulau Indah, Selangor as it wants to build boutique homes for owner-occupiers and investors. Managing director Fatimah Wahab Yates said the company is also looking for land, ranging between 1.2ha and 4ha in other key markets in Peninsular Malaysia. FCC is currently focusing on boutique landed development projects because of high demand in this area. “We think it is wiser and better to build fewer units under the current market conditions, and then move on to the next development,” she said. Fatimah said the concept of a boutique development is an attraction in the property market as it has a low-density ratio. “It is very private and exclusive. Charming and unique properties that have character and cachet are what people covet,” she said. (NST Online)
Rising property prices point to post-virus recovery in China
China’s new home prices rose at a slightly faster pace in April, adding to signs that the country’s property market is slowly recovering as coronavirus lockdowns are eased and the world’s second-largest economy reopens. Average new home prices in China’s 70 major cities rose 0.5% in April from the prior month, following a 0.1% increase in March, according to Reuters. On an annual basis, home prices picked up 5.1% in April, compared with March’s 5.3% rise. The stronger home prices are in line with recovery signs for real estate developers, who in April saw quickened investment and a narrower decline in sales. Nanjing, the capital city of eastern Jiangsu province, and Tangshan, in the northern Hebei province, were the top price performers last month, notching up a monthly price increase of 1.8%. Although most regions have lifted transport curbs, property sales and buyer demand remain under pressure in some cities as authorities maintained restrictions following new clusters of infections. (Free Malaysia Today)
Singapore’s circuit breaker ends on June 1; economy to reopen in three phases
Singapore’s circuit breaker will formally end on June 1, as the country gradually restarts its economy in three phases over the next several months. This will not mean a return to life as it was before the coronavirus, National Development Minister Lawrence Wong said, outlining the broad plan for the months ahead. Singapore will proceed with caution in the first phase, where many existing restrictions will continue. This phase is expected to last at least four weeks. If all goes well, it will then move into the second transitionary phase, which could spread over several months. Further easing of measures would follow in the third phase, where a “new normal’ will remain until an effective vaccine or treatment is found. Priority will be given to critical sectors and businesses that operate in settings with lower transmission risks. Singapore will also gradually reopen its borders for essential travel. However, this will be carried out separately from the three phases of restarting its economy as the global situation remains volatile. (The New Paper)
