BUDGET 2021 truly addresses current issues, and the current state of the economy.
It covers “pain points” on local enterprises. It focuses on future businesses, with tax incentives and plans for improvements to businesses and infrastructure.
It is quite comprehensive. Even the tobacco industry is addressed.
Even though incentives for the real estate market are limited to a stamp duty exemption and rent-to-own scheme, among others, I think the impact will be felt via incentives given to the manufacturing and tech sectors, and investments in existing and future infrastructure.
The above will create what we call a “money flow”, where these investments – direct and indirect – will generate business and employment.
Businesses will need workspaces, and I see the incentives and investments positively impacting the manufacturing, industrial, logistics, distribution and real estate sectors, creating demand for office space among global companies that relocate to Malaysia. These firms will need space for their project teams.
I also feel that investments concerning the rural-urban divide will attract stable economic growth, and the focus will be on second-tier towns.
Location-wise, Batu Kawan, which is specifically mentioned in the Budget, will of course benefit, and we see Cyberjaya, Medini/Iskandar, and Technology Park Malaysia in Bukit Jalil as beneficiaries of the demand for tech/data centres and global hubs. – The Vibes, November 7, 2020
Previn Singhe is vice-chairman of CoreNet Global (Malaysian chapter) and CEO of Zerin Properties Sdn Bhd
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