KUALA LUMPUR: Resolving the labour issues in the country this year will help the property market to pick up its momentum moving forward after having faced the labour crunch since the COVID-19 pandemic.
Sime Darby Property Bhd's (SDP) group managing director Datuk Azmir Merican said the group is positive that it would overcome challenges as the property market is hopeful for growth next year.
“I think the market will grow in tandem with the overall Malaysian economy.
“We are optimistic that we can face and overcome the challenges because every developer is looking at 2024 as a growth year,“ Azmir said at the group’s virtual media briefing on its nine months (9M) financial year 2023 (FY2023) results today.
Azmir said that among the challenges for SDP and property developers with large projects are high prices on raw materials which would disrupt the ability of the group to predict and forecast its margins.
He also acknowledged the pressure the group may face with the weakening of the ringgit and the revised interest rates by financial institutions.
Elaborating on the matter, he said most contractors were careful amid the rising cost of materials such as cement and have to price their products correctly and competitively, which is the biggest pressure.
“One of the things we pivoted on is to launch more industrial products which are simpler and the margins are better.
“Besides, we are also investing in the future where we are going to build a recurring income. In doing so, we have to reorganise and realign our business, but we are also confident that we are able to execute our plans,” said Azmir.
In terms of sales, Azmir said it has been resilient given the good locations and good infrastructure that it provides to ensure its townships are livable and the environment meets the expectations of customers.
“Overall, we are happy with the strong nine-month (9M FY2023) results in which our revenue increasing by 36 per cent and profit after tax and minority interest (PATAMI) by 30 per cent to RM276.7 million from RM212.69 million, and we are optimistic as we go towards the end of 4Q 2023,” Azmir added.
In the 9M FY2023, Sime Darby Property diversified its product offerings to enhance its market presence and launched products worth RM3.2 billion in gross development value spreading across residential landed, residential high-rise and the industrial segments.
-- Bernama
