Ga­muda pro­poses levy

De­vel­op­ers to pay 2% of rev­enue to gov­ern­ment for B40 hous­ing fund

The Star Malaysia - StarBiz - - News -

PE­TAL­ING JAYA: Ga­muda Bhd has pro­posed a levy where de­vel­op­ers would have to pay 2% of their total rev­enue based on sales to the gov­ern­ment in­stead of hav­ing quotas im­posed on them to pro­vide a fund ben­e­fit­ting the be­low-40 (B40) pop­u­la­tion.

Ga­muda Bhd group manag­ing direc­tor Datuk Lin Yun Ling said, “In our view, house prices are not likely to come down.”

“This is why we are see­ing the huge un­sold stock in the prop­erty mar­ket. The hold­ing cost to com­ply with bu­mipu­tra re­quire­ments are get­ting heav­ier,” he said af­ter the com­pany’s AGM.

Deputy group manag­ing direc­tor Mo­hammed Rash­dan Mohd Yu­sof said, “We’re sug­gest­ing 2% of our of total rev­enue.

“When the ag­gre­gated value of the 2% for de­vel­op­ers across the field is given to the gov­ern­ment, the amount could be used to fund af­ford­able hous­ing for the B40 pop­u­la­tion in bet­ter suited lo­ca­tions.”

Rash­dan said lo­ca­tion is key for the devel­op­ment houses.

“It would be a waste to build hous­ing ar­eas on land where it would be dif­fi­cult for the ev­ery­day per­son to com­mute.”

“The 2% levy fund could then be used by the gov­ern­ment to de­cide on bet­ter land to house the B40, as that is ev­ery de­vel­op­ers’ goal.”

This sug­ges­tion has been brought to the at­ten­tion of the rel­e­vant au­thor­i­ties and, “though, it is too early to say, the re­sponse seems pos­i­tive,” Rash­dan added.

Ga­muda is also look­ing to­wards over­seas projects to sus­tain its growth due to the eas­ing lo­cal con­struc­tion sec­tor.

“We are look­ing at in­fra­struc­ture projects over­seas. For ex­am­ple, the state gov­ern­ments of Vic­to­ria and New South Wales in Aus­tralia are of af­ford­able go­ing to in­vest over A$100bil in rail­way and metro projects, mainly in Syd­ney and Mel­bourne, over the next 10 years,” Lin said.

He opines that it will pro­vide good op­por­tu­ni­ties for a lo­cal con­struc­tion player like Ga­muda be­cause it has a track record as turnkey con­trac­tor in the Mass Rail Tran­sit Sun­gai Bu­loh-Ser­dan­gPu­tra­jaya Line project.

The de­ci­sion to look in­ter­na­tion­ally was due to the 70% net profit con­tri­bu­tion from Ga­muda’s over­seas projects in the fi­nan­cial year 2018 (FY18).

“At the group level, we have achieved our tar­geted sales of RM3.6bil for FY19 that ended in July this year.

“Lo­cal projects con­trib­uted 30%. The mar­gin dif­fer­ence is ob­vi­ous,” Lin said.

The hold­ing cost to com­ply with bu­mipu­tra re­quire­ments are get­ting heav­ier.

By TENNIELLE CHUA [email protected]­ Datuk Lin Yun Ling

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