The Budget 2020 is expected to be growth-focused, people-centric and confidence driven. Additionally, wishes for the government to take steps to ensure the creation of affordable homes in places people want to live is highly stressed by industry experts.
“With threats of a global recession knocking on the doors of many advanced economies, the trade war disrupting exports, the rising cost of living, and income supplements for B40 households, this is perhaps the most important budget in several years,” said Shan Saeed, IQI Global chief economist.
“The real test for Budget 2020 will be how the government addresses these vital issues while also maintaining fiscal discipline,” he added as in reported Borneo Post citing Juwai.com and IQI Global.
He also suggested that the general theme must be to maintain solid macro fundamentals that will allow Malaysia to remain on the radar of global investors in the long term.
“We hope the government will continue to maintain a prudent monetary policy, propel the current good economic trajectory, and bolster business sentiment at the macro-level.”
“We also hope that the government will propose structural reforms to pass on the benefits of economic growth to the public in general. Establishing a stronger balance sheet, solid fiscal side, and healthy current account surplus should be on the government’s agenda.”
“The data shows that a significant number of unsold units are priced affordably, but too often they are located out of the city centre. Malaysia has a growing urban population. Our young adults want to buy a home in established areas that are well connected to public transportation,” he explained.
Georg Chmiel, Juwai.com’s Executive Chairman, meanwhile, praised the government’s desire to sell the unsold residential units valued at above RM1 million to foreigners.
He noted this as a good move, since there is a steady increase in demand from Hong Kong buyers willing to invest in Malaysian property.
“Our data shows that Malaysia is the number-one destination for buyers from Hong Kong. Data from NAPIC has shown that there are 4,213 unsold units priced above RM1 million, accounting for 12.8 percent of unsold supply,” he said.
“The Malaysia My Second Home Program, affordable standards of living, high quality of life, medical facilities and accessible educational institutions, all contribute to the country’s appeal.”
Aside from the protests, astronomical real estate prices in Hong Kong are forcing residents and buyers to look elsewhere for residential properties. Chmiel believes that this favours Malaysia.
“By buying in Malaysia they create local economic growth and jobs for Malaysians. They would open businesses, pay local taxes and fees, spend money in local stores and restaurants, and boost the tourism industry,” said Chmiel.
“It is all very good for Malaysia. If we can showcase these properties for them to purchase and have a faster approval process on the scheme, the number of overhang properties can be reduced.”