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PMX Speech on Economic Growth and Welfare Initiatives Signals Positive Outlook for Property Development

Prime Minister Dato’ Seri Anwar Ibrahim today outlined a series of key initiatives that offer a favourable outlook for the property development industry including UEM Sunrise. The government’s focus on economic recovery, enhanced labour welfare and cost-of-living relief creates an encouraging environment for the property sector.

Malaysia’s solid Q1 GDP growth (4.4%) and a stronger Ringgit, alongside wage hikes and cash relief (SARA RM100), are set to increase household disposable income. This is expected to drive demand for affordable and mid-range residential properties, aligning with UEM Sunrise’s current and future residential offerings.

The improved economic outlook, record investments, and currency strength are forecasted to lower development costs, particularly for imported materials, and enhance capital-raising conditions for UEM Sunrise.

With toll freezes and infrastructure development under RMK-13, suburban and mid-commuter developments, within 30-50 minutes from city centres, are expected to see accelerated uptake,benefiting UEM Sunrise’s projects in these locations.

While the outlook is positive, UEM Sunrise is cautious of cost pressures arising from the increased minimum wage (RM3,100) and vendor cost hikes, ensuring continued project profitability.