Knight Frank Malaysia applauds the Prihatin Rakyat Economic Stimulus Package which puts cash into pockets of the deserving but feels more initiatives should be directed to sustain the economy and businesses. — Bernama photo
KUALA LUMPUR: Knight Frank Malaysia applauds the Prihatin Rakyat Economic Stimulus Package (PRIHATIN) which puts cash into pockets of the deserving but feels more initiatives should be directed to sustain the economy and businesses.
Managing director Sarkunan Subramaniam said, in addition to the automatic six-month moratorium on all bank loans, it may be timely to waive property taxes such as quit rents and assessment for the second half of 2020.
“Further stamp duty should be reduced and tax reliefs given to landlords who grant rent waivers to their tenants in order to help in the recovery process of businesses and the country’s property market,” he said in a statement.
He said in the property market segment, which is already facing its own challenges in terms of supply-demand imbalance will face mounting pressure.
Moving forward, there will be lower activity in leasing and investment in the commercial office while in the retail segment, rents will be under further pressure.
“As both buyers and sellers have become more vigilant amid the outbreak, a wait and see approach is prevalent as people will try to avoid showrooms and sales galleries during this critical period.
“In light of the current movement control order (MCO), there are also disruptions to the property transaction process, such as difficulties in conducting property viewings and conducting of title searches.
“In addition, with the potential of more job layoffs due to the challenging business environment, we foresee an increase in non-performing loans that will conclusively lead to more auctions in the market,” added Sarkunan.
In terms of industrial/logistics domestic context, distribution hubs in Klang Valley he said, are traditionally used by logistic players to serve nationwide deliveries. The current disruptions to the supply chain may give rise to potential decentralisation of logistics players into multiple smaller satellite distribution hubs in the northern and southern regions of Malaysia as well as in Sabah and Sarawak to support local distribution channels.
Similarly, on the global front, manufacturers may also start locating last-mile assembly plants in multiple countries/regions in order to mitigate any geographical risks that may disrupt supply chains. — Bernama