If there were key takeaways from Datuk Seri Reezal Merican Naina Merican’s speeches at two recent property awards ceremonies, they would be sustainability, liveability, affordable housing, and meeting consumers’ demands.
These keywords, mentioned during The Edge Malaysia’s Best Managed & Sustainable Property Awards 2022 on Aug 15, and the StarProperty Awards in Kuala Lumpur last night, highlighted the government’s commitment in helping the real estate market rebound and move forward following two years of uncertainty.
The Covid-19 pandemic disrupted work as lockdowns worldwide resulted in manpower shortages. Despite Malaysia transitioning from the pandemic to the endemic phase, the on-going Ukraine-Russia war and the sluggish global economy created a cascading effect of shortages in the global supply chain, causing a spike in the prices of raw materials.
Reezal Merican, last night, pointed out that in 2020, the property sector recorded more than 295,000 transactions worth RM119 billion. The following year, over 300,000 transactions were recorded, worth RM144.87 billion.
“A slight improvement, yes … but all of us in this hall still remember the bullish numbers we saw, pre-Covid-19,” he said.
“There are those who predict that the real estate market will continue to face a rocky road ahead, till the end of the year.
“However, rest assured, that it is not all doom and gloom,” he added.
Bank Negara Malaysia noted that the nation’s economy registered an 8.9 per cent growth in the second quarter of 2022. The central bank said growths in April and May were “particularly robust” and that the Malaysian economy is projected to expand further for the remainder of the year.
According to the Department of Statistics Malaysia, the unemployment rate for the month of June 2022 declined to 3.8 per cent – the lowest since February 2020, while the International Trade and Industry Ministry recently revealed that the nation received RM27.8 billion in foreign direct investments in the first quarter of 2022.
“These are all real signs of recovery. We are rebounding. And we will see more promising results in days, weeks, and months to come,” Reezal Merican added.
He stressed that developers played a huge role and contributed extensively to the nation’s progress. However, reputation is key in gaining consumers’ confidence.
Consumers today aspire not just for a roof over their heads. They also desire a certain lifestyle. And some developers have quickly embraced such demands, by injecting ‘character’ into their projects. Some have included areas dedicated to glamping, infused resort-like elements and architecture, adopted minimalist or industrial-based interior design cues, and eco-friendly facilities.
“Consumers bank on a developer’s reputation and reliability when it comes to buying a property – whether it’s a first home, or to expand their businesses. They demand to know if developers are able to meet their needs,” said Reezal Merican.
“Therefore, awards ceremonies serve to validate those nominated. This will help boost the confidence of consumers in terms of the quality of work and the track record of a particular developer.
“I believe through the cutting-edge work of those nominated, developers today are paying more attention to affordability, liveability, and sustainability.”
Reezal Merican also outlined the government’s commitment to ensuring every Malaysian owned a home.
“Providing adequate and affordable housing remains the government’s top priority. That is why my ministry introduced the Home Ownership Programme (HOPE) which aims to realise the ‘One Family, One Home’ vision.
“HOPE was conceived to reach the government’s goal of building 500,000 affordable homes within the 12th Malaysia Plan timeframe (2021-2025). This initiative will provide an opportunity for targeted groups, especially young Malaysians, to own liveable homes.
“HOPE will play its part and bring to life the vision of a Liveable Malaysia. This is where the government, property industry players, related stakeholders, and respected media organisations can come together and make sustainable and liveable Malaysia a reality.”
Reezal Merican’s ministry recently launched the Malaysia Liveability Index. This is to help cities in peninsular Malaysia benchmark their levels of wellbeing, quality of life, and liveability. He also reaffirmed Malaysia’s commitment to sustainable development and creating liveable homes at the World Urban Forum in Poland in June.
However, judging by Reezal Merican’s tone, despite all the policies and initiatives, the government can only do so much. The ball is now in the developers’ court to help Malaysia move forward.
“The government welcomes all constructive and meaningful conversations and actions to further uplift the wellbeing and quality of life of the rakyat,” Reezal Merican said last night.
“The contributions by each and every developer, inspire hope. The common key to unlock that hope and create opportunities – is committing to sustainable development with a high level of liveability.”
And on Aug 15, Reezal Merican highlighted the fight for sustainable and liveable homes was not just the job of ministers alone, and that it was something “that we can all work on together – to create a progressive nation.”
“By working together, we can create a brighter future for our Keluarga Malaysia.”
