ECOFIRST HOPES THERE WON’T BE MORE TAXES
‘Additional levy can weigh heavily on current sluggish market’
ECOFIRST Consolidated Bhd is hopeful the government will not introduce any additional real estate taxes in the 2019 Budget. Group chief executive officer Datuk Tiong Kwing Hee said the additional tax could weigh heavily on the current sluggish property market.
“We believe continued focus on housing affordability is still needed and hope the government will allow provisions that will help Malaysians buy homes and secure housing loans,” he said.
These measures could potentially boost the real estate sector, Tiong added.
EcoFirst saw continued profitability in its first quarter, posting a net profit of RM4.7 million despite a softer property market.
For the quarter ended August 31, revenue was maintained at RM44.7 million.
In the previous corresponding quarter, it saw revenue of RM44.8 million and a restated net profit of RM5.7 million following the adoption of MFRS framework with effect from June 1.
Tiong said its flagship development, Liberty@Ampang Ukay Phase 1, was 95 per cent sold, contributing to the results.
“This demonstrates EcoFirst’s ability to tap underserved segments of the market, producing the right products to meet customers’ demand,” he added.
Tiong said Liberty is progressing well according to schedule and on track to meet its full completion in November 2019.
“With increased progress billings in tandem with completed stages of Liberty, our focus is to ensure fast turnaround on Liberty to keep our cash flow healthy,” he added.
Ecofirst is now working on Phase 2, which is being planned as a lower density development with three blocks proposed, comprising larger-sized units that would suit young growing families.
It is expected to be launched in the third quarter of next year.
Tiong expects Phase 2, which will offer good value to the target market, will build on the success of Liberty.
As the last large freehold land on the borders of Ulu Kelang, Tiong said EcoFirst’s 34.97ha Ampang Ukay project would be the main driver of growth over the medium to long term, with more than RM5 billion in estimated gross development value.